US (United States) Code. Title 7. Chapter 35: Agricultural adjustment act of 1938

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

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-CITE-

7 USC CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

.

-HEAD-

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

-MISC1-

GENERAL PROVISIONS

Sec.

1281. Short title.

1282. Declaration of policy.

1282a. Emergency supply of agricultural products

(a) Establishment of prices to insure orderly,

adequate and steady supply of products.

(b) Adjustments in maximum price of products subject

to any price control or freeze order or

regulation to increase supply.

(c) ''Agricultural products'' defined.

(d) Implementation of policies to encourage full

production in periods of short supply at fair

and reasonable prices.

SUBCHAPTER I - ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS,

AND DISPOSITION OF SURPLUSES

1291. Adjustments in freight rates.

(a) Complaints by Secretary of Agriculture; notice of

hearings.

(b) Secretary as party to proceedings.

(c) Utilization of records, services, etc., of

Department of Agriculture.

(d) Cooperation with complaining farm associations.

1292. New uses and markets for commodities.

(a) Regional research laboratories.

(b) Acquisition of land for laboratories; donations.

(c) Cooperation with governmental agencies,

associations, etc.

(d) Appropriation for purposes of subsection (a).

(e) Repealed.

(f) Appropriation to Secretary of Commerce.

(g) Duty of Secretary.

1293. Transferred.

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

PART A - DEFINITIONS, LOANS, PARITY PAYMENTS, AND CONSUMER

SAFEGUARDS

1301. Definitions.

(a) General definitions.

(b) Definitions applicable to one or more

commodities.

(c) Use of Federal statistics.

(d) Exclusion of stocks of certain commodities.

1301a. References to parity prices, etc., in other laws after

January 1, 1950.

1301b, 1302. Repealed.

1303. Parity payments.

1304. Consumer safeguards.

1305. Transfer of acreage allotments or feed grain bases on public

lands upon request of State agencies.

1306. Projected yields; determination; base period.

1307. Limitation on payments under wheat, feed grains, and cotton

programs for 1974 through 1977 crops.

1308. Payment limitations.

(a) Definitions.

(b) Limitation on direct payments.

(c) Limitation on counter-cyclical payments.

(d) Limitation on marketing loan gains and loan

deficiency payments.

(e) Definition of person.

(f) Public schools.

(g) Time limits; reliance.

1308-1. Prevention of creation of entities to qualify as separate

persons; payments limited to active farmers.

(a) Prevention of creation of entities to qualify as

separate persons.

(b) Payments limited to active farmers.

1308-2. Schemes or devices.

1308-3. Foreign persons made ineligible for program benefits.

(a) In general.

(b) Corporations or other entities.

(c) Prospective application.

1308-3a. Adjusted gross income limitation.

(a) Definition of average adjusted gross income.

(b) Limitation.

(c) Certification.

(d) Commensurate reduction.

(e) Effective period.

1308-4. Education program.

(a) In general.

(b) Training.

(c) Administration.

(d) Commodity Credit Corporation.

1308-5. Treatment of multiyear program contract payments.

(a) In general.

(b) Limitation.

1308a. Cost reduction options.

(a) Authority of Secretary to take action.

(b) Reservation of Secretary's right to reopen or

change contracts if producer agrees.

(c) Purchase from other sources of commodities

covered by nonrecourse loans.

(d) Reduction in settlement price of nonrecourse

loans.

(e) Reopening of production control or loan programs

to allow for payment in kind.

(f) Other authorities of Secretary not affected.

1309. Normally planted acreage and target prices.

(a) Authorized planted acreage for 1982 through 1995

crops of wheat and feed grains as prerequisite

for loan, etc.; eligibility; determinations;

records.

(b) Established price payments.

(c) Marketing quotas in effect for 1987 through 1995

crops of wheat; reduction in normally planted

acreage as condition prerequisite for loan,

etc.

1310. American agriculture protection program.

(a) Determination of short supply; suspension of

commercial export sales; parity price.

(b) Duration of loan level.

(c) ''Commodity'' defined.

1310a. Normal supply of commodity for 1986 through 1995 crops.

PART B - MARKETING QUOTAS

SUBPART I - MARKETING QUOTAS - TOBACCO

1311. Legislative findings.

1312. National marketing quota.

(a) Proclamation of quota.

(b) Announcement of amount of quota.

(c) Referendum on quotas.

1313. Apportionment of national marketing quota.

(a) Apportionment among States.

(b) Allotment of quota among producing farms.

(c) Allotment to previous nonproducing farms and

small farms.

(d) Transfer of farm marketing quotas.

(e) Quota for 1938; minimum State allotments.

(f) Increase of 1938 quota.

(g) Conversion of national marketing quota into

national acreage allotment.

(h) Repealed.

(i) Increase of marketing quotas and acreage

allotments to meet demand.

(j) Tobacco acreage allotments for 1956, 1957, and

1958.

(j) Old farm tobacco acreage allotment.

1314. Penalties.

(a) Persons liable.

(b) Collection and deposit.

(c) Lien in favor of United States.

1314-1. Limitation on sale of tobacco floor sweepings.

(a) Penalty.

(b) Assessment; notice and opportunity for hearing;

determination.

(c) Relation to other law.

(d) Definitions.

1314a. Repealed.

1314b. Lease or sale of acreage allotments.

(a) Conditions for permission from Secretary; false

statements; exceptions.

(b) Term of years; terms and conditions.

(c) Filing with county committees; calculation of

normal yield for transfer.

(d) Allotments for other years unaffected; inclusion

of amount in transferors' plantings; referendum

voting rights.

(e) Limitation on amount of acreage allotment;

''tillable cropland'' defined.

(f) Regulations.

(g) Sale of allotment or quota by one active

Flue-cured tobacco producer to another;

definition.

(h) Sale or forfeiture of allotment or quota; notice

and opportunity for hearing; determination;

review.

(h) Transfer authority.

1314b-1. Mandatory sale of certain Flue-cured tobacco acreage

allotments and marketing quotas.

(a) Sale or forfeiture of acreage allotment or

marketing quota by institutional farmowners not

later than the later of December 1, 1984, or

December 1 of year after year in which farm

acquired.

(b) Forfeiture of acreage allotment or marketing

quota by farmowners on or after December 1,

1983.

(c) Notice and opportunity for hearing;

determination; review.

1314b-2. Mandatory sale of certain Burley tobacco acreage

allotments and marketing quotas.

(a) Sale or forfeiture of marketing quota by

institutional farmowners not later than the

later of December 1, 1984, or December 1 of

year after year in which farm acquired.

(b) Notice and opportunity for hearing;

determination; review.

(c) Sale or forfeiture of allotment or quota by

subsequent purchaser; notice and opportunity

for hearing; determination; review.

1314c. Acreage-poundage quotas.

(a) Definitions.

(b) National marketing quota, acreage allotment and

average yield goal for Flue-cured tobacco;

referendum.

(c) Tobacco having marketing quotas on acreage basis;

determination of Secretary of program on

acreage-poundage basis; announcement of

national marketing quota, acreage allotment and

average yield goal; referendum.

(d) Proclamation of national marketing quota for

three years following last year of three years

of acreage-poundage quotas; referendum; notice

of farm marketing quota to farm operators.

(e) Nonestablishment of farm acreage allotment or

farm yield for farms without tobacco production

for five years; reserve; ''new farms'' defined;

acreage allotment and farm yield basis of new

farms.

(f) Acreage reduction penalties applicable to

acreage-poundage programs; farm marketing quota

reductions; filing false reports; increases or

decreases in acreage allotments and farm yields

for other farms of owner displaced by agency

acquisition of farms; leases and sales of

acreage allotments and farm marketing quotas;

ratification of transfers of acreage

allotments.

(g) Marketing penalties.

(h) Burley tobacco; acreage-poundage basis: farm

acreage allotment and farm marketing quota,

adjustments for overmarketing or

undermarketing, reductions for violations;

acreage and quota additional to national

acreage allotment and national marketing quota;

acreage basis: acreage allotment, amendment of

clause (1) and proviso of section 1315.

(i) Consultations with industry representatives

respecting a program for each kind of tobacco,

studies of Flue-cured tobacco acreage-poundage

program, report and recommendations to

congressional committees, upon referendum

approval of Flue-cured tobacco acreage-poundage

program.

(j) Treatment of falsely identified tobacco for

purposes of establishing future farm marketing

quotas.

(k) Forfeiture of allotment and quota.

(l) Determination of Flue-cured tobacco planted

acreage.

1314d. Fire-cured, dark air-cured, and Virginia sun-cured tobacco.

(a) Sale or lease of acreage allotments and

acreage-poundage quotas.

(b) Conditions for transfers.

(c) Transfer of acreage history and marketing quota.

(d) Five-year restriction on new farm allotments or

quotas.

(e) Allotment adjustment.

(f) Lease term.

(g) Transfer of allotments.

(h) Future allotments; referendum voting eligibility.

(i) Land utilization agreements; payment adjustments.

(j) Rules and regulations.

1314e. Farm poundage quotas for certain kinds of tobacco.

(a) Proclamations and referenda regarding burley

tobacco.

(b) Proclamations and referenda regarding dark

air-cured tobacco and types 22 and 23

fire-cured tobacco.

(c) Amount of national marketing quota,

determination; national reserve, establishment.

(d) Farm yields; determination; limitation.

(e) Farm marketing quotas; preliminary quotas,

determination, limitation; succeeding years,

quota computation, limitations, increase and

reduction of quotas; new farms, limitation.

(f) Reductions for false information.

(g) Leases and transfers of farm quotas; limitations.

(h) Loss of quotas through underplanting.

(i) Marketing penalties.

(j) Regulations.

(k) Lease and transfer of burley tobacco quota

assigned.

(l) Lease and transfer of Burley tobacco quota.

(m) Computerized recordkeeping system for Burley

tobacco quota and acreage.

(n) Sale of Burley tobacco quota.

1314f. Nonquota tobacco subject to quota.

1314g. Submission of purchase intentions by cigarette

manufacturers.

(a) Quantity of intended purchases; aggregation not

to allow identification.

(b) Failure to submit; determination of quantity of

intended purchases by Secretary.

(c) Confidentiality of information; disclosure;

publication of identity of violators;

penalties.

(d) Exemption from public disclosure.

1314h. Purchase requirements; penalty.

(a) Statement of quantity purchased during marketing

year.

(b) Failure to purchase at least 90 percent of

quantity of intended purchases; reduction in

quantity of intended purchases.

(c) Penalty for failure to purchase specified amount.

(d) Transmission of penalty by Secretary; deposit in

No Net Cost Fund or Account.

(e) Confidentiality of information submitted;

disclosure; publication of identity of

violators; exemption from public disclosure;

penalties.

(f) ''Quota tobacco'' defined.

1314i. Domestic marketing assessment.

(a) Certification.

(b) Penalties.

(c) Domestic marketing assessment.

(d) Purchase of Burley tobacco.

(e) Purchase of Flue-cured tobacco.

(f) Crop losses due to disasters.

(g) Effective date.

1314j. Tobacco production and marketing information.

(a) In general.

(b) Limitations.

(c) Assistance.

(d) Records.

(e) Application.

1315. Burley tobacco acreage allotments.

1316. Transfer of allotments subsequent to 1965.

SUBPART II - ACREAGE ALLOTMENTS - CORN

1321. Legislative finding of effect on interstate and foreign

commerce and necessity of regulation.

1322 to 1325. Repealed.

1326. Adjustment of farm marketing quotas.

1327 to 1329. Omitted.

1329a. Discontinuance of acreage allotments on corn.

1330. Omitted.

SUBPART III - MARKETING QUOTAS - WHEAT

1331. Legislative finding of effect on interstate and foreign

commerce and necessity of regulation.

1332. National marketing quota.

(a) Proclamation; duration of program.

(b) Amount; minimum.

(c) National emergencies or material increase in

demand; investigation; increase or termination.

(d) Farm marketing quotas for wheat crops planted in

calendar years 1966-1970.

1333. National acreage allotment.

1334. Apportionment of national acreage allotment.

(a) Apportionment among States; special acreage

reserve.

(b) Apportionment among counties.

(c) Apportionment among farms; overplanted

allotments; reductions; notice.

(d) Repealed.

(e) Increase in acreage allotments and marketing

quotas for class II durum wheat.

(f) Voluntary surrender of acreage allotment.

(g) Plantings in excess of allotments or where no

allotment is established.

(h) Omitted.

(i) Increase in acreage allotments for any kind of

wheat in short supply; storage reduction and

land-use provisions inapplicable to such wheat.

(j) Increased durum wheat acreage allotments to

Tulelake area, California, for 1970 and

subsequent years; factors determinative; effect

of increased allotments on marketing

allocations and diversion payments.

(k) Transfer of farm wheat acreage allotments in case

of natural disasters.

1334a. Omitted.

1334a-1. Summer fallow farms; upper limit on required set aside

acreage for 1971 through 1977 wheat, feed grain, and cotton

crops.

1334b. Designation of States outside commercial wheat-producing

areas.

1335. Small-farm exemption; small-farm base acreage; election;

acreage allotment; land-use provisions; price support; wheat

marketing certificates.

1336. Referendum.

1337. Repealed.

1338. Transfer of quotas.

1339. Land use.

(a) Penalties: computation, lien, joint and several

liability and interest; exceptions: nonsurplus

supply crops, substantial impairment, and

nonproduction of wheat; diverted acreage:

amount, annual identity, and grazing; crops

available for marketing.

(b) Payment program for 1964 through 1970 crops;

terms and conditions; amount; additional

diverted acreage; conservation and

soil-conserving uses; adjustment; knowledge of

exceeding acreage allotment; acreage allotment

not exceeded by delivery to Secretary of farm

marketing excess or storage in accordance with

regulations to avoid or postpone payment of

penalty or by farms exempt from marketing

quota; new farms ineligible for payments;

sharing and medium of payments.

(c) Adjustment of payments.

(d) Advance payments.

(e) Diverted acreage used for production of certain

crops; rate of payment; limitation on rate.

(f) Additional terms and conditions.

(g) Regulations.

(h) Commodity Credit Corporation funds and

authorization of appropriations for payments

and administrative expenses.

1339a. Repealed.

1339b. Wheat diversion programs; credits in establishment of State,

county and farm acreage allotments for wheat.

1339c. Feed grains diversion programs for 1964 and subsequent

years; feed grain acreage considered wheat acreage and wheat

acreage considered feed grain acreage.

1339d. Hay production on set-aside or diverted acreage; storage;

emergency use; loans.

1340. Supplemental provisions relating to wheat marketing quotas;

marketing penalty for rice; crop loans on cotton, wheat, rice,

tobacco, and peanuts.

SUBPART IV - MARKETING QUOTAS - COTTON

1341. Legislative findings.

1342. National marketing quota; proclamation; amount; date of

proclamation.

1342a. National cotton production goal.

1343. Referendum.

1344. Apportionment of national acreage allotments.

(a) Basis.

(b) Apportionment among States for year 1953 and

subsequent years; adjustment; national acreage

reserve.

(c) Apportionment among States for years 1950 and

1951; computation and adjustment.

(d) Apportionment for year 1952; adjustment.

(e) Apportionment among counties; reservation of

acreage; additional acreage for establishing

minimum farm allotments.

(f) Apportionment among farms.

(g) Law and conditions governing establishment of

acreage allotments and yields.

(h) Repealed.

(i) Excess planting; old and new farm allotment.

(j) Availability of records for inspection.

(k) Minimum allotments to States.

(l) Administration of law governing war crops.

(m) Acreage allotments, 1954; increases;

apportionments; limitations; unallotted farm

acreage; reapportionment of surrendered

acreage; extra long staple cotton; reserve

acreage.

(n) Transfer of farm cotton acreage allotments in

case of natural disasters; eligibility for

allotment.

1344a. Exclusion of 1949 acreage in computation of future

allotments.

1344b. Sale, lease, or transfer of cotton acreage allotments.

(a) Authority for calendar years 1966 through 1970;

transfer periods.

(b) Requisite conditions for transfer of acreage

allotments.

(c) Extent of estate transferred.

(d) Period of ineligibility of land for new

allotment.

(e) Transfer of allotments established under minimum

allotment provisions.

(f) Rules and regulations.

(g) Adjustment upon transfer of land covered by

conservation reserve contract.

(h) Exchange of cotton acreage allotments for rice

acreage allotments.

(i) Applicability to cotton restricted to upland

cotton.

1345. Farm marketing quotas; farm marketing excess.

1346. Penalties.

1347. Repealed.

1348. Payments in kind to equalize cost of cotton to domestic and

foreign users; rules and regulations; termination date; persons

eligible; amount; terms and conditions; raw cotton in inventory.

1349. Export market acreage.

(a) Supplementary allotments for 1964 and 1965;

acreage limitation; apportionment among States

and farms; ''export market acreage'' on any

farm; farm acreage allotment for farms with

export acreage; additional allotment;

establishment of future allotments without

regard to export acreage; exclusion of

extra-long-staple cotton and farms receiving

additional price support for 1964 and 1965.

(b) Bond, other undertaking, and lieu payments for

exportation without subsidy and within

specified period; terms and conditions;

liquidated damages; farm acreage allotment upon

noncompliance with conditions; remissions to

CCC for defraying costs of encouraging export

sales of cotton.

1350. National base acreage allotment.

(a) Establishment.

(b) Apportionment to States.

(c) Apportionment to counties.

(d) Adjustment of apportionment bases for counties.

(e) Apportionment to farms.

(f) Surrender of farm base acreage allotments.

(g) Compliance with set-aside requirements.

(h) Transfer of farm base acreage allotments not

planted because of natural disaster or

conditions beyond control of producer.

1350a. Repealed.

SUBPART V - MARKETING QUOTAS - RICE

1351 to 1356. Omitted or Repealed.

SUBPART VI - MARKETING QUOTAS - PEANUTS

1357 to 1359a. Repealed.

SUBPART VII - FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR

1359aa. Definitions.

1359bb. Flexible marketing allotments for sugar.

(a) Sugar estimates.

(b) Sugar allotments.

(c) Prohibitions.

1359cc. Establishment of flexible marketing allotments.

(a) In general.

(b) Overall allotment quantity.

(c) Marketing allotment for sugar derived from sugar

beets and sugar derived from sugarcane.

(d) Filling cane sugar and beet sugar allotments.

(e) State cane sugar allotments.

(f) Filling cane sugar allotments.

(g) Adjustment of marketing allotments.

(h) Suspension of allotments.

1359dd. Allocation of marketing allotments.

(a) Allocation to processors.

(b) Hearing and notice.

1359ee. Reassignment of deficits.

(a) Estimates of deficits.

(b) Reassignment of deficits.

1359ff. Provisions applicable to producers.

(a) Processor assurances.

(b) Sugar beet processing facility closures.

(c) Proportionate shares of certain allotments.

1359gg. Special rules.

(a) Transfer of acreage base history.

(b) Preservation of acreage base history.

(c) Revisions of allocations and proportionate

shares.

(d) Transfers of mill allocations.

1359hh. Regulations; violations; publication of Secretary's

determinations; jurisdiction of the courts; United States

attorneys.

(a) Regulations.

(b) Violation.

(c) Publication in Federal Register.

(d) Jurisdiction of courts; United States attorneys.

(e) Nonexclusivity of remedies.

1359ii. Appeals.

(a) In general.

(b) Procedure.

(c) Special appeal process regarding beet sugar

allocations.

1359jj. Administration.

(a) Use of certain agencies.

(b) Use of Commodity Credit Corporation.

1359kk. Reallocating sugar quota import shortfalls.

(a) In general.

(b) Qualified supplying country defined.

PART C - ADMINISTRATIVE PROVISIONS

SUBPART I - PUBLICATION AND REVIEW OF QUOTAS

1361. Application of subpart.

1362. Publication of marketing quota; mailing of allotment notice.

1363. Review of quota; review committee.

1364. Compensation of review committee.

1365. Institution of proceeding for court review of committee

findings.

1366. Court review.

1367. Stay of proceedings and exclusive jurisdiction.

1368. Effect of increase on other quotas.

SUBPART II - ADJUSTMENT OF QUOTAS AND ENFORCEMENT

1371. General adjustment of quotas.

(a) Investigation and adjustment to maintain normal

supply.

(b) Adjustment because of emergency or export demand.

(c) Increase of farm quota on increase of national

quota.

1372. Payment, collection, and refund of penalties.

1373. Reports and records.

(a) Persons reporting.

(b) Proof of acreage yield.

(c) Data as confidential.

1374. Measurement of farms and report of plantings; remeasurement.

1375. Regulations.

1376. Court jurisdiction; duties of United States attorneys;

remedies and penalties as additional.

1377. Preservation of unused acreage allotments.

1378. Transfer of acreage allotments ensuing from agency

acquisition of farm lands.

(a) Allotment pool.

(b) Circumstances precluding application of

provisions.

(c) Time of displacement determining application of

provisions.

(d), (e) Omitted.

(f) Burley tobacco marketing allotment and acreage as

meaning marketing quota and poundage.

1379. Reconstitution of farms.

(a) Transfers from parent farm.

(b) Combination of tracts in contiguous counties.

(c) Burley tobacco poundage quotas.

PART D - WHEAT MARKETING ALLOCATION

1379a. Legislative findings.

1379b. Wheat marketing allocation; amount; national allocation

percentage; commercial and noncommercial wheat-producing areas.

1379c. Marketing certificates.

(a) Issuance; amount; reduction; sharing among

producers; domestic and export certificates.

(b) Producers eligible for certificates; storage

conditions.

(c) Face value.

(d) Statement or form of certificates and transfers.

(e) Failure of producer to comply with programs;

issuance of certificates.

1379d. Marketing restrictions.

(a) Transfers of certificates; purchases by Commodity

Credit Corporation.

(b) Processor and exporter acquisition of domestic

and export certificates; international trade,

expansion; refunds or credits for certificates;

exemptions from requirements.

(c) Undertaking to secure marketing of commodity

without certificate.

(d) ''Food products'' defined; exemption of flour

second clears.

1379e. Assistance in purchase and sale of marketing certificates;

regulations; administrative expenses; interest.

1379f. Conversion factors.

1379g. Authority to facilitate transition.

1379h. Applicability of provisions to designated persons; reports

and records; examinations by the Secretary.

1379i. Penalties.

(a) Forfeitures; amount; civil action.

(b) Misdemeanors; punishment.

(c) Forfeiture of right to receive certificates;

payment of face value.

(d) Felonies; punishment.

1379j. Regulations.

PART E - RICE CERTIFICATES

1380a to 1380p. Omitted.

PART F - MISCELLANEOUS PROVISIONS AND APPROPRIATIONS

SUBPART I - MISCELLANEOUS

1381 to 1382. Omitted.

1383. Insurance of cotton; reconcentration.

1383a. Written consent for reconcentration of cotton.

1384. Repealed.

1385. Finality of payments and loans; substitution of

beneficiaries.

1386. Exemption from laws prohibiting interest of Members of

Congress in contracts.

1387. Photographic reproductions and maps.

1388. Utilization of local agencies.

(a) Designation of local agencies and local

administrative areas.

(b) Payments to county committees for administrative

expenses.

(c) Travel expenses.

1389. Personnel.

1390. Separability.

SUBPART II - APPROPRIATIONS AND ADMINISTRATIVE EXPENSES

1391. Authorization of appropriations; loans from Commodity Credit

Corporation.

1392. Administrative expenses; posting names and compensation of

local employees.

1393. Allotment of appropriations.

SUBCHAPTER III - COTTON POOL PARTICIPATION TRUST CERTIFICATES

1401 to 1407. Omitted.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 511r, 1428, 1442, 1444a,

1446c, 1515, 1745, 2279, 7301, 7502, 7992 of this title.

-CITE-

7 USC GENERAL PROVISIONS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

GENERAL PROVISIONS

.

-HEAD-

GENERAL PROVISIONS

-CITE-

7 USC Sec. 1281 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

GENERAL PROVISIONS

-HEAD-

Sec. 1281. Short title

-STATUTE-

This chapter may be cited as the ''Agricultural Adjustment Act of

1938''.

-SOURCE-

(Feb. 16, 1938, ch. 30, Sec. 1, 52 Stat. 31.)

-MISC1-

EFFECTIVE DATE OF 1985 AMENDMENT

Pub. L. 99-198, title XVIII, Sec. 1801, Dec. 23, 1985, 99 Stat.

1660, provided that: ''Except as otherwise provided in this Act,

this Act and the amendments made by this Act (see Tables for

classification) shall become effective on the date of the enactment

of this Act (Dec. 23, 1985).''

SHORT TITLE OF 1999 AMENDMENT

Pub. L. 106-113, div. B, Sec. 1000(a)(3) (title IV, Sec. 401),

Nov. 29, 1999, 113 Stat. 1535, 1501A-210, provided that: ''This

title (amending section 1387 of this title) may be cited as the

'Mississippi National Forest Improvement Act of 1999'.''

SHORT TITLE OF 1990 AMENDMENT

Pub. L. 101-577, Sec. 1, Nov. 15, 1990, 104 Stat. 2856, provided:

''That this Act (amending sections 1314e and 1379 of this title)

may be cited as the 'Farm Poundage Quota Revisions Act of 1990'.''

SHORT TITLE OF 1986 AMENDMENT

Pub. L. 99-260, Sec. 1, Mar. 20, 1986, 100 Stat. 45, provided

that: ''This Act (enacting section 1433c-1 of this title, amending

sections 259, 1431, 1441-1, 1444-1, 1444e, 1445b-3, 1446, 1464,

1466, 1736-1, 1736s, and 1736v of this title, section 5312 of Title

5, Government Organization and Employees, and section 714b of Title

15, Commerce and Trade, enacting provisions set out as notes under

sections 608c, 1441-1, and 1446 of this title, and amending

provisions set out as a note under section 2025 of this title) may

be cited as the 'Food Security Improvements Act of 1986'.''

SHORT TITLE OF 1985 AMENDMENT

Pub. L. 99-198, Sec. 1, Dec. 23, 1985, 99 Stat. 1354, provided

that: ''This Act (see Tables for classification) may be cited as

the 'Food Security Act of 1985'.''

SHORT TITLE OF 1982 AMENDMENT

Pub. L. 97-218, Sec. 1, July 20, 1982, 96 Stat. 197, provided

that: ''This Act (enacting sections 1314-1, 1314b-1, 1314b-2,

1445-1, and 1445-2 of this title, amending sections 1301, 1314,

1314b, 1314c, 1314e, 1314f, 1316, 1373, and 1445 of this title, and

enacting provisions set out as notes under sections 1314, 1314b,

1445, 1445-1, and 1445-2 of this title, and under section 590h of

Title 16, Conservation) may be cited as the 'No Net Cost Tobacco

Program Act of 1982'.''

SHORT TITLE OF 1981 AMENDMENT

Pub. L. 97-98, Sec. 1, Dec. 22, 1981, 95 Stat. 1213, provided in

part that Pub. L. 97-98 (see Tables for classification) be cited as

the ''Agriculture and Food Act of 1981''.

SHORT TITLE OF 1977 AMENDMENT

Pub. L. 95-113, Sec. 1, Sept. 29, 1977, 91 Stat. 913, provided:

''That this Act (enacting sections 1308 to 1310, 1444c, 1445b to

1445f, 1715, 2027, 2266, 2267, 2281 to 2289, 2669, 2670, 3101 to

3103, 3121 to 3128, 3151 to 3154, 3171 to 3178, 3191 to 3201, 3221,

3222, 3241, 3251, 3252, 3261 to 3263, 3271, 3281, 3282, 3291, 3301

to 3304, 3311 to 3316, and 3401 to 3417 of this title and section

590q-3 of Title 16, Conservation, amending sections 75 to 79b, 84,

87 to 87b, 87e, 87f-1, 87f-2, 87h, 341 to 343, 361c, 390 to 390j,

427, 450i, 450j, 450l, 608e-1, 612c-3, 1011, 1307, 1352, 1358 to

1359, 1373, 1374, 1377, 1385, 1427 to 1428, 1431, 1441, 1444, 1446,

1446a, 1447, 1622, 1702, 1724, 1731 to 1733, 1736b, 1736c, 1781,

1782, 1923, 1929, 1929a, 1932, 1942, 2011 to 2026, 2201, 2204,

2652, 2654, 2662, 2663, and 2667 of this title, section 714b of

Title 15, Commerce and Trade, sections 590h, 590o, 1002, 1005,

1006a, and 1505 of Title 16, and section 6651 of Title 42, The

Public Health and Welfare, repealing section 390k of this title,

enacting provisions set out as notes under this section, sections

74, 75a, 612c, 1307, 1330, 1331, 1342, 1352, 1353, 1358, 1358a,

1359, 1373, 1377, 1379d, 1385, 1427, 1428, 1441, 1444, 1444b,

1444c, 1445a to 1445c, 1446, 1446d, 1447, 1691, 2011, 2012, 2266,

3101, and 3401 of this title, and section 714b of Title 15, and

amending provisions set out as notes under sections 74, 79, 135b,

608c, 612c, 1308, and 2011 of this title and under section 1382e of

Title 42) may be cited as the 'Food and Agriculture Act of 1977'.''

SHORT TITLE OF 1973 AMENDMENT

Pub. L. 93-86, Sec. 6, formerly Sec. 5, Aug. 10, 1973, 87 Stat.

250, as renumbered Pub. L. 95-113, title XIII, Sec. 1304(b)(1),

Sept. 29, 1977, 91 Stat. 980, provided that: ''This Act (enacting

sections 428b, 612c-2, 612c-3, 1282a, 1427a, 1434, 1441a, 1736e,

and 2026 of this title and sections 1501 to 1510 of Title 16,

Conservation, amending sections 450j, 450l, 608c, 1301, 1305, 1306,

1307, 1334a-1, 1342a, 1344b, 1350, 1374, 1379b, 1379c, 1379g, 1428,

1444, 1444b, 1445a, 1446, 1446a, 1703, 1736c, 1782, 1787, 1925,

1926, 1932, 2012, 2014, 2016, 2019, 2025, 2119, 2651, and 2654 of

this title, repealing section 1628 of this title, enacting

provisions set out as notes under sections 608c, 612c, 624, 1301,

1305, 1306, 1344b, 1350, 1379b, 1379c, 1379d, 1441, 1444, 1445a,

and 1446 of this title, section 142 of Title 13, Census, and

section 71 of Title 45, Railroads, and amending provisions set out

as notes under sections 135b, 608c, 1305, 1330 to 1336, 1338, 1339,

1342, 1343, 1344, 1344b, 1345, 1346, 1377 to 1379, 1379b, 1379c,

1385, 1427, 1428, 1441, 1445a, 1446, and 1446d of this title) may

be cited as the 'Agriculture and Consumer Protection Act of

1973'.''

SHORT TITLE OF 1970 AMENDMENT

Pub. L. 91-524, Sec. 1, Nov. 30, 1970, 84 Stat. 1358, provided:

''That this Act (as amended by section 1 of Pub. L. 93-86, enacting

sections 428b, 612c-2, 612c-3, 1282a, 1307, 1334a-1, 1339d, 1342a,

1350a, 1427a, 1434, 1441a, 1736e, 1787, 1930, and 2119 of this

title, sections 590q-2 and 1501 to 1510 of Title 16, Conservation,

and section 3122 of Title 42, The Public Health and Welfare,

amending sections 450j, 450l, 608c, 1301, 1305, 1306, 1344b, 1350,

1374, 1378, 1379, 1379b, 1379c, 1379d, 1379e, 1379g, 1385, 1427,

1428, 1444, 1444a, 1444b, 1445a, 1446, 1446a, 1703, 1704, 1736,

1736c, 1782, 1787, 1925, 1926, 1932, 2651, and 2654 of this title

and section 590p of Title 16, Conservation, and enacting provisions

set out as notes under sections 135b, 608c, 624, 1301, 1305, 1306,

1330, 1331, 1332, 1333, 1334, 1335, 1336, 1338, 1339, 1342, 1342a,

1343, 1344, 1344b, 1345, 1346, 1350, 1359, 1377, 1378, 1379, 1379b

to 1379j, 1385, 1427, 1428, 1441, 1444, 1444b, 1445, 1445a, 1446,

and 1446d of this title, section 142 of Title 13, Census, and

section 71 of Title 45 Railroads) may be cited as the 'Agricultural

Act of 1970'.''

SHORT TITLE OF 1964 AMENDMENT

Pub. L. 88-297, Sec. 1, Apr. 11, 1964, 78 Stat. 173, provided:

''That this Act (enacting sections 1348 to 1350 of this title,

amending sections 1301, 1334, 1336, 1339, 1344, 1376, 1377, 1379b,

1379c, 1379d, 1385, 1421, 1427, 1444, and 1445a of this title,

enacting provisions set out as notes under sections 1332 and 1379b

of this title, and amending provisions set out as a note under

section 1441 of this title) may be cited as the 'Agricultural Act

of 1964'.''

SHORT TITLE OF 1963 AMENDMENT

Pub. L. 88-26, Sec. 1, May 20, 1963, 77 Stat. 44, provided:

''That this Act (amending section 1339a of this title and section

590p of Title 16, Conservation, and provisions set out as note

under section 1441 of this title) may be cited as the 'Feed Grain

Act of 1963'.''

SHORT TITLE OF 1962 AMENDMENT

Section 1 of Pub. L. 87-703 provided: ''That this Act (enacting

sections 1334b, 1339 to 1339c, 1379a to 1379j, 1431d, 1445a and

1991 of this title and section 713a-13 of Title 15, Commerce and

Trade, amending sections 608c, 1010, 1011, 1301, 1331 to 1334,

1335, 1336, 1340, 1371, 1385, 1427, 1431, 1431b, 1444b, 1697, 1731

to 1733, 1735, 1736, 1923, 1926, 1929, and 1942 of this title and

sections 590g, 590h, 590p, 1004 and 1005 of Title 16, Conservation,

repealing section 1337 of this title, enacting provisions set out

as notes under this section, sections 1301, 1334, and 1441 of this

title, and section 590p of Title 16) may be cited as the 'Food and

Agriculture Act of 1962'.''

SHORT TITLE OF 1958 AMENDMENT

Pub. L. 85-835, Sec. 1, Aug. 28, 1958, 72 Stat. 988, provided

that: ''This Act (enacting sections 1344 note, 1378, 1431a, 1441

note, 1443, 1444, 1853 note, amending sections 1313, 1334, 1342,

1344, 1347, 1353, 1358, 1423, 1425, 1427, 1441, 1446, 1446a, 1782

to 1784, and repealing section 1301b of this title) may be cited as

the 'Agricultural Act of 1958' ''.

SHORT TITLE OF 1956 AMENDMENT

Act May 28, 1956, ch. 327, Sec. 1, 70 Stat. 188, provided: ''That

this Act (see Tables for classification) may be cited as the

'Agricultural Act of 1956'.''

SHORT TITLE OF 1948 AMENDMENT

Act July 3, 1948, ch. 827, 62 Stat. 1247, provided: ''That this

Act (see Tables for classification) may be cited as the

'Agricultural Act of 1948'.''

SEPARABILITY

Section 405 of Pub. L. 87-703 provided that: ''If any provision

of this Act (see Short Title of 1962 Amendment note above) is

declared unconstitutional, or the applicability thereof to any

person or circumstance is held invalid, the validity of the

remainder of this Act and the applicability thereof to other

persons and circumstances shall not be affected thereby.''

-CITE-

7 USC Sec. 1282 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

GENERAL PROVISIONS

-HEAD-

Sec. 1282. Declaration of policy

-STATUTE-

It is declared to be the policy of Congress to continue the Soil

Conservation and Domestic Allotment Act, as amended (16 U.S.C. 590a

et seq.), for the purpose of conserving national resources,

preventing the wasteful use of soil fertility, and of preserving,

maintaining, and rebuilding the farm and ranch land resources in

the national public interest; to accomplish these purposes through

the encouragement of soil-building and soil-conserving crops and

practices; to assist in the marketing of agricultural commodities

for domestic consumption and for export; and to regulate interstate

and foreign commerce in cotton, wheat, corn, tobacco, and rice to

the extent necessary to provide an orderly, adequate, and balanced

flow of such commodities in interstate and foreign commerce through

storage of reserve supplies, loans, marketing quotas, assisting

farmers to obtain insofar as practicable, parity prices for such

commodities and parity of income, and assisting consumers to obtain

an adequate and steady supply of such commodities at fair prices.

-SOURCE-

(Feb. 16, 1938, ch. 30, Sec. 2, 52 Stat. 31.)

-REFTEXT-

REFERENCES IN TEXT

The Soil Conservation and Domestic Allotment Act, as amended,

referred to in text, is act Apr. 27, 1935, ch. 85, 49 Stat. 163, as

amended, which is classified generally to chapter 3B (Sec. 590a et

seq.) of Title 16, Conservation. For complete classification of

this Act to the Code, see section 590q of Title 16 and Tables.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Agricultural Adjustment Administration transferred

to Secretary of Agriculture by 1946 Reorg. Plan No. 3, Sec. 501,

eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100. See note set out

under section 610 of this title.

Soil Conservation Service and Agricultural Adjustment

Administration consolidated with other agencies into Agricultural

Conservation and Adjustment Administration for duration of war, see

Ex. Ord. No. 9069, set out in note under section 601 of Appendix to

Title 50, War and National Defense.

Functions of Soil Conservation Service in Department of

Agriculture with respect to soil and moisture conservation

operations conducted on lands under jurisdiction of Department of

the Interior transferred to Department of the Interior, to be

administered under direction and supervision of Secretary of the

Interior through such agency or agencies in Department of the

Interior as Secretary shall designate, by 1940 Reorg. Plan No. IV,

Sec. 6, eff. June 30, 1940, set out in the Appendix to Title 5,

Government Organization and Employees. See, also, sections 13 to 15

of said plan for provisions relating to transfer of functions of

department heads, records, property, personnel, and funds.

-MISC5-

CONGRESSIONAL DECLARATION OF POLICY UNDER AGRICULTURAL ACT OF 1961

Section 2 of Pub. L. 87-128, Aug. 8, 1961, 75 Stat. 294, provided

that: ''In order more fully and effectively to improve, maintain,

and protect the prices and incomes of farmers, to enlarge rural

purchasing power, to achieve a better balance between supplies of

agricultural commodities and the requirements of consumers

therefor, to preserve and strengthen the structure of agriculture,

and to revitalize and stabilize the overall economy at reasonable

costs to the Government, it is hereby declared to be the policy of

Congress to -

''(a) afford farmers the opportunity to achieve parity of

income with other economic groups by providing them with the

means to develop and strengthen their bargaining power in the

Nation's economy;

''(b) encourage a commodity-by-commodity approach in the

solution of farm problems and provide the means for meeting

varied and changing conditions peculiar to each commodity;

''(c) expand foreign trade in agricultural commodities with

friendly nations, as defined in section 107 of Public Law 480,

83d Congress, as amended (7 U.S.C. 1707), and in no manner either

subsidize the export, sell, or make available any subsidized

agricultural commodity to any nations other than such friendly

nations and thus make full use of our agricultural abundance;

''(d) utilize more effectively our agricultural productive

capacity to improve the diets of the Nation's needy persons;

''(e) recognize the importance of the family farm as an

efficient unit of production and as an economic base for towns

and cities in rural areas and encourage, promote, and strengthen

this form of farm enterprise;

''(f) facilitate and improve credit services to farmers by

revising, expanding, and clarifying the laws relating to

agricultural credit;

''(g) assure consumers of a continuous, adequate, and stable

supply of food and fiber at fair and reasonable prices;

''(h) reduce the cost of farm programs, by preventing the

accumulation of surpluses; and

''(i) use surplus farm commodities on hand as fully as

practicable as an incentive to reduce production as may be

necessary to bring supplies on hand and firm demand in balance.''

CONGRESSIONAL DECLARATION OF POLICY FOR YEAR 1949

Section 1(d) of act July 3, 1948, ch. 827, title I, 62 Stat.

1248, provided that: ''It is hereby declared to be the policy of

the Congress that the lending and purchase operations of the

Department of Agriculture (other than those referred to in

subsections (a), (b), and (c) hereof (subsections (a) and (b) are

set out as notes under this section and subsection (c) is set out

as a note under section 713a-8 of Title 15, Commerce and Trade))

shall be carried out until January 1, 1950, so as to bring the

price and income of the producers of other agricultural commodities

not covered by subsections (a), (b), and (c) to a fair parity

relationship with the commodities included under subsections (a),

(b), and (c), to the extent that funds for such operations are

available after taking into account the operations with respect to

the commodities covered by subsections (a), (b), and (c). In

carrying out the provisions of this subsection the Secretary of

Agriculture shall have the authority to require compliance with

production goals and marketing regulations as a condition to

eligibility of producers for price support.''

STUDY OF PARITY INCOME POSITION OF FARMERS; REPORT TO CONGRESS BY

JUNE 30, 1966

Section 705 of Pub. L. 89-321, title VII, Nov. 3, 1965, 79 Stat.

1210, directed the Secretary of Agriculture to make a study of the

parity income position of farmers, and report the results of such

study to the Congress not later than June 30, 1966.

PRICE STABILIZATION DURING YEAR 1950

Section 1(a), (b) of act July 3, 1948, ch. 827, title I, 62 Stat.

1247, as amended June 10, 1949, ch. 191, 63 Stat. 169, authorized

the Secretary of Agriculture through any instrumentality or agency

within or under the direction of the Department of Agriculture, by

loans, purchases, or other operations to support prices received by

producers of cotton, wheat, corn, tobacco, rice, and peanuts

marketed before June 30, 1950 (September 30, 1950, in the case of

Maryland and the cigar-leaf types of tobacco), if producers had not

disapproved marketing quotas for such commodity for the marketing

year beginning in the calendar year in which the crop is harvested.

Section 2 of act July 3, 1948, ch. 827, title I, 62 Stat. 1248,

authorized the Secretary, from any funds available to the

Department of Agriculture or any agency operating under its

direction for price support operations or for the disposal of

agricultural commodities, to use such sums as may be necessary to

carry out the provisions of section 1 of the Act.

Section 6 of act July 3, 1948, ch. 827, title I, 62 Stat. 1250,

provided in part that sections 1 and 2 of the act were to become

effective Jan. 1, 1949.

-CITE-

7 USC Sec. 1282a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

GENERAL PROVISIONS

-HEAD-

Sec. 1282a. Emergency supply of agricultural products

-STATUTE-

(a) Establishment of prices to insure orderly, adequate and steady

supply of products

Notwithstanding any other provision of law, the Secretary of

Agriculture shall assist farmers, processors, and distributors in

obtaining such prices for agricultural products that an orderly,

adequate and steady supply of such products will exist for the

consumers of this nation.

(b) Adjustments in maximum price of products subject to any price

control or freeze order or regulation to increase supply

The President shall make appropriate adjustments in the maximum

price which may be charged under the provisions of Executive Order

11723 (dated June 13, 1973) or any subsequent Executive Order for

any agricultural products (at any point in the distribution chain)

as to which the Secretary of Agriculture certifies to the President

that the supply of the product will be reduced to unacceptably low

levels as a result of any price control or freeze order or

regulation and that alternative means for increasing the supply are

not available.

(c) ''Agricultural products'' defined

Under this section, the term ''agricultural products'' shall

include meat, poultry, vegetables, fruits and all other

agricultural commodities in raw or processed form, except forestry

products or fish or fishery products.

(d) Implementation of policies to encourage full production in

periods of short supply at fair and reasonable prices

The Secretary of Agriculture is directed to implement policies

under this Act which are designed to encourage American farmers to

produce to their full capabilities during periods of short supply

to assure American consumers with an adequate supply of food and

fiber at fair and reasonable prices.

-SOURCE-

(Pub. L. 91-524, title VIII, Sec. 815, as added Pub. L. 93-86, Sec.

1(27)(B), Aug. 10, 1973, 87 Stat. 240.)

-REFTEXT-

REFERENCES IN TEXT

Executive Order 11723 (dated June 13, 1973), referred to in

subsec. (b), was revoked by Ex. Ord. No. 11788, June 18, 1974, 39

F.R. 22113.

This Act, referred to in subsec. (d), is Pub. L. 91-524, Nov. 30,

1970, 84 Stat. 1358, known as the Agricultural Act of 1970. For

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

1970 Amendment note set out under section 1281 of this title and

Tables.

-COD-

CODIFICATION

Section was enacted as part of the Agricultural Act of 1970 as

added by the Agriculture and Consumer Protection Act of 1973, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-CITE-

7 USC SUBCHAPTER I - ADJUSTMENT IN FREIGHT RATES, NEW

USES AND MARKETS, AND DISPOSITION OF

SURPLUSES 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER I - ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS,

AND DISPOSITION OF SURPLUSES

.

-HEAD-

SUBCHAPTER I - ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS,

AND DISPOSITION OF SURPLUSES

-CITE-

7 USC Sec. 1291 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER I - ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS,

AND DISPOSITION OF SURPLUSES

-HEAD-

Sec. 1291. Adjustments in freight rates

-STATUTE-

(a) Complaints by Secretary of Agriculture; notice of hearings

The Secretary of Agriculture is authorized to make complaint to

the Surface Transportation Board with respect to rates, charges,

tariffs, and practices relating to the transportation of farm

products, and to prosecute the same before the Board. Before

hearing or disposing of any complaint (filed by any person other

than the Secretary) with respect to rates, charges, tariffs, and

practices relating to the transportation of farm products, the

Board shall cause the Secretary to be notified, and, upon

application by the Secretary, shall permit the Secretary to appear

and be heard.

(b) Secretary as party to proceedings

If such rate, charge, tariff, or practice complained of is one

affecting the public interest, upon application by the Secretary,

the Board shall make the Secretary a party to the proceeding. In

such case the Secretary shall have the rights of a party before the

Board and the rights of a party to invoke and pursue original and

appellate judicial proceedings involving the Board's

determination. The liability of the Secretary in any such case

shall extend only to liability for court costs.

(c) Utilization of records, services, etc., of Department of

Agriculture

For the purposes of this section, the Surface Transportation

Board is authorized to avail itself of the cooperation, records,

services, and facilities of the Department of Agriculture.

(d) Cooperation with complaining farm associations

The Secretary is authorized to cooperate with and assist

cooperative associations of farmers making complaint to the Surface

Transportation Board with respect to rates, charges, tariffs, and

practices relating to the transportation of farm products.

-SOURCE-

(Feb. 16, 1938, ch. 30, title II, Sec. 201, 52 Stat. 36; Pub. L.

104-88, title III, Sec. 311, Dec. 29, 1995, 109 Stat. 948.)

-MISC1-

AMENDMENTS

1995 - Pub. L. 104-88 substituted ''Surface Transportation

Board'' for ''Interstate Commerce Commission'' in subsecs. (a),

(c), and (d), ''Board'' for ''Commission'' wherever appearing in

subsecs. (a) and (b), and ''Board's'' for ''Commission's'' in

subsec. (b).

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2

of Pub. L. 104-88, set out as an Effective Date note under section

701 of Title 49, Transportation.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 40 section 113.

-CITE-

7 USC Sec. 1292 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER I - ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS,

AND DISPOSITION OF SURPLUSES

-HEAD-

Sec. 1292. New uses and markets for commodities

-STATUTE-

(a) Regional research laboratories

The Secretary is authorized and directed to establish, equip, and

maintain four regional research laboratories, one in each major

farm producing area, and, at such laboratories, to conduct

researches into and to develop new scientific, chemical, and

technical uses and new and extended markets and outlets for farm

commodities and products and byproducts thereof. Such research and

development shall be devoted primarily to those farm commodities in

which there are regular or seasonal surpluses, and their products

and byproducts.

(b) Acquisition of land for laboratories; donations

For the purposes of subsection (a) of this section, the Secretary

is authorized to acquire land and interests therein, and to accept

in the name of the United States donations of any property, real or

personal, to any laboratory established pursuant to this section,

and to utilize voluntary or uncompensated services at such

laboratories. Donations to any one of such laboratories shall not

be available for use by any other of such laboratories.

(c) Cooperation with governmental agencies, associations, etc.

In carrying out the purposes of subsection (a) of this section,

the Secretary is authorized and directed to cooperate with other

departments or agencies of the Federal Government, States, State

agricultural experiment stations, and other State agencies and

institutions, counties, municipalities, business or other

organizations, corporations, associations, universities, scientific

societies, and individuals, upon such terms and conditions as he

may prescribe.

(d) Appropriation for purposes of subsection (a)

To carry out the purposes of subsection (a) of this section, the

Secretary is authorized to utilize in each fiscal year, beginning

with the fiscal year beginning July 1, 1938, a sum not to exceed

$4,000,000 of the funds appropriated pursuant to section 1391 of

this title, or section 590o of title 16, for such fiscal year. The

Secretary shall allocate one-fourth of such sum annually to each of

the four laboratories established pursuant to this section.

(e) Repealed. Aug. 30, 1954, ch. 1076, Sec. 1(3), 68 Stat. 966

(f) Appropriation to Secretary of Commerce

There is allocated to the Secretary of Commerce for each fiscal

year, beginning with the fiscal year beginning July 1, 1938, out of

funds appropriated for such fiscal year pursuant to section 1391 of

this title, or section 590o of title 16 the sum of $1,000,000 to be

expended for the promotion of the sale of farm commodities and

products thereof in such manner as he shall direct. Of the sum

allocated under this subsection to the Secretary of Commerce for

the fiscal year beginning July 1, 1938, $100,000 shall be devoted

to making a survey and investigation of the cause or causes of the

reduction in exports of agricultural commodities from the United

States, in order to ascertain methods by which the sales in foreign

countries of basic agricultural commodities produced in the United

States may be increased.

(g) Duty of Secretary

It shall be the duty of the Secretary to use available funds to

stimulate and widen the use of all farm commodities in the United

States and to increase in every practical way the flow of such

commodities and the products thereof into the markets of the world.

-SOURCE-

(Feb. 16, 1938, ch. 30, title II, Sec. 202, 52 Stat. 37; Aug. 30,

1954, ch. 1076, Sec. 1(3), 68 Stat. 966.)

-MISC1-

AMENDMENTS

1954 - Subsec. (e). Act Aug. 30, 1954, repealed subsec. (e) which

required reports to Congress of the activities of, expenditures by,

and donations to, the laboratories established pursuant to subsec.

(a).

WHEAT RESEARCH AND PROMOTION ACT

Pub. L. 91-430, Sept. 26, 1970, 84 Stat. 885, provided:

''(Section 1. Short Title). That this Act shall be known as the

'Wheat Research and Promotion Act.'

''Sec. 2 (Contract authority; sale of export marketing

certificates and pro rata share of such certificates for financing

agreements; rules and regulations). The Secretary of Agriculture

is authorized to enter into agreements with organizations of wheat

growers, farm organizations, and such other organizations as he may

deem appropriate to carry out a program of research and promotion

designed to expand domestic and foreign markets and increase

utilization for United States wheat and to carry out any other such

program which he deems will benefit wheat producers in the United

States. Notwithstanding any other provision of law, the Secretary

shall use the total net proceeds from the sale of export marketing

certificates during the marketing year ending June 30, 1969, to

finance the cost of such agreements, except that he shall provide

for the issuance of a pro rata share of export marketing

certificates for such marketing year to any producer eligible

therefor under section 379c of the Agricultural Adjustment Act of

1938, as amended (section 1379c of this title), who applies for

such certificates not later than ninety days after the date of

enactment of this Act (Sept. 26, 1970). The Secretary is authorized

to prescribe such rules and regulations as may be necessary to

carry out the provisions of this Act.''

-CITE-

7 USC Sec. 1293 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER I - ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS,

AND DISPOSITION OF SURPLUSES

-HEAD-

Sec. 1293. Transferred

-COD-

CODIFICATION

Section, act Feb. 16, 1938, ch. 30, title II, Sec. 204, 52 Stat.

38, which provided for annual report of Federal Surplus Commodities

Corporation, was transferred to section 713c-1 of Title 15,

Commerce and Trade.

-CITE-

7 USC SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER

SAFEGUARDS, MARKETING QUOTAS, AND MARKETING

CERTIFICATES 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

.

-HEAD-

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 1428 of this title.

-CITE-

7 USC Part A - Definitions, Loans, Parity Payments, and

Consumer Safeguards 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

.

-HEAD-

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-CITE-

7 USC Sec. 1301 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1301. Definitions

-STATUTE-

(a) General definitions

For the purposes of this subchapter and the declaration of policy

-

(1)(A) The ''parity price'' for any agricultural commodity, as

of any date, shall be determined by multiplying the adjusted base

price of such commodity as of such date by the parity index as of

such date.

(B) The ''adjusted base price'' of any agricultural commodity,

as of any date, shall be (i) the average of the prices received

by farmers for such commodity, at such times as the Secretary may

select during each year of the ten-year period ending on the 31st

of December last before such date, or during each marketing

season beginning in such period if the Secretary determines use

of a calendar year basis to be impracticable, divided by (ii) the

ratio of the general level of prices received by farmers for

agricultural commodities during such period to the general level

of prices received by farmers for agricultural commodities during

the period January 1910 to December 1914, inclusive. As used in

this subparagraph, the term ''prices'' shall include wartime

subsidy payments made to producers under programs designed to

maintain maximum prices established under the Emergency Price

Control Act of 1942.

(C) The ''parity index'', as of any date, shall be the ratio of

(i) the general level of prices for articles and services that

farmers buy, wages paid hired farm labor, interest on farm

indebtedness secured by farm real estate, and taxes on farm real

estate, for the calendar month ending last before such date to

(ii) the general level of such prices, wages, rates, and taxes

during the period January 1910 to December 1914, inclusive.

(D) The prices and indices provided for herein, and the data

used in computing them, shall be determined by the Secretary,

whose determination shall be final.

(E) Notwithstanding the provisions of subparagraph (A) of this

paragraph, the transitional parity price for any agricultural

commodity, computed as provided in this subparagraph, shall be

used as the parity price for such commodity until such date after

January 1, 1950, as such transitional parity price may be lower

than the parity price, computed as provided in subparagraph (A)

of this paragraph, for such commodity. The transitional parity

price for any agricultural commodity as of any date shall be -

(i) its parity price determined in the manner used prior to

the effective date of the Agricultural Act of 1948, less

(ii) 5 per centum of the parity price so determined

multiplied by the number of full calendar years (not counting

1956 in the case of basic agricultural commodities) which, as

of such date, have elapsed after January 1, 1949, in the case

of non-basic agricultural commodities, and after January 1,

1955, in the case of the basic agricultural commodities.

(F) Notwithstanding the provisions of subparagraphs (A) and (E)

of this paragraph, if the parity price for any agricultural

commodity, computed as provided in subparagraphs (A) and (E) of

this paragraph, appears to be seriously out of line with the

parity prices of other agricultural commodities, the Secretary

may, and upon the request of a substantial number of interested

producers shall, hold public hearings to determine the proper

relationship between the parity price of such commodity and the

parity prices of other agricultural commodities. Within sixty

days after commencing such hearing the Secretary shall complete

such hearing, proclaim his findings as to whether the facts

require a revision of the method of computing the parity price of

such commodity, and put into effect any revision so found to be

required.

(G) Notwithstanding the foregoing provisions of this section,

the parity price for any basic agricultural commodity, as of any

date during the six-year period beginning January 1, 1950, shall

not be less than its parity price computed in the manner used

prior to October 31, 1949.

(2) ''Parity'', as applied to income, shall be that gross

income from agriculture which will provide the farm operator and

his family with a standard of living equivalent to those afforded

persons dependent upon other gainful occupation. ''Parity'' as

applied to income from any agricultural commodity for any year,

shall be that gross income which bears the same relationship to

parity income from agriculture for such year as the average gross

income from such commodity for the preceding ten calendar years

bears to the average gross income from agriculture for such ten

calendar years.

(3) The term ''interstate and foreign commerce'' means sale,

marketing, trade, and traffic between any State or Territory or

the District of Columbia or Puerto Rico, and any place outside

thereof; or between points within the same State or Territory or

within the District of Columbia or Puerto Rico, through any place

outside thereof; or within any Territory or within the District

of Columbia or Puerto Rico.

(4) The term ''affect interstate and foreign commerce'' means,

among other things, in such commerce, or to burden or obstruct

such commerce or the free and orderly flow thereof; or to create

or tend to create a surplus of any agricultural commodity which

burdens or obstructs such commerce or the free and orderly flow

thereof.

(5) The term ''United States'' means the several States and

Territories and the District of Columbia and Puerto Rico.

(6) The term ''State'' includes a Territory and the District of

Columbia and Puerto Rico.

(7) The term ''Secretary'' means the Secretary of Agriculture,

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

(8) The term ''person'' means an individual, partnership, firm,

joint-stock company, corporation, association, trust, estate, or

any agency of a State.

(9) The term ''corn'' means field corn.

(b) Definitions applicable to one or more commodities

For the purposes of this subchapter -

(1)(A) ''Actual production'' as applied to any acreage of corn

means the number of bushels of corn which the local committee

determines would be harvested as grain from such acreage if all

the corn on such acreage were so harvested. In case of a

disagreement between the farmer and the local committee as to the

actual production of the acreage of corn on the farm, or in case

the local committee determines that such actual production is

substantially below normal, the local committee, in accordance

with regulations of the Secretary, shall weigh representative

samples of ear corn taken from the acreage involved, make proper

deductions for moisture content, and determine the actual

production of such acreage on the basis of such samples.

(B) ''Actual production'' of any number of acres of cotton,

rice or peanuts on a farm means the actual average yield for the

farm times such number of acres.

(2) ''Bushel'' means in the case of ear corn that amount of ear

corn, including not to exceed 15 1/2 per centum of moisture

content, which weighs seventy pounds, and in the case of shelled

corn, means that amount of shelled corn including not to exceed

15 1/2 per centum of moisture content, which weighs fifty-six

pounds.

(3)(A) ''Carry-over'', in the case of corn, rice, and peanuts

for any marketing year shall be the quantity of the commodity on

hand in the United States at the beginning of such marketing

year, not including any quantity which was produced in the United

States during the calendar year then current.

(B) ''Carry-over'' of cotton for any marketing year shall be

the quantity of cotton on hand in the United States at the

beginning of such marketing year, not including any part of the

crop which was produced in the United States during the calendar

year then current.

(C) ''Carry-over'' of tobacco for any marketing year shall be

the quantity of such tobacco on hand in the United States at the

beginning of such marketing year (or on January 1 of such

marketing year in the case of Maryland tobacco), which was

produced in the United States prior to the beginning of the

calendar year in which such marketing year begins, except that in

the case of cigar-filler and cigar-binder tobacco the quantity of

type 46 on hand and theretofore produced in the United States

during such calendar year shall also be included.

(D) ''Carry-over'' of wheat, for any marketing year shall be

the quantity of wheat on hand in the United States at the

beginning of such marketing year, not including any wheat which

was produced in the United States during the calendar year then

current, and not including any wheat held by the Federal Crop

Insurance Corporation under the Federal Crop Insurance Act (7

U.S.C. 1501 et seq.).

(4)(A) ''Commercial corn-producing area'' shall include all

counties in which the average production of corn (excluding corn

used as silage) during the ten calendar years immediately

preceding the calendar year for which such area is determined,

after adjustment for abnormal weather conditions, is four hundred

and fifty bushels or more per farm and four bushels or more for

each acre of farm land in the county.

(B) Whenever prior to February 1 of any calendar year the

Secretary has reason to believe that any county which is not

included in the commercial corn-producing area determined

pursuant to the provisions of subparagraph (A) of this

subsection, but which borders upon one of the counties in such

area, or that any minor civil division in a county bordering on

such area, is producing (excluding corn used for silage) an

average of at least four hundred and fifty bushels of corn per

farm and an average of at least four bushels for each acre of

farm land in the county or in the minor civil division, as the

case may be, he shall cause immediate investigation to be made to

determine such fact. If, upon the basis of such investigation,

the Secretary finds that such county or minor civil division is

likely to produce corn in such average amounts during such

calendar year, he shall proclaim such determination and,

commencing with such calendar year, such county shall be included

in the commercial corn-producing area. In the case of a county

included in the commercial corn-producing area pursuant to this

subparagraph, whenever prior to February 1 of any calendar year

the Secretary has reason to believe that facts justifying the

inclusion of such county are not likely to exist in such calendar

year, he shall cause an immediate investigation to be made with

respect thereto. If, upon the basis of such investigation, the

Secretary finds that such facts are not likely to exist in such

calendar year, he shall proclaim such determination, and

commencing with such calendar year, such county shall be excluded

from the commercial corn-producing area.

(5) ''Farm consumption'' of corn means consumption by the

farmer's family, employees, or household, or by his work stock;

or consumption by poultry or livestock on his farm if such

poultry or livestock, or the products thereof, are consumed or to

be consumed by the farmer's family, employees, or household.

(6)(A) ''Market'', in the case of corn, cotton, rice, tobacco,

and wheat, means to dispose of, in raw or processed form, by

voluntary or involuntary sale, barter, or exchange, or by gift

inter vivos, and, in the case of corn and wheat, by feeding (in

any form) to poultry or livestock which, or the products of

which, are sold, bartered, or exchanged, or to be so disposed of,

but does not include disposing of any such commodities as premium

to the Federal Crop Insurance Corporation under the Federal Crop

Insurance Act (7 U.S.C. 1501 et seq.).

(B) ''Marketed'', ''marketing'', and ''for market'' shall have

corresponding meanings to the term ''market'' in the connection

in which they are used.

(C) ''Market'', in the case of peanuts, means to dispose of

peanuts, including farmers' stock peanuts, shelled peanuts,

cleaned peanuts, or peanuts in processed form, by voluntary or

involuntary sale, barter, or exchange, or by gift inter vivos.

(7) ''Marketing year'' means, in the case of the following

commodities, the period beginning on the first and ending with

the second date specified below:

Corn, September 1-August 31;

Cotton, August 1-July 31;

Rice, August 1-July 31;

Tobacco (flue-cured), July 1-June 30;

Tobacco (other than flue-cured), October 1-September 30;

Wheat, June 1-May 31.

(8)(A) ''National average yield'' as applied to cotton or wheat

shall be the national average yield per acre of the commodity

during the ten calendar years in the case of wheat, and during

the five calendar years in the case of cotton, preceding the year

in which such national average yield is used in any computation

authorized in this subchapter, adjusted for abnormal weather

conditions and, in the case of wheat, but not in the case of

cotton, for trends in yields.

(B) ''Projected national yield'' as applied to any crop of

wheat shall be determined on the basis of the national yield per

harvested acre of the commodity during each of the five calendar

years immediately preceding the year in which such projected

national yield is determined, adjusted for abnormal weather

conditions affecting such yield, for trends in yields and for any

significant changes in production practices.

(9) ''Normal production'' as applied to any number of acres of

corn or rice means the normal yield for the farm times such

number of acres. ''Normal production'' as applied to any number

of acres of cotton or wheat means the projected farm yield times

such number of acres.

(10)(A) ''Normal supply'' in the case of corn, rice, wheat, and

peanuts for any marketing year shall be (i) the estimated

domestic consumption of the commodity for the marketing year

ending immediately prior to the marketing year for which normal

supply is being determined, plus (ii) the estimated exports of

the commodity for the marketing year for which normal supply is

being determined, plus (iii) an allowance for carry-over. The

allowance for carry-over shall be the following percentage of the

sum of the consumption and exports used in computing normal

supply: 15 per centum in the case of corn; 10 per centum in the

case of rice; 20 per centum in the case of wheat; and 15 per

centum in the case of peanuts. In determining normal supply the

Secretary shall make such adjustments for current trends in

consumption and for unusual conditions as he may deem necessary.

(B) ''Normal supply'' in the case of tobacco shall be a normal

year's domestic consumption and exports, plus 175 per centum of a

normal year's domestic consumption and 65 per centum of a normal

year's exports as an allowance for a normal carry-over.

(C) The ''normal supply'' of cotton for any marketing year

shall be the estimated domestic consumption of cotton for the

marketing year for which such normal supply is being determined,

plus the estimated exports of cotton for such marketing year,

plus, 30 per centum of the sum of such consumption and exports as

an allowance for carry-over.

(11)(A) ''Normal year's domestic consumption'', in the case of

corn and wheat, shall be the yearly average quantity of the

commodity, wherever produced, that was cosumed (FOOTNOTE 1) in

the United States during the ten marketing years immediately

preceding the marketing year in which such consumption is

determined, adjusted for current trends in such consumption.

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

(B) ''Normal year's domestic consumption'', in the case of

cotton and tobacco, shall be the yearly average quantity of the

commodity produced in the United States that was consumed in the

United States during the ten marketing years immediately

preceding the marketing year in which such consumption is

determined, adjusted for current trends in such consumption.

(C) ''Normal year's domestic consumption'', in the case of

rice, shall be the yearly average quantity of rice produced in

the United States that was consumed in the United States during

the five marketing years immediately preceding the marketing year

in which such consumption is determined, adjusted for current

trends in such consumption.

(12) ''Normal year's exports'' in the case of corn, cotton,

rice, tobacco, and wheat shall be the yearly average quantity of

the commodity produced in the United States that was exported

from the United States during the ten marketing years (or, in the

case of rice, the five marketing years) immediately preceding the

marketing year in which such exports are determined, adjusted for

current trends in such exports.

(13)(A) Repealed. Pub. L. 87-703, title III, Sec. 320(1), Sept.

26, 1962, 76 Stat. 625.

(B) ''Normal yield'' for any county, in the case of peanuts,

shall be the average yield per acre of peanuts for the county

adjusted for abnormal weather conditions, during the five

calendar years immediately preceding the year in which such

normal yield is determined. For 1942, the normal yield for any

county, in the case of peanuts, shall be the average yield per

acre for peanuts for the county, adjusted for abnormal

conditions, during the years 1936-1940, inclusive, except that

for any county in which the years 1935-1939, inclusive, are

equally as representative, such period may be used in determining

the normal yields for counties in the State.

(C) In applying subparagraph (A) or (B) of this paragraph, if

for any such year the data are not available, or there is no

actual yield, an appraised yield for such year, determined in

accordance with regulations issued by the Secretary, shall be

used as the actual yield for such year. In applying such

subparagraphs, if, on account of drought, flood, insect pests,

plant disease, or other uncontrollable natural cause, the yield

in any year of such ten-year period or five-year period, as the

case may be, is less than 75 per centum of the average (computed

without regard to such year) such year shall be eliminated in

calculating the normal yield per acre.

(D) ''Normal yield'' for any county, in the case of rice and

wheat, shall be the average yield per acre of rice or wheat, as

the case may be, for the county during the five calendar years

immediately preceding the year for which such normal yield is

determined in the case of rice, or during the five years

immediately preceding the year in which such normal yield is

determined in the case of wheat, adjusted for abnormal weather

conditions and for trends in yields. If for any such year data

are not available, or there is no actual yield, an appraised

yield for such year, determined in accordance with regulations

issued by the Secretary, taking into consideration the yields

obtained in surrounding counties during such year and the yield

in years for which data are available, shall be used as the

actual yield for such year.

(E) ''Normal yield'' for any farm, in the case of rice and

wheat, shall be the average yield per acre of rice or wheat, as

the case may be, for the farm during the five calendar years

immediately preceding the year for which such normal yield is

determined in the case of rice, or during the five years

immediately preceding the year in which such normal yield is

determined in the case of wheat, adjusted for abnormal weather

conditions and for trends in yields. If for any such year the

data are not available or there is no actual yield, then the

normal yield for the farm shall be appraised in accordance with

regulations issued by the Secretary, taking into consideration

abnormal weather conditions, trends in yields, the normal yield

for the county, the yields obtained on adjacent farms during such

year and the yield in years for which data are available.

(F) In applying subparagraphs (D) and (E) of this paragraph, if

on account of drought, flood, insect pests, plant disease, or

other uncontrollable natural cause, the yield for any year of

such five-year period is less than 75 per centum of the average,

75 per centum of such average shall be substituted therefor in

calculating the normal yield per acre. If, on account of

abnormally favorable weather conditions, the yield for any year

of such five-year period is in excess of 125 per centum of the

average, 125 per centum of such average shall be substituted

therefor in calculating the normal yield per acre.

(G) ''Normal yield'' for any farm, in the case of corn or

peanuts, shall be the average yield per acre of corn or peanuts,

as the case may be, for the farm, adjusted for abnormal weather

conditions, during the five calendar years immediately preceding

the year in which such normal yield is determined. For 1942, the

normal yield for any farm, in the case of peanuts, shall be the

average yield per acre of peanuts for the farm, adjusted for

abnormal conditions, during the years 1936-1940, inclusive,

except that for any county in which the years 1935-1939,

inclusive, are equally as representative, such period may be used

in determining normal yields for farms in the county. If for any

such year the data are not available or there is no actual yield,

then the normal yield for the farm shall be appraised in

accordance with regulations of the Secretary, taking into

consideration abnormal weather conditions, the normal yield for

the county, and the yield in years for which data are available.

(H) ''Normal yield'' for any county, for any crop of cotton,

shall be the average yield per acre of cotton for the county,

adjusted for abnormal weather conditions and any significant

changes in production practices during the five calendar years

immediately preceding the year in which the national marketing

quota for such crop is proclaimed. If for any such year the data

are not available, or there is no actual yield, an appraised

yield for such year, determined in accordance with regulations

issued by the Secretary, shall be used as the actual yield for

such year.

(I) ''Normal yield'' for any farm, for any crop of cotton,

shall be the average yield per acre of cotton for the farm,

adjusted for abnormal weather conditions and any significant

changes in production practices during the three calendar years

immediately preceding the year in which such normal yield is

determined. If for any such year the data are not available, or

there is no actual yield, then the normal yield for the farm

shall be appraised in accordance with regulations of the

Secretary, taking into consideration abnormal weather conditions,

the normal yield for the county, changes in production practices,

and the yield in years for which data are available.

(J) ''Projected county yield'' for any crop of wheat shall be

determined on the basis of the yield per harvested acre of such

commodity on the county during each of the five calendar years

immediately preceding the year in which such projected county

yield is determined, adjusted for abnormal weather conditions

affecting such yield, for trends in yields and for any

significant changes in production practices.

(K) ''Projected farm yield'' for any crop of wheat shall be

determined on the basis of the yield per harvested acre of such

commodity in the farm during each of the three calendar years

immediately preceding the year in which such projected farm yield

is determined, adjusted for abnormal weather conditions affecting

such yield, for trends in yields and for any significant changes

in production practices, but in no event shall such projected

farm yield be less than the normal yield for such farm as

provided in subparagraph (E) of this paragraph.

(L) ''Projected national, State, and county yields'' for any

crop of cotton shall be determined on the basis of the yield per

harvested acre of such crop in the United States, the State and

the county, respectively, during each of the five calendar years

immediately preceding the year in which such projected yield for

the United States, the State, and the county, respectively, is

determined, adjusted for abnormal weather conditions affecting

such yield, for trends in yields, and for any significant changes

in production practices.

(M) ''Projected farm yield'' for any crop of cotton shall be

determined on the basis of the yield per harvested acre of such

crop on the farm during each of the three calendar years

immediately preceding the year in which such projected farm yield

is determined, adjusted for abnormal weather conditions affecting

such yield, for trends in yields, and for any significant changes

in production practices, but in no event shall such projected

farm yield be less than the normal yield for such farm as

provided in subparagraph (I) of this paragraph.

(14)(A) ''Reserve supply level'', in the case of corn, shall be

a normal year's domestic consumption and exports of corn plus 10

per centum of a normal year's domestic consumption and exports,

to insure a supply adequate to meet domestic consumption and

export needs in years of drought, flood, or other adverse

conditions, as well as in years of plenty.

(B) ''Reserve supply level'' of tobacco shall be the normal

supply plus 5 per centum thereof, to insure a supply adequate to

meet domestic consumption and export needs in years of drought,

flood, or other adverse conditions, as well as in years of

plenty.

(C) ''Reserve stock level'', in the case of Flue-cured tobacco,

shall be the greater of -

(i) 60,000,000 pounds (farm sales weight); or

(ii) 10 percent of the national marketing quota for

Flue-cured tobacco for the marketing year immediately preceding

the marketing year for which the level is being determined.

(D) ''Reserve stock level'', in the case of Burley tobacco,

shall be the greater of -

(i) 50,000,000 pounds (farm sales weight); or

(ii) 15 percent of the national marketing quota for Burley

tobacco for the marketing year immediately preceding the

marketing year for which the level is being determined.

(15) ''Tobacco'' means each one of the kinds of tobacco listed

below comprising the types specified as classified in Service and

Regulatory Announcement Numbered 118 of the Bureau of

Agricultural Economics of the Department.

Flue-cured tobacco, comprising types 11, 12, 13, and 14;

Fire-cured tobacco comprising types 21, 22, 23, and 24;

Dark air-cured tobacco, comprising types 35 and 36;

Virginia sun-cured tobacco, comprising type 37;

Burley tobacco, comprising type 31;

Maryland tobacco, comprising type 32;

Cigar-filler and cigar-binder tobacco, comprising types 42,

43, 44, 45, 46, 51, 52, 53, 54, and 55;

Cigar-filler tobacco, comprising type 41.

The provisions of this subchapter shall apply to each of such

kinds of tobacco severally: Provided, That any one or more of the

types comprising any such kind of tobacco shall be treated as a

''kind of tobacco'' for the purposes of this chapter and sections

590h and 590o of title 16 if the Secretary finds there is a

difference in supply and demand conditions as among such types of

tobacco which results in a difference in the adjustments needed

in the marketings thereof in order to maintain supplies in line

with demand: Provided further, That with respect to the 1958 and

subsequent crops, type 21 (Virginia) fire-cured tobacco shall be

treated as a ''kind of tobacco'' for the purposes of all of the

provisions of this subchapter, except that for the purposes of

section 1312(c) of this title, types 21, 22, and 23, fire-cured

tobacco shall be treated as one ''kind of tobacco'': And provided

further, That for purposes of section 1314e of this title, types

22 and 23, fire-cured tobacco shall be treated as one ''kind of

tobacco''.

(16)(A) ''Total supply'' of wheat, corn, rice, and peanuts for

any marketing year shall be the carry-over of the commodity for

such marketing year, plus the estimated production of the

commodity in the United States during the calendar year in which

such marketing year begins and the estimated imports of the

commodity into the United States during such marketing year.

(B) ''Total supply'' of tobacco for any marketing year shall be

the carry-over at the beginning of such marketing year (or on

January 1 of such marketing year in the case of Maryland tobacco)

plus the estimated production thereof in the United States during

the calendar year in which such marketing year begins, except

that the estimated production of type-46 tobacco during the

marketing year with respect to which the determination is being

made shall be used in lieu of the estimated production of such

type during the calendar year in which such marketing year begins

in determining the total supply of cigar-filler and cigar-binder

tobacco.

(C) ''Total supply'' of cotton for any marketing year shall be

the carry-over at the beginning of such marketing year, plus the

estimated production of cotton in the United States during the

calendar year in which such marketing year begins and the

estimated imports of cotton into the United States during such

marketing year.

(17) ''Domestic manufacturer of cigarettes'' means a person

that produces and sells more than 1 percent of the cigarettes

produced and sold in the United States.

(c) Use of Federal statistics

The latest available statistics of the Federal Government shall

be used by the Secretary in making the determinations required to

be made by the Secretary under this chapter.

(d) Exclusion of stocks of certain commodities

In making any determination under this chapter or under the

Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) with respect to

the carryover of any agricultural commodity, the Secretary shall

exclude from such determination the stocks of any commodity

acquired pursuant to, or under the authority of, the Strategic and

Critical Materials Stock Piling Act (60 Stat. 596) (50 U.S.C. 98 et

seq.).

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 301, 52 Stat. 38; Apr. 7,

1938, ch. 107, Sec. 2-4, 52 Stat. 202; June 13, 1940, ch. 360, Sec.

1, 54 Stat. 392; July 2, 1940, ch. 521, Sec. 3-5, 54 Stat. 727,

728; Nov. 22, 1940, ch. 914, Sec. 1, 3, 4, 54 Stat. 1209, 1210;

Nov. 25, 1940, ch. 917, 54 Stat. 1211; Apr. 3, 1941, ch. 39, Sec.

2, 3, 55 Stat. 91, 92; July 9, 1942, ch. 497, Sec. 1(4), (5), 56

Stat. 654; July 3, 1948, ch. 827, title II, Sec. 201(a), (b), (d),

(e), 62 Stat. 1250; Aug. 29, 1949, ch. 518, Sec. 2(a), 63 Stat.

675; Oct. 31, 1949, ch. 792, title IV, Sec. 409(a)-(d), 415(c)-(e),

418(b), (c), 63 Stat. 1056, 1057, 1958, 1062; July 8, 1952, ch.

587, 66 Stat. 442; July 17, 1952, ch. 933, Sec. 1, 66 Stat. 758;

July 14, 1953, ch. 194, Sec. 6, 67 Stat. 152; Aug. 28, 1954, ch.

1041, title III, Sec. 301, 302, 68 Stat. 902; May 28, 1956, ch.

327, title V, Sec. 502, title VI, Sec. 602, 70 Stat. 212, 213; Pub.

L. 85-92, Sec. 1, July 10, 1957, 71 Stat. 284; Pub. L. 87-703,

title III, Sec. 320, Sept. 27, 1962, 76 Stat. 625; Pub. L. 88-297,

title I, Sec. 106(5)-(7), Apr. 11, 1964, 78 Stat. 177; Pub. L.

89-321, title IV, Sec. 403, title V, Sec. 509, 511(a), Nov. 3,

1965, 79 Stat. 1197, 1204, 1205; Pub. L. 91-524, title IV, Sec.

405(b), Nov. 30, 1970, as added Pub. L. 93-86, Sec. 1(12), Aug. 10,

1973, 87 Stat. 229; Pub. L. 94-61, Sec. 1, July 25, 1975, 89 Stat.

302; Pub. L. 97-218, title III, Sec. 303(a), July 20, 1982, 96

Stat. 211; Pub. L. 99-198, title X, Sec. 1020, Dec. 23, 1985, 99

Stat. 1459; Pub. L. 99-272, title I, Sec. 1103(a), Apr. 7, 1986,

100 Stat. 85; Pub. L. 107-171, title I, Sec. 1610, May 13, 2002,

116 Stat. 218.)

-REFTEXT-

REFERENCES IN TEXT

Emergency Price Control Act of 1942, referred to in subsec.

(a)(1)(B), was act Jan. 30, 1942, ch. 26, 56 Stat. 23, as amended,

which was classified to section 901 et seq. of Title 50, Appendix,

War and National Defense, and which terminated June 30, 1947.

For effective date of the Agricultural Act of 1948, referred to

in subsec. (a)(1)(E)(i), see Effective Date of 1948 Amendment note

set out under section 624 of this title with reference to title I

of said act, and Effective Date of 1948 Amendment note set out

below with reference to titles II and III of said Act.

The Federal Crop Insurance Act, referred to in subsec. (b)(3)(D),

(6)(A), is title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, as

amended, which is classified generally to chapter 36 (Sec. 1501 et

seq.) of this title. For complete classification of this Act to

the Code, see section 1501 of this title and Tables.

The Agricultural Act of 1949, referred to in subsec. (d), 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. For complete classification of this Act to the Code, see

Short Title note set out under section 1421 of this title and

Tables.

The Strategic and Critical Materials Stock Piling Act, referred

to in subsec. (d), is act June 7, 1939, ch. 190, as revised

generally by Pub. L. 96-41, Sec. 2, July 30, 1979, 93 Stat. 319,

which is classified generally to subchapter III (Sec. 98 et seq.)

of chapter 5 of Title 50, War and National Defense. For complete

classification of this Act to the Code, see section 98 of Title 50

and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (b)(14)(C). Pub. L. 107-171 substituted

''60,000,000'' for ''100,000,000'' in cl. (i) and ''10 percent''

for ''15 percent'' in cl. (ii).

1986 - Subsec. (b)(14)(C), (D). Pub. L. 99-272, Sec. 1103(a)(1),

added subpars. (C) and (D).

Subsec. (b)(17). Pub. L. 99-272, Sec. 1103(a)(2), added par.

(17).

1985 - Subsec. (b)(7). Pub. L. 99-198 substituted ''Corn,

September 1-August 31'' for ''Corn, October 1-September 30''.

1982 - Subsec. (b)(15). Pub. L. 97-218 inserted proviso that for

purposes of section 1314e of this title, types 22 and 23,

fire-cured tobacco shall be treated as one ''kind of tobacco''.

1975 - Subsec. (b)(7). Pub. L. 94-61 substituted ''Wheat, June

1-May 31'' for ''Wheat, July 1-June 30''.

1973 - Subsec. (b)(13)(K). Pub. L, 91-524, Sec. 405(b), as added

by Pub. L. 93-86, temporarily inserted ''(five calendar years in

the case of wheat)'' after ''three calendar years''. See Effective

and Termination Dates of 1973 Amendment note below.

1965 - Subsec. (b)(8). Pub. L. 89-321, Sec. 509(1), designated

existing provisions as subpar. (A) and added subpar. (B).

Subsec. (b)(9). Pub. L. 89-321, Sec. 511(a), struck out

''cotton'' and ''wheat'' in first sentence, and inserted definition

of normal production when applied to any number of acres of cotton

or wheat.

Subsec. (b)(13). Pub. L. 89-321, Sec. 403, 509(2), added subpars.

(J), (K), (L), and (M).

1964 - Subsec. (b)(13). Pub. L. 88-297, Sec. 106(5)-(7), struck

out ''cotton or'' before ''peanuts'' in subpar. (B) in two places,

struck out '', cotton,'' after ''corn'' in subpar. (G) in two

places, and added subpars. (H) and (I), respectively.

1962 - Subsec. (b)(13). Pub. L. 87-703 struck out par. (A) which

defined ''normal yield'' for any county in the case of corn or

wheat; inserted in pars. (D) and (E) ''and wheat'' after ''in the

case of rice'', ''or wheat, as the case may be,'' after ''per acre

of rice'', and ''in the case of rice, or during the five years

immediately preceding the year in which such normal yield is

determined in the case of wheat'' after ''determined''; and struck

out from par. (G) ''wheat,'' after ''corn,'' in two places, ''and,

in the case of wheat, but not in the case of corn, cotton, or

peanuts, for trends in yields'' after ''abnormal weather

conditions'', ''ten calendar years in the case of wheat, and''

before ''five calendar years'' and ''in the case of corn, cotton,

or peanuts'' after ''five calendar years''.

1957 - Subsec. (b)(15). Pub. L. 85-92 inserted proviso relating

to treatment of type 21 fire-cured tobacco as a ''kind of

tobacco''.

1956 - Subsec. (a)(1)(E). Act May 28, 1956, Sec. 602, inserted

''(not counting 1956 in the case of basic agricultural

commodities)'' after ''full calendar years''.

Subsec. (b)(13). Act May 28, 1956, Sec. 502, limited

determination of normal yield provided for in subpar. (D) only to

counties and authorized adjustments for abnormal weather conditions

and for trends in yields, added subpars. (E) and (F), and

redesignated subpar. (E) as (G).

1954 - Subsec. (a)(1)(E). Act Aug. 28, 1954, Sec. 301, changed

definition of ''transitional parity price'' as applied to basic

agricultural commodities so as to make it ''old parity'' less 5 per

centum for each full year elapsed since Jan. 1, 1955, instead of

Jan. 1, 1949.

Subsec. (b). Act Aug. 28, 1954, Sec. 302, increased carryover

allowance from 10 per centum to 15 per centum in case of corn and

from 15 per centum to 20 per centum in case of wheat in subpar.

(10)(A), and provided for computing county and farm ''normal

yields'' on the basis of 5-year yields instead of 10-year yields in

case of corn in subpars. (13)(A) and (13)(E).

1953 - Subsec. (d). Act July 14, 1953, added subsec. (d).

1952 - Subsec. (a)(1)(G). Act July 17, 1952, extended dual parity

provisions for two years.

Subsec. (b)(3)(C), (16)(B). Act July 8, 1952, provided for

computation of carry-over as of Jan. 1st, following the beginning

of the marketing year instead of Oct. 1st the beginning of the

marketing year.

1949 - Subsec. (a)(1)(B). Act Oct. 31, 1949, Sec. 409(a),

inserted last sentence.

Subsec. (a)(1)(C). Act Oct. 31, 1949, Sec. 409(b), inserted '',

wages paid hired farm labor'' after ''buy'' and '', wages'' after

''such prices''.

Subsec. (a)(1)(G). Act Oct. 31, 1949, Sec. 409(c), added subpar.

(G).

Subsec. (b)(1)(B). Act Oct. 31, 1949, Sec. 418(b), included the

actual production of rice.

Subsec. (b)(3)(B). Act Oct. 31, 1949, Sec. 415(e), repealed

amendatory provisions of act July 3, 1948, ch. 827, title II, Sec.

201(c), 62 Stat. 1250.

Act Aug. 29, 1949, Sec. 2(a)(1), changed definition of

''carry-over'' of cotton by excluding United States cotton on hand

outside the United States.

Subsec. (b)(9). Act Oct. 31, 1949, Sec. 418(c), included normal

production of rice.

Subsec. (b)(10(A). Act Oct. 31, 1949, Sec. 409(d), increased from

7 per centum to 10 per centum the carryover allowance for corn.

Act Aug. 29, 1949, Sec. 2(a)(2), made provision inapplicable to

cotton.

Subsec. (b)(10)(C). Act Aug. 29, 1949, Sec. 2(a)(2), added

subpar. (C) which was also reenacted by act Oct. 31, 1949, Sec.

415(c).

Subsec. (b)(16)(A). Act Oct. 31, 1949, Sec. 415(d), struck out

''cotton,'' after ''corn,''.

Act Aug. 29, 1949, Sec. 2(a)(3), made provision inapplicable to

cotton.

Subsec. (b)(16)(C). Act Aug. 29, 1949, Sec. 2(a)(3), added

subpar. (C) which was also reenacted by act Oct. 31, 1949, Sec.

415(d).

1948 - Subsec. (a). Act July 3, 1948, Sec. 201(a), struck out

paragraphs (1) and (2) and inserted new paragraphs (1) and (2) to

change the method of computing parity prices to give recognition to

changes in relationships among the prices of agricultural

commodities themselves which have occurred since the base period

1910 to 1914, and redefined ''parity''.

Subsec. (b)(3)(A). Act July 3, 1948, Sec. 201(b), redefined

''carry-over'' in the case of corn, rice, and peanuts.

Subsec. (b)(3)(B). Act July 3, 1948, Sec. 201(c), redefined

''carry-over'' in the case of cotton.

Subsec. (b)(10). Act July 3, 1948, Sec. 201(d), redefined

''normal supply''.

Subsec. (b)(16). Act July 3, 1948, Sec. 201(e), redefined ''total

supply''.

1942 - Subsec. (b)(13)(B). Act July 9, 1942, Sec. 1(4), inserted

''or peanuts'' after ''cotton'' wherever appearing, and added a new

sentence reading ''For 1942, the normal yield for any county, in

the case of peanuts, shall be the average yield per acre for

peanuts for the county, adjusted for abnormal conditions, during

the years 1936-1940, inclusive, except that for any county in which

the years 1935-1939, inclusive, are equally as representative, such

period may be used in determining the normal yields for counties in

the State''.

Subsec. (b)(13)(E). Act July 9, 1942, Sec. 1(5), struck out

''or'' after ''wheat'' and before ''cotton'' wherever appearing,

inserted ''or peanuts'' after ''cotton'' wherever appearing, and

inserted after first sentence ''For 1942, the normal yield for any

farm, in the case of peanuts, shall be the average yield per acre

of peanuts for the farm, adjusted for abnormal conditions, during

the years 1936-1940, inclusive, except that for any county in which

the years 1935-1939, inclusive, are equally as representative, such

period may be used in determining normal yields for farms in the

county''.

1941 - Subsec. (b)(1)(B). Act April 3, 1941, Sec. 2, inserted

''or peanuts'' after ''cotton''.

Subsec. (b)(6)(C). Act Apr. 3, 1941, Sec. 3, added subpar. (C).

1940 - Subsec. (a)(1). Act Nov. 22, 1940, Sec. 3, inserted ''and,

in the case of Burley and flue-cured tobacco, shall be the period

August 1934 to July 1939; except that the August 1919-July 1929

base period shall be used in allocating any funds appropriated

prior to September 1, 1940'' after ''July, 1929'' in last sentence.

Subsec. (b)(3)(C). Act June 13, 1940, inserted exception.

Former subsec. (b)(6)(C), (D) were omitted in amendment to

subsec. (b)(6) by act July 2, 1940.

Subsec. (b)(13)(A). Act July 2, 1940, Sec. 4, among other changes

inserted ''or wheat'' after ''corn'' wherever appearing and

substituted ''county'' for ''farm'' wherever appearing.

Subsec. (b)(13)(B). Act July 2, 1940, Sec. 5, among other

changes, struck out ''or wheat'' before ''cotton'' and ''and, in

the case of wheat but not in the case of cotton, for trends in

yields, during the ten calendar years in the case of wheat, and''

after ''weather conditions''.

Subsec. (b)(13)(E). Act Nov. 25, 1940, in first sentence

substituted ''in which such normal yield is determined'' for ''with

respect to such normal yield is used in any computation authorized

under this title''.

Subsec. (b)(15). Act Nov. 22, 1940, Sec. 1, 4, among other

changes substituted ''Fire-cured tobacco comprising types 21, 22,

23, and 24; Dark air-cured tobacco comprising types 35 and 36'' for

''Fire-cured and dark air cured tobacco comprising types 21, 22,

23, 24, 35, 36, and 37'' and inserted proviso at end of last

sentence.

1938 - Subsec. (b)(13). Act Apr. 7, 1938, substituted ''county''

for ''farm'' in subpars. (A) and (B) and added subpar. (E).

EFFECTIVE DATE OF 1975 AMENDMENT

Section 2 of Pub. L. 94-61 provided that: ''The amendment made by

the first section of this Act (amending this section) shall become

effective June 1, 1975''.

EFFECTIVE AND TERMINATION DATES OF 1973 AMENDMENT

Section 405(b) of Pub. L. 91-524, as added by section 1(12) of

Pub. L. 93-86, provided that the amendment made by that section is

effective with respect to 1974 through 1977 crops.

EFFECTIVE DATE OF 1965 AMENDMENT

Section 511(a) of Pub. L. 89-321 provided that the amendment made

by that section is effective beginning with the crop planted for

harvest in 1966.

EFFECTIVE DATE OF 1962 AMENDMENT

Section 323 of Pub. L. 87-703 provided that: ''The amendments to

the Agricultural Adjustment Act of 1938, as amended, and to Public

Law 74, Seventy-seventh Congress, as amended, made by sections 310

through 322 of this Act (enacting sections 1334b and 1339 of this

title, amending this section and sections 1331 to 1336, 1340, 1371

and 1385 of this title, and repealing section 1337 of this title)

shall be in effect only with respect to programs applicable to the

crops planted for harvest in the calendar year 1964 or any

subsequent year and the marketing years beginning in the calendar

year 1964, or any subsequent year''.

EFFECTIVE DATE OF 1949 AMENDMENT

Section 415(a), (b) of act Oct. 31, 1949, provided that:

''(a) Except as modified by this Act or by Public Law 272 (see

Tables for classification), Eighty-first Congress, sections 201(b),

201(d), 201(e), 203, 207(a), and 208 of the Agricultural Act of

1948 (amending this section and sections 1312, 1322, and 1328 of

this title) shall be effective for the purpose of taking any action

with respect to the 1950 and subsequent crops upon the enactment of

this Act (Oct. 31, 1949). If the time within which any such action

is required to be taken shall have elapsed prior to the enactment

of this Act, such action shall be taken within thirty days after

the enactment of the Act.

''(b) No provision of the Agricultural Act of 1948 shall be

deemed to supersede any provision of Public Law 272, Eighty-first

Congress.''

EFFECTIVE DATE OF 1948 AMENDMENT

Section 303 of act July 3, 1948, provided that: ''Titles II and

III of this Act (amending this section and sections 602, 608c,

612c, 672, 1301a, 1302, 1312, 1322, 1328, 1333, 1335, 1336, 1343,

1345, 1355, and 1385 of this title and repealing sections 608e and

1322a of this title) shall take effect on January 1, 1950.''

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers, agencies, and employees of Department

of Agriculture transferred, with certain exceptions, to Secretary

of Agriculture by 1953 Reorg. Plan No. 2, Sec. 1, eff. June 4,

1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section

2201 of this title.

Administration of program of Federal Crop Insurance Corporation

transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3,

Sec. 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100, set out

in the Appendix to Title 5, Government Organization and Employees.

Functions of Bureau of Agricultural Economics transferred to

other units of Department of Agriculture under Secretary's

memorandum 1320, supp. 4, of Nov. 2, 1953.

-MISC5-

RULEMAKING PROCEDURES

Section 1108(c) of Pub. L. 99-272 provided that: ''The Secretary

of Agriculture shall implement sections 1102 through 1109, and the

amendments made by such sections (enacting sections 1314g, 1314h,

and 1445-3 of this title, amending this section and sections 1312,

1314c, 1314e, 1372, 1445, 1445-1, and 1445-2 of this title, and

enacting provisions set out as notes under sections 1314c, 1314e,

1314g, 1314h, 1372, 1445, 1445-1, and 1445-2 of this title),

without regard to the provisions requiring notice and other

procedures for public participation in rulemaking contained in

section 553 of title 5, United States Code, or in any directive of

the Secretary.''

STUDY OF METHODS OF IMPROVING PARITY FORMULA

Section 602 of act May 28, 1956, required the Secretary to make a

thorough study of the possible methods of improving the parity

formula and report thereon, with specific recommendations,

including drafts of necessary legislation to carry out such

recommendations, to Congress not later than Jan. 31, 1957.

TOBACCO DEFINITION UNAFFECTED BY ACREAGE-POUNDAGE MARKETING QUOTAS

AND PRICE SUPPORT PROVISIONS

Authority or responsibility of Secretary of Agriculture under

subsec. (b)(15) of this section with respect to treatment of

different types of tobacco as different kinds of tobacco unaffected

by acreage-poundage quotas and price support provisions, see note

set out under section 1314c of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 602, 1111, 1301a, 1340,

1359aa, 1445, 1445-2 of this title; title 43 section 620c.

-CITE-

7 USC Sec. 1301a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1301a. References to parity prices, etc., in other laws after

January 1, 1950

-STATUTE-

All references in other laws to -

(1) parity,

(2) parity prices,

(3) prices comparable to parity prices, or

(4) prices to be determined in the same manner as provided by

this chapter prior to January 1, 1950 for the determination of

parity prices,

with respect to prices for agricultural commodities and products

thereof, shall after January 1, 1950 be deemed to refer to parity

prices as determined in accordance with the provisions of section

1301(a)(1) of this title.

-SOURCE-

(July 3, 1948, ch. 827, title III, Sec. 302(f), 62 Stat. 1258.)

-COD-

CODIFICATION

Section was enacted as part of the Agricultural Act of 1948, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

EFFECTIVE DATE

Section effective Jan. 1, 1950, see section 303 of act July 3,

1948, set out as an Effective Date of 1948 Amendment note under

section 1301 of this title.

-CITE-

7 USC Sec. 1301b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1301b. Repealed. Pub. I. 85-835, title I, Sec. 108, Aug. 28,

1958, 72 Stat. 993

-MISC1-

Section, act Aug. 29, 1949, ch. 518, Sec. 3(a), 63 Stat. 676,

prescribed standard cotton grade for parity and price support

purposes.

EFFECTIVE DATE OF REPEAL

Section 108 of Pub. L. 85-835 provided that the repeal of this

section is effective with 1961 crop.

-CITE-

7 USC Sec. 1302 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1302. Repealed. Oct. 31, 1949, ch. 792, title IV, Sec. 414, 63

Stat. 1057

-MISC1-

Section, acts Feb. 16, 1938, ch. 30, title III, Sec. 302, 52

Stat. 43; June 21, 1938, ch. 554, title V, Sec. 502, 52 Stat. 820;

July 3, 1948, ch. 827, title II, Sec. 202(a), 62 Stat. 1252,

related to price support of agricultural commodities.

-CITE-

7 USC Sec. 1303 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1303. Parity payments

-STATUTE-

If and when appropriations are made therefor, the Secretary is

authorized and directed to make payments to producers of corn,

wheat, cotton, rice, or tobacco, on their normal production of such

commodities in amounts which, together with the proceeds thereof,

will provide a return to such producers which is as nearly equal to

parity price as the funds so made available will permit. All funds

available for such payments with respect to these commodities shall

unless otherwise provided by law, be apportioned to these

commodities in proportion to the amount by which each fails to

reach the parity income. Such payments shall be in addition to and

not in substitution for any other payments authorized by law.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 303, 52 Stat. 45.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 12 section 1150a.

-CITE-

7 USC Sec. 1304 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1304. Consumer safeguards

-STATUTE-

The powers conferred under this chapter shall not be used to

discourage the production of supplies of foods and fibers

sufficient to maintain normal domestic human consumption as

determined by the Secretary from the records of domestic human

consumption in the years 1920 to 1929, inclusive, taking into

consideration increased population quantities of any commodity that

were forced into domestic consumption by decline in exports during

such period, current trends in domestic consumption and exports of

particular commodities, and the quantities of substitutes available

for domestic consumption within any general class of food

commodities. In carrying out the purposes of this chapter it shall

be the duty of the Secretary to give due regard to the maintenance

of a continuous and stable supply of agricultural commodities from

domestic production adequate to meet consumer demand at prices fair

to both producers and consumers.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 304, 52 Stat. 45.)

-CITE-

7 USC Sec. 1305 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1305. Transfer of acreage allotments or feed grain bases on

public lands upon request of State agencies

-STATUTE-

Notwithstanding any other provision of law, the Secretary, upon

the request of any agency of any State charged with the

administration of the public lands of the State, may permit the

transfer of acreage allotments or feed grain bases together with

relevant production histories which have been determined pursuant

to this chapter, or section 590p of title 16, from any farm

composed of public lands to any other farm or farms in the same

county composed of public lands: Provided, That as a condition for

the transfer of any allotment or base an acreage equal to or

greater than the allotment or base transferred prior to adjustment,

if any, shall be devoted to and maintained in permanent vegetative

cover on the farm from which the transfer is made. The Secretary

shall prescribe regulations which he deems necessary for the

administration of this section, which may provide for adjusting

downward the size of the allotment or base transferred if the farm

to which the allotment or base is transferred normally has a higher

yield per acre for the commodity for which the allotment or base is

determined, for reasonable limitations on the size of the resulting

allotments and bases on farms to which transfers are made, taking

into account the size of the allotments and bases on farms of

similar size in the community, and for retransferring allotments or

bases and relevant histories if the conditions of the transfers are

not fulfilled.

-SOURCE-

(Pub. L. 89-321, title VII, Sec. 706, Nov. 3, 1965, 79 Stat. 1210;

Pub. L. 91-524, title IV, Sec. 405(a), formerly Sec. 405, title VI,

Sec. 606, Nov. 30, 1970, 84 Stat. 1366, 1378, renumbered Sec.

405(a) and amended Pub. L. 93-86, Sec. 1(12), Aug. 10, 1973, 87

Stat. 229.)

-COD-

CODIFICATION

Section was enacted as part of the Food and Agriculture Act of

1965, and not as part of the Agricultural Adjustment Act of 1938

which comprises this chapter.

-MISC3-

AMENDMENTS

1973 - Pub. L. 93-86 struck out provision that term ''acreage

allotments'' as used in this section includes the domestic

allotment for wheat.

1970 - Pub. L. 91-524 temporarily inserted reference to the

Agricultural Act of 1949, as amended, and provided that ''acreage

allotments'' includes farm base acreage allotments for upland

cotton and domestic allotment for wheat. See Effective and

Termination Dates of 1970 Amendment note below.

EFFECTIVE DATE OF 1973 AMENDMENT

Section 1(12) of Pub. L. 93-86 provided that the amendment made

by that section is effective with 1974 crop.

EFFECTIVE AND TERMINATION DATES OF 1970 AMENDMENT

Sections 405(a) and 606 of Pub. L. 91-524, as amended by section

1(12), (22) of Pub. L. 93-86, provided that the amendments made by

those sections are effective only with respect to 1971 through 1977

crops.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 19 section 2401.

-CITE-

7 USC Sec. 1306 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1306. Projected yields; determination; base period

-STATUTE-

Notwithstanding any other provision of law, in the determination

of farm yields the Secretary may use projected yields in lieu of

normal yields. In the determination of such yields the Secretary

shall take into account the actual yield proved by the producer for

the base period used in determining the projected yield, and the

projected yield shall not be less than such actual yield proved by

the producer.

-SOURCE-

(Pub. L. 89-321, title VII, Sec. 708, Nov. 3, 1965, 79 Stat. 1211;

Pub. L. 91-524, title IV, Sec. 405(b), as added Pub. L. 93-86, Sec.

1(12), Aug. 10, 1973, 87 Stat. 229.)

-COD-

CODIFICATION

Section was enacted as part of the Food and Agriculture Act of

1965, and not as part of the Agricultural Adjustment Act of 1938

which comprises this chapter.

-MISC3-

AMENDMENTS

1973 - Pub. L. 91-524, Sec. 405(b), as added by Pub. L. 93-86,

temporarily inserted ''(except that in the case of wheat, if the

yield is abnormally low in any one of the calendar years of the

base period because of drought, flood, or other natural disaster,

the Secretary shall take into account the actual yield proved by

the producer in the other four years of such base period)'' after

''determining the projected yield''. See Effective and Termination

Dates of 1973 Amendment note below.

EFFECTIVE AND TERMINATION DATES OF 1973 AMENDMENT

Section 405(b) of Pub. L. 91-524, as added by section 1(12) of

Pub. L. 93-86, provided that the amendment made by that section is

effective with respect to 1974 through 1977 crops.

-CITE-

7 USC Sec. 1307 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1307. Limitation on payments under wheat, feed grains, and

cotton programs for 1974 through 1977 crops

-STATUTE-

Notwithstanding any other provision of law -

(1) The total amount of payments which a person shall be entitled

to receive under one or more of the annual programs established by

titles IV, V, and VI of this Act for the 1974 through 1976 crops of

the commodities and by titles IV and V of the Food and Agriculture

Act of 1977 and titles IV, V, and VI of this Act for the 1977 crop

of the commodities shall not exceed $20,000.

(2) The term ''payments'' as used in this section shall not

include loans or purchases, or any part of any payment which is

determined by the Secretary to represent compensation for resource

adjustment or public access for recreation.

(3) If the Secretary determines that the total amount of payments

which will be earned by any person under the program in effect for

any crop will be reduced under this section, the set-aside acreage

for the farm or farms on which such person will be sharing in

payments earned under such program shall be reduced to such extent

and in such manner as the Secretary determines will be fair and

reasonable in relation to the amount of the payment reduction.

(4) The Secretary shall issue regulations defining the term

''person'' and prescribing such rules as he determines necessary to

assure a fair and reasonable application of such limitation:

Provided, That the provisions of this Act which limit payments to

any person shall not be applicable to lands owned by States,

political subdivisions, or agencies thereof, so long as such lands

are farmed primarily in the direct furtherance of a public

function, as determined by the Secretary. The rules for determining

whether corporations and their stockholders may be considered as

separate persons shall be in accordance with the regulations issued

by the Secretary on December 18, 1970.

-SOURCE-

(Pub. L. 91-524, title I, Sec. 101, Nov. 30, 1970, 84 Stat. 1358;

Pub. L. 93-86, Sec. 1(1), Aug. 10, 1973, 87 Stat. 221; Pub. L.

95-113, title I, Sec. 104, Sept. 29, 1977, 91 Stat. 919.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in pars. (1) and (4), is Pub. L. 91-524,

Nov. 30, 1970, 84 Stat. 1358, as amended, known as the Agricultural

Act of 1970. Title IV of that Act enacted section 1334a-1 of this

title, amended sections 1301, 1305, 1306, 1378, 1379, 1379b, 1379c,

1379d, 1379e, 1379g, 1385, 1427, 1428, and 1445a of this title, and

enacted provisions set out as notes under sections 1301, 1305,

1306, 1330 to 1334, 1335, 1336, 1338, 1339, and 1379c of this

title. Title V of that Act amended section 1444b of this title and

provisions set out as a note under section 1444b of this title.

Title VI of that Act enacted sections 1342a, 1350a, and 2119 of

this title, amended sections 1305, 1344b, 1350, 1374, 1378, 1379,

1385, 1427, 1428, 1444, and 1444a of this title, and enacted

provisions set out as notes under sections 1305, 1342, 1342a, 1343,

1344, 1344b, 1345, 1346, 1377, 1378, 1379, 1385, 1427, 1428, 1444,

and 1446d of this title. For complete classification of this Act

to the Code, see Short Title of 1970 Amendment note set out under

section 1281 of this title and Tables.

The Food and Agriculture Act of 1977, referred to in par. (1), is

Pub. L. 95-113, Sept. 29, 1977, 91 Stat. 913. Title IV of the Food

and Agriculture Act of 1977 enacted section 1445b of this title,

amended sections 1385, 1427, and 1428 of this title, and enacted

provisions set out as notes under sections 1330, 1331, 1379d, 1385,

1427, 1428, 1445a, and 1445b of this title. Title V of the Food

and Agriculture Act of 1977 enacted section 1444c of this title and

enacted provisions set out as notes under sections 1444b and 1444c

of this title. For complete classification of this Act to the

Code, see Short Title of 1977 Amendment note set out under 1281 of

this title and Tables.

-COD-

CODIFICATION

Section was enacted as part of the Agricultural Act of 1970, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

AMENDMENTS

1977 - Par. (1). Pub. L. 95-113 substituted ''to receive under

one or more of the annual programs established by titles IV, V, and

VI of this Act for the 1974 through 1976 crops of the commodities

and by titles IV and V of the Food and Agriculture Act of 1977 and

titles IV, V, and VI of this Act for the 1977 crop'' for ''to

receive under one or more of the annual programs established by

titles IV, V, and VI of this Act for the 1974 through 1977 crops''.

1973 - Par. (1). Pub. L. 93-86 substituted ''one or more of the

annual programs established by titles IV, V, and VI of this Act for

the 1974 through 1977 crops of the Commodities shall not exceed

$20,000'' for ''each of the annual programs established by titles

IV, V, and VI of this Act for the 1971, 1972, or 1973 crop of the

commodity shall not exceed $55,000''.

Par. (2). Pub. L. 93-86 substituted ''shall not include loans or

purchases, or any part of any payment which is determined by the

Secretary to represent compensation for resource adjustment or

public access for recreation'' for ''includes price-support

payments, set-aside payments, diversion payments, public access

payments, and marketing certificates, but does not include loans or

purchases''.

Par. (3). Pub. L. 93-86 reenacted par. (3) without change.

Par. (4). Pub. L. 93-86 inserted provision that the rules for

determining whether corporations and their stockholders may be

considered as separate persons shall be in accordance with the

regulations issued by the Secretary on December 18, 1970.

EFFECTIVE DATE OF 1977 AMENDMENT

Section 1901 of Pub. L. 95-113 provided that: ''Except as

otherwise provided herein, the provisions of this Act (see Short

Title of 1977 Amendment note set out under section 1281 of this

title) shall become effective October 1, 1977.''

EXEMPTION OF DISASTER PAYMENT LIMITATIONS RESPECTING 1977 CROPS OF

WHEAT, FEED GRAINS, UPLAND COTTON, AND RICE

Pub. L. 95-156, Nov. 8, 1977, 91 Stat. 1264, provided: ''That,

notwithstanding any other provision of law, the term 'payments' as

used in section 101 of the Agricultural Act of 1970, as amended

(this section), and section 101(g)(13) of the Agricultural Act of

1949, as amended (section 1441(g)(13) of this title), shall not

include any part of any payment which is determined by the

Secretary of Agriculture to represent compensation for disaster

loss with respect to the 1977 crops of wheat, feed grains, upland

cotton, and rice.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1308 of this title; title

16 section 3834.

-CITE-

7 USC Sec. 1308 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308. Payment limitations

-STATUTE-

(a) Definitions

In this section:

(1) Covered commodity

The term ''covered commodity'' has the meaning given that term

in section 1001 of the Farm Security and Rural Investment Act of

2002 (7 U.S.C. 7901).

(2) Loan commodity

The term ''loan commodity'' has the meaning given that term in

section 1001 of the Farm Security and Rural Investment Act of

2002 (7 U.S.C. 7901), except that the term does not include wool,

mohair, or honey.

(3) Secretary

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

(b) Limitation on direct payments

(1) Covered commodities

The total amount of direct payments made to a person during any

crop year under subtitle A of title I of the Farm Security and

Rural Investment Act of 2002 (7 U.S.C. 7911 et seq.) for 1 or

more covered commodities may not exceed $40,000.

(2) Peanuts

The total amount of direct payments made to a person during any

crop year under subtitle C of title I of the Farm Security and

Rural Investment Act of 2002 (7 U.S.C. 7951 et seq.) may not

exceed $40,000.

(c) Limitation on counter-cyclical payments

(1) Covered commodities

The total amount of counter-cyclical payments made to a person

during any crop year under subtitle A of title I of the Farm

Security and Rural Investment Act of 2002 (7 U.S.C. 7911 et seq.)

for 1 or more covered commodities may not exceed $65,000.

(2) Peanuts

The total amount of counter-cyclical payments made to a person

during any crop year under subtitle C of title I of the Farm

Security and Rural Investment Act of 2002 (7 U.S.C. 7951 et seq.)

may not exceed $65,000.

(d) Limitation on marketing loan gains and loan deficiency payments

(1) Loan commodities

The total amount of the following gains and payments that a

person may receive during any crop year may not exceed $75,000:

(A) Any gain realized by a producer from repaying a marketing

assistance loan for 1 or more loan commodities under subtitle B

of title I of the Farm Security and Rural Investment Act of

2002 (7 U.S.C. 7931 et seq.) at a lower level than the original

loan rate established for the loan commodity under that

subtitle.

(B) Any loan deficiency payments received for 1 or more loan

commodities under that subtitle.

(2) Other commodities

The total amount of the following gains and payments that a

person may receive during any crop year may not exceed $75,000:

(A) Any gain realized by a producer from repaying a marketing

assistance loan for peanuts, wool, mohair, or honey under

subtitle B or C of title I of the Farm Security and Rural

Investment Act of 2002 (7 U.S.C. 7931 et seq., 7951 et seq.) at

a lower level than the original loan rate established for the

commodity under those subtitles.

(B) Any loan deficiency payments received for peanuts, wool,

mohair, and honey under those subtitles.

(e) Definition of person

(1) The Secretary shall issue regulations -

(A) defining the term ''person''; and

(B) prescribing such rules as the Secretary determines

necessary to assure a fair and reasonable application of the

limitation established under this section.

(2)(A) For the purposes of the regulations issued under paragraph

(1), subject to subparagraph (B), the term ''person'' means -

(i) an individual, including any individual participating in a

farming operation as a partner in a general partnership, a

participant in a joint venture, a grantor of a revocable trust,

or a participant in a similar entity (as determined by the

Secretary);

(ii) a corporation, joint stock company, association, limited

partnership, charitable organization, or other similar entity (as

determined by the Secretary), including any such entity or

organization participating in the farming operation as a partner

in a general partnership, a participant in a joint venture, a

grantor of a revocable trust, or as a participant in a similar

entity (as determined by the Secretary); and

(iii) a State, political subdivision, or agency thereof.

(B)(i) Such regulations shall provide that the term ''person''

does not include any cooperative association of producers that

markets commodities for producers with respect to the commodities

so marketed for producers.

(ii) In defining the term ''person'' as it will apply to

irrevocable trusts and estates, the Secretary shall ensure that

fair and equitable treatment is given to trusts and estates and the

beneficiaries thereof.

(iii) Notwithstanding any other provision of law, to be

considered a separate person under this section, an irrevocable

trust (other than a trust established prior to January 1, 1987)

must not allow for modification or termination of the trust by the

grantor, allow for the grantor to have any future, contingent, or

remainder interest in the corpus of the trust, or provide for the

transfer of the corpus of the trust to the remainder beneficiary in

less than 20 years from the date the trust is established except in

cases where the transfer is contingent on the remainder beneficiary

achieving at least the age of majority or is contingent on the

death of the grantor or income beneficiary.

(C) The regulations shall provide that, with respect to any

married couple, the husband and wife shall be considered to be one

person, except that, for the purpose of the application of the

limitations established under this section -

(i) in the case of any married couple consisting of spouses

who, prior to their marriage, were separately engaged in

unrelated farming operations, each spouse shall be treated as a

separate person with respect to the farming operation brought

into the marriage by the spouse so long as the operation remains

as a separate farming operation; and

(ii) at the option of the Secretary, in the case of any married

couple consisting of spouses who do not hold, directly or

indirectly, a substantial beneficial interest in more than one

entity (including the spouses themselves) engaged in farm

operations that also receives farm program payments (as described

in subsections (b), (c), and (d) of this section) as separate

persons, the spouses may be considered as separate persons if

each spouse meets the other requirements established under this

section and section 1308-1 of this title to be considered to be a

separate person.

(3) The regulations issued by the Secretary on December 18, 1970,

under section 1307 of this title shall be used to establish the

percentage ownership of a corporation by the stockholders of such

corporation for the purpose of determining whether such corporation

and stockholders are separate persons under this section.

(4) Any person that conducts a farming operation to produce a

crop subject to limitations under this section as a tenant that

rents the land for cash (or a crop share guaranteed as to the

amount of the commodity to be paid in rent) and that makes a

significant contribution of active personal management but not of

personal labor shall be ineligible to receive any payment specified

in paragraph (1) or (2) or subtitle D of title XII (16 U.S.C. 3830

et seq.) with respect to such land unless the tenant makes a

significant contribution of equipment used in the farming

operation.

(5) The Secretary may not approve (for purposes of the

application of the limitations under this section) any change in a

farming operation that otherwise will increase the number of

persons to which the limitations under this section are applied

unless the Secretary determines that the change is bona fide and

substantive. In the implementation of the preceding sentence, the

addition of a family member to a farming operation under the

criteria set out in section 1308-0(b)(1)(B) of this title shall be

considered a bona fide and substantive change in the farming

operation.

(f) Public schools

The provisions of this section that limit payments to any person

shall not be applicable to land owned by a public school district

or land owned by a State that is used to maintain a public school.

(g) Time limits; reliance

Regulations of the Secretary shall establish time limits for the

various steps involved with notice, hearing, decision, and the

appeals procedure in order to ensure expeditious handling and

settlement of payment limitation disputes. Notwithstanding any

other provision of law, actions taken by an individual or other

entity in good faith on action or advice of an authorized

representative of the Secretary may be accepted as meeting the

requirement under this section or section 1308-1 of this title, to

the extent the Secretary deems it desirable in order to provide

fair and equitable treatment.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1001, Dec. 23, 1985, 99 Stat. 1444;

Pub. L. 99-500, Sec. 108(a), Oct. 18, 1986, 100 Stat. 1783-346, and

Pub. L. 99-591, Sec. 108(a), Oct. 30, 1986, 100 Stat. 3341-346;

Pub. L. 100-71, title I, July 11, 1987, 101 Stat. 428; Pub. L.

100-203, title I, Sec. 1301(a)(1), (2), 1303, 1305(c), 1307, Dec.

22, 1987, 101 Stat. 1330-12, 1330-16, 1330-18, 1330-19; Pub. L.

101-217, Sec. 1, 2, Dec. 11, 1989, 103 Stat. 1857; Pub. L. 101-624,

title XI, Sec. 1111(a), (c), (e), Nov. 28, 1990, 104 Stat.

3497-3499; Pub. L. 102-237, title I, Sec. 118(b), Dec. 13, 1991,

105 Stat. 1841; Pub. L. 103-66, title I, Sec. 1101(b)(3)(A), Aug.

10, 1993, 107 Stat. 314; Pub. L. 104-127, title I, Sec. 115(b),

Apr. 4, 1996, 110 Stat. 902; Pub. L. 107-171, title I, Sec.

1603(a), (b), May 13, 2002, 116 Stat. 213, 214.)

-REFTEXT-

REFERENCES IN TEXT

The Farm Security and Rural Investment Act of 2002, referred to

in subsecs. (b) to (d), is Pub. L. 107-171, May 13, 2002, 116 Stat.

134. Subtitles A, B, and C of title I of the Act are classified

generally to subchapters I (Sec. 7911 et seq.), II (Sec. 7931 et

seq.), and III (Sec. 7951 et seq.), respectively, 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.

Subtitle D of title XII, referred to in subsec. (e)(4), means

subtitle D of title XII of the Food Security Act of 1985, Pub. L.

99-198, Dec. 23, 1985, 99 Stat. 1354, as amended, which is

classified generally to subchapter IV (Sec. 3830 et seq.) of

chapter 58 of Title 16, Conservation.

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

Section was enacted as part of the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

PRIOR PROVISIONS

A prior section 1308, Pub. L. 97-98, title XI, Sec. 1101, Dec.

22, 1981, 95 Stat. 1263; Pub. L. 98-88, Sec. 6, Aug. 26, 1983, 97

Stat. 499, related to programs for 1982 through 1985 crops.

Another prior section 1308, Pub. L. 95-113, title I, Sec. 101,

Sept. 29, 1977, 91 Stat. 917; Pub. L. 96-213, Sec. 5, Mar. 18,

1980, 94 Stat. 120, related to programs for 1978 through 1981

crops.

AMENDMENTS

2002 - Pub. L. 107-171, Sec. 1603(a), substituted section

catchline for former section catchline.

Subsec. (a) to (d). Pub. L. 107-171, Sec. 1603(a), added subsecs.

(a) to (d) and struck out former pars. (1) to (4) which related to

limitation on payments under production flexibility contracts,

limitation on marketing loan gains and loan deficiency payments,

description of payments subject to limitation, and definitions,

respectively.

Subsec. (e). Pub. L. 107-171, Sec. 1603(b)(1), redesignated par.

(5) as subsec. (e), inserted heading, further redesignated former

subpars., cls., and subcls. as pars., subpars., and cls.,

respectively, substituted ''paragraph (1), subject to subparagraph

(B)'' for ''subparagraph (A), subject to clause (ii)'' in subsec.

(e)(2)(A) and ''as described in subsections (b), (c), and (d) of

this section'' for ''as described in paragraphs (1) and (2)'' in

subsec. (e)(2)(C)(ii), and struck out second sentence of subsec.

(e)(1) which read as follows: ''Such regulations shall incorporate

the provisions in subparagraphs (B) through (E) of this paragraph,

paragraphs (6) and (7), and sections 1308-1 through 1308-3 of this

title.''

Subsec. (f). Pub. L. 107-171, Sec. 1603(b)(2), redesignated par.

(6) as subsec. (f) and inserted heading.

Subsec. (g). Pub. L. 107-171, Sec. 1603(b)(3), redesignated par.

(7) as subsec. (g) and inserted heading.

1996 - Pars. (1) to (4). Pub. L. 104-127 added pars. (1) to (4)

and struck out former pars. (1) to (4) which established

limitations on payments under wheat, feed grains, upland cotton,

extra long staple cotton, honey, and rice programs for 1987 through

1997 crops.

1993 - Pars. (1)(A), (B), (2)(A). Pub. L. 103-66 substituted

''1997'' for ''1995''.

1991 - Par. (2)(B)(iv). Pub. L. 102-237 inserted ''section''

before ''107B(c)(1)''.

1990 - Par. (1). Pub. L. 101-624, Sec. 1111(a)(1), designated

existing provisions as subpar. (A), substituted ''1995'' for

''1990'', and added subpar. (B).

Par. (2)(A). Pub. L. 101-624, Sec. 1111(a)(2), substituted ''1991

through 1995 crops'' for ''1987 through 1990 crops'' and

substituted ''and'' for ''honey, and (with respect to clause

(iii)(II) of subparagraph (B))'' after ''rice,''.

Par. (2)(B)(iii). Pub. L. 101-624, Sec. 1111(a)(3)(A), added cl.

(iii) and struck out former cl. (iii) which read as follows:

''(iii)(I) any gain realized by a producer from repaying a loan for

a crop of wheat, feed grains, upland cotton, rice, or honey at the

rate permitted under section 107D(a)(5), 105C(a)(4), 103A(a)(5),

101A(a)(5), or 201(b)(2), respectively, of the Agricultural Act of

1949 or (II) any gain realized by a producer from repaying a loan

for a crop of any other commodity at a lower level than the

original loan level established under the Agricultural Act of

1949;''

Par. (2)(B)(iv). Pub. L. 101-624, Sec. 1111(a)(3)(B), substituted

''107B(c)(1) or 105B(c)(1)'' for ''section 107D(c)(1) or

105C(c)(1)'', and ''section 107B(a)(3) or 105B(a)(3)'' for

''section 107D(a)(4) or 105C(a)(3)''.

Par. (2)(B)(v). Pub. L. 101-624, Sec. 1111(a)(3)(C), added cl.

(v) and struck out former cl. (v) which read as follows: ''(v) any

loan deficiency payment received for a crop of wheat, feed grains,

upland cotton, or rice under section 107D(b), 105C(b), 103A(b), or

101A(b), respectively, of the Agricultural Act of 1949; and''.

Par. (2)(B)(vi). Pub. L. 101-624, Sec. 1111(a)(3)(D), substituted

''section 107B(f), 105B(f), 103B(f), or 101B(f)'' for ''section

107D(g), 105C(g), 103A(g), or 101A(g)''.

Par. (5)(B)(ii)(III). Pub. L. 101-624, Sec. 1111(e), added subcl.

(III).

Par. (5)(B)(iii). Pub. L. 101-624, Sec. 1111(c), amended cl.

(iii) generally. Prior to amendment, cl. (iii) read as follows:

''Such regulations shall provide that, with respect to any married

couple, the husband and wife shall be considered to be one person,

except that any married couple consisting of spouses who, prior to

their marriage, were separately engaged in unrelated farming

operations, each spouse shall be treated as a separate person with

respect to the farming operation brought into the marriage by such

spouse so long as such operation remains as a separate farming

operation, for the purposes of the application of the limitations

under this section.''

1989 - Par. (5)(D). Pub. L. 101-217, Sec. 2, amended subpar. (D)

generally, striking out cl. (i) designation, substituting ''Any''

for ''Except as provided in clause (ii), any'' and ''ineligible to

receive any payment specified in paragraph (1) or (2) or subtitle D

of title XII with respect to such land'' for ''considered the same

person as the landlord'', and struck out cls. (ii) and (iii) which

read as follows:

''(ii) A tenant that because of any act or failure to act would

otherwise be considered the same person as the landlord under

clause (i) shall not be considered the same person as the landlord

if the Secretary has at any time made a determination, for purposes

of this section, regarding the number of persons with respect to

the tenant's operation on such land for the 1989 crop year and the

landlord did not consent to or knowingly participate in such act or

failure to act.

''(iii) Any tenant that would be considered to be the same person

as the landlord but for the operation of clause (ii) shall be

eligible to receive any payment specified in paragraph (1) or (2)

or subtitle D of title XII with respect to such land only to the

extent that the tenant would be eligible for such payments if the

tenant were to be considered the same person as the landlord under

the regulations in place immediately prior to the enactment of this

subparagraph.''

Pub. L. 101-217, Sec. 1, in temporarily amending subpar. (D)

generally, designated existing provisions as cl. (i) and added cls.

(ii) and (iii). See Effective and Termination Dates of 1989

Amendment note below.

1987 - Par. (1). Pub. L. 100-203, Sec. 1301(a)(1), substituted

''Subject to sections 1308-1 through 1308-3 of this title, for

each'' for ''For each''.

Par. (2)(A). Pub. L. 100-203, Sec. 1301(a)(2)(A), substituted

''Subject to sections 1308-1 through 1308-3 of this title, for

each'' for ''For each''.

Par. (2)(C). Pub. L. 100-203, Sec. 1307, struck out cl. (ii)

designation, and struck out cl. (i) which read as follows: ''The

total amount of loans on a crop of honey that a person may have

outstanding at any one time under the annual program established

for such crop under the Agricultural Act of 1949 may not exceed

$250,000 less the amount of payments, as described in paragraph (1)

and subparagraphs (A) and (B) of this paragraph, received by such

person for the crop year involved.''

Pub. L. 100-203, Sec. 1301(a)(2)(B), which directed substitution

of ''Subject to sections 1308-1 through 1308-3 of this title, the

total'' for ''The total'' could not be executed in view of

amendments by Pub. L. 100-71 and section 1307 of Pub. L. 100-203.

Pub. L. 100-71 designated existing provision as cl. (i) and added

cl. (ii).

Par. (5)(A). Pub. L. 100-203, Sec. 1303(a)(1), (2), inserted

after first sentence ''Such regulations shall incorporate the

provisions in subparagraphs (B) through (E) of this paragraph,

paragraphs (6) and (7), and sections 1308-1 through 1308-3 of this

title'' and struck out at end ''Such regulations shall provide that

the term 'person' does not include any cooperative association of

producers that markets commodities for producers with respect to

the commodities so marketed for producers.''

Par. (5)(B). Pub. L. 100-203, Sec. 1303(a)(2), (3), added subpar.

(B) and redesignated former subpar. (B) as (C).

Par. (5)(C). Pub. L. 100-203, Sec. 1303(a)(3), redesignated

subpar. (B) as (C).

Par. (5)(D), (E). Pub. L. 100-203, Sec. 1303(a)(4), added

subpars. (D) and (E).

Par. (6). Pub. L. 100-203, Sec. 1303(b), amended par. (6)

generally. Prior to amendment, par. (6) read as follows: ''The

provisions of this section that limit payments to any person shall

not be applicable to lands or animals owned by States, political

subdivisions, or agencies thereof, so long as such lands are farmed

or animals are husbanded primarily in the direct furtherance of a

public function, as determined by the Secretary.''

Par. (7). Pub. L. 100-203, Sec. 1305(c), added par. (7).

1986 - Par. (1). Pub. L. 99-500 and Pub. L. 99-591, Sec.

108(a)(1), in temporarily amending par. (1) generally, substituted

provision limiting, for each of the 1987 through 1990 crops, the

total amount of deficiency payments, excluding deficiency payments

described in par. (2)(B)(I)(iv) and land diversion payments that

any one person be entitled to as not to exceed $50,000 for

provision limiting, for each of the 1986 through 1990 crops, the

total amount of payments, excluding disaster payments, that any one

person be entitled to as not to exceed $50,000. See Effective and

Termination Dates of 1986 Amendment note below.

Par. (2). Pub. L. 99-500 and Pub. L. 99-591, Sec. 108(a)(1), in

temporarily amending par. (2) generally, designated existing

provision as subpar. (A), and in subpar. (A) as so designated,

substituted provision limiting, for each of the 1987 through 1990

crops, the total amount of payments set forth in subpar. (B) that

any one person be entitled to as not to exceed $250,000 and

inserting honey as an eligible crop for provision limiting, for

each of the 1986 through 1990 crops, the total amount of disaster

payments not any one person be entitled to as not to exceed

$100,000, and added subpars. (B) and (C). See Effective and

Termination Dates of 1986 Amendment note below.

Par. (3). Pub. L. 99-500 and Pub. L. 99-591, Sec. 108(a)(1),

temporarily substituted provision authorizing the Secretary, if he

determines that a limitation will have an adverse effect on a

program, to adjust upward such limitation as appropriate or

necessary for provision specifying what is not included within the

term ''payments'' as used in this section. See Effective and

Termination Dates of 1986 Amendment note below.

Par. (5)(A). Pub. L. 99-500 and Pub. L. 99-591, Sec. 108(a)(2),

temporarily inserted provision that the term ''person'' not include

any cooperative association of producers that markets commodities

for producers with respect to the commodities so marketed for

producers. See Effective and Termination Dates of 1986 Amendment

note below.

Par. (6). Pub. L. 99-500 and Pub. L. 99-591, Sec. 108(a)(3),

temporarily substituted ''lands or animals owned'' for ''lands

owned'' and inserted ''or animals are husbanded''. See Effective

and Termination Dates of 1986 Amendment note below.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-624 effective beginning with 1991 crop

of an agricultural commodity, with provision for prior crops, see

section 1171 of Pub. L. 101-624, set out as a note under section

1421 of this title.

EFFECTIVE AND TERMINATION DATES OF 1989 AMENDMENT

Section 1 of Pub. L. 101-217 provided that the amendment made by

that section is effective only for 1989 crops.

Section 2 of Pub. L. 101-217, as amended by Pub. L. 101-624,

title XI, Sec. 1111(i), Nov. 28, 1990, 104 Stat. 3500, provided

that the amendment made by that section is effective beginning with

1990 crops.

EFFECTIVE DATE OF 1987 AMENDMENT

Sections 1301(a) and 1303 of Pub. L. 100-203 provided that the

amendments made by sections 1301(a)(1), (2) and 1303 of Pub. L.

100-203 are effective beginning with 1989 crops.

EFFECTIVE AND TERMINATION DATES OF 1986 AMENDMENT

Section 108(a) of Pub. L. 99-500 and Pub. L. 99-591 provided that

the amendment made by that section is effective with respect to

each of 1987 through 1990 crops.

Section 108(b) of Pub. L. 99-500 and Pub. L. 99-591 provided

that: ''The amendments made by subsection (a) (amending this

section) shall not apply with respect to any payment or loan

received under any agreement or contract made before the date of

enactment of this Act (Oct. 18, 1986).''

TRANSITION PROVISIONS

Pub. L. 107-171, title I, Sec. 1603(d), May 13, 2002, 116 Stat.

215, provided that: ''Section 1001 of the Food Security Act of 1985

(7 U.S.C. 1308), as in effect on the day before the date of the

enactment of this Act (May 13, 2002), shall continue to apply with

respect to the 2001 crop of any covered commodity.''

EQUITABLE RELIEF

Section 3 of Pub. L. 101-217 provided that: ''Nothing in this Act

(amending this section and enacting provisions set out as notes

under this section) shall be construed in any way to limit the

authority of the Secretary of Agriculture to provide equitable

relief under any provision of law.''

PAYMENT PROVISIONS EDUCATION PROGRAM

Section 1304(a) of Pub. L. 100-203 provided that:

''(1) In general. - The Secretary of Agriculture shall implement

a payment provisions education program for appropriate personnel of

the Department of Agriculture and members and other personnel of

local, county, and State committees established under section 8(b)

of the Soil Conservation and Domestic Allotment Act (16 U.S.C.

590h(b)), for the purpose of fostering more effective and uniform

application of the payment limitations and restrictions under

sections 1001 through 1001C of the Food Security Act of 1985

(sections 1808 to 1308-3 of this title).

''(2) Training. - The education program shall provide training to

such personnel in the fair, accurate, and uniform application to

individual farming operations of the provisions of law and

regulation relating to the payment provisions of sections 1001

through 1001C of the Food Security Act of 1985. Particular emphasis

shall be given to the changes in the law made by sections 1301,

1302, and 1303 of this Act (enacting section 1308-1 of this title,

amending this section, and enacting provisions set out as notes

under this section and section 1308-1 of this title).

''(3) Implementation. - The education program shall be fully

implemented, and the training completed, not later than 30 days

after the date final regulations are issued to carry out the

amendments made by this subtitle (enacting sections 1308-1 to

1308-3 of this title and amending this section and section 1308-1

of this title).

''(4) Commodity Credit Corporation. - The Secretary shall carry

out the program provided under this subsection through the

Commodity Credit Corporation.''

REGULATIONS TO CARRY OUT 1987 AMENDMENTS; TRANSITION RULES;

EQUITABLE ADJUSTMENTS

Section 1305(a), (b) of Pub. L. 100-203 provided that:

''(a) Regulations. -

''(1) Issuance. - The Secretary of Agriculture shall issue -

''(A) proposed regulations to carry out the amendments made

by this subtitle (enacting sections 1308-1 to 1308-3 of this

title and amending this section and section 1308-1 of this

title) not later than April 1, 1988; and

''(B) final regulations to carry out such amendments not

later than August 1, 1988.

''(2) Field instructions. - Any field instructions relating to,

or other supplemental clarifications of, the regulations issued

under sections 1001 through 1001C of the Food Security Act of

1985 (sections 1308 to 1308-3 of this title) shall not be used in

resolving issues involved in the application of the payment

limitations or restrictions under such sections or regulations to

individuals, other entities, or farming operations until copies

of the publication are made available to the public.

''(b) Allowance for Equitable Reorganizations. - To allow for the

equitable reorganization of farming operations to conform to the

limitations and restrictions contained in the amendments made to

the Food Security Act of 1985 by this subtitle (enacting sections

1308-1 to 1308-3 of this title and amending this section and

section 1308-1 of this title) in cases in which the application of

such limitations and restrictions will reduce payments to the

farming operation (as determined by the Secretary), the Secretary

may waive the application of the substantive change rule under

section 1001(5)(E) (section 1308(5)(E) (now 1308(e)(5)) of this

title), as added by section 1303 of this Act, or any regulation of

the Secretary containing a comparable rule, to any reorganization

applied for prior to the final date when producers are eligible to

enter into contracts to participate in the commodity programs

established for the 1989 crop year, to the extent the Secretary

determines appropriate to facilitate any such equitable

reorganizations that does not increase such payments.''

CONSERVATION RESERVE APPLICATION

Section 1305(d) of Pub. L. 100-203 provided that:

''Notwithstanding section 1234(f)(2) of the Food Security Act of

1985 (16 U.S.C. 3834(f)), paragraphs (5) through (7) of section

1001 (section 1308(5)-(7) (now 1308(e)-(g)) of this title), as

amended by this subtitle, and sections 1001A through 1001C, of the

Food Security Act of 1985 (sections 1308-1 to 1308-3 of this title)

shall apply to the conservation reserve program under subtitle D of

title XII of such Act (16 U.S.C. 3830 et seq.) with respect to

rental payments to persons under contracts entered into after the

date of the enactment of this Act (Dec. 22, 1987), except with

respect to landlords that receive cash rent, or a crop share

guaranteed as to the amount of the commodity to be paid in rent,

for the use of the land.''

REVISION OF REGULATIONS

Section 108(c) of Pub. L. 99-500 and Pub. L. 99-591 provided

that:

''(1)(A) The Secretary of Agriculture shall review the

regulations in effect on the date of enactment of this Act (Oct.

18, 1986) that define 'person' under section 1001 of the Food

Security Act of 1985 (this section) and related regulations in

effect on such date otherwise affecting the payment limitations

under such section, to determine ways in which such regulations can

be revised to better ensure the fair and reasonable application of

limitations and eliminate fraud and abuse in the application of

such payment limitations.

''(B) The Secretary also shall review the amendments to section

1001 of the Food Security Act of 1985 made by this section.

''(2) Based on the reviews conducted under paragraph (1), the

Secretary of Agriculture shall submit to the Committee on

Agriculture, Nutrition, and Forestry of the Senate and the

Committee on Agriculture of the House of Representatives, not later

than March 1, 1987, a report on such reviews and -

''(A) with respect to the matters reviewed under paragraph

(1)(A), proposed regulations or amendments to regulations, to

take effect not earlier than October 1, 1987, that will meet the

object with respect to limitations specified in paragraph (1)(A);

and

''(B) with respect to the matters reviewed under paragraph

(1)(B), recommendations on legislative changes to section 1001 of

the Food Security Act of 1985 that the Secretary determines are

necessary or appropriate.''

SEPARATE PERSON STATUS AMONG FAMILY MEMBERS

Pub. L. 99-198 (last sentence), as added by Pub. L. 99-500, Sec.

101(a) (title VI, Sec. 636), Oct. 18, 1986, 100 Stat. 1783,

1783-34, and Pub. L. 99-591, Sec. 101(a) (title VI, Sec. 636), Oct.

30, 1986, 100 Stat. 3341, 3341-34, provided that: ''Effective for

each of the 1987 through 1990 crops, the Secretary may not deny a

person status as a separate person solely on the ground that a

family member cosigns for, or makes a loan to, such person and

leases, loans, or gives such person equipment, land or labor, if

such family members were organized as separate units prior to

December 31, 1985.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1308-1, 1308-2, 1308-3a,

1308-4, 1308a, 1471g, 1524, 7213, 7215, 7333, 7996, 8204 of this

title; title 16 section 2106a; title 19 section 2401e.

-CITE-

7 USC Sec. 1308-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308-1. Prevention of creation of entities to qualify as

separate persons; payments limited to active farmers

-STATUTE-

(a) Prevention of creation of entities to qualify as separate

persons

For the purposes of preventing the use of multiple legal entities

to avoid the effective application of the payment limitations under

section 1308 of this title:

(1) In general

A person (as defined in section 1308(e)(2)(A) of this title)

that receives farm program payments (as described in paragraphs

(1) and (2) of this section as being subject to limitation) for a

crop year may not also hold, directly or indirectly, substantial

beneficial interests in more than two entities (as defined in

section 1308(e)(2)(A)(ii) of this title) engaged in farm

operations that also receive such payments as separate persons,

for the purposes of the application of the limitations under

section 1308 of this title. A person that does not receive such

payments for a crop year may not hold, directly or indirectly,

substantial beneficial interests in more than three entities that

receive such payments as separate persons, for the purposes of

the application of the limitations under section 1308 of this

title.

(2) Minimal beneficial interests

For the purpose of this subsection, a beneficial interest in

any entity that is less than 10 percent of all beneficial

interests in such entity combined shall not be considered a

substantial beneficial interest, unless the Secretary determines,

on a case-by-case basis, that a smaller percentage should apply

to one or more beneficial interests to ensure that the purpose of

this subsection is achieved.

(3) Notification by entities

To facilitate administration of this subsection, each entity

receiving such payments as a separate person shall notify each

individual or other entity that acquires or holds a substantial

beneficial interest in it of the requirements and limitations

under this subsection. Each such entity receiving payments shall

provide to the Secretary of Agriculture, at such times and in

such manner as prescribed by the Secretary, the name and social

security number of each individual, or the name and taxpayer

identification number of each entity, that holds or acquires a

substantial beneficial interest.

(4) Notification of interest

(A) In general

If a person is notified that the person holds substantial

beneficial interests in more than the number of entities

receiving payments that is permitted under this subsection for

the purposes of the application of the limitations under

section 1308 of this title, the person immediately shall notify

the Secretary, designating those entities that should be

considered as permitted entities for the person for purposes of

applying the limitations. Each remaining entity in which the

person holds a substantial beneficial interest shall be subject

to reductions in the payments to the entity subject to

limitation under section 1308 of this title in accordance with

this subparagraph. Each such payment applicable to the entity

shall be reduced by an amount that bears the same relation to

the full payment that the person's beneficial interest in the

entity bears to all beneficial interests in the entity

combined. Before making such reductions, the Secretary shall

notify all individuals or entities affected thereby and permit

them to adjust among themselves their interests in the

designated entity or entities.

(B) Notice not provided

If the person does not so notify the Secretary, all entities

in which the person holds substantial beneficial interests

shall be subject to reductions in the per person limitations

under section 1308 of this title in the manner described in

subparagraph (A). Before making such reductions, the Secretary

shall notify all individuals or entities affected thereby and

permit them to adjust among themselves their interests in the

designated entity or entities.

(b) Payments limited to active farmers

(1) In general

To be separately eligible for farm program payments (as

described in paragraphs (1) and (2) (FOOTNOTE 1) of section 1308

of this title as being subject to limitation) with respect to a

particular farming operation (whether in the person's own right

or as a partner in a general partnership, a grantor of a

revocable trust, a participant in a joint venture, or a

participant in a similar entity (as determined by the Secretary)

that is the producer of the crops involved), a person must be an

individual or entity described in section 1308(e)(2)(A) of this

title and actively engaged in farming with respect to such

operation, as provided under paragraphs (2), (3), and (4).

(FOOTNOTE 1) See References in Text note below.

(2) General classes actively engaged in farming

For the purposes of paragraph (1), except as otherwise provided

in paragraph (3):

(A) Individuals

An individual shall be considered to be actively engaged in

farming with respect to a farm operation if -

(i) the individual makes a significant contribution (based

on the total value of the farming operation) of -

(I) capital, equipment, or land; and

(II) personal labor or active personal management;

to the farming operation; and

(ii) the individual's share of the profits or losses from

the farming operation is commensurate with the individual's

contributions to the operation; and

(iii) the individual's contributions are at risk.

(B) Corporations or other entities

A corporation or other entity described in section

1308(e)(2)(A)(ii) of this title shall be considered as actively

engaged in farming with respect to a farming operation if -

(i) the entity separately makes a significant contribution

(based on the total value of the farming operation) of

capital, equipment, or land;

(ii) the stockholders or members collectively make a

significant contribution of personal labor or active personal

management to the operation; and

(iii) the standards provided in clauses (ii) and (iii) of

paragraph (A), as applied to the entity, are met by the

entity.

(C) Entities making significant contributions

If a general partnership, joint venture, or similar entity

(as determined by the Secretary) separately makes a significant

contribution (based on the total value of the farming operation

involved) of capital, equipment, or land, and the standards

provided in clauses (ii) and (iii) of paragraph (A), as applied

to the entity, are met by the entity, the partners or members

making a significant contribution of personal labor or active

personal management shall be considered to be actively engaged

in farming with respect to the farming operation involved.

(D) Equipment and personal labor

In making determinations under this subsection regarding

equipment and personal labor, the Secretary shall take into

consideration the equipment and personal labor normally and

customarily provided by farm operators in the area involved to

produce program crops.

(3) Special classes actively engaged in farming

Notwithstanding paragraph (2), the following persons shall be

considered to be actively engaged in farming with respect to a

farm operation:

(A) Landowners

A person that is a landowner contributing the owned land to

the farming operation if the landowner receives rent or income

for such use of the land based on the land's production or the

operation's operating results, and the person meets the

standard provided in clauses (ii) and (iii) of paragraph

(2)(A).

(B) Family members

With respect to a farming operation conducted by persons, a

majority of whom are individuals who are family members, an

adult family member who makes a significant contribution (based

on the total value of the farming operation) of active personal

management or personal labor and, with respect to such

contribution, who meets the standards provided in clauses (ii)

and (iii) of paragraph (2)(A). For the purposes of the

preceding sentence, the term ''family member'' means an

individual to whom another family member in the farming

operation is related as lineal ancestor, lineal descendant, or

sibling (including the spouses of those family members who do

not make a significant contribution themselves).

(C) Sharecroppers

A sharecropper who makes a significant contribution of

personal labor to the farming operation and, with respect to

such contribution, who meets the standards provided in clauses

(ii) and (iii) of paragraph (2)(A).

(4) Persons not actively engaged in farming

For the purposes of paragraph (1), except as provided in

paragraph (3), the following persons shall not be considered to

be actively engaged in farming with respect to a farm operation:

(A) Landlords

A landlord contributing land to the farming operation if the

landlord receives cash rent, or a crop share guaranteed as to

the amount of the commodity to be paid in rent, for such use of

the land.

(B) Other persons

Any other person, or class of persons, determined by the

Secretary as failing to meet the standards set out in

paragraphs (2) and (3).

(5) Custom farming services

A person receiving custom farming services will be considered

separately eligible for payment limitation purposes if such

person is actively engaged in farming based on paragraphs (1)

through (3). No other rules with respect to custom farming shall

apply.

(6) Growers of hybrid seed

To determine whether a person growing hybrid seed under

contract shall be considered to be actively engaged in farming,

the Secretary shall not take into consideration the existence of

a hybrid seed contract.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1001A, as added and amended Pub. L.

100-203, title I, Sec. 1301(a)(3), 1302, Dec. 22, 1987, 101 Stat.

1330-12, 1330-14; Pub. L. 101-624, title XI, Sec. 1111(d), (f),

Nov. 28, 1990, 104 Stat. 3498, 3499; Pub. L. 102-237, title I, Sec.

118(c), Dec. 13, 1991, 105 Stat. 1841; Pub. L. 104-127, title I,

Sec. 115(c)(1), Apr. 4, 1996, 110 Stat. 903; Pub. L. 107-171, title

I, Sec. 1603(c)(1), May 13, 2002, 116 Stat. 215.)

-REFTEXT-

REFERENCES IN TEXT

Paragraphs (1) and (2) of section 1308 of this title, referred to

in subsec. (b)(1), were repealed by Pub. L. 107-171, title I, Sec.

1603(a), May 13, 2002, 116 Stat. 213.

-COD-

CODIFICATION

Section was enacted as part of the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

AMENDMENTS

2002 - Subsec. (a)(1). Pub. L. 107-171, Sec. 1603(c)(1),

substituted ''section 1308(e)(2)(A) of this title'' for ''section

1308(5)(B)(i) of this title'' and ''section 1308(e)(2)(A)(ii) of

this title'' for ''section 1308(5)(B)(i)(II) of this title''.

Subsec. (b)(1). Pub. L. 107-171, Sec. 1603(c)(1)(B), substituted

''section 1308(e)(2)(A) of this title'' for ''section 1308(5)(B)(i)

of this title''.

Subsec. (b)(2)(B). Pub. L. 107-171, Sec. 1603(c)(1)(A),

substituted ''section 1308(e)(2)(A)(ii) of this title'' for

''section 1308(5)(B)(i)(II) of this title''.

1996 - Subsec. (a)(1). Pub. L. 104-127, Sec. 115(c)(1)(A), struck

out ''under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)''

before ''may not also hold''.

Subsec. (b)(1). Pub. L. 104-127, Sec. 115(c)(1)(B), struck out

''under the Agricultural Act of 1949'' before ''with respect to a

particular''.

1991 - Subsec. (a)(2). Pub. L. 102-237 struck out ''0 to'' after

''less than''.

1990 - Subsec. (a)(2). Pub. L. 101-624, Sec. 1111(f), substituted

''0 to 10 percent'' for ''10 percent''.

Subsec. (b)(6). Pub. L. 101-624, Sec. 1111(d), added par. (6).

1987 - Subsec. (b). Pub. L. 100-203, Sec. 1302, added subsec.

(b).

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-624 effective beginning with 1991 crop

of an agricultural commodity, with provision for prior crops, see

section 1171 of Pub. L. 101-624, set out as a note under section

1421 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Section 1302 of Pub. L. 100-203 provided that the amendment made

by that section is effective beginning with 1989 crops.

EFFECTIVE DATE

Section 1301(a) of Pub. L. 100-203 provided that this section is

effective beginning with 1989 crops.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1308, 1308-2, 1308-4,

7215, 7996 of this title.

-CITE-

7 USC Sec. 1308-2 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308-2. Schemes or devices

-STATUTE-

If the Secretary of Agriculture determines that any person has

adopted a scheme or device to evade, or that has the purpose of

evading, section 1308, 1308-1, or 1308-3 of this title, such person

shall be ineligible to receive farm program payments (as described

in subsections (b), (c), and (d) of section 1308 of this title as

being subject to limitation) applicable to the crop year for which

such scheme or device was adopted and the succeeding crop year.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1001B, as added Pub. L. 100-203,

title I, Sec. 1304(b), Dec. 22, 1987, 101 Stat. 1330-17; Pub. L.

107-171, title I, Sec. 1603(c)(2), May 13, 2002, 116 Stat. 215.)

-COD-

CODIFICATION

Section was enacted as part of the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

AMENDMENTS

2002 - Pub. L. 107-171 substituted ''as described in subsections

(b), (c), and (d) of section 1308 of this title'' for ''as

described in paragraphs (1) and (2) of section 1308 of this

title''.

EFFECTIVE DATE

Section 1304(b) of Pub. L. 100-203 provided that this section is

effective beginning with the 1989 crops.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1308, 1308-4, 7215, 7996

of this title.

-CITE-

7 USC Sec. 1308-3 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308-3. Foreign persons made ineligible for program benefits

-STATUTE-

Notwithstanding any other provision of law:

(a) In general

Any person who is not a citizen of the United States or an alien

lawfully admitted into the United States for permanent residence

under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.)

shall be ineligible to receive any type of loans or payments made

available under title I of the Farm Security and Rural Investment

Act of 2002 (7 U.S.C. 7901 et seq.), the Agricultural Market

Transition Act (7 U.S.C. 7201 et seq.), the Commodity Credit

Corporation Charter Act (15 U.S.C. 714 et seq.), or subtitle D of

title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et

seq.), or under any contract entered into under title XII (16

U.S.C. 3801 et seq.), with respect to any commodity produced, or

land set aside from production, on a farm that is owned or operated

by such person, unless such person is an individual who is

providing land, capital, and a substantial amount of personal labor

in the production of crops on such farm.

(b) Corporations or other entities

For purposes of subsection (a) of this section, a corporation or

other entity shall be considered a person that is ineligible for

production adjustment payments, price support program loans,

payments, or benefits if more than 10 percent of the beneficial

ownership of the entity is held by persons who are not citizens of

the United States or aliens lawfully admitted into the United

States for permanent residence under the Immigration and

Nationality Act (8 U.S.C. 1101 et seq.), unless such persons

provide a substantial amount of personal labor in the production of

crops on such farm. Notwithstanding the foregoing provisions of

this subsection, with respect to an entity that is determined to be

ineligible to receive such payments, loans, or other benefits, the

Secretary may make payments, loans, and other benefits in an amount

determined by the Secretary to be representative of the percentage

interests of the entity that is owned by citizens of the United

States and aliens lawfully admitted into the United States for

permanent residence under the Immigration and Nationality Act.

(c) Prospective application

No person shall become ineligible under this section for

production adjustment payments, price support program loans,

payments or benefits as the result of the production of a crop of

an agricultural commodity planted, or commodity program or

conservation reserve contract entered into, before December 22,

1987.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1001C, as added Pub. L. 100-203,

title I, Sec. 1306, Dec. 22, 1987, 101 Stat. 1330-19; amended Pub.

L. 101-624, title XI, Sec. 1111(b), Nov. 28, 1990, 104 Stat. 3498;

Pub. L. 103-66, title I, Sec. 1101(b)(3)(B), Aug. 10, 1993, 107

Stat. 314; Pub. L. 104-127, title I, Sec. 115(c)(2), Apr. 4, 1996,

110 Stat. 903; Pub. L. 107-171, title I, Sec. 1603(c)(3), May 13,

2002, 116 Stat. 215.)

-REFTEXT-

REFERENCES IN TEXT

The Immigration and Nationality Act, referred to in subsecs. (a)

and (b), is act June 27, 1952, ch. 477, 66 Stat. 163, as amended,

which is classified principally to chapter 12 (Sec. 1101 et seq.)

of Title 8, Aliens and Nationality. For complete classification of

this Act to the Code, see Short Title note set out under section

1101 of Title 8 and Tables.

The Farm Security and Rural Investment Act of 2002, referred to

in subsec. (a), 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 set out under section 7901 of

this title and Tables.

The Agricultural Market Transition Act, referred to in subsec.

(a), is title I of Pub. L. 104-127, Apr. 4, 1996, 110 Stat. 896,

which is classified principally to chapter 100 (Sec. 7201 et seq.)

of this title. 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 Commodity Credit Corporation Charter Act, referred to in

subsec. (a), 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.

The Food Security Act of 1985, referred to in subsec. (a), 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. Subtitle D of title XII of the Act is classified

generally to subchapter IV (Sec. 3830 et seq.) of chapter 58 of

Title 16. 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 the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171 inserted ''title I of the

Farm Security and Rural Investment Act of 2002,'' after ''made

available under''.

1996 - Subsec. (a). Pub. L. 104-127 substituted ''Any person''

for ''For each of the 1991 through 1997 crops, any person'',

substituted ''loans or payments made available under the

Agricultural Market Transition Act,'' for ''production adjustment

payments, price support program loans, payments, or benefits made

available under the Agricultural Act of 1949 (7 U.S.C. 1421 et

seq.),'', and struck out ''during the 1989 through 1997 crop

years'' before '', with respect to any commodity produced''.

1993 - Subsec. (a). Pub. L. 103-66 substituted ''1997'' for

''1995'' in two places.

1990 - Subsec. (a). Pub. L. 101-624 substituted ''1991 through

1995 crops'' for ''1989 and 1990 crops'' and inserted '', or under

any contract entered into under title XII during the 1989 through

1995 crop years,'' after ''(16 U.S.C. 3831 et seq.)''.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-624 effective beginning with 1991 crop

of an agricultural commodity, with provision for prior crops, see

section 1171 of Pub. L. 101-624, set out as a note under section

1421 of this title.

EFFECTIVE DATE

Section 1306 of Pub. L. 100-203 provided that this section is

effective beginning with 1989 crops.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1308-2, 1308-4, 7215,

7996 of this title.

-CITE-

7 USC Sec. 1308-3a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308-3a. Adjusted gross income limitation

-STATUTE-

(a) Definition of average adjusted gross income

(1) In general

In this section, the term ''average adjusted gross income'',

with respect to an individual or entity (for purposes of this

section, as defined in section 1308(e)(2)(A)(ii) of this title),

means the 3-year average of the adjusted gross income or

comparable measure of the individual or entity over the 3

preceding tax years, as determined by the Secretary.

(2) Special rules for certain individuals and entities

In the case of an entity that is not required to file a Federal

income tax return or an individual or entity that did not have

taxable income in 1 or more of the tax years used to determine

the average under paragraph (1), the Secretary shall provide, by

regulation, a method for determining the average adjusted gross

income of the individual or entity for purposes of this section.

(b) Limitation

(1) In general

Notwithstanding any other provision of law, an individual or

entity shall not be eligible to receive any benefit described in

paragraph (2) during a crop year if the average adjusted gross

income of the individual or entity exceeds $2,500,000, unless not

less than 75 percent of the average adjusted gross income of the

individual or entity is derived from farming, ranching, or

forestry operations, as determined by the Secretary.

(2) Covered benefits

Paragraph (1) applies with respect to the following:

(A) A direct payment or counter-cyclical payment under

subtitle A or C of title I of the Farm Security and Rural

Investment Act of 2002 (7 U.S.C. 7911 et seq., 7951 et seq.).

(B) A marketing loan gain or payment described in section

1308(d) of this title.

(C) A payment under any program under title XII of this Act

(16 U.S.C. 3801 et seq.) or title II of the Farm Security and

Rural Investment Act of 2002.

(c) Certification

To comply with the limitation under subsection (b) of this

section, an individual or entity shall provide to the Secretary -

(1) a certification by a certified public accountant or another

third party that is acceptable to the Secretary that the average

adjusted gross income of the individual or entity does not exceed

the limitation specified in that subsection; or

(2) information and documentation regarding the adjusted gross

income of the individual or entity through other procedures

established by the Secretary.

(d) Commensurate reduction

In the case of a benefit described in subsection (b)(2) of this

section made in a crop year to an entity, general partnership, or

joint venture, the amount of the benefit shall be reduced by an

amount that is commensurate with the direct and indirect ownership

interest in the entity, general partnership, or joint venture of

each individual who has an average adjusted gross income in excess

of the limitation specified in subsection (b) of this section for

the average of the 3 preceding crop years.

(e) Effective period

This section shall apply only during the 2003 through 2007 crop

years.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1001D, as added Pub. L. 107-171,

title I, Sec. 1604(2), May 13, 2002, 116 Stat. 215.)

-REFTEXT-

REFERENCES IN TEXT

The Farm Security and Rural Investment Act of 2002, referred to

in subsecs. (b)(2)(A), (C), is Pub. L. 107-171, May 13, 2002, 116

Stat. 134. Subtitles A and C of title I of the Act are classified

generally to subchapters I (Sec. 7911 et seq.) and III (Sec. 7951

et seq.), respectively, of chapter 106 of this title. Title II of

the Act made numerous amendments to Title 16, Conservation. For

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

note set out under section 7901 of this title and Tables.

The Food Security Act of 1985, referred to in subsec. (b)(2)(C),

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 the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

PRIOR PROVISIONS

A prior section 1001D of Pub. L. 99-198 was renumbered section

1001E and is classified to section 1308-4 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7996 of this title; title

19 section 2401e.

-CITE-

7 USC Sec. 1308-4 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308-4. Education program

-STATUTE-

(a) In general

The Secretary shall carry out a payment provisions education

program for appropriate personnel of the Department of Agriculture

and members and other personnel of county and State committees

established under section 590h(b) of title 16, for the purpose of

fostering more effective and uniform application of the payment

limitations and restrictions established under sections 1308

through 1308-3 of this title.

(b) Training

The education program shall provide training to the personnel in

the fair, accurate, and uniform application to individual farming

operations of the provisions of law and regulation relating to the

payment provisions of sections 1308 through 1308-3 of this title.

(c) Administration

The State office of the Agricultural Stabilization and

Conservation Service shall make the initial determination

concerning the application of payment limitations and restrictions

established under sections 1308 through 1308-3 of this title to

farm operations consisting of more than 5 persons, subject to

review by the Secretary.

(d) Commodity Credit Corporation

The Secretary shall carry out the program provided under this

section through the Commodity Credit Corporation.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1001E, formerly Sec. 1001D, as added

Pub. L. 101-624, title XI, Sec. 1111(g), Nov. 28, 1990, 104 Stat.

3499; renumbered Sec. 1001E, Pub. L. 107-171, title I, Sec.

1604(1), May 13, 2002, 116 Stat. 215.)

-COD-

CODIFICATION

Section was enacted as part of the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

PRIOR PROVISIONS

A prior section 1001E of Pub. L. 99-198 was renumbered section

1001F and is classified to section 1308-5 of this title.

EFFECTIVE DATE

Section effective beginning with 1991 crop of an agricultural

commodity, with provision for prior crops, see section 1171 of Pub.

L. 101-624, set out as an Effective Date of 1990 Amendment note

under section 1421 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7996 of this title.

-CITE-

7 USC Sec. 1308-5 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308-5. Treatment of multiyear program contract payments

-STATUTE-

(a) In general

Notwithstanding any other provision of law, in the event of a

transfer of ownership of land (or an ownership interest in land) by

way of devise or descent, the Secretary of Agriculture may, if the

new owner succeeds to the prior owner's contract entered into under

title XII, (FOOTNOTE 1) make payments to the new owner under such

contract without regard to the amount of payments received by the

new owner under any contract entered into under title XII (FOOTNOTE

1) executed prior to such devise or descent.

(FOOTNOTE 1) See References in Text note below.

(b) Limitation

Payments made pursuant to this section shall not exceed the

amount to which the previous owner was entitled to receive under

the terms of the contract at the time of the death of the prior

owner.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1001F, formerly Sec. 1001E, as added

Pub. L. 101-624, title XI, Sec. 1111(h), Nov. 28, 1990, 104 Stat.

3499; renumbered Sec. 1001F, Pub. L. 107-171, title I, Sec.

1604(1), May 13, 2002, 116 Stat. 215.)

-REFTEXT-

REFERENCES IN TEXT

Title XII, referred to in subsec. (a), is title XII of the Food

Security Act of 1985, Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1504,

as amended, popularly known as the ''Sodbuster Law'', which is

classified principally to chapter 58 (Sec. 3801 et seq.) of Title

16, Conservation. For complete classification of title XII to the

Code, see Tables.

-COD-

CODIFICATION

Section was enacted as part of the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

EFFECTIVE DATE

Section effective beginning with 1991 crop of an agricultural

commodity, with provision for prior crops, see section 1171 of Pub.

L. 101-624, set out as an Effective Date of 1990 Amendment note

under section 1421 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7996 of this title.

-CITE-

7 USC Sec. 1308a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1308a. Cost reduction options

-STATUTE-

(a) Authority of Secretary to take action

Notwithstanding any other provision of law, whenever the

Secretary of Agriculture determines that an action authorized under

subsection (c), (d), or (e) of this section will reduce the total

of the direct and indirect costs to the Federal Government of a

commodity program administered by the Secretary without adversely

affecting income to small- and medium-sized producers participating

in such program, the Secretary shall take such action with respect

to the commodity program involved.

(b) Reservation of Secretary's right to reopen or change contracts

if producer agrees

In the announcement of the specific provisions of any commodity

program administered by the Secretary of Agriculture, the Secretary

shall include a statement setting forth which, if any, of the

actions are to be initially included in the program, and a

statement that the Secretary reserves the right to initiate at a

later date any action not previously included but authorized by

this section, including the right to reopen and change a contract

entered into by a producer under the program if the producer

voluntarily agrees to the change.

(c) Purchase from other sources of commodities covered by

nonrecourse loans

When a nonrecourse loan program is in effect for a crop of a

commodity, the Secretary may enter the commercial market to

purchase such commodity if the Secretary determines that the cost

of such purchases plus appropriate carrying charges will probably

be less than the comparable cost of later acquiring the commodity

through defaults on nonrecourse loans under the program.

(d) Reduction in settlement price of nonrecourse loans

When the domestic market price of a commodity for which a

nonrecourse loan program (including the program authorized by

section 1445e of this title) is in effect is insufficient to cover

the principal and accumulated interest on a loan made under such

program, thereby encouraging default by a producer, the Secretary

may provide for settlement of such loan and redemption by the

producer of the commodity securing such loan for less than the

total of the principal and all interest accumulated thereon if the

Secretary determines that such reduction in the settlement price

will yield benefits to the Federal Government due to -

(1) receipt by the Federal Government of a portion rather than

none of the accumulated interest;

(2) avoidance of default; or

(3) elimination of storage, handling, and carrying charges on

the forfeited commodity.

(e) Reopening of production control or loan programs to allow for

payment in kind

When a production control or loan program is in effect for a crop

of a major agricultural commodity, the Secretary may at any time

prior to harvest reopen the program to participating producers for

the purpose of accepting bids from producers for the conversion of

acreage planted to such crop to diverted acres in return for

payment in kind from Commodity Credit Corporation surplus stocks of

the commodity to which the acreage was planted, if the Secretary

determines that (1) changes in domestic or world supply or demand

conditions have substantially changed after announcement of the

program for that crop, and (2) without action to further adjust

production, the Federal Government and producers will be faced with

a burdensome and costly surplus. Such payments in kind shall not

be included within the payment limitation of $50,000 per person

established under section 1308 of this title, but shall be limited

to a total $20,000 per year per producer for any one commodity.

(f) Other authorities of Secretary not affected

The authority provided in this section shall be in addition to,

and not in place of, any authority granted to the Secretary under

any other provision of law.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1009, Dec. 23, 1985, 99 Stat. 1453;

Pub. L. 101-134, Sec. 3, Oct. 30, 1989, 103 Stat. 781.)

-COD-

CODIFICATION

Section was enacted as part of the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

AMENDMENTS

1989 - Subsec. (d). Pub. L. 101-134, in introductory provisions,

inserted ''(including the program authorized by section 1445e of

this title)'' after ''nonrecourse loan program'' and substituted

''benefits'' for ''savings'' and struck out concluding provisions

which read as follows: ''but the Secretary may not reduce the

settlement price to less than the principal due on the loan''.

-CITE-

7 USC Sec. 1309 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1309. Normally planted acreage and target prices

-STATUTE-

(a) Authorized planted acreage for 1982 through 1995 crops of wheat

and feed grains as prerequisite for loan, etc.; eligibility;

determinations; records

Notwithstanding any other provision of law, whenever a set-aside

program is in effect for one or more of the 1982 through 1995 crops

of wheat and feed grains, the Secretary of Agriculture may require,

as a condition of eligibility for loans, purchases, and payments

for such crops under the Agricultural Act of 1949 (7 U.S.C. 1421 et

seq.), that producers not exceed the acreage on the farm normally

planted to crops designated by the Secretary, adjusted as deemed

necessary by the Secretary to be fair and equitable among producers

and reduced by any set-aside or diverted acreage. Such normal crop

acreage for any crop year shall be determined as provided by the

Secretary. The Secretary may require producers participating in the

program to keep such records as the Secretary determines necessary

to assist in making such determination.

(b) Established price payments

Notwithstanding any other provision of law -

(1) Whenever the Secretary, for one or more of the 1982 through

1995 crops of wheat and feed grains, requires that producers not

exceed the acreage on the farm normally planted to crops

designated by the Secretary in accordance with subsection (a) of

this section, the Secretary may increase the established price

payments for any such commodity by such amount (or if there are

no such payments in effect for such crop by providing for

payments in such amount) as the Secretary determines appropriate

to compensate producers for not exceeding the acreage on the farm

normally planted to crops designated by the Secretary and

participation in any required set-aside with respect to such

commodity.

(2) In determining the amount of any payments for any commodity

under this subsection, the Secretary shall take into account

changes in the costs of production resulting from not exceeding

the acreage on the farm normally planted to crops designated by

the Secretary and participation in any required set-aside with

respect to such commodity.

(3) If payments are provided for any commodity under this

subsection, the Secretary may provide for payments for any other

commodity in such amount as the Secretary determines necessary

for effective operation of the program.

(4) The Secretary shall adjust any payments under this

subsection to reflect, in whole or in part, any land diversion

payments for the commodity for which an increase is determined.

(c) Marketing quotas in effect for 1987 through 1995 crops of

wheat; reduction in normally planted acreage as condition

prerequisite for loan, etc.

Notwithstanding any other provision of law, whenever marketing

quotas are in effect for any of the 1987 through 1995 crops of

wheat, the Secretary of Agriculture may require, as a condition of

eligibility for loans, purchases, and payments on any commodity

under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), that

the acreage normally planted to crops designated by the Secretary,

adjusted as considered necessary by the Secretary to be fair and

equitable among producers, shall be reduced by a quantity equal to

-

(1) the acreage that the Secretary determines would normally be

planted to wheat on a farm; minus

(2) the individual farm program acreage for the farm under

section 107B(d)(3)(A) (FOOTNOTE 1) of such Act.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 95-113, title X, Sec. 1001, Sept. 29, 1977, 91 Stat. 950;

Pub. L. 95-279, title I, Sec. 101, May 15, 1978, 92 Stat. 240; Pub.

L. 95-334, title V, Sec. 501(a), Aug. 4, 1978, 92 Stat. 434; Pub.

L. 96-213, Sec. 6, Mar. 18, 1980, 94 Stat. 120; Pub. L. 97-98,

title XI, Sec. 1106, Dec. 22, 1981, 95 Stat. 1265; Pub. L. 99-198,

title X, Sec. 1014, Dec. 23, 1985, 99 Stat. 1456; Pub. L. 101-624,

title XI, Sec. 1141, Nov. 28, 1990, 104 Stat. 3515.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1949, referred to in subsecs. (a) and

(c), 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. For complete classification of this Act to the

Code, see Short Title note set out under section 1421 of this title

and Tables.

Section 107B(d)(3)(A) of such Act, referred to in subsec. (c)(2),

is section 107B(d)(3)(A) of the Agricultural Act of 1949, which was

classified to section 1445b-3a(d)(3)(A) of this title prior to

repeal by Pub. L. 104-127, title I, Sec. 171(b)(2)(D), Apr. 4,

1996, 110 Stat. 938.

-COD-

CODIFICATION

Section was enacted as part of the Food and Agriculture Act of

1977, and not as part of the Agricultural Adjustment Act of 1938

which comprises this chapter.

-MISC3-

AMENDMENTS

1990 - Subsecs. (a), (b)(1), (c). Pub. L. 101-624, Sec. 1141(1),

substituted ''1995'' for ''1990''.

Subsec. (c)(2). Pub. L. 101-624, Sec. 1141(2), substituted

''section 107B(d)(3)(A)'' for ''section 107D(d)(3)(A)''.

1985 - Subsecs. (a), (b)(1). Pub. L. 99-198 substituted ''1982

through 1990'' for ''1982 through 1985''.

Subsec. (c). Pub. L. 99-198 added subsec. (c).

1981 - Subsec. (a). Pub. L. 97-98 substituted provision

authorizing the Secretary, whenever a set-aside program is in

effect for one or more of the 1982 through 1985 crops of wheat and

feed grains, to require as a condition of eligibility for loans,

purchases, and payments for such crops that the producers not

exceed the acreage on the farm normally planted to crops designated

by the Secretary and permitting the Secretary to require producers

participating in the program to keep records necessary to assist

the Secretary in determining normal crop acreage for any crop year

for provision authorizing the Secretary, effective for one or more

of the 1980 and 1981 crops of wheat, feed grains, upland cotton,

and rice, to require as a condition of eligibility for loans,

purchases, and payments that the producers not exceed the acreage

on the farm normally planted to crops designated by the Secretary.

Subsec. (b). Pub. L. 97-98 substituted provision relating to

established price increase for one or more of the 1982 through 1985

crops of wheat and feed grains for provision relating to

established price increase for one or more of the 1980 and 1981

crops of wheat, feed grains, upland cotton, and rice.

Subsec. (c). Pub. L. 97-98 struck out subsec. (c) which related

to loans, purchases, and payments for producers of the 1980 crop of

any commodity who exceeded the authorized acreage.

1980 - Subsec. (a). Pub. L. 96-213 amended subsec. (a) generally,

temporarily substituting provisions relating to requiring producers

not to exceed the acreage on the farm normally planted to

designated crops, as reduced, for the 1980 and 1981 crops of wheat,

feed grains, upland cotton, and rice, for provisions relating to

reduction of acreage normally planted to designated crops by the

acreage set-aside or diversion for the 1978 through 1981 crops of

wheat, feed grains, upland cotton, and rice. See Effective and

Termination Dates of 1980 Amendment note below.

Subsec. (b). Pub. L. 96-213 amended subsec. (b) generally,

temporarily substituting provisions relating to increases of the

established price as compensation to producers for not exceeding

the acreage in accordance with subsection (a) and participating in

set-asides for 1980 and 1980 crops for provisions relating to

increases of the established prices to compensate producers for

participation in set-asides for 1978 through 1981 crops. See

Effective and Termination Dates of 1980 Amendment note below.

Subsec. (c). Pub. L. 96-213, in amending section generally,

temporarily added subsec. (c). See Effective and Termination Dates

of 1980 Amendment note below.

1978 - Subsec. (b). Pub. L. 95-334 added applicability to rice.

Pub. L. 95-279 designated existing provisions as subsec. (a) and

added subsec. (b).

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-624 effective beginning with 1991 crop

of an agricultural commodity, with provision for prior crops, see

section 1171 of Pub. L. 101-624, set out as a note under section

1421 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section

1801 of Pub. L. 97-98, set out as an Effective Date note under

section 4301 of this title.

EFFECTIVE AND TERMINATION DATES OF 1980 AMENDMENT

Section 6 of Pub. L. 96-213 provided that the amendment made by

that section is effective for 1980 and 1981 crops.

EFFECTIVE DATE OF 1978 AMENDMENTS

Section 501(b) of Pub. L. 95-334 provided that: ''This section

(amending this section) shall become effective October 1, 1978, and

any producers who, prior to such date, receive payments on the 1978

crop of rice as computed under the Agricultural Act of 1949 (see

Short Title note set out under section 1421 of this title), as

amended by the Food and Agriculture Act of 1977 (see Short Title of

1977 Amendment note set out under section 1281 of this title), may

elect after September 30, 1978, to receive payments as computed

under section 1001(b) of the Food and Agriculture Act of 1977, as

amended by this section.''

Section 103 of title I of Pub. L. 95-279 provided that:

''Sections 101 and 102 (amending this section and section 1444 of

this title) of this title shall become effective October 1, 1978,

and any producers who, prior to such date, receive loans and

payments on the 1978 crop of the commodity as computed under the

Agricultural Act of 1949 (see Short Title note set out under

section 1421 of this title), as amended by the Food and Agriculture

Act of 1977 (see Short Title of 1977 Amendment note set out under

section 1281 of this title) may elect after September 30, 1978, to

receive loans and payments as computed under this title.''

EFFECTIVE DATE

Section effective Oct. 1, 1977, see section 1901 of Pub. L.

95-113, set out as an Effective Date of 1977 Amendment note under

section 1307 of this title.

-CITE-

7 USC Sec. 1310 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1310. American agriculture protection program

-STATUTE-

(a) Determination of short supply; suspension of commercial export

sales; parity price

Notwithstanding any other provision of law, whenever the

President or any other member of the executive branch of the

Federal Government causes to be suspended, based upon a

determination of short supply, the commercial export sales of any

commodity, as defined in subsection (c) of this section, to any

country or area with which the United States otherwise continues

commercial trade, the Secretary of Agriculture shall, on the day

the suspension is initiated, set the loan level for such commodity

under the Agricultural Act of 1949, as amended (7 U.S.C. 1421 et

seq.), if a loan program is in effect for the commodity, at 90 per

centum of the parity price for the commodity, as such parity price

is determined on the day the suspension is initiated.

(b) Duration of loan level

Any loan level established pursuant to subsection (a) of this

section shall remain in effect as long as the suspension of

commercial export sales described in subsection (a) of this section

remains in effect.

(c) ''Commodity'' defined

For purposes of this section, the term ''commodity'' shall

include any of the following: wheat, corn, grain sorghum, soybeans,

oats, rye, barley, rice, flaxseed, and cotton.

-SOURCE-

(Pub. L. 95-113, title X, Sec. 1002, Sept. 29, 1977, 91 Stat. 950.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1949, referred to in subsec. (a), 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. 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 was enacted as part of the Food and Agriculture Act of

1977, and not as part of the Agricultural Adjustment Act of 1938

which comprises this chapter.

-MISC3-

EFFECTIVE DATE

Section effective Oct. 1, 1977, see section 1901 of Pub. L.

95-113, set out as an Effective Date of 1977 Amendment note under

section 1307 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5677 of this title.

-CITE-

7 USC Sec. 1310a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part A - Definitions, Loans, Parity Payments, and Consumer

Safeguards

-HEAD-

Sec. 1310a. Normal supply of commodity for 1986 through 1995 crops

-STATUTE-

Notwithstanding any other provision of law, if the Secretary of

Agriculture determines that the supply of wheat, corn, upland

cotton, or rice for the marketing year for any of the 1986 through

1995 crops of such commodity is not likely to be excessive and that

program measures to reduce or control the planted acreage of the

crop are not necessary, such a decision shall constitute a

determination that the total supply of the commodity does not

exceed the normal supply and no determination to the contrary shall

be made by the Secretary with respect to such commodity for such

marketing year.

-SOURCE-

(Pub. L. 99-198, title X, Sec. 1019, Dec. 23, 1985, 99 Stat. 1459;

Pub. L. 101-624, title XI, Sec. 1142, Nov. 28, 1990, 104 Stat.

3515.)

-COD-

CODIFICATION

Section was enacted as part of the Food Security Act of 1985, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

PRIOR PROVISIONS

A prior section 1310a, Pub. L. 97-98, title XI, Sec. 1107, Dec.

22, 1981, 95 Stat. 1266, provided for a normal supply of

commodities for the 1982 through 1985 crops.

AMENDMENTS

1990 - Pub. L. 101-624 substituted ''1995'' for ''1990''.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-624 effective beginning with 1991 crop

of an agricultural commodity, with provision for prior crops, see

section 1171 of Pub. L. 101-624, set out as a note under section

1421 of this title.

-CITE-

7 USC Part B - Marketing Quotas 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

.

-HEAD-

Part B - Marketing Quotas

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1361, 1372 of this title.

-CITE-

7 USC subpart i - marketing quotas - tobacco 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

.

-HEAD-

subpart i - marketing quotas - tobacco

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in section 7994 of this title.

-CITE-

7 USC Sec. 1311 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1311. Legislative findings

-STATUTE-

(a) The marketing of tobacco constitutes one of the greatest

basic industries of the United States with ramifying activities

which directly affect interstate and foreign commerce at every

point, and stable conditions therein are necessary to the general

welfare. Tobacco produced for market is sold on a Nation-wide

market and, with its products, moves almost wholly in interstate

and foreign commerce from the producer to the ultimate consumer.

The farmers producing such commodity are subject in their

operations to uncontrollable natural causes, are widely scattered

throughout the Nation, in many cases such farmers carry on their

farming operations on borrowed money or leased lands, and are not

so situated as to be able to organize effectively, as can labor and

industry through unions and corporations enjoying Government

protection and sanction. For these reasons among others, the

farmers are unable without Federal assistance to control

effectively the orderly marketing of such commodity with the result

that abnormally excessive supplies thereof are produced and dumped

indiscriminately on the Nation-wide market.

(b) The disorderly marketing of such abnormally excessive

supplies affects, burdens, and obstructs interstate and foreign

commerce by (1) materially affecting the volume of such commodity

marketed therein, (2) disrupting the orderly marketing of such

commodity therein, (3) reducing the price for such commodity with

consequent injury and destruction of interstate and foreign

commerce in such commodity, and (4) causing a disparity between the

prices for such commodity in interstate and foreign commerce and

industrial products therein, with a consequent diminution of the

volume of interstate and foreign commerce in industrial products.

(c) Whenever an abnormally excessive supply of tobacco exists,

the marketing of such commodity by the producers thereof directly

and substantially affects interstate and foreign commerce in such

commodity and its products, and the operation of the provisions of

this subpart becomes necessary and appropriate in order to promote,

foster, and maintain an orderly flow of such supply in interstate

and foreign commerce.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 311, 52 Stat. 45.)

-CITE-

7 USC Sec. 1312 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1312. National marketing quota

-STATUTE-

(a) Proclamation of quota

The Secretary shall, not later than December 1 of any marketing

year with respect to flue-cured tobacco, February 1 of any

marketing year with respect to Burley tobacco, and March 1 of any

marketing year with respect to other kinds of tobacco, proclaim a

national marketing quota for any kind of tobacco for each of the

next three succeeding marketing years whenever he determines with

respect to such kind of tobacco -

(1) that a national marketing quota has not previously been

proclaimed and the total supply as of the beginning of such

marketing year exceeds the reserve supply level therefor;

(2) that such marketing year is the last year of three

consecutive years for which marketing quotas previously

proclaimed will be in effect;

(3) that amendments have been made in provisions for

establishing farm acreage allotments which will cause material

revision of such allotments before the end of the period for

which quotas are in effect; or

(4) that a marketing quota previously proclaimed for such

marketing year is not in effect because of disapproval by

producers in a referendum held pursuant to subsection (c) of this

section: Provided, That if such producers have disapproved

national marketing quotas in referenda held in three successive

years subsequent to 1952, thereafter a national marketing quota

shall not be proclaimed hereunder which would be in effect for

any marketing year within the three-year period for which

national marketing quotas previously proclaimed were disapproved

by producers in a referendum, unless prior to November 10 of the

marketing year one-fourth or more of the farmers engaged in the

production of the crop of tobacco harvested in the calendar year

in which such marketing year begins petition the Secretary, in

accordance with such regulations as he may prescribe, to proclaim

a national marketing quota for each of the next three succeeding

marketing years.

(b) Announcement of amount of quota

The Secretary shall also determine and announce, not later than

the first day of December with respect to flue-cured tobacco, not

later than the first day of February with respect to Burley

tobacco, and not later than the first day of March with respect to

other kinds of tobacco, the amount of the national marketing quota

proclaimed pursuant to subsection (a) of this section which is in

effect for the next marketing year in terms of the total quantity

of tobacco which may be marketed which will make available during

such marketing year a supply of tobacco equal to the reserve supply

level. The amount of the national marketing quota so announced

may, not later than the following March 1, be increased by not more

than 20 per centum if the Secretary determines that such increase

is necessary in order to meet market demands or to avoid undue

restrictions of marketings in adjusting the total supply to the

reserve supply level.

(c) Referendum on quotas

Within thirty days after the proclamation of national marketing

quotas under subsection (a) of this section, the Secretary shall

conduct a referendum of farmers engaged in the production of the

crop of tobacco harvested immediately prior to the holding of the

referendum to determine whether such farmers are in favor of or

opposed to such quotas for the next three succeeding marketing

years. If more than one-third of the farmers voting oppose the

national marketing quotas, such results shall be proclaimed by the

Secretary and the national marketing quotas so proclaimed shall not

be in effect but such results shall in no wise affect or limit the

subsequent proclamation and submission to a referendum, as

otherwise provided in this section, of a national marketing quota.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 312, 52 Stat. 46; Mar. 26,

1938, ch. 54, 52 Stat. 120; Aug. 7, 1939, ch. 562, 563, 53 Stat.

1261; June 13, 1940, ch. 360, Sec. 2, 3, 54 Stat. 392; Nov. 22,

1940, ch. 914, Sec. 2, 5, 54 Stat. 1209, 1210; Feb. 28, 1942, ch.

123, 56 Stat. 121; July 3, 1948, ch. 827, title II, Sec. 208, 62

Stat. 1257; Aug. 9, 1955, ch. 639, 69 Stat. 557; June 22, 1956, ch.

427, 70 Stat. 330; Pub. L. 99-272, title I, Sec. 1104(a), Apr. 7,

1986, 100 Stat. 89.)

-MISC1-

AMENDMENTS

1986 - Subsec. (a). Pub. L. 99-272, Sec. 1104(a)(1), substituted

''February 1 of any marketing year with respect to Burley tobacco,

and March 1 of any marketing year with respect to other kinds of

tobacco'' for ''and February 1 of any marketing year with respect

to other kinds of tobacco''.

Subsec. (b). Pub. L. 99-272, Sec. 1104(a)(2), substituted ''not

later than the first day of February with respect to Burley

tobacco, and not later than the first day of March with respect to

other kinds of tobacco'' for ''and not later than the first day of

February with respect to other kinds of tobacco''.

1956 - Subsec. (a). Act June 22, 1956, inserted ''with respect to

flue-cured tobacco, and February 1 of any marketing year with

respect to other kinds of tobacco'' after ''December 1 of any

marketing year''.

Subsec. (b). Act June 22, 1956, substituted ''not later than the

first day of December with respect to flue-cured tobacco and not

later than the first day of February with respect to other kinds of

tobacco'' for ''prior to the first day of December''.

1955 - Subsec. (a). Act Aug. 9, 1955, restated and amended

provisions generally to provide that quotas shall not be proclaimed

oftener than once every 3 years for any kind of tobacco for which

producers have disapproved marketing quotas in 3 successive years

subsequent to 1952 (unless at least one-fourth of the producers of

such tobacco petition the Secretary to proclaim quotas).

Subsec. (b). Act Aug. 9, 1955, amended and substituted former

provisions of subsec. (a) as to announcement of quota for former

provisions of this subsec. as to referendum on quotas.

Subsec. (c). Act Aug. 9, 1955, provided that referendum on quotas

which formerly appeared in subsec. (b) should be determinative for

the next three succeeding years, rather than each succeeding year,

and eliminated provisions as to submission of question of whether

tobacco quotas would be favored for a period of three years.

1948 - Subsec. (a). Act July 3, 1948, inserted proviso at end of

first sentence.

1942 - Subsec. (a). Act Feb. 28, 1942, substituted ''the

following March 1'' for ''December 31'' in last sentence.

1940 - Subsec. (a). Act June 13, 1940, substituted ''20'' for

''10'' in last sentence and inserted last clause.

Subsecs. (b) to (f). Act Nov. 22, 1940, struck out subsecs. (b),

(d), (e), and (f), struck out second sentence of subsec. (c) which

related to referendum on burley, fire-cured, and dark air-cured

tobacco, and redesignated subsec. (c) as (b).

Act June 13, 1940, amended subsec. (c) by inserting provisions

relating to referendum on tobacco marketing quotas for three-year

period.

1939 - Subsec. (a). Act Aug. 7, 1939, amended first sentence and

inserted last sentence.

1938 - Subsec. (f). Act Mar. 26, 1938, added subsec. (f).

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

RULEMAKING PROCEDURES

Secretary of Agriculture to implement amendments by Pub. L.

99-272 without regard to provisions requiring notice and other

procedures for public participation in rulemaking contained in

section 553 of Title 5, Government Organization and Employees, or

in any other directive of the Secretary, see section 1108(c) of

Pub. L. 99-272, set out as a note under section 1301 of this title.

BURLEY TOBACCO MARKETING YEARS 1971, 1972, AND 1973

Pub. L. 92-10, Sec. 4, Apr. 14, 1971, 85 Stat. 27, provided that

any action taken by the Secretary pursuant to section 312 of the

Agricultural Adjustment Act of 1938, as amended (this section), for

burley tobacco for any of the three marketing years beginning

October 1, 1971, prior to Apr. 14, 1971, was to be of no effect.

DEFERMENT OF PROCLAMATION OF MARKETING QUOTAS FOR BURLEY TOBACCO

Pub. L. 92-1, Mar. 1, 1971, 85 Stat. 3, provided that,

notwithstanding any other provision of law, the Secretary of

Agriculture could defer any proclamation under section 312 of the

Agricultural Adjustment Act of 1938, as amended (this section),

with respect to national marketing quotas for burley tobacco for

the three marketing years beginning October 1, 1971, until the date

he determined was necessary to permit growers to be notified of

their farm marketing quotas and the referendum to be held prior to

normal planting time.

EXTENSION OF TIME FOR PROCLAMATION OF MARKETING QUOTAS FOR THREE

MARKETING YEARS BEGINNING OCT. 1, 1971

Pub. L. 91-641, Dec. 31, 1970, 84 Stat. 1879, authorized the

Secretary of Agriculture to defer until March 1, 1971, any

proclamation under this section with respect to national marketing

quotas for burley tobacco for the three marketing years beginning

October 1, 1971.

FIRE-CURED, DARK AIR-CURED, AND VIRGINIA SUN-CURED TOBACCO; AMOUNT

OF PRICE SUPPORT

Section 2 of Joint Res. July 28, 1945, ch. 330, 59 Stat. 506, as

amended by Pub. L. 85-92, Sec. 2, July 10, 1957, 71 Stat. 284,

which authorized the Commodity Credit Corporation to make loans or

other price support available beginning with the 1945 crop, was

repealed by Pub. L. 86-389, Sec. 2, Feb. 20, 1960, 74 Stat. 7. See

section 1445 of this title.

1956 MARYLAND ALLOTMENTS

Joint Res. Mar. 2, 1956, ch. 80, 70 Stat. 35, provided for

increase and redetermination of 1956 Maryland tobacco acreage

allotments.

1956 FIRE-CURED AND DARK AIR-CURED TOBACCO ALLOTMENTS

Joint Res. Mar. 2, 1956, ch. 79, 70 Stat. 34, provided for

increase and redetermination of 1956 fire-cured and dark air-cured

tobacco acreage allotments.

1956 BURLEY ALLOTMENTS

Joint Res. Mar. 2, 1956, ch. 78, 70 Stat. 34, provided for

increase and redetermination of 1956 acreage allotments of burley

tobacco.

1955-1956 BURLEY TOBACCO QUOTA

Section 1 of act Mar. 31, 1955, ch. 21, 69 Stat. 23, provided for

redetermination of national marketing quota for burley tobacco for

the 1955-1956 marketing year.

QUOTAS FOR BURLEY AND FLUE-CURED TOBACCO FOR MARKETING YEARS

1944-45 THROUGH 1947-48

Joint Res. July 7, 1943, ch. 195, 57 Stat. 387, as amended by

Joint Res. Mar. 31, 1944, ch. 149, 58 Stat. 136; act Feb. 19, 1946,

ch. 31, Sec. 1, 60 Stat. 21, provided for quotas for burley and

flue-cured tobacco for marketing years 1944-45 through 1947-48. The

second par. of section 1 of said act Feb. 19, 1946, provided that

amendment made by such section to Joint Res. July 7, 1943, should

not apply to flue-cured tobacco for 1946-47 marketing year.

PROCLAMATIONS AFFIRMED

Act Apr. 7, 1938, ch. 107, Sec. 19, 52 Stat. 205, provided that

proclamations issued by Secretary of Agriculture under sections

1312(a), 1327, 1328, and 1345 of this title should be effective as

provided in those sections, and no provision of any amendment made

by that act should be construed as requiring any further action

under section 1312(c) or 1347 of this title with respect to

marketing years beginning in 1938.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1301, 1313, 1314c, 1314e,

1314f of this title.

-CITE-

7 USC Sec. 1313 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1313. Apportionment of national marketing quota

-STATUTE-

(a) Apportionment among States

The national marketing quota for tobacco established pursuant to

the provisions of section 1312 of this title, less the amount to be

allotted under subsection (c) of this section, shall be apportioned

by the Secretary among the several States on the basis of the total

production of tobacco in each State during the five calendar years

immediately preceding the calendar year in which the quota is

proclaimed (plus, in applicable years, the normal production on the

acreage diverted under previous agricultural adjustment and

conservation programs), with such adjustments as are determined to

be necessary to make correction for abnormal conditions of

production, for small farms, and for trends in production, giving

due consideration to seed bed and other plant diseases during such

five-year period. Notwithstanding any other provision of this

section and section 1312 of this title, except the provisions in

subsection (g) of this section relating to reduction of allotments,

for any of the three marketing years, 1941-1942 to 1943-1944, in

which a national marketing quota is in effect for burley or

flue-cured tobacco, such national marketing quota shall not be

reduced below the 1940-1941 national marketing quota by more than

10 per centum and the farm-acreage allotments (other than

allotments established in each year under subsection (g) of this

section for farms on which no tobacco was produced in the last five

years) shall be determined by increasing or decreasing the

farm-acreage allotments established in the last preceding year in

which marketing quotas were in effect in the same ratio as such

national marketing quota is increased or decreased above or below

the last preceding national marketing quota: Provided, That in the

case of flue-cured tobacco no allotment shall be decreased below

the 1940 allotment if such allotment was two acres or less, and in

the case of burley tobacco no allotment shall be decreased below

the 1939 allotment if such allotment was one-half acre or less, or

below the 1940 allotment if such allotment was over one-half acre

and not over one acre: And provided further, That an additional

acreage not in excess of 2 per centum of the total acreage allotted

to all farms in each State in 1940 shall be allotted by the local

committees, without regard to the ratio aforesaid, among farms in

the State in accordance with regulations prescribed by the

Secretary so as to establish allotments which the committees find

will be fair and equitable in relation to the past acreage of

tobacco (harvested and diverted); land, labor, and equipment

available for the production of tobacco; and crop-rotation

practices: And provided further, That the burley tobacco acreage

allotment which would otherwise be established for any farm having

a burley acreage allotment in 1942 shall not be less than one-half

acre, and the acreage required for apportionment under this proviso

shall be in addition to the National and State acreage allotments.

(b) Allotment of quota among producing farms

The Secretary shall provide, through the local committees, for

the allotment of the marketing quota for any State among the farms

on which tobacco is produced, on the basis of the following: Past

marketing of tobacco, making due allowance for drought, flood,

hail, other abnormal weather conditions, plant bed, and other

diseases; land, labor, and equipment available for the production

of tobacco; crop-rotation practices; and the soil and other

physical factors affecting the production of tobacco: Provided,

That, except for farms on which for the first time in five years

tobacco is produced to be marketed in the marketing year for which

the quota is effective, the marketing quota for any farm shall not

be less than the smaller of either (1) three thousand two hundred

pounds, in the case of flue-cured tobacco, and two thousand four

hundred pounds, in the case of other kinds of tobacco, or (2) the

average tobacco production for the farm during the preceding three

years, plus the average normal production of any tobacco acreage

diverted under agricultural adjustment and conservation programs

during such preceding three years.

(c) Allotment to previous nonproducing farms and small farms

The Secretary shall provide, through local committees, for the

allotment of not in excess of 5 per centum of the national

marketing quota (1) to farms in any State whether it has a State

quota or not on which for the first time in five years tobacco is

produced to be marketed in the year for which the quota is

effective and (2) for further increase of allotments to small farms

pursuant to the proviso in subsection (b) of this section on the

basis of the following: Land, labor, and equipment available for

the production of tobacco; crop-rotation practices; and the soil

and other physical factors affecting the production of tobacco:

Provided, That farm marketing quotas established pursuant to this

subsection for farms on which tobacco is produced for the first

time in five years shall not exceed 75 per centum of the farm

marketing quotas established pursuant to subsection (b) of this

section for farms which are similar with respect to the following:

Land, labor, and equipment available for the production of tobacco,

crop-rotation practices, and the soil and other physical factors

affecting the production of tobacco.

(d) Transfer of farm marketing quotas

Farm marketing quotas may be transferred only in such manner and

subject to such conditions as the Secretary may prescribe by

regulations.

(e) Quota for 1938; minimum State allotments

In case of flue-cured tobacco, the national quota for 1938 is

increased by a number of pounds required to provide for each State

in addition to the State poundage allotment a poundage not in

excess of 4 per centum of the allotment which shall be apportioned

in amounts which the Secretary determines to be fair and reasonable

to farms in the State receiving allotments under this chapter which

the Secretary determines are inadequate in view of past production

of tobacco, and for each year by a number of pounds sufficient to

assure that any State receiving a State poundage allotment of

flue-cured tobacco shall receive a minimum State poundage allotment

of flue-cured tobacco equal to the average national yield for the

preceding five years of five hundred acres of such tobacco.

(f) Increase of 1938 quota

In the case of fire-cured and dark air-cured and burley tobacco,

the national quota for 1938 is increased by a number of pounds

required to provide for each State in addition to the State

poundage allotment a poundage not in excess of 2 per centum of the

allotment which shall be apportioned in amounts which the Secretary

determines to be fair and reasonable to farms in the State

receiving allotments under this section which the Secretary

determines are inadequate in view of past production of tobacco.

(g) Conversion of national marketing quota into national acreage

allotment

Notwithstanding any other provision of this section, the

Secretary may convert the national marketing quota into a national

acreage allotment by dividing the national marketing quota by the

national average yield for the five years immediately preceding the

year in which the national marketing quota is proclaimed, and may

apportion the national acreage allotment, less a reserve of not to

exceed 1 per centum thereof for new farms, for making corrections

in old farm acreage allotments, and for adjusting inequities in old

farm acreage allotments, through the local committees among farms

on the basis of the factors set forth in subsection (b) of this

section, using past farm acreage and past farm acreage allotments

for tobacco in lieu of past marketing of tobacco; and the Secretary

on the basis of the factors set forth in subsection (c) of this

section and the past tobacco experience of the farm operator, shall

through the local committees allot that portion of the national

acreage allotment reserved for new farms among farms on which no

tobacco was produced or considered produced during the last five

years. Any acreage of tobacco harvested in excess of the farm

acreage allotment for the year 1955, or any subsequent crop shall

not be taken into account in establishing State and farm acreage

allotments. Except for farms last mentioned or a farm operated,

controlled, or directed by a person who also operates, controls, or

directs another farm on which tobacco is produced, the farm-acreage

allotment shall be increased by the smaller of (1) 20 per centum of

such allotment or (2) the percentage by which the normal yield of

such allotment (as determined through the local committees in

accordance with regulations prescribed by the Secretary) is less

than three thousand two hundred pounds, in the case of flue-cured

tobacco, and two thousand four hundred pounds in the case of other

kinds of tobacco: Provided, That the normal yield of the estimated

number of acres so added to farm acreage allotments in any State

shall be considered as a part of the State marketing quota in

applying the proviso in subsection (a) of this section. The actual

production of the acreage allotment established for a farm pursuant

to this subsection shall be the amount of the farm marketing

quota. If any amount of tobacco shall be marketed as having been

produced on the acreage allotment for any farm which in fact was

produced on a different farm, the acreage allotments next

established for both such farms shall be reduced by that percentage

which such amount was of the respective farm marketing quota,

except that such reduction for any such farm shall not be made if

the Secretary through the local committees finds that no person

connected with such farm caused, aided, or acquiesced in such

marketing; and if proof of the disposition of any amount of tobacco

is not furnished as required by the Secretary or if any producer on

the farm files, or aids or acquiesces in the filing of, any false

report with respect to the acreage of tobacco grown on the farm

required by regulations issued pursuant to this chapter, the

acreage allotment next established for the farm on which such

tobacco is produced shall be reduced by a percentage similarly

computed. If in any calendar year more than one crop of tobacco is

grown from (1) the same tobacco plants or (2) different tobacco

plants, and is harvested for marketing from the same acreage of a

farm, the acreage allotment next established for such farm shall be

reduced by an amount equivalent to the acreage from which more than

one crop of tobacco has been so grown and harvested.

(h) Repealed. Feb. 16, 1938, ch. 30, title III, Sec. 378(d), as

added Pub. L. 85-835, title V, Sec. 501, Aug. 28, 1958, 72

Stat. 996

(i) Increase of marketing quotas and acreage allotments to meet

demand

Notwithstanding any other provision of this chapter, whenever

after investigation the Secretary determines with respect to any

kind of tobacco that a substantial difference exists in the usage

or market outlets for any one or more of the types comprising such

kind of tobacco and that the quantity of tobacco of such type or

types to be produced under the marketing quotas and acreage

allotments established pursuant to this section would not be

sufficient to provide an adequate supply for estimated market

demands and carry-over requirements for such type or types of

tobacco, the Secretary shall increase the marketing quotas and

acreage allotments for farms producing such type or types of

tobacco in the preceding year to the extent necessary to make

available a supply of such type or types of tobacco adequate to

meet such demands and carry-over requirements. The increases in

farm marketing quotas and acreage allotments shall be made on the

basis of the production of such type or types of tobacco during the

period of years considered in establishing farm marketing quotas

and acreage allotments for such kind of tobacco. The additional

production authorized by this subsection shall be in addition to

the national marketing quota established for such kind of tobacco

pursuant to section 1312 of this title. The increase in acreage

under this subsection shall not be considered in establishing

future State or farm acreage allotments.

(j) Tobacco acreage allotments for 1956, 1957, and 1958

In establishing farm acreage allotments for burley tobacco crops

for the years 1956, 1957, and 1958 the acreage allotment for any

farm which has not been retired from agricultural production shall

not be reduced below the acreage allotment which would otherwise be

established because the harvested acreage was less than the

allotted acreage unless the acreage harvested was less than 50 per

centum of the allotted acreage in each of the preceding five years,

in which event it shall not be reduced for such reason to less than

the largest acreage harvested in any year in such five-year period.

(j) (FOOTNOTE 1) Old farm tobacco acreage allotment

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

The production of tobacco on a farm in 1955 or any subsequent

year for which no farm acreage allotment was established shall not

make the farm eligible for an allotment as an old farm under

subsections (b) and (g) of this section or section 1314c of this

title: Provided, however, That by reason of such production the

farm need not be considered as ineligible for a new farm allotment

under subsections (c) and (g) of this section or section 1314c of

this title, but such production shall not be deemed past tobacco

experience for any producer on the farm.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 313, 52 Stat. 47; Apr. 7,

1938, ch. 107, Sec. 5, 52 Stat. 202; May 31, 1938, ch. 292, Sec. 2,

52 Stat. 586; Aug. 7, 1939, ch. 564, 53 Stat. 1261; June 13, 1940,

ch. 360, Sec. 4, 54 Stat. 392; Feb. 6, 1942, ch. 44, Sec. 1, 56

Stat. 51; Apr. 29, 1943, ch. 80, 57 Stat. 69; Oct. 17, 1951, ch.

511, 65 Stat. 422; Mar. 31, 1955, ch. 21, Sec. 3, 4, 69 Stat. 24;

Aug. 11, 1955, ch. 789, 69 Stat. 670; Aug. 11, 1955, ch. 799, 69

Stat. 684; Pub. L. 85-489, Sec. 1, July 2, 1958, 72 Stat. 291; Feb.

16, 1938, ch. 30, title III, Sec. 378(d), as added Pub. L. 85-835,

title V, Sec. 501, Aug. 28, 1958, 72 Stat. 995; Pub. L. 89-12, Sec.

2, Apr. 16, 1965, 79 Stat. 72; Pub. L. 90-106, Oct. 12, 1967, 81

Stat. 275.)

-MISC1-

AMENDMENTS

1967 - Subsec. (g). Pub. L. 90-106 changed manner in which

tobacco acreage allotments are computed by providing for conversion

of national marketing quota for tobacco into a national acreage

allotment to be apportioned among farms instead of apportioning the

national quota among the States, based on past State production,

and then converting into State acreage allotments for apportionment

among farms.

1965 - Subsec. (j). Pub. L. 89-12 inserted in old farm tobacco

acreage allotment provisions reference to section 1314c of this

title in two places.

1958 - Subsec. (g). Pub. L. 85-489 required reduction of acreage

allotment if in any calendar year more than one crop of tobacco is

grown from same tobacco plants or different tobacco plants, and is

harvested for marketing from same acreage of a farm.

Subsec. (h). Act Feb. 16, 1938, Sec. 378(d), as added by Pub. L.

85-835, repealed subsec. (h) which related to adjustment of

allotment upon acquisition of part of farms by United States for

defense.

1955 - Subsec. (g). Act Mar. 31, 1955, Sec. 3, 4, provided that

excess tobacco acreage for years 1955 and thereafter should not be

taken into consideration as part of farm history in establishing

future acreage allotments, and that if a producer makes a false

report of acreage of tobacco grown on his farm, the amount of

misstatement should be deducted from his next year's allotment.

Subsec. (j). Act Aug. 11, 1955, ch. 789, added subsec. (j)

relating to tobacco acreage allotments for 1956, 1957, and 1958.

Act Aug. 11, 1955, ch. 799, added subsec. (j) relating to old

farm tobacco acreage allotment.

1951 - Subsec. (i). Act Oct. 17, 1951, added subsec. (i).

1943 - Subsec. (a). Act Apr. 29, 1943, inserted proviso beginning

''That the Burley tobacco acreage''.

1942 - Subsec. (h). Act Feb. 6, 1942, added subsec. (h).

1940 - Subsec. (a). Act June 13, 1940, inserted all following

first sentence.

1939 - Subsec. (g). Act. Aug. 7, 1939, added subsec. (g).

1938 - Subsec. (a). Act Apr. 7, 1938, struck out ''net''.

Subsec. (e). Act May 31, 1938, substituted ''4 per centum'' for

''2 per centum''.

Act Apr. 7, 1938, added subsec. (e).

Subsec. (f). Act May 31, 1938, added subsec. (f).

EFFECTIVE DATE OF 1958 AMENDMENT

Section 2 of Pub. L. 85-489 provided that: ''The amendment made

by this Act (amending this section) shall become effective

beginning with the 1958 crop of tobacco''.

SAVINGS PROVISION

Transfer or reassignment of allotment as remaining in effect and

ineligibility of displaced farm owner for additional allotment

notwithstanding repeal of subsec. (h), see note set out under

section 1378 of this title.

INCREASE OF MARKETING QUOTAS AND ACREAGE ALLOTMENTS TO MEET DEMAND

UNAFFECTED BY ACREAGE-POUNDAGE MARKETING QUOTAS AND PRICE SUPPORT

PROVISIONS

Authority or responsibility of Secretary of Agriculture under

subsec. (i) of this section with respect to increasing allotments

or quotas for farms producing certain types of tobacco unaffected

by acreage-poundage quotas and price support provisions, see note

set out under section 1314c of this title.

FIRE-CURED, DARK AIR-CURED AND VIRGINIA SUN-CURED TOBACCO

Amount of price support for fire-cured, dark air-cured, and

Virginia sun-cured tobacco, see note set out under section 1312 of

this title.

APPORTIONMENT OF BURLEY ACREAGE ALLOTMENT

Joint Res. Mar. 31, 1944, ch. 149, 58 Stat. 136, provided that

notwithstanding the provisions of this section the burley tobacco

acreage allotment which would otherwise be established for any farm

having a burley acreage allotment in 1943 should be less than one

acre, or 25 per centum of the cropland, whichever is the smaller,

and the acreage required for apportionment under the resolution

should be in addition to the National and State acreage allotments.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1314c of this title.

-CITE-

7 USC Sec. 1314 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314. Penalties

-STATUTE-

(a) Persons liable

The marketing of (1) any kind of tobacco in excess of the

marketing quota for the farm on which the tobacco is produced, or

(2) any kind of tobacco that is not eligible for price support

under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) because

a producer on the farm has not agreed to make contributions or pay

assessments to the No Net Cost Tobacco Fund or the No Net Cost

Tobacco Account as required by sections 106A(d)(1) and 106(B)(d)(1)

(FOOTNOTE 1) of that Act (7 U.S.C. 1445-1(d)(1) and 1445-2(d)(1)),

if marketing quotas for that kind of tobacco are in effect, shall

be subject to a penalty of 75 per centum of the average market

price (calculated to the nearest whole cent) for such kind of

tobacco for the immediately preceding marketing year. Such penalty

shall be paid by the person who acquired such tobacco from the

producer but an amount equivalent to the penalty may be deducted by

the buyer from the price paid to the producer in case such tobacco

is marketed by sale; or, if the tobacco is marketed by the producer

through a warehouseman or other agent, such penalty shall be paid

by such warehouseman or agent who may deduct an amount equivalent

to the penalty from the price paid to the producer: Provided, That

in case any tobacco is marketed directly to any person outside the

United States the penalty shall be paid and remitted by the

producer. If any producer falsely identifies or fails to account

for the disposition of any tobacco, an amount of tobacco equal to

the normal yield of the number of acres harvested in excess of the

farm-acreage allotment shall be deemed to have been marketed in

excess of the marketing quota for the farm, and the penalty in

respect thereof shall be paid and remitted by the producer.

Tobacco carried over by the producer thereof from one marketing

year to another may be marketed without payment of the penalty

imposed by this section if the total amount of tobacco available

for marketing from the farm in the marketing year from which the

tobacco is carried over did not exceed the farm marketing quota

established for the farm for such marketing year (or which would

have been established if marketing quotas had been in effect for

such marketing year), or if the tobacco so carried over does not

exceed the normal production of that number of acres by which the

harvested acreage of tobacco in the calendar year in which the

marketing year begins is less than the farm-acreage allotment.

Tobacco produced in a calendar year in which marketing quotas are

in effect for the marketing year beginning therein shall be subject

to such quotas even though it is marketed prior to the date on

which such marketing year begins.

(FOOTNOTE 1) So in original. A reference to section 106B(d)(1)

was probably intended.

(b) Collection and deposit

The Secretary shall require collection of the penalty upon a

proportion of each lot of tobacco marketed from the farm equal to

the proportion which the tobacco available for marketing from the

farm in excess of the farm marketing quota is of the total amount

of tobacco available for marketing from the farm if satisfactory

proof is not furnished as to the disposition to be made of such

excess tobacco prior to the marketing of any tobacco from the

farm. All funds collected pursuant to this section shall be

deposited in a special deposit account with the Treasurer of the

United States until the end of the marketing year next succeeding

that in which the funds are collected, and upon certification by

the Secretary there shall be paid out of such special deposit

account to persons designated by the Secretary the amount by which

the penalty collected exceeds the amount of penalty due upon

tobacco marketed in excess of the farm marketing quota for any

farm. Such special account shall be administered by the Secretary,

and the basis for, the amount of, and the person entitled to

receive a payment from such account, when determined in accordance

with regulations prescribed by the Secretary, shall be final and

conclusive.

(c) Lien in favor of United States

Until the amount of the penalty provided by this section is paid,

a lien on the tobacco with respect to which such penalty is

incurred, and on any subsequent tobacco subject to marketing quotas

in which the person liable for payment of the penalty has an

interest, shall be in effect in favor of the United States for the

amount of the penalty.

-SOURCE-

(Feb. 16, 1938. ch. 30, title III, Sec. 314, 52 Stat. 48; Aug. 7,

1939, ch. 565, 53 Stat. 1262; June 13, 1940, ch. 360, Sec. 5, 54

Stat. 393; Feb. 19, 1946, ch. 31, Sec. 2, 60 Stat. 21; June 22,

1954, ch. 339, 68 Stat. 270; Mar. 31, 1955, ch. 21, Sec. 5, 69

Stat. 24; Pub. L. 97-218, title I, Sec. 103, title II, Sec. 206(a),

July 20, 1982, 96 Stat. 201, 206.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1949, referred to in subsec. (a), 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. For complete classification of this Act to the Code, see

Short Title note set out under section 1421 of this title and

Tables.

-MISC2-

AMENDMENTS

1982 - Subsec. (a). Pub. L. 97-218, Sec. 103, inserted ''(1)''

before ''any kind of tobacco'', and inserted cl. (2), regarding

marketing of any kind of tobacco that is not eligible for price

support under the Agricultural Act of 1949 because a producer on a

farm has not agreed to make the required contributions or pay

assessments to the No Net Cost Tobacco Fund or the No Net Cost

Tobacco Account, if marketing quotas for that kind of tobacco are

in effect.

Subsec. (c). Pub. L. 97-218, Sec. 206(a), added subsec. (c).

1955 - Subsec. (a). Act Mar. 31, 1955, substituted ''75 per

centum'' for ''50 per centum'' in first sentence.

1954 - Subsec. (a). Act June 22, 1954, substituted ''50 per

centum'' for ''40 per centum'' in first sentence.

1946 - Subsec. (a). Act Feb. 19, 1946, struck out ''10 cents per

pound in the case of flue-cured, Maryland, or Burley tobacco and 5

cents per pound in the case of all other kinds of tobacco.'' and

inserted in lieu thereof ''40 per centum of the average market

price (calculated to the nearest whole cent) for such kind of

tobacco for the immediately preceding marketing year'' in first

sentence.

1940 - Act June 13, 1940, designated existing provisions as

subsec. (a), inserted last three sentences to subsec. (a), and

added subsec. (b).

1939 - Subsec. (a). Act Aug. 7, 1939, struck out first sentence

and inserted in lieu thereof ''The marketing of any tobacco in

excess of the marketing quota for the farm on which the tobacco is

produced shall be subject to a penalty of 10 cents per pound in the

case of flue-cured, Maryland, or Burley tobacco and 5 cents per

pound in the case of all other kinds of tobacco''.

EFFECTIVE DATE OF 1982 AMENDMENT

Section 103 of Pub. L. 97-218 provided that the amendment made by

that section is effective for 1983 and subsequent crops of tobacco.

Amendment by section 206(a) of Pub. L. 97-218 effective July 20,

1982, but not to apply to any lease of a Flue-cured tobacco acreage

allotment or marketing quota entered into under the Agricultural

Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) before that date,

see section 207 of Pub. L. 97-218, set out as a note under section

1314b of this title.

EFFECTIVE DATE OF 1955 AMENDMENT

Act Mar. 31, 1955, provided that the amendment made by that act

is effective July 1, 1955, with respect to flue-cured tobacco, and

Oct. 1, 1955, with respect to other kinds of tobacco.

EFFECTIVE DATE OF 1954 AMENDMENT

Act June 22, 1954, provided that the amendment made by that act

is effective Oct. 1, 1954, except that in the case of flue-cured

tobacco such amendment is effective July 1, 1955.

EFFECTIVE DATE OF 1946 AMENDMENT

The second par. of section 2 of act Feb. 19, 1946, provided:

''The amendment made by this section (amending this section) shall

become effective July 1, 1946, except that in the case of

flue-cured tobacco such amendment shall become effective May 1,

1947.''

REVISION OF THIRD SENTENCE AND APPLICATION OF FOURTH SENTENCE OF

SUBSEC. (A) DURING ACREAGE-POUNDAGE QUOTA PERIODS

Section 317(g)(2), (3) of act Feb. 16, 1938, as added by Pub. L.

89-12, Sec. 1, Apr. 16, 1965, 79 Stat. 71, and classified to

section 1314c(g)(2), (3) of this title, provided that:

''(2) When marketing quotas established under this section

(section 1314c of this title) are in effect the provisions with

respect to penalties contained in the third sentence of subsection

314(a) (subsec. (a) of this section) shall be revised to read: 'If

any producer falsely identifies or fails to account for the

disposition of any tobacco, the Secretary, in lieu of assessing and

collecting penalties based on actual marketings of excess tobacco,

may elect to assess a penalty computed by multiplying the full

penalty rate by an amount of tobacco equal to 25 per centum of the

farm marketing quota plus the farm yield of the number of acres

harvested in excess of the farm acreage allotment and the penalty

in respect thereof shall be paid and remitted by the producer'.

''(3) For the first year a marketing quota program established

under the provisions of this section (section 1314c of this title)

is in effect, the words 'normal production' where they appear in

the fourth sentence of subsection (a) of such section (subsec. (a)

of this section) shall be read 'farm yield' and the said fourth

sentence shall otherwise be applicable. For the second and

succeeding years for which a program established under the

provisions of this section (section 1314c of this title) is in

effect, the provisions of subsection (a)(8) (section 1314c(a)(8) of

this title) shall apply when penalties, if any, on carryover

tobacco are computed, and the provisions contained in the fourth

sentence of subsection 314(a) (subsec. (a) of this section) shall

not be applicable.''

REVISION OF THIRD SENTENCE AND APPLICATION OF FOURTH SENTENCE OF

SUBSEC. (A) DURING BURLEY TOBACCO POUNDAGE QUOTA PERIODS

Section 319(i)(2), (3) of act Feb. 16, 1938, as added by Pub. L.

92-10, Sec. 1, Apr. 14, 1971, 85 Stat. 23, and classified to

section 1314e(i)(2), (3) of this title, provided that:

''(2) The provisions with respect to penalties contained in the

third sentence of section 1314(a) of this title shall be revised to

read: 'If any producer falsely identifies or fails to account for

the disposition of any tobacco, the Secretary, in lieu of assessing

and collecting penalties based on actual marketings of excess

tobacco, may elect to assess a penalty computed by multiplying the

full penalty rate by an amount of tobacco equal to 25 per centum of

the farm marketing quota (after adjustments) and the penalty in

respect thereof shall be paid and remitted by the producer'.

''(3) The provisions contained in the fourth sentence of section

1314(a) of this title shall not be applicable. For the first year

a marketing quota program established under the provisions of this

section (section 1314e of this title) is in effect, the farm

marketing quota determined under the provisions of subsection (e)

of this section shall receive a temporary upward adjustment equal

to the amount of carryover penalty-free burley tobacco for the

farm. For subsequent years, the provisions of subsection (c) of

this section shall apply.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1314c, 1314e, 1445 of

this title.

-CITE-

7 USC Sec. 1314-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314-1. Limitation on sale of tobacco floor sweepings

-STATUTE-

(a) Penalty

Effective for the 1982 and subsequent crops of tobacco, the

marketing of floor sweepings of any kind of tobacco in excess of

allowable floor sweepings shall be subject to a civil penalty of

150 per centum of the average market price (calculated to the

nearest whole cent) for such kind of tobacco for the immediately

preceding marketing year. Such penalty shall be paid by any person

found by the Secretary to have marketed such floor sweepings in

excess of the allowable amount.

(b) Assessment; notice and opportunity for hearing; determination

The penalty provided for in subsection (a) of this section shall

be assessed by the Secretary only after the person alleged to have

marketed floor sweepings in excess of allowable floor sweepings has

been given notice and an opportunity for hearing and the Secretary

has determined by decision incorporating the Secretary's findings

of fact that a violation did occur and the amount of the penalty.

(c) Relation to other law

The provisions of section 1376 of this title shall apply to

penalties under this section.

(d) Definitions

As used in this section -

(1) the term ''floor sweepings'' means the scraps or leaves of

tobacco which accumulate on the warehouse floor in the regular

course of business; and

(2) the term ''allowable floor sweepings'' means the quantity

of floor sweepings determined by multiplying 0.24 per centum

times the total first sales of tobacco at auction for the season

for the warehouse involved.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 314A, as added Pub. L.

97-218, title III, Sec. 306, July 20, 1982, 96 Stat. 215.)

-CITE-

7 USC Sec. 1314a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314a. Repealed. Pub. L. 90-51, Sec. 2, July 7, 1967, 81 Stat.

121

-MISC1-

Section, act Feb. 16, 1938, ch. 30, title III, Sec. 315, as added

Aug. 21, 1958, Pub. L. 85-705, 72 Stat. 703, provided for a

referendum among producers of type 21 (Virginia) fire-cured tobacco

and type 37 Virginia sun-cured tobacco on the question of a single

combined tobacco acreage allotment and provided for establishment

and subsequent increases and decreases in allotments. See section

1314d of this title.

-CITE-

7 USC Sec. 1314b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314b. Lease or sale of acreage allotments

-STATUTE-

(a) Conditions for permission from Secretary; false statements;

exceptions

(1) Notwithstanding any other provision of law -

(A)(i) The Secretary, if the Secretary determines that it will

not impair the effective operation of the tobacco marketing quota

or price support program, may permit the owner and operator of

any farm for which a tobacco acreage allotment (other than a

Burley, Flue-cured, dark air-cured, Fire-cured, Virginia

sun-cured and cigar-binder, type 54 or 55 tobacco acreage

allotment) is established under this chapter to lease and

transfer all or any part of such allotment to any other owner or

operator of a farm in the same county for use in such county on a

farm having a current tobacco allotment of the same kind.

(ii) The Secretary shall, only with respect to the 1984 through

1986 crops of Flue-cured tobacco, permit the owner of a farm to

which a Flue-cured tobacco acreage allotment or quota is assigned

under this chapter to lease and transfer all or any part of such

allotment or quota to any other owner or operator of a farm in

the same county for use in such county on a farm having a current

Flue-cured tobacco acreage allotment or quota except that for the

1985 and 1986 crops such lease and transfer shall be permitted

only if (except as otherwise provided in paragraph (2)(A)) the

parties to the lease file a copy of the lease agreement with the

county committee for the county in which the farms are located,

together with a written statement certifying that none of the

consideration for the lease has been or will be paid to the

lessor, either directly or indirectly in any form including a

loan by the lessee to the lessor, the endorsement of a note by

the lessee for the lessor, or any other similar arrangement which

represents the anticipated income for the lease, prior to the

marketing of the tobacco produced under the lease and that the

lease and transfer is otherwise in compliance with the provisions

of this section. Beginning with the 1985 crop, the Secretary

shall promulgate regulations establishing, insofar as is

reasonably practicable, a similar requirement providing that none

of the consideration for the lease of any Flue-cured tobacco

acreage allotment and quota may be paid to the lessor prior to

the marketing of the tobacco produced under the lease. The

Secretary shall also require that any seller of a Flue-cured

tobacco allotment and quota grant to the buyer an option to make

payment therefore in equal annual installments payable each fall

for a period not to exceed five years from the year in which the

sale is made. With respect to the 1987 and subsequent crops of

Flue-cured tobacco, the Secretary shall not permit the lease and

transfer of Flue-cured tobacco acreage allotments and quotas.

Notwithstanding any other provision of law, for the 2002 crop

only, the Secretary shall allow special farm reconstitutions, in

lieu of lease and transfer of allotments and quotas, under this

section, in accordance with such conditions as are established by

the Secretary.

(B) If, after notice and opportunity for a hearing, the county

committee determines that the lessee or the lessor of a

Flue-cured tobacco acreage allotment or quota knowingly made a

false statement in the written statement filed under subparagraph

(A), (i) in the case of a false statement knowingly made by the

lessee, the lease agreement for purposes of the Flue-cured

tobacco marketing quota program with respect to the lessee's farm

shall be considered null and void as of the date approved by the

county committee or (ii) in the case of a false statement

knowingly made by the lessor, the Flue-cured tobacco allotment

and quota next established for the farm of the lessor shall be

reduced by the percentage which the leased allotment or quota was

of the total Flue-cured tobacco allotment or quota for the farm.

Notice of any determination made by the county committee under

the preceding provision shall be mailed as soon as practicable to

the lessee or lessor involved. If the lessee or lessor is

dissatisfied with such determination, the lessee or lessor may

request, within fifteen days after notice of such determination

is mailed, a review of such determination by a local review

committee under section 1363 of this title.

(2) Repealed. Pub. L. 98-180, title II, Sec. 206(b)(1), Nov. 29,

1983, 97 Stat. 1147.

(b) Term of years; terms and conditions

Any lease may be made for such term of years not to exceed five

as the parties thereto agree, and on such other terms and

conditions, except as otherwise provided in this section, as the

parties thereto agree.

(c) Filing with county committees; calculation of normal yield for

transfer

The lease and transfer or sale and transfer of any allotment

shall not be effective until a copy of the lease or sale agreement,

as the case may be, is filed with and determined by the county

committee of the county in which the farms involved are located to

be in compliance with the provisions of this section. The transfer

shall be approved acre for acre.

(d) Allotments for other years unaffected; inclusion of amount in

transferors' plantings; referendum voting rights

The lease and transfer of any part of a tobacco acreage allotment

determined for a farm shall not affect the allotment for the farm

from which such acreage allotment is transferred or the farm to

which it is transferred, except with respect to the crop year

specified in the lease. The amount of acreage allotment which is

leased from a farm shall be considered for purpose of determining

future allotments to have been planted to tobacco on the farm from

which such allotment is transferred and the production pursuant to

the lease and transfer shall not be taken into account in

establishing allotments for subsequent years for the farm to which

such allotment is transferred. The lessor shall be considered to

have been engaged in the production of tobacco for the purpose of

eligibility to vote in the referendum.

(e) Limitation on amount of acreage allotment; ''tillable

cropland'' defined

(1) The total acreage allotted to any farm after the transfer by

lease or sale of tobacco acreage allotment to the farm under the

provisions of this section shall not exceed 50 per centum of the

acreage of cropland in the farm. In the case of cigar-filler

tobacco types 42, 43, or 44, not more than 10 acres of allotment

may be leased and transferred to any farm.

(2) Paragraph (1) shall not apply to flue-cured tobacco.

(3) For purposes of this section, the term ''tillable cropland''

means cleared land that can be planted to crops without unusual

cultivation or other preparation.

(f) Regulations

The Secretary shall prescribe such regulations as he considers

necessary for carrying out the provisions of this section.

(g) Sale of allotment or quota by one active Flue-cured tobacco

producer to another; definition

(1) The Secretary shall permit the owner of any farm to which a

Flue-cured tobacco allotment or quota is assigned to sell, for use

on another farm in the same county, all or any part of such

allotment or quota to any person who is or intends to become an

active Flue-cured tobacco producer. For purposes of this section,

the term ''active Flue-cured tobacco producer'' means any person

who shared in the risk of producing a crop of Flue-cured tobacco in

not less than one of the three years preceding the year involved,

or any person who certifies to the Secretary, in such form and

manner as the Secretary shall by regulation prescribe, his or her

intent to become a Flue-cured tobacco producer.

(2) For purposes of this section, a person shall be considered to

have shared in the risk of producing a crop of Flue-cured tobacco

if -

(A) the investment of such person in the production of such

crop is not less than 20 per centum of the proceeds of the sale

of such crop;

(B) the amount of such person's return on such investment is

dependent solely on the sale price of such crop; and

(C) such person may not receive any of such return before the

sale of such crop.

(3) Transfers allowed by referendum. -

(A) Referendum. - On the request of at least 25 percent of the

active flue-cured tobacco producers within a State, the Secretary

shall conduct a referendum of the active flue-cured tobacco

producers within the State to determine whether the producers

favor or oppose permitting the sale of a flue-cured tobacco

allotment or quota from a farm in a State to any other farm in

the State.

(B) Approval. - If the Secretary determines that a majority of

the active flue-cured tobacco producers voting in the referendum

approves permitting the sale of a flue-cured tobacco allotment or

quota from a farm in the State to any other farm in the State,

the Secretary shall permit the sale of a flue-cured tobacco

allotment or quota from a farm in the State to any other farm in

the State.

(h) (FOOTNOTE 1) Sale or forfeiture of allotment or quota; notice

and opportunity for hearing; determination; review

(FOOTNOTE 1) So in original. Two subsecs. (h) have been

enacted.

(1) Any person who -

(A) acquires any Flue-cured tobacco acreage allotment or quota

by purchase under subsection (g) of this section; and

(B) with respect to any crop of Flue-cured tobacco planted

after the date of such acquisition, fails to share in the risk of

producing tobacco under such allotment or quota in the manner

specified in subsection (g)(2) of this section;

shall sell such allotment or quota before the expiration of the

eighteen-month period beginning on July 1 of the year in which such

crop is planted, or such allotment or quota shall be subject to

forfeiture under the procedure specified in paragraph (3) of this

subsection.

(2) Any person who -

(A) acquires any Flue-cured tobacco acreage allotment or quota

by purchase under subsection (g) of this section; and

(B) disposes of an acreage of tillable cropland (as defined in

subsection (e)(2) of this section) which results in the total

acreage of Flue-cured tobacco allotted to such person's farm

exceeding 50 per centum of the tillable cropland owned by such

person;

shall, before July 1 of the year after the year of such disposal,

take steps which will result in the total acreage of Flue-cured

tobacco allotted to such farm not exceeding 50 per centum of the

tillable cropland owned by such person. If such person fails to

take such steps, then any such excess allotment or quota shall be

subject to forfeiture under the procedure specified in paragraph

(3) of this subsection.

(3)(A) If, after notice and an opportunity for a hearing, the

appropriate county committee determines that any person knowingly

failed to comply with paragraph (1) or (2) of this subsection, then

such person shall forfeit to the Secretary the allotment or quota

specified in such paragraph. Any allotment or quota so forfeited

shall be reallocated by such county committee for use by active

Flue-cured tobacco producers (as defined in subsection (g)(1) of

this section) in the county involved.

(B) Notice of such determination shall be mailed, as soon as

practicable, to such person. If such person is dissatisfied with

such determination, then such person may request, within fifteen

days after notice of such determination is so mailed, a review of

such determination by a local review committee under section 1363

of this title.

(h) (FOOTNOTE 1) Transfer authority

(1) Notwithstanding any other provision of this section, the

Secretary may permit, after June 30 of any crop year, the lease and

transfer of flue-cured tobacco quota assigned to a farm if -

(A) the planted acreage of flue-cured tobacco on the farm to

which the quota is assigned is determined by the Secretary to be

equal to or greater than 90 percent of the farm's acreage

allotment, or the planted acreage is determined to be sufficient

to produce the farm marketing quota under average conditions; and

(B) the farm's expected production of flue-cured tobacco is

less than 80 percent of the farm's effective marketing quota as a

result of a natural disaster condition.

(2) Any lease and transfer of quota under this paragraph may be

made to any other farm within the same State in accordance with

regulations issued by the Secretary.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 316, as added Pub. L.

87-200, Sept. 6, 1961, 75 Stat. 469; amended Pub. L. 87-530, July

10, 1962, 76 Stat. 151; Pub. L. 87-824, Oct. 15, 1962, 76 Stat.

947; Pub. L. 88-68, July 19, 1963, 77 Stat. 81; Pub. L. 88-80, July

30, 1963, 77 Stat. 114; Pub. L. 88-469, Sec. 1, 2, Aug. 20, 1964,

78 Stat. 581; Pub. L. 89-29, May 27, 1965, 79 Stat. 118; Pub. L.

89-321, title VII, Sec. 703, Nov. 3, 1965, 79 Stat. 1210; Pub. L.

89-471, June 24, 1966, 80 Stat. 220; Pub. L. 90-6, Mar. 29, 1967,

81 Stat. 6; Pub. L. 90-52, July 7, 1967, 81 Stat. 121; Pub. L.

90-559, Sec. 1(1), Oct. 11, 1968, 82 Stat. 996; Pub. L. 91-284,

Sec. 1-4, June 19, 1970, 84 Stat. 314; Pub. L. 92-311, June 6,

1972, 86 Stat. 215; Pub. L. 93-80, Aug. 1, 1973, 87 Stat. 178; Pub.

L. 93-464, Oct. 24, 1974, 88 Stat. 1416; Pub. L. 94-445, Oct. 1,

1976, 90 Stat. 1489; Pub. L. 95-54, June 25, 1977, 91 Stat. 250;

Pub. L. 97-218, title II, Sec. 201, July 20, 1982, 96 Stat. 201;

Pub. L. 98-180, title II, Sec. 205(a), 206, Nov. 29, 1983, 97 Stat.

1145, 1147; Pub. L. 100-203, title I, Sec. 1112(a), Dec. 22, 1987,

101 Stat. 1330-7; Pub. L. 101-134, Sec. 2(b), Oct. 30, 1989, 103

Stat. 781; Pub. L. 106-78, title VIII, Sec. 803(c)(6)(A), (B), Oct.

22, 1999, 113 Stat. 1177, 1178; Pub. L. 107-171, title I, Sec.

1611(a), May 13, 2002, 116 Stat. 218.)

-REFTEXT-

REFERENCES IN TEXT

The written statement described in subsection (c) of this

section, referred to in subsec. (a)(2)(A), was eliminated by the

amendment to subsec. (c) by section 206(a) of Pub. L. 98-180. See

1983 Amendment note below.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(1)(A)(ii). Pub. L. 107-171 inserted at end

''Notwithstanding any other provision of law, for the 2002 crop

only, the Secretary shall allow special farm reconstitutions, in

lieu of lease and transfer of allotments and quotas, under this

section, in accordance with such conditions as are established by

the Secretary.''

1999 - Subsec. (e)(1). Pub. L. 106-78, Sec. 803(c)(6)(A)(i),

substituted ''farm. In'' for ''farm or, in the case of the sale of

a Flue-cured tobacco acreage allotment or poundage quota, of the

acreage of tillable cropland (as defined in paragraph (2)) in the

farm: Provided, That in''.

Subsec. (e)(2), (3). Pub. L. 106-78, Sec. 803(c)(6)(A)(ii),

(iii), added par. (2) and redesignated former par. (2) as (3).

Subsec. (g)(3). Pub. L. 106-78, Sec. 803(c)(6)(B), added par.

(3).

1989 - Subsec. (c). Pub. L. 101-134 substituted ''The transfer

shall be approved acre for acre.'' for ''If the normal yield

established by the county committee for the farm to which the

allotment is transferred by lease or sale does not exceed the

normal yield established by the county committee for the farm from

which the allotment is transferred by more than 10 per centum, the

transfer shall be approved acre for acre. If the normal yield for

the farm to which the allotment is transferred exceeds the normal

yield for the farm from which the allotment is transferred by more

than 10 per centum, the county committee shall make a downward

adjustment in the amount of the acreage allotment transferred by

multiplying the normal yield established for the farm from which

the allotment is transferred by the acreage being transferred and

dividing the result by the normal yield established by the farm to

which the allotment is transferred.''

1987 - Subsec. (h). Pub. L. 100-203 added subsec. (h) relating to

transfer authority.

1983 - Subsec. (a)(1). Pub. L. 98-180, Sec. 205(a), designated

existing provision as subpar. (A)(i), substituted ''The Secretary,

if the Secretary'' for ''the Secretary, if he'', ''Fire-cured'' for

''fire-cured'', and ''lease and transfer all'' for '', to lease

all'' and struck out ''shall permit the owner of any farm to which

a Flue-cured tobacco acreage allotment or quota is assigned under

this chapter and'' before ''may permit'' and ''or quota'' after

''such allotment'' and ''tobacco allotment'' and added subpars.

(A)(ii) and (B).

Subsec. (a)(2). Pub. L. 98-180, Sec. 206(b)(1), struck out par.

(2) which read as follows:

''(A) No lease of any Flue-cured tobacco allotment or quota

assigned to a farm may be filed under subsection (c) of this

section after June 15 of the crop year specified in such lease,

except that the Secretary may allow a lease to be so filed after

June 15 of such crop year if the Secretary determines that, as a

result of flood, hail, wind, tornado, or other natural disaster -

''(i) the county in which such farm is located has suffered a

loss of not less than 10 per centum of the acreage of Flue-cured

tobacco planted for harvest in such crop year;

''(ii) the lessor involved has suffered a loss of not less than

10 per centum of the acreage of Flue-cured tobacco planted for

harvest on such farm in such crop year; and

''(iii) such lease will not impair the effective operation of

the tobacco marketing quota or price support program.

If the Secretary makes such determination, then the Secretary may

permit the lessor to lease all or any part of such allotment or

quota to any other owner or operator of a farm in the same county

or in an adjoining county within the same State for use in such

county on a farm having a current Flue-cured tobacco allotment or

quota. If permitted, such lease and transfer shall not be

effective until a copy of such lease and a written statement

described in subsection (c) of this section are filed with and

determined by the county committee of such county to be in

compliance with the provisions of this section.

''(B) No agreement or arrangement may be made in connection with

the making of any lease with respect to any Flue-cured tobacco

allotment or quota under paragraph (1) of this subsection except -

''(i) between the lessor and lessee; or

''(ii) between the lessor or lessee and any attorney, trustee,

bank, or other agent or representative, who regularly represents

the lessor or lessee, as the case may be, in business

transactions unrelated to the production or marketing of tobacco.

''(C) No sublease or other transfer of such allotment or quota

may be made by such lessee during the period of such lease.''

Subsec. (c). Pub. L. 98-180, Sec. 206(a), struck out provisions

requiring the lessor and lessee, in addition to a copy of the

lease, to file with the county committee a written statement

certifying compliance with the provisions of this section,

authorizing the county committee, after notice and opportunity for

hearing, to determine that a knowingly false statement was made in

such written statement, specifying penalties for such false

statement, directing that notice of the determination be mailed to

the lessor or lessee, and permitting the lessor or lessee, if

dissatisfied with such determination, to review such determination

under section 1363 of this title.

Subsec. (e)(1). Pub. L. 98-180, Sec. 206(b)(2), substituted ''the

sale of a Flue-cured tobacco acreage allotment or poundage quota''

for ''Flue-cured tobacco''.

Subsec. (g)(2). Pub. L. 98-180, Sec. 206(b)(3), struck out last

sentence which read as follows: ''Any person who owns any

Flue-cured tobacco allotment or quota and leases such allotment or

quota to another person for use in producing a crop shall be

considered to have shared in the risk of producing such crop if,

under the terms of such lease, subparagraphs (B) and (C) of this

paragraph are satisfied with regard to such owner.''

1982 - Subsec. (a). Pub. L. 97-218, Sec. 201(a), designated

existing provisions as par. (1), substituted ''shall permit the

owner of any farm to which a Flue-cured tobacco acreage allotment

or quota is assigned under this chapter and may permit the owner

and operator'' for ''may permit the owner and operator'', and

substituted ''(other than a Burley, Flue-cured, dark air-cured,

fire-cured, Virginia sun-cured and cigar-binder, type 54 or 55

tobacco acreage allotment) is established under this chapter, to

lease'' for ''(other than a Burley, dark air-cured, fire-cured,

Virginia sun-cured and cigar-binder, type 54 or 55 tobacco acreage

allotment) is established under this chapter to lease'', and added

par. (2).

Subsec. (c). Pub. L. 97-218, Sec. 201(b), inserted references to

sales of acreage allotments in provision requiring the filing of

agreements with the county committee of the county in which the

farms involved are located, substituted provisions that in the case

of a lease and transfer of any Flue-cured tobacco allotment or

quota regarding any crop, a lease under this section shall take

effect only after the lessor and lessee each file with the county

committee a copy of the lease together with a written statement of

compliance, and provisions for penalties, after notice and

opportunity for hearing, in the event a county committee determines

that either the lessor or the lessee knowingly made a false

statement in the written statement of compliance, together with

provisions for review of any unfavorable determination upon

request, for former provisions that any lease of Flue-cured tobacco

acreage-poundage marketing quotas from any farm with an

acreage-poundage marketing quota in excess of two thousand pounds

filed on or after June 15 in any year was not effective unless the

acreage planted on both the lessor and the lessee farms during the

current marketing year was as much as 80 per centum of the farm

acreage allotment in effect for such year, and inserted references

to transfers by sale in the provisions for the acre by acre

approval of transfers when the transfer/transferee normal yield

differential is 10 percent or less.

Subsec. (e). Pub. L. 97-218, Sec. 201(c), designated existing

provisions as par. (1), substituted ''transfer by lease or sale''

for ''transfer by lease'' and ''cropland in the farm or, in the

case of Flue-cured tobacco, of the acreage of tillable cropland (as

defined in paragraph (2)) in the farm'' for ''cropland in the

farm'', and added par. (2).

Subsec. (g). Pub. L. 97-218, Sec. 201(d), added subsec. (g).

Former subsec. (g), which related to emergency allotment leases and

transfers for 1973 in certain disaster areas in Georgia and South

Carolina, was struck out.

Subsec. (h). Pub. L. 97-218, Sec. 201(d), added subsec. (h).

Former subsec. (h), which related to emergency allotment leases and

transfers for 1974 in certain disaster areas in North Carolina, was

struck out.

Subsec. (i). Pub. L. 97-218, Sec. 201(d), struck out subsec. (i)

which related to emergency allotment leases and transfers for 1976

in certain disaster areas in Georgia and South Carolina.

1977 - Subsec. (c). Pub. L. 95-54 substituted provision allowing

leasing of flue-cured tobacco acreage-poundage quotas after June 15

of any year only between farms on which at least 80 per centum of

the farm acreage allotment was planted for such year for provision

which had formerly required only a 50 per centum planting.

1976 - Subsec. (i). Pub. L. 94-445 added subsec. (i).

1974 - Subsec. (h). Pub. L. 93-464 added subsec. (h).

1973 - Subsec. (g). Pub. L. 93-80 added subsec. (g).

1972 - Subsec. (c). Pub. L. 92-311 substituted provisions that

leases of Flue-cured tobacco acreage-poundage marketing quotas from

any farm with an acreage-poundage marketing quota in excess of

2,000 pounds filed on or after June 15 in any year will not be

effective unless the acreage planted on lessor and lessee farms

during that year was 50 per centum of the farm acreage allotment in

effect for such year, for provisions that such lease and transfer

shall not be effective unless a copy of the lease was filed with

the county committee prior to a closing date, not later than the

normal planting time in the county, established by the Secretary.

1970 - Subsec. (a). Pub. L. 91-284, Sec. 1, authorized leases

without limitation to crop years 1962 through 1970, prescribed

conditions for permission from Secretary, substituted as excepted

from allotment ''Burley, dark air-cured, fire-cured, Virginia

sun-cured and cigar-binder, type 54 or 55 tobacco acreage

allotment'' for ''Burley tobacco acreage allotment or a

cigar-filler and cigar binder (types 42, 43, 44, 53, 54, and 55)

tobacco acreage allotment'', authorized lease of all of such

allotment or quota, and deleted provision for recognition and

consideration of lease and transfer of allotment as valid by the

county committee upon compliance with conditions of this section.

Subsec. (b). Pub. L. 91-284, Sec. 2, provided for execution of

leases for term of years not exceeding five rather than on an

annual basis.

Subsec. (e). Pub. L. 91-284, Sec. 3, prescribed 10 acre

limitation on the amount of cigar-filler tobacco types 42, 43, or

44 allotment acreage which may be leased and transferred to any

farm.

Subsec. (g). Pub. L. 91-284, Sec. 4, repealed provision for

filing of leases for 1965 crop year.

1968 - Subsec. (a). Pub. L. 90-559 provided for a one year

extension through 1970.

1967 - Subsec. (a). Pub. L. 90-6 struck out provision which

restricted leasing and transferring of a Maryland tobacco allotment

unless at least 75 percent of the allotment for the farm had been

actually planted on such farm during each of the two immediately

preceding years.

Subsec. (e). Pub. L. 90-52 removed 5 acre limitation on amount of

tobacco allotment acreage which may be leased and transferred to

any farm.

1966 - Subsec. (c). Pub. L. 89-471 inserted proviso which allowed

lease and transfer of an allotment notwithstanding failure to file

a copy of the lease with the county committee prior to closing date

if the Secretary finds that the lease was agreed upon prior to the

closing date and the terms of the lease are reduced to writing and

filed not later than the 31st day of July of the crop year to which

the lease relates.

1965 - Subsec. (a). Pub. L. 89-321 extended from 1965 to 1969 the

lease privilege for tobacco acreage allotments as well as the

prohibition against lease eligibility for Maryland tobacco acreage

allotments unless at least 75 per centum of the allotment for the

farm was actually planted on such farm during each of the two

immediately preceding years.

Subsec. (g). Pub. L. 89-29 substituted ''1965 crop year'' for

''1964 crop year'' and ''June 15, 1965'' for ''June 15, 1964'', and

changed the date of filing from within twenty days of August 20,

1964, to within twenty days of May 27, 1965.

1964 - Subsec. (g). Pub. L. 88-469, Sec. 1, substituted ''1964

crop year'' for ''1962 crop year'' and ''June 15, 1964'' for ''June

15, 1962'', and changed the date of filing from within twenty days

of July 10, 1962 to within twenty days of August 20, 1964.

Subsec. (h). Pub. L. 88-469, Sec. 2, repealed subsec. (h) which

related to filing of leases for 1963 crop year.

1963 - Subsec. (a). Pub. L. 88-68, Sec. 1(1), extended to crop

years 1964 and 1965 provisions permitting lease of tobacco acreage

allotments, substituted ''or'' for '', and for the 1963 crop year,

other than'', inserted ''1962 or 1963'' before ''allotment'' in the

Maryland tobacco provision and precluded the leasing of 1964 or

1965 Maryland tobacco allotment from the farm unless at least 75

per centum of the allotment for the farm was actually planted on

such farm during each of the two immediately preceding years.

Subsec. (b). Pub. L. 88-68, Sec. 1(2), required annual basis for

leases and eliminated provisions against leases for any period

exceeding 1 year and for renewal of 1963 crop year leases, except

renewal of 1963 crop year leases for cigar-filler and cigar-binder

(types 42, 43, 44, 53, 54, and 55).

Subsec. (h). Pub. L. 88-80 added subsec. (h).

1962 - Subsec. (a). Pub. L. 87-824 excepted for the 1963 crop

year cigar-filler and cigar-binder (types 42, 43, 44, 53, 54, and

55) tobacco acreage allotments.

Subsec. (b). Pub. L. 87-824 inserted proviso prohibiting renewal

of lease for 1963 for cigar-filler and cigar-binder (types 42, 43,

44, 53, 54, and 55) tobacco.

Subsec. (g). Pub. L. 87-530 added subsec. (g).

EFFECTIVE DATE OF 1983 AMENDMENT

Section 205(a) of Pub. L. 98-180 provided that the amendment made

by that section is effective for 1984 and subsequent crops of

tobacco.

Section 206(a) of Pub. L. 98-180 provided that the amendment made

by that section is effective for 1984 and subsequent crops of

tobacco.

Section 206(b) of Pub. L. 98-180 provided that the amendment made

by that section is effective for 1987 and subsequent crops of

tobacco.

EFFECTIVE DATE OF 1982 AMENDMENT

Section 207 of title II of Pub. L. 97-218 provided that:

''(a) Except as provided in subsection (b), this title (enacting

section 1314b-1 of this title and amending this section and

sections 1314, 1314c, 1314f, and 1316 of this title) shall take

effect on the date of the enactment of this Act (July 20, 1982).

''(b) The amendments made by this title (enacting section 1314b-1

of this title and amending this section and sections 1314, 1314c,

1314f, and 1316 of this title) shall not apply to any lease of a

Flue-cured tobacco acreage allotment or marketing quota entered

into under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281

et seq.) before the date of the enactment of this Act (July 20,

1982).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1314b-1, 1314c, 1316 of

this title.

-CITE-

7 USC Sec. 1314b-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314b-1. Mandatory sale of certain Flue-cured tobacco acreage

allotments and marketing quotas

-STATUTE-

(a) Sale or forfeiture of acreage allotment or marketing quota by

institutional farmowners not later than the later of December

1, 1984, or December 1 of year after year in which farm

acquired

Any person (including, but not limited to, any governmental

entity, public utility, educational institution, or religious

institution, but not including any individual, any partnership, any

family farm corporation, any trust, estate or similar fiduciary

account with respect to which the beneficial interest is in one or

more individuals, or any educational institution that uses a

Flue-cured acreage allotment or quota for instructional or

demonstration purposes) which, on or after July 20, 1982 -

(1) owns a farm for which a Flue-cured acreage allotment or

marketing quota is established under this chapter; and

(2) is not significantly involved in the management or use of

land for agricultural purposes;

shall sell such allotment or quota in accordance with section

1314b(g) of this title not later than December 1, 1984, or December

1 of the year after the year in which the farm is acquired,

whichever is later, or shall forfeit such allotment or quota under

the procedure specified in subsection (c) of this section.

(b) Forfeiture of acreage allotment or marketing quota by

farmowners on or after December 1, 1983

Any person (including, but not limited to, any governmental

entity, public utility, educational institution, or religious

institution) who, on or after December 1, 1983, owns a farm for

which the total acreage alloted (FOOTNOTE 1) for the production of

Flue-cured tobacco under this chapter exceeds 50 per centum of such

farm's tillable cropland, as defined in section 1314b(e)(2) of this

title, shall forfeit any acreage allotment or marketing quota

representing the excess under the procedure specified in subsection

(c) of this section. In the case of any person who acquires a farm

after December 1, 1983, the acreage allotment or marketing quota

representing the excess shall not be subject to forfeiture until

July 1 of the year after the year of acquisition.

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

(c) Notice and opportunity for hearing; determination; review

(1) If, after notice and an opportunity for a hearing, the

appropriate county committee determines that any person knowingly

failed to comply with subsection (a) or (b) of this section, then

the allotment or quota specified in such subsection shall be

forfeited and shall be reallocated in the manner provided for in

section 1314b(h)(3)(A) of this title.

(2) Notice of such determination shall be mailed, as soon as

practicable, to such person. If such person is dissatisfied with

such determination, then such person, within fifteen days after

notice of such determination is so mailed, may request review of

such determination under section 1363 of this title.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 316A, as added Pub. L.

97-218, title II, Sec. 202, July 20, 1982, 96 Stat. 205; amended

Pub. L. 98-180, title II, Sec. 207(a), Nov. 29, 1983, 97 Stat.

1148.)

-MISC1-

AMENDMENTS

1983 - Subsec. (a). Pub. L. 98-180 inserted '', any partnership,

any family farm corporation, any trust, estate or similar fiduciary

account with respect to which the beneficial interest is in one or

more individuals, or any educational institution that uses a

Flue-cured acreage allotment or quota for instructional or

demonstration purposes'' after ''any individual'' and substituted

''1984'' for ''1983''.

EFFECTIVE DATE

Section effective July 20, 1982, but not to apply to any lease of

a Flue-cured tobacco acreage allotment or marketing quota entered

into under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281

et seq.) before that date, see section 207 of Pub. L. 97-218, set

out as an Effective Date of 1982 Amendment note under section 1314b

of this title.

-CITE-

7 USC Sec. 1314b-2 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314b-2. Mandatory sale of certain Burley tobacco acreage

allotments and marketing quotas

-STATUTE-

(a) Sale or forfeiture of marketing quota by institutional

farmowners not later than the later of December 1, 1984, or

December 1 of year after year in which farm acquired

Any person (including, but not limited to, any governmental

entity, public utility, educational institution, or religious

institution, but not including any individual) which, on or after

July 20, 1982 -

(1) owns a farm for which a Burley tobacco marketing quota is

established under this chapter; and

(2) does not use the land on the farm for agricultural

purposes, or does not use its Burley marketing quota for

educational, instructional, or demonstration purposes;

shall sell, not later than December 1, 1984, or December 1 of the

year after the year in which the farm is acquired, whichever is

later, such quota to an active Burley tobacco producer or any

person who intends to become an active Burley tobacco producer, as

defined by the Secretary, for use on another farm in the same

county or shall forfeit such quota under the procedure specified in

subsection (b) of this section. Notwithstanding the foregoing

provisions of this subsection, any person to whom this subsection,

as in effect prior to November 29, 1983, applies and who -

(A) is required to sell or forfeit the marketing quota by

December 1, 1983, because the person was not significantly

involved in the management or use of the land for agricultural

purposes, but

(B) would be eligible to retain the marketing quota under this

subsection, as amended by the Tobacco Adjustment Act of 1983,

may, if the person elects to do so, sell such person's marketing

quota if a record of the transfer is filed with the county

committee by February 1, 1984.

(b) Notice and opportunity for hearing; determination; review

(1) If, after notice and an opportunity for a hearing, the county

committee of the county referred to in subsection (a) of this

section determines that any person knowingly failed to comply with

such subsection, then the quota specified in such subsection shall

be forfeited and shall be reallocated by such county committee to

other active Burley tobacco producers or those intending to become

active Burley tobacco producers as defined by the Secretary, for

use in such county.

(2) Notice of such determination shall be mailed, as soon as

practicable, to such person. If such person is dissatisfied with

such determination, then such person may request, within fifteen

days after notice of such determination is so mailed, a review of

such determination by a local review committee under section 1363

of this title.

(c) Sale or forfeiture of allotment or quota by subsequent

purchaser; notice and opportunity for hearing; determination;

review

(1) Any person who -

(A) acquires any Burley tobacco marketing quota by purchase

under subsection (a) of this section; and

(B) with respect to any crop of Burley tobacco planted after

the date of such acquisition, fails for the five-year period

immediately subsequent to the year of such acquisition to share

in the risk of producing Burley tobacco under such allotment or

quota in the manner specified in paragraph (2) of this

subsection;

shall sell such quota before the expiration of the eighteen-month

period beginning on July 1 of the year in which such crop is

planted, or such quota shall be subject to forfeiture under the

procedures specified in paragraph (3) of this subsection.

(2) For purposes of this subsection, a person shall be considered

to have shared in the risk of producing a crop of Burley tobacco if

-

(A) the investment of such person in the production of such

crop is not less than 20 per centum of the proceeds of the sale

of such crop;

(B) the amount of such person's return on such investment is

dependent solely on the sale price of such crop; and

(C) such person may not receive any of such return before the

sale of such crop.

(3)(A) If, after notice and an opportunity for a hearing, the

county committee of the county referred to in subsection (a) of

this section determines that any person knowingly failed to comply

with this subsection, then the quota specified in this subsection

shall be forfeited and shall be reallocated by such county

committee for use by active Burley tobacco producers or those

intending to become active Burley tobacco producers, as defined by

the Secretary, for use in such county.

(B) Notice of such determination shall be mailed, as soon as

practicable, to such person. If such person is dissatisfied with

such determination, then such person may request, within fifteen

days after notice of such determination is so mailed, a review of

such determination by a local review committee under section 1363

of this title.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 316B, as added Pub. L.

97-218, title III, Sec. 302, July 20, 1982, 96 Stat. 210; amended

Pub. L. 98-180, title II, Sec. 207(b), Nov. 29, 1983, 97 Stat.

1148.)

-REFTEXT-

REFERENCES IN TEXT

The Tobacco Adjustment Act of 1983, referred to in subsec. (a),

is title II of Pub. L. 98-180, Nov. 29, 1983, 97 Stat. 1143. For

amendment of subsec. (a) of this section by section 207(b) of Pub.

L. 98-180, see 1983 Amendment note below.

-MISC2-

AMENDMENTS

1983 - Subsec. (a). Pub. L. 98-180 substituted in par. (2) ''does

not use the land on the farm for agricultural purposes, or does not

use its Burley marketing quota for educational, instructional, or

demonstration purposes'' for ''is not significantly involved in the

management or use of land for agricultural purposes'' and in

provision following par. (2) ''1984'' for ''1983'' and inserted in

provision following par. (2) provision permitting any person

subject to this subsection as in effect prior to Nov. 29, 1983, who

would be required to sell or forfeit the marketing quota by Dec. 1,

1983, but would be eligible to retain the marketing quota under

this subsection, as amended by the Tobacco Adjustment Act of 1983,

to elect to sell the marketing quota if a record of the transfer is

filed with the county committee by Feb. 1, 1984.

-CITE-

7 USC Sec. 1314c 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314c. Acreage-poundage quotas

-STATUTE-

(a) Definitions

For purposes of this section -

(1)(A) Except as provided in subparagraph (B), ''national

marketing quota'' for any kind of tobacco for a marketing year

means the amount of the kind of tobacco produced in the United

States which the Secretary estimates will be utilized during the

marketing year in the United States and will be exported during the

marketing year, adjusted upward or downward in such amount as the

Secretary, in his discretion, determines is desirable for the

purpose of maintaining an adequate supply or for effecting an

orderly reduction of supplies to the reserve supply level. Any

such downward adjustment shall not exceed 15 per centum of such

estimated utilization and exports.

(B) For the 1986 and each subsequent crop of Flue-cured tobacco,

''national marketing quota'' for a marketing year means the

quantity of Flue-cured tobacco, as determined by the Secretary,

that is not more than 103 percent nor less than 97 percent of the

total of -

(i) the aggregate of the quantities of Flue-cured tobacco that

domestic manufacturers of cigarettes estimate the manufacturers

intend to purchase on the United States auction markets or from

producers during the marketing year, as compiled and determined

under section 1314g of this title;

(ii) the average annual quantity of Flue-cured tobacco exported

from the United States during the 3 marketing years immediately

preceding the marketing year for which the determination is being

made; and

(iii) the quantity, if any, of Flue-cured tobacco that the

Secretary, in the discretion of the Secretary, determines is

necessary to increase or decrease the inventory of the

producer-owned cooperative marketing association that has entered

into a loan agreement with the Commodity Credit Corporation to

make price support available to producers of Flue-cured tobacco

to establish or maintain such inventory at the reserve stock

level for Flue-cured tobacco.

(C) Notwithstanding any other provision of law -

(i) the national marketing quota for Flue-cured tobacco for

each of the 1986 through 1989 marketing years for such tobacco

shall not be less than 94 percent of the national marketing quota

for such tobacco for the preceding marketing year; and

(ii) the national marketing quota for Flue-cured tobacco for

each of the 1990 through 1996 marketing years for such tobacco

shall not be less than 90 percent of the national marketing quota

for such tobacco for the preceding marketing year, except that,

in the case of each of the 1995 and 1996 crops of Flue-cured

tobacco, the Secretary may waive the requirements of this clause

if the Secretary determines that the requirements would likely

result in inventories of the producer-owned cooperative marketing

association for Flue-cured tobacco described in section

1314h(a)(2) of this title to exceed 150 percent of the reserve

stock level for Flue-cured tobacco.

(2) ''National average yield goal'' for any kind of tobacco means

the yield per acre which on a national average basis the Secretary

determines will improve or insure the usability of the tobacco and

increase the net return per pound to the growers. In making this

determination the Secretary shall give consideration to such

Federal-State production research data as he deems relevant.

Notwithstanding the preceding sentence, in 1983,, (FOOTNOTE 1) the

national average yield goal for Flue-cured tobacco shall be

adjusted by the Secretary to the past five years' moving national

average yield.

(FOOTNOTE 1) So in original.

(3) ''National acreage allotment'' means the acreage determined

by dividing the national marketing quota by the national average

yield goal.

(4) ''Farm acreage allotment'' for a tobacco farm, other than a

new tobacco farm, means the acreage allotment determined by

adjusting uniformly the acreage allotment established for such farm

for the immediately preceding year, prior to any increase or

decrease in such allotment due to undermarketings or overmarketings

and prior to any reduction under subsection (f) of this section, so

that the total of all allotments is equal to the national acreage

allotment less the reserve provided in subsection (e) of this

section with a further downward or upward adjustment to reflect any

adjustment in the farm marketing quota for overmarketing or

undermarketing and to reflect any reduction required under

subsection (f) of this section, and including any adjustment for

errors or inequities from the reserve. In determining farm acreage

allotments for Flue-cured tobacco for 1965, the 1965 farm allotment

determined under section 1313 of this title shall be adjusted in

lieu of the acreage allotment for the immediately preceding year.

Notwithstanding the preceding provisions of this subsection, in

1983,, (FOOTNOTE 1) farm acreage allotments for Flue-cured tobacco

for farms in each county shall be adjusted by the Secretary to

reflect the increases or decreases in the past five years' moving

county average yield per acre, as determined by the Secretary on

the basis of actual yields of farms in the county, or, if such

information is not available, on such other data on yields as the

Secretary may deem appropriate.

(5) The ''community average yield'' means for Flue-cured tobacco

the average yield per acre in the community designated by the

Secretary as a local administrative area under the provisions of

section 590h(b) of title 16 which is determined by averaging the

yields per acre for the three highest years of the five years 1959

to 1963, inclusive, except that if the yield for any of the three

highest years is less than 80 per centum of the average for the

three years then that year or years shall be eliminated and the

average of the remaining years shall be the community average

yield. Community average yields for other kinds of tobacco shall

be determined in like manner, except that the five years 1960 to

1964, inclusive, may be used instead of the period 1959 to 1963, as

determined by the Secretary.

(6)(A) ''Preliminary farm yield'' for Flue-cured tobacco means a

farm yield per acre determined by averaging the yield per acre for

the three highest years of the five consecutive crop years

beginning with the 1959 crop year except that if that average

exceeds 120 per centum of the community average yield the

preliminary farm yield shall be the sum of 50 per centum of the

average of the three highest years and 50 per centum of the

national average yield goal but not less than 120 per centum of the

community average yield, and if the average of the three highest

years is less than 80 per centum of the community average yield the

preliminary farm yield shall be 80 per centum of the community

average yield. In counties where less than five hundred acres of

Flue-cured tobacco were allotted for 1964, the county may be

considered as one community. If Flue-cured tobacco was not

produced on the farm for at least three years of the five-year

period the average of the yields for the years in which tobacco was

produced shall be used instead of the three-year average. If no

Flue-cured tobacco was produced on the farm in the five-year period

but the farm is eligible for an allotment because Flue-cured

tobacco was considered to have been produced under applicable

provisions of law, a preliminary farm yield for the farm shall be

determined under regulations of the Secretary taking into account

preliminary farm yields of similar farms in the community.

Notwithstanding the preceding provisions of this subsection, in

1983, preliminary farm yields for Flue-cured tobacco farms in each

county shall be adjusted by the Secretary by the reciprocal of the

factor computed in paragraph (4) of this subsection to adjust farm

acreage allotments to reflect increases or decreases in the past

five years' moving county average yields.

(B) ''Preliminary farm yield'' for kinds of tobacco, other than

Flue-cured, means a farm yield per acre determined in accordance

with subparagraph (A) of this paragraph (6) except that in lieu of

the five consecutive crop years beginning with 1959 the immediately

preceding 5 crop years shall be used by the Secretary. In counties

where less than five hundred acres of the kind of tobacco for which

the determination is being made were allotted in the last year of

the five-year period the county may be considered as one

community. If tobacco of the kind for which the determination is

being made was not produced on the farm for at least three years of

the five-year period, the average of the yields for the years in

which the kind of tobacco was produced shall be used instead of the

three-year average. If no tobacco of the kind for which the

determination is being made was produced on the farm in the

five-year period but the farm is eligible for an allotment because

such tobacco was considered to have been produced under applicable

provisions of law, a preliminary farm yield for the farm shall be

determined under regulations of the Secretary taking into account

preliminary farm yields of similar farms in the community.

(7) ''Farm yield'' means the yield of tobacco per acre for a farm

determined by multiplying the preliminary farm yield by a national

yield factor which shall be obtained by dividing the national

average yield goal by a weighted national average yield computed by

multiplying the preliminary farm yield for each farm by the acreage

allotment determined pursuant to paragraph (4) for the farm prior

to adjustments for overmarketing, undermarketing, or reductions

required under subsection (f) of this section and dividing the sum

of the products by the national acreage allotment.

(8) ''Farm marketing quota'' for any farm for any marketing year

shall be the number of pounds of tobacco obtained by multiplying

the farm yield by the acreage allotment prior to any adjustment for

undermarketing or overmarketing, increased for undermarketing or

decreased for overmarketing by the number of pounds by which

marketings of tobacco from the farm during the immediately

preceding marketing year, if marketing quotas were in effect under

the program established by this section, is less than or exceeds

the farm marketing quota for such year: Provided, That the farm

marketing quota for any marketing year shall not be increased for

undermarketing by an amount in excess of the number of pounds

determined by multiplying the acreage allotment for the farm for

the immediately preceding year prior to any increase or decrease

for undermarketing or overmarketing by the farm yield. If on

account of excess marketings in the preceding marketing year the

farm marketing quota for the marketing year is reduced to zero

pounds without reflecting the entire reduction required, the

additional reduction required shall be made for the subsequent

marketing year or years. The farm marketing quota will be

increased or decreased for the second succeeding marketing year in

the case of Maryland tobacco, and for any other kind of tobacco for

which the Secretary determines it is impracticable because of the

lack of adequate marketing data, to make the increases or decreases

applicable to the immediately succeeding marketing year.

(b) National marketing quota, acreage allotment and average yield

goal for Flue-cured tobacco; referendum

Within thirty days after April 16, 1965 the Secretary pursuant to

the provisions of subsection (a) of this section shall determine

and announce the amount of the national marketing quota for

Flue-cured tobacco for the marketing year beginning July 1, 1965,

and the national acreage allotment and national average yield goal

for the 1965 crop of Flue-cured tobacco, and within thirty days

after the announcement of the amount of such national marketing

quota shall conduct a special referendum of the farmers engaged in

the production of Flue-cured tobacco of the 1964 crop to determine

whether they favor or oppose the establishment of marketing quotas

on an acreage-poundage basis as provided in this section for the

marketing years beginning July 1, 1965, July 1, 1966, and July 1,

1967, in lieu of quotas on an acreage basis in effect for those

marketing years. If the Secretary determines that more than 66 2/3

per centum of the farmers voting in the special referendum approve

marketing quotas on an acreage-poundage basis, marketing quotas on

an acreage-poundage basis as provided in this section shall be in

effect for those marketing years and the marketing quotas on an

acreage basis shall cease to be in effect at the beginning of such

three-year period.

(c) Tobacco having marketing quotas on acreage basis; determination

of Secretary of program on acreage-poundage basis; announcement

of national marketing quota, acreage allotment and average

yield goal; referendum

Whenever, during the first or second marketing year of the

three-year period for which marketing quotas on an acreage basis

are in effect for any kind of tobacco, including Flue-cured

tobacco, the Secretary, in his discretion, determines with respect

to that kind of tobacco that acreage-poundage quotas under this

section would result in a more effective marketing quota program

for that kind of tobacco he shall at the time (FOOTNOTE 2) the next

announcement of the amount of the national marketing quota under

section 1312(b) of this title determine and announce the amount of

the national quota for that kind of tobacco under this section and

at the same time announce the national acreage allotment and

national average yield goal and within forty-five days thereafter

conduct a special referendum of farmers engaged in the production

of the kind of tobacco of the most recent crop to determine whether

they favor the establishment of marketing quotas on an

acreage-poundage basis as provided in this section for the next

three marketing years: Provided, however, That the Secretary shall

not make any such determination with respect to any kind of tobacco

except Flue-cured tobacco unless prior thereto he shall conduct

public hearings in the areas where such tobacco is produced for the

purpose of ascertaining and taking into consideration the attitudes

of producers and other interested persons with respect to

acreage-poundage quotas. If the Secretary determines that more

than 66 2/3 per centum of the farmers voting in the special

referendum approve marketing quotas on an acreage-poundage basis as

provided in this section, quotas on that basis shall be in effect

for the next three marketing years and the marketing quotas on an

acreage basis shall cease to be in effect at the beginning of such

three-year period. If marketing quotas on an acreage-poundage

basis are not approved by more than 66 2/3 per centum of the

farmers voting in such referendum, the marketing quotas on an

acreage basis shall continue in effect as theretofore proclaimed

under section 1312(a) of this title.

(FOOTNOTE 2) So in original.

(d) Proclamation of national marketing quota for three years

following last year of three years of acreage-poundage quotas;

referendum; notice of farm marketing quota to farm operators

If marketing quotas have been made effective for a kind of

tobacco on an acreage-poundage basis pursuant to subsections (b) or

(c) of this section the Secretary shall, not later than December 15

of any marketing year with respect to Flue-cured tobacco, and March

1 with respect to other kinds of tobacco, proclaim a national

marketing quota for that kind of tobacco for the next three

succeeding marketing years if the marketing year is the last year

of three consecutive years for which marketing quotas previously

proclaimed will be in effect. Notwithstanding the foregoing

sentence, the proclamation of the national marketing quota for the

1986 crop of Flue-cured tobacco may be made not later than December

31, 1985. The Secretary, in his discretion, may proclaim the quota

on an acreage-poundage basis as provided in this section or on an

acreage allotment basis, whichever he determines would result in a

more effective marketing quota for that kind of tobacco, and shall

conduct a referendum in accordance with the provisions of section

1312(c) of this title. Notwithstanding the foregoing sentence or

section 1312(c) of this title, the referendum with respect to

national marketing quotas for Flue-cured tobacco for the 1986

through 1988 marketing years may be conducted not later than the

earlier of (1) thirty days after any proclamation of the national

marketing quota for Flue-cured tobacco for the 1986 marketing year

made after January 30, 1986, or (2) March 15, 1986. If the

Secretary determines that more than one-third of the farmers voting

oppose the national marketing quotas the results shall be

proclaimed and the national marketing quota so proclaimed shall not

be in effect. If the Secretary proclaims the quotas on an

acreage-poundage basis he shall determine and proclaim at the same

time the national marketing quota, national acreage allotment, and

national average yield goal for the first year of the three years

for which quotas are proclaimed. Notice of the farm marketing

quota which will be in effect for his farm for the first marketing

year covered by the referendum insofar as practicable shall be

mailed to the farm operator prior to the holding of any special

referendum under subsection (b) of this section or a referendum on

acreage-poundage quotas under this subsection, and at least 15 days

prior to the holding of any special referendum under subsection (c)

of this section. The Secretary shall determine and announce the

national marketing quota, national acreage allotment and national

average yield goal for the second and third marketing years of any

three-year period for which national marketing quotas on an

acreage-poundage basis are in effect on or before the December 15

with respect to Flue-cured tobacco and the March 1 with respect to

other kinds of tobacco immediately preceding the beginning of the

marketing year to which they apply. Whenever a national marketing

quota, national acreage allotment, and national average yield goal

are determined and announced, the Secretary shall provide for the

determination of farm acreage allotments and farm marketing quotas

under the provisions of this section for the crop and marketing

year covered by the determinations. Notwithstanding any other

provision of law, for the 1986 marketing year, the Secretary shall

proclaim the national marketing quota for Flue-cured tobacco not

later than 21 days after April 7, 1986. Any proclamation with

respect to the national marketing quota for the 1986 marketing year

for Flue-cured tobacco made by the Secretary prior to April 7,

1986, shall become void on April 7, 1986.

(e) Nonestablishment of farm acreage allotment or farm yield for

farms without tobacco production for five years; reserve; ''new

farms'' defined; acreage allotment and farm yield basis of new

farms

No farm acreage allotment or farm yield shall be established for

a farm on which no tobacco was produced or considered produced

under applicable provisions of law for the immediately preceding

five years. For each marketing year for which acreage-poundage

quotas are in effect under this section the Secretary in his

discretion may establish a reserve from the national acreage

allotment in an amount equivalent to not more than 3 per centum of

the national acreage allotment to be available for making

corrections of errors in farm acreage allotments, adjusting

inequities, and for establishing acreage allotments for new farms,

which are farms on which tobacco was not produced or considered

produced during the immediately preceding five years (except that

not less than two-thirds of such reserve shall be for new farms).

The part of the reserve held for apportionment to new farms shall

be allotted on the basis of land, labor, and equipment available

for the production of tobacco, crop rotation practices, soil and

other physical factors affecting the production of tobacco and the

past tobacco-producing experience of the farm operator. The farm

yield for any farm for which a new farm acreage allotment is

established shall be determined on the basis of available

productivity data for the land involved and farm yields for similar

farms.

(f) Acreage reduction penalties applicable to acreage-poundage

programs; farm marketing quota reductions; filing false

reports; increases or decreases in acreage allotments and farm

yields for other farms of owner displaced by agency acquisition

of farms; leases and sales of acreage allotments and farm

marketing quotas; ratification of transfers of acreage

allotments

Only the provisions of the last two sentences of subsection (g)

of section 1313 of this title shall apply with respect to

acreage-poundage programs established under this section. The

acreage reductions required under the last two sentences shall be

in addition to any other adjustments made pursuant to this section,

and when acreage reductions are made the farm marketing quota shall

be reduced to reflect such reductions. The provisions of the next

to the last sentence of such subsection pertaining to the filing of

any false report with respect to the acreage of tobacco grown on

the farm shall also be applicable to the filing of any false report

with respect to the production or marketings of tobacco grown on a

farm for which an acreage allotment and a farm yield are

established as provided in this section. In establishing acreage

allotments and farm yields for other farms owned by the owner

displaced by acquisition of his land by any agency, as provided in

section 1378 of this title, increases or decreases in such acreage

allotments and farm yields as provided in this section shall be

made on account of marketings below or in excess of the farm

marketing quota for the farm acquired by the agency. Acreage

allotments and farm marketing quotas determined under this section

may (except in the case of kinds of tobacco not subject to section

1314b of this title) be leased and sold under the terms and

conditions contained in section 1314b of this title, except that

(1) the adjustment provided for in the last sentence of subsection

(c) of said section shall be based on farm yields rather than

normal yields, and (2) any credit for undermarketing or charge for

overmarketing shall be attributed to the farm to which

transferred. Transfers of acreage allotments for 1965 under

section 1314b of this title on the basis of leases executed prior

to the effective date of a program for the 1965 crop of Flue-cured

tobacco under this section may be approved or ratified by the

county committee for the purposes of this section, but the amount

of allotment transferred shall be increased or decreased in the

same proportion that the allotment of the farm from which it is

transferred is increased or decreased under this section.

(g) Marketing penalties

When marketing quotas under this section are in effect,

provisions with respect to penalties for the marketing of excess

tobacco and the other provisions contained in section 1314 of this

title shall apply, except that:

(1) No penalty on excess tobacco shall be due or collected until

103 per centum (120 per centum in the case of Burley tobacco for

the first year for which marketing quotas are made effective under

this section) of the farm marketing quota for a farm has been

marketed, but with respect to each pound of tobacco marketed in

excess of such percentage the full penalty rate shall be due,

payable, and collected at the time of marketing on each pound of

tobacco marketed, and any tobacco marketed in excess of 100 per

centum of the farm marketing quota will require a reduction in

subsequent farm marketing quotas in accordance with subsection

(a)(8) of this section: Provided, however, If the Secretary, in his

discretion, determines it is desirable to encourage the marketing

of grade N2 tobacco, or any grade of tobacco not eligible for price

support, in order to meet the normal demands of export and domestic

markets, he may authorize the marketing of such tobacco in a

marketing year without the payment of penalty or deduction from

subsequent quotas to the extent of 5 per centum of the farm

marketing quota for the farm on which the tobacco was produced.

(2) When marketing quotas established under this section are in

effect the provisions with respect to penalties contained in the

third sentence of section 1314(a) of this title shall be revised to

read: ''If any producer falsely identifies or fails to account for

the disposition of any tobacco, the Secretary, in lieu of assessing

and collecting penalties based on actual marketings of excess

tobacco, may elect to assess a penalty computed by multiplying the

full penalty rate by an amount of tobacco equal to 25 per centum of

the farm marketing quota plus the farm yield of the number of acres

harvested in excess of the farm acreage allotment and the penalty

in respect thereof shall be paid and remitted by the producer.''

(3) For the first year a marketing quota program established

under the provisions of this section is in effect, the words

''normal production'' where they appear in the fourth sentence of

subsection (a) of section 1314 of this title shall be read ''farm

yield'' and the said fourth sentence shall otherwise be

applicable. For the second and succeeding years for which a

program established under the provisions of this section is in

effect, the provisions of subsection (a)(8) of this section apply

when penalties, if any, on carryover tobacco are computed, and the

provisions contained in the fourth sentence of section 1314(a) of

this title shall not be applicable.

(h) Burley tobacco; acreage-poundage basis: farm acreage allotment

and farm marketing quota, adjustments for overmarketing or

undermarketing, reductions for violations; acreage and quota

additional to national acreage allotment and national marketing

quota; acreage basis: acreage allotment, amendment of clause

(1) and proviso of section 1315

Notwithstanding any other provision of this section, for any year

subsequent to the first year for which marketing quotas are made

effective under this section for Burley tobacco -

(1) the farm acreage allotment for Burley tobacco under this

section shall not be less than the smallest of (A) the acreage

allotment established for the farm for such first year, (B)

five-tenths of an acre, or (C) 10 per centum of the cropland; and

(2) the farm marketing quota for Burley tobacco under this

section shall not be less than the minimum allotment provided by

clause (1) multiplied by the farm yield established for such

first year for such farm.

Farm acreage allotments and marketing quotas to which the

provisions of (1) and (2) are applicable shall be subject to

adjustment for overmarketing or undermarketing or reductions

required by subsection (f) of this section. The additional acreage

and quotas required under the subsection shall be in addition to

the national acreage allotment and national marketing quota.

Whenever the Secretary proclaims a quota on an acreage allotment

basis (in lieu of on an acreage poundage basis) -

(A) the minimum acreage allotment for Burley tobacco for any

farm shall be determined under the provisions of section 1315 of

this title instead of under the preceding provisions of this

subsection;

(B) clause (1) of section 1315 of this title shall for such

purpose read as follows: ''(1) the allotment established for the

farm for the last preceding year for which a quota was proclaimed

on an acreage allotment basis''; and

(C) the proviso of section 1315 of this title shall for such

purpose read as follows: ''Provided, however, That no allotment

of seven-tenths of an acre or less shall be reduced more than

one-tenth of an acre below the allotment established for the farm

for the last preceding year for which a quota was proclaimed on

an acreage allotment basis''.

(i) Consultations with industry representatives respecting a

program for each kind of tobacco, studies of Flue-cured tobacco

acreage-poundage program, report and recommendations to

congressional committees, upon referendum approval of

Flue-cured tobacco acreage-poundage program

If an acreage-poundage program for Flue-cured tobacco is approved

by growers voting in the special referendum under subsection (b) of

this section, the Secretary shall not later than January 1, 1966 -

(1) Consult with representatives of all segments of the tobacco

industry, including growers, State farm organizations, and

cooperative associations, in meetings held for each kind of

tobacco, to receive their recommendations and to determine the need

for a similar or modified program for that kind of tobacco.

(2) Conduct a study and report to the House Committee on

Agriculture and the Senate Committee on Agriculture, Nutrition, and

Forestry on experience with and operation of the program, and make

recommendations for any modifications needed to improve the

program, including alternatives adapted to the different needs of

other kinds of tobacco.

(j) Treatment of falsely identified tobacco for purposes of

establishing future farm marketing quotas

Notwithstanding any other provision of this section, if a

producer falsely identifies tobacco as having been produced on or

marketed from a farm, the quantity of tobacco so falsely identified

shall be considered for purposes of establishing future farm

marketing quotas, as having been produced on both the farm for

which it was identified as having been produced and the farm of

actual production, if known, or, as the case may be, shall be

considered as actually marketed from the farm.

(k) Forfeiture of allotment and quota

(1) Notwithstanding any other provision of law, any person who,

on or after January 1, 1986, owns a farm for which a Flue-cured

tobacco acreage allotment or marketing quota is established under

this chapter shall, subject to paragraph (2) of this subsection,

forfeit such allotment or quota after February 15 of any year

immediately following the last year of the three-year period

immediately preceding the year for which the determination is being

made in which Flue-cured tobacco has not been planted or considered

planted on such farm during at least two years out of such

three-year period.

(2) The allotment or quota specified in paragraph (1) of this

subsection shall be forfeited if, after notice and opportunity for

a hearing, the appropriate county committee determines that the

conditions for forfeiture specified in such paragraph exist. Any

allotment or quota so forfeited shall be reallocated by such county

committee for use by active Flue-cured tobacco producers (as

defined in section 1314b(g)(1) of this title) in the county

involved.

(3) Notice of any determination made by the county committee

under paragraph (2) of this subsection shall be mailed, as soon as

practicable, to the person involved. If such person is

dissatisfied with such determination, such person may request,

within fifteen days after notice of such determination is mailed, a

review of such determination by a local review committee under

section 1363 of this title.

(l) Determination of Flue-cured tobacco planted acreage

The Secretary shall determine the acreage planted to Flue-cured

tobacco on each farm whenever an acreage-poundage program for

Flue-cured tobacco is in effect under this section.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 317, as added Pub. L.

89-12, Sec. 1, Apr. 16, 1965, 79 Stat. 66; amended Pub. L. 91-284,

Sec. 5, June 19, 1970, 84 Stat. 314; Pub. L. 97-218, title II, Sec.

203, 205(a), 206(b), July 20, 1982, 96 Stat. 205-207; Pub. L.

98-180, title II, Sec. 205(b), 208-210, Nov. 29, 1983, 97 Stat.

1147-1149; Pub. L. 99-182, Sec. 4, Dec. 13, 1985, 99 Stat. 1173;

Pub. L. 99-241, Sec. 1, Jan. 30, 1986, 100 Stat. 3; Pub. L. 99-272,

title I, Sec. 1103(b), 1104(c), 1105(a)(1), Apr. 7, 1986, 100 Stat.

86, 89, 90; Pub. L. 100-203, title I, Sec. 1112(b), Dec. 22, 1987,

101 Stat. 1330-8; Pub. L. 101-134, Sec. 2(a)(2), Oct. 30, 1989, 103

Stat. 781; Pub. L. 103-66, title I, Sec. 1106(d)(2), Aug. 10, 1993,

107 Stat. 323; Pub. L. 103-437, Sec. 4(a)(5), Nov. 2, 1994, 108

Stat. 4581.)

-MISC1-

AMENDMENTS

1994 - Subsec. (i)(2). Pub. L. 103-437 substituted ''Committee on

Agriculture, Nutrition, and Forestry'' for ''Committee on

Agriculture and Forestry''.

1993 - Subsec. (a)(1)(C)(ii). Pub. L. 103-66 substituted ''1996''

for ''1993'' and inserted before period at end '', except that, in

the case of each of the 1995 and 1996 crops of Flue-cured tobacco,

the Secretary may waive the requirements of this clause if the

Secretary determines that the requirements would likely result in

inventories of the producer-owned cooperative marketing association

for Flue-cured tobacco described in section 1314h(a)(2) of this

title to exceed 150 percent of the reserve stock level for

Flue-cured tobacco.

1989 - Subsec. (a)(6)(B). Pub. L. 101-134 substituted

''immediately preceding 5 crop years shall be used by the

Secretary'' for ''years 1960 to 1964, inclusive, may be used, as

determined by the Secretary''.

1987 - Subsec. (a)(2), (4), (6)(A). Pub. L. 100-203, which

directed that subsec. (a) ''is amended by striking out 'and at

five-year intervals thereafter' each place it appears in paragraphs

(2), (4), and (6)(A)'' was executed by striking out ''and at

five-year intervals thereafter'' after ''in 1983,'' in pars. (2)

and (4), and after ''in 1983'' in par. (6)(A), as the probable

intent of Congress.

1986 - Subsec. (a)(1). Pub. L. 99-272, Sec. 1103(b), designated

existing provisions as subpar. (A), substituted ''Except as

provided in subparagraph (B), 'national marketing quota' '' for ''

'National marketing quota' '', and added subpars. (B) and (C).

Subsec. (d). Pub. L. 99-272, Sec. 1104(c), inserted provisions

relating to the proclamation of the national marketing quota for

Flue-cured tobacco not later than 21 days after Apr. 7, 1986, and

declaring as void any quota by proclamation prior to that date.

Pub. L. 99-241 inserted provision that the referendum with

respect to national marketing quotas for Flue-cured tobacco for

1986 through 1988 marketing years may be conducted not later than

the earlier of 30 days after any proclamation of the national

marketing quota for Flue-cured tobacco for the 1986 marketing year

made after Jan. 30, 1986, or Mar. 15, 1986.

Subsec. (g)(1). Pub. L. 99-272, Sec. 1105(a)(1), substituted

''103 per centum'' for ''110 per centum''.

1985 - Subsec. (d). Pub. L. 99-182 inserted ''Notwithstanding the

foregoing sentence, the proclamation of the national marketing

quota for the 1986 crop of Flue-cured tobacco may be made not later

than December 31, 1985.''

1983 - Subsec. (d). Pub. L. 98-180, Sec. 208, substituted

''December 15'' for ''December 1'' and ''March 1'' for ''February

1'' wherever appearing.

Subsec. (e). Pub. L. 98-180, Sec. 209, substituted ''3 per

centum'' for ''1 per centum'' and ''five years (except that not

less than two-thirds of such reserve shall be for new farms)'' for

''five years'' and struck out '', and shall not exceed the

community average yield'' after ''similar farms''.

Subsec. (k). Pub. L. 98-180, Sec. 205(b), added subsec. (k).

Subsec. (l). Pub. L. 98-180, Sec. 210, added subsec. (l).

1982 - Subsec. (a)(2). Pub. L. 97-218, Sec. 203(1), inserted

provision that notwithstanding the preceding sentence of this

subsection, during 1983 and at five-year intervals thereafter, the

national average yield goal for Flue-cured tobacco shall be

adjusted by the Secretary to the past five years' moving national

average yield.

Subsec. (a)(4). Pub. L. 97-218, Sec. 203(2), inserted provision

that notwithstanding the preceding provisions of subsec. (a), in

1983, and at five-year intervals thereafter, farm acreage

allotments for Flue-cured tobacco for farms in each county shall be

adjusted by the Secretary to reflect the increases or decreases in

the past five years' moving county average yield per acre, as

determined by the Secretary on the basis of actual yields of farms

in the county or, if not available, on such other data on yields as

the Secretary may deem appropriate.

Subsec. (a)(6)(A). Pub. L. 97-218, Sec. 203(3), inserted

provision that notwithstanding the preceding provisions of this

subsection, in 1983 and at five-year intervals thereafter,

preliminary farm yields for Flue-cured tobacco farms in each county

shall be adjusted by the Secretary by the reciprocal of the factor

computed in subsec. (a)(4) to adjust farm acreage allotments to

reflect increases or decreases in the past five years' moving

county average yields.

Subsec. (f). Pub. L. 97-218, Sec. 205(a), substituted ''be leased

and sold under the terms and conditions'' for ''be leased under the

terms and conditions'' in fifth sentence.

Subsec. (j). Pub. L. 97-218, Sec. 206(b), added subsec. (j).

1970 - Subsec. (f). Pub. L. 91-284 struck out ''Burley tobacco or

other'' before ''kinds of tobacco'' in fifth sentence.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1105(a) of Pub. L. 99-272 provided that the amendment

made by that section is effective for 1986 and subsequent crops of

tobacco.

EFFECTIVE DATE OF 1983 AMENDMENT

Section 205(b) of Pub. L. 98-180 provided that the amendment made

by that section is effective for 1984 and subsequent crops of

tobacco.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-218 effective July 20, 1982, but not to

apply to any lease of a Flue-cured tobacco acreage allotment or

marketing quota entered into under the Agricultural Adjustment Act

of 1938 (7 U.S.C. 1281 et seq.) before that date, see section 207

of Pub. L. 97-218, set out as a note under section 1314b of this

title.

RULEMAKING PROCEDURES

Secretary of Agriculture to implement amendments by Pub. L.

99-272 without regard to provisions requiring notice and other

procedures for public participation in rulemaking contained in

section 553 of Title 5, Government Organization and Employees, or

in any other directive of the Secretary, see section 1108(c) of

Pub. L. 99-272, set out as a note under section 1301 of this title.

TOBACCO DEFINITION AND INCREASE OF MARKETING QUOTAS AND ACREAGE

ALLOTMENTS TO MEET DEMAND UNAFFECTED BY ACREAGE-POUNDAGE MARKETING

QUOTAS AND PRICE SUPPORT PROVISIONS

Section 4 of Pub. L. 89-12 provided that: ''Nothing in this Act

(enacting this section and amending sections 1313 and 1445 of this

title) shall be construed as affecting the authority or

responsibility of the Secretary of Agriculture under section

301(b)(15) (section 1301(b)(15) of this title) or section 313(i)

(section 1313(i) of this title) of the Agricultural Adjustment Act

of 1938 with respect to providing that different types of tobacco

shall be treated as different kinds of tobacco, or with respect to

increasing allotments or quotas for farms producing certain types

of tobacco.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1313, 1316, 1445 of this

title.

-CITE-

7 USC Sec. 1314d 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314d. Fire-cured, dark air-cured, and Virginia sun-cured

tobacco

-STATUTE-

(a) Sale or lease of acreage allotments and acreage-poundage quotas

Notwithstanding any other provision of law, the Secretary, if he

determines that it will not impair the effective operation of the

tobacco marketing quota or price support programs, (1) may permit

the owner and operator of any farm for which a Fire-cured, dark

air-cured, or Virginia sun-cured tobacco acreage allotment or

acreage-poundage quota is established under this chapter to sell or

lease all or any part or the right to all or any part of such

allotment or quota to any other owner or operator of a farm for

transfer to such farm; and (2) may permit the owner of a farm to

transfer all or any part of such allotment or quota to any other

farm owned or controlled by him.

(b) Conditions for transfers

Transfers under this section shall be subject to the following

conditions: (1) except as provided in section 1379(b) of this

title, no allotment or quota shall be transferred to a farm in

another county: Provided, That in the case of Virginia fire-cured

tobacco type 21 and Virginia sun-cured tobacco type 37, any such

transfer may be made to a farm in another county in the same State;

(2) no transfer other than by annual lease of an allotment or quota

from a farm subject to a mortgage or other lien shall be permitted

unless the transfer is agreed to by the lienholders; (3) no sale of

a farm allotment or quota from a farm shall be permitted if any

sale of allotment or quota to the same farm has been made within

the three immediately preceding crop years; and (4) no transfer of

allotment or quota shall be effective until a record thereof is

filed with the county committee of the county to which such

transfer is made and such committee determines that the transfer

complies with the provisions of this section.

(c) Transfer of acreage history and marketing quota

The transfer of an allotment or quota under this section shall

have the effect of transferring also the acreage history and

marketing quota attributable to such allotment or quota and if the

transfer is made prior to the determination of the allotment or

quota for any year the transfer shall include the right of the

owner or operator to have an allotment or quota determined for the

farm for such year: Provided, That in the case of a transfer by

lease the amount of the allotment or quota shall be considered for

purposes of determining allotments or quotas after the expiration

of the lease to have been planted on the farm from which such

allotment is transferred.

(d) Five-year restriction on new farm allotments or quotas

The land in the farm from which the entire tobacco allotment or

quota has been transferred shall not be eligible for a new farm

tobacco allotment or quota during the five years following the year

in which such transfer is made.

(e) Allotment adjustment

The transfer of an allotment or quota under this section shall be

approved acre for acre.

(f) Lease term

Any lease under this section may be made for such term of years

not to exceed five as the parties thereto agree, and on such other

terms and conditions except as otherwise provided in this section

as the parties thereto agree.

(g) Transfer of allotments

Under this section, the total acreage allotted to any farm after

any transfer shall not exceed 50 percent of the acreage of cropland

on the farm.

(h) Future allotments; referendum voting eligibility

The lease of any part of a tobacco acreage allotment or

acreage-poundage quota under this section determined for a farm

shall not affect the allotment or quota for the farm from which

such allotment or quota is transferred or the farm to which it is

transferred, except with respect to the crop year or years

specified in the lease. The amount of the acreage allotment and

acreage-poundage quota which is leased from a farm shall be

considered for purposes of determining future allotments and quotas

to have been planted to tobacco on the farm from which such

allotment or quota is leased and the production pursuant to the

lease shall not be taken into account in establishing allotments or

quotas for subsequent years for the farm to which such allotment is

leased. The lessor shall be considered to have been engaged in the

production of tobacco for purposes of eligibility to vote in the

referendum.

(i) Land utilization agreements; payment adjustments

If the sale or transfer under this section occurs during a period

in which the farm is covered, by a conservation reserve contract,

cropland conversion agreement, or other similar land utilization

agreement the rates of payment provided for in the contract or

agreement of the farm from which the transfer is made shall be

subject to an appropriate adjustment, but no adjustment shall be

made in the contract or agreement of the farm to which the transfer

is made.

(j) Rules and regulations

The Secretary shall prescribed such regulations and other terms

and conditions as he deems necessary for the administration of this

section.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 318, as added Pub. L.

90-51, Sec. 1, July 7, 1967, 81 Stat. 120; amended Pub. L. 90-387,

July 5, 1968, 82 Stat. 293; Pub. L. 92-144, Oct. 23, 1971, 85 Stat.

393; Pub. L. 98-180, title II, Sec. 212(a), Nov. 29, 1983, 97 Stat.

1149; Pub. L. 102-566, Sec. 1, Oct. 28, 1992, 106 Stat. 4269; Pub.

L. 106-224, title II, Sec. 204(b)(8), June 20, 2000, 114 Stat.

402.)

-MISC1-

AMENDMENTS

2000 - Subsec. (g). Pub. L. 106-224 added heading and text of

subsec. (g) and struck out former subsec. (g) which read as

follows: ''Under the provisions of this section not more than ten

acres of allotment may be transferred to any farm: Provided, That

the total acreage allotted to any farm after such transfer shall

not exceed 50 per centum of the acreage of cropland in the farm.''

1992 - Subsec. (e). Pub. L. 102-566 added subsec. (e) and struck

out former subsec. (e) which read as follows: ''If the normal yield

established by the county committee for the farm to which the

allotment is transferred does not exceed the normal yield

established by the county committee for the farm from which the

allotment is transferred by more than 10 per centum, the transfer

shall be approved acre for acre. If the normal yield for the farm

to which the allotment is transferred exceeds the normal yield for

the farm from which the allotment is transferred by more than 10

per centum, the county committee shall make a downward adjustment

in the amount of the acreage allotment transferred by multiplying

the normal yield established for the farm from which the allotment

is transferred by the acreage being transferred and dividing the

result by the normal yield established for the farm to which the

allotment is transferred.''

1983 - Subsec. (b). Pub. L. 98-180 inserted ''except as provided

in section 1379(b) of this title,'' after ''(1)''.

1971 - Subsec. (b)(1). Pub. L. 92-144 inserted proviso referring

to Virginia fire-cured tobacco type 21 and Virginia sun-cured

tobacco type 37.

1968 - Subsec. (b)(2). Pub. L. 90-387 inserted ''other than by

annual lease'' after ''no transfer''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1314e of this title.

-CITE-

7 USC Sec. 1314e 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314e. Farm poundage quotas for certain kinds of tobacco

-STATUTE-

(a) Proclamations and referenda regarding burley tobacco

Notwithstanding any other provision of law, the Secretary shall,

within thirty days following April 14, 1971, proclaim national

marketing quotas for burley tobacco for the three marketing years

beginning October 1, 1971, and determine and announce the amount of

the marketing quota for burley tobacco for the marketing year

beginning October 1, 1971, as provided in this section.

Within thirty days following such proclamation, the Secretary

shall conduct a referendum of the farmers engaged in the production

of the 1970 crop of burley tobacco to determine whether they favor

or oppose the establishment of farm marketing quotas on a poundage

basis as provided in this section for the three marketing years

beginning October 1, 1971. If the Secretary determines that

two-thirds or more of the farmers voting in such referendum approve

marketing quotas on a poundage basis, marketing quotas as provided

in this section shall be in effect for those three marketing

years. If marketing quotas on a poundage basis are not approved by

at least two-thirds of the farmers voting in such referendum, no

marketing quotas or price support for burley tobacco shall be in

effect for the marketing year beginning October 1, 1971.

Thereafter, the provisions of section 1312 of this title shall

apply: Provided, That national marketing quotas for burley tobacco

for any marketing year subsequent to the marketing year beginning

October 1, 1971, shall be proclaimed as provided in this section.

The Secretary shall determine and announce, not later than the

February 1 preceding the second and third marketing years of any

three-year period for which marketing quotas on a poundage basis

are in effect for burley tobacco under this section, the amount of

the national marketing quota for each of such years. If marketing

quotas have been made effective on a poundage basis for burley

tobacco under this section, the Secretary shall, not later than

February 1 of the last year of three consecutive marketing years

for which marketing quotas are in effect for burley tobacco under

this section, proclaim national marketing quotas for burley tobacco

for the next three succeeding marketing years as provided in this

section. Notwithstanding the foregoing sentence, the proclamation

of national marketing quotas for Burley tobacco for the 1986

through 1988 marketing years may be made not later than March 1,

1986. Within thirty days following such proclamation, the Secretary

shall conduct a referendum in accordance with section 1312(c) of

this title. If the Secretary determines that more than one-third

of the farmers voting oppose the national marketing quotas, he

shall announce the results and no marketing quotas or price support

shall be in effect for burley tobacco for the first marketing year

of such three-year period. Thereafter, the provisions of section

1312 of this title shall apply: Provided, That the national

marketing quota and farm marketing quotas shall be determined for

burley tobacco as provided in this section. Notice of the farm

marketing quota which will be in effect for his farm for the first

marketing year covered by any referendum under this section shall,

insofar as practicable, be mailed to the farm operator in

sufficient time to be received prior to the referendum.

Notwithstanding any other provision of law, for the 1986 marketing

year, the Secretary shall proclaim the national marketing quota for

Burley tobacco not later than 21 days after April 7, 1986, or

February 1, 1986, whichever is later. Any proclamation with

respect to the national marketing quota for the 1986 marketing year

for Burley tobacco made by the Secretary prior to April 7, 1986,

shall become void on April 7, 1986.

(b) Proclamations and referenda regarding dark air-cured tobacco

and types 22 and 23 fire-cured tobacco

Notwithstanding any other provision of law, the Secretary shall,

not later than February 1, 1983, proclaim national marketing quotas

for dark air-cured tobacco and for fire-cured tobacco, types 22 and

23 (hereinafter in this section referred to as ''fire-cured

tobacco'') for the three marketing years beginning October 1, 1983,

and determine and announce the amount of the marketing quota for

dark air-cured and for fire-cured tobacco for the marketing year

beginning October 1, 1983, as provided in this section. Within

thirty days following such proclamation, the Secretary shall

conduct a referendum of the farmers engaged in the production of

the 1982 crop of each of such kinds of tobacco to determine whether

they favor or oppose the establishment of farm marketing quotas on

a poundage basis for such kind of tobacco as provided in this

section for the three marketing years beginning October 1, 1983, in

lieu of quotas on an acreage basis in effect for the two marketing

years beginning October 1, 1983. If the Secretary determines that

one-half or more of the farmers voting in such referendum approve

marketing quotas on a poundage basis for such kind of tobacco, then

marketing quotas as provided in this section shall be in effect for

such kind of tobacco for the three marketing years beginning

October 1, 1983, and marketing quotas on an acreage basis shall

cease to be in effect for such kind of tobacco for the two

marketing years beginning on October 1, 1983. If marketing quotas

on a poundage basis are not approved for such kind of tobacco by at

least one-half of the farmers voting in such referendum, then

quotas on an acreage basis shall be in effect for such kind of

tobacco for the two marketing years beginning October 1, 1983.

If marketing quotas on an acreage basis are in effect for any

such kind of tobacco, if, for a period of not less than three

marketing years, a referendum has not been held under this section

to determine whether producers of such kind of tobacco favor

marketing quotas on a poundage basis for such kind of tobacco, and

if the Secretary, after conducting public hearings in the area in

which such kind of tobacco is produced, ascertains that producers

and other interested persons favor marketing quotas on a poundage

basis for such kind of tobacco, then the Secretary shall, at the

time of the next announcement of the amount of the national

marketing quota, announce national marketing quotas for the next

three succeeding marketing years under this section. Within thirty

days of such proclamation, the Secretary shall conduct a referendum

of farmers engaged in the production of the most recent crop of

such kind of tobacco to determine whether they favor the

establishment of marketing quotas on a poundage basis for such kind

of tobacco as provided in this section for the next three

succeeding marketing years. If the Secretary determines that more

than one-half of the farmers voting in such referendum approve

marketing quotas on a poundage basis under this section, then

quotas on that basis shall be in effect for the next three

succeeding marketing years and the marketing quotas on an acreage

basis shall cease to be in effect at the beginning of such

three-year period. If marketing quotas on a poundage basis are not

approved by more than one-half of the farmers voting in such

referendum, then the marketing quotas on an acreage basis shall

continue in effect as theretofore proclaimed under this chapter.

The Secretary shall determine and announce, not later than the

March 1 preceding the second and third marketing years of any

three-year period for which marketing quotas on a poundage basis

are in effect for any such kind of tobacco under this section, the

amount of the national marketing quota for such kind of tobacco for

each of such years. If marketing quotas on a poundage basis have

been made effective for such kind of tobacco under this section,

then the Secretary shall, not later than March 1 of the last of

three consecutive marketing years for which marketing quotas are in

effect for such kind of tobacco under this section, proclaim a

national marketing quota for such kind of tobacco for the next

three succeeding marketing years as provided in this section. The

Secretary shall conduct extensive hearings in the area in which

such kind of tobacco is produced to ascertain whether producers

favor marketing quotas on an acreage basis or on a poundage basis

and shall proclaim the quota on the basis he determines most

producers of such kind of tobacco favor. Within thirty days

following such proclamation, the Secretary shall conduct a

referendum in accordance with section 1312(c) of this title. If

more than one-half of the farmers voting in such referendum oppose

the national marketing quotas, then the Secretary shall announce

the results and no marketing quotas or price support shall be in

effect for such kind of tobacco and the national marketing quota so

proclaimed shall not be in effect for the next three succeeding

marketing years. Thereafter the provisions of section 1312 of this

title shall apply: Provided, That the national marketing quota and

farm marketing quotas for such kind of tobacco shall be determined

for such kind of tobacco as provided in this section.

(c) Amount of national marketing quota, determination; national

reserve, establishment

(1) Except as provided in paragraph (3), the national marketing

quota determined under this section for any kind of tobacco for

which poundage quotas may be established for any marketing year

shall be the amount of such kind of tobacco produced in the United

States which the Secretary estimates will be utilized in the United

States and will be exported during such marketing year, adjusted

upward or downward in such amount as the Secretary, in his

discretion, determines is desirable for the purpose of maintaining

an adequate supply or for effecting an orderly reduction of

supplies to the reserve supply level.

(2) For each marketing year for which marketing quotas are in

effect for a kind of tobacco under this section, the Secretary in

his discretion may establish a reserve with respect to such kind of

tobacco (hereinafter referred to as the ''national reserve'') from

the national marketing quota for such kind of tobacco in an amount

not in excess of 1 per centum of such national marketing quota to

be available for making corrections and adjusting inequities in

farm marketing quotas, and for establishing marketing quotas for

new farms (that is, farms for which farm marketing quotas are not

otherwise established).

(3)(A) For the 1986 and each subsequent crop of Burley tobacco,

the national marketing quota for any marketing year shall be the

quantity of Burley tobacco, as determined by the Secretary, that is

not more than 103 percent nor less than 97 percent of the total of

-

(i) the aggregate of the quantities of Burley tobacco that

domestic manufacturers of cigarettes estimate the manufacturers

intend to purchase on the United States auction markets or from

producers during the marketing year, as compiled and determined

under section 1314g of this title;

(ii) the average annual quantity of Burley tobacco exported

from the United States during the 3 marketing years immediately

preceding the marketing year for which the determination is being

made; and

(iii) the quantity, if any, of Burley tobacco that the

Secretary, in the discretion of the Secretary, determines is

necessary to increase or decrease the inventories of the

producer-owned cooperative marketing associations that have

entered into loan agreements with the Commodity Credit

Corporation to make price support available to producers of

Burley tobacco to establish or maintain such inventories, in the

aggregate, at the reserve stock level for Burley tobacco.

(B) Except as provided in subparagraph (D), in determining the

quantity of Burley tobacco necessary to establish or maintain the

inventories of the producer associations at the reserve stock level

under subparagraph (A)(iii) -

(i) the Secretary shall provide for initially attaining the

reserve stock level over a period of 5 years; and

(ii) any downward adjustment in such inventories of Burley

tobacco may not exceed the greater of -

(I) 35,000,000 pounds; or

(II) 50 percent of the quantity by which -

(aa) the total inventories of Burley tobacco of the

producer-owned cooperative marketing associations that have

entered into loan agreements with the Commodity Credit

Corporation to make price support available to producers of

Burley tobacco; exceed

(bb) the reserve stock level for Burley tobacco.

(C) Notwithstanding any other provision of law -

(i) the national marketing quota for Burley tobacco for each of

the 1986 through 1989 marketing years for such tobacco shall not

be less than 94 percent of the national marketing quota for such

tobacco for the preceding marketing year; and

(ii) the national marketing quota for Burley tobacco for each

of the 1990 through 1996 marketing years for such tobacco shall

not be less than 90 percent of the national marketing quota for

such tobacco for the preceding marketing year, except that, in

the case of each of the 1995 and 1996 crops of Burley tobacco,

the Secretary may waive the requirements of this clause if the

Secretary determines that the requirements would likely result in

inventories of the producer-owned cooperative marketing

associations for Burley tobacco described in section 1314h(a)(2)

of this title to exceed 150 percent of the reserve stock level

for Burley tobacco.

(D) Nonapplicability of downward adjustment. - If the Secretary

determines for any of the 2001 or subsequent crop years that

noncommitted pool stocks of Burley tobacco are equal to or less

than the reserve stock level established under this paragraph,

subparagraph (B) shall not apply to the crop year for which the

determination is made and all subsequent crop years.

(d) Farm yields; determination; limitation

When a national marketing quota is first proclaimed for a kind of

tobacco under this section, the Secretary shall through local

committees determine a farm yield for each farm for which an

acreage allotment for such kind of tobacco was established for the

marketing year beginning October 1, 1970, in the case of burley

tobacco, and for the previous marketing year, in the case of dark

air-cured tobacco and fire-cured tobacco. Such yield shall be

determined by averaging the yield per acre for the four highest

years of the five consecutive years beginning with the 1966 crop

year, in the case of burley tobacco, and the immediately preceding

5 crop years, in the case of dark air-cured tobacco and fire-cured

tobacco: Provided, That if the kind of tobacco involved was

produced on the farm in fewer than five of such years, the farm

yield shall be the simple average of the yields obtained in the

years during such period that such kind of tobacco was produced on

the farm: Provided further, That if no such kind of tobacco was

produced on the farm but the farm was considered as having planted

such kind of tobacco during the immediately preceding five years,

the farm yield will be appraised on the basis of the yields

established for similar farms in the area on which such kind of

tobacco was produced during such five-year period: And provided

further, That the farm yield established for any farm shall not

exceed three thousand five hundred pounds per acre, in the case of

burley tobacco, and three thousand pounds per acre, in the case of

dark air-cured tobacco and fire-cured tobacco: And provided

further, That, when a marketing quota program for dark air-cured

tobacco or for fire-cured tobacco is first established under this

section, farm yields so determined with respect to dark air-cured

tobacco or fire-cured tobacco, as the case may be, shall be

adjusted proportionately so that the weighted average of such farm

yields is equal to the national average yield goal for dark

air-cured tobacco or fire-cured tobacco, as the case may be.

(e) Farm marketing quotas; preliminary quotas, determination,

limitation; succeeding years, quota computation, limitations,

increase and reduction of quotas; new farms, limitation

A preliminary farm marketing quota shall be determined for each

farm for which a burley tobacco acreage allotment was established

for the marketing year beginning October 1, 1970, by multiplying

the farm yield determined under subsection (d) of this section by

the farm acreage allotment (prior to any reduction for violation of

regulations issued pursuant to the chapter) established for such

farm for the marketing year beginning October 1, 1970. A

preliminary farm marketing quota shall be determined for each farm

for which a dark air-cured tobacco or fire-cured tobacco acreage

allotment was established for the previous marketing year, by

multiplying the farm yield determined under such subsection by the

farm acreage allotment (prior to any such reduction) established

for such farm for the previous marketing year. For each farm for

which such a preliminary farm marketing quota is determined, a farm

marketing quota for the first year shall be determined by

multiplying the preliminary farm marketing quota by a national

factor obtained by dividing the national marketing quota determined

under subsection (c) of this section (less the national reserve) by

the sum of all preliminary farm marketing quotas as determined

under this subsection: Provided, That such national factor shall

not be less than 95 per centum.

The farm marketing quota for each succeeding year shall be

determined by multiplying the previous year's farm marketing quota

by a national factor obtained by dividing the national marketing

quota determined under subsection (c) of this section (less the

national reserve) by the sum of the farm marketing quotas for the

immediately preceding year for all farms for which marketing quotas

for the kind of tobacco involved will be determined for such

succeeding marketing year: Provided, That, except in the case of

Burley tobacco, such national factor shall not be less than 90 per

centum: Provided further, That for the marketing years beginning

October 1, 1972, and October 1, 1973, the farm marketing quota for

any farm shall not be less than the smaller of (1) one-half acre

times the farm yield times one-half the sum of the figure one and

the national factor for the current year, or (2) the farm marketing

quota for the immediately preceding marketing year times one-half

the sum of the figure one and the national factor for the current

year. The farm marketing quota so computed for any farm for any

year shall be increased by the number of pounds by which marketings

from the farm during the immediately preceding year were less than

the farm marketing quota (after adjustments), except that (1) any

such increase shall not exceed the amount of the farm marketing

quota (including leased pounds) for the immediately preceding

marketing year prior to any increase for undermarketings or

decrease for overmarketings, and (2) the aggregate of such

increases for all farms for any crop year may not exceed 10 percent

of the national basic quota for the preceding crop year. The farm

marketing quota so computed for each farm for any year shall be

reduced by the number of pounds by which marketing from the farm

during the immediately preceding year exceeded the farm marketing

quota (after adjustments): Provided, That if, on account of excess

marketings in the preceding year, the farm marketing quota is

reduced to zero pounds without reflecting the entire reduction

required, the additional reduction required shall be made in

subsequent marketing years.

The farm marketing quota for a new farm shall be the number of

pounds determined by the county committee with approval of the

State committee to be fair and reasonable for the farm on the basis

of the past experience of the farm operator with respect to the

kind of tobacco involved: the land, labor, and equipment available

for the production of such kind of tobacco; crop rotation

practices, and the soil and other physical factors affecting the

production of such kind of tobacco: Provided, That the farm

marketing quota for any such new farm shall not exceed 50 per

centum of the average of the farm marketing quotas for similar

farms for which farm marketing quotas are otherwise established:

Provided further, That the number of pounds allocated to all new

farms shall not exceed that portion of the national reserve

provided by the Secretary for establishing quotas for new farms.

(f) Reductions for false information

When a poundage program is in effect for any kind of tobacco

under this section, the farm marketing quota next established for

any farm shall be reduced by the amount of such kind of tobacco

produced on any farm (1) which is marketed as having been produced

on a different farm; (2) for which proof of disposition is not

furnished as required by the Secretary; and (3) as to which any

producer on the farm files, or aids or acquiesces in the filing of,

any false report with respect to the production or marketings of

tobacco: Provided, That if the Secretary through the local

committee finds that no person connected with such farm caused,

aided, or acquiesced in any such irregularity, the next established

farm marketing quota shall not be reduced under this subsection.

The reductions required under this subsection shall be in addition

to any other adjustments made pursuant to this section.

(g) Leases and transfers of farm quotas; limitations

(1) When a poundage program is in effect for any kind of tobacco

under this section, farm marketing quotas (after adjustments) for

such kind of tobacco may be leased and transferred to other farms

in the same county under the terms and conditions contained in

section 1314d of this title: Provided, That such leases and

transfers shall be on a pound for pound basis: Provided further,

That any adjustment for undermarketings or overmarketings shall be

attributed to the farm to which leased and transferred: Provided

further, That not more than thirty thousand pounds of Burley

tobacco quota may be leased and transferred to any farm under this

section: Provided further, That a lease and transfer of Burley

tobacco quota shall not be effective for any crop year unless a

record of the transfer is filed with the county committee not later

than July 1 of that crop year or, if such record of the transfer is

filed with the county committee after July 1, the county committee

determines with the concurrence of the State committee that all

interested parties agreed to such lease and transfer before July 1

and that the failure to file such record of the transfer did not

result from gross negligence on the part of any party to such lease

and transfer: And provided further, That the marketing quota

determined for any farm subsequent to such lease and transfer shall

not exceed an amount determined by multiplying the farm yield

established under subsection (d) of this section by 50 per centum

of the acreage of cropland in the farm.

(2) Effective for the 1991 and subsequent crop years, the

Secretary may, during any one year, and subject to such rules as

the Secretary deems appropriate, permit the sale of a burley

tobacco quota from one farm to another farm in the same county if

the buyer, who is an active burley tobacco producer, is not buying

an amount larger than 30 percent of the existing quota for the

buyer's farm, or 20,000 pounds whichever is greater. For purposes

of this subsection, the term ''active burley tobacco producer''

means any person who shared in the risk of producing a crop of

burley tobacco in not less than one of the three years preceding

the year involved, or any person who certified to the Secretary, in

such form and manner as the Secretary shall by regulation

prescribe, their intent to become an active burley tobacco

producer. A person shall be considered to have shared in the risk

of producing a crop of burley tobacco if -

(A) the investment of such person in the production of such

crop is not less than 20 percent of the proceeds of the sale of

such crop;

(B) the investment of such person's return on such investment

is dependent solely on the sale price of such crop; and

(C) such person may not receive any of such return before the

sale of such crop.

(3) No sale of burley tobacco quota from a farm shall be

permitted, under paragraph (2), if any sale of quota to the same

farm has been made within the three immediately preceding crop

years. A sale of burley tobacco quota shall not be effective for a

crop year unless a record of the sale is filed with the county

committee not later than July 1 of the crop year. The marketing

quota determined for any farm subsequent to such sale shall not

exceed an amount determined by multiplying the farm yield

established under subsection (d) of this section by 50 percent of

the acreage of cropland in the farm.

(h) Loss of quotas through underplanting

Effective with the marketing year beginning October 1, 1994, no

marketing quota, other than a new farm marketing quota, shall be

established for a farm on which no burley tobacco was planted or

considered planted in any two of the three years immediately

preceding the year for which farm marketing quotas are being

established.

(i) Marketing penalties

When marketing quotas under this section are in effect,

provisions with respect to penalties for the marketing of excess

tobacco and the other provisions contained in section 1314 of this

title shall apply, except that:

(1) No penalty on excess tobacco shall be due or collected until

103 per centum of the farm marketing quota (after adjustments) for

a farm has been marketed, but with respect to each pound of tobacco

marketed in excess of such percentage the full penalty rate shall

be due, payable, and collected at the time of marketing on each

pound of tobacco marketed, and any tobacco marketed in excess of

100 per centum of the farm marketing quota (after adjustments) will

require a reduction in subsequent farm marketing quotas in

accordance with subsection (e) of this section: Provided, That if

the Secretary, in his discretion, determines it is desirable to

encourage additional marketings of any grades of the kind of

tobacco involved during any marketing year to insure traditional

market patterns to meet the normal demands of export and domestic

markets, he may authorize the marketing of such grades without the

payment of penalty or deduction from subsequent quotas to the

extent of 5 per centum of the farm marketing quota for the farm on

which the tobacco was produced, and such marketings shall be

eligible for price support.

(2) The provisions with respect to penalties contained in the

third sentence of section 1314(a) of this title shall be revised to

read: ''If any producer falsely identifies or fails to account for

the disposition of any tobacco, the Secretary, in lieu of assessing

and collecting penalties based on actual marketings of excess

tobacco, may elect to assess a penalty computed by multiplying the

full penalty rate by an amount of tobacco equal to 25 per centum of

the farm marketing quota (after adjustments) and the penalty in

respect thereof shall be paid and remitted by the producer.''

(3) The provisions contained in the fourth sentence of section

1314(a) of this title shall not be applicable. For the first year

a marketing quota program established under the provisions of this

section is in effect with respect to burley tobacco, the farm

marketing quota determined under the provisions of subsection (e)

of this section shall receive a temporary upward adjustment equal

to the amount of carryover penalty-free burley tobacco for the

farm. For subsequent years, the provisions of subsection (c) of

this section shall apply.

(j) Regulations

The Secretary shall prescribe such regulations as he considers

necessary for carrying out the provisions of this section.

(k) Lease and transfer of burley tobacco quota assigned

(1) Notwithstanding any other provision of this section, the

Secretary may permit, after July 1 of any crop year, the lease and

transfer of burley tobacco quota assigned to a farm if -

(A) the planted acreage of burley tobacco on the farm to which

the quota is assigned is determined by the Secretary to be

sufficient to produce the effective farm marketing quota under

average conditions; and

(B) the farm's expected production of burley tobacco is less

than 80 percent of the farm's effective marketing quota as a

result of a natural disaster condition.

(2) Any lease and transfer of quota under this subsection may be

made to any other farm within the same State in accordance with

regulations issued by the Secretary.

(3) Limitation. - The total quantity of quota leased or

transferred to a farm during a crop year under this subsection may

not exceed 15 percent of the quota on the farm that existed prior

to any such lease or transfer for the crop year.

(l) Lease and transfer of Burley tobacco quota

(1) Approval by producers

Notwithstanding any other provision of this section, the

Secretary may permit the lease and transfer of a Burley tobacco

quota from one farm in a State to any other farm in the State if,

in a State-wide referendum conducted by the Secretary, a majority

of the active Burley tobacco producers voting in the referendum

approve the use of that type of lease and transfer.

(2) Application

This subsection shall apply only to the States of Tennessee,

Ohio, Indiana, Kentucky, and Virginia.

(m) Computerized recordkeeping system for Burley tobacco quota and

acreage

(1) Producer reports

Each person that owns a farm for which a Burley tobacco

marketing quota is established under this chapter shall annually

file with the Secretary a report describing the acreage planted

to Burley tobacco on the farm.

(2) Computerized recordkeeping system

Not later than 180 days after June 20, 2000, the Secretary

shall establish a computerized recordkeeping system that contains

all information reported under paragraph (1) and related records,

as determined by the Secretary.

(n) Sale of Burley tobacco quota

Notwithstanding any other provision of this section, if a person

that owns a farm for which a Burley tobacco marketing quota is

established under this chapter sells all or part of the acreage on

the farm to a buyer, the Secretary shall permit the seller and

buyer of the acreage to determine the percentage of the quota that

is transferred with the acreage sold.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 319, as added Pub. L.

92-10, Sec. 1, Apr. 14, 1971, 85 Stat. 23; amended Pub. L. 97-218,

title III, Sec. 303(b)-(j), July 20, 1982, 96 Stat. 211-214; Pub.

L. 98-59, Sec. 2, July 25, 1983, 97 Stat. 296; Pub. L. 98-180,

title II, Sec. 211, Nov. 29, 1983, 97 Stat. 1149; Pub. L. 99-241,

Sec. 2, Jan. 30, 1986, 100 Stat. 3; Pub. L. 99-272, title I, Sec.

1103(c), 1104(b), (d), 1105(a)(2), 1107, Apr. 7, 1986, 100 Stat.

86, 89-91; Pub. L. 100-387, title III, Sec. 304(a)(1), Aug. 11,

1988, 102 Stat. 948; Pub. L. 101-134, Sec. 2(a)(1), Oct. 30, 1989,

103 Stat. 781; Pub. L. 101-577, Sec. 2(a), (b), (d), (e), Nov. 15,

1990, 104 Stat. 2856, 2857; Pub. L. 102-237, title I, Sec. 116(1),

Dec. 13, 1991, 105 Stat. 1840; Pub. L. 103-66, title I, Sec.

1106(d)(1), Aug. 10, 1993, 107 Stat. 323; Pub. L. 106-78, title

VII, Sec. 755(a), Oct. 22, 1999, 113 Stat. 1170; Pub. L. 106-224,

title II, Sec. 204(b)(9)-(12), June 20, 2000, 114 Stat. 403.)

-REFTEXT-

REFERENCES IN TEXT

The chapter, referred to in subsecs. (b), (e), (m)(1), and (n),

was in the original ''the Act'' meaning act Feb. 16, 1938, ch. 30,

52 Stat. 31, as amended, known as the Agricultural Adjustment Act

of 1938, which is classified principally to this chapter (Sec. 1281

et seq.).

-MISC2-

AMENDMENTS

2000 - Subsec. (c)(3)(B). Pub. L. 106-224, Sec. 204(b)(9)(A),

substituted ''Except as provided in subparagraph (D), in'' for

''In'' in introductory provisions.

Subsec. (c)(3)(D). Pub. L. 106-224, Sec. 204(b)(9)(B), added

subpar. (D).

Subsec. (e). Pub. L. 106-224, Sec. 204(b)(10)(A), in fifth

sentence, substituted '', except that (1)'' for '': Provided,

That'' and inserted before period at end '', and (2) the aggregate

of such increases for all farms for any crop year may not exceed 10

percent of the national basic quota for the preceding crop year''.

Subsec. (k)(3). Pub. L. 106-224, Sec. 204(b)(10)(B), added par.

(3).

Subsec. (l). Pub. L. 106-224, Sec. 204(b)(11), added subsec. (l)

and struck out former subsec. (l) which read as follows:

''Notwithstanding any other provision of this section, the

Secretary may permit the lease and transfer of a burley tobacco

quota from one farm in a State to any other farm in the State if a

majority of active burley tobacco producers within the State

approve such lease and transfer by a state-wide referendum to be

conducted by the Secretary. This subsection shall apply only to the

States of Tennessee, Ohio, Indiana, Kentucky, and Virginia.''

Subsecs. (m), (n). Pub. L. 106-224, Sec. 204(b)(12), added

subsecs. (m) and (n).

1999 - Subsec. (l). Pub. L. 106-78 inserted '', Ohio, Indiana,

Kentucky,'' after ''Tennessee''.

1993 - Subsec. (c)(3)(C)(ii). Pub. L. 103-66 substituted ''1996''

for ''1993'' and inserted before period at end '', except that, in

the case of each of the 1995 and 1996 crops of Burley tobacco, the

Secretary may waive the requirements of this clause if the

Secretary determines that the requirements would likely result in

inventories of the producer-owned cooperative marketing

associations for Burley tobacco described in section 1314h(a)(2) of

this title to exceed 150 percent of the reserve stock level for

Burley tobacco''.

1991 - Subsec. (l). Pub. L. 102-237 inserted ''in a State'' after

''one farm'', struck out ''of Tennessee'' after ''in the State'',

and inserted at end ''This subsection shall apply only to the

States of Tennessee and Virginia.''

1990 - Subsec. (g). Pub. L. 101-577, Sec. 2(a), designated

existing provisions as par. (1) and added pars. (2) and (3).

Pub. L. 101-577, Sec. 2(d), substituted ''thirty thousand

pounds'' for ''fifteen thousand pounds''.

Subsec. (h). Pub. L. 101-577, Sec. 2(b), substituted ''1994'' for

''1976'' and ''two of the three'' for ''of the five''.

Subsec. (l). Pub. L. 101-577, Sec. 2(e), added subsec. (l).

1989 - Subsec. (d). Pub. L. 101-134, Sec. 2(a)(1)(A), substituted

''for the previous marketing year'' for ''October 1, 1982'' and

''immediately preceding 5 crop years'' for ''1978 crop year''.

Subsec. (e). Pub. L. 101-134, Sec. 2(a)(1)(B), substituted

''previous marketing year'' for ''October 1, 1982'' wherever

appearing in second sentence.

1988 - Subsec. (k). Pub. L. 100-387 added subsec. (k).

1986 - Subsec. (a). Pub. L. 99-272, Sec. 1104(d), inserted

provisions in third par. relating to the proclamation of the

national marketing quota for Burley tobacco not later than 21 days

after Apr. 7, 1986, or Feb. 1, 1986, whichever is later, and

declaring as void any quota by proclamation prior to that date.

Pub. L. 99-241 inserted in third par. provision that the

proclamation of national marketing quotas for Burley tobacco for

the 1986 through 1988 marketing years may be made not later than

Mar. 1, 1986.

Subsec. (b). Pub. L. 99-272, Sec. 1104(b), which directed the

substitution of ''March 1'' for ''February 1'' wherever appearing

in the fourth paragraph, was executed by making the substitution in

the third paragraph, as the probable intent of Congress.

Subsec. (c). Pub. L. 99-272, Sec. 1103(c)(1), designated existing

provisions as pars. (1) and (2), and in par. (1) as so designated,

substituted ''Except as provided in paragraph (3), the'' for

''The'', struck out ''With respect to burley tobacco, any such

downward adjustment shall not exceed 10 per centum of such

estimated utilization and exports.'', and added par. (3).

Subsec. (e). Pub. L. 99-272, Sec. 1103(c)(2), inserted in second

par. '', except in the case of Burley tobacco,'' after ''Provided,

That''.

Subsec. (g). Pub. L. 99-272, Sec. 1107, inserted provisions

relating to filing of record of transfer after July 1 with the

concurrence of the State committee that all parties agreed to such

lease and transfer before July 1, and that failure to file did not

result from gross negligence.

Subsec. (i)(1). Pub. L. 99-272, Sec. 1105(a)(2), substituted

''103 per centum'' for ''110 per centum''.

1983 - Subsec. (c). Pub. L. 98-59, Sec. 2(1), substituted ''10

per centum'' for ''5 per centum'' after ''downward adjustment shall

not exceed''.

Subsec. (e). Pub. L. 98-59, Sec. 2(2), substituted in second par.

''90 per centum'' for ''95 per centum'' after ''Provided, That such

national factor shall not be less than''.

Subsec. (g). Pub. L. 98-180 substituted provisos that not more

than fifteen thousand pounds of Burley tobacco quota be leased and

transferred to any farm under this section and that a lease or

transfer of Burley tobacco quota not be effective for any crop year

unless a record of the transfer is filed with the county committee

not later than July 1 of that crop year for proviso that not more

than thirty thousand pounds of burley tobacco be leased and

transferred to any farm under this section.

1982 - Subsec. (a). Pub. L. 97-218, Sec. 303(b), transferred

former provisions of subsec. (b) into subsec. (a), as unlettered

third paragraph of subsec. (a), and, in that paragraph, substituted

''shall be in effect for burley tobacco'' for ''shall be in effect

for such kind of tobacco'' in fourth sentence thereof, inserted

''for burley tobacco'' before ''under this section'' wherever

appearing in first and second sentences thereof, and before ''as

provided in this section'' in second proviso.

Subsec. (b). Pub. L. 97-218, Sec. 303(c), added subsec. (b).

Former subsec. (b) was transferred into subsec. (a) as an

unlettered paragraph and amended.

Subsec. (c). Pub. L. 97-218, Sec. 303(d), substituted ''The

national marketing quota determined under this section for any kind

of tobacco for which poundage quotas may be established for any

marketing year shall be the amount of such kind of tobacco

produced'' for ''The national marketing quota determined under this

section for burley tobacco for any marketing year shall be the

amount produced'', substituted ''With respect to burley tobacco,

any such downward adjustment'' for ''Any such downward

adjustment'', substituted ''marketing quotas are in effect for a

kind of tobacco under this section'' for ''marketing quotas are in

effect under this section'', and substituted ''from the national

marketing quota for such kind of tobacco in an amount not in excess

of 1 per centum of such national marketing quota'' for ''from the

national marketing quota in an amount not in excess of 1 per centum

of the national marketing quota''.

Subsec. (d). Pub. L. 97-218, Sec. 303(e), substituted ''first

proclaimed for a kind of tobacco under this section'' for ''first

proclaimed under this section'', substituted ''for which an acreage

allotment for such kind of tobacco was established'' for ''for

which a burley tobacco acreage allotment was established'',

inserted '', in the case of burley tobacco, and October 1, 1982, in

the case of dark air-cured tobacco and fire-cured tobacco''

following ''beginning October 1, 1970'', substituted ''the 1966

crop year, in the case of burley tobacco, and the 1978 crop year,

in the case of dark air-cured tobacco and fire-cured tobacco'' for

''the 1966 crop year'', substituted ''Provided, That if the kind of

tobacco involved was produced'' for ''Provided, That if burley

tobacco was produced'', substituted ''such kind of tobacco'' for

''burley tobacco'' wherever appearing in the remainder of the first

proviso and in the second proviso, in the third proviso substituted

''And provided further, That the farm yield established for any

farm shall not exceed three thousand five hundred pounds per acre,

in the case of burley tobacco, and three thousand pounds per acre,

in the case of dark air-cured tobacco and fire-cured tobacco:'' for

''And provided further, That the farm yield established for any

farm shall not exceed three thousand five hundred pounds per

acre'', and inserted fourth proviso.

Subsec. (e). Pub. L. 97-218, Sec. 303(f), inserted provision

regarding the determination of preliminary farm marketing quotas

for each farm for which a dark air-cured tobacco or fire-cured

tobacco acreage allotment was established for the marketing year

beginning October 1, 1982, in fourth sentence substituted ''for all

farms for which marketing quotas for the kind of tobacco involved

will be determined'' for ''for all farms for which burley tobacco

marketing quotas will be determined'', and in seventh sentence

substituted ''experience of the farm operator with respect to the

kind of tobacco involved; the land, labor, and equipment available

for the production of such kind of tobacco; crop rotation

practices, and the soil and other physical factors affecting the

production of such kind of tobacco'' for ''burley tobacco

experience of the farm operator; the land, labor, and equipment

available for the production of burley tobacco; crop rotation

practices, and the soil and other physical factors affecting the

production of burley tobacco''.

Subsec. (f). Pub. L. 97-218, Sec. 303(g), substituted ''When a

poundage program is in effect for any kind of tobacco under this

section, the farm marketing quota next established for any farm

shall be reduced by the amount of such kind of tobacco'' for ''When

a poundage program is in effect under this section, the farm

marketing quota next established for any farm shall be reduced by

the amount of burley tobacco''.

Subsec. (g). Pub. L. 97-218, Sec. 303(h), substituted ''When a

poundage program is in effect for any kind of tobacco under this

section, farm marketing quotas (after adjustments) for such kind of

tobacco'' for ''When a poundage program is in effect under this

section, farm marketing quotas (after adjustments) for burley

tobacco'', and substituted ''Provided further, That not more than

thirty thousand pounds may be leased and transferred to any farm

under this section with respect to burley tobacco'' for ''Provided

further, That not more than fifteen thousand pounds may be leased

and transferred to any farm under this section''.

Subsec. (i)(1). Pub. L. 97-218, Sec. 303(i)(1), substituted ''to

encourage additional marketings of any grades of the kind of

tobacco involved'' for ''to encourage additional marketings of any

grades of burley tobacco'' in proviso.

Subsec. (i)(3). Pub. L. 97-218, Sec. 303(i)(2), substituted ''is

in effect with respect to burley tobacco'' for ''is in effect''.

EFFECTIVE DATE OF 2000 AMENDMENTS

Pub. L. 106-554, Sec. 1(a)(4) (div. A, Sec. 101(10)), Dec. 21,

2000, 114 Stat. 2763, 2763A-172, provided that: ''Notwithstanding

any other provision of law, section 204(b)(10)(B) of Public Law

106-224 (amending this section) shall not be effective until July

1, 2001''. (

Pub. L. 106-554, Sec. 1(a)(4) (div. A, Sec. 101(11)), Dec. 21,

2000, 114 Stat. 2763, 2763A-172, provided that: ''The effective

date of this section (enacting provisions set out above) is the

date of enactment of the Agriculture, Rural Development, Food and

Drug Administration, and Related Agencies Appropriations Act, 2001

(Pub. L. 106-387, approved Oct. 28, 2000).'')

Pub. L. 106-472, title III, Sec. 302, Nov. 9, 2000, 114 Stat.

2069, provided that: ''The amendments made by section 204(b)(10)(A)

of the Agricultural Risk Protection Act of 2000 (Pub. L. 106-224,

amending this section) shall apply beginning with undermarketings

of the 2001 crop of burley tobacco and with marketings of the 2002

crop of burley tobacco.''

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1105(a) of Pub. L. 99-272 provided that the amendment

made by that section is effective for 1986 and subsequent crops of

tobacco.

Section 1107 of Pub. L. 99-272 provided that the amendment made

by that section is effective with respect to 1985 and subsequent

crops of Burley tobacco.

EFFECTIVE DATE OF 1983 AMENDMENT

Section 211 of Pub. L. 98-180 provided that the amendment made by

that section is effective for 1984 and subsequent crops of tobacco.

BURLEY TOBACCO QUOTA ADJUSTMENT

Section 304(b) of Pub. L. 100-387 provided that:

''Notwithstanding any other provision of law, if a producer has

produced burley tobacco in 1988 in an amount less than the

producer's farm marketing quota for 1988 due to natural disaster,

the Secretary may adjust the producer's burley tobacco farm

marketing quota for the 1989 crop, as established under section 319

of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314(e) (7

U.S.C. 1314e)), by adding the accumulated undermarketings of the

basic quota for 1988 crop, including undermarketings of leased

quota, to the producer's basic quota for the 1989 crop, except that

such adjustment may not exceed 125 percent of the producer's basic

quota.''

RULEMAKING PROCEDURES

Secretary of Agriculture to implement amendments by Pub. L.

99-272 without regard to provisions requiring notice and other

procedures for public participation in rulemaking contained in

section 553 of Title 5, Government Organization and Employees, or

in any other directive of the Secretary, see section 1108(c) of

Pub. L. 99-272, set out as a note under section 1301 of this title.

BURLEY TOBACCO MARKETING YEARS 1971, 1972, AND 1973

Action of Secretary under section 1312 of this title for burley

tobacco for marketing years 1971, 1972, and 1973, prior to Apr. 14,

1971, without any effect, see section 4 of Pub. L. 92-10, set out

as a note under section 1312 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1301, 1378, 1445 of this

title.

-CITE-

7 USC Sec. 1314f 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314f. Nonquota tobacco subject to quota

-STATUTE-

(a) Notwithstanding any other provision of law, effective with

respect to the 1982 and subsequent crops of tobacco, any kind of

tobacco for which marketing quotas are not in effect that is

produced in an area where marketing quotas are in effect for any

kind of tobacco shall be subject to the quota for the kind of

tobacco for which marketing quotas are in effect in that area. If

marketing quotas are in effect in an area for more than one kind of

quota tobacco, nonquota tobacco produced in the area shall be

subject to the quota for the kind of quota tobacco produced in the

area having the highest price support under the Agricultural Act of

1949 (7 U.S.C. 1421 et seq.).

(b) Subsection (a) of this section shall not apply to -

(1) Maryland (type 32) tobacco when it is nonquota tobacco and

produced in a quota area on a farm for which a marketing quota

for Maryland (type 32) tobacco was established when marketing

quotas for such kind of tobacco were last in effect;

(2) cigar-filler (type 41) tobacco when it is nonquota tobacco

and produced in Pennsylvania;

(3) cigar-wrapper (type 61) tobacco when it is nonquota tobacco

and produced in Connecticut and Massachusetts, and cigar-wrapper

(type 62) tobacco when it is nonquota tobacco and produced in

Georgia and Florida;

(4) tobacco produced in a quota area that is represented to be

nonquota tobacco and that is readily and distinguishably

different from all kinds of quota tobacco, as determined through

the application of the standards issued by the Secretary for the

inspection and identification of tobacco; and

(5) tobacco when it is nonquota tobacco and produced in a quota

area in which the total of the acreage allotments for quota

tobacco established for farms is less than twenty acres.

Notwithstanding the provisions of section 1312(c) of this title,

producers of such nonquota tobacco shall not be eligible to vote

in the first referendum for such nonquota tobacco conducted by

the Secretary under such section after July 20, 1982.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 320, as added Pub. L.

93-411, Sept. 3, 1974, 88 Stat. 1089; amended Pub. L. 95-592, Sec.

17, Nov. 4, 1978, 92 Stat. 2534; Pub. L. 97-98, title XI, Sec.

1108, Dec. 22, 1981, 95 Stat. 1266; Pub. L. 97-218, title II, Sec.

204, July 20, 1982, 96 Stat. 206.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1949, referred to in subsec. (a), 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. For complete classification of this Act to the Code, see

Short Title note set out under section 1421 of this title and

Tables.

-MISC2-

AMENDMENTS

1982 - Subsec. (b)(5). Pub. L. 97-218 added par. (5).

1981 - Pub. L. 97-98 designated existing provision as subsec.

(a), provided that application of this section be to the 1982 and

subsequent crops instead of crops beginning with the 1975 crop,

substituted provision that any kind of tobacco grown in an area

where marketing quotas are in effect be subject to the quota for

the kind of tobacco for which marketing quotas are in effect in

that area for provision that any tobacco produced in an area where

producers who are engaged in the production of a kind of tobacco

traditionally produced in the area have approved marketing quotas

be subject to the quota for the kind of tobacco traditionally

produced in the area, and struck out provisions exempting nonquota

tobacco from this section if the Secretary or designee finds that

such nonquota tobacco is readily and distinguishably different from

any kind of tobacco produced under quota and providing that no

marketing quota penalty be assessed as a result of the marketing of

1975 crop Maryland tobacco (Type 32) which is determined to be

Burley tobacco (Type 31), and added subsec. (b).

1978 - Pub. L. 95-592 inserted provision relating to

nonassessment of marketing quota penalties as a result of marketing

of 1975 crop Maryland tobacco (Type 32) which was determined to be

Burley tobacco (Type 31) under provisions of this section.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-218 effective July 20, 1982, but not to

apply to any lease of a Flue-cured tobacco acreage allotment or

marketing quota entered into under the Agricultural Adjustment Act

of 1938 (7 U.S.C. 1281 et seq.) before that date, see section 207

of Pub. L. 97-218, set out as a note under section 1314b of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 1108 of Pub. L. 97-98 provided that the amendment made by

that section is effective beginning with the 1982 crop of tobacco.

-CITE-

7 USC Sec. 1314g 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314g. Submission of purchase intentions by cigarette

manufacturers

-STATUTE-

(a) Quantity of intended purchases; aggregation not to allow

identification

(1) Not later than December 1 of any marketing year with respect

to Flue-cured tobacco (or, in the case of the 1986 crop, 14 days

after April 7, 1986) and January 15 of any marketing year with

respect to Burley tobacco (or, in the case of the 1986 crop, 14

days after April 7, 1986, or January 15, 1986, whichever is later),

each domestic manufacturer of cigarettes shall submit to the

Secretary a statement, by kind, of the quantity of Flue-cured

tobacco and Burley tobacco (for which a national marketing quota is

in effect or for which the Secretary has proclaimed a national

marketing quota for the next succeeding marketing year) that the

manufacturer intends to purchase, directly or indirectly, on the

United States auction markets or from producers during the next

succeeding marketing year (hereafter in this section referred to as

the ''quantity of intended purchases'').

(2) The Secretary shall aggregate the quantities of intended

purchases in a manner that will not allow the identification of the

quantity of intended purchases of any manufacturer.

(b) Failure to submit; determination of quantity of intended

purchases by Secretary

If any domestic manufacturer of cigarettes fails to submit to the

Secretary a statement of the quantity of intended purchases of the

manufacturer, as required by this section, the Secretary shall

establish the quantity of intended purchases to be attributed to

such manufacturer for purposes of this chapter, based on -

(1) the quantity of intended purchases submitted by such

manufacturer under this section for the marketing year

immediately preceding the marketing year for which the

determination is being made; or

(2) if such manufacturer did not submit a statement of the

quantity of intended purchases of the manufacturer for the

marketing year immediately preceding the marketing year for which

the determination is being made, the most recent information

available to the Secretary.

(c) Confidentiality of information; disclosure; publication of

identity of violators; penalties

(1) All information relating to the quantity of intended

purchases that is submitted by domestic manufacturers of cigarettes

under this section shall be kept confidential by all officers and

employees of the Department of Agriculture.

(2) Such information may only be disclosed by such officers or

employees in a suit or administrative hearing -

(A)(i) brought at the direction, or on the request, of the

Secretary; or

(ii) to which the Secretary or any officer of the United States

is a party; and

(B) involving enforcement of this chapter.

(3) Nothing in this section shall be considered to prohibit the

publication, by direction of the Secretary, of the name of any

person violating this chapter, together with a statement of the

particular provisions of the chapter violated by such person.

(4) Any officer or employee of the Department of Agriculture who

violates this subsection, on conviction, shall be -

(A) subject to a fine of not more than $1,000 or to

imprisonment for not more than 1 year, or to both; and

(B) removed from office.

(d) Exemption from public disclosure

Notwithstanding any other provision of law, a statement of the

quantity of intended purchases that is submitted under this section

shall be exempt from disclosure under section 552 of title 5.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 320A, as added Pub. L.

99-272, title I, Sec. 1103(d), Apr. 7, 1986, 100 Stat. 88.)

-MISC1-

EFFECTIVE DATE

Section 1103(d) of Pub. L. 99-272 provided that this section is

effective for 1986 and each subsequent crop of tobacco.

RULEMAKING PROCEDURES

For implementation of this section by the Secretary of

Agriculture without regard to the provisions requiring notice and

other procedures for public participation in rulemaking contained

in section 553 of Title 5, Government Organization and Employees,

or in any other directive of the Secretary, see section 1108(c) of

Pub. L. 99-272, set out as a note under section 1301 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1314c, 1314e, 1314h,

1314i, 1445-3 of this title.

-CITE-

7 USC Sec. 1314h 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314h. Purchase requirements; penalty

-STATUTE-

(a) Statement of quantity purchased during marketing year

(1) At the conclusion of each marketing year, on or before a date

prescribed by the Secretary, each domestic manufacturer of

cigarettes shall submit to the Secretary a statement, by kind, of

the quantity of Flue-cured and Burley quota tobacco purchased,

directly or indirectly, by such manufacturer during such marketing

year.

(2) The statement shall include, but not be limited to, the

quantity of each such kind of tobacco purchased by the manufacturer

on the United States auction markets, from producers, and from the

inventories of tobacco from the 1985 and subsequent crops of the

producer-owned cooperative marketing associations that have entered

into loan agreements with the Commodity Credit Corporation to make

price support available to producers of Flue-cured or Burley

tobacco.

(b) Failure to purchase at least 90 percent of quantity of intended

purchases; reduction in quantity of intended purchases

(1) Except as otherwise provided in this subsection, any domestic

manufacturer of cigarettes that fails, as determined by the

Secretary after notice and opportunity for a hearing, to purchase

during a marketing year on the United States auction markets, from

producers, or from the inventories of tobacco from the 1985 and

subsequent crops of the producer associations described in

subsection (a)(2) of this section a quantity of Flue-cured quota

tobacco and a quantity of Burley quota tobacco equal to at least 90

percent of the quantity of the intended purchases of Flue-cured

tobacco and Burley tobacco, respectively, submitted by such

manufacturer or established by the Secretary for such manufacturer

for that marketing year under section 1314g of this title (as that

quantity may be reduced under paragraph (2)) shall be subject to a

penalty as prescribed in subsection (c) of this section.

(2)(A) If the total quantity of Flue-cured or Burley quota

tobacco, respectively, marketed by producers at auction in the

United States during the marketing year in question is less than

the national marketing quota (including any adjustments for

overmarketings or undermarketings) for that kind of tobacco for

that marketing year, the quantity of intended purchases of each

domestic manufacturer of cigarettes, for purposes of paragraph (1),

shall be reduced by a percentage equal to the percentage by which

the total quantity marketed at auction in the United States during

the marketing year is less than the national marketing quota

(including any adjustments for overmarketings or undermarketings)

for that kind of tobacco for the marketing year.

(B) For purposes of this section, the term ''marketed'' shall

include disposition of tobacco by consigning the tobacco to a

producer association described in subsection (a)(2) of this section

for a price support advance.

(c) Penalty for failure to purchase specified amount

The amount of any penalty to be imposed on a manufacturer under

this section shall be determined by multiplying -

(1) twice the per pound assessment (as determined under section

1445-1 or 1445-2 of this title) for the kind of tobacco involved;

by

(2) the quantity by which -

(A) the purchases by such manufacturer on the United States

auction markets, from producers, or from the inventories of

tobacco from the 1985 and subsequent crops of the producer

associations described in subsection (a)(2) of this section of

Flue-cured and Burley quota tobacco, respectively, for the

marketing year; are less than

(B) 90 percent of the quantity of intended purchases of such

kinds of tobacco, respectively, submitted by the manufacturer

or established by the Secretary for such manufacturer for that

marketing year under section 1314g of this title (as that

quantity may be reduced under subsection (b)(2) of this

section).

(d) Transmission of penalty by Secretary; deposit in No Net Cost

Fund or Account

(1) An amount equivalent to the penalty collected by the

Secretary under this section shall be transmitted by the Secretary

to the appropriate producer-owned cooperative marketing association

that has entered into a loan agreement with the Commodity Credit

Corporation to make price support available to producers of

Flue-cured or Burley tobacco, as the case may be.

(2) Each association to which amounts are transmitted by the

Secretary under this section shall deposit such amounts in the No

Net Cost Fund or Account of such association in accordance with

section 1445-1 or 1445-2 of this title.

(e) Confidentiality of information submitted; disclosure;

publication of identity of violators; exemption from public

disclosure; penalties

The limitations on disclosure set forth in subsections (c) and

(d) of section 1314g of this title shall apply to information

submitted by domestic manufacturers of cigarettes under this

section with respect to the quantity of purchases of Flue-cured and

Burley quota tobacco during a marketing year. Any officer or

employee of the Department of Agriculture who violates such

limitations on disclosure shall be subject to the penalties set

forth in section 1314g(c)(4) of this title.

(f) ''Quota tobacco'' defined

As used in this section, the term ''quota tobacco'' means any

kind of tobacco for which marketing quotas are in effect or for

which marketing quotas are not disapproved by producers.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 320B, as added Pub. L.

99-272, title I, Sec. 1106(a), Apr. 7, 1986, 100 Stat. 90.)

-MISC1-

EFFECTIVE DATE

Section 1106(a) of Pub. L. 99-272 provided that this section is

effective for 1986 and subsequent crops of tobacco.

RULEMAKING PROCEDURES

For implementation of this section by the Secretary of

Agriculture without regard to the provisions requiring notice and

other procedures for public participation in rulemaking contained

in section 553 of Title 5, Government Organization and Employees,

or in any other directive of the Secretary, see section 1108(c) of

Pub. L. 99-272, set out as a note under section 1301 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1314c, 1314e, 1314i, 1372

of this title.

-CITE-

7 USC Sec. 1314i 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314i. Domestic marketing assessment

-STATUTE-

(a) Certification

A domestic manufacturer of cigarettes shall certify to the

Secretary, for each calendar year, the percentage of the quantity

of tobacco used by the manufacturer to produce cigarettes during

the year that is produced in the United States.

(b) Penalties

(1) In general

Subject to subsection (f) of this section, a domestic

manufacturer of cigarettes that has failed, as determined by the

Secretary after notice and opportunity for a hearing, to use in

the manufacture of cigarettes during a calendar year a quantity

of tobacco grown in the United States that is at least 75 percent

of the total quantity of tobacco used by the manufacturer, or to

comply with subsection (a) of this section, shall be subject to

the requirements of subsections (c), (d), and (e) of this

section.

(2) Failure to certify

For purposes of this section, if a manufacturer fails to comply

with subsection (a) of this section, the manufacturer shall be

presumed to have used only imported tobacco in the manufacture of

cigarettes produced by the manufacturer.

(3) Reports and records

(A) In general

The Secretary shall require manufacturers of domestic

cigarettes to make such reports and maintain such records as

are necessary to carry out this section. If the reports and

records are insufficient, the Secretary may request other

persons to provide supplemental information.

(B) Examinations

For the purpose of ascertaining the correctness of any report

or record required under this section, or of obtaining further

information required under this section, the Secretary and the

Office of Inspector General may examine such records, books,

and other materials as the Secretary has reason to believe may

be relevant. In the case of a manufacturer of domestic

cigarettes, the Secretary may charge a fee to the manufacturer

to cover the reasonable costs of any such examination.

(C) Penalties

Any person who fails to provide information required under

this paragraph or who provides false information under this

paragraph shall be subject to section 1001 of title 18.

(D) Confidentiality

Section 1314g(c) of this title shall apply to information

submitted by manufacturers of domestic cigarettes and other

persons under this paragraph.

(E) Disclosure

Notwithstanding any other provision of law, information on

the percentage or quantity of domestic or imported tobacco in

cigarettes or on the volume of cigarette production that is

submitted under this section shall be exempt from disclosure

under section 552 of title 5.

(c) Domestic marketing assessment

(1) In general

A domestic manufacturer of cigarettes described in subsection

(b) of this section shall remit to the Commodity Credit

Corporation a nonrefundable marketing assessment in accordance

with this subsection.

(2) Amount

The amount of an assessment imposed on a manufacturer under

this subsection shall be determined by multiplying -

(A) the quantity by which the quantity of imported tobacco

used by the manufacturer to produce cigarettes during a

preceding calendar year exceeds 25 percent of the quantity of

all tobacco used by the manufacturer to produce cigarettes

during the preceding calendar year; by

(B) the difference between -

(i) 1/2 of the sum of -

(I) the average price per pound received by domestic

producers for Burley tobacco during the preceding calendar

year; and

(II) the average price per pound received by domestic

producers for Flue-cured tobacco during the preceding

calendar year; and

(ii) the average price per pound of unmanufactured imported

tobacco during the preceding calendar year, as determined by

the Secretary.

(3) Collection

An assessment imposed under this subsection shall be -

(A) collected by the Secretary and transmitted to the

Commodity Credit Corporation; and

(B) enforced in the same manner as provided in section 1314h

of this title.

(d) Purchase of Burley tobacco

(1) In general

A domestic manufacturer of cigarettes described in subsection

(b) of this section shall purchase from the inventories of the

producer-owned cooperative marketing associations for Burley

tobacco described in section 1314h(a)(2) of this title, at the

applicable list price published by the association, the quantity

of tobacco described in paragraph (2).

(2) Quantity

Subject to paragraph (3), the quantity of Burley tobacco

required to be purchased by a manufacturer during a calendar year

under this subsection shall equal 1/2 of the quantity of imported

tobacco used by the manufacturer to produce cigarettes during the

preceding calendar year that exceeds 25 percent of the quantity

of all tobacco used by the manufacturer to produce cigarettes

during the preceding calendar year.

(3) Limitation

If the total quantity of Burley tobacco required to be

purchased by all manufacturers under paragraph (2) would reduce

the inventories of the producer-owned cooperative marketing

associations for Burley tobacco to less than the reserve stock

level for Burley tobacco, the Secretary shall reduce the quantity

of tobacco required to be purchased by manufacturers under

paragraph (2), on a pro rata basis, to ensure that the

inventories will not be less than the reserve stock level for

Burley tobacco.

(4) Noncompliance

If a manufacturer fails to purchase from the inventories of the

producer-owned cooperative marketing associations the quantity of

Burley tobacco required under this subsection, the manufacturer

shall be subject to a penalty of 75 percent of the average market

price (calculated to the nearest whole cent) for Burley tobacco

for the immediately preceding year on the quantity of tobacco as

to which the failure occurs.

(5) Purchase requirements

Tobacco purchased by a manufacturer under this subsection shall

not be included in determining the quantity of tobacco purchased

by the manufacturer under section 1314h of this title.

(e) Purchase of Flue-cured tobacco

(1) In general

A domestic manufacturer of cigarettes described in subsection

(b) of this section shall purchase from the inventories of the

producer-owned cooperative marketing association for Flue-cured

tobacco described in section 1314h(a)(2) of this title, at the

applicable list price published by the association, the quantity

of tobacco described in paragraph (2).

(2) Quantity

Subject to paragraph (3), the quantity of Flue-cured tobacco

required to be purchased by a manufacturer during a calendar year

under this subsection shall equal 1/2 of the quantity of imported

tobacco used by the manufacturer to produce cigarettes during the

preceding calendar year that exceeds 25 percent of the quantity

of all tobacco used by the manufacturer to produce cigarettes

during the preceding calendar year.

(3) Limitation

If the total quantity of Flue-cured tobacco required to be

purchased by all manufacturers under paragraph (2) would reduce

the inventories of the producer-owned cooperative marketing

association for Flue-cured tobacco to less than the reserve stock

level for Flue-cured tobacco, the Secretary shall reduce the

quantity of tobacco required to be purchased by manufacturers

under paragraph (2), on a pro rata basis, to ensure that the

inventories will not be less than the reserve stock level for

Flue-cured tobacco.

(4) Noncompliance

If a manufacturer fails to purchase from the inventories of the

producer-owned cooperative marketing association the quantity of

Flue-cured tobacco required under this subsection, the

manufacturer shall be subject to a penalty of 75 percent of the

average market price (calculated to the nearest whole cent) for

Flue-cured tobacco for the immediately preceding year on the

quantity of tobacco as to which the failure occurs.

(5) Purchase requirements

Tobacco purchased by a manufacturer under this subsection shall

not be included in determining the quantity of tobacco purchased

by the manufacturer under section 1314h of this title.

(f) Crop losses due to disasters

(1) In general

If the Secretary, in consultation with producer-owned

cooperative marketing associations, determines that because of

drought, insect or disease infestation, or other natural

disaster, or other condition beyond the control of producers, the

total quantity of a crop of domestic Burley tobacco or Flue-cured

tobacco that is harvested and suitable for marketing is

substantially less than the expected yield for the crop, and that

pool inventories for the kind of tobacco involved have been

depleted, effective for the calendar year following the year in

which the crop loss occurs, the Secretary may reduce the minimum

percentage of domestic tobacco specified in subsection (a) of

this section to a percentage below 75 percent, as determined by

the Secretary, that reflects the reduced availability of domestic

supplies of the kind of tobacco involved.

(2) Determination of expected yield

For purposes of paragraph (1), the Secretary shall determine

the expected yield for a crop of Burley tobacco or Flue-cured

tobacco by taking into consideration -

(A) the total acreage planted to the crop (including acreage

that the producers were prevented from planting because of a

condition referred to in paragraph (1)); and

(B) normal farm yields established for the crop.

(3) Deadline for determinations

The Secretary shall make determinations under paragraph (1)

about crop losses and announce the reduced percentage of the

domestic tobacco pool not later than November 30 of the year in

which the applicable crop of Burley tobacco or Flue-cured tobacco

is harvested.

(g) Effective date

This section shall be effective only for calendar year 1994.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 320C, as added Pub. L.

103-66, title I, Sec. 1106(a), Aug. 10, 1993, 107 Stat. 318;

amended Pub. L. 103-465, title IV, Sec. 422(a), Dec. 8, 1994, 108

Stat. 4964.)

-MISC1-

AMENDMENTS

1994 - Subsec. (g). Pub. L. 103-465 added subsec. (g).

EFFECTIVE DATE OF 1994 AMENDMENT

Section 422(e) of Pub. L. 103-465 provided that: ''This section

(amending this section, section 1445 of this title, and section

1313 of Title 19, Customs Duties, and enacting provisions set out

as a note under section 1445 of this title) and the amendments made

by this section shall be effective beginning on the effective date

of the Presidential proclamation, authorized under section 421 (set

out as a note under section 2135 of Title 19), establishing a

tariff-rate quota pursuant to Article XXVIII of the GATT 1947 or

the GATT 1994 with respect to tobacco.''

(Proc. No. 6821, Sept. 12, 1995, 60 F.R. 47663, effective Sept.

13, 1995, established tariff-rate quotas on certain tobacco.)

-CITE-

7 USC Sec. 1314j 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1314j. Tobacco production and marketing information

-STATUTE-

(a) In general

Notwithstanding any other provision of law, the Secretary may,

subject to subsection (b) of this section, release marketing

information submitted by persons relating to the production and

marketing of tobacco to State trusts or similar organizations

engaged in the distribution of national trust funds to tobacco

producers and other persons with interests associated with the

production of tobacco, as determined by the Secretary.

(b) Limitations

(1) In general

Information may be released under subsection (a) of this

section only to the extent that -

(A) the release is in the interest of tobacco producers, as

determined by the Secretary; and

(B) the information is released to a State trust or other

organization that is created to, or charged with, distributing

funds to tobacco producers or other parties with an interest in

tobacco production or tobacco farms under a national or State

trust or settlement.

(2) Exemption from release

The Secretary shall, to the maximum extent practicable, in

advance of making a release of information under subsection (a)

of this section, allow, by announcement, a period of at least 15

days for persons whose consent would otherwise be required by law

to effectuate the release, to elect to be exempt from the

release.

(c) Assistance

(1) In general

In making a release under subsection (a) of this section, the

Secretary may provide such other assistance with respect to

information released under subsection (a) of this section as will

facilitate the interest of producers in receiving the funds that

are the subject of a trust described in subsection (a) of this

section.

(2) Funds

The Secretary shall use amounts made available for salaries and

expenses of the Department to carry out paragraph (1).

(d) Records

(1) In general

A person that obtains information described in subsection (a)

of this section shall maintain records that are consistent with

the purposes of the release and shall not use the records for any

purpose not authorized under this section.

(2) Penalty

A person that knowingly violates this subsection shall be fined

not more than $10,000, imprisoned not more than 1 year, or both.

(e) Application

This section shall not apply to -

(1) records submitted by cigarette manufacturers with respect

to the production of cigarettes;

(2) records that were submitted as expected purchase intentions

in connection with the establishment of national tobacco quotas;

or

(3) records that aggregate the purchases of particular buyers.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 320D, as added Pub. L.

106-47, Sec. 1, Aug. 13, 1999, 113 Stat. 228, and Pub. L. 106-78,

title VII, Sec. 755(b), Oct. 22, 1999, 113 Stat. 1170; amended Pub.

L. 106-113, div. B, Sec. 1000(a)(5) (title II, Sec. 211), Nov. 29,

1999, 113 Stat. 1536, 1501A-295.)

-COD-

CODIFICATION

Pub. L. 106-47, Sec. 1, and Pub. L. 106-78, Sec. 755(b), enacted

substantially identical sections 320D to act of Feb. 16, 1938.

Section 755(b) of Pub. L. 106-78 was repealed by Pub. L. 106-113.

This section is based on the text of section 320D of act of Feb.

16, 1938, as added by Pub. L. 106-47, Sec. 1.

-MISC3-

AMENDMENTS

1999 - Pub. L. 106-113 repealed Pub. L. 106-78, Sec. 755(b). See

Codification note above.

-CITE-

7 USC Sec. 1315 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1315. Burley tobacco acreage allotments

-STATUTE-

The farm acreage allotment for burley tobacco for any year shall

not be less than the smallest of (1) the allotment established for

the farm for the immediately preceding year, (2) five-tenths of an

acre, or (3) 10 per centum of the cropland: Provided, however, That

no allotment of seven-tenths of an acre or less shall be reduced

more than one-tenth of an acre in any one year. The additional

acreage required under this section shall be in addition to the

State acreage allotments and the production on such acreage shall

be in addition to the national marketing quota.

-SOURCE-

(July 12, 1952, ch. 709, 66 Stat. 597; Mar. 31, 1955, ch. 21, Sec.

2, 69 Stat. 24.)

-COD-

CODIFICATION

Section was not enacted as a part of the Agricultural Adjustment

Act of 1938 which comprises this chapter.

-MISC3-

AMENDMENTS

1955 - Act Mar. 31, 1955, amended section generally by reducing

minimum acreage allotments.

EFFECTIVE DATE OF 1955 AMENDMENT

Act Mar. 31, 1955, provided that the amendment made by that act

is effective for the 1956 and subsequent crops of burley tobacco.

ACREAGE ALLOTMENT BASIS OF QUOTA; AMENDMENT OF CLAUSE (1) AND

PROVISO

Part of section 317(h) of act Feb. 16, 1938, ch. 30, title III,

as added by Pub. L. 89-12, Sec. 1, Apr. 16, 1965, 79 Stat. 72, and

classified as part of section 1314c(h) of this title, provided

that: ''Whenever the Secretary proclaims a quota on an acreage

allotment basis (in lieu of on an acreage poundage basis) -

''(A) the minimum acreage allotment for Burley tobacco for any

farm shall be determined under the provisions of the Act of July

12, 1952, as amended (7 U.S.C. 1315) instead of under the

preceding provisions of this subsection (section 1314c(h) of this

title);

''(B) clause (1) of the Act of July 12, 1952 (this section),

shall for such purpose read as follows: '(1) the allotment

established for the farm for the last preceding year for which a

quota was proclaimed on an acreage allotment basis'; and

''(C) the proviso of that Act (this section) shall for such

purpose read as follows: 'Provided, however, That no allotment of

seven-tenths of an acre or less shall be reduced more than

one-tenth of an acre below the allotment established for the farm

for the last preceding year for which a quota was proclaimed on

an acreage allotment basis'.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1314c of this title.

-CITE-

7 USC Sec. 1316 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart i - marketing quotas - tobacco

-HEAD-

Sec. 1316. Transfer of allotments subsequent to 1965

-STATUTE-

Notwithstanding the provisions of sections 1314b(c) and 1314c(b)

of this title, relating to transfer of allotments for years

subsequent to 1965, whenever acreage-poundage quotas are in effect

for any kind of tobacco as provided in section 1314c of this title,

the transfer shall be on a pound for pound basis and the acreage

allotment for the transferee farm shall be increased by an amount

determined by dividing the number of pounds transferred by the farm

yield for the transferee farm, and the acreage allotment for the

transferor farm shall be reduced by an amount determined by

dividing the number of pounds transferred by the farm yield for the

transferor farm.

-SOURCE-

(Pub. L. 89-321, title VII, Sec. 703, Nov. 3, 1965, 79 Stat. 1210;

Pub. L. 91-284, Sec. 6, June 19, 1970, 84 Stat. 314; Pub. L.

97-218, title II, Sec. 205(b), July 20, 1982, 96 Stat. 206.)

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act of 1938 which comprises this chapter. The first sentence of

section 703 of Pub. L. 89-321 amended section 1314b(a) of this

title.

-MISC3-

AMENDMENTS

1982 - Pub. L. 97-218 substituted ''transfer'' for ''lease and

transfer'', ''transferee'' for ''lessee'', ''transferor'' for

''lessor'', and ''transferred'' for ''leased'', wherever appearing.

1970 - Pub. L. 91-284 struck out ''except in the case of burley

tobacco, and other kinds of tobacco not subject to section 1314b of

this title,'' after ''any kind of tobacco as provided in section

1314c of this title,''.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-218 effective July 20, 1982, but not to

apply to any lease of a Flue-cured tobacco acreage allotment or

marketing quota entered into under the Agricultural Adjustment Act

of 1938 (7 U.S.C. 1281 et seq.) before that date, see section 207

of Pub. L. 97-218, set out as a note under section 1314b of this

title.

-CITE-

7 USC subpart ii - acreage allotments - corn 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

.

-HEAD-

subpart ii - acreage allotments - corn

-MISC1-

AMENDMENTS

1954 - Act Aug. 28, 1954, ch. 1041, title III, Sec. 303, 68 Stat.

902, substituted ''Acreage Allotments - Corn'' for ''Marketing

Quotas - Corn'' in subpart II heading.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 7301, 7992 of this title.

-CITE-

7 USC Sec. 1321 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1321. Legislative finding of effect on interstate and foreign

commerce and necessity of regulation

-STATUTE-

Corn is a basic source of food for the Nation, and corn produced

in the commercial corn-producing area moves almost wholly in

interstate and foreign commerce in the form of corn, livestock, and

livestock products.

Abnormally excessive and abnormally deficient supplies of corn

acutely and directly affect, burden, and obstruct interstate and

foreign commerce in corn, livestock, and livestock products. When

abnormally excessive supplies exist, transportation facilities in

interstate and foreign commerce are overtaxed, and the handling and

processing facilities through which the flow of interstate and

foreign commerce in corn, livestock, and livestock products is

directed become acutely congested. Abnormally deficient supplies

result in substantial decreases in livestock production and in an

inadequate flow of livestock and livestock products in interstate

and foreign commerce, with the consequence of unreasonably high

prices to consumers.

Violent fluctuations from year to year in the available supply of

corn disrupt the balance between the supply of livestock and

livestock products moving in interstate and foreign commerce and

the supply of corn available for feeding. When available supplies

of corn are excessive, corn prices are low and farmers overexpand

livestock production in order to find outlets for corn. Such

expansion, together with the relative scarcity and high price of

corn, forces farmers to market abnormally excessive supplies of

livestock in interstate commerce at sacrifice prices, endangering

the financial stability of producers, and overtaxing handling and

processing facilities through which the flow of interstate and

foreign commerce in livestock and livestock products is directed.

Such excessive marketings deplete livestock on farms, and livestock

marketed in interstate and foreign commerce consequently becomes

abnormally low, with resultant high prices to consumers and danger

to the financial stability of persons engaged in transporting,

handling, and processing livestock in interstate and foreign

commerce. These high prices in turn result in another

overexpansion of livestock production.

Recurring violent fluctuations in the price of corn resulting

from corresponding violent fluctuations in the supply of corn

directly affect the movement of livestock in interstate commerce

from the range cattle regions to the regions where livestock is

fattened for market in interstate and foreign commerce, and also

directly affect the movement in interstate commerce of corn

marketed as corn which is transported from the regions where

produced to the regions where livestock is fattened for market in

interstate and foreign commerce.

Substantially all the corn moving in interstate commerce,

substantially all the corn fed to livestock transported in

interstate commerce for fattening, and substantially all the corn

fed to livestock marketed in interstate and foreign commerce, is

produced in the commercial corn-producing area. Substantially all

the corn produced in the commercial corn-producing area, with the

exception of a comparatively small amount used for farm

consumption, is either sold or transported in interstate commerce,

or is fed to livestock transported in interstate commerce for

feeding, or is fed to livestock marketed in interstate and foreign

commerce. Almost all the corn produced outside the commercial

corn-producing area is either consumed, or is fed to livestock

which is consumed, in the State in which such corn is produced.

The conditions affecting the production and marketing of corn and

the livestock products of corn are such that, without Federal

assistance, farmers, individually or in cooperation, cannot

effectively prevent the recurrence of disparities between the

supplies of livestock moving in interstate and foreign commerce and

the supply of corn available for feeding, and provide for orderly

marketing of corn in interstate and foreign commerce and livestock

and livestock products in interstate and foreign commerce.

The national public interest requires that the burdens on

interstate and foreign commerce above described be removed by the

exercise of Federal power. By reason of the administrative and

physical impracticability of regulating the movement of livestock

and livestock products in interstate and foreign commerce and the

inadequacy of any such regulation to remove such burdens, such

power can be feasibly exercised only by providing for the

withholding from market of excessive and burdensome supplies of

corn in times of excessive production, and providing a reserve

supply of corn available for market in times of deficient

production, in order that a stable and continuous flow of livestock

and livestock products in interstate and foreign commerce may at

all times be assured and maintained.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 321, 52 Stat. 48.)

-MISC1-

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

-CITE-

7 USC Sec. 1322 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1322. Repealed. Aug. 28, 1954, ch. 1041, title III, Sec. 304,

68 Stat. 902

-MISC1-

Section, acts Feb. 16, 1938, ch. 30, title III, Sec. 322, 52

Stat. 49; July 3, 1948, ch. 827, title II, Sec. 203, 62 Stat. 1255;

Oct. 31, 1949, ch. 792, title IV, Sec. 409(e), 63 Stat. 1057,

related to establishment, referendum, and suspension of farm

marketing quotas.

-CITE-

7 USC Sec. 1322a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1322a. Repealed. July 3, 1948, ch. 827, title II, Sec. 203(b),

62 Stat. 1256

-MISC1-

Section, act July 26, 1939, ch. 378, 53 Stat. 1125, related to

time for proclamation of referendum.

EFFECTIVE DATE OF REPEAL

Repeal effective Jan. 1, 1950, see section 303 of act July 3,

1948, set out as a note under section 1301 of this title.

-CITE-

7 USC Sec. 1323 to 1325 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1323 to 1325. Repealed. Aug. 28, 1954, ch. 1041, title III,

Sec. 304, 68 Stat. 902

-MISC1-

Section 1323, act Feb. 16, 1938, ch. 30, title III, Sec. 323, 52

Stat. 50, related to amount of farm marketing quota with respect to

corn.

Section 1324, act Feb. 16, 1938, ch. 30, title III, Sec. 324, 52

Stat. 50, related to storage amounts.

Section 1325, act Feb. 16, 1938, ch. 30, title III, Sec. 325, 52

Stat. 51, related to penalties for marketing corn in excess of

quota.

-CITE-

7 USC Sec. 1326 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1326. Adjustment of farm marketing quotas

-STATUTE-

(a) Whenever in any county or other area the Secretary finds that

the actual production of corn plus the amount of corn stored under

seal in such county or other area is less than the normal

production of the marketing percentage of the farm acreage

allotments in such county or other area, the Secretary shall

terminate farm marketing quotas for corn in such county or other

area.

(b) Whenever, upon any farm, the actual production of the acreage

of corn is less than the normal production of the marketing

percentage of the farm acreage allotment, there may be marketed,

without penalty, from such farm an amount of corn from the corn

stored under seal pursuant to section 1324 of this title which,

together with the actual production of the then current crop, will

equal the normal production of the marketing percentage of the farm

acreage allotment.

(c) Whenever, in any marketing year, marketing quotas are not in

effect with respect to the crop of corn produced in the calendar

year in which such marketing year begins, all marketing quotas

applicable to previous crops of corn shall be terminated.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 326, 52 Stat. 51.)

-REFTEXT-

REFERENCES IN TEXT

Section 1324 of this title, referred to in subsec. (b), was

repealed by act Aug. 28, 1954, ch. 1041, title III, Sec. 304, 68

Stat. 902.

-MISC2-

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

REPEALS

Act Aug. 28, 1954, ch. 1041, title III, Sec. 304, 68 Stat. 902,

repealed this section insofar as it is applicable to corn. Section

has been made applicable to wheat by sections 1330(6) and 1340(6)

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1334, 1340 of this title.

-CITE-

7 USC Sec. 1327 to 1329 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1327 to 1329. Omitted

-COD-

CODIFICATION

Sections provided for establishment of a commercial

corn-producing area and corn acreage allotments, which were

discontinued. See sections 1329a, 1444a, and 1444b of this title.

Section 1327, acts Feb. 16, 1938, ch. 30, title III, Sec. 327, 52

Stat. 51; Aug. 28, 1954, ch. 1041, title III, Sec. 304, 68 Stat.

903, provided for proclamation of commercial corn-producing area

not later than February 1 of each year.

Section 1328, acts Feb. 16, 1938, ch. 30, title III, Sec. 328, 52

Stat. 52; Apr. 7, 1938, ch. 107, Sec. 6, 52 Stat. 202; July 3,

1948, ch. 827, title II, Sec. 207(a), 62 Stat. 1257; Oct. 31, 1949,

ch. 792, title IV, Sec. 409(f), 63 Stat. 1057; Aug. 28, 1954, ch.

1041, title III, Sec. 305, 68 Stat. 903, provided for establishment

of acreage allotment of corn for each calendar year and

proclamation of such acreage allotment not later than February 1 of

each year.

Section 1329, acts Feb. 16, 1938, ch. 30, title III, Sec. 329, 52

Stat. 52; Aug. 28, 1954, ch. 1041, title III, Sec. 306, 68 Stat.

903, provided for apportionment of acreage allotment for corn.

-CITE-

7 USC Sec. 1329a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1329a. Discontinuance of acreage allotments on corn

-STATUTE-

Notwithstanding any other provision of law, acreage allotments

and a commercial corn-producing area shall not be established for

the 1959 and subsequent crops of corn.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 330, as added Oct. 31,

1949, ch. 792, title I, Sec. 104(b)(1), as added Pub. L. 85-835,

title II, Sec. 201, Aug. 28, 1958, 72 Stat. 994.)

-MISC1-

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

1958 REFERENDUM FOR SELECTION OF ALTERNATIVE CORN PROGRAM;

OPERATIVE STATUS OF CERTAIN PROVISIONS

Corn producers voted for adoption of price support program as

provided in section 1444a(b) of this title (254,262) rather than

alternative corn acreage allotment and price support program

(102,907), the ballot making operative sections 1329a and 1444b and

repeal of section 1441(d)(4) of this title.

-CITE-

7 USC Sec. 1330 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart ii - acreage allotments - corn

-HEAD-

Sec. 1330. Omitted

-COD-

CODIFICATION

Section, acts May 26, 1941, ch. 133, 55 Stat. 203; Dec. 26, 1941,

ch. 626, Sec. 2, 55 Stat. 860; Dec. 26, 1941, ch. 636, 55 Stat.

872; Aug. 29, 1949, ch. 518, Sec. 3(b), 63 Stat. 676; July 14,

1953, ch. 194, Sec. 3, 67 Stat. 151; Aug. 28, 1954, ch. 1041, title

III, Sec. 313, 68 Stat. 905, initially contained supplemental

provisions relating to wheat and corn marketing quotas; marketing

penalty for cotton and rice; crop loans on cotton, corn, wheat,

rice, tobacco, and peanuts, but was amended generally in 1954 to

make it inapplicable to corn. See section 1340 of this title.

Section was not enacted as part of the Agricultural Adjustment

Act of 1938 which comprises this chapter.

-CITE-

7 USC subpart iii - marketing quotas - wheat 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

.

-HEAD-

subpart iii - marketing quotas - wheat

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 7301, 7992 of this title.

-CITE-

7 USC Sec. 1331 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1331. Legislative finding of effect on interstate and foreign

commerce and necessity of regulation

-STATUTE-

Wheat is a basic source of food for the Nation, is produced

throughout the United States by more than a million farmers, is

sold on the country-wide market and, as wheat or flour, flows

almost entirely through instrumentalities of interstate and foreign

commerce from producers to consumers.

Abnormally excessive and abnormally deficient supplies of wheat

on the country-wide market acutely and directly affect, burden, and

obstruct interstate and foreign commerce. Abnormally excessive

supplies overtax the facilities of interstate and foreign

transportation, congest terminal markets and milling centers in the

flow of wheat from producers to consumers, depress the price of

wheat in interstate and foreign commerce, and otherwise disrupt the

orderly marketing of such commodity in such commerce. Abnormally

deficient supplies result in an inadequate flow of wheat and its

products in interstate and foreign commerce with consequent

injurious effects to the instrumentalities of such commerce and

with excessive increases in the prices of wheat and its products in

interstate and foreign commerce.

It is in the interest of the general welfare that interstate and

foreign commerce in wheat and its products be protected from such

burdensome surpluses and distressing shortages, and that a supply

of wheat be maintained which is adequate to meet domestic

consumption and export requirements in years of drought, flood, and

other adverse conditions as well as in years of plenty, and that

the soil resources of the Nation be not wasted in the production of

such burdensome surpluses. Such surpluses result in disastrously

low prices of wheat and other grains to wheat producers, destroy

the purchasing power of grain producers for industrial products,

and reduce the value of the agricultural assets supporting the

national credit structure. Such shortages of wheat result in

unreasonably high prices of flour and bread to consumers and loss

of market outlets by wheat producers.

The conditions affecting the production and marketing of wheat

are such that, without Federal assistance, farmers, individually or

in cooperation, cannot effectively prevent the recurrence of such

surpluses and shortages and the burdens on interstate and foreign

commerce resulting therefrom, maintain normal supplies of wheat, or

provide for the orderly marketing thereof in interstate and foreign

commerce.

Wheat which is planted and not disposed of prior to the date

prescribed by the Secretary for the disposal of excess acres of

wheat is an addition to the total supply of wheat and has a direct

effect on the price of wheat in interstate and foreign commerce and

may also affect the supply and price of livestock and livestock

products. In the circumstances, wheat not disposed of prior to

such date must be considered in the same manner as mechanically

harvested wheat in order to achieve the policy of the chapter.

The diversion of substantial acreages from wheat to the

production of commodities which are in surplus supply or which will

be in surplus supply if they are permitted to be grown on the

diverted acreage would burden, obstruct, and adversely affect

interstate and foreign commerce in such commodities, and would

adversely affect the prices of such commodities in interstate and

foreign commerce. Small changes in the supply of a commodity could

create a sufficient surplus to affect seriously the price of such

commodity in interstate and foreign commerce. Large changes in the

supply of such commodity could have a more acute effect on the

price of the commodity in interstate and foreign commerce and,

also, could overtax the handling, processing, and transportation

facilities through which the flow of interstate and foreign

commerce in such commodity is directed. Such adverse effects

caused by overproduction in one year could further result in a

deficient supply of the commodity in the succeeding year, causing

excessive increases in the price of the commodity in interstate and

foreign commerce in such year. It is, therefore, necessary to

prevent acreage diverted from the production of wheat to be used to

produce commodities which are in surplus supply or which will be in

surplus supply if they are permitted to be grown on the diverted

acreage.

The provisions of this subpart affording a cooperative plan to

wheat producers are necessary in order to minimize recurring

surpluses and shortages of wheat in interstate and foreign

commerce, to provide for the maintenance of adequate reserve

supplies thereof, to provide for an adequate and orderly flow of

wheat and its products in interstate and foreign commerce at prices

which are fair and reasonable to farmers and consumers, and to

prevent acreage diverted from the production of wheat from

adversely affecting other commodities in interstate and foreign

commerce.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 331, 52 Stat. 52; Pub. L.

87-703, title III, Sec. 310, Sept. 27, 1962, 76 Stat. 618.)

-MISC1-

AMENDMENTS

1962 - Pub. L. 87-703 provided additional findings respecting the

addition of wheat to total supply of wheat and effect of such

addition on price of wheat and supply and price of livestock and

livestock products, the need to prevent the use of acreage diverted

from wheat production to produce other commodities in surplus

supply and the consequences of a small or large change in the

supply of a commodity and the necessity of a cooperative plan to

wheat producers to provide for flow of wheat at fair and reasonable

prices to farmers and consumers and to prevent diverted acreage

from production of wheat from adversely affecting other commodities

in interstate and foreign commerce.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-703 effective only with respect to

programs applicable to crops planted for harvest in calendar year

1964 or any subsequent year and marketing years beginning in

calendar year 1964, or any subsequent year, see section 323 of Pub.

L. 87-703, set out as a note under section 1301 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Pub. L. 101-624, title III, Sec. 303, Nov. 28, 1990, 104 Stat.

3400, provided that: ''Sections 331 through 339, 379b, and 379c of

the Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through

1339, 1379b, and 1379c) shall not be applicable to the 1991 through

1995 crops of wheat.''

Pub. L. 99-198, title III, Sec. 310(b), Dec. 23, 1985, 99 Stat.

1395, provided that: ''Sections 331, 339, 379b, and 379c of such

Act (the Agricultural Adjustment Act of 1938) (7 U.S.C. 1331, 1339,

1379b, and 1379c) shall not be applicable to the 1986 through 1990

crops of wheat.''

Pub. L. 97-98, title III, Sec. 303, Dec. 22, 1981, 95 Stat.

1227, provided that: ''Sections 331, 332, 333, 334, 335, 336, 338,

339, 379b, and 379c of the Agricultural Adjustment Act of 1938

(this section and sections 1332, 1333, 1334, 1335, 1336, 1338,

1339, 1379b, and 1379c of this title) shall not be applicable to

the 1982 through 1985 crops of wheat.''

Pub. L. 95-113, title IV, Sec. 404, Sept. 29, 1977, 91 Stat. 927,

provided that: ''Sections 331, 332, 333, 334, 335, 336, 338, 339,

379b, and 379c of the Agricultural Adjustment Act of 1938, as

amended (this section and sections 1332, 1333, 1334, 1335, 1336,

1338, 1339, 1379b, and 1379c of this title), shall not be

applicable to the 1978 through 1981 crops of wheat.''

Pub. L. 91-524, title IV, Sec. 404(1), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1971

through 1977 crops of wheat.

-CITE-

7 USC Sec. 1332 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1332. National marketing quota

-STATUTE-

(a) Proclamation; duration of program

Whenever prior to April 15 in any calendar year the Secretary

determines that the total supply of wheat in the marketing year

beginning in the next succeeding calendar year will, in the absence

of a marketing quota program, likely be excessive, the Secretary

shall proclaim that a national marketing quota for wheat shall be

in effect for such marketing year and for either the following

marketing year or the following two marketing years, if the

Secretary determines and declares in such proclamation that a two-

or three-year marketing quota program is necessary to effectuate

the policy of the chapter.

(b) Amount; minimum

If a national marketing quota for wheat has been proclaimed for

any marketing year, the Secretary shall determine and proclaim the

amount of the national marketing quota for such marketing year not

earlier than January 1 or later than April 15 of the calendar year

preceding the year in which such marketing year begins. The amount

of the national marketing quota for wheat for any marketing year

shall be an amount of wheat which the Secretary estimates (i) will

be utilized during such marketing year for human consumption in the

United States as food, food products, and beverages, composed

wholly or partly of wheat, (ii) will be utilized during such

marketing year in the United States for seed, (iii) will be

exported either in the form of wheat or products thereof, and (iv)

will be utilized during such marketing year in the United States as

livestock (including poultry) feed, excluding the estimated

quantity of wheat which will be utilized for such purpose as a

result of the substitution of wheat for feed grains under section

1339c of this title; less (A) an amount of wheat equal to the

estimated imports of wheat into the United States during such

marketing year and, (B) if the stocks of wheat owned by the

Commodity Credit Corporation are determined by the Secretary to be

excessive, an amount of wheat determined by the Secretary to be a

desirable reduction in such marketing year in such stocks to

achieve the policy of the chapter: Provided, That if the Secretary

determines that the total stocks of wheat in the Nation are

insufficient to assure an adequate carryover for the next

succeeding marketing year, the national marketing quota otherwise

determined shall be increased by the amount the Secretary

determines to be necessary to assure an adequate carryover: And

provided further, That the national marketing quota for wheat for

any marketing year shall be not less than one billion bushels.

(c) National emergencies or material increase in demand;

investigation; increase or termination

If, after the proclamation of a national marketing quota for

wheat for any marketing year, the Secretary has reason to believe

that, because of a national emergency or because of a material

increase in the demand for wheat, the national marketing quota

should be terminated or the amount thereof increased, he shall

cause an immediate investigation to be made to determine whether

such action is necessary in order to meet such emergency or

increase in the demand for wheat. If, on the basis of such

investigation, the Secretary finds that such action is necessary,

he shall immediately proclaim such finding and the amount of any

such increase found by him to be necessary and thereupon such

national marketing quota shall be so increased or terminated. In

case any national marketing quota is increased under this

subsection, the Secretary shall provide for such increase by

increasing acreage allotments established under this subpart by a

uniform percentage.

(d) Farm marketing quotas for wheat crops planted in calendar years

1966-1970

Notwithstanding any other provision of this chapter, the

Secretary shall proclaim a national marketing quota for the crops

of wheat planted for harvest in the calendar years 1966 through

1970, and farm marketing quotas shall not be in effect for such

crops of wheat.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 332, 52 Stat. 53; Aug. 28,

1954, ch. 1041, title III, Sec. 307, 68 Stat. 903; Pub. L. 87-703,

title III, Sec. 311, Sept. 27, 1962, 76 Stat. 619; Pub. L. 89-321,

title V, Sec. 501(1), Nov. 3, 1965, 79 Stat. 1199; Pub. L. 90-559,

Sec. 1(1), Oct. 11, 1968, 82 Stat. 996; Pub. L. 99-198, title III,

Sec. 302, Dec. 23, 1985, 99 Stat. 1378.)

-MISC1-

AMENDMENTS

1985 - Pub. L. 99-198 temporarily substituted ''Proclamation of

marketing quotas'' for ''National marketing quota'' in section

catchline. See Effective and Termination Dates of 1985 Amendment

note below.

Subsec. (a). Pub. L. 99-198 amended subsec. (a) generally,

temporarily substituting provisions defining the terms ''base

period'' and ''marketing quota period'' for provisions which

authorized the Secretary to proclaim a national marketing quota for

wheat for either a two- or three-year period. See Effective and

Termination Dates of 1985 Amendment note below.

Subsec. (b). Pub. L. 99-198 amended subsec. (b) generally,

temporarily substituting provisions authorizing the proclamation of

a national marketing quota for each marketing year, not later than

June 15, 1986, in an amount which the Secretary determines is

required to meet anticipated needs during such marketing year, and

the conducting of a marketing quota referendum not later than Aug.

1, 1986 for provisions which had authorized the proclamation of a

national marketing quota upon a determination made between Jan. 1

and Apr. 15 of the calendar year preceding the year in which the

marketing year began, which determination had to provide a minimum

of one billion bushels for any marketing year, and investigation of

stocks to adjust for imports and excessive or insufficient amounts

generally. See Effective and Termination Dates of 1985 Amendment

note below.

Subsec. (c). Pub. L. 99-198 amended subsec. (c) generally,

temporarily substituting provisions requiring the Secretary to

adjust or terminate the national marketing quota in the event of a

national emergency or material change in the demand for wheat for

provisions which had required the Secretary to cause an immediate

investigation to be made to determine whether termination or

increase in the quota was necessary in order to meet such emergency

or increase in demand, and struck out provisions requiring the

Secretary to proclaim such findings and the amount of any increase,

with any such increase to be based on a uniform percentage. See

Effective and Termination Dates of 1985 Amendment note below.

Subsec. (d). Pub. L. 99-198 amended section generally,

temporarily striking out subsec. (d) which provided for farm

marketing quotas for wheat crops planted in calendar years

1969-1970. See Effective and Termination Dates of 1985 Amendment

note below.

1968 - Subsec. (d). Pub. L. 90-559 provided for a one year

extension through 1970.

1965 - Subsec. (b). Pub. L. 89-321 changed item (iv) from the

average amount of wheat which was used for livestock feed during

1959-60 to the amount which will be utilized during the marketing

year for which the quota is being determined for livestock feed,

excluding the estimated quantity of wheat which will be utilized

for such purpose as a result of the substitution of wheat for feed

grains under section 1339c of this title.

Subsec. (d). Pub. L. 89-321 added subsec. (d).

1962 - Pub. L. 87-703 substituted provisions for proclamation of

a national marketing quota upon a determination made prior to April

15 in any calendar year, the duration of such a program, the amount

of, including the minimum, quota, and investigation of stocks to

increase or terminate the quota during national emergencies or

material increase in demand for provision for proclamation, not

later than May 15 of each calendar year, of a national marketing

quota for the crop produced in the next calendar year.

1954 - Act Aug. 28, 1954, struck out proclamations relating to

supplies, and changed proclamation date from July 15 to May 15.

EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT

Section 302 of Pub. L. 99-198 provided that the amendment made by

that section is effective only for 1987 through 1990 crops of

wheat.

EFFECTIVE DATE OF 1965 AMENDMENT

Section 501 of Pub. L. 89-321 provided that the amendments made

by that section (amending this section and sections 1333, 1334,

1335, and 1339 of this title) are ''effective beginning with the

crop planted for harvest in the calendar year 1966''.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-703 effective only with respect to

programs applicable to crops planted for harvest in calendar year

1964 or any subsequent year and marketing years beginning in

calendar year 1964, or any subsequent year, see section 323 of Pub.

L. 87-703, set out as a note under section 1301 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Pub. L. 101-270, Apr. 10, 1990, 104 Stat. 134, provided: ''That

section 332 of the Agricultural Adjustment Act of 1938 (7 U.S.C.

1332) shall not be applicable to the 1991 crop of wheat.''

Section 310(a) of Pub. L. 99-198 provided that: ''Sections 332,

333, 334, 335, 336, and 338 of the Agricultural Adjustment Act of

1938 (7 U.S.C. 1332-1336 and 1338) shall not be applicable to the

1986 crop of wheat.''

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Pub. L. 91-524, title IV, Sec. 404(1), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1971

through 1977 crops of wheat.

1965 CROP NATIONAL MARKETING QUOTA AND CROP ACREAGE ALLOTMENT

Section 201 of Pub. L. 88-297, title II, Apr. 11, 1964, 78 Stat.

178, directed Secretary to not proclaim a national marketing quota

for 1965 crop of wheat and that farm marketing quotas shall not be

in effect for such crop of wheat, and required Secretary to

proclaim a national acreage allotment for 1965 crop of wheat which

shall be the number of acres which he determined would make

available an adequate supply of wheat, but not less than forty-nine

million five hundred thousand acres.

DEFERRAL OF PROCLAMATION FOR 1963 CROP

Pub. L. 87-485, June 15, 1962, 76 Stat. 103, authorized Secretary

of Agriculture to defer until July 15, 1962, any proclamation under

this section with respect to a national acreage allotment for 1963

crop of wheat and any proclamation under section 1335 of this title

with respect to marketing quotas for such crop of wheat.

Pub. L. 87-450, May 15, 1962, 76 Stat. 69, authorized Secretary

of Agriculture to defer until June 15, 1962, any proclamation under

this section with respect to a national acreage allotment for 1963

crop of wheat and any proclamation under section 1335 of this title

for such crop of wheat.

DEFERRAL OF PROCLAMATION FOR 1960 CROP

Pub. L. 86-27, May 15, 1959, 73 Stat. 25, authorized Secretary of

Agriculture to defer until June 1, 1959, any proclamation under

this section with respect to a national acreage allotment for 1960

crop of wheat and any proclamation under section 1335 of this title

with respect to marketing quotas for such crop of wheat.

-CITE-

7 USC Sec. 1333 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1333. National acreage allotment

-STATUTE-

The Secretary shall proclaim a national acreage allotment for

each crop of wheat. The amount of the national acreage allotment

for any crop of wheat shall be the number of acres which the

Secretary determines on the basis of the projected national yield

and expected underplantings (acreage other than that not harvested

because of program incentives) of farm acreage allotments will

produce an amount of wheat equal to the national marketing quota

for wheat for the marketing year for such crop, or if a national

marketing quota was not proclaimed, the quota which would have been

determined if one had been proclaimed.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 333, 52 Stat. 53; June 20,

1938, ch. 518, 52 Stat. 775; July 26, 1939, ch. 377, 53 Stat. 1125;

July 3, 1948, ch. 827, title II, Sec. 207(b), 62 Stat. 1257; Pub.

L. 87-703, title III, Sec. 312, Sept. 27, 1962, 76 Stat. 620; Pub.

L. 89-321, title V, Sec. 501(2), Nov. 3, 1965, 79 Stat. 1199; Pub.

L. 99-198, title III, Sec. 303, Dec. 23, 1985, 99 Stat. 1379.)

-MISC1-

AMENDMENTS

1985 - Pub. L. 99-198 amended section generally, temporarily

substituting provisions relating to the establishment and

determination of a marketing quota apportionment factor for each

crop of wheat for which a national marketing quota is proclaimed

under section 1332 of this title for provisions relating to the

proclamation and determination of a national acreage allotment for

each crop of wheat. See Effective and Termination Dates of 1985

Amendment note below.

1965 - Pub. L. 89-321 substituted projected national yield for

expected yield in the determination of the basis to be used in

arriving at the national acreage allotment, inserted limiting

parenthetical reference to acreage other than that harvested

because of program incentives, and struck out references to

expected production on the increases in acreage allotments for

farms based upon small-farm base acreages pursuant to section 1335

of this title and to the expected production on the increased

acreages resulting from the small-farm exemption pursuant to

section 1335 of this title.

1962 - Pub. L. 87-703 substituted provision for proclamation of a

national acreage allotment at the time of proclamation of the

national marketing quota in an amount that would be the number of

acres which on the basis of expected yields would, together with

the expected production on increases in acreage allotments for

small farms and on increased acreages resulting from the small-farm

exemption, make available a supply equal to the national marketing

quota for provision for determination of the national acreage

allotment as such acreage as on the basis of the national average

yield would produce an amount, which, with estimated carryover and

imports, would make available a supply equal to a normal year's

domestic consumption and exports plus 30 per centum and prescribing

a national acreage allotment for wheat for 1938 at sixty-two

million five hundred thousand acres and for any year at not less

than fifty-five million acres.

1948 - Act July 3, 1948, required the Secretary to take imports

into consideration in determining acreage allotments for the

purposes of marketing quotas.

1939 - Act July 26, 1939, amended last sentence.

1938 - Act June 20, 1938, inserted last sentence.

EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT

Section 303 of Pub. L. 99-198 provided that the amendment made by

that section is effective only for 1987 through 1990 crops of

wheat.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-321 effective beginning with crop planted

for harvest in calendar year 1966, see section 501 of Pub. L.

89-321, set out as a note under section 1332 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-703 effective only with respect to

programs applicable to crops planted for harvest in calendar year

1964 or any subsequent year and marketing years beginning in

calendar year 1964, or any subsequent year, see section 323 of Pub.

L. 87-703, set out as a note under section 1301 of this title.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 crop of wheat, see section 310(a) of

Pub. L. 99-198, set out as a note under section 1332 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Pub. L. 91-524, title IV, Sec. 404(2), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1972

through 1977 crops of wheat.

1965 CROP ACREAGE ALLOTMENT

Proclamation of a national acreage allotment for 1965 crop of

wheat that will make available an adequate supply of wheat but

shall not be less than forty-nine million five hundred thousand

acres, see section 201 of Pub. L. 88-297, set out as a note under

section 1332 of this title.

-CITE-

7 USC Sec. 1334 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1334. Apportionment of national acreage allotment

-STATUTE-

(a) Apportionment among States; special acreage reserve

The national allotment for wheat, less a reserve of not to exceed

1 per centum thereof for apportionment as provided in this

subsection and less the special acreage reserve provided for in

this subsection, shall be apportioned by the Secretary among the

States on the basis of the preceding year's allotment for each such

State, including all amounts allotted to the State and including

for 1967 the increased acreage in the State allotted for 1966 under

section 1335 of this title, adjusted to the extent deemed necessary

by the Secretary to establish a fair and equitable apportionment

base for each State, taking into consideration established crop

rotation practices, estimated decrease in farm allotments because

of loss of history, and other relevant factors. The reserve

acreage set aside herein for apportionment by the Secretary shall

be used (1) to make allotments to counties in addition to the

county allotments made under subsection (b) of this section, on the

basis of the relative needs of counties for additional allotments

because of reclamation and other new areas coming into production

of wheat, or (2) to increase the allotment for any county, in which

wheat is the principal grain crop produced, on the basis of its

relative need for such increase if the average ratio of wheat

acreage allotment to cropland on old wheat farms in such county is

less by at least 20 per centum than such average ratio on old wheat

farms in an adjoining county or counties in which wheat is the

principal grain crop produced or if there is a definable contiguous

area consisting of at least 10 per centum of the cropland acreage

in such county in which the average ratio of wheat acreage

allotment to cropland on old wheat farms is less by at least 20 per

centum than such average ratio on the remaining old wheat farms in

such county, provided that such low ratio of wheat acreage

allotment to cropland is due to the shift prior to 1951 from wheat

to one or more alternative income-producing crops which, because of

plant disease or sustained loss of markets, may no longer be

produced at a fair profit and there is no other alternative

income-producing crop suitable for production in the area or

county. The increase in the county allotment under clause (2) of

the preceding sentence shall be used to increase allotments for old

wheat farms in the affected area to make such allotments comparable

with those on similar farms in adjoining areas or counties but the

average ratio of increased allotments to cropland on such farms

shall not exceed the average ratio of wheat acreage allotment to

cropland on old wheat farms in the adjoining areas or counties.

There also shall be made available a special acreage reserve of not

in excess of one million acres as determined by the Secretary to be

desirable for the purposes hereof which shall be in addition to the

national acreage reserve provided for in this subsection. Such

special acreage reserve shall be made available to the States to

make additional allotments to counties on the basis of the relative

needs of counties, as determined by the Secretary, for additional

allotments to make adjustments in the allotments on old wheat farms

(that is, farms on which wheat has been seeded or regarded as

seeded to one or more of the three crops immediately preceding the

crop for which the allotment is established) on which the ratio of

wheat acreage allotment to cropland on the farm is less than

one-half the average ratio of wheat acreage allotment to cropland

on old wheat farms in the county. Such adjustments shall not

provide an allotment for any farm which would result in an

allotment-cropland ratio for the farm in excess of one-half of such

county average ratio and the total of such adjustments in any

county shall not exceed the acreage made available therefor in the

county. Such apportionment from the special acreage reserve shall

be made only to counties where wheat is a major income-producing

crop, only to farms on which there is limited opportunity for the

production of an alternative income-producing crop, and only if an

efficient farming operation on the farm requires the allotment of

additional acreage from the special acreage reserve. For the

purposes of making adjustments hereunder the cropland on the farm

shall not include any land developed as cropland subsequent to the

1963 crop year.

(b) Apportionment among counties

The State acreage allotment for wheat, less a reserve of not to

exceed 3 per centum thereof for apportionment as provided in

subsection (c) of this section, shall be apportioned by the

Secretary among the counties in the State, on the basis of the

preceding year's wheat allotment in each such county, including for

1967 the increased acreage in the county allotted for 1966 pursuant

to section 1335 of this title, adjusted to the extent deemed

necessary by the Secretary in order to establish a fair and

equitable apportionment base for each county, taking into

consideration established crop rotation practices, estimated

decrease in farm allotments because of loss of history, and other

relevant factors.

(c) Apportionment among farms; overplanted allotments; reductions;

notice

(1) The allotment to the county shall be apportioned by the

Secretary, through the local committees, among the farms within the

county on the basis of past acreage of wheat, tillable acres,

crop-rotation practices, type of soil, and topography. Not more

than 3 per centum of the State allotment shall be apportioned to

farms on which wheat has not been planted during any of the three

marketing years immediately preceding the marketing year in which

the allotment is made. For the purpose of establishing farm

acreage allotments - (i) the past acreage of wheat on any farm for

1958 or 1965 shall be the base acreage determined for the farm

under the regulations issued by the Secretary for determining 1958

or 1965 farm wheat acreage allotments; (ii) if subsequent to the

determination of such base acreage the 1958 or 1965 wheat acreage

allotment for the farm is increased through administrative, review,

or court proceedings, the 1958 or 1965 farm base acreage shall be

increased in the same proportion; and (iii) the past acreage of

wheat for 1959 and any subsequent year except 1965 shall be the

wheat acreage on the farm which is not in excess of the farm wheat

acreage allotment, plus, in the case wheat acreage on the farm

which is not in excess of wheat acreage allotment, the acreage

diverted under such wheat allotment programs: Provided, That for

1959 and subsequent years in the case of any farm on which the

entire amount of the farm marketing excess is delivered to the

Secretary or stored in accordance with applicable regulations to

avoid or postpone payment of the penalty, the past acreage of wheat

for the year in which such farm marketing excess is so delivered or

stored shall be the farm base acreage of wheat determined for the

farm under the regulations issued by the Secretary for determining

farm wheat acreage allotments for such year, but if any part of the

amount of wheat so stored is later depleted and penalty becomes due

by reason of such depletion, for the purpose of establishing farm

wheat acreage allotments subsequent to such depletion the past

acreage of wheat for the farm for the year in which the excess was

produced shall be reduced to the farm wheat acreage allotment for

such year.

(2) Notwithstanding any other provision of law, each old or new

farm acreage allotment for the 1962 crop of wheat as determined on

the basis of a minimum national acreage allotment of fifty-five

million acres shall be reduced by 10 per centum. In the event

notices of farm acreage allotments for the 1962 crop of wheat have

been mailed to farm operators prior to the effective date of this

subparagraph (2), new notices showing the required reduction shall

be mailed to farm operators as soon as practicable.

(3) Notwithstanding the provisions of paragraph (1) of this

subsection, the past acreage of wheat for 1967 and any subsequent

year shall be the acreage of wheat planted, plus the acreage

regarded as planted, for harvest as grain on the farm which is not

in excess of the farm acreage allotment.

(4) Notwithstanding any other provision of this subsection (c),

the farm acreage allotment for the 1967 and any subsequent crop of

wheat shall be established for each old farm by apportioning the

county wheat acreage allotment among farms in the county on which

wheat has been planted, or is considered to have been planted, for

harvest as grain in any one of the three years immediately

preceding the year for which allotments are determined on the basis

of past acreage of wheat and the farm acreage allotment for the

year immediately preceding the year for which the allotment is

being established, adjusted as hereinafter provided. For purposes

of this paragraph, the acreage allotment for the immediately

preceding year may be adjusted to reflect established crop-rotation

practices, may be adjusted downward to reflect a reduction in the

tillable acreage on the farm, and may be adjusted upward to reflect

such other factors as the Secretary determines should be considered

for the purpose of establishing a fair and equitable allotment:

Provided, That (i) for the purposes of computing the allotment for

any year, the acreage allotment for the farm for the immediately

preceding year shall be decreased by 7 per centum if for the year

immediately preceding the year for which such reduction is made

neither a voluntary diversion program nor a voluntary certificate

program was in effect and there was noncompliance with the farm

acreage allotment for such year; (ii) for purposes of clause (i),

any farm on which the entire amount of farm marketing excess is

delivered to the Secretary, stored, or adjusted to zero in

accordance with applicable regulations to avoid or postpone payment

of the penalty when farm marketing quotas are in effect, shall be

considered in compliance with the allotment, but if any part of the

amount of wheat so stored is later depleted and penalty becomes due

by reason of such depletion, the allotment for such farm next

computed after determination of such depletion shall be reduced by

reducing the allotment for the immediately preceding year by 7 per

centum; and (iii) for purposes of clause (i) if the Secretary

determines that the reduction in the allotment does not provide

fair and equitable treatment to producers on farms following

special crop rotation practices, he may modify such reduction in

the allotment as he determines to be necessary to provide fair and

equitable treatment to such producers.

(d) Repealed. Pub. L. 89-321, title V, Sec. 501(6), Nov. 3, 1965,

79 Stat. 1201

(e) Increase in acreage allotments and marketing quotas for class

II durum wheat

If, with respect to the 1962 and 1963 crops of wheat, the

Secretary determines that the acreage allotments of farms producing

durum wheat are inadequate to provide for the production of a

sufficient quantity of durum wheat to satisfy the demands therefor

(but not including export demand involving a subsidy by, or a loss

to, the Federal Government), he shall increase the farm marketing

quotas and acreage allotments for such crop of wheat for farms

located in counties in the States of North Dakota, Minnesota,

Montana, South Dakota, and California, designated by the Secretary

as counties which (1) are capable of producing durum wheat (class

II), and (2) have produced such wheat for commercial food products

during one or more of the five years immediately preceding the year

in which such crop is harvested. The Secretary shall determine the

percentage factor by which the average acreage of durum wheat

(class II) produced during the last two-year period for which

statistics are available (excluding any increases in durum wheat

acreage as a result of increases in wheat acreage allotments

authorized by this subsection) must be increased to satisfy such

demand. The wheat acreage allotment for any farm established for

such crop without regard to this subsection, after reduction in the

case of the 1962 crop as required by subsection (c)(2) of this

section (hereinafter referred to as the ''original allotment''),

shall be increased by an acreage computed by multiplying the

average acreage of durum wheat (class II) on the farm during such

two-year period (excluding any increase in the acreage of durum

wheat as a result of an increase in the wheat acreage allotment for

the farm authorized by this subsection) by such percentage factor:

Provided, That such increased allotment shall not exceed the

cropland on the farm well suited to wheat. The increase in the

wheat acreage allotment for any farm shall be conditioned upon the

production of an acreage of durum wheat (class II) at least equal

to the average acreage of such wheat produced during such two-year

period plus the number of acres by which the allotment is

increased. Any increases in wheat acreage allotments authorized by

this subsection shall be in addition to the National, State, and

county wheat acreage allotments, and such increases shall not be

considered in establishing future State, county, and farm

allotments. The provisions of sections 1326(b) and 1340(6) of this

title, relating to the reduction of the storage amount of wheat

shall apply to the allotment for the farm established without

regard to this subsection and not to the increased allotment under

this subsection. As used in this subsection the term ''durum

wheat'' means durum wheat (class II) other than the varieties known

as ''Golden Ball'' and ''Peliss''. Any farm receiving an increased

allotment under this subsection shall not be required as a

condition of eligibility for price support, or permitted, to

participate in the special 1962 wheat program formulated under

section 124 of the Agricultural Act of 1961, or section 307 of the

Food and Agriculture Act of 1962. The Secretary shall give growers

and millers of durum wheat and manufacturers of semolina products

an opportunity to present their views and recommendations, prior to

making any determination hereunder.

(f) Voluntary surrender of acreage allotment

Any part of any 1955, 1956, or 1957 farm wheat acreage allotment

on which wheat will not be planted and which is voluntarily

surrendered to the county committee shall be deducted from the

allotment to such farm and may be reapportioned by the county

committee to other farms in the same county receiving allotments in

amounts determined by the county committee to be fair and

reasonable on the basis of past acreage of wheat tillable acres,

crop rotation practices, type of soil, and topography. If all of

the allotted acreage voluntarily surrendered is not needed in the

county, the county committee may surrender the excess acreage to

the State committee to be used for the same purposes as the State

acreage reserve under subsection (c) of this section. Any

allotment transferred under this provision shall be regarded for

the purposes of subsection (c) of this section as having been

planted on the farm from which transferred rather than on the farm

to which transferred, except that this shall not operate to make

the farm from which the allotment was transferred eligible for an

allotment as having wheat planted thereon during the three-year

base period: Provided, That notwithstanding any other provisions of

law, any part of any 1955, 1956, or 1957 farm acreage allotment may

be permanently released in writing to the county committee by the

owner and operator of the farm, and reapportioned as provided

herein. Acreage surrendered, reapportioned under this subsection,

and planted shall be credited to the State and county in

determining future acreage allotments.

(g) Plantings in excess of allotments or where no allotment is

established

Notwithstanding any other provision of law, no acreage in the

commercial wheat-producing area seeded to wheat for harvest as

grain in 1958 or thereafter except 1965 in excess of acreage

allotments shall be considered in establishing future State and

county acreage allotments. The planting on a farm in the

commercial wheat-producing area of wheat of the 1958 or any

subsequent crop for which no farm wheat acreage allotment was

established shall not make the farm eligible for an allotment as an

old farm pursuant to the first sentence of subsection (c) of this

section nor shall such farm by reason of such planting be

considered ineligible for an allotment as a new farm under the

second sentence of such subsection.

(h) Omitted

(i) Increase in acreage allotments for any kind of wheat in short

supply; storage reduction and land-use provisions inapplicable

to such wheat

If, with respect to any crop of wheat, the Secretary finds that

the acreage allotments of farms producing any type of wheat are

inadequate to provide for the production of a sufficient quantity

of such type of wheat to satisfy the demand therefor, the wheat

acreage allotment for such crop for each farm located in a county

designated by the Secretary as a county which (1) is capable of

producing such type of wheat, and (2) has produced such type of

wheat for commercial food products during one or more of the five

years immediately preceding the year in which such crop is

harvested, shall be increased by such uniform percentage as he

deems necessary to provide for such quantity. No increase shall be

made under this subsection in the wheat acreage allotment of any

farm for any crop if any wheat other than such type of wheat is

planted on such farm for such crop. Any increases in wheat acreage

allotments authorized by this subsection shall be in addition to

the National, State, and county wheat acreage allotments, and such

increases shall not be considered in establishing future State,

county, and farm allotments. The provisions of sections 1326(b)

and 1340(6) of this title, relating to the reduction of the storage

amount of wheat shall apply to the allotment for the farm

established without regard to this subsection and not to the

increased allotment under this subsection. The land-use provisions

of section 1339 of this title shall not be applicable to any farm

receiving an increased allotment under this subsection and the

producers on such farms shall not be required to comply with such

provisions as a condition of eligibility for price support.

(j) Increased durum wheat acreage allotments to Tulelake area,

California, for 1970 and subsequent years; factors

determinative; effect of increased allotments on marketing

allocations and diversion payments

Notwithstanding any other provision of this chapter, the

Secretary shall increase the acreage allotments for the 1970 and

subsequent crops of wheat for privately owned farms in the

irrigable portion of the area known as the Tulelake division of the

Klamath project of California located in Modoc and Siskiyou

Counties, California, as defined by the United States Department of

the Interior, Bureau of Reclamation, and hereinafter referred to as

the area. The increase for the area for each such crop shall be

determined by adding, to the extent applications are made therefor,

to the total allotments established for privately owned farms in

the area for the particular crop without regard to this subsection

(hereinafter referred to as the original allotments) an acreage

sufficient to make available for each such crop a total allotment

of twelve thousand acres for the area. The additional allotments

made available by this subsection shall be in addition to the

National, State, and county allotments otherwise established under

this section, and the acreage planted to wheat pursuant to such

increases in allotments shall not be taken into account in

establishing future State, county, and farm acreage allotments

except as may be desirable in providing increases in allotments for

subsequent years under this subsection for the production of Durum

(FOOTNOTE 1) wheat. The Secretary shall apportion the additional

allotment acreage made available under this subsection between

Modoc and Siskiyou Counties on the basis of the relative needs for

additional allotments for the portion of the area in each county.

The Secretary shall allot such additional acreage to individual

farms in the area for which applications for increased acreages are

made on the basis of tillable acres, crop rotation practices, type

of soil and topography, and the original allotment for the farm, if

any. The increase in the wheat acreage allotment for any farm

under this subsection (1) shall not be taken into account in

computing the farm wheat marketing allocation under section 1379b

of this title, and (2) shall be conditioned upon the production of

Durum (FOOTNOTE 1) wheat on the original allotment and on the

increased acreage. The producers on a farm receiving an increased

allotment under this subsection shall not be eligible for diversion

payments under section 1339 of this title.

(FOOTNOTE 1) So in original. Probably should not be

capitalized.

(k) Transfer of farm wheat acreage allotments in case of natural

disasters

Notwithstanding any other provision of this chapter, if the

Secretary determines that because of a natural disaster a portion

of the farm wheat acreage allotments in a county cannot be timely

planted or replanted, he may authorize the transfer of all or a

part of the wheat acreage allotment for any farm in the county so

affected to another farm in the county or in an adjoining county on

which one or more of the producers on the farm from which the

transfer is to be made will be engaged in the production of wheat

and will share in the proceeds thereof, in accordance with such

regulations as the Secretary may prescribe. Any farm allotment

transferred under this subsection shall be deemed to be planted on

the farm from which it was transferred for the purposes of acreage

history credits under this chapter.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 334, 52 Stat. 53; Apr. 7,

1938, ch. 107, Sec. 7, 52 Stat. 203; Feb. 6, 1942, ch. 44, Sec. 2,

56 Stat. 52; July 14, 1953, ch. 194, Sec. 1, 67 Stat. 151; Jan. 30,

1954, ch. 2, Sec. 4, 68 Stat. 6; Aug. 28, 1954, ch. 1041, title

III, Sec. 308, 68 Stat. 903; Feb. 19, 1955, ch. 8, 69 Stat. 9; Mar.

16, 1956, ch. 86, 70 Stat. 50; May 28, 1956, ch. 327, title III,

Sec. 301, 70 Stat. 203; Aug. 7, 1956, ch. 1030, Sec. 2, 70 Stat.

1117; Pub. L. 85-13, Apr. 2, 1957, 71 Stat. 10; Pub. L. 85-203,

Sec. 2, Aug. 28, 1957, 71 Stat. 477; Pub. L. 85-366, Apr. 4, 1958,

72 Stat. 78; Pub. L. 85-390, May 1, 1958, 72 Stat. 101; Feb. 16,

1938, ch. 30, title III, Sec. 378(d), as added Pub. L. 85-835,

title V, Sec. 501, Aug. 28, 1958, 72 Stat. 996; Pub. L. 86-385,

Feb. 20, 1960, 74 Stat. 4; Pub. L. 86-419, Apr. 9, 1960, 74 Stat.

39; Pub. L. 87-128, title I, Sec. 121, 125, Aug. 8, 1961, 75 Stat.

296, 300; Pub. L. 87-357, Oct. 4, 1961, 75 Stat. 778; Pub. L.

87-703, title III, Sec. 308(a), 313, Sept. 27, 1962, 76 Stat. 618,

620; Pub. L. 88-64, July 17, 1963, 77 Stat. 79; Pub. L. 88-297,

title II, Sec. 202(1)-(5), Apr. 11, 1964, 78 Stat. 178, 179; Pub.

L. 89-321, title V, Sec. 501(3)-(7), Nov. 3, 1965, 79 Stat.

1199-1201; Pub. L. 90-243, Jan. 2, 1968, 81 Stat. 781; Pub. L.

91-220, Mar. 31, 1970, 84 Stat. 86; Pub. L. 99-198, title III, Sec.

304, Dec. 23, 1985, 99 Stat. 1379.)

-REFTEXT-

REFERENCES IN TEXT

Section 124 of the Agricultural Act of 1961, referred to in

subsec. (e), is section 124 of Pub. L. 87-128 which was set out

below.

Section 307 of the Food and Agriculture Act of 1962, referred to

in subsec. (e), is section 307 of Pub. L. 87-703 which was set out

below.

-COD-

CODIFICATION

For omission of subsec. (h), see 1963 Amendment note below.

-MISC3-

AMENDMENTS

1985 - Pub. L. 99-198, in amending section generally, temporarily

substituted ''Farm marketing quotas'' for ''Apportionment of

national acreage allotment'' in section catchline. See Effective

and Termination Dates of 1985 Amendment note below.

Subsec. (a). Pub. L. 99-198 amended subsec. (a) generally,

temporarily substituting provisions requiring the Secretary to

establish, for each crop of wheat for which a national marketing

quota under section 1332 of this title has been proclaimed, a farm

marketing quota for each farm on which wheat was planted, or

considered planted, for harvest during the base period for

provisions which required the Secretary to apportion the national

acreage allotment for wheat, less a national acreage reserve and a

special reserve which were provided for herein, among the States on

the basis of each State's allotment for the preceding year,

adjusted to the extent deemed necessary by the Secretary to

establish a fair and equitable apportionment base for each State.

See Effective and Termination Dates of 1985 Amendment note below.

Subsec. (b). Pub. L. 99-198 amended subsec. (b) generally,

temporarily substituting provisions establishing a formula for

determination of the farm marketing quota for provisions which

required the Secretary to apportion each State's acreage allotment

for wheat among the counties of the State, less a reserve not to

exceed 3 per centum thereof, on the basis of the preceding year's

wheat allotment in each such county, adjusted to the extent deemed

necessary by the Secretary in order to establish a fair and

equitable apportionment base for each county. See Effective and

Termination Dates of 1985 Amendment note below.

Subsec. (c). Pub. L. 99-198 amended subsec. (c) generally,

temporarily substituting provisions defining the circumstances

under which wheat shall be considered to have been planted for

harvest on the farm in any crop year for provisions relating to the

apportionment among farms of each county's allotment under this

section. See Effective and Termination Dates of 1985 Amendment

note below.

Subsec. (d). Pub. L. 99-198, in amending section generally,

temporarily added subsec. (d).

Subsecs. (e) to (k). Pub. L. 99-198, in amending section

generally, temporarily struck out subsecs. (e) to (k) as follows:

Subsec. (e) related to increase in acreage allotments and

marketing quotas for class II durum wheat.

Subsec. (f) related to voluntary surrender of acreage

allotments for 1955, 1956, and 1957 crops of wheat.

Subsec. (g) related to plantings in excess of allotments or

where no allotment was established, in the case of 1958 and

subsequent crops of wheat.

Subsec. (h). There is no subsec. (h) for 1964 and subsequent

crop years. Subsec. (h) was omitted pursuant to the 1963

amendment to this section by Pub. L. 88-64. See 1963 Amendments

note set out under this section.

Subsec. (i) related to an increase in acreage allotments for

any kind of wheat in short supply, and enumerated provisions of

law inapplicable to such wheat.

Subsec. (j) related to increased durum wheat acreage allotments

to the Tulelake area in California for 1970 and subsequent crops

of wheat.

Subsec. (k) related to transfer of farm wheat acreage

allotments in case of natural disasters.

See Effective and Termination Dates of 1985 Amendment note below.

1970 - Subsec. (j). Pub. L. 91-220 removed the 1963 deadline on

the Secretary's power to increase acreage allotments, empowering

him to do so for the 1970 and subsequent wheat crops, made the area

increase for each crop determinable, among other factors, by the

extent to which applications are received therefor, removed

requirement that acreage planted to wheat pursuant to increased

allotments be considered in establishing future state, county and

farm acreage allotments except where such consideration may be

desirable in providing increased allotments for production of Durum

wheat in subsequent years, conditioned wheat acreage allotments

upon the production of Durum wheat on the original and increased

acreage allotment, prohibited consideration of the increased

acreage allotment in computing the farm wheat marketing allocation

under section 1379b of this title, made producers on farms

receiving increased allotments ineligible for diversion payments

under section 1339 of this title, and struck out provisions

prohibiting such producers from receiving price support, provisions

making land use rules of section 1339 of this title inapplicable to

farms receiving additional allotments, and provisions relating to

1962 and 1963 wheat crops.

1968 - Subsec. (a). Pub. L. 90-243 inserted provisions allowing

the Secretary to make additional use, with specified limitations,

of the 1 percent national wheat acreage allotment reserve in

counties which have wheat as the principal grain crop, an average

ratio of wheat acreage allotment to cropland on old wheat farms at

least 20 percent below that in an adjoining county or alternative

ratio, a low ratio caused by a shift prior to 1951 from wheat to an

alternative crop or crops which have become unprofitable because of

plant disease or sustained loss of markets, and no alternative

income-producing crop.

1965 - Subsec. (a). Pub. L. 89-321, Sec. 501(3), substituted the

preceding year's allotment for the acreage seeded for the

production of wheat over the preceding ten-year period as the basis

for determining the state's apportioned share of the national

acreage allotment and made provision for a special acreage reserve

to be apportioned only to counties where wheat is a major

income-producing crop.

Subsec. (b). Pub. L. 89-321, Sec. 501(4), substituted the

county's allotment covering the preceding year for the acreage

seeded for the production of wheat during the ten calendar years

immediately preceding the calendar year in which the national

acreage allotment is determined as the basis for determining the

county's allotment.

Subsec. (c)(3), (4). Pub. L. 89-321, Sec. 501(5), added pars. (3)

and (4).

Subsec. (d). Pub. L. 89-321, Sec. 501(6), repealed subsec. (d)

dealing with farms on which the entire amount of the farm marketing

excess has been delivered to the Secretary or stored in accordance

with applicable provisions.

Subsec. (g). Pub. L. 89-321, Sec. 501(7), struck out ''except as

prescribed in the provisos to the first sentence of subsections (a)

and (b) respectively of this section'' after ''county acreage

allotments.''

1964 - Subsec. (a). Pub. L. 88-297, Sec. 202(1), provided (1) for

the apportionment among the States of the national acreage

allotment for wheat less the special acreage reserve; (2) that in

establishing State acreage allotments, the acreage seeded for the

production of wheat plus the acreage diverted for 1965 for any farm

shall be the base acreage of wheat determined for the farm under

regulations for determining farm wheat acreage allotments for 1965;

and (3) beginning with the 1965 crop, a special acreage reserve and

uses of such reserve and apportionment to counties of such reserve.

Subsec. (b). Pub. L. 88-297, Sec. 202(2), provided that in

establishing county acreage allotments, the acreage seeded for the

production of wheat plus the acreage diverted for 1965 for any farm

shall be the base acreage of wheat determined for the farm under

regulations for determining farm wheat acreage allotments for 1965.

Subsec. (c)(1). Pub. L. 88-297, Sec. 202(3), inserted in third

sentence, cls. (i) and (ii), ''or 1965'' after ''1958'' wherever

appearing and in third sentence, cl. (iii), ''except 1965'' after

''any subsequent year.''

Subsec. (g). Pub. L. 88-297, Sec. 202(4), inserted in first

sentence ''except 1965'' after ''in 1958 or thereafter''.

Subsec. (k). Pub. L. 88-297, Sec. 202(5), added subsec. (k).

1963 - Subsec. (h). There is no subsec. (h) for 1964 and

Subsequent Wheat Crops. Pub. L. 87-703, Sec. 313(2), redesignated

former subsec. (i) (so designated through the 1963 Wheat Crop) as

(h). Pub. L. 88-64, Sec. 1(a), redesignated former subsec. (i) (so

designated through the 1963 Wheat Crop) as (j).

Subsec. (i). Pub. L. 88-64, Sec. 1(a), redesignated former

subsec. (i) (so designated through the 1963 Wheat Crop) as (j).

Pub. L. 87-703, Sec. 313(4), added subsec. (i) (effective with the

1964 Wheat Crop). See 1962 Amendment note hereunder.

Subsec. (j). Pub. L. 88-64 redesignated former subsec. (i) (so

designated through the 1963 Wheat Crop) as (j), inserted

''privately owned'' before ''farms'' in first and second sentences

and increased from eight to twelve thousand acres the total acreage

allotment for each crop.

1962 - Subsec. (e). Pub. L. 87-703, Sec. 308(a), 313(1), inserted

provision respecting participation in the special wheat program

formulated under section 307 of the Food and Agriculture Act of

1962 and substituted ''the 1962 and 1963 crops'' for ''any of the

1962, 1963, and 1964 crops'', respectively.

Subsec. (g). Pub. L. 87-703, Sec. 313(2), redesignated former

subsec. (h) as (g). Former subsec. (g), which related to weather

conditions, underplanting, and subnormal production affecting

acreage allotments, was repealed by such section 313(2). See

section 1377 of this title.

Subsec. (h). Pub. L. 87-703, Sec. 313 (2), (3), redesignated

former subsec. (i) as (h) and inserted the sentence ''The land-use

provisions of section 1339 of this title shall not be applicable to

any farm receiving an additional allotment under this subsection.''

Former subsec. (h) redesignated (g). See Effective Date of 1962

Amendment note below making the changes effective with the 1964

Wheat Crop. Pub. L. 88-64, Sec. 1(a), redesignated former subsec.

(i) (so designated through the 1963 Wheat Crop) as (j). There is no

subsec. (h) for 1964 and Subsequent Wheat Crops. See 1963 Amendment

note above.

Subsec. (i). Pub. L. 87-703, Sec. 313(4), added subsec. (i).

Former subsec. (i) redesignated (h).

1961 - Subsec. (c). Pub. L. 87-128, Sec. 121, designated existing

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

Subsec. (e). Pub. L. 87-128, Sec. 125, authorized the Secretary

to increase durum wheat acreage allotment during 1962, 1963, and

1964 crops of wheat when he determines that acreage allotments

established for durum wheat farms will be inadequate to produce a

sufficient quantity of durum wheat to meet demand therefor, not

including export demand involving a subsidy by or loss to the

Federal Government, by such percentage factor as is determined to

be necessary to provide for the increase in quantity the increase

not to exceed the cropland on the farm well suited to wheat and to

be conditioned upon the production of an acreage of durum wheat

(class II) at least equal to the average acreage of such wheat

produced during prescribed two-year period plus the number of acres

by which the allotment is increased, provided that any farm

receiving an increased durum wheat allotment shall not be required

as a condition of price support, or permitted, to participate in

the special 1962 wheat diversion program, and required the

Secretary to become familiar with the views and recommendations of

durum wheat grower and millers and manufacturers of semolina

products prior to making any determinations. Former provisions of

the subsection related to increase in allotment for durum wheat

farms for 1957 crop of wheat, conditioned upon the production of

durum wheat (class II) on the increased acreage and determined by

adding to the allotment established without regard to subsec. (e)

an acreage equal to the acreage by which the original allotment

exceeded the 1957 acreage on the farm of classes of wheat other

than durum wheat (class II), but not exceeding the smaller of the

cropland on the farm well suited to wheat or the wheat acreage on

the farm.

Subsec. (i). Pub. L. 87-357 substituted ''1958 through 1963'' for

''1958 through 1961'', and excluded from any general reduction in

farm acreage allotments or farm acreage diversion program for the

1962 or 1963 wheat crop, the farms for which acreage allotments are

increased under the provisions hereof, unless such reduction is

specifically made applicable.

1960 - Subsec. (d). Pub. L. 86-419 added subsec. (d).

Subsec. (i). Pub. L. 86-385 substituted ''1958 through 1961'' for

''1958 and 1959''.

1958 - Subsec. (a). Pub. L. 85-366, Sec. 1(1), inserted proviso

that in establishing State acreage allotments acreage seeded plus

acreage diverted for 1959 and subsequent years for farm on which

entire marketing excess is delivered to Secretary or stored to

avoid penalty shall be base acreage determined for farm by

Secretary's regulations for such year, but if such stored wheat is

subsequently depleted, resulting in penalty, farm's seeded plus

diverted acreage for year excess was produced shall be reduced to

acreage allotment for such year.

Subsec. (b). Pub. L. 85-366, Sec. 1(2), inserted proviso that in

establishing county acreage allotments acreage seeded plus acreage

diverted for 1959 and subsequent years for farm on which entire

marketing excess is delivered to Secretary or stored to avoid

penalty shall be base acreage determined for farm by Secretary's

regulations for such year, but if such stored wheat is subsequently

depleted, resulting in penalty, farm's seeded plus diverted acreage

for year excess was produced shall be reduced to acreage for such

year.

Subsec. (c). Pub. L. 85-366, Sec. 1(3), inserted sentence

relating to establishment of farm acreage allotment for 1958 and

past acreage for 1959 and subsequent years, with the proviso that

for 1959 and subsequent years, any farm on which entire marketing

excess is delivered to Secretary or stored to avoid penalty, the

past acreage for the year of delivery or storage shall be the base

acreage determined for farm by Secretary's regulations for such

year, but if such stored wheat is subsequently depleted, resulting

in penalty, past acreage of wheat for year excess was produced

shall be reduced to farm allotment for such year.

Subsec. (d). Act Feb. 16, 1938, Sec. 378(d), as added by Pub. L.

85-835, repealed subsec. (d) which related to adjustment of

allotment upon acquisition of part of farms by United States for

defense.

Subsec. (h). Pub. L. 85-366, Sec. 1(4), substituted ''future

State and county acreage allotments except as prescribed in the

provisos to the first sentence of subsections (a) and (b),

respectively, of this section'' for ''future State, county, and

farm acreage allotments''.

Subsec. (i). Pub. L. 85-390 added subsec. (i).

1957 - Subsec. (e). Pub. L. 85-13 substituted ''1957'' for

''1956'' in two places, substituted ''1952 through 1956'' for

''1951 through 1955'', prohibited increase of acreage allotment

under subsec. (e) by more than 60 acres, inserted clause providing

for fixing ''farm acreage allotment'' as allotment established

without regard to subsec. (e) and clause providing for counting

each acre planted to durum wheat as one-half acre of wheat for

application of section 1821(a)(1) of this title, and inserted

provision that ''wheat acreage on the farm'' includes acreage in

the wheat acreage report.

Subsec. (h). Pub. L. 85-203 added subsec. (h).

1956 - Subsec. (e). Act Mar. 16, 1956, extended increased durum

allotment to the 1956 crop and to certain counties in California,

shortened the production history from 10 to 5 years and advanced it

1 year to include 1955, and made increased durum allotment

dependent upon reduced planting of other wheat.

Subsec. (f). Act May 28, 1956, substituted ''1955, 1956, or

1957'' for ''1955'', in two places.

Subsec. (g). Act Aug. 7, 1956, added subsec. (g).

1955 - Subsec. (e). Act Feb. 19, 1955, removed for 1955,

requirements restricting increased acreage allotments to producers

who devote a normal share of their original allotment to durum and

who have produced durum in 1 or more of the preceding 3 years.

1954 - Subsec. (e). Act Jan. 30, 1954, added subsec. (e).

Subsec. (f). Act Aug. 28, 1954, added subsec. (f).

1953 - Subsec. (a). Act July 14, 1953, provided a reserve of up

to 1 percent of the national acreage allotment for counties in

which new areas have come into production.

Subsec. (b). Act July 14, 1953, provided for a 3 percent reserve

of State acreage allotments for new farms.

Subsec. (c). Act July 14, 1953, recognized the use of past

acreage as a factor in making farm allotments and placed the

reserves for new farms on a State basis instead of a county basis.

Subsec. (d). Act July 14, 1953, made the provision relating to

farms acquired for national-defense purposes apply to farms

acquired in 1950 or thereafter instead of 1940 or thereafter.

1942 - Subsec. (d). Act Feb. 6, 1942, added subsec. (d).

1938 - Subsec. (b). Act Apr. 7, 1938, struck out ''net'' before

''acreage diverted'' from parenthetical provision.

EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT

Section 304 of Pub. L. 99-198 provided that the amendment made by

that section is effective only for 1987 through 1990 crops of

wheat.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-321 effective beginning with crop planted

for harvest in calendar year 1966, see section 501 of Pub. L.

89-321, set out as a note under section 1332 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by section 313 of Pub. L. 87-703 effective only with

respect to programs applicable to crops planted for harvest in

calendar year 1964 or any subsequent year and marketing years

beginning in calendar year 1964, or any subsequent year, see

section 323 of Pub. L. 87-703, set out as a note under section 1301

of this title.

EFFECTIVE DATE OF 1956 AMENDMENT

Act Aug. 7, 1956, provided that the amendment made by that act is

effective beginning with 1957 crop of wheat.

EFFECTIVE DATE OF 1955 AMENDMENT

Act Feb. 19, 1955, provided that the amendment made by that act

is effective beginning with 1955 crop of wheat.

EFFECTIVE DATE OF 1953 AMENDMENT

Section 5 of act July 14, 1953, provided that: ''Sections 1, 2,

and 3 of this Act (amending this section and sections 1339 and 1340

of this title) shall become effective with respect to the 1954 and

subsequent crops of wheat.''

SAVINGS PROVISION

Transfer or reassignment of allotment as remaining in effect and

ineligibility of displaced farm owner for additional allotment

notwithstanding repeal of subsec. (d), see note set out under

section 1378 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 crop of wheat, see section 310(a) of

Pub. L. 99-198, set out as a note under section 1332 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Pub. L. 91-524, title IV, Sec. 404(2), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1972

through 1977 crops of wheat.

FARM ACREAGE ALLOTMENTS FOR 1966 CROP OF WHEAT

Section 512 of Pub. L. 89-321 required the national, State,

county, and farm acreage allotments for 1966 crop of wheat to be

established in accordance with the provisions of law in effect

prior to Nov. 3, 1965.

1963 DIVERTED WHEAT ACREAGE PROGRAM

Section 307 of Pub. L. 87-703 provided that payments were

authorized to be made in cash or wheat by the Commodity Credit

Corporation to producers on any farm, except farms with new farm

wheat allotments, if marketing quotas were in effect for the 1963

wheat crop, if they diverted certain acreage from wheat production,

and if they devoted such acreage to conservation uses; that such

acreage was to be in addition to acreage diverted to conservation

uses for which payment was made under other federal programs

although cost-sharing payments under the agricultural conservation

program or the Great Plains program were not precluded; that

advance payments up to fifty per cent could be made; that wheat

stored to avoid a marketing quota penalty was not to be released

for underplanting based on such diverted acreage; that the

Secretary could promulgate regulations; and that the Commodity

Credit Corporation could use its capital funds and assets to make

payments.

APPLICABILITY OF 1963 DIVERTED WHEAT ACREAGE PROGRAM TO INCREASED

ALLOTMENT FARMS

Section 308(b) of Pub. L. 87-703 provided that the special wheat

program formulated under section 307 of Pub. L. 87-703 (set out

above) was not applicable to any farm receiving an additional

acreage allotment for wheat in short supply under section 334(i) of

the Agricultural Adjustment Act of 1938, as amended (subsec. (i) of

this section).

1962 DIVERTED WHEAT ACREAGE PROGRAM

Section 124 of Pub. L. 87-128, as amended by Pub. L. 87-410, Mar.

3, 1962, 76 Stat. 19; Pub. L. 87-451, Sec. 1-3, May 15, 1962, 76

Stat. 70, provided that producers on any farm, except farms with a

new farm wheat allotment, were entitled to payments if marketing

quotas were in effect for the 1962 wheat crop, if they diverted

certain acreage from wheat production, and if such diverted acreage

were devoted to conservation uses; that the payments were to be

made by the Commodity Credit Corporation in cash or wheat and

computed as therein provided; that additional acreage could be

diverted and payments made with respect thereto; that any diverted

acreage was to be in addition to acreage diverted for conservation

uses for which payment is made under any other federal program

except that cost-sharing payments under the agricultural

conservation program or the Great Plains program were not

precluded; that advance payments up to 50 per cent could be made;

that wheat stored to avoid a marketing quota penalty was not to be

released for underplanting based on such diverted acreage; that the

Secretary could promulgate regulations; and that the Commodity

Credit Corporation could use its capital funds and assets to make

payments.

ACREAGE ALLOTMENT FOR 1954 CROP

Section 4(a) of act July 14, 1953, provided that the National

acreage allotment for 1954 crop of wheat shall not be less than

sixty-two million acres.

ACREAGE ALLOTMENT FOR 1950 CROP

Section 5 of act Aug. 29, 1949, ch. 518, 63 Stat. 677, provided

that the farm acreage allotment of wheat for 1950 crop for any farm

was not to be less than the larger of -

(A) 50 per centum of -

(1) the acreage on the farm seeded for the production of

wheat in 1949, and

(2) any other acreage seeded for the production of wheat in

1948 which was fallowed and from which no crop was harvested in

the calendar year 1949, or

(B) 50 per centum of -

(1) the acreage on the farm seeded for the production of

wheat in 1948, and

(2) any other acreage seeded for the production of wheat in

1947 which was fallowed and from which no crop was harvested in

the calendar year 1948,

adjusted in the same ratio as the national average seedings for the

production of wheat during the ten calendar years 1939-1948

(adjusted as provided by this chapter) bore to the national acreage

allotment for wheat for the 1950 crop: Provided, That no acreage

was to be included under (A) or (B) which the Secretary, by

appropriate regulations, determined would become an undue erosion

hazard under continued farming. To the extent that the allotment

to any county was insufficient to provide for such minimum farm

allotments, the Secretary was to allot such county such additional

acreage (which was to be in addition to the county, State, and

national acreage allotments otherwise provided for under the

Agricultural Adjustment Act of 1938, as amended (this chapter)) as

was necessary in order to provide for such minimum farm allotments.

EMERGENCY FARM ACREAGE ALLOTMENT

Act Feb. 28, 1945, ch. 15, 59 Stat. 9, provided for farm acreage

allotment during national emergency proclaimed by the President on

Sept. 8, 1939, and May 27, 1941. Such emergencies terminated on

July 25, 1947, by the provisions of Joint Res. July 25, 1947, ch.

327, Sec. 3, 61 Stat. 451.

-CITE-

7 USC Sec. 1334a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1334a. Omitted

-COD-

CODIFICATION

Section, act Aug. 28, 1954, ch. 1041, title III, Sec. 314, 68

Stat. 905, related to 1955 wheat acreage allotment in areas where a

summer fallow crop rotation of wheat was a common practice.

-CITE-

7 USC Sec. 1334a-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1334a-1. Summer fallow farms; upper limit on required set

aside acreage for 1971 through 1977 wheat, feed grain, and

cotton crops

-STATUTE-

Notwithstanding any other provision of law, for the 1971 through

1977 crops of wheat, feed grains and cotton, if in any year at

least 55 per centum of the cropland acreage on an established

summer fallow farm is devoted to a summer fallow use, no further

acreage shall be required to be set aside under the wheat, feed

grain and cotton programs for such year.

-SOURCE-

(Pub. L. 91-524, title IV, Sec. 410, Nov. 30, 1970, 84 Stat. 1367;

Pub. L. 93-86, Sec. 1(17), Aug. 10, 1973, 87 Stat. 230.)

-COD-

CODIFICATION

Section was enacted as part of the Agricultural Act of 1970, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-MISC3-

AMENDMENTS

1973 - Pub. L. 93-86 substituted ''1971 through 1977'' for

''1971, 1972, and 1973''.

-CITE-

7 USC Sec. 1334b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1334b. Designation of States outside commercial

wheat-producing areas

-STATUTE-

If the acreage allotment for any State for any crop of wheat is

twenty-five thousand acres or less, the Secretary, in order to

promote efficient administration of this chapter and the

Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), may designate

such State as outside the commercial wheat-producing area for the

marketing year for such crop. If such State is so designated,

acreage allotments for such crop and marketing quotas for the

marketing year therefor shall not be applicable to any farm in such

State. Acreage allotments in any State shall not be increased by

reason of such designation.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 334a, as added Pub. L.

87-703, title III, Sec. 314, Sept. 27, 1962, 76 Stat. 620.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1949, referred to in text, 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. For

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

note set out under section 1421 of this title and Tables.

-MISC2-

EFFECTIVE DATE

Section effective only with respect to programs applicable to

crops planted for harvest in calendar year 1964 or any subsequent

year and marketing years beginning in calendar year 1964, or any

subsequent year, see section 323 of Pub. L. 87-703, set out as an

Effective Date of 1962 Amendment note under section 1301 of this

title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

-CITE-

7 USC Sec. 1335 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1335. Small-farm exemption; small-farm base acreage; election;

acreage allotment; land-use provisions; price support; wheat

marketing certificates

-STATUTE-

Notwithstanding any other provision of this subpart, no farm

marketing quota for any crop of wheat shall be applicable to any

farm with a farm acreage allotment of less than fifteen acres if

the acreage of such crop of wheat does not exceed the small-farm

base acreage determined for the farm, unless the operator elects in

writing on a form and within the time prescribed by the Secretary

to be subject to the farm acreage allotment and marketing quota.

The small-farm base acreage for a farm shall be the smaller of (A)

the average acreage of the crop of wheat planted for harvest in the

three years 1959, 1960, and 1961, or such later three-year period,

excluding 1963, determined by the Secretary to be representative,

with adjustments for abnormal weather conditions, established

crop-rotation practices on the farm, and such other factors as the

Secretary determines should be considered for the purpose of

establishing a fair and equitable small-farm base acreage, or (B)

fifteen acres. The acreage allotment for any farm shall be the

larger of (1) the small-farm base acreage determined as provided

above on the basis of the three-year period 1959-1961, reduced by

the same percentage by which the national acreage allotment for the

crop is reduced below fifty-five million acres, or (2) the acreage

allotment determined without regard to (1) above. If the operator

of any such farm fails to make such election with respect to any

crop of wheat, (i) for the purposes of section 1340 of this title,

the farm acreage allotment for such crop of wheat shall be deemed

to be the larger of (A) the small-farm base acreage or (B) the

acreage allotment for the farm, (ii) the land-use provisions of

section 1339 of this title shall be inapplicable to the farm, (iii)

such crop of wheat shall not be eligible for price support, and

(iv) wheat marketing certificates applicable to such crop shall not

be issued with respect to the farm. The additional acreage

required to provide acreage allotments for farms based upon

small-farm base acreages under this section shall be in addition to

National, State, and county acreage allotments. This section shall

not be applicable to the crops planted for harvest in 1967 and

subsequent years.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 335, 52 Stat. 54; July 26,

1939, ch. 379, 53 Stat. 1126; June 6, 1940, ch. 237, 54 Stat. 232;

July 3, 1948, ch. 827, title II, Sec. 204(a), 62 Stat. 1256; Aug.

28, 1954, ch. 1041, title III, Sec. 309, 68 Stat. 903; Pub. L.

85-203, Sec. 1, Aug. 28, 1957, 71 Stat. 477; Pub. L. 87-128, title

I, Sec. 122(e), Aug. 8, 1961, 75 Stat. 297; Pub. L. 87-703, title

III, Sec. 315, Sept. 27, 1962, 76 Stat. 621; Pub. L. 89-321, title

V, Sec. 501(8), Nov. 3, 1965, 79 Stat. 1201; Pub. L. 99-198, title

III, Sec. 305, Dec. 23, 1985, 99 Stat. 1380.)

-MISC1-

AMENDMENTS

1985 - Pub. L. 99-198 amended section generally, temporarily

substituting provisions relating to marketing penalties for

provisions for small-farm exemptions from marketing quotas. See

Effective and Termination Dates of 1985 Amendment note below.

1965 - Pub. L. 89-321 made section inapplicable to crops planted

for harvest in 1967 and subsequent years.

1962 - Pub. L. 87-703 substituted provisions for small-farm

exemption from marketing quotas for provisions of subsecs. (a),

(b), (c), (e), and (f), respecting the establishment of marketing

quotas, the amount of national and farm marketing quotas,

designation of States outside commercial wheat-producing areas (now

covered by section 1334b of this title), and feed wheat exemption

permitting any producer to harvest up to 30 acres of wheat without

penalty if the entire crop is used on the farm where produced.

1961 - Subsec. (d). Pub. L. 87-128 repealed subsec. (d) which

provided that no farm marketing quota with respect to wheat shall

be applicable in any marketing year to any farm on which the normal

production of the acreage planted to wheat of the current crop is

less than 200 bushels.

1957 - Subsec. (f). Pub. L. 85-203 added subsec. (f).

1954 - Subsec. (a). Act Aug. 28, 1954, Sec. 309(a), substituted

''May 15'' for ''July 1''.

Subsec. (e). Act Aug. 28, 1954, Sec. 309(b), added subsec. (e).

1948 - Subsec. (a). Act July 3, 1948, changed conditions which

must be determined by the Secretary to exist before marketing

quotas can be imposed.

1940 - Subsec. (d). Act June 6, 1940, substituted ''two hundred''

for ''one hundred''.

EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT

Section 305 of Pub. L. 99-198 provided that the amendment made by

that section is effective only for 1987 through 1990 crops of

wheat.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-321 effective beginning with the crop

planted for harvest in calendar year 1966, see section 501 of Pub.

L. 89-321, set out as a note under section 1332 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-703 effective only with respect to

programs applicable to crops planted for harvest in calendar year

1964 or any subsequent year and marketing years beginning in

calendar year 1964, or any subsequent year, see section 323 of Pub.

L. 87-703, set out as a note under section 1301 of this title.

EFFECTIVE DATE OF 1961 AMENDMENT

Section 122(e) of Pub. L. 87-128 provided that the amendment made

by that section is effective with 1962 crop of wheat.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 crop of wheat, see section 310(a) of

Pub. L. 99-198, set out as a note under section 1332 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Pub. L. 91-524, title IV, Sec. 404(1), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1971

through 1977 crops of wheat.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1334, 1336, 1339, 1379c,

1441, 1445a of this title.

-CITE-

7 USC Sec. 1336 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1336. Referendum

-STATUTE-

If a national marketing quota for wheat for one, two, or three

marketing years is proclaimed, the Secretary shall, not later than

August 1 of the calendar year in which such national marketing

quota is proclaimed, conduct a referendum, by secret ballot, of

farmers to determine whether they favor or oppose marketing quotas

for the marketing year or years for which proclaimed. Any producer

who has a farm acreage allotment shall be eligible to vote in any

referendum held pursuant to this section, except that a producer

who has a farm acreage allotment of less than fifteen acres shall

not be eligible to vote unless the farm operator elected pursuant

to section 1335 of this title to be subject to the farm marketing

quota. The Secretary shall proclaim the results of any referendum

held hereunder within thirty days after the date of such

referendum, and if the Secretary determines that more than

one-third of the farmers voting in the referendum voted against

marketing quotas, the Secretary shall proclaim that marketing

quotas will not be in effect with respect to the crop of wheat

produced for harvest in the calendar year following the calendar

year in which the referendum is held. If the Secretary determines

that two-thirds or more of the farmers voting in a referendum

approve marketing quotas for a period of two or three marketing

years, no referendum shall be held for the subsequent year or years

of such period. Notwithstanding any other provision hereof, the

referendum with respect to the national marketing quota for wheat

for the marketing year beginning June 1, 1986, may be conducted not

later than thirty-one days after December 20, 1985.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 336, 52 Stat. 55; July 3,

1948, ch. 827, title II, Sec. 204(b), 62 Stat. 1256; Pub. L.

87-104, July 25, 1961, 75 Stat. 220; Pub. L. 87-128, title I, Sec.

122(f), Aug. 8, 1961, 75 Stat. 297; Pub. L. 87-540, July 19, 1962,

76 Stat. 170; Pub. L. 87-703, title III, Sec. 316, Sept. 27, 1962,

76 Stat. 621; Pub. L. 88-297, title II, Sec. 202(6), Apr. 11, 1964,

78 Stat. 179; Pub. L. 89-82, July 24, 1965, 79 Stat. 258; Pub. L.

91-348, July 23, 1970, 84 Stat. 448; Pub. L. 91-455, Oct. 15, 1970,

84 Stat. 969; Pub. L. 93-68, July 10, 1973, 87 Stat. 161; Pub. L.

95-48, June 17, 1977, 91 Stat. 229; Pub. L. 97-24, Sec. 1, July 23,

1981, 95 Stat. 143; Pub. L. 97-62, Oct. 14, 1981, 95 Stat. 1010;

Pub. L. 97-67, Sec. 2, Oct. 20, 1981, 95 Stat. 1039; Pub. L. 97-77,

Sec. 2(b), Nov. 13, 1981, 95 Stat. 1069; Pub. L. 99-63, July 11,

1985, 99 Stat. 119; Pub. L. 99-198, title III, Sec. 306, Dec. 23,

1985, 99 Stat. 1382.)

-COD-

CODIFICATION

''December 20, 1985'' substituted in text for ''adjournment sine

die of the first session of the Ninety-ninth Congress''.

-MISC3-

AMENDMENTS

1985 - Pub. L. 99-198, temporarily amended section generally.

Prior to amendment, section read as follows: ''If a national

marketing quota for wheat for one, two, or three marketing years is

proclaimed, the Secretary shall, not later than August 1 of the

calendar year in which such national marketing quota is proclaimed,

conduct a referendum, by secret ballot, of farmers to determine

whether they favor or oppose marketing quotas for the marketing

year or years for which proclaimed. Any producer who has a farm

acreage allotment shall be eligible to vote in any referendum held

pursuant to this section, except that a producer who has a farm

acreage allotment of less than fifteen acres shall not be eligible

to vote unless the farm operator elected pursuant to section 1335

of this title to be subject to the farm marketing quota. The

Secretary shall proclaim the results of any referendum held

hereunder within thirty days after the date of such referendum, and

if the Secretary determines that more than one-third of the farmers

voting in the referendum voted against marketing quotas, the

Secretary shall proclaim that marketing quotas will not be in

effect with respect to the crop of wheat produced for harvest in

the calendar year following the calendar year in which the

referendum is held. If the Secretary determines that two-thirds or

more of the farmers voting in a referendum approve marketing quotas

for a period of two or three marketing years, no referendum shall

be held for the subsequent year or years of such period.

Notwithstanding any other provision hereof, the referendum with

respect to the national marketing quota for wheat for the marketing

year beginning June 1, 1986, may be conducted not later than

thirty-one days after adjournment sine die of the first session of

the Ninety-ninth Congress.'' See Effective and Termination Dates of

1985 Amendment note below.

Pub. L. 99-63 substituted ''year beginning June 1, 1986, may be

conducted not later than thirty-one days after adjournment sine die

of the first session of the Ninety-ninth Congress'' for ''year

beginning June 1, 1982, may be conducted not later than the earlier

of the following: (1) thirty days after adjournment sine die of the

first session of the Ninety-seventh Congress, or (2) January 1,

1982''.

1981 - Pub. L. 97-77 substituted ''January 1, 1982'' for

''November 15, 1981'' in sentence covering the date of the

referendum for the national marketing quota for wheat for the

marketing year beginning June 1, 1982.

Pub. L. 97-62 and Pub. L. 97-67 made identical amendments

providing for substitution of ''November 15, 1981'' for ''October

15, 1981'' in sentence covering the date of the referendum for the

national marketing quota for wheat for the marketing year beginning

June 1, 1982.

Pub. L. 97-24 substituted ''June 1, 1982'' for ''June 1, 1978'',

''Ninety-seventh Congress'' for ''Ninety-fifth Congress'', and

''October 15, 1981'' for ''October 15, 1977''.

1977 - Pub. L. 95-48 substituted provisions extending the date

for the conduct of the referendum with respect to the national

marketing for wheat for the marketing year beginning June 1, 1978,

by allowing the referendum to be conducted not later than thirty

days after the adjournment sine die of the first session of the

Ninety-fifth Congress or Oct. 15, 1977, whichever is earlier, for

provisions which had set the time limits for the referendums with

respect to the national marketing quotas for wheat for the

marketing years beginning July 1, 1966, July 1, 1971, and July 1,

1974, respectively.

1973 - Pub. L. 93-68 extended time within which the Secretary of

Agriculture is required to conduct a referendum with respect to the

1974 crop of wheat, if marketing quotas are to be in effect for

that crop, to the earlier of thirty days after adjournment of the

first session of the Ninety-third Congress or Oct. 15, 1973.

1970 - Pub. L. 91-455 inserted provision extending until 30 days

after adjournment sine die of the second session of the 91st

Congress the time within which the Secretary of Agriculture is

required to conduct a referendum with respect to the 1971 crop of

wheat, if marketing quotas are to be in effect for that crop.

Pub. L. 91-348 extended the time within which the Secretary of

Agriculture is required to conduct a referendum with respect to the

1971 crop of wheat, if marketing quotas are to be in effect for

that crop, to the earlier of thirty days after adjournment sine die

of the second session of the ninety-first Congress or October 15,

1970.

1965 - Pub. L. 89-82 extended until 30 days after adjournment

sine die of the first session of the 89th Congress the time within

which the Secretary of Agriculture is required to conduct a

referendum with respect to the 1966 crop of wheat, if marketing

quotas are to be in effect for that crop.

1964 - Pub. L. 88-297 substituted ''not later than August 1 of

the calendar year in which such national marketing quota is

proclaimed'' for ''not later than sixty days after such

proclamation is published in the Federal Register''.

1962 - Pub. L. 87-703 substituted provisions for a referendum to

be held not later than sixty days after publication in the Federal

Register of national marketing quota proclamation to determine if

the farmers favor or oppose the quota for the year or years for

which proclaimed, making producers on farms having farm acreage

allotments eligible to vote except farmers with small farm base

acreage for which the operator did not elect to be subject to the

program, directing results of referendum to be proclaimed within 30

days after date of referendum for provisions for referendum between

date of proclamation of national marketing quota and July 25,

making farmers, who produced more than 15 acres of wheat eligible

to vote, excluding farmers who obtained the feed wheat exemption

for the immediately preceding crop, permitting such referendum for

marketing year beginning July 1, 1962, to be held not later than

Aug. 26, 1961, and excluding farmers from voting in the 1961

referendum who had not produced in excess of 13.5 acres of wheat in

at least one of the years 1959, 1960, or 1961 and permitting such

referendum for marketing year beginning July 1, 1963, to be held

not later than Aug. 31, 1962.

Pub. L. 87-540 inserted provisions for conducting wheat marketing

quota referendum for marketing year beginning July 1, 1963, not

later than August 31, 1962.

1961 - Pub. L. 87-128 prohibited farmers who have not produced in

excess of 13.5 acres of wheat in at least one of the years 1959,

1960, or 1961 from voting in the referendum conducted with respect

to the national marketing quota for the marketing year beginning

July 1, 1962.

Pub. L. 87-104 inserted provisions for conducting wheat marketing

quota referendum for marketing year beginning July 1, 1962, not

later than August 26, 1961.

1948 - Act July 3, 1948, substituted ''July 25'' for ''June 10''.

EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT

Section 306 of Pub. L. 99-198 provided that the amendment made by

that section is effective only for 1987 through 1990 crops of

wheat.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-703 effective only with respect to

programs applicable to crops planted for harvest in calendar year

1964 or any subsequent year and marketing years beginning in

calendar year 1964, or any subsequent year, see section 323 of Pub.

L. 87-703, set out as a note under section 1301 of this title.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 crop of wheat, see section 310(a) of

Pub. L. 99-198, set out as a note under section 1332 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Pub. L. 91-524, title IV, Sec. 404(1), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1971

through 1977 crops of wheat.

DATE OF REFERENDUM FOR 1954 CROP

Act July 14, 1953, ch. 194, Sec. 4(b), 67 Stat. 152, provided

that the referendum with respect to 1954 crop of wheat could be

held as late as Aug. 15, 1953.

-CITE-

7 USC Sec. 1337 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1337. Repealed. Pub. L. 87-703, title III, Sec. 317, Sept. 27,

1962, 76 Stat. 622

-MISC1-

Section, act Feb. 16, 1938, ch. 30, title III, Sec. 337, 52 Stat.

55, related to adjustment and suspension of quotas.

EFFECTIVE DATE OF REPEAL

Repeal effective only with respect to programs applicable to

crops planted for harvest in calendar year 1964 or any subsequent

year and marketing years beginning in calendar year 1964, or any

subsequent year, see section 323 of Pub. L. 87-703, set out as a

note under section 1301 of this title.

-CITE-

7 USC Sec. 1338 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1338. Transfer of quotas

-STATUTE-

Farm marketing quotas for wheat shall not be transferable, but,

in accordance with regulations prescribed by the Secretary for such

purpose, any farm marketing quota in excess of the supply of wheat

for such farm for any marketing year may be allocated to other

farms on which the acreage allotment has not been exceeded.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 338, 52 Stat. 55; Pub. L.

99-198, title III, Sec. 307, Dec. 23, 1985, 99 Stat. 1382.)

-MISC1-

AMENDMENTS

1985 - Pub. L. 99-198 amended section generally, temporarily

substituting provisions for voluntary surrender of any part of a

farm marketing quota by the producer and reallocation by the

Secretary to other farms having farm marketing quotas for

provisions authorizing allocation of excess quotas to other farms

on which the acreage allotment had not been exceeded. See

Effective and Termination Dates of 1985 Amendment note below.

EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT

Section 307 of Pub. L. 99-198 provided that the amendment made by

that section is effective only for 1987 through 1990 crops of

wheat.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 crop of wheat, see section 310(a) of

Pub. L. 99-198, set out as a note under section 1332 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Pub. L. 91-524, title IV, Sec. 404(1), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1971

through 1977 crops of wheat.

-CITE-

7 USC Sec. 1339 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1339. Land use

-STATUTE-

(a) Penalties: computation, lien, joint and several liability and

interest; exceptions: nonsurplus supply crops, substantial

impairment, and nonproduction of wheat; diverted acreage:

amount, annual identity, and grazing; crops available for

marketing

(1) During any year in which marketing quotas for wheat are in

effect, the producers on any farm (except a new farm receiving an

allotment from the reserve for new farms) on which any crop is

produced on acreage required to be diverted from the production of

wheat shall be subject to a penalty on such crop, in addition to

any marketing quota penalty applicable to such crops, as provided

in this subsection unless (1) the crop is designated by the

Secretary as one which is not in surplus supply and will not be in

surplus supply if it is permitted to be grown on the diverted

acreage, or as one the production of which will not substantially

impair the purpose of the requirements of this section, or (2) no

wheat is produced on the farm, and the producers have not filed an

agreement or a statement of intention to participate in the payment

program formulated pursuant to subsection (b) of this section. The

acreage required to be diverted from the production of wheat on the

farm shall be an acreage of cropland equal to the number of acres

determined by multiplying the farm acreage allotment by the

diversion factor determined by dividing the number of acres by

which the national acreage allotment (less an acreage equal to the

increased acreage allotted for 1966 pursuant to section 1335 of

this title) is reduced below fifty-five million acres by the number

of acres in the national acreage allotment (less an acreage equal

to the increased acreage allotted for 1966 pursuant to section 1335

of this title). The actual production of any crop subject to

penalty under this subsection shall be regarded as available for

marketing and the penalty on such crop shall be computed on the

actual acreage of such crop at the rate of 65 per centum of the

parity price per bushel of wheat as of May 1 of the calendar year

in which such crop is harvested, multiplied by the normal yield of

wheat per acre established for the farm. Until the producers on

any farm pay the penalty on such crop, the entire crop of wheat

produced on the farm and any subsequent crop of wheat subject to

marketing quotas in which the producer has an interest shall be

subject to a lien in favor of the United States for the amount of

the penalty. Each producer having an interest in the crop or crops

on acreage diverted or required to be diverted from the production

of wheat shall be jointly and severally liable for the entire

amount of the penalty. The persons liable for the payment or

collection of the penalty under this section shall be liable also

for interest thereon at the rate of 6 per centum per annum from the

date the penalty becomes due until the date of payment of such

penalty.

(2) The Secretary may require that the acreage on any farm

diverted from the production of wheat be land which was diverted

from the production of wheat in the previous year, to the extent he

determines that such requirement is necessary to effectuate the

purposes of this part.

(3) The Secretary may permit the diverted acreage to be grazed in

accordance with regulations prescribed by the Secretary.

(b) Payment program for 1964 through 1970 crops; terms and

conditions; amount; additional diverted acreage; conservation

and soil-conserving uses; adjustment; knowledge of exceeding

acreage allotment; acreage allotment not exceeded by delivery

to Secretary of farm marketing excess or storage in accordance

with regulations to avoid or postpone payment of penalty or by

farms exempt from marketing quota; new farms ineligible for

payments; sharing and medium of payments

The Secretary is authorized to formulate and carry out a program

with respect to the crops of wheat planted for harvest in the

calendar years 1964 through 1970 under which, subject to such terms

and conditions as he determines are desirable to effectuate the

purposes of this section, payments may be made in amounts not in

excess of 50 per centum of the estimated basic county support rate

for wheat not accompanied by marketing certificates on the normal

production of the acreage diverted taking into account the income

objectives of the chapter, determined by the Secretary to be fair

and reasonable with respect to acreage diverted pursuant to

subsection (a) of this section. Any producer who complies with his

1964 farm acreage allotment for wheat and with the other

requirements of the program shall be eligible to receive payments

under the program for the 1964 crop of wheat. The Secretary may

permit producers on any farm to divert from the production of wheat

an acreage, in addition to the acreage diverted pursuant to

subsection (a) of this section, equal to 50 per centum of the farm

acreage allotment for wheat: Provided, That the producers on any

farm may, at their election, divert such acreage in addition to the

acreage diverted pursuant to subsection (a) of this section, as

will bring the total acreage diverted on the farm to twenty-five

acres. Such program shall require (1) that the diverted acreage

shall be devoted to conservation uses approved by the Secretary;

(2) that the total acreage of cropland on the farm devoted to

soil-conserving uses, including summer fallow and idle land but

excluding the acreage diverted as provided above, shall be not less

than the total average acreage of cropland devoted to

soil-conserving uses including summer fallow and idle land on the

farm during a representative period, as determined by the

Secretary, adjusted to the extent the Secretary determines

appropriate for (i) abnormal weather conditions or other factors

affecting production, (ii) established crop-rotation practices on

the farm, (iii) participation in other Federal farm programs, (iv)

unusually high percentage of land on the farm devoted to conserving

uses, and (v) other factors which the Secretary determines should

be considered for the purpose of establishing a fair and equitable

soil-conserving acreage for the farm; and (3) that the producer

shall not knowingly exceed (i) any farm acreage allotment in effect

for any commodity produced on the farm, and (ii) except as the

Secretary may by regulations prescribe, with the farm acreage

allotments on any other farm for any crop in which the producer has

a share: Provided, That no producer shall be deemed to have

exceeded a farm acreage allotment for wheat if the entire amount of

the farm marketing excess is delivered to the Secretary or stored

in accordance with applicable regulations to avoid or postpone

payment of the penalty: And provided further, That no producer

shall be deemed to have exceeded a farm acreage allotment for any

crop of wheat if the farm is exempt from the farm marketing quota

for such crop under section 1335 of this title. The producers on a

new farm shall not be eligible for payments hereunder. The

Secretary shall provide for the sharing of payment among producers

on the farm on a fair and equitable basis. Payments may be made in

cash or in wheat.

(c) Adjustment of payments

The Secretary may provide for adjusting any payment on account of

failure to comply with the terms and conditions of the land-use

program formulated under subsection (b) of this section.

(d) Advance payments

Not to exceed 50 per centum of any payment to producers under

subsection (b) of this section may be made in advance of

determination of performance.

(e) Diverted acreage used for production of certain crops; rate of

payment; limitation on rate

The Secretary may permit all or any part of the diverted acreage

to be devoted to the production of guar, sesame, safflower,

sunflower, castor beans, mustard seed, crambe, plantago ovato, and

flaxseed, if he determines that such production of the commodity is

needed to provide an adequate supply, is not likely to increase the

cost of the price-support program and will not adversely affect

farm income, subject to the condition that payment with respect to

diverted acreage devoted to any such crop shall be at a rate

determined by the Secretary to be fair and reasonable taking into

consideration the use of such acreage for the production of such

crops: Provided, That in no event shall the payment exceed one-half

the rate which otherwise would be applicable if such acreage were

devoted to conservation uses.

(f) Additional terms and conditions

The program formulated pursuant to subsection (b) of this section

may include such terms and conditions, including provision for the

control of erosion, in addition to those specifically provided for

herein, as the Secretary determines are desirable to effectuate the

purposes of this section.

(g) Regulations

The Secretary is authorized to promulgate such regulations as may

be desirable to carry out the provisions of this section.

(h) Commodity Credit Corporation funds and authorization of

appropriations for payments and administrative expenses

The Commodity Credit Corporation is authorized to utilize its

capital funds and other assets for the purpose of making the

payments authorized in this section and to pay administrative

expenses necessary in carrying out this section during the period

ending June 30, 1965. There is authorized to be appropriated such

amounts as may be necessary thereafter to pay such administrative

expenses.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 339, as added Pub. L.

87-703, title III, Sec. 318, Sept. 27, 1962, 76 Stat. 622; amended

Pub. L. 88-297, title II, Sec. 202(7)-(9), Apr. 11, 1964, 78 Stat.

179; Pub. L. 89-321, title V, Sec. 501(9), (10), 507, Nov. 3, 1965,

79 Stat. 1201, 1204; Pub. L. 90-559, Sec. 1(1), Oct. 11, 1968, 82

Stat. 996.)

-MISC1-

PRIOR PROVISIONS

A prior section 1339, act Feb. 16, 1938, ch. 30, title III, Sec.

339, 52 Stat. 55, related to penalties for marketing wheat in

excess of quotas, prior to repeal by act July 14, 1953, ch. 194,

Sec. 2, 5, 67 Stat. 151, 152, effective with respect to the 1954

and subsequent crops of wheat. See section 1340(2) of this title.

AMENDMENTS

1968 - Subsec. (b). Pub. L. 90-559 provided for a one year

extension through 1970.

1965 - Subsec. (a)(1). Pub. L. 89-321, Sec. 507, inserted ''(less

an acreage equal to the increased acreage allotted for 1966

pursuant to section 1335 of this title)'' after ''national acreage

allotment'' wherever appearing.

Subsec. (b). Pub. L. 89-321, Sec. 501(9), substituted ''crops of

wheat planted for harvest in the calendar years 1964 through 1969''

for ''1964 and 1965 crops of wheat'', ''50 per centum of the farm

acreage allotment'' for ''20 per centum of the farm acreage

allotment'', and ''twenty-five acres'' for ''fifteen acres''.

Subsec. (e). Pub. L. 89-321, Sec. 501(10), authorized Secretary

to permit all or part of diverted acreage to be devoted to

mustardseed, crambe, and plantago ovato in addition to previously

authorized guar, sesame, safflower, sunflower, castor beans, and

flax, if he determines that such production of the commodity is

needed, is not likely to increase cost of price-support program,

and will not adversely affect farm income, and removed from proviso

the prohibition against making available price supports for

production of such crops on diverted acreage.

1964 - Subsec. (a)(1). Pub. L. 88-297, Sec. 202(7), temporarily

suspended land-use penalties and made the diversion of land from

the production of wheat only a condition of eligibility for

receiving wheat marketing certificates. See Effective and

Termination Dates of 1964 Amendment note below.

Subsec. (b). Pub. L. 88-297, Sec. 202(8), inserted in first

sentence ''for wheat not accompanied by marketing certificates''

after ''basic county support rate'' and inserted after first

sentence ''Any producer who complies with his 1964 farm acreage

allotment for wheat and with the other requirements of the program

shall be eligible to receive payments under the program for the

1964 crop of wheat.''

Subsec. (h). Pub. L. 88-297, Sec. 202(9), substituted ''June 30,

1965'' for ''June 30, 1963''.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by section 501 of Pub. L. 89-321 effective beginning

with crop planted for harvest in calendar year 1966, see section

501 of Pub. L. 89-321, set out as a note under section 1332 of this

title.

Section 507 of Pub. L. 89-321 provided that the amendment made by

that section is effective beginning with crop planted for harvest

in calendar year 1967.

EFFECTIVE AND TERMINATION DATES OF 1964 AMENDMENT

Section 202(7) of Pub. L. 88-297, as amended by Pub. L. 89-321,

title V, Sec. 505(1), Nov. 3, 1965, 79 Stat. 1203; Pub. L. 90-559,

Sec. 1(1), Oct. 11, 1968, 82 Stat. 996, provided that the amendment

made by that section is effective only with respect to crops

planted for harvest in calendar years 1964 through 1970.

EFFECTIVE DATE

Section effective only with respect to programs applicable to

crops planted for harvest in calendar year 1964 or any subsequent

year and marketing years beginning in calendar year 1964, or any

subsequent year, see section 323 of Pub. L. 87-703, set out as an

Effective Date of 1962 Amendment note under section 1301 of this

title.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 through 1990 crops of wheat, see

section 310(b) of Pub. L. 99-198, set out as a note under section

1331 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Pub. L. 91-524, title IV, Sec. 404(1), Nov. 30, 1970, 84 Stat.

1366, as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87

Stat. 229, provided that this section is not applicable to 1971

through 1977 crops of wheat.

WHEAT DIVERSION PROGRAMS; CREDITS IN ESTABLISHMENT OF STATE, COUNTY

AND FARM ACREAGE ALLOTMENTS FOR WHEAT

Credits to State, county and farm of acreage diverted from

production of wheat as though actually devoted to such production,

see section 1339b of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1334, 1335, 1379c, 1445a

of this title.

-CITE-

7 USC Sec. 1339a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1339a. Repealed. Pub. L. 107-171, title I, Sec. 1613(j)(1),

May 13, 2002, 116 Stat. 221

-MISC1-

Section, Pub. L. 87-703, title III, Sec. 326, Sept. 27, 1962, 76

Stat. 631; Pub. L. 88-26, Sec. 4, May 20, 1963, 77 Stat. 47; Pub.

L. 89-321, title III, Sec. 303, Nov. 3, 1965, 79 Stat. 1192; Pub.

L. 101-624, title XI, Sec. 1132(c), Nov. 28, 1990, 104 Stat. 3515;

Pub. L. 102-237, title I, Sec. 118(d), Dec. 13, 1991, 105 Stat.

1842, related to good faith reliance.

-CITE-

7 USC Sec. 1339b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1339b. Wheat diversion programs; credits in establishment of

State, county and farm acreage allotments for wheat

-STATUTE-

In the establishment of State, county, and farm acreage

allotments for wheat under this chapter, the acreage which is

determined under regulations of the Secretary to have been diverted

from the production of wheat under the special programs formulated

pursuant to section 307 of this Act, section 1339 of this title,

and section 124 of the Agricultural Act of 1961, shall be credited

to the State, county, and farm as though such acreage had actually

been devoted to the production of wheat.

-SOURCE-

(Pub. L. 87-703, title III, Sec. 327, Sept. 27, 1962, 76 Stat.

631.)

-REFTEXT-

REFERENCES IN TEXT

Section 307 of this Act (the Food and Agriculture Act of 1962)

and section 124 of the Agricultural Act of 1961, referred to in

text, are set out as notes under section 1334 of this title.

-COD-

CODIFICATION

Section was enacted as part of the Food and Agriculture Act of

1962, and not as part of the Agricultural Adjustment Act of 1938

which comprises this chapter.

-CITE-

7 USC Sec. 1339c 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1339c. Feed grains diversion programs for 1964 and subsequent

years; feed grain acreage considered wheat acreage and wheat

acreage considered feed grain acreage

-STATUTE-

Effective with the 1964 crop, during any year in which an acreage

diversion program is in effect for feed grains, the Secretary

shall, notwithstanding any other provision of law, permit producers

of feed grains to have acreage devoted to the production of feed

grains considered as devoted to the production of wheat and

producers of wheat to have acreage devoted to the production of

wheat considered as devoted to the production of feed grains to

such extent and subject to such terms and conditions as the

Secretary determines will not impair the effective operation of the

program for feed grains or wheat. In establishing terms and

conditions for permitting wheat to be planted in lieu of oats and

rye, the Secretary may take into account the number of feed units

per acre of wheat in relation to the number of feed units per acre

of oats and rye.

-SOURCE-

(Pub. L. 87-703, title III, Sec. 328, Sept. 27, 1962, 76 Stat. 631;

Pub. L. 89-321, title V, Sec. 514, Nov. 3, 1965, 79 Stat. 1206.)

-MISC1-

AMENDMENTS

1965 - Pub. L. 89-321 authorized the Secretary, in establishing

terms and conditions for permitting wheat to be planted in lieu of

oats and rye, to take into account the number of feed units per

acre of wheat in relation to the number of feed units per acre of

oats and rye.

-COD-

CODIFICATION

Section was enacted as part of the Food and Agriculture Act of

1962, and not as part of the Agricultural Adjustment Act of 1938

which comprises this chapter.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1332 of this title.

-CITE-

7 USC Sec. 1339d 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1339d. Hay production on set-aside or diverted acreage;

storage; emergency use; loans

-STATUTE-

(a) Notwithstanding any other provision of law, the Secretary

shall permit any producer who is participating in the wheat program

under title IV of this Act, in the feed grain program under title V

of this Act, or in the cotton program under title VI of this Act,

in any year in which an acreage diversion or set-aside program is

in effect, under any such program in which such producer is

participating, subject to the conditions prescribed in subsection

(b) of this section, to plant and harvest hay from 25 per centum of

the acreage on the farm diverted from production under such

programs or twenty-five acres, whichever is greater.

(b) Any producer who elects to plant and harvest hay on diverted

or set aside acreage pursuant to this section shall first agree not

to use any such hay harvested from such acreage unless authorized

to do so by the Secretary.

(c) When any diverted or set aside acreage has been planted and

harvested under authority of this section, the hay harvested

therefrom shall be baled and stored in sealed storage on the farm

in accordance with such regulations as the Secretary may prescribe

and shall be available only for use during periods of emergency

declared by the Secretary. In order to avoid deterioration of such

hay stored on the farm for emergency purposes pursuant to this

section, the Secretary may permit such hay to be removed and used

or sold from time to time so long as an amount of hay equal to the

amount removed is previously placed in storage and sealed.

(d) Any farmer who has hay stored on his farm for emergency

purposes pursuant to this section may remove such hay from storage

and use it whenever the Secretary has (1) designated as an

emergency area the area in which such farm is located, and (2)

specifically authorized the use of emergency hay by farmers in the

area.

(e) The Secretary of Agriculture is authorized to make or

guarantee loans to farmers, both tenants and landowners, to assist

such farmers in the construction of storage facilities on the farm

for the storage of emergency hay pursuant to the provisions of this

section if such farmers are unable to obtain loans from commercial

sources at reasonable rates and on reasonable terms and

conditions. Loans made by the Secretary under this subsection

shall be made at the current rate of interest for periods not

exceeding ten years, and on such other terms and conditions as the

Secretary may prescribe.

-SOURCE-

(Pub. L. 91-524, title VIII, Sec. 805, Nov. 30, 1970, 84 Stat.

1382.)

-REFTEXT-

REFERENCES IN TEXT

The wheat program under title IV of this Act, the feed grain

program under title V of this Act, and the cotton program under

title VI of this Act, referred to in subsec. (a), mean the programs

for such crops as set out in the Agricultural Act of 1970, Pub. L.

91-524, Nov. 30, 1970, 84 Stat. 1358, as amended. Title IV of that

Act enacted section 1334a-1 of this title, amended sections 1301,

1305, 1306, 1378, 1379, 1379b, 1379c, 1379d, 1379e, 1379g, 1385,

1427, 1428, and 1445a of this title, and enacted provisions set out

as notes under sections 1301, 1305, 1306, 1330 to 1334, 1335, 1336,

1338, 1339, and 1379c of this title. Title V of that Act amended

section 1444b of this title and provisions set out as a note under

section 1444b of this title. Title VI of that Act enacted sections

1342a, 1350a, and 2119 of this title, amended sections 1305, 1344b,

1350, 1374, 1378, 1379, 1385, 1427, 1428, 1444, and 1444a of this

title, and enacted provisions set out as notes under sections 1305,

1342, 1342a, 1343, 1344, 1344b, 1345, 1346, 1377, 1378, 1379, 1385,

1427, 1428, 1444, and 1446d of this title. For complete

classification of this Act to the Code, see Short Title of 1970

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

-COD-

CODIFICATION

Section was enacted as part of the Agricultural Act of 1970, and

not as part of the Agricultural Adjustment Act of 1938 which

comprises this chapter.

-CITE-

7 USC Sec. 1340 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iii - marketing quotas - wheat

-HEAD-

Sec. 1340. Supplemental provisions relating to wheat marketing

quotas; marketing penalty for rice; crop loans on cotton,

wheat, rice, tobacco, and peanuts

-STATUTE-

Notwithstanding the other provisions of this chapter -

(1) The farm marketing quota for any crop of wheat shall be the

actual production of the acreage planted to such crop of wheat on

the farm less the farm marketing excess. The farm marketing

excess shall be an amount equal to twice the projected farm yield

multiplied by the number of acres of such crop of wheat on the

farm in excess of the farm acreage allotment for such crop unless

the producer, in accordance with regulations issued by the

Secretary and within the time prescribed therein, establishes to

the satisfaction of the Secretary the actual production of such

crop of wheat on the farm. If such actual production is so

established, the farm marketing excess shall be an amount equal

to the actual production of the number of acres of wheat on the

farm in excess of the farm acreage allotment for such crop. In

determining the farm marketing quota and farm marketing excess,

any acreage of wheat remaining after the date prescribed by the

Secretary for the disposal of excess acres of wheat shall be

included as acreage of wheat on the farm, and the production

thereof shall be appraised in such manner as the Secretary

determines will provide a reasonably accurate estimate of such

production. Any acreage of wheat disposed of in accordance with

regulations issued by the Secretary prior to such date as may be

prescribed by the Secretary shall be excluded in determining the

farm marketing quota and farm marketing excess. Self-seeded

(volunteer) wheat shall be included in determining the acreage of

wheat. Marketing quotas for any marketing year shall be in

effect with respect to wheat harvested in the calendar year in

which such marketing year begins notwithstanding that the wheat

is marketed prior to the beginning of such marketing year.

(2) Whenever farm marketing quotas are in effect with respect

to any crop of wheat, the producers on a farm shall be subject to

a penalty on the farm marketing excess of wheat at a rate per

bushel equal to 65 per centum of the parity price per bushel of

wheat as of May 1 of the calendar year in which the crop is

harvested. Each producer having an interest in the crop of wheat

on any farm for which a farm marketing excess of wheat is

determined shall be jointly and severally liable for the entire

amount of the penalty on the farm marketing excess.

(3) The farm marketing excess for wheat shall be regarded as

available for marketing, and the penalty and the storage amount

or amounts to be delivered to the Secretary of the commodity

shall be computed upon twice the normal production of the excess

acreage. Where, upon the application of the producer for an

adjustment of penalty or of storage, it is shown to the

satisfaction of the Secretary that the actual production of the

excess acreage is less than twice the normal production thereof,

the difference between the amount of the penalty or storage as

computed upon the basis of twice the normal production and as

computed upon the basis of actual production shall be returned to

or allowed the producer. The Secretary shall issue regulations

under which the farm marketing excess of the commodity for the

farm may be stored or delivered to him. Upon failure to store or

deliver to the Secretary the farm marketing excess within such

time as may be determined under regulations prescribed by the

Secretary, the penalty computed as aforesaid shall be paid by the

producer. Any wheat delivered to the Secretary hereunder shall

become the property of the United States and shall be disposed of

by the Secretary for relief purposes in the United States or in

foreign countries or in such other manner as he shall determine

will divert it from the normal channels of trade and commerce.

(4) Until the producers on any farm store, deliver to the

Secretary, or pay the penalty on, the farm marketing excess of

any crop of wheat, the entire crop of wheat produced on the farm

and any subsequent crop of wheat subject to marketing quotas in

which the producer has an interest shall be subject to a lien in

favor of the United States for the amount of the penalty.

(5) The penalty upon wheat stored shall be paid by the producer

at the time, and to the extent, of any depletion in the amount of

the commodity so stored, except depletion resulting from some

cause beyond the control of the producer.

(6) Whenever the planted acreage of the then current crop of

wheat on any farm is less than the farm acreage allotment for

such commodity, the total amount of the commodity from any

previous crops required to be stored in order to postpone or

avoid payment of penalty shall be reduced by that amount which is

equal to the normal production of the number of acres by which

the farm acreage allotment exceeds the planted acreage. The

provisions of section 1326(b) and (c) of this title shall be

applicable also to wheat.

(7) Until the farm marketing excess of wheat is stored or

delivered to the Secretary or the penalty thereon is paid, each

bushel of the commodity produced on the farm which is sold by the

producer to any person within the United States shall be subject

to the penalty as specified in paragraph (2) of this section.

Such penalty shall be paid by the buyer, who may deduct an amount

equivalent to the penalty from the price paid to the producer.

If the buyer fails to collect such penalty, such buyer and all

persons entitled to share in the wheat marketed from the farm or

the proceeds thereof shall be jointly and severally liable for

such penalty.

(8) The marketing penalty for rice produced in the calendar

year in which any marketing year begins (if beginning with or

after the 1941-1942 marketing year) shall be at a rate equal to

50 per centum of the basic rate of the loan for cooperators for

such marketing year under section 1302 of this title and this

section.

(9) Omitted.

(10) The provisions of this section are amendatory of and

supplementary to this chapter, and all provisions of law

applicable in respect of marketing quotas and loans under such

chapter as so amended and supplemented shall be applicable, but

nothing in this section shall be construed to amend or repeal

sections 1301(b)(6), 1323(b), or 1335(d) of this title.

(11) The persons liable for the payment or collection of the

penalty or any amount of wheat shall be liable also for interest

thereon at the rate of 6 per centum per annum from the date the

penalty becomes due until the date of payment of such penalty.

(12) If marketing quotas for wheat are not in effect for any

marketing year, all previous marketing quotas applicable to wheat

shall be terminated, effective as of the first day of such

marketing year. Such termination shall not abate any penalty

previously incurred by a producer or relieve any buyer of the

duty to remit penalties previously collected by him.

-SOURCE-

(May 26, 1941, ch. 133, 55 Stat. 203; Dec. 26, 1941, ch. 626, Sec.

2, 55 Stat. 860; Dec. 26, 1941, ch. 636, 55 Stat. 872; Aug. 29,

1949, ch. 518, Sec. 3(b), 63 Stat. 676; July 14, 1953, ch. 194,

Sec. 3, 67 Stat. 151; Aug. 28, 1954, ch. 1041, title III, Sec. 313,

68 Stat. 905; Pub. L. 87-128, title I, Sec. 122(d), Aug. 8, 1961,

75 Stat. 297; Pub. L. 87-703, title III, Sec. 309, 319, Sept. 27,

1962, 76 Stat. 618, 624; Pub. L. 87-801, Oct. 11, 1962, 76 Stat.

909; Pub. L. 89-321, title V, Sec. 511(b), Nov. 3, 1965, 79 Stat.

1205.)

-REFTEXT-

REFERENCES IN TEXT

Section 1302 of this title, referred to in par. (8), was repealed

by act Oct. 31, 1949, ch. 792, title IV, Sec. 414, 63 Stat. 1057.

Section 1323(b) of this title, referred to in par. (10), was

repealed by act Aug. 28, 1954, ch. 1041, title III, Sec. 304, 68

Stat. 902, and had provided that no farm marketing quota with

respect to any crop of corn shall be applicable to any farm on

which the normal production of the acreage planted to corn is less

than 300 bushels.

Section 1335(d) of this title, referred to in par. (10), was

repealed by Pub. L. 87-129, title I, Sec. 122(e), Aug. 8, 1961, 75

Stat. 297, and had provided that no farm marketing quota with

respect to wheat shall be applicable in any marketing year to any

farm on which the normal production of the acreage planted to wheat

of the current crop is less than 200 bushels.

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act of 1938 which comprises this chapter.

Par. (9), which directed the Commodity Credit Corporation to make

loans upon the 1941 to 1946 cotton, wheat, rice, tobacco, and

peanut crops for which producers did not disapprove marketing

quotas at the rate of 85% of parity to cooperators and, to

noncooperators, at the rate of 60% of the rate specified for

cooperators and limited to that amount of the commodity as would be

subject to penalty if marketed by the noncooperators, was omitted

from the Code.

-MISC3-

AMENDMENTS

1965 - Par. (1). Pub. L. 89-321 substituted ''projected farm

yield'' for ''normal yield of wheat per acre established for the

farm''.

1962 - Par. (1). Pub. L. 87-703, Sec. 319(1), substituted

requirement that computation of the farm marketing excess initially

be double the farm normal yield of wheat times the excess acres,

such excess acres being reduced to the actual yield times the

excess acres, upon proof by the producer of the actual yield, for

provision that the farm marketing excess could not be more than the

actual production of wheat on the farm less the normal production

of the farm acreage allotment and provided that the acreage of

wheat not disposed of by the prescribed date would be considered

wheat acreage, with the wheat production thereon appraised for the

purposes of determining the farm marketing quota and farm marketing

excess, that wheat acreage disposed of prior to the disposal date

would not be considered acreage and that the acreage of volunteer

wheat not disposed of would be considered wheat acreage.

Par. (2). Pub. L. 87-703, Sec. 319(2), increased from 45 to 65

per centum the rate of penalty on farm marketing excess and

provided for joint and several liability for such penalty.

Par. (3). Pub. L. 87-703, Sec. 319(3), required computation of

the farm marketing excess initially upon twice the normal yield and

eliminated reference to corn. Act Aug. 28, 1954, had made the

section in applicable to corn.

Par. (4). Pub. L. 87-703, Sec. 319(4), inserted ''and any

subsequent crop of wheat subject to marketing quotas in which the

producer has an interest'' after ''produced on the farm'' and

struck out reference to corn. Act Aug. 28, 1954, had made the

section inapplicable to corn.

Pars. (5), (6). Pub. L. 87-703, Sec. 319(5), (6), struck out

reference to corn. Act Aug. 28, 1954, had made section

inapplicable to corn.

Par. (7). Pub. L. 87-703, Sec. 319(7), (8), redesignated par. (8)

as (7), and inserted provision for joint and several liability for

penalty and struck out reference to corn, respectively. Act Aug.

28, 1954, had made section inapplicable to corn. Provisions of

former par. (7), which provided a 15-acre exemption but provided

for a farm marketing quota on 1962 crop of wheat to any farm on

which the acreage of wheat exceeded the smaller of (1) 13.5 acres,

or (2) of the highest number of acres actually planted to, wheat on

the farm for harvest in any of the calendar years 1959, 1960, or

1961 and provisions of former par. (7), added by Pub. L. 87-703,

Sec. 309, which provided for a farm marketing quota on 1963 crop of

wheat to any farm on which the acreage of wheat exceeded the

smaller of (1) 15 acres, or (2) the highest number of acres

actually planted to wheat on the farm for harvest in any of the

calendar years 1959, 1960, or 1961, or 1963 (provided by Pub. L.

87-801), were repealed by such section 319(7) and are covered by

section 1335 of this title.

Pars. (8) to (10). Pub. L. 87-703, Sec. 319(7), redesignated

pars. (9) to (11) as (8) to (10). Former par. (8) redesignated (7).

Par. (11). Pub. L. 87-703, Sec. 319(9), added par. (11). Former

par. (11) redesignated (10).

Par. (12). Pub. L. 87-703, Sec. 319(9), added par. (12). Former

par. (12), which limited farm marketing excess for any crop of

wheat and provided for return to producer of difference between

amount of penalty or storage as computed upon farm marketing excess

before adjustment and as computed upon adjusted farm marketing

excess, where a downward adjustment in amount of farm marketing

excess was made, was repealed by such section 319(9).

1961 - Par. (7). Pub. L. 87-128 authorized Secretary to prescribe

regulations relating to the exemption of farms from marketing

quotas on any crop of wheat, specified the exemption for the 1962

crop and eliminated marketing penalty provisions relating to

nonallotment farms under the Soil Conservation and Domestic

Allotment Act.

1954 - Act Aug. 28, 1954, amended section generally to make it

inapplicable to corn.

1953 - Act July 14, 1953, omitted penalty for marketing corn in

excess of quotas and changed penalty for marketing wheat in excess

of quotas from 50 per centum of basic loan rate on commodity for

cooperators to 45 per centum of parity price.

1949 - Par. (9). Act Aug. 29, 1949, struck out ''cotton and''

after ''penalty for''.

1941 - Par. (10). Act Dec. 26, 1941, ch. 626, substituted ''1941,

1942, 1943, 1944, 1945 and 1946 crops of the commodities cotton,

corn, wheat, rice, tobacco and peanuts'' for ''1941 crop of the

commodities cotton, corn, wheat, rice, or tobacco'' and ''for the

marketing year beginning in the calendar year in which such crop is

harvested'' for ''marketing year beginning in 1941.''

Par. (12). Act Dec. 26, 1941, ch. 636, added par. (12).

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by section 319 of Pub. L. 87-703 effective only with

respect to programs applicable to crops planted for harvest in

calendar year 1964 or any subsequent year and marketing years

beginning in calendar year 1964, or any subsequent year, see

section 323 of Pub. L. 87-703, set out as a note under section 1301

of this title.

EFFECTIVE DATE OF 1953 AMENDMENT

Amendment by act July 14, 1953, effective with respect to 1954

and subsequent crops of wheat, see section 5 of act July 14, 1953,

set out as a note under section 1334 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Administration of program of Commodity Credit Corporation

transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3,

Sec. 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100, set out

in the Appendix to Title 5, Government Organization and Employees.

EXCEPTIONS FROM TRANSFER OF FUNCTIONS

Functions of Corporations of Department of Agriculture, boards of

directors and officers of such corporations; Advisory Board of

Commodity Credit Corporation; and Farm Credit Administration or any

agency, officer or entity of, under, or subject to supervision of

said Administration excepted from functions of officers, agencies,

and employees transferred to Secretary of Agriculture by 1953

Reorg. Plan No. 2, Sec. 1, eff. June 4, 1953, 18 F.R. 3219, 67

Stat. 633, set out as a note under section 2201 of this title.

-MISC5-

INAPPLICABILITY OF SECTION

Section inapplicable to crops of wheat planted for harvest in

calendar years 2002 through 2007, see section 7992(c) of this

title.

Section inapplicable to crops of wheat planted for harvest in

calendar years 1996 through 2002, see section 7301(c) of this

title.

Pub. L. 101-624, title III, Sec. 304, Nov. 28, 1990, 104 Stat.

3400, provided that: ''The joint resolution entitled 'A joint

resolution relating to corn and wheat marketing quotas under the

Agricultural Adjustment Act of 1938, as amended', approved May 26,

1941 (7 U.S.C. 1330 and 1340) shall not be applicable to the crops

of wheat planted for harvest in the calendar years 1991 through

1995.''

Pub. L. 99-198, title III, Sec. 311, Dec. 23, 1985, 99 Stat.

1395, provided that: ''The joint resolution entitled 'A joint

resolution relating to corn and wheat marketing quotas under the

Agricultural Adjustment Act of 1938, as amended', approved May 26,

1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops

of wheat planted for harvest in the calendar years 1986 through

1990.''

Pub. L. 97-98, title III, Sec. 304, Dec. 22, 1981, 95 Stat. 1227,

provided that: ''Public Law 74, Seventy-seventh Congress (55 Stat.

203, as amended) (this section) shall not be applicable to the

crops of wheat planted for harvest in the calendar years 1982

through 1985.''

Pub. L. 95-113, title IV, Sec. 406, Sept. 29, 1977, 91 Stat. 927,

provided that: ''Public Law 74, Seventy-seventh Congress (55 Stat.

203, as amended) (this section) shall not be applicable to the

crops of wheat planted for harvest in the calendar years 1978

through 1981.''

Pub. L. 91-524, title IV, Sec. 406, Nov. 30, 1970, 84 Stat. 1367,

as amended by Pub. L. 93-86, Sec. 1(13), Aug. 10, 1973, 87 Stat.

229, provided that: ''Public Law 74, Seventy-seventh Congress (68

Stat. 905) (this section), shall not be applicable to the crops of

wheat planted for harvest in the calendar years 1971 through

1977.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1334, 1335, 7301, 7992 of

this title.

-CITE-

7 USC subpart iv - marketing quotas - cotton 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

.

-HEAD-

subpart iv - marketing quotas - cotton

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 7301, 7992 of this title.

-CITE-

7 USC Sec. 1341 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1341. Legislative findings

-STATUTE-

American cotton is a basic source of clothing and industrial

products used by every person in the United States and by

substantial numbers of people in foreign countries. American

cotton is sold on a world-wide market and moves from the places of

production almost entirely in interstate and foreign commerce to

processing establishments located throughout the world at places

outside the State where the cotton is produced.

Fluctuations in supplies of cotton and the marketing of excessive

supplies of cotton in interstate and foreign commerce disrupt the

orderly marketing of cotton in such commerce with consequent injury

to and destruction of such commerce. Excessive supplies of cotton

directly and materially affect the volume of cotton moving in

interstate and foreign commerce and cause disparity in prices of

cotton and industrial products moving in interstate and foreign

commerce with consequent diminution of the volume of such commerce

in industrial products.

The conditions affecting the production and marketing of cotton

are such that, without Federal assistance, farmers, individually or

in cooperation, cannot effectively prevent the recurrence of

excessive supplies of cotton and fluctuations in supplies, cannot

prevent indiscriminate dumping of excessive supplies on the

Nation-wide and foreign markets, cannot maintain normal carry-overs

of cotton, and cannot provide for the orderly marketing of cotton

in interstate and foreign commerce.

It is in the interest of the general welfare that interstate and

foreign commerce in cotton be protected from the burdens caused by

the marketing of excessive supplies of cotton in such commerce,

that a supply of cotton be maintained which is adequate to meet

domestic consumption and export requirements in years of drought,

flood, and other adverse conditions as well as in years of plenty,

and that the soil resources of the Nation be not wasted in the

production of excessive supplies of cotton.

The provisions of this subpart affording a cooperative plan to

cotton producers are necessary and appropriate to prevent the

burdens on interstate and foreign commerce caused by the marketing

in such commerce of excessive supplies, and to promote, foster, and

maintain an orderly flow of an adequate supply of cotton in such

commerce.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 341, 52 Stat. 55.)

-MISC1-

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

1947 MARKETING QUOTAS AND ACREAGE ALLOTMENTS

Joint Res. July 24, 1946, ch. 616, 60 Stat. 662, suspended

marketing quotas and acreage allotments for 1947 in view of the

critical shortage of fats and oils and protein feeds.

-CITE-

7 USC Sec. 1342 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1342. National marketing quota; proclamation; amount; date of

proclamation

-STATUTE-

Whenever during any calendar year the Secretary determines that

the total supply of cotton for the marketing year beginning in such

calendar year will exceed the normal supply for such marketing

year, the Secretary shall proclaim such fact and a national

marketing quota shall be in effect for the crop of cotton produced

in the next calendar year. The Secretary shall also determine and

specify in such proclamation the amount of the national marketing

quota in terms of the number of bales of cotton (standard bales of

five hundred pounds gross weight) adequate, together with (1) the

estimated carry-over at the beginning of the marketing year which

begins in the next calendar year and (2) the estimated imports

during such marketing year, to make available a normal supply of

cotton: Provided, That beginning with the 1961 crop, the national

marketing quota shall be not less than a number of bales equal to

the estimated domestic consumption and estimated exports (less

estimated imports) for the marketing year for which the quota is

proclaimed, except that the Secretary shall make such adjustment in

the amount of such quota as he determines necessary after taking

into consideration the estimated stocks of cotton in the United

States (including the qualities of such stocks) and stocks in

foreign countries which would be available for the marketing year

for which the quota is being proclaimed if no adjustment of such

quota is made hereunder, to assure the maintenance of adequate but

not excessive stocks in the United States to provide a continuous

and stable supply of the different qualities of cotton needed in

the United States and in foreign cotton consuming countries, and

for purposes of national security; but the Secretary, in making

such adjustments, may not reduce the national marketing quota for

any year below (i) one million bales less than the estimated

domestic consumption and estimated exports for the marketing year

for which such quota is being proclaimed, or (ii) ten million

bales, whichever is larger. Such proclamation shall be made not

later than October 15 of the calendar year in which such

determination is made. Notwithstanding the foregoing provisions of

this section, the national marketing quota for cotton for 1957 and

1958 shall be not less than the number of bales required to provide

a national acreage allotment for 1957 and 1958 equal to the

national acreage allotment for 1956: Provided, That if the acreage

allotment for any State for 1957 or 1958 is less than its allotment

for the preceding year by more than 1 per centum, such State

allotment shall be increased so that the reduction shall not exceed

1 per centum per annum, and the acreage required for such increase

shall be in addition to the national acreage allotment for such

year. Additional acreage apportioned to a State for 1957 or 1958

under the foregoing proviso shall not be taken into account in

establishing future State allotments. Notwithstanding any other

provision of this chapter, the national marketing quota for upland

cotton for 1959 and subsequent years shall be not less than the

number of bales required to provide a national acreage allotment

for each such year of sixteen million acres.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 342, 52 Stat. 56; Aug. 29,

1949, ch. 518, Sec. 1, 63 Stat. 670; May 28, 1956, ch. 327, title

III, Sec. 302, 70 Stat. 203; Pub. L. 85-835, title I, Sec. 103(1),

(2), Aug. 28, 1958, 72 Stat. 989, 990.)

-MISC1-

AMENDMENTS

1958 - Pub. L. 85-835, Sec. 103(1), substituted proviso

prescribing, beginning with the 1961 crop, a minimum national

marketing quota for cotton equal to estimated domestic consumption

and exports less imports subject to adjustment assuring maintenance

of adequate but not excessive stocks, the adjustment not to reduce

the national marketing quota for any year below the larger of (1)

estimated domestic consumption and exports less one million bales

or (2) ten million bales, for provisions prescribing for a national

marketing quota not less than the smaller of ten million bales or

one million bales less than estimated domestic consumption plus

exports and providing for 1950 a national marketing quota based on

a twenty-one million national acreage allotment.

Pub. L. 85-835, Sec. 103(2), provided for a national marketing

quota for upland cotton for 1959 and subsequent years based on a

sixteen million national acreage allotment.

1956 - Act May 28, 1956, provided that national marketing quota

for cotton for 1957 and 1958 shall not be less than the number of

bales required to provide a national acreage allotment for 1957 and

1958 equal to national acreage allotment for 1956.

1949 - Act Aug. 29, 1949, amended section generally to set up a

national marketing quota and to provide for amount and proclamation

of such quota.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Pub. L. 101-624, title V, Sec. 502, Nov. 28, 1990, 104 Stat.

3440, provided that: ''Sections 342, 343, 344, 345, 346, and 377 of

the Agricultural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and

1377) shall not be applicable to any of the 1991 through 1995 crops

of upland cotton.''

Pub. L. 99-198, title V, Sec. 502, Dec. 23, 1985, 99 Stat. 1418,

provided that: ''Sections 342, 343, 344, 345, 346, and 377 of the

Agricultural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377)

(7 U.S.C. 1342, 1343, 1344, 1345, 1346, and 1377) shall not be

applicable to any of the 1986 through 1990 crops of upland

cotton.''

Pub. L. 98-88, Sec. 3, Aug. 26, 1983, 97 Stat. 494, provided

that: ''Sections 342, 343, 344, 344a, 345, 346, and 377 of the

Agricultural Adjustment Act of 1938, as amended (sections 1342,

1343, 1344, 1344b, 1345, 1346, and 1377 of this title), shall not

be applicable to the 1984 and subsequent crops of extra long staple

cotton.''

Pub. L. 97-98, title V, Sec. 501, Dec. 22, 1981, 95 Stat. 1234,

provided that: ''Sections 342, 343, 344, 345, 346, and 377 of the

Agricultural Adjustment Act of 1938 (sections 1342, 1343, 1344,

1345, 1346, and 1377 of this title) shall not be applicable to

upland cotton of the 1982 through 1985 crops.''

Pub. L. 95-113, title VI, Sec. 601, Sept. 29, 1977, 91 Stat. 933,

provided that: ''Sections 342, 343, 344, 345, 346, and 377 of the

Agricultural Adjustment Act of 1938, as amended (sections 1342,

1343, 1344, 1345, 1346, and 1377 of this title), shall not be

applicable to upland cotton of the 1978 through 1981 crops.''

Pub. L. 91-524, title VI, Sec. 601(1), Nov. 30, 1970, 84 Stat.

1371, as amended by Pub. L. 93-86, Sec. 1(19)(A), Aug. 10, 1973, 87

Stat. 233, provided that this section shall not be applicable to

upland cotton of 1971 through 1977 crops.

PRELIMINARY ALLOTMENTS FOR 1996 CROP OF UPLAND COTTON

Pub. L. 101-624, title V, Sec. 505, Nov. 28, 1990, 104 Stat.

3440, provided that: ''Notwithstanding any other provision of law,

the permanent State, county, and farm base acreage allotments for

the 1977 crop of upland cotton, adjusted for any underplantings in

1977 and reconstituted as provided in section 379 of the

Agricultural Adjustment Act of 1938 (7 U.S.C. 1379), shall be the

preliminary allotments for the 1996 crop.''

PRELIMINARY ALLOTMENTS FOR 1991 CROP OF UPLAND COTTON

Pub. L. 99-198, title V, Sec. 506, Dec. 23, 1985, 99 Stat. 1418,

provided that: ''Notwithstanding any other provision of law, the

permanent State, county, and farm base acreage allotments for the

1977 crop of upland cotton, adjusted for any underplantings in 1977

and reconstituted as provided in section 379 of the Agricultural

Adjustment Act of 1938 (7 U.S.C. 1379), shall be the preliminary

allotments for the 1991 crop.''

PRELIMINARY ALLOTMENTS FOR 1986 CROP OF UPLAND COTTON

Pub. L. 97-98, title V, Sec. 506, Dec. 22, 1981, 95 Stat. 1241,

provided that: ''Notwithstanding any other provision of law, the

permanent State, county, and farm base acreage allotments for the

1977 crop of upland cotton, adjusted for any underplantings in 1977

and reconstituted as provided in section 379 of the Agricultural

Adjustment Act of 1938, as amended (section 1379 of this title),

shall again become effective as preliminary allotments for the 1986

crop.''

PRELIMINARY ALLOTMENTS FOR 1982 CROP OF UPLAND COTTON

Pub. L. 95-113, title VI, Sec. 606, Sept. 29, 1977, 91 Stat. 940,

provided that: ''Notwithstanding any other provision of law, the

permanent State, county, and farm base acreage allotments for the

1977 crop of upland cotton, adjusted for any underplantings in 1977

and reconstituted as provided in section 379 of the Agricultural

Adjustment Act of 1938, as amended (section 1379 of this title),

shall again become effective as preliminary allotments for the 1982

crop.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1343, 1344 of this title.

-CITE-

7 USC Sec. 1342a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1342a. National cotton production goal

-STATUTE-

The Secretary shall, not later than November 15, of the calendar

years 1970 through 1976 proclaim a national cotton production goal

for the 1971 and subsequent crops of upland cotton. The national

cotton production goal for any year shall be the number of bales of

upland cotton (standard bales of four hundred and eighty pounds net

weight) equal to the estimated domestic consumption and estimated

exports for the marketing year beginning in the calendar year for

which such national cotton production goal is proclaimed, plus an

allowance of not less than 5 per centum of such estimated

consumption and estimated exports for market expansion except that

the Secretary shall make such adjustments in the amount of such

production goal as he determines necessary after taking into

consideration the estimated stocks of upland cotton in the United

States (including the qualities of such stocks) and stocks in

foreign countries, which would be available for the marketing year,

to assure the maintenance of adequate but not excessive carryover

stocks in the United States (not less than 50 per centum of the

average offtake for the three preceding marketing years) to provide

a continuous and stable supply of the different qualities of upland

cotton needed in the United States and in foreign cotton consuming

countries and, in addition, to provide an adequate reserve for

purposes of national security.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 342a, as added Pub. L.

91-524, title VI, Sec. 601(2), Nov. 30, 1970, 84 Stat. 1371;

amended Pub. L. 93-86, Sec. 1(19)(B), Aug. 10, 1973, 87 Stat. 233.)

-MISC1-

AMENDMENTS

1973 - Pub. L. 93-86 substituted ''1970 through 1976'' for

''1970, 1971, and 1972''.

EFFECTIVE DATE

Section 601 of Pub. L. 91-524 provided that this section is

effective beginning with the 1971 crop of upland cotton.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

-CITE-

7 USC Sec. 1343 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1343. Referendum

-STATUTE-

Not later than December 15 following the issuance of the

marketing quota proclamation provided for in section 1342 of this

title, the Secretary shall conduct a referendum, by secret ballot,

of farmers engaged in the production of cotton in the calendar year

in which the referendum is held, to determine whether such farmers

are in favor of or opposed to the quota so proclaimed. If more

than one-third of the farmers voting in the referendum oppose the

national marketing quota, such quota shall become ineffective upon

proclamation of the results of the referendum. The Secretary shall

proclaim the results of any referendum held hereunder within thirty

days after the date of such referendum. Notwithstanding any other

provision hereof, the referendum with respect to the national

marketing quota for cotton for the marketing year beginning August

1, 1986, may be conducted not later than thirty-one days after

adjournment sine die of the first session of the Ninety-ninth

Congress.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 343, 52 Stat. 56; Apr. 7,

1938, ch. 107, Sec. 8, 52 Stat. 203; July 26, 1939, ch. 376, 53

Stat. 1125; July 3, 1948, ch. 827, title II, Sec. 207(c), 62 Stat.

1257; Aug. 29, 1949, ch. 518, Sec. 1, 63 Stat. 670; Oct. 31, 1949,

ch. 792, title IV, Sec. 415(e), 63 Stat. 1058; Pub. L. 97-77, Sec.

2(c), Nov. 13, 1981, 95 Stat. 1069; Pub. L. 99-157, Sec. 4, Nov.

15, 1985, 99 Stat. 818.)

-COD-

CODIFICATION

Provision that if marketing quotas were proclaimed for the 1950

crop, farmers eligible to vote in the referendum with respect to

such crop were to be those farmers who had produced cotton in the

1948 calendar year was omitted from the Code.

-MISC3-

AMENDMENTS

1985 - Pub. L. 99-157 amended last sentence generally,

substituting ''August 1, 1986, may be conducted not later than

thirty-one days after adjournment sine die of the first session of

the Ninety-ninth Congress'' for ''August 1, 1982, may be conducted

not later than the earlier of the following: (1) thirty days after

adjournment sine die of the first session of the Ninety-seventh

Congress, or (2) January 1, 1982''.

1981 - Pub. L. 97-77 inserted provision that the referendum with

respect to the national marketing quota for cotton for the

marketing year beginning Aug. 1, 1982, be conducted not later than

the earlier of the following: (1) thirty days after adjournment

sine die of the first session of the Ninety-seventh Congress, or

(2) Jan. 1, 1982.

1949 - Act Aug. 29, 1949, amended section generally by providing

for a secret referendum. Former provisions of this section are now

covered by section 1342 of this title.

Subsec. (a). Act Oct. 31, 1949, repealed amendatory provisions of

act July 3, 1948.

1948 - Subsec. (a). Act July 3, 1948, required Secretary to take

imports into consideration in determining acreage allotments for

purposes of marketing quotas.

1939 - Subsec. (b). Act July 26, 1939, inserted last sentence.

1938 - Subsec. (c). Act Apr. 7, 1938, substituted ''for any

year'' for ''for 1938 and 1939''.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 1984 and subsequent crops of extra long

staple cotton, see section 3 of Pub. L. 98-88, set out as a note

under section 1342 of this title.

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of upland cotton,

see section 502 of Pub. L. 101-624, set out as a note under section

1342 of this title.

Section inapplicable to 1986 through 1990 crops of upland cotton,

see section 502 of Pub. L. 99-198, set out as a note under section

1342 of this title.

Section inapplicable to 1982 through 1985 crops of upland cotton,

see section 501 of Pub. L. 97-98, set out as a note under section

1342 of this title.

Section inapplicable to 1978 through 1981 crops of upland cotton,

see section 601 of Pub. L. 95-113, set out as a note under section

1342 of this title.

Pub. L. 91-524, title VI, Sec. 601(1), Nov. 30, 1970, 84 Stat.

1371, as amended by Pub. L. 93-86, Sec. 1(19)(A), Aug. 10, 1973, 87

Stat. 233, provided that this section is inapplicable to 1971

through 1977 crops of upland cotton.

-CITE-

7 USC Sec. 1344 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1344. Apportionment of national acreage allotments

-STATUTE-

(a) Basis

Whenever a national marketing quota is proclaimed under section

1342 of this title, the Secretary shall determine and proclaim a

national acreage allotment for the crop of cotton to be produced in

the next calendar year. The national acreage allotment for cotton

shall be that acreage, based upon the national average yield per

acre of cotton for the four years immediately preceding the

calendar year in which the national marketing quota is proclaimed,

required to make available from such crop an amount of cotton equal

to the national marketing quota.

(b) Apportionment among States for year 1953 and subsequent years;

adjustment; national acreage reserve

The national acreage allotment for cotton for 1953 and subsequent

years shall be apportioned to the States on the basis of the

acreage planted to cotton (including the acreage regarded as having

been planted to cotton under the provisions of Public Law 12,

Seventy-ninth Congress) during the five calendar years immediately

preceding the calendar year in which the national marketing quota

is proclaimed, with adjustments for abnormal weather conditions

during such period: Provided, That there is established a national

acreage reserve consisting of three hundred and ten thousand acres

which shall be in addition to the national acreage allotment; and

such reserve shall be apportioned to the States on the basis of

their needs for additional acreage for establishing minimum farm

allotments under subsection (f)(1) of this section, as determined

by the Secretary without regard to State and county acreage

reserves (except that the amount apportioned to Nevada shall be one

thousand acres). For the 1960 and succeeding crops of cotton, the

needs of States (other than Nevada) for such additional acreage for

such purpose may be estimated by the Secretary, after taking into

consideration such needs as determined or estimated for the

preceding crop of cotton and the size of the national acreage

allotment for such crop. The additional acreage so apportioned to

the State shall be apportioned to the counties on the basis of the

needs of the counties for such additional acreage for such purpose,

and added to the county acreage allotment for apportionment to

farms pursuant to subsection (f) of this section (except that no

part of such additional acreage shall be used to increase the

county reserve above 15 per centum of the county allotment

determined without regard to such additional acreage). Additional

acreage apportioned to a State for any year under the foregoing

proviso shall not be taken into account in establishing future

State acreage allotments. Needs for additional acreage under the

foregoing provisions and under the last proviso in subsection (e)

of this section shall be determined or estimated as though

allotments were first computed without regard to subsection (f)(1)

of this section.

(c) Apportionment among States for years 1950 and 1951; computation

and adjustment

The national acreage allotments for cotton for the years 1950 and

1951 shall be apportioned to the States on the basis of a national

acreage allotment base of twenty-two million five hundred thousand

acres, computed and adjusted as follows:

(1) The average of the planted acreages (including acreage

regarded as planted under the provisions of Public Law 12,

Seventy-ninth Congress) in the States for the years 1945, 1946,

1947, and 1948 shall constitute the national base; except that in

the case of any State having a 1948 planted cotton acreage of

over one million acres and less than 50 per centum of the 1943

allotment, the average of the acreage planted (or regarded as

planted under Public Law 12, Seventy-ninth Congress) for the

years 1944, 1945, 1946, 1947, and 1948 shall constitute the base

for such State and shall be included in computing the national

base; to this is to be added (A) the estimated additional acreage

for each State required for small-farm allotments under

subsection (f)(1) of this section; (B) the acreage required as a

result of the State adjustment provisions of paragraph (2) of

this subsection; (C) the additional acreage required to determine

a total national allotment base of twenty-two million five

hundred thousand acres, which additional acreage shall be

distributed on a proportionate basis among States receiving no

adjustment under paragraph (2) of this subsection.

(2) Notwithstanding the provisions of paragraph (1) of this

subsection, the acreage allotment base for 1950 and 1951 for any

State (on the basis of a national acreage allotment base of

twenty-two million five hundred thousand acres) shall not be less

than the larger of (1) 95 per centum of the average acreage

actually planted to cotton in the State during the years 1947 and

1948, or (2) 85 per centum of the acreage planted to cotton in

the State in 1948.

(3) If the national acreage allotment for 1950 or 1951 is more

or less than twenty-two million five hundred thousand acres,

horizontal adjustments shall be made percentagewise by States so

as to reflect the ratio of the national acreage allotment for

1950 and 1951 to twenty-two million five hundred thousand acres.

(d) Apportionment for year 1952; adjustment

The national acreage allotment for cotton for 1952 shall be

apportioned to States on the basis of the acreage planted to cotton

(including the acreage regarded as having been planted to cotton

under the provisions of Public Law 12, Seventy-ninth Congress)

during the years 1946, 1947, 1948, and 1950, with adjustments for

abnormal weather conditions during such period.

(e) Apportionment among counties; reservation of acreage;

additional acreage for establishing minimum farm allotments

The State acreage allotment for cotton shall be apportioned to

counties on the same basis as to years and conditions as is

applicable to the State under subsections (b), (c), and (d) of this

section: Provided, That the State committee may reserve not to

exceed 10 per centum of its State acreage allotment (15 per centum

if the State's 1948 planted acreage was in excess of one million

acres and less than half its 1943 allotment) which shall be used to

make adjustments in county allotments for trends in acreage, for

counties adversely affected by abnormal conditions affecting

plantings, or for small or new farms, or to correct inequities in

farm allotments and to prevent hardship: Provided further, That if

the additional acreage allocated to a State under the proviso in

subsection (b) of this section is less than the requirements as

determined or estimated by the Secretary for establishing minimum

farm allotments for the State under subsection (f)(1) of this

section, the acreage reserved under this subsection shall not be

less than the smaller of (1) the remaining acreage so determined or

estimated to be required for establishing minimum farm allotments

or (2) 3 per centum of the State acreage allotment; and the acreage

which is required to be reserved under this proviso shall be

allocated to counties on the basis of their needs for additional

acreage for establishing minimum farm allotments under subsection

(f)(1) of this section, and added to the county acreage allotment

for apportionment to farms pursuant to subsection (f) of this

section (except that no part of such additional acreage shall be

used to increase the county reserve above 15 per centum of the

county allotment determined without regard to such additional

acreages).

(f) Apportionment among farms

The county acreage allotment, less not to exceed the percentage

provided for in paragraph 3 of this subsection, shall be

apportioned to farms on which cotton has been planted (or regarded

as having been planted under the provisions of Public Law 12,

Seventy-ninth Congress) in any one of the three years immediately

preceding the year for which such allotment is determined on the

following basis:

(1) Insofar as such acreage is available, there shall be

allotted the smaller of the following: (A) ten acres; or (B) the

acreage allotment established for the farm for the 1958 crop.

(2) The remainder shall be allotted to farms other than farms

to which an allotment has been made under paragraph (1)(B) of

this subsection so that the allotment to each farm under this

paragraph together with the amount of the allotment to such farm

under paragraph (1)(A) of this subsection shall be a prescribed

percentage (which percentage shall be the same for all such farms

in the county or administrative area) of the acreage, during the

preceding year, on the farm which is tilled annually or in

regular rotation, excluding from such acreages the acres devoted

to the production of sugarcane for sugar; sugar beets for sugar;

wheat, tobacco, or rice for market; peanuts picked and threshed;

wheat or rice for feeding to livestock for market; or lands

determined to be devoted primarily to orchards or vineyards, and

nonirrigated lands in irrigated areas: Provided, however, That if

a farm would be allotted under this paragraph an acreage together

with the amount of the allotment to such farm under paragraph

(1)(A) of this subsection in excess of the largest acreage

planted (and regarded as planted under Public Law 12,

Seventy-ninth Congress) to cotton during any of the preceding

three years, the acreage allotment for such farm shall not exceed

such largest acreage so planted (and regarded as planted under

Public Law 12, Seventy-ninth Congress) in any such year.

(3) The county committee may reserve not in excess of 15 per

centum of the county allotment (15 per centum if the State's 1948

planted cotton acreage was in excess of one million acres and

less than half its 1943 allotment) which, in addition to the

acreage made available under the proviso in subsection (e) of

this section, shall be used for (A) establishing allotments for

farms on which cotton was not planted (or regarded as planted

under Public Law 12, Seventy-ninth Congress) during any of the

three calendar years immediately preceding the year for which the

allotment is made, on the basis of land, labor, and equipment

available for the production of cotton, crop-rotation practices,

and the soil and other physical facilities affecting the

production of cotton; and (B) making adjustments of the farm

acreage allotments established under paragraphs (1) and (2) of

this subsection so as to establish allotments which are fair and

reasonable in relation to the factors set forth in this paragraph

and abnormal conditions of production on such farms, or in making

adjustments in farm acreage allotments to correct inequities and

to prevent hardship: Provided, That not less than 20 per centum

of the acreage reserved under this subsection shall, to the

extent required, be allotted, upon such basis as the Secretary

deems fair and reasonable to farms (other than farms to which an

allotment has been made under paragraph (1)(B) of this

subsection), if any, to which an allotment of not exceeding

fifteen acres may be made under other provisions of this

subsection.

(4) Any part of the acreage allotted for 1950 to individual

farms in any county under the provisions of this section which

will not be planted to cotton and which is voluntarily

surrendered to the county committee shall be deducted from the

allotments to such farms and may be reapportioned by the county

committee to other farms in the same county receiving allotments

to the extent necessary to provide such farms with the allotments

authorized under paragraph (5) of this subsection. If any

acreage remains after providing such allotments, it may be

apportioned in amounts determined by the county committee to be

fair and reasonable to other farms in the same county receiving

allotments which the county committee determines are inadequate

and not representative in view of their past production of cotton

and to new farms in such county. No allotment shall be made, or

increased, by reason of this paragraph to an acreage in excess of

40 per centum of the acreage on the farm which is tilled annually

or in regular rotation, as determined under regulations

prescribed by the Secretary. Any transfer of allotment under this

paragraph shall not operate to reduce the allotment for any

subsequent year for the farm from which acreage is transferred,

except in accordance with paragraph (1)(B) and the proviso in

paragraph (2) of this subsection: Provided, That any part of any

farm acreage allotment may be permanently released in writing to

the county committee by the owner and operator of the farm and

may be reapportioned in the manner set forth above. In any

subsequent year, unless hereafter otherwise provided by law,

acreage surrendered under this paragraph and reallocated pursuant

to applications filed in accordance with the provisions of

paragraph (5) of this section shall be credited to the State and

county in determining acreage allotments.

(5) Notwithstanding any other provision of law and without

reducing any farm acreage allotment determined pursuant to the

foregoing provisions of this subsection, each farm acreage

allotment for 1950 shall be increased by such amount as may be

necessary to provide an allotment equal to the larger of 65 per

centum of the average acreage planted to cotton (or regarded as

planted to cotton under the provisions of Public Law 12,

Seventy-ninth Congress) on the farm in 1946, 1947, and 1948, or

45 per centum of the highest acreage planted to cotton (or

regarded as planted to cotton under Public Law 12, Seventy-ninth

Congress) on the farm in any one of such three years; but no such

allotment shall be increased by reason of this provision to an

acreage in excess of 40 per centum of the acreage on the farm

which is tilled annually or in regular rotation, as determined

under regulations prescribed by the Secretary. An increase in any

1950 farm acreage allotment shall be made pursuant to this

paragraph only upon application in writing by the owner or

operator of the farm within such reasonable period of time (in no

event less than fifteen days) as may be prescribed by the

Secretary. The additional acreage required to be allotted to

farms under this paragraph shall be in addition to the county,

State, and national acreage allotments and the production from

such acreage shall be in addition to the national marketing

quota. The additional acreage authorized by this paragraph shall

not be taken into account in establishing future State, county,

and farm acreage allotments.

(6) Notwithstanding the provisions of paragraph (2) of the

subsection, if the county committee recommends such action and

the Secretary determines that such action will result in a more

equitable distribution of the county allotment among farms in the

county, the remainder of the county acreage allotment (after

making allotments as provided in paragraph (1) of this

subsection) shall be allotted to farms other than farms to which

an allotment has been made under paragraph (1)(B) of this

subsection so that the allotment to each farm under this

paragraph together with the amount of the allotment of such farm

under paragraph (1)(A) of this subsection shall be a prescribed

percentage (which percentage shall be the same for all such farms

in the county) of the average acreage planted to cotton on the

farm during the three years immediately preceding the year for

which such allotment is determined, adjusted as may be necessary

for abnormal conditions affecting plantings during such

three-year period: Provided, That the county committee may in its

discretion limit any farm acreage allotment established under the

provisions of this paragraph for any year to an acreage not in

excess of 50 per centum of the cropland on the farm, as

determined pursuant to the provisions of paragraph (2) of this

subsection: Provided further, That any part of the county acreage

allotment not apportioned under this paragraph by reason of the

initial application of such 50 per centum limitation shall be

added to the county acreage reserve under paragraph (3) of this

subsection and shall be available for the purposes specified

therein. If the county acreage allotment is apportioned among

the farms of the county in accordance with the provisions of this

paragraph, the acreage reserved under paragraph (3) of this

subsection may be used to make adjustments so as to establish

allotments which are fair and reasonable to farms receiving

allotments under this paragraph in relation to the factors set

forth in paragraph (3) of this subsection.

(7)(A) In the event that any farm acreage allotment is less

than that prescribed by paragraph (1) of this subsection, such

acreage allotment shall be increased to the acreage prescribed by

said paragraph (1). The additional acreage required to be

allotted to farms under this paragraph shall be in addition to

the county, State, and national acreage allotments and the

production from such acreage shall be in addition to the national

marketing quota.

(B) Notwithstanding any other provision of law -

(i) the acreage by which any farm acreage allotment for 1959

or any subsequent crop established under paragraph (1) of this

subsection exceeds the acreage which would have been allotted

to such farm if its allotment had been computed on the basis of

the same percentage factor applied to other farms in the county

under paragraph (2), (6), or (8) of this subsection shall not

be taken into account in establishing the acreage allotment for

such farm for any crop for which acreage is allotted to such

farm under paragraph (2), (6), or (8) of this subsection; and

acreage shall be allotted under paragraph (2), (6), or (8) of

this subsection to farms which did not receive 1958 crop

allotments in excess of ten acres if and only if the Secretary

determines (after considering the allotments to other farms in

the county for such crop compared with their 1958 allotments

and other relevant factors) that equity and justice require the

allotment of additional acreage to such farm under paragraph

(2), (6), or (8) of this subsection,

(ii) the acreage by which any county acreage allotment for

1959 or any subsequent crop is increased from the national or

State reserve on the basis of its needs for additional acreage

for establishing minimum farm allotments shall not be taken

into account in establishing future county acreage allotments,

and

(iii) the additional acreage allotted pursuant to

subparagraph (A) of this paragraph (7) shall not be taken into

account in establishing future State, county, or farm acreage

allotments.

(8) Notwithstanding the foregoing provisions of paragraphs (2)

and (6) of this subsection, the Secretary shall, if allotments

were in effect the preceding year, provide for the county acreage

allotment for the 1959 and succeeding crops of cotton, less the

acreage reserved under paragraph (3) of this subsection, to be

apportioned to farms on which cotton has been planted in any one

of the three years immediately preceding the year for which such

allotment is determined, on the basis of the farm acreage

allotment for the year immediately preceding the year for which

such apportionment is made, adjusted as may be necessary (i) for

any change in the acreage of cropland available for the

production of cotton, or (ii) to meet the requirements of any

provision (other than those contained in paragraphs (2) and (6))

with respect to the counting of acreage for history purposes:

Provided, That, beginning with allotments established for the

1961 crop of cotton, if the acreage actually planted (or regarded

as planted under the Soil Bank Act, the environmental quality

incentives program established under chapter 4 of subtitle D of

title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et

seq.), and the release and reapportionment provisions of

subsection (m) (2) of this section) to cotton on the farm in the

preceding year was less than 75 per centum of the farm allotment

for such year or, in the case of a farm which qualified for price

support on the crop produced in such year under section 1444(b)

of this title, 75 per centum of the farm domestic allotment

established under section 1350 of this title for such year,

whichever is smaller, in lieu of using such allotment as the farm

base as provided in this paragraph, the base shall be the average

of (1) the cotton acreage for the farm for the preceding year as

determined for purposes of this proviso and (2) the allotment

established for the farm pursuant to the provisions of this

subsection for such preceding year; and the 1958 allotment used

for establishing the minimum farm allotment under paragraph (1)

of this subsection shall be adjusted to the average acreage so

determined. The base for a farm shall not be adjusted as

provided in this paragraph if the county committee determines

that failure to plant at least 75 per centum of the farm

allotment was due to conditions beyond the control of producers

on the farm. The Secretary shall establish limitations to

prevent allocations of allotment to farms not affected by the

foregoing proviso, which would be excessive on the basis of the

cropland, past cotton acreage, allotments for other commodities,

and good soil conservation practices on such farms.

(g) Law and conditions governing establishment of acreage

allotments and yields

Notwithstanding the foregoing provisions of this section -

(1) State, county, and farm acreage allotments and yields for

cotton shall be established in conformity with section 1344a of

this title.

(2) In apportioning the county allotment among the farms within

the county, the Secretary, through the local committees, shall

take into consideration different conditions within separate

administrative areas within a county if any exist, including

types, kinds, and productivity of the soil so as to prevent

discrimination among the administrative areas of the county.

(h) Repealed. Feb. 16, 1938, ch. 30, title III, Sec. 378(d), as

added Aug. 28, 1958, Pub. L. 85-835, title V, Sec. 501, 72

Stat. 996

(i) Excess planting; old and new farm allotment

Notwithstanding any other provision of this chapter, any acreage

planted to cotton in excess of the farm acreage allotment shall not

be taken into account in establishing State, county, and farm

acreage allotments. Notwithstanding any other provision of this

chapter, beginning with the 1960 crop the planting of cotton on a

farm in any of the immediately preceding three years that

allotments were in effect but no allotment was established for such

farm for any year of such three-year period shall not make the farm

eligible for an allotment as an old farm under subsection (f) of

this section: Provided, however, That by reason of such planting

the farm need not be considered as ineligible for a new farm

allotment under subsection (f)(3) of this section.

(j) Availability of records for inspection

Notwithstanding any other provision of this chapter, State and

county committees shall make available for inspection by owners or

operators of farms receiving cotton acreage allotments all records

pertaining to cotton acreage allotments and marketing quotas.

(k) Minimum allotments to States

Notwithstanding any other provision of this section except

subsection (g)(1) of this section, there shall be allotted to each

State for which an allotment is made under this section not less

than the smaller of (A) four thousand acres or (B) the highest

acreage planted to cotton in any one of the three calendar years

immediately preceding the year for which the allotment is made.

(l) Administration of law governing war crops

Notwithstanding any other provision of law, the Secretary, in

administering the provisions of Public Law 12, Seventy-ninth

Congress, as it relates to war crops, shall carry out the

provisions of such Act in the following manner:

(i) A survey shall be conducted of every farm which had a 1942

cotton acreage allotment, and of such other farms as the

Secretary considers necessary in the administration of Public Law

12. This survey shall obtain for each farm the most accurate

information possible on (a) the total acreage in cultivation, and

(b) the acreage of individual crops planted on each farm in the

years 1941, 1945, 1946, and 1947.

(ii) An eligible farm for war-crop credit shall be a farm on

which (a) the cotton acreage on the farm in 1945, 1946, or 1947,

was reduced below the cotton acreage planted on the farm in 1941;

(b) the war-crop acreage on the farm in 1945, 1946, or 1947, was

increased above the war-crop acreage on the farm in 1941; and (c)

the farm had a cotton acreage allotment in 1942.

(iii) A farm shall be regarded as having planted cotton (in

addition to the actual acreage planted to cotton) to the extent

of the lesser of (a) the reduction in cotton acreage for each of

the years 1945, 1946, and 1947, below the acreage planted to

cotton in 1941, or (b) the increase in war crops for each of the

years 1945, 1946, and 1947, above that planted to such war crops

in 1941. However, the county committee may be given the

discretion to adjust such war-crop credit when the county

committee determines that the reduction in cotton acreage was not

related to an increase in war crops, but the adjustment shall be

made only after consultation with the producer.

(iv) The Secretary, using the best information obtainable, and

working with and through the State and county committees, shall

use whatever means necessary to make an accurate determination of

the credits due each individual farm, under Public Law 12.

(v) The total of the war-crop credits due the individual farms

in each county shall be credited to the county and the total of

the war-crop credits due all of the counties in a State shall be

credited to the State.

(vi) The acreage credited to States, counties, and farms for

the years 1945, 1946, or 1947, because of war crops, shall be

taken into full account in the determination and distribution of

cotton acreage allotments on a national, State, county, and farm

basis.

(m) Acreage allotments, 1954; increases; apportionments;

limitations; unallotted farm acreage; reapportionment of

surrendered acreage; extra long staple cotton; reserve acreage

Notwithstanding any other provision of law -

(1) The national acreage allotment established under subsection

(a) of this section for the 1954 crop of cotton shall be

increased to twenty-one million acres and apportioned to the

States in the same manner in which the national acreage allotment

heretofore established for 1954 was apportioned to the States. In

addition to such increased national acreage allotment, and in

order to provide equitable adjustments in 1954 farm acreage

allotments, (A) three hundred and fifteen thousand additional

acres shall be prorated as follows: one-half to the States of

Arizona, California, and New Mexico, and one-half to the other

States (excluding those which receive a minimum allotment under

subsection (k) of this section), the proration of each half being

made to the States participating therein on the basis of their

respective shares of the increased national acreage allotment,

and (B) such additional acreage shall be added as may be required

to provide each State a total allotment under subsection (b) of

this section and the provisions of this paragraph of not less

than 66 per centum of the acreage planted to cotton in the State

in 1952. The additional acreage made available to States under

clause (B) of the preceding sentence shall not be taken into

account in establishing future State acreage allotments. The

additional acreage made available to States under the provisions

of this paragraph shall be apportioned to counties on the basis

of their respective shares of the State acreage allotment

heretofore apportioned pursuant to subsection (e) of this

section, and the additional acreage shall be apportioned to farms

pursuant to the provisions of subsection (f) of this section:

Provided, That, if the county committee determines that such

action will result in a more equitable distribution of the

additional county allotment among farms in the county, the

additional acreage shall be apportioned by the county committee

to farms so as to provide each farm with an allotment equal to

the larger of 65 per centum of the average acreage planted to

cotton on the farm in 1951, 1952, and 1953 (as determined by the

county committee in establishing allotments under subsection (f)

of this section) or 40 per centum of the highest acreage planted

to cotton on the farm in any one of such three years as so

determined: Provided, That the State committee in each State

shall limit such increase based on the system of farming, soil,

crop-rotation practices, and other physical factors affecting

production in such State, to an acreage not in excess of 50 per

centum of the cropland on the farm, as determined under

regulations heretofore prescribed by the Secretary. If the

additional acreage is insufficient to meet the total of the farm

increases so computed, such farm increases shall be reduced pro

rata to the additional acreage available to the county; if the

additional acreage available to the county is in excess of the

total of the farm increases so computed the acreage remaining

after making such increases shall be allotted to farms pursuant

to the provisions of subsection (f)(3) of this section.

Notwithstanding the foregoing provisions of this paragraph, if

the State committee determines that such action will result in a

more equitable distribution of the additional acreage made

available to the State under this paragraph it shall apportion

such additional allotment directly to farms so as to provide each

farm with an allotment equal to the larger of 65 per centum of

the average acreage planted to cotton on the farm in 1951, 1952,

and 1953 (as determined by the county committee in establishing

allotments under subsection (f) of this section) or 40 per centum

of the highest acreage planted to cotton on the farm in any one

of such three years as so determined: Provided, That the State

committee in each State shall limit such increase based on the

system of farming, soil, crop-rotation practices, and other

physical factors affecting production in such State, to an

acreage not in excess of 50 per centum of the cropland on the

farm, as determined under regulations heretofore prescribed by

the Secretary: Provided, That if the State total of the farm

increases so computed exceeds the additional acreage made

available to the State under this paragraph, such farm increases

shall be reduced pro rata to the additional acreage available to

the State. Any acreage unallotted to farms because of the

limitations contained in the preceding sentence shall be

apportioned by the State committee to counties on the basis of

past acreages planted to cotton and shall be used by county

committees for adjustments in farm allotments on the basis of one

or more of the following: The past acreage of cotton on the farm,

the percentage of cropland heretofore determined under subsection

(f)(2) of this section, and the factors enumerated in subsection

(f)(3) of this section. Before apportioning such unallotted

acreage to counties as provided in the foregoing sentence, the

State committee may, if it determines that such action is

required to provide equitable allotments within the State,

apportion such unallotted acreage directly to farms to the extent

required to provide each farm with the minimum allotment

described in subsection (f)(1) of this section. Any part of the

county allotment heretofore established for the 1954 crop which

was not apportioned to farms because of the limitation contained

in the proviso in subsection (f)(2) of this section shall be

available to the State committee and used as provided above for

apportionment of unallotted acreage to farms. The provisions of

this subsection, except paragraph (2) of this subsection, shall

not apply to extra long staple cotton covered by section 1347 of

this title.

(2) Any part of any farm cotton acreage allotment on which

cotton will not be planted and which is voluntarily surrendered

to the county committee shall be deducted from the allotment to

such farm and may be reapportioned by the county committee to

other farms in the same county receiving allotments in amounts

determined by the county committee to be fair and reasonable on

the basis of past acreage of cotton land, labor, equipment

available for the production of cotton, crop rotation practices,

and soil and other physical facilities affecting the production

of cotton. If all of the allotted acreage voluntarily

surrendered is not needed in the county, the county committee may

surrender the excess acreage to the State committee to be used

for the same purposes as the State acreage reserve under

subsection (e) of this section. Any allotment released under

this provision shall be regarded for the purposes of establishing

future allotments as having been planted on the farm and in the

county where the release was made rather than on the farm and in

the county to which the allotment was transferred, except that

this shall not operate to make the farm from which the allotment

was transferred eligible for an allotment as having cotton

planted thereon during the three-year base period: Provided, That

notwithstanding any other provisions of law, any part of any farm

acreage allotment may be permanently released in writing to the

county committee by the owner and operator of the farm, and

reapportioned as provided herein. Acreage released under this

paragraph shall be credited to the State in determining future

allotments. The provisions of this paragraph shall apply also to

extra long staple cotton covered by section 1347 of this title.

(3) Notwithstanding any other provision of this section or

other provision of law, the acreage allotted to any State for

1954 under the provisions of subsection (b) of this section and

the provisions of paragraph (1) of this subsection which is less

than one hundred thousand acres but more than thirty thousand

acres shall be increased by an acreage equal to 15 per centum of

the acreage allotted to it prior to January 30, 1954. Such

acreage shall be used by the State committee as a reserve to make

equitable adjustments in 1954 farm acreage allotments on the

basis of land, labor, equipment available for the production of

cotton, crop-rotation practices, past acreages of cotton, soil,

and other physical factors affecting the production of cotton.

(n) Transfer of farm cotton acreage allotments in case of natural

disasters; eligibility for allotment

Notwithstanding any other provision of this chapter, if the

Secretary determines for any year that because of a natural

disaster a portion of the farm cotton acreage allotments in a

county cannot be timely planted or replanted in such year, he may

authorize for such year the transfer of all or a part of the cotton

acreage allotment for any farm in the county so affected to another

farm in the county or in an adjoining county on which one or more

of the producers on the farm from which the transfer is to be made

will be engaged in the production of cotton and will share in the

proceeds thereof, in accordance with such regulations as the

Secretary may prescribe. Any farm allotment transferred under this

paragraph shall be deemed to be released acreage for purposes of

acreage history credits under subsections (f)(8) and (m)(2) of this

section, and section 1377 of this title: Provided, That,

notwithstanding the provisions of subsection (m)(2) of this

section, the transfer of any farm allotment under this subsection

for any year shall operate to make the farm from which the

allotment was transferred eligible for an allotment as having

cotton planted thereon during the three-year base period.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 344, 52 Stat. 57; Apr. 7,

1938, ch. 107, Sec. 9, 52 Stat. 203; May 31, 1938, ch. 292, Sec. 1,

52 Stat. 586; Mar. 13, 1939, ch. 9, 53 Stat. 512; June 22, 1939,

ch. 238, Sec. 1-3, 53 Stat. 853; Feb. 6, 1942, ch. 44, Sec. 3, 56

Stat. 52; Aug. 29, 1949, ch. 518, Sec. 1, 63 Stat. 670; Oct. 31,

1949, ch. 792, title IV, Sec. 419, 63 Stat. 1062; Mar. 31, 1950,

ch. 81, Sec. 1, 64 Stat. 40; Jan. 30, 1954, ch. 2, Sec. 1-3, 68

Stat. 4-6; Aug. 28, 1954, ch. 1041, title III, Sec. 310, 68 Stat.

904; May 28, 1956, ch. 327, title III, Sec. 303(a)-(d), 70 Stat.

203; Pub. L. 85-456, June 11, 1958, 72 Stat. 186; Pub. L. 85-835,

title I, Sec. 103(4), 104(a)-(d), 105-107, Aug. 28, 1958, 72 Stat.

990-992; Feb. 16, 1938, ch. 30, title III, Sec. 378(d), as added

Pub. L. 85-835, title V, Sec. 501, Aug. 28, 1958, 72 Stat. 996;

Pub. L. 86-172, Sec. 2, Aug. 18, 1959, 73 Stat. 393; Pub. L. 87-37,

May 20, 1961, 75 Stat. 84; Pub. L. 87-446, Apr. 27, 1962, 76 Stat.

64; Pub. L. 88-12, Apr. 26, 1963, 77 Stat. 13; Pub. L. 88-297,

title I, Sec. 106(3), (8), Apr. 11, 1964, 78 Stat. 177; Pub. L.

104-127, title III, Sec. 336(b)(2)(A), Apr. 4, 1996, 110 Stat.

1006.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 12, Seventy-ninth Congress, referred to in subsecs.

(b), (c), (d), (f), (l), is act Feb. 28, 1945, ch. 15, 59 Stat. 9,

which related to Emergency Farm Acreage Allotments. See note

below. For complete classification of this Act to the Code, see

Tables.

The Soil Bank Act, referred to in subsec. (f)(8), is act May 28,

1956, ch. 327, 70 Stat. 188, as amended, which was classified to

subchapters I to III of chapter 45 (Sec. 1801 et seq.) of this

title and was repealed by Pub. L. 89-321, title VI, Sec. 601, Nov.

3, 1965, 79 Stat. 1206. For complete classification of this Act to

the Code prior to its repeal, see Tables.

The Food Security Act of 1985, referred to in subsec. (f)(8), is

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

4 of subtitle D of title XII of the Act is classified generally to

part IV (Sec. 3839aa et seq.) of subchapter IV 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.

Section 1347 of this title, referred to in subsec. (m)(1), (2),

was repealed by Pub. L. 98-88, Sec. 2, Aug. 26, 1983, 97 Stat. 494.

-MISC2-

AMENDMENTS

1996 - Subsec. (f)(8). Pub. L. 104-127 substituted

''environmental quality incentives program established under

chapter 4 of subtitle D of title XII of the Food Security Act of

1985'' for ''Great Plains program''.

1964 - Subsec. (f)(8). Pub. L. 88-297, Sec. 106(3), inserted

''or, in the case of a farm which qualified for price support on

the crop produced in such year under section 1444(b) of this title,

75 per centum of the farm domestic allotment established under

section 1350 of this title for such year, whichever is smaller''

after ''75 per centum of the farm allotment for such year'' to

protect the farm base of any farm participating in the domestic

allotment choice program if the acreage planted on the farm was at

least 75 per centum of the farm domestic allotment.

Subsec. (n). Pub. L. 88-297, Sec. 106(8), extended the transfer

provisions to natural disasters occurring in any year instead of

only during 1963.

1963 - Subsec. (n). Pub. L. 88-12 substituted ''portion of the

1963'' for ''substantial portion of the 1962'', and inserted

proviso ''that notwithstanding subsection (m)(2) of this section,

transfers under this subsection for 1963 makes the farm from which

the allotment was transferred eligible for an allotment as having

cotton during the three-year period''.

1962 - Subsec. (n). Pub. L. 87-466 substituted ''1962'' for

''1961''.

1961 - Subsec. (n). Pub. L. 87-37 substituted ''1961'' for

''1958'', and ''Any farm allotment transferred under this paragraph

shall be deemed to be released acreage for purposes of acreage

history credits under subsections (f)(8) and (m)(2) of this

section, and section 1377 of this title'' for ''Acreage history

credits for transferred acreage shall be governed by the provisions

of subsection (m)(2) of this section pertaining to the release and

reapportionment of acreage allotments. No transfer hereunder shall

be made to a farm covered by a 1958 acreage reserve contract for

cotton.''

1959 - Subsec. (f)(8). Pub. L. 86-172, Sec. 2(1), inserted

proviso for determination of base beginning with allotments

established for the 1961 crop of cotton, and inserted provisions

prohibiting the adjustment of the base for a farm where the county

committee determines that failure to plant at least 75 per centum

of the farm allotment was due to conditions beyond control of

producers on the farm, and requiring the Secretary to establish

limitations to prevent allocations of allotment to farms not

affected by proviso.

Subsec. (g)(3). Pub. L. 86-172, Sec. 2(2), repealed par. (3)

which provided that for any farm on which the acreage planted to

cotton in any year was less than the farm acreage allotment for

such year by not more than the larger of 10 per centum of the

allotment or one acre, an acreage equal to the farm acreage

allotment should be deemed to be the acreage planted to cotton on

such farm, and the additional acreage added to the cotton acreage

history for the farm should be added to the cotton acreage history

for the county and State.

Subsec. (i). Pub. L. 86-172, Sec. 2(3), inserted provisions

respecting eligibility for old and new farm allotment.

Subsec. (m)(2). Pub. L. 86-172, Sec. 2(4), struck out ''; but no

such acreage shall be surrendered to the State committee so long as

any farmer receiving a cotton acreage allotment in such county

desires additional cotton acreage'' after ''subsection (e) of this

section'' and substituted ''Any allotment released under this

provision shall be regarded for the purpose of establishing future

allotments as having been planted on the farm and in the county

where the release was made rather than on the farm and in the

county to which the allotment was transferred'' for ''Any allotment

transferred under this provision shall be regarded for the purposes

of subsection (f) of this section as having been planted on the

farm from which transferred rather than on the farm to which

transferred'' and ''Acreage released under this paragraph shall be

credited to the State in determining future allotments'' for

''Acreage surrendered, reapportioned under this paragraph, and

planted shall be credited to the State and county in determining

future acreage allotments''.

1958 - Subsec. (a). Pub. L. 85-835, Sec. 103(4), substituted

''four'' for ''five'' in second sentence.

Subsec. (b). Pub. L. 85-835, Sec. 104(a), established a national

acreage reserve of 310,000 acres in addition to the national

acreage allotment, provided that apportionments of additional

acreage shall not be taken into account in establishing future

State allotments, and inserted provisions for determination of

needs for additional acreage.

Subsec. (e). Pub. L. 85-835, Sec. 104(b), inserted proviso

relating to additional acreage allocated to a State.

Subsec. (f)(1). Pub. L. 85-835, Sec. 104(c), substituted ''(A)

ten acres; or (B) the acreage allotment established for the farm

for the 1958 crop'' for ''(A) four acres; or (B) the highest number

of acres planted to cotton in any year of such three-year period''.

Subsec. (f)(6). Pub. L. 85-835, Sec. 104(d), substituted

''provisions of paragraph (2) of this subsection'' for ''foregoing

provisions of this subsection except paragraph (3) of this

subsection'', ''remainder of the county acreage allotment (after

making allotments as provided in paragraph (1) of this subsection)

shall be allotted'' for ''county acreage allotment, less the

acreage reserved under paragraph (3) of this subsection, shall be

apportioned'', and inserted provisions requiring the allotments to

be a prescribed percentage of the average acreage planted to cotton

on the farm during the three years immediately preceding the year

for which such allotment is determined.

Subsec. (f)(7). Pub. L. 85-835, Sec. 105, added par. (7).

Subsec. (f)(8). Pub. L. 85-835, Sec. 106, added par. (8).

Subsec. (h). Act Feb. 16, 1938, Sec. 378(d), as added by Pub. L.

85-835, Sec. 501, repealed subsec. (h) which related to

apportionment by county committee and reallocation of flood lands.

Subsec. (m)(2). Pub. L. 85-835, Sec. 107, provided that any

cotton acreage which is surrendered shall be retained in the county

and not surrendered to the State committee so long as any farmer in

the county desires additional cotton acreage.

Subsec. (n). Pub. L. 85-456 added subsec. (n).

1956 - Subsec. (b). Act May 28, 1956, Sec. 303(a), temporarily

inserted ''Provided, That there is hereby established a national

acreage reserve consisting of one hundred thousand acres which

shall be in addition to the national acreage allotment; and such

reserve shall be apportioned to the States on the basis of their

needs for additional acreage for establishing minimum farm

allotments under subsection (f)(1) of this section, as determined

by the Secretary without regard to State and county acreage

reserves (except that the amount apportioned to Nevada shall be one

thousand acres), and the additional acreage so apportioned to the

State shall be apportioned to the counties on the same basis and

added to the county acreage allotment for apportionment to farms

pursuant to subsection (f) of this section (except that no part of

such additional acreage shall be used to increase the county

reserve above 15 per centum of the county allotment determined

without regard to such additional acreage). Additional acreage

apportioned to a State for any year under the foregoing proviso

shall not be taken into account in establishing future State

acreage allotments. Needs for additional acreage under the

foregoing proviso and under the last proviso in subsection (e) of

this section shall be determined as though allotments were first

computed without regard to subsection (f)(1) of this section.'' See

Effective and Termination Dates of 1956 Amendment note below.

Subsec. (e). Act May 28, 1956, Sec. 303(b), temporarily inserted

''Provided further, That if the additional acreage allocated to a

State under the proviso in subsection (b) of this section is less

than the requirements as determined by the Secretary for

establishing minimum farm allotments for the State under subsection

(f)(1) of this section, the acreage reserved by the State committee

under this subsection shall not be less than the smaller of (1) the

remaining acreage so determined to be required for establishing

minimum farm allotments or (2) 3 per centum of the State acreage

allotment; and the acreage which the State committee is required to

reserve under this proviso shall be allocated to counties on the

basis of their needs for additional acreage for establishing

minimum farm allotments under subsection (f)(1) of this section,

and added to the county acreage allotment for apportionment to

farms pursuant to subsection (f) of this section (except that no

part of such additional acreage shall be used to increase the

county reserve above 15 per centum of the county allotment

determined without regard to such additional acreages).'' See

Effective and Termination Dates of 1956 Amendment note below.

Subsec. (f)(1). Act May 28, 1956, Sec. 303(c), temporarily

inserted ''Insofar as such acreage is available,'', substituted

''four acres'' for ''five acres'', and struck out ''(or regarded as

planted under Public Law 12, Seventy-ninth Congress)'' after

''planted''. See Effective and Termination Dates of 1956 Amendment

note below.

Subsec. (f)(6). Act May 28, 1956, Sec. 303(d), temporarily

substituted ''provisions of paragraph (2) of this subsection'' for

''foregoing provisions of this subsection except paragraph (3) of

this subsection'' and ''the remainder of the county acreage

allotment (after making allotments as provided in paragraph (1) of

this subsection) shall be allotted to farms other than farms to

which an allotment has been made under paragraph (1)(B) of this

subsection so that the allotment to each farm under this paragraph

together with the amount of the allotment of such farm under

paragraph (1)(A) of this subsection shall be a prescribed

percentage (which percentage shall be the same for all such farms

in the county) of the average acreage planted to cotton on the farm

during the three years immediately preceding the year for which

such allotment is determined,'' for ''the county acreage allotment,

less the acreage reserved under paragraph (3) of this subsection,

shall be apportioned to farms on which cotton has been planted in

any one of the three years immediately preceding the year for which

such allotment is determined, on the basis of the acreage planted

to cotton on the farm during such three-year period,'' and struck

out ''(A) apportion such county allotment by first establishing

minimum allotments in accordance with paragraph (1) of this

subsection and by allotting the remaining acreage to farms other

than those receiving an allotment under paragraph (1)(B) in

accordance with the foregoing provisions of this paragraph and

(B)'' after ''committee may in its discretion''. See Effective and

Termination Dates of 1956 Amendment note below.

1954 - Subsec. (e). Act Jan. 30, 1954, Sec. 3(a), inserted at end

''or to correct inequities in farm allotments and to prevent

hardship''.

Subsec. (f)(3). Act Jan. 30, 1954, Sec. 3(b), inserted '', or in

making adjustments in farm acreage allotments to correct inequities

and to prevent hardship''.

Subsec. (f)(6). Act Aug. 28, 1954, Sec. 310(a), inserted proviso

to first sentence.

Act Jan. 30, 1954, Sec. 3(c), added par. (6).

Subsec. (h). Act Jan. 30, 1954, Sec. 2, inserted sentence

relating to reallocation of flood lands.

Subsec. (m). Act Jan. 30, 1954, Sec. 1, added subsec. (m).

Subsec. (m)(2). Act Aug. 28, 1954, Sec. 310(b), struck out ''1954

or 1955'' wherever appearing.

1950 - Subsec. (f)(4), (5). Act Mar. 31, 1950, added pars. (4)

and (5).

1949 - Subsec. (f)(3). Act Oct. 31, 1949, increased reserve

percentage of county allotment from 10 to 15 in first sentence and

decreased percentage of acreage reserved from 30 to 20 in proviso.

Act Aug. 29, 1949, amended section generally to provide for a

national acreage base to be used in apportioning to the States the

actual national acreage allotment, and to make the national acreage

allotment base and the outlined division among the States such as

will complement the minimum national marketing quota provisions and

thus permit a gradual reduction of any excessive carryover.

1942 - Subsec. (j). Act Feb. 6, 1942, added subsec. (j).

1939 - Subsec. (e)(1). Act June 22, 1939, Sec. 1, substituted

''For 1938, 1939, and any subsequent year'' for ''For 1938 and

1939''.

Subsec. (g). Act June 22, 1939, Sec. 2, substituted ''For 1938,

1939, and each subsequent year'' for ''For each of the years 1938

and 1939''.

Subsec. (h). Act June 22, 1939, Sec. 3, substituted ''for 1938,

1939, and each subsequent year'' for ''For each of the years 1938

and 1939''.

Act Mar. 13, 1939, substituted ''for any crop year'' for ''for

the crop year 1938'' and struck out ''for 1938'' from first

proviso.

1938 - Subsec. (b). Act Apr. 7, 1938, Sec. 9(a), amended second

sentence.

Subsec. (d)(3). Act Apr. 7, 1938, Sec. 9(b), inserted ''sugarcane

for sugar,'' after ''excluding from such acreage the acres devoted

to the production of'' in second sentence, and ''wheat or rice''

after ''rice for market or,''.

Subsec. (e). Act Apr. 7, 1938, Sec. 9(c), designated existing

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

Subsec. (g). Act Apr. 7, 1938, Sec. 9(d), added subsec. (g).

Subsec. (h). Act May 31, 1938, among other changes, inserted

''and for the crop year 1938 any part of the acreage allotted to

individual farms in the State which it is determined, in accordance

with regulations prescribed by the Secretary, will not be planted

to cotton in the year for which the allotment is made, shall be

deducted from the allotments to such farms and may be apportioned,

in amounts determined by the Secretary to be fair and reasonable,

preference being given to farms in the same county receiving

allotments which the Secretary determines are inadequate and not

representative in view of the past production of cotton and the

acreage diverted from the production of cotton on such farms under

the agricultural conservation program in the immediately preceding

year: Provided, That any such transfer of allotment for 1938 shall

not affect apportionment for any subsequent year'' after

''Secretary''.

Act Apr. 7, 1938, Sec. 9(d), added subsec. (h).

Subsec. (i). Act Apr. 7, 1938, Sec. 9(d), added subsec. (i).

EFFECTIVE DATE OF 1958 AMENDMENT

Section 104(e) of Pub. L. 85-835 provided that: ''The amendments

made by this section (amending this section) shall be effective

beginning with the 1959 crop.''

Section 105 of Pub. L. 85-835 provided that the amendment made by

that section is effective beginning with 1959 crop.

EFFECTIVE AND TERMINATION DATES OF 1956 AMENDMENT

Section 303(e) of act May 28, 1956, provided that: ''The

amendments made by this section (amending this section) shall be

effective only with respect to 1957 and 1958 crops. For the 1956

crop, an acreage in each State equal to the acreage allotted in

such State which the Secretary determines will not be planted,

placed in the acreage reserve or conservation reserve, or

considered as planted under section 377 of the Agricultural

Adjustment Act of 1938, as amended (section 1377 of this title),

may be apportioned by the Secretary among farms in such State

having allotments of less than the smaller of the following: (1)

four acres, or (2) the highest number of acres planted to cotton in

any of the years 1953, 1954, and 1955.''

EFFECTIVE DATE OF 1954 AMENDMENT

Section 3 of act Jan. 30, 1954, provided that the amendments made

by that section are effective beginning with 1955 crop. The

amendments made by sections 1 and 2 of such act took effect on the

date of approval of such act, Jan. 30, 1954.

SAVINGS PROVISION

Transfer or reassignment of allotment as remaining in effect and

ineligibility of displaced farm owner for additional allotment

notwithstanding repeal of subsec. (h), see note set out under

section 1378 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 1984 and subsequent crops of extra long

staple cotton, see section 3 of Pub. L. 98-88, set out as a note

under section 1342 of this title.

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of upland cotton,

see section 502 of Pub. L. 101-624, set out as a note under section

1342 of this title.

Section inapplicable to 1986 through 1990 crops of upland cotton,

see section 502 of Pub. L. 99-198, set out as a note under section

1342 of this title.

Section inapplicable to 1982 through 1985 crops of upland cotton,

see section 501 of Pub. L. 97-98, set out as a note under section

1342 of this title.

Section inapplicable to 1978 through 1981 crops of upland cotton,

see section 601 of Pub. L. 95-113, set out as a note under section

1342 of this title.

Pub. L. 91-524, title VI, Sec. 601(1), Nov. 30, 1970, 84 Stat.

1371, as amended by Pub. L. 93-86, Sec. 1(19)(A), Aug. 10, 1973, 87

Stat. 233, provided that this section is inapplicable to 1971

through 1977 crops of upland cotton.

EMERGENCY FARM ACREAGE ALLOTMENT

Act Feb. 28, 1945, ch. 15, 59 Stat. 9, provided for farm acreage

allotment during national emergency proclaimed by the President on

Sept. 8, 1939, and May 27, 1941, and which emergencies terminated

on July 25, 1947, by the provisions of Joint Res. July 25, 1947,

ch. 327, Sec. 3, 61 Stat. 451.

COUNTY COMMITTEE ALLOTMENT

Act Mar. 13, 1939, in addition to amending former subsec. (h),

contained the following: ''Provided, That hereafter such allotment

of acreage in counties shall be to such farms as the County

Committee of such county may designate. In making such designation

the County Committee shall consider only the character and

adaptability of the soil and other physical facilities affecting

the production of cotton and the need of operator for an additional

allotment to meet the requirement of the families engaging in the

production of cotton on the farm in such year.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1346, 1349, 1350, 1377,

1428, 1444 of this title.

-CITE-

7 USC Sec. 1344a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1344a. Exclusion of 1949 acreage in computation of future

allotments

-STATUTE-

Notwithstanding the provisions of subchapter III of this chapter,

or of any other law, State, county, and farm acreage allotments and

yields for cotton for any year after 1949 shall be computed without

regard to yields or to the acreage planted to cotton in 1949.

-SOURCE-

(Mar. 29, 1949, ch. 38, 63 Stat. 17.)

-COD-

CODIFICATION

Section was not enacted as part of the Agriculture Adjustment Act

of 1938 which comprises this chapter.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1344 of this title.

-CITE-

7 USC Sec. 1344b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1344b. Sale, lease, or transfer of cotton acreage allotments

-STATUTE-

(a) Authority for calendar years 1966 through 1970; transfer

periods

Notwithstanding any other provision of law, the Secretary, if he

determines that it will not impair the effective operation of the

program involved, (1) may permit the owner and operator of any farm

for which a cotton acreage allotment is established to sell or

lease all or any part or the right to all or any part of such

allotment (excluding that part of the allotment which the Secretary

determines was apportioned to the farm from the national acreage

reserve) to any other owner or operator of a farm for transfer to

such farm; (2) may permit the owner of a farm to transfer all or

any part of such allotment to any other farm owned or controlled by

him; Provided, That the authority granted under this section may be

exercised for the calendar years 1966 through 1970, but all

transfers hereunder shall be for such period of years as the

parties thereto may agree.

(b) Requisite conditions for transfer of acreage allotments

Transfers under this section shall be subject to the following

conditions: (i) no allotment shall be transferred to a farm in

another State or to a person for use in another State; (ii) no farm

allotment may be sold or leased for transfer to a farm in another

county unless the producers of cotton in the county from which

transfer is being made have voted in a referendum within three

years of the date of such transfer, by a two-thirds majority of the

producers participating in such referendum, to permit the transfer

of allotments to farms outside the county, which referendum,

insofar as practicable, shall be held in conjunction with the

marketing quota referendum for the commodity; (iii) no transfer of

an allotment from a farm subject to a mortgage or other lien shall

be permitted unless the transfer is agreed to by the lienholder;

(iv) no sale of a farm allotment shall be permitted if any sale of

cotton allotment to the same farm has been made within the three

immediately preceding crop years; (v) the total cotton allotment

for any farm to which allotment is transferred by sale or lease

shall not exceed the farm acreage allotment (excluding

reapportioned acreage) established for such farm for 1965 by more

than one hundred acres; (vi) no cotton in excess of the remaining

acreage allotment on the farm shall be planted on any farm from

which the allotment (or part of an allotment) is sold for a period

of five years following such sale, nor shall any cotton in excess

of the remaining acreage allotment on the farm be planted on any

farm from which the allotment (or part of an allotment) is leased

during the period of such lease, and the producer on such farm

shall so agree as a condition precedent to the Secretary's approval

of any such sale or lease; and (vii) no transfer of allotment shall

be effective until a record thereof is filed with the county

committee of the county to which such transfer is made and such

committee determines that the transfer complies with the provisions

of this section. Such record may be filed with such committee only

during the period beginning June 1 and ending December 31.

(c) Extent of estate transferred

The transfer of an allotment shall have the effect of

transferring also the acreage history, farm base, and marketing

quota attributable to such allotment and if the transfer is made

prior to the determination of the allotment for any year the

transfer shall include the right of the owner or operator to have

an allotment determined for the farm for such year: Provided, That

in the case of a transfer by lease, the amount of the allotment

shall be considered for purposes of determining allotments after

the expiration of the lease to have been planted on the farm from

which such allotment is transferred.

(d) Period of ineligibility of land for new allotment

The land in the farm from which the entire cotton allotment and

acreage history have been transferred shall not be eligible for a

new farm cotton allotment during the five years following the year

in which such transfer is made.

(e) Transfer of allotments established under minimum allotment

provisions

The transfer of a portion of a farm allotment which was

established under minimum farm allotment provisions for cotton or

which operates to bring the farm within the minimum farm allotment

provision for cotton shall cause the minimum farm allotment or base

to be reduced to an amount equal to the allotment remaining on the

farm after such transfer.

(f) Rules and regulations

The Secretary shall prescribe regulations for the administration

of this section, which shall include provisions for adjusting the

size of the allotment transferred if the farm to which the

allotment is transferred has a substantially higher yield per acre

and such other terms and conditions as he deems necessary.

(g) Adjustment upon transfer of land covered by conservation

reserve contract

If the sale or lease occurs during a period in which the farm is

covered by a conservation reserve contract, cropland conversion

agreement, cropland adjustment agreement, or other similar land

utilization agreement, the rates of payment provided for in the

contract or agreement of the farm from which the transfer is made

shall be subject to an appropriate adjustment, but no adjustment

shall be made in the contract or agreement of the farm to which the

allotment is transferred.

(h) Exchange of cotton acreage allotments for rice acreage

allotments

The Secretary shall by regulations authorize the exchange between

farms in the same county, or between farms in adjoining counties

within a State, of cotton acreage allotment for rice acreage

allotment. Any such exchange shall be made on the basis of

application filed with the county committee by the owners and

operators of the farms, and the transfer of allotment between the

farms shall include transfer of the related acreage history for the

commodity. The exchange shall be acre for acre or on such other

basis as the Secretary determines is fair and reasonable, taking

into consideration the comparative productivity of the soil for the

farms involved and other relevant factors. No farm from which the

entire cotton or rice allotment has been transferred shall be

eligible for an allotment of cotton or rice as a new farm within a

period of five crop years after the date of such exchange.

(i) Applicability to cotton restricted to upland cotton

The provisions of this section relating to cotton shall apply

only to upland cotton.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 344a, as added Pub. L.

89-321, title IV, Sec. 405, Nov. 3, 1965, 79 Stat. 1197; amended

Pub. L. 90-559, Sec. 1(2), Oct. 11, 1968, 82 Stat. 996; Pub. L.

91-524, title VI, Sec. 601(3)(1), Nov. 30, 1970, 84 Stat. 1372;

Pub. L. 93-86, Sec. 1(19)(C), (D), Aug. 10, 1973, 87 Stat. 233.)

-MISC1-

AMENDMENTS

1973 - Subsec. (a). Pub. L. 93-86 struck out ''for which a farm

base acreage allotment is established (other than pursuant to

section 1350(e)(1)(A) of this title)'' after ''to any other owner

or operator of a farm'' and substituted ''1978'' for ''1974''.

1970 - Subsec. (a). Pub. L. 91-524 temporarily directed Secretary

to permit certain types of transfers of all or part of farm base

acreage allotments between farms in same State. See Effective and

Termination Dates of 1970 Amendment note below.

1968 - Subsec. (a). Pub. L. 90-559 provided for a one year

extension, substituting ''1966 through 1970'' for ''1966, 1967,

1968, and 1969''.

EFFECTIVE DATE OF 1973 AMENDMENT

Section 1(19)(C) of Pub. L. 93-86 provided that the amendment

made by that section is effective beginning with 1974 crop.

EFFECTIVE AND TERMINATION DATES OF 1970 AMENDMENT

Section 601(3) of Pub. L. 91-524, as amended by section 1(19)(A)

of Pub. L. 93-86, provided that the amendment made by that section

is effective only with respect to 1971 through 1977 crops.

INAPPLICABILITY OF SECTION

Section inapplicable to 1984 and subsequent crops of extra long

staple cotton, see section 3 of Pub. L. 98-88, set out as a note

under section 1342 of this title.

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section 601(3)(2) of Pub. L. 91-524, as amended by section

1(19)(A) of Pub. L. 93-86, provided that: ''Subdivisions (ii),

(iv), (v), and (vi) of subsection (b) (of this section), the last

sentence of subsection (b) (of this section) and subsections (e)

and (h) (of this section) shall not be applicable to the 1971

through 1977 crops: Provided, That no farm allotment may be sold or

leased for transfer to a farm in another county unless the

Agricultural Stabilization and Conservation Committee established

pursuant to section 8(b) of the Soil Conservation and Domestic

Allotment Act, as amended (16 U.S.C. 590h(b)), for the county from

which such transfers are being made (1) finds that a demand for

such acreage allotments no longer exists in such county and (2)

approves any transfers of allotments to farms outside such

county.''

-CITE-

7 USC Sec. 1345 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1345. Farm marketing quotas; farm marketing excess

-STATUTE-

The farm marketing quota for any crop of cotton shall be the

actual production of the acreage planted to cotton on the farm less

the farm marketing excess. The farm marketing excess shall be the

normal production of that acreage planted to cotton on the farm

which is in excess of the farm acreage allotment: Provided, That

such farm marketing excess shall not be larger than the amount by

which the actual production of cotton on the farm exceeds the

normal production of the farm acreage allotment, if the producer

establishes such actual production to the satisfaction of the

Secretary.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 345, 52 Stat. 58; July 3,

1948, ch. 827, title II, Sec. 205, 62 Stat. 1256; Aug. 29, 1949,

ch. 518, Sec. 1, 63 Stat. 674; Oct. 31, 1949, ch. 792, title IV,

Sec. 415(e), 63 Stat. 1058.)

-MISC1-

AMENDMENTS

1949 - Act Oct. 31, 1949, repealed amendatory provisions of act

July 3, 1948.

Act Aug. 29, 1949, stated what the farm marketing quota shall be

and what the farm marketing excess shall be.

1948 - Act July 3, 1948, changed conditions which must be

determined by Secretary to exist before marketing quotas can be

imposed.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 1984 and subsequent crops of extra long

staple cotton, see section 3 of Pub. L. 98-88, set out as a note

under section 1342 of this title.

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of upland cotton,

see section 502 of Pub. L. 101-624, set out as a note under section

1342 of this title.

Section inapplicable to 1986 through 1990 crops of upland cotton,

see section 502 of Pub. L. 99-198, set out as a note under section

1342 of this title.

Section inapplicable to 1982 through 1985 crops of upland cotton,

see section 501 of Pub. L. 97-98, set out as a note under section

1342 of this title.

Section inapplicable to 1978 through 1981 crops of upland cotton,

see section 601 of Pub. L. 95-113, set out as a note under section

1342 of this title.

Pub. L. 91-524, title VI, Sec. 601(1), Nov. 30, 1970, 84 Stat.

1371, as amended by Pub. L. 93-86, Sec. 1(19)(A), Aug. 10, 1973, 87

Stat. 233, provided that this section is inapplicable to 1971

through 1977 crops of upland cotton.

PROCLAMATIONS AFFIRMED

Effect of act Apr. 7, 1938, ch. 107, 52 Stat. 202, see note set

out under section 1312 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1346, 1349 of this title.

-CITE-

7 USC Sec. 1346 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1346. Penalties

-STATUTE-

(a) Whenever farm marketing quotas are in effect with respect to

any crop of cotton, the producer shall be subject to a penalty on

the farm marketing excess at a rate per pound equal to 50 per

centum of the parity price per pound for cotton as of June 15 of

the calendar year in which such crop is produced.

(b) The farm marketing excess of cotton shall be regarded as

available for marketing and the amount of penalty shall be computed

upon the normal production of the acreage on the farm planted to

cotton in excess of the farm acreage allotment. If a downward

adjustment in the amount of the farm marketing excess is made

pursuant to the proviso in section 1345 of this title, the

difference between the amount of the penalty computed upon the farm

marketing excess before such adjustment and as computed upon the

adjusted farm marketing excess shall be returned to or allowed the

producer.

(c) The person liable for payment or collection of the penalty

shall be liable also for interest thereon at the rate of 6 per

centum per annum from the date the penalty becomes due until the

date of payment of such penalty.

(d) Until the penalty on the farm marketing excess is paid, all

cotton produced on the farm and marketed by the producer shall be

subject to the penalty provided by this section and a lien on the

entire crop of cotton produced on the farm shall be in effect in

favor of the United States.

(e) Notwithstanding any other provision of this chapter, for the

1966 through 1970 crops of upland cotton, if the farm operator

elects to forgo price support for any such crop of cotton by

applying to the county committee of the county in which the farm is

located for additional acreage under this subsection, he may plant

an acreage not in excess of the farm acreage allotment established

under section 1344 of this title plus the acreage apportioned to

the farm from the national export market acreage reserve, and all

cotton of such crop produced on the farm may be marketed for export

free of any penalty under this section: Provided, That the

foregoing shall be applicable only to farms which had upland cotton

allotments for 1965 and are operated by the same operator as in

1965 or by his heir.

For the 1966 crop the national export market acreage reserve

shall be 250,000 acres. For each subsequent crop -

---------------------------------------------------------------------

---------------------------------------------------------------------

If the carryover at the end of The national export market

the marketing year for the acreage reserve shall be -

preceding crop is estimated to

be less than the carryover at

the beginning of such marketing

year by -

At least 1,000,000 bales 250,000 acres.

At least 750,000 bales, but not 187,500 acres.

as much as 1,000,000 bales

At least 500,000 bales, but not 125,000 acres.

as much as 750,000 bales

At least 250,000 bales, but not 62,500 acres.

as much as 500,000 bales

Less than 250,000 bales None.

-------------------------------

The national export market acreage reserve shall be apportioned

to farms by the Secretary on the basis of the applications

therefor. No application shall be accepted for a greater acreage

than is available on the farm for the production of upland cotton.

After apportionments are thus made to farms, the Secretary shall

provide farm operators a reasonable time in which to cancel their

applications (and agreements to forgo price support) and surrender

to the Secretary through the county committee the export market

acreage assigned to the farm. Acreage so surrendered shall be

available for reassignment by the Secretary to other eligible farms

to which export market acreage has been apportioned on the basis of

the applications remaining outstanding. The operator of any farm

who elects to forgo price support for any such crop under this

subsection shall not be eligible for price support on cotton of

such crop produced on any other farm in which he has a controlling

or substantial interest as determined by the Secretary. Acreage

planted to cotton in excess of the farm acreage allotment

established under section 1344 of this title shall not be taken

into account in establishing future State, county, and farm acreage

allotments. The operator of any farm to which export market

acreage is apportioned, or the purchasers of cotton produced on

such farm, shall, under regulations issued by the Secretary,

furnish a bond or other undertaking prescribed by the Secretary,

providing for the exportation, without benefit of any Government

cotton export subsidy and within such time as the Secretary may

specify, of all cotton produced on such farm for such year. The

bond or other undertaking given pursuant to this subsection shall

provide that, upon failure to comply with the terms and conditions

thereof, the person furnishing such bond or other undertaking shall

be liable for liquidated damages in an amount which the Secretary

determines and specifies in such undertaking will approximate the

amount payable on excess cotton under subsection (a) of this

section. The Secretary may, in lieu of the furnishing of a bond or

other undertaking, provide for the payment of an amount equal to

that which would be payable as liquidated damages under such bond

or other undertaking. If such bond or other undertaking is not

furnished, or if payment in lieu thereof is not made as provided

herein, at such time and in the manner required by regulations of

the Secretary, or if the acreage planted to cotton on the farm

exceeds the sum of the farm acreage allotment established under

section 1344 of this title and the acreage apportioned to the farm

from the national export market acreage reserve, the acreage

planted to cotton in excess of the farm acreage allotment

established under section 1344 of this title shall be regarded as

excess acreage for purposes of this section and section 1345 of

this title. Amounts collected by the Secretary under this

subsection shall be remitted to the Commodity Credit Corporation.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 346, 52 Stat. 59; Aug. 29,

1949, ch. 518, Sec. 1, 63 Stat. 674; Pub. L. 89-321, title IV, Sec.

401(2), Nov. 3, 1965, 79 Stat. 1192; Pub. L. 90-559, Sec. 1(2),

Oct. 11, 1968, 82 Stat. 996.)

-MISC1-

AMENDMENTS

1968 - Subsec. (e). Pub. L. 90-559 provided for a one year

extension, substituting ''1966 through 1970'' for ''1966, 1967,

1968, and 1969''.

1965 - Subsec. (e). Pub. L. 89-321 added subsec. (e).

1949 - Act Aug. 29, 1949, amended section generally. Former

provisions of section were covered by section 1345 of this title.

INAPPLICABILITY OF SECTION

Section inapplicable to 1984 and subsequent crops of extra long

staple cotton, see section 3 of Pub. L. 98-88, set out as a note

under section 1342 of this title.

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

Section inapplicable to 1991 through 1995 crops of upland cotton,

see section 502 of Pub. L. 101-624, set out as a note under section

1342 of this title.

Section inapplicable to 1986 through 1990 crops of upland cotton,

see section 502 of Pub. L. 99-198, set out as a note under section

1342 of this title.

Section inapplicable to 1982 through 1985 crops of upland cotton,

see section 501 of Pub. L. 97-98, set out as a note under section

1342 of this title.

Section inapplicable to 1978 through 1981 crops of upland cotton,

see section 601 of Pub. L. 95-113, set out as a note under section

1342 of this title.

Pub. L. 91-524, title VI, Sec. 601(1), Nov. 30, 1970, 84 Stat.

1371, as amended by Pub. L. 93-86, Sec. 1(19)(A), Aug. 10, 1973, 87

Stat. 233, provided that this section is inapplicable to 1971

through 1977 crops of upland cotton.

REMOVAL OF MARKETING PENALTIES ON CERTAIN LONG STAPLE COTTON

Act Jan. 9, 1951, ch. 1215, 64 Stat. 1237, provided that the

marketing penalty provided in this section, shall not be applied to

long staple cotton of the 1950 crop ginned on saw type gins where

such action was necessary to conserve the cotton because of frost

or weather damage.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1349 of this title.

-CITE-

7 USC Sec. 1347 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1347. Repealed. Pub. L. 98-88, Sec. 2, Aug. 26, 1983, 97 Stat.

494

-MISC1-

Section, acts Feb. 16, 1938, ch. 30, title III, Sec. 347, 52

Stat. 59; Aug. 29, 1949, ch. 518, Sec. 1, 63 Stat. 675; July 17,

1952, ch. 933, Sec. 4, 66 Stat. 759; Aug. 28, 1958, Pub. L. 85-835,

title I, Sec. 103(3), 72 Stat. 990; Sept. 21, 1959, Pub. L. 86-341,

title II, Sec. 203, 73 Stat. 611; June 30, 1960, Pub. L. 86-566, 74

Stat. 295; Aug. 11, 1968, Pub. L. 90-475, Sec. 4, 6, 82 Stat. 701,

702, set out a program for long staple cotton. See section 1444(h)

of this title.

EFFECTIVE DATE OF REPEAL

Section 2 of Pub. L. 98-88 provided that the repeal of this

section is effective beginning with 1984 crop of extra long staple

cotton.

-CITE-

7 USC Sec. 1348 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1348. Payments in kind to equalize cost of cotton to domestic

and foreign users; rules and regulations; termination date;

persons eligible; amount; terms and conditions; raw cotton in

inventory

-STATUTE-

In order to maintain and expand domestic consumption of upland

cotton produced in the United States and to prevent discrimination

against the domestic users of such cotton, notwithstanding any

other provision of law, the Commodity Credit Corporation, under

such rules and regulations as the Secretary may prescribe, is

authorized and directed for the period beginning with April 11,

1964 and ending July 31, 1966, to make payments through the

issuance of payment-in-kind certificates to persons other than

producers in such amounts and subject to such terms and conditions

as the Secretary determines will eliminate inequities due to

differences in the cost of raw cotton between domestic and foreign

users of such cotton, including such payments as may be necessary

to make raw cotton in inventory on April 11, 1964 available for

consumption at prices consistent with the purposes of this section:

Provided, That for the period beginning August 1 of the marketing

year for the first crop for which price support is made available

under section 1444(b) of this title, and ending July 31, 1966, such

payments shall be made in an amount which will make upland cotton

produced in the United States available for domestic use at a price

which is not in excess of the price at which such cotton is made

available for export. The Secretary may extend the period for

performance of obligations incurred in connection with payments

made for the period ending July 31, 1966, or may make payments on

raw cotton in inventory on July 31, 1966, at the rate in effect on

such date. No payments shall be made hereunder with respect to

1966 crop cotton.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 348, as added Pub. L.

88-297, title I, Sec. 101, Apr. 11, 1964, 78 Stat. 173; amended

Pub. L. 89-321, title IV, Sec. 401(1), Nov. 3, 1965, 79 Stat.

1192.)

-MISC1-

PRIOR PROVISIONS

A prior section 1348, acts Feb. 16, 1938, ch. 30, title III, Sec.

348, 52 Stat. 59; Aug. 29, 1949, ch. 518, Sec. 1, 63 Stat. 675;

Aug. 28, 1954, ch. 1041, title III, Sec. 311(a), 68 Stat. 904,

prohibited agricultural conservation program payments to any farmer

who knowingly harvested any basic commodity in excess of his

acreage allotment and was repealed by act May 23, 1955, ch. 45, 69

Stat. 65, effective with respect to 1955 and subsequent crops.

AMENDMENTS

1965 - Pub. L. 89-321 authorized Secretary to extend period for

performance of obligations incurred in connection with payments

made for period ending July 31, 1966, or to make payments in raw

cotton in inventory on July 31, 1966.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1344, 1385, 1444 of this

title.

-CITE-

7 USC Sec. 1349 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1349. Export market acreage

-STATUTE-

(a) Supplementary allotments for 1964 and 1965; acreage limitation;

apportionment among States and farms; ''export market acreage''

on any farm; farm acreage allotment for farms with export

acreage; additional allotment; establishment of future

allotments without regard to export acreage; exclusion of

extra-long-staple cotton and farms receiving additional price

support for 1964 and 1965

The acreage allotment established under the provisions of section

1344 of this title for each farm for the 1964 crop may be

supplemented by the Secretary by an acreage equal to such

percentage, but not more than 10 per centum, of such acreage

allotment as he determines will not increase the carryover of

upland cotton at the beginning of the marketing year for the next

succeeding crop above one million bales less than the carryover on

the same date one year earlier, if the carryover on such earlier

date exceeds eight million bales. For the 1965 crop, the Secretary

may, after such hearing and investigation as he finds necessary,

announce an export market acreage which he finds will not increase

the carryover of upland cotton at the beginning of the marketing

year for the next succeeding crop above one million bales less than

the carryover on the same date one year earlier, if the carryover

on such earlier date exceeds eight million bales. Such export

market acreage shall be apportioned to the States on the basis of

the State acreage allotments established under section 1344 of this

title and apportioned by the States to farms receiving allotments

under section 1344 of this title, pursuant to regulations issued by

the Secretary, after considering applications for such acreage

filed with the county committee of the county in which the farm is

located. The ''export market acreage'' on any farm shall be the

number of acres, not exceeding the maximum export market acreage

for the farm established pursuant to this subsection, by which the

acreage planted to cotton on the farm exceeds the farm acreage

allotment. For purposes of sections 1345 and 1374 of this title

and the provisions of any law requiring compliance with a farm

acreage allotment as a condition of eligibility for price support

or payments under any farm program, the farm acreage allotment for

farms with export market acreage shall be the sum of the farm

acreage allotment established under section 1344 of this title and

the maximum export market acreage. Export market acreage shall be

in addition to the county, State, and National acreage allotments

and shall not be taken into account in establishing future State,

county, and farm acreage allotments. The provisions of this

section shall not apply to extra-long-staple cotton or to any farm

which receives price support under section 1444(b) of this title.

(b) Bond, other undertaking, and lieu payments for exportation

without subsidy and within specified period; terms and

conditions; liquidated damages; farm acreage allotment upon

noncompliance with conditions; remissions to CCC for defraying

costs of encouraging export sales of cotton

The producers on any farm on which there is export market acreage

or the purchasers of cotton produced thereon shall, under

regulations issued by the Secretary, furnish a bond or other

undertaking prescribed by the Secretary providing for the

exportation, without benefit of any Government cotton export

subsidy and within such period of time as the Secretary may

specify, of a quantity of cotton produced on the farm equal to the

average yield for the farm multiplied by the export market acreage

as determined pursuant to regulations issued by the Secretary. The

bond or other undertaking given pursuant to this section shall

provide that, upon failure to comply with the terms and conditions

thereof, the person furnishing such bond or other undertaking shall

be liable for liquidated damages in an amount which the Secretary

determines and specifies in such undertaking will approximate the

amount payable on excess cotton under section 1346(a) of this

title. The Secretary may, in lieu of the furnishing of a bond or

other undertaking, provide for the payment of an amount equal to

that which would be payable as liquidated damages under such bond

or other undertaking. If such bond or other undertaking is not

furnished, or if payment in lieu thereof is not made as provided

herein, at such time and in the manner required by regulations of

the Secretary, or if the acreage planted to cotton on the farm

exceeds the farm acreage allotment established under the provisions

of section 1344 of this title by more than the maximum export

market acreage, the farm acreage allotment shall be the acreage so

established under section 1344 of this title. Amounts collected by

the Secretary under this section shall be remitted to the Commodity

Credit Corporation and used by the Corporation to defray costs of

encouraging export sales of cotton under section 1853 (FOOTNOTE 1)

of this title.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 349, as added Pub. L.

88-297, title I, Sec. 106(1), Apr. 11, 1964, 78 Stat. 175.)

-REFTEXT-

REFERENCES IN TEXT

Section 1853 of this title, referred to in subsec. (b), was

repealed by Pub. L. 103-465, title IV, Sec. 412(c), Dec. 8, 1994,

108 Stat. 4964.

-MISC2-

PRIOR PROVISIONS

A prior section 1349, act Feb. 16, 1938, ch. 30, title III, Sec.

349, 52 Stat. 59, was omitted by act Aug. 29, 1949, ch. 518, Sec.

1, 63 Stat. 670 which amended sections 342 to 350 of act Feb. 16,

1938, ch. 30, title III, 52 Stat. 56 to 60 (sections 1342 to 1344,

1345 to 1347, and prior sections 1348 to 1350 of this title) to be

sections 342 to 348 of act Feb. 16, 1938 (sections 1342 to 1344,

1345 to 1347, and a prior section 1348 of this title).

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1376 of this title.

-CITE-

7 USC Sec. 1350 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1350. National base acreage allotment

-STATUTE-

(a) Establishment

The Secretary shall establish for each of the 1971 through 1977

crops of upland cotton a national base acreage allotment. Such

national base acreage allotment shall be announced not later than

November 15 of the calendar year preceding the year for which the

national base acreage allotment is to be effective. The national

base acreage allotment for any crop of cotton shall be the number

of acres which the Secretary determines on the basis of the

expected national yield will produce an amount of cotton equal to

the estimated domestic consumption of cotton (standard bales of

four hundred and eighty pounds net weight) for the marketing year

beginning in the year in which the crop is to be produced, plus not

to exceed 25 per centum thereof if the Secretary, taking into

consideration other actions he may take under the Agricultural Act

of 1970, determines that such additional amount is necessary to

provide for a production which will equal the national cotton

production goal, except that such national base acreage allotment

shall be eleven million five hundred thousand acres for the 1971

crop and in the case of the 1972 through 1977 crops shall be in

such amount as the Secretary determines necessary to maintain

adequate supplies. The national base acreage allotment for the

1974 through 1977 crops shall not be less than eleven million

acres.

(b) Apportionment to States

The national base acreage allotment for each crop of upland

cotton shall be apportioned by the Secretary to the States on the

basis of the acreage planted (including acreage regarded as having

been planted) to upland cotton within the farm acreage allotment or

the farm base acreage allotment, whichever is in effect, during the

five calendar years immediately preceding the calendar year in

which the national cotton production goal is proclaimed, with

adjustments for abnormal weather conditions or other natural

disaster during such period.

(c) Apportionment to counties

The State base acreage allotment for each crop of upland cotton

shall be apportioned to counties on the same basis as to years and

conditions as is applicable to the State under subsection (b) of

this section: Provided, That the State committee may reserve not to

exceed 2 per centum of its State acreage allotment which shall be

used to make adjustments in county allotments for trends in

acreage, for counties adversely affected by abnormal conditions

affecting plantings, or for small or new farms, or to correct

inequities in farm allotments and to prevent hardships.

(d) Adjustment of apportionment bases for counties

The Secretary shall adjust the apportionment base for each county

as may be necessary because of transfers of allotments across

county lines.

(e) Apportionment to farms

(1) The county base acreage allotment for the 1971 crop shall be

apportioned to old cotton farms in the county on the basis of the

domestic acreage allotment established for the farm for the 1970

crop. For the 1972 and each subsequent crop of upland cotton the

county base acreage allotment shall be apportioned to old cotton

farms in the county on the basis of the farm base acreage allotment

established for such farm for the preceding year. The county

committee may reserve not in excess of 10 per centum of the county

allotment which, in addition to the acreage made available under

the proviso in subsection (c) of this section, shall be used for

(A) establishing allotments for farms on which cotton was not

planted (or regarded as planted) during any of the three calendar

years immediately preceding the year for which the allotment is

made, on the basis of land, labor, and equipment available for the

production of cotton, crop-rotation practices, and the soil and

other physical facilities affecting the production of cotton; and

(B) making adjustments of the farm allotments established under

this paragraph so as to establish allotments which are fair and

reasonable in relation to the factors set forth in this paragraph

and abnormal conditions of production on such farms, or in making

adjustments in farm allotments to correct inequities and to prevent

hardships. No part of such reserve shall be apportioned to a farm

to reflect new cropland brought into production after November 30,

1970.

(2) If for any crop the total acreage of cotton planted on a farm

is less than the farm base acreage allotment, the farm base acreage

allotment used as a base for the succeeding crop shall be reduced

by the percentage by which such planted acreage was less than such

farm base acreage allotment, but such reduction shall not exceed 20

per centum of the farm base acreage allotment for the preceding

crop. If not less than 90 per centum of the base acreage allotment

for the farm is planted to cotton, the farm shall be considered to

have an acreage planted to cotton equal to 100 per centum of such

allotment. For purposes of this paragraph, an acreage on the farm

which the Secretary determines was not planted to cotton because of

drought, flood, other natural disaster, or a condition beyond the

control of the producer shall be considered to be an acreage

planted to cotton. For the purpose of this paragraph, the

Secretary shall, in the event producers of wheat or feed grains are

permitted to do so, permit producers of cotton to have acreage

devoted to soybeans, wheat, feed grains, guar, castor beans,

triticale, oats, rye or such other crops as the Secretary may deem

appropriate considered as devoted to the production of cotton to

such extent and subject to such terms and conditions as the

Secretary determines will not impair the effective operation of the

cotton or soybean program.

(3) If no acreage is planted to cotton for any three consecutive

crop years on any farm which had a farm base acreage allotment for

such years, such farm shall lose its base acreage allotment.

(f) Surrender of farm base acreage allotments

Effective for the 1971 through 1977 crops, any part of any farm

base acreage allotment on which upland cotton will not be planted

and which is voluntarily surrendered to the county committee shall

be deducted from the farm base acreage allotment for such farm and

may be reapportioned by the county committee to other farms in the

same county receiving farm base acreage allotments in amounts

determined by the county committee to be fair and reasonable on the

basis of past acreage of upland cotton, land, labor, equipment

available for the production of upland cotton, crop rotation

practices, and soil and other physical facilities affecting the

production of upland cotton. If all of the acreage voluntarily

surrendered is not needed in the county, the county committee may

surrender the excess acreage to the State committee to be used to

make adjustments in farm base acreage allotments for other farms in

the State adversely affected by abnormal conditions affecting

plantings or to correct inequities or to prevent hardship. Any

farm base acreage allotment released under this provision shall be

regarded for the purpose of establishing future farm base acreage

allotments as having been planted on the farm and in the county

where the release was made rather than on the farm and in the

county to which the allotment was transferred: Provided, That,

notwithstanding any other provision of law, any part of any farm

base acreage allotment for any crop year may be permanently

released in writing to the county committee by the owner and

operator of the farm and reapportioned as provided herein. Acreage

released under this subsection shall be credited to the State in

determining future allotments.

(g) Compliance with set-aside requirements

Any farm receiving any base acreage allotment through release and

reapportionment or sale, lease, or transfer shall, as a condition

to the right to receive such allotment, comply with the set-aside

requirements of section 1444(e)(4) of this title applicable to such

acreage as determined by the Secretary.

(h) Transfer of farm base acreage allotments not planted because of

natural disaster or conditions beyond control of producer

Notwithstanding any other provision of this chapter, if the

Secretary determines for any year that because of drought, flood,

other natural disaster, or a condition beyond the control of the

producer a portion of the farm base acreage allotment in a county

cannot be timely planted or replanted in such year, he may

authorize for such year the transfer of all or a part of such

cotton acreage for any farm in the county so affected to another

farm in the county or in any other nearby county on which one or

more of the producers on the farm from which the transfer is to be

made will be engaged in the production of upland cotton and will

share in the proceeds thereof, in accordance with such regulations

as the Secretary may prescribe. Any farm base acreage allotment

transferred under this subsection shall be regarded as planted to

upland cotton on the farm and in the county and State from which

transfer is made for purposes of establishing future farm, county

and State allotments.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 350, as added Pub. L.

88-297, title I, Sec. 105, Apr. 11, 1964, 78 Stat. 175; amended

Pub. L. 89-321, title IV, Sec. 401(3), Nov. 3, 1965, 79 Stat. 1193;

Pub. L. 90-559, Sec. 1(2), Oct. 11, 1968, 82 Stat. 996; Pub. L.

91-524, title VI, Sec. 601(4), Nov. 30, 1970, 84 Stat. 1372; Pub.

L. 93-86, Sec. 1(19) (A), (D)-(G), Aug. 10, 1973, 87 Stat. 233.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1970, referred to in subsec. (a), is Pub.

L. 91-524, Nov. 30, 1970, 84 Stat. 1358, as amended. For complete

classification of this Act to the Code, see Short Title of 1970

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

-MISC2-

PRIOR PROVISIONS

A prior section 1350, act Feb. 16, 1938, ch. 30, title III, Sec.

350, 52 Stat. 60, was omitted by act Aug. 29, 1949, ch. 518, Sec.

1, 63 Stat. 670, which amended sections 342 to 350 of act Feb. 16,

1938, ch. 30, title III, 52 Stat. 56 to 60 (sections 1342 to 1344,

1345 to 1347, and prior sections 1348 to 1350 of this title) to be

sections 342 to 348 of act Feb. 16, 1938 (sections 1342 to 1344,

1345 to 1347, and a prior section 1348 of this title). See section

1347 of this title.

AMENDMENTS

1973 - Subsec. (a). Pub. L. 93-86, Sec. 1(19)(A), (D), (E),

substituted ''1971 through 1977'' for ''1971, 1972, and 1973'' and

''1972 through 1977'' for ''1972 and 1973'' and inserted

requirement that the national base acreage allotment for the 1974

through 1977 crops shall not be less than eleven million acres.

Subsec. (e)(2). Pub. L. 93-86, Sec. 1(19)(F), substituted

''soybeans, wheat, feed grains, guar, castor beans, triticale,

oats, rye or such other crops as the Secretary may deem

appropriate'' for ''soybeans, wheat or feed grains''.

Subsec. (f). Pub. L. 93-86, Sec. 1(19)(A), substituted ''1971

through 1977'' for ''1971, 1972, and 1973''.

Subsec. (h). Pub. L. 93-86, Sec. 1(19)(G), substituted ''to

another farm in the county or in any other nearby county'' for ''to

another farm in the county or in an adjoining county''.

1970 - Pub. L. 91-524 designated existing provisions as subsec.

(a), substituted provisions for the establishment of a national

base acreage allotment covering each of the 1971, 1972, and 1973

crops of upland cotton for provisions authorizing the establishing

of a national domestic allotment for the 1966 through 1970 crops of

upland cotton, and added subsecs. (b) to (h).

1968 - Pub. L. 90-559 provided for a one year extension,

substituting ''1966 through 1970'' for ''1966, 1967, 1968, and

1969''.

1965 - Pub. L. 89-321 extended domestic acreage allotment program

through the 1969 crop and otherwise amended section generally to

authorize establishment of a national domestic allotment for each

crop year equal to the estimated domestic consumption for the

marketing year beginning in year in which crop is to be produced

and to authorize determination of a farm domestic acreage allotment

percentage for each year by dividing national domestic allotment by

total for all States of product of State acreage allotment and the

projected State yield.

EFFECTIVE DATE OF 1973 AMENDMENT

Section 1(19)(E)-(G) of Pub. L. 93-86 provided that the

amendments made by that section are effective beginning with 1974

crop.

EFFECTIVE DATE OF 1970 AMENDMENT

Section 601 of Pub. L. 91-524 provided that the amendment made by

that section is effective beginning with 1971 crop.

EFFECTIVE DATE OF 1965 AMENDMENT

Section 401(3) of Pub. L. 89-321 provided that the amendment made

by that section is effective with 1966 crop.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(1) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(A) of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1344, 1377, 1444 of this

title.

-CITE-

7 USC Sec. 1350a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart iv - marketing quotas - cotton

-HEAD-

Sec. 1350a. Repealed. Pub. L. 96-470, title I, Sec. 102(e), Oct.

19, 1980, 94 Stat. 2237

-MISC1-

Section, Pub. L. 91-524, title VI, Sec. 609, Nov. 30, 1970, 84

Stat. 1378, required Secretary to file annually with President for

transmission to Congress a complete report of programs carried out

under title VI of Pub. L. 91-524.

-CITE-

7 USC subpart v - marketing quotas - rice 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart v - marketing quotas - rice

.

-HEAD-

subpart v - marketing quotas - rice

-CITE-

7 USC Sec. 1351 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart v - marketing quotas - rice

-HEAD-

Sec. 1351. Omitted

-COD-

CODIFICATION

Section, act Feb. 16, 1938, ch. 30, title III, Sec. 351, 52 Stat.

60, set forth the legislative findings relating to rice marketing

quotas pursuant to this subpart and was omitted in view of the

repeal of the remaining sections of the subpart.

-CITE-

7 USC Sec. 1352 to 1356 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart v - marketing quotas - rice

-HEAD-

Sec. 1352 to 1356. Repealed. Pub. L. 97-98, title VI, Sec. 601,

Dec. 22, 1981, 95 Stat. 1242

-MISC1-

Section 1352, acts Feb. 16, 1938, ch. 30, title III, Sec. 352, 52

Stat. 60; Aug. 9, 1955, ch. 648, 69 Stat. 576; Feb. 16, 1976, Pub.

L. 94-214, title I, Sec. 101, 90 Stat. 181; Sept. 29, 1977, Pub. L.

95-113, title VII, Sec. 701, 91 Stat. 940, provided for a national

acreage allotment and allocation for 1976 through 1981 crops of

rice.

Section 1353, acts Feb. 16, 1938, ch. 30, title III, Sec. 353, 52

Stat. 61; Oct. 31, 1949, ch. 792, title IV, Sec. 418(a), 63 Stat.

1059; June 16, 1950, ch. 268, Sec. 1, 2, 64 Stat. 232; Apr. 30,

1955, ch. 29, 69 Stat. 45; Apr. 30, 1955, ch. 30, 69 Stat. 45; May

5, 1955, ch. 31, 69 Stat. 45; Aug. 9, 1955, ch. 652, 69 Stat. 578;

May 28, 1956, ch. 327, title III, Sec. 304, 70 Stat. 205; June 4,

1958, Pub. L. 85-443, Sec. 1, 2(a), (b), 3, 72 Stat. 177; Aug. 28,

1958, Pub. L. 85-835, title III, Sec. 301, 72 Stat. 994; Feb. 16,

1938, ch. 30, title III, Sec. 378(d), as added Aug. 28, 1958, Pub.

L. 85-835, title V, Sec. 501, 72 Stat. 996; Mar. 6, 1962, Pub. L.

87-412, 76 Stat. 20; Jan. 28, 1964, Pub. L. 88-261, 78 Stat. 6;

Nov. 3, 1965, Pub. L. 89-321, title VIII, Sec. 801, 79 Stat. 1212;

Oct. 11, 1968, Pub. L. 90-559, Sec. 1(8), 82 Stat. 996; Apr. 27,

1973, Pub. L. 93-27, 87 Stat. 27, related to allocation of national

acreage allotment.

Section 1354, acts Feb. 16, 1938, ch. 30, title III, Sec. 354, 52

Stat. 61; Oct. 31, 1949, ch. 792, title IV, Sec. 418(a), 63 Stat.

1059; Apr. 4, 1960, Pub. L. 86-408, 74 Stat. 15, related to

proclamation of marketing quotas and referendum by farmers on such

quotas.

Section 1355, acts Feb. 16, 1938, ch. 30, title III, Sec. 355, 52

Stat. 62; July 3, 1948, ch. 827, title II, Sec. 206, 62 Stat. 1256;

Oct. 31, 1949, ch. 792, title IV, Sec. 415(e), 418(a), 63 Stat.

1058, 1059, related to amount of farm marketing quota.

Section 1356, acts Feb. 16, 1938, ch. 30, title III, Sec. 356, 52

Stat. 62; Oct. 31, 1949, ch. 792, title IV, Sec. 418(a), 63 Stat.

1059; June 4, 1958, Pub. L. 85-443, Sec. 4, 72 Stat. 178; Dec. 14,

1967, Pub. L. 90-191, 81 Stat. 578, related to penalties for farm

marketing excess when farm marketing quotas are in effect and to

avoidance or postponement of penalties by storage or other

disposition.

EFFECTIVE DATE OF REPEAL

Section 601 of Pub. L. 97-98 provided that the repeal of sections

1352 to 1356 of this title is effective beginning with the 1982

crop of rice.

-CITE-

7 USC subpart vi - marketing quotas - peanuts 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vi - marketing quotas - peanuts

.

-HEAD-

subpart vi - marketing quotas - peanuts

-CITE-

7 USC Sec. 1357 to 1359a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vi - marketing quotas - peanuts

-HEAD-

Sec. 1357 to 1359a. Repealed. Pub. L. 107-171, title I, Sec.

1309(a)(1), May 13, 2002, 116 Stat. 179

-MISC1-

Section 1357, act Feb. 16, 1938, ch. 30, title III, Sec. 357, as

added Apr. 3, 1941, ch. 39, Sec. 1, 55 Stat. 88, related to

legislative findings concerning peanut marketing quotas.

Section 1358, act Feb. 16, 1938, ch. 30, title III, Sec. 358, as

added Apr. 3, 1941, ch. 39, Sec. 1, 55 Stat. 88; amended July 9,

1942, ch. 497, Sec. 1(1), 56 Stat. 653; July 26, 1946, ch. 677, 60

Stat. 705; Aug. 1, 1947, ch. 445, Sec. 1, 61 Stat. 721; Aug. 29,

1949, ch. 518, Sec. 4, 63 Stat. 676; Mar. 31, 1950, ch. 81, Sec.

6(b), 64 Stat. 43; Apr. 12, 1951, ch. 28, Sec. 1, 65 Stat. 29; Pub.

L. 85-717, Sec. 1, Aug. 21, 1958, 72 Stat. 709; Feb. 16, 1938, ch.

30, title III, Sec. 378(d), as added Pub. L. 85-835, title V, Sec.

501, Aug. 28, 1958, 72 Stat. 996; Pub. L. 92-62, Sec. 1-3, Aug. 3,

1971, 85 Stat. 163, 164; Pub. L. 94-247, Mar. 25, 1976, 90 Stat.

285; Pub. L. 95-113, title VIII, Sec. 801(b), 802, Sept. 29, 1977,

91 Stat. 944; Pub. L. 97-98, title VII, Sec. 702, Dec. 22, 1981, 95

Stat. 1248; Pub. L. 99-157, Sec. 5, Nov. 15, 1985, 99 Stat. 818;

Pub. L. 99-198, title VII, Sec. 702, Dec. 23, 1985, 99 Stat. 1430;

Pub. L. 102-237, title I, Sec. 117(b)(2)(A), Dec. 13, 1991, 105

Stat. 1841, related to national marketing quota for peanuts.

Section 1358-1, act Feb. 16, 1938, ch. 30, title III, Sec. 358-1,

as added Pub. L. 101-624, title VIII, Sec. 802, Nov. 28, 1990, 104

Stat. 3459; amended Pub. L. 102-237, title I, Sec. 117(b)(2)(B),

Dec. 13, 1991, 105 Stat. 1841; Pub. L. 103-66, title I, Sec.

1109(c)(1), Aug. 10, 1993, 107 Stat. 326; Pub. L. 104-127, title I,

Sec. 155(i)(1)(A), (2)-(4)(A), (5), Apr. 4, 1996, 110 Stat.

927-929, related to national poundage quotas and acreage allotments

for peanuts.

Section 1358a, act Feb. 16, 1938, ch. 30, title III, Sec. 358a,

as added Pub. L. 90-211, Dec. 18, 1967, 81 Stat. 658; amended Pub.

L. 91-122, Nov. 21, 1969, 83 Stat. 213; Pub. L. 91-568, Dec. 22,

1970, 84 Stat. 1499; Pub. L. 95-113, title VIII, Sec. 803, Sept.

29, 1977, 91 Stat. 946; Pub. L. 97-98, title VII, Sec. 703, Dec.

22, 1981, 95 Stat. 1251; Pub. L. 99-198, title VII, Sec. 703, Dec.

23, 1985, 99 Stat. 1434; Pub. L. 100-387, title III, Sec.

304(a)(2), Aug. 11, 1988, 102 Stat. 948, related to transfer of

peanut acreage allotments.

Section 1358b, act Feb. 16, 1938, ch. 30, title III, Sec. 358b,

as added Pub. L. 101-624, title VIII, Sec. 803, Nov. 28, 1990, 104

Stat. 3466; amended Pub. L. 102-237, title I, Sec. 122, Dec. 13,

1991, 105 Stat. 1844; Pub. L. 104-127, title I, Sec. 155(i)(1)(B),

(4)(B), (6), Apr. 4, 1996, 110 Stat. 928, 929, related to sale,

lease, or transfer of farm poundage quota for peanuts.

Section 1358c, act Feb. 16, 1938, ch. 30, title III, Sec. 358c,

as added Pub. L. 101-624, title VIII, Sec. 805, Nov. 28, 1990, 104

Stat. 3474; amended Pub. L. 104-127, title I, Sec. 155(i)(1)(C),

Apr. 4, 1996, 110 Stat. 928, related to experimental and research

programs for peanuts.

Section 1359, act Feb. 16, 1938, ch. 30, title III, Sec. 358d,

formerly Sec. 359, as added Apr. 3, 1941, ch. 39, Sec. 1, 55 Stat.

90; amended July 9, 1942, ch. 497, Sec. 1(2), (3), 56 Stat. 653;

Aug. 1, 1947, ch. 445, Sec. 2, 61 Stat. 721; July 3, 1948, ch. 827,

title II, Sec. 207(d), 62 Stat. 1257; Mar. 31, 1950, ch. 81, Sec.

6(a), 64 Stat. 42; Apr. 12, 1951, ch. 28, Sec. 2, 65 Stat. 31; Mar.

28, 1952, ch. 110, 66 Stat. 27; May 28, 1956, ch. 327, title III,

Sec. 305, 306, 70 Stat. 205; Pub. L. 85-127, Aug. 13, 1957, 71

Stat. 344; Pub. L. 85-717, Sec. 2, Aug. 21, 1958, 72 Stat. 709;

Pub. L. 95-113, title VIII, Sec. 804, Sept. 29, 1977, 91 Stat. 946;

Pub. L. 96-31, July 7, 1979, 93 Stat. 81; Pub. L. 97-98, title VII,

Sec. 704, Dec. 22, 1981, 95 Stat. 1251; Pub. L. 99-198, title VII,

Sec. 704, Dec. 23, 1985, 99 Stat. 1435; Pub. L. 101-82, title VI,

Sec. 601, Aug. 14, 1989, 103 Stat. 586; renumbered Sec. 358d and

amended Pub. L. 102-237, title I, Sec. 117(a), (b)(2)(C), Dec. 13,

1991, 105 Stat. 1841, related to peanut marketing penalties.

Section 1359a, act Feb. 16, 1938, ch. 30, title III, Sec. 358e,

formerly Sec. 359a, as added Pub. L. 101-624, title VIII, Sec. 804,

Nov. 28, 1990, 104 Stat. 3467; renumbered Sec. 358e and amended

Pub. L. 102-237, title I, Sec. 117(a), (b)(2)(D), Dec. 13, 1991,

105 Stat. 1841; Pub. L. 103-66, title I, Sec. 1109(c)(2), Aug. 10,

1993, 107 Stat. 326; Pub. L. 103-182, title III, Sec. 321(d)(1)(B),

Dec. 8, 1993, 107 Stat. 2110; Pub. L. 103-465, title IV, Sec.

404(e)(6), Dec. 8, 1994, 108 Stat. 4961; Pub. L. 104-127, title I,

Sec. 155(i)(1)(D), Apr. 4, 1996, 110 Stat. 928, related to

marketing penalties and disposition of additional peanuts.

TREATMENT OF 2001 CROP

For applicability of this subpart, as in effect on the day before

May 13, 2002, with respect to the 2001 crop of peanuts

notwithstanding repeal of this subpart by Pub. L. 107-171, see

section 7959(a)(2) of this title.

-CITE-

7 USC subpart vii - flexible marketing allotments for

sugar 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

.

-HEAD-

subpart vii - flexible marketing allotments for sugar

-COD-

CODIFICATION

Part VII of subtitle B of title III of the Agricultural

Adjustment Act of 1938, comprising this subpart, was originally

added to act Feb. 16, 1938, ch. 30, title III, by Pub. L. 101-624,

title IX, Sec. 902, Nov. 28, 1990, 104 Stat. 3479, and amended Pub.

L. 102-237, title I, Sec. 111(c)-(k), Dec. 13, 1991, 105 Stat.

1830-1836; Pub. L. 102-535, Oct. 27, 1992, 106 Stat. 3526; Pub. L.

103-66, title I, Sec. 1107(b), Aug. 10, 1993, 107 Stat. 324. Part

VII is shown herein, however, as having been added by Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 187, without

reference to those intervening amendments because of the extensive

revision of part VII by Pub. L. 107-171.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in section 7301 of this title.

-CITE-

7 USC Sec. 1359aa 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359aa. Definitions

-STATUTE-

In this subpart:

(1) Mainland State

The term ''mainland State'' means a State other than an

offshore State.

(2) Offshore State

The term ''offshore State'' means a sugarcane producing State

located outside of the continental United States.

(3) State

Notwithstanding section 1301 of this title, the term ''State''

means -

(A) a State;

(B) the District of Columbia; and

(C) the Commonwealth of Puerto Rico.

(4) United States

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

means all of the States.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359a, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 187.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359aa, act Feb. 16, 1938, ch. 30, title III,

Sec. 359a, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3479; amended Pub. L. 102-237, title I, Sec.

111(c), Dec. 13, 1991, 105 Stat. 1830, related to information

reporting with respect to sugar and crystalline fructose marketing

quotas, prior to the general amendment of this subpart by Pub. L.

107-171.

A prior section 359a of act Feb. 16, 1938, was renumbered section

359e and was classified to section 1359a of this title prior to

repeal by Pub. L. 107-171.

-CITE-

7 USC Sec. 1359bb 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359bb. Flexible marketing allotments for sugar

-STATUTE-

(a) Sugar estimates

(1) In general

Not later than August 1 before the beginning of each of the

2002 through 2007 crop years, the Secretary shall estimate -

(A) the quantity of sugar that will be consumed in the United

States during the crop year;

(B) the quantity of sugar that would provide for reasonable

carryover stocks;

(C) the quantity of sugar that will be available from

carry-in stocks for consumption in the United States during the

crop year;

(D) the quantity of sugar that will be available from the

domestic processing of sugarcane and sugar beets; and

(E) the quantity of sugars, syrups, and molasses that will be

imported for human consumption or to be used for the extraction

of sugar for human consumption in the United States during the

crop year, whether such articles are under a tariff-rate quota

or are in excess or outside of a tariff-rate quota.

(2) Exclusion

The estimates under this subsection shall not apply to sugar

imported for the production of polyhydric alcohol or to any sugar

refined and reexported in refined form or in products containing

sugar.

(3) Reestimates

The Secretary shall make reestimates of sugar consumption,

stocks, production, and imports for a crop year as necessary, but

no later than the beginning of each of the second through fourth

quarters of the crop year.

(b) Sugar allotments

(1) In general

By the beginning of each crop year, the Secretary shall

establish for that crop year appropriate allotments under section

1359cc of this title for the marketing by processors of sugar

processed from sugar beets and from domestically produced

sugarcane at a level that the Secretary estimates will result in

no forfeitures of sugar to the Commodity Credit Corporation under

the loan program for sugar established under section 7272 of this

title.

(2) Products

The Secretary may include sugar products, whose majority

content is sucrose for human consumption, derived from sugarcane,

sugar beets, molasses, or sugar in the allotments under paragraph

(1) if the Secretary determines it to be appropriate for purposes

of this subpart.

(c) Prohibitions

(1) In general

During any crop year or portion thereof for which marketing

allotments have been established, no processor of sugar beets or

sugarcane shall market a quantity of sugar in excess of the

allocation established for such processor, except to enable

another processor to fulfill an allocation established for such

other processor or to facilitate the exportation of such sugar.

(2) Civil penalty

Any processor who knowingly violates paragraph (1) shall be

liable to the Commodity Credit Corporation for a civil penalty in

an amount equal to 3 times the United States market value, at the

time of the commission of the violation, of that quantity of

sugar involved in the violation.

(3) Definition of market

For purposes of this subpart, the term ''market'' shall mean to

sell or otherwise dispose of in commerce in the United States

(including the forfeiture of sugar under the loan program for

sugar under section 7272 of this title and, with respect to any

integrated processor and refiner, the movement of raw cane sugar

into the refining process).

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359b, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 188.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359bb, act Feb. 16, 1938, ch. 30, title III,

Sec. 359b, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3480; amended Pub. L. 102-237, title I, Sec.

111(d), Dec. 13, 1991, 105 Stat. 1831; Pub. L. 103-66, title I,

Sec. 1107(b), Aug. 10, 1993, 107 Stat. 324, related to marketing

allotments for sugar and crystalline fructose, prior to the general

amendment of this subpart by Pub. L. 107-171.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1359cc of this title.

-CITE-

7 USC Sec. 1359cc 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359cc. Establishment of flexible marketing allotments

-STATUTE-

(a) In general

The Secretary shall establish flexible marketing allotments for

sugar for any crop year in which the allotments are required under

section 1359bb(b) of this title in accordance with this section.

(b) Overall allotment quantity

(1) In general

The Secretary shall establish the overall quantity of sugar to

be allotted for the crop year (in this subpart referred to as the

''overall allotment quantity'') by deducting from the sum of the

estimated sugar consumption and reasonable carryover stocks (at

the end of the crop year) for the crop year, as determined under

section 1359bb(a) of this title -

(A) 1,532,000 short tons, raw value; and

(B) carry-in stocks of sugar, including sugar in Commodity

Credit Corporation inventory.

(2) Adjustment

The Secretary shall adjust the overall allotment quantity to

avoid the forfeiture of sugar to the Commodity Credit

Corporation.

(c) Marketing allotment for sugar derived from sugar beets and

sugar derived from sugarcane

The overall allotment quantity for the crop year shall be

allotted between -

(1) sugar derived from sugar beets by establishing a marketing

allotment for a crop year at a quantity equal to the product of

multiplying the overall allotment quantity for the crop year by

54.35 percent; and

(2) sugar derived from sugarcane by establishing a marketing

allotment for a crop year at a quantity equal to the product of

multiplying the overall allotment quantity for the crop year by

45.65 percent.

(d) Filling cane sugar and beet sugar allotments

(1) Cane sugar

Each marketing allotment for cane sugar established under this

section may only be filled with sugar processed from domestically

grown sugarcane.

(2) Beet sugar

Each marketing allotment for beet sugar established under this

section may only be filled with sugar domestically processed from

sugar beets.

(e) State cane sugar allotments

(1) In general

The allotment for sugar derived from sugarcane shall be further

allotted, among the States in the United States in which

sugarcane is produced, after a hearing (if requested by the

affected sugarcane processors and growers) and on such notice as

the Secretary by regulation may prescribe, in a fair and

equitable manner as provided in this subsection and section

1359dd(b)(1)(D) of this title.

(2) Offshore allotment

(A) Collectively

Prior to the allotment of sugar derived from sugarcane to any

other State, 325,000 short tons, raw value shall be allotted to

the offshore States.

(B) Individually

The collective offshore State allotment provided for under

subparagraph (A) shall be further allotted among the offshore

States in which sugarcane is produced, after a hearing (if

requested by the affected sugarcane processors and growers) and

on such notice as the Secretary by regulation may prescribe, in

a fair and equitable manner on the basis of -

(i) past marketings of sugar, based on the average of the 2

highest years of production of raw cane sugar from the 1996

through 2000 crops;

(ii) the ability of processors to market the sugar covered

under the allotments for the crop year; and

(iii) past processings of sugar from sugarcane, based on

the 3-year average of the 1998 through 2000 crop years.

(3) Mainland allotment

The allotment for sugar derived from sugarcane, less the amount

provided for under paragraph (2), shall be allotted among the

mainland States in the United States in which sugarcane is

produced, after a hearing (if requested by the affected sugarcane

processors and growers) and on such notice as the Secretary by

regulation may prescribe, in a fair and equitable manner on the

basis of -

(A) past marketings of sugar, based on the average of the 2

highest years of production of raw cane sugar from the 1996

through 2000 crops;

(B) the ability of processors to market the sugar covered

under the allotments for the crop year; and

(C) past processings of sugar from sugarcane, based on the 3

crop years with the greatest processings (in the mainland

States collectively) during the 1991 through 2000 crop years.

(f) Filling cane sugar allotments

Except as provided in section 1359ee of this title, a State cane

sugar allotment established under subsection (e) of this section

for a crop year may be filled only with sugar processed from

sugarcane grown in the State covered by the allotment.

(g) Adjustment of marketing allotments

(1) In general

The Secretary shall, based on reestimates under section

1359bb(a)(3) of this title, adjust upward or downward marketing

allotments in a fair and equitable manner, as the Secretary

determines appropriate, to reflect changes in estimated sugar

consumption, stocks, production, or imports.

(2) Allocation to processors

In the case of any increase or decrease in an allotment, each

allocation to a processor of the allotment under section 1359dd

of this title, and each proportionate share established with

respect to the allotment under section 1359ff(c) of this title,

shall be increased or decreased by the same percentage that the

allotment is increased or decreased.

(3) Carry-over of reductions

Whenever a marketing allotment for a crop year is required to

be reduced during the crop year under this subsection, if, at the

time of the reduction, the quantity of sugar marketed exceeds the

processor's reduced allocation, the allocation of an allotment

next established for the processor shall be reduced by the

quantity of the excess sugar marketed.

(h) Suspension of allotments

Whenever the Secretary estimates or reestimates under section

1359bb(a) of this title, or has reason to believe, that imports of

sugars, syrups or molasses for human consumption or to be used for

the extraction of sugar for human consumption, whether under a

tariff-rate quota or in excess or outside of a tariff-rate quota,

will exceed 1,532,000 short tons (raw value equivalent) (excluding

any imports attributable to reassignment under paragraph (1)(D) or

(2)(C) of section 1359ee(b) of this title), and that the imports

would lead to a reduction of the overall allotment quantity, the

Secretary shall suspend the marketing allotments established under

this section until such time as the imports have been restricted,

eliminated, or reduced to or below the level of 1,532,000 short

tons (raw value equivalent).

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359c, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 189.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359cc, act Feb. 16, 1938, ch. 30, title III,

Sec. 359c, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3481; amended Pub. L. 102-237, title I, Sec.

111(e), Dec. 13, 1991, 105 Stat. 1832, related to establishment of

marketing allotments, prior to the general amendment of this

subpart by Pub. L. 107-171.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1359bb, 1359dd, 1359ff of

this title.

-CITE-

7 USC Sec. 1359dd 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359dd. Allocation of marketing allotments

-STATUTE-

(a) Allocation to processors

Whenever marketing allotments are established for a crop year

under section 1359cc of this title, in order to afford all

interested persons an equitable opportunity to market sugar under

an allotment, the Secretary shall allocate each such allotment

among the processors covered by the allotment.

(b) Hearing and notice

(1) Cane sugar

(A) In general

The Secretary shall make allocations for cane sugar after a

hearing, if requested by the affected sugarcane processors and

growers, and on such notice as the Secretary by regulation may

prescribe, in such manner and in such quantities as to provide

a fair, efficient, and equitable distribution of the

allocations under this paragraph. Each such allocation shall

be subject to adjustment under section 1359cc(g) of this title.

(B) Multiple processor States

Except as provided in subparagraphs (C) and (D), the

Secretary shall allocate the allotment for cane sugar among

multiple cane sugar processors in a single State based on -

(i) past marketings of sugar, based on the average of the 2

highest years of production of raw cane sugar from among the

1996 through 2000 crops;

(ii) the ability of processors to market sugar covered by

that portion of the allotment allocated for the crop year;

and

(iii) past processings of sugar from sugarcane, based on

the average of the 3 highest years of production during the

1996 through 2000 crop years.

(C) Talisman processing facility

In the case of allotments under subparagraph (B) attributable

to the operations of the Talisman processing facility before

May 13, 2002, the Secretary shall allocate the allotment among

processors in the State under subparagraph (A) in accordance

with the agreements of March 25 and 26, 1999, between the

affected processors and the Secretary of the Interior.

(D) Proportionate share States

In the case of States subject to section 1359ff(c) of this

title, the Secretary shall allocate the allotment for cane

sugar among multiple cane sugar processors in a single State

based on -

(i) past marketings of sugar, based on the average of the 2

highest years of production of raw cane sugar from among the

1997 through 2001 crop years;

(ii) the ability of processors to market sugar covered by

that portion of the allotments allocated for the crop year;

and

(iii) past processings of sugar from sugarcane, based on

the average of the 2 highest crop years of crop production

during the 1997 through 2001 crop years.

(E) New entrants

(i) In general

Notwithstanding subparagraphs (B) and (D), the Secretary,

on application of any processor that begins processing

sugarcane on or after May 13, 2002, and after a hearing (if

requested by the affected sugarcane processors and growers)

and on such notice as the Secretary by regulation may

prescribe, may provide the processor with an allocation that

provides a fair, efficient and equitable distribution of the

allocations from the allotment for the State in which the

processor is located.

(ii) Proportionate share States

In the case of proportionate share States, the Secretary

shall establish proportionate shares in a quantity sufficient

to produce the sugarcane required to satisfy the allocations.

(iii) Limitations

The allotment for a new processor under this subparagraph

shall not exceed -

(I) in the case of the first crop year of operation of a

new processor, 50,000 short tons (raw value); and

(II) in the case of each subsequent crop year of

operation of the new processor, a quantity established by

the Secretary in accordance with this subparagraph and the

criteria described in subparagraph (B) or (D), as

applicable.

(iv) New entrant States

(I) In general

Notwithstanding subparagraphs (A) and (C) of section

1359cc(e)(3) of this title, to accommodate an allocation

under clause (i) to a new processor located in a new

entrant mainland State, the Secretary shall provide the new

entrant mainland State with an allotment.

(II) Effect on other allotments

The allotment to any new entrant mainland State shall be

subtracted, on a pro rata basis, from the allotments

otherwise allotted to each mainland State under section

1359cc(e)(3) of this title.

(v) Adverse effects

Before providing an initial processor allocation or State

allotment to a new entrant processor or a new entrant State

under this subparagraph, the Secretary shall take into

consideration any adverse effects that the provision of the

allocation or allotment may have on existing cane processors

and producers in mainland States.

(vi) Ability to market

Consistent with section 1359cc of this title and this

section, any processor allocation or State allotment made to

a new entrant processor or to a new entrant State under this

subparagraph shall be provided only after the applicant

processor, or the applicable processors in the State, have

demonstrated the ability to process, produce, and market

(including the transfer or delivery of the raw cane sugar to

a refinery for further processing or marketing) raw cane

sugar for the crop year for which the allotment is

applicable.

(vii) Prohibition

Not more than 1 processor allocation provided under this

subparagraph may be applicable to any individual sugar

processing facility.

(F) Transfer of ownership

Except as otherwise provided in section 1359ff(c)(8) of this

title, if a sugarcane processor is sold or otherwise

transferred to another owner or is closed as part of an

affiliated corporate group processing consolidation, the

Secretary shall transfer the allotment allocation for the

processor to the purchaser, new owner, successor in interest,

or any remaining processor of an affiliated entity, as

applicable, of the processor.

(2) Beet sugar

(A) In general

Except as otherwise provided in this paragraph and sections

1359cc(g), 1359ee(b), and 1359ff(b) of this title, the

Secretary shall make allocations for beet sugar among beet

sugar processors for each crop year that allotments are in

effect on the basis of the adjusted weighted average quantity

of beet sugar produced by the processors for each of the 1998

through 2000 crop years, as determined under this paragraph.

(B) Quantity

The quantity of an allocation made for a beet sugar processor

for a crop year under subparagraph (A) shall bear the same

ratio to the quantity of allocations made for all beet sugar

processors for the crop year as the adjusted weighted average

quantity of beet sugar produced by the processor (as determined

under subparagraphs (C) and (D)) bears to the total of the

adjusted weighted average quantities of beet sugar produced by

all processors (as so determined).

(C) Weighted average quantity

Subject to subparagraph (D), the weighted quantity of beet

sugar produced by a beet sugar processor during each of the

1998 through 2000 crop years shall be (as determined by the

Secretary) -

(i) in the case of the 1998 crop year, 25 percent of the

quantity of beet sugar produced by the processor during the

crop year;

(ii) in the case of the 1999 crop year, 35 percent of the

quantity of beet sugar produced by the processor during the

crop year; and

(iii) in the case of the 2000 crop year, 40 percent of the

quantity of beet sugar produced by the processor (including

any quantity of sugar received from the Commodity Credit

Corporation) during the crop year.

(D) Adjustments

(i) In general

The Secretary shall adjust the weighted average quantity of

beet sugar produced by a beet sugar processor during the 1998

through 2000 crop years under subparagraph (C) if the

Secretary determines that the processor -

(I) during the 1996 through 2000 crop years, opened a

sugar beet processing factory;

(II) during the 1998 through 2000 crop years, closed a

sugar beet processing factory;

(III) during the 1998 through 2000 crop years,

constructed a molasses desugarization facility; or

(IV) during the 1998 through 2000 crop years, suffered

substantial quality losses on sugar beets stored during any

such crop year.

(ii) Quantity

The quantity of beet sugar produced by a beet sugar

processor under subparagraph (C) shall be -

(I) in the case of a processor that opened a sugar beet

processing factory, increased by 1.25 percent of the total

of the adjusted weighted average quantities of beet sugar

produced by all processors during the 1998 through 2000

crop years (without consideration of any adjustment under

this subparagraph) for each sugar beet processing factory

that is opened by the processor;

(II) in the case of a processor that closed a sugar beet

processing factory, decreased by 1.25 percent of the total

of the adjusted weighted average quantities of beet sugar

produced by all processors during the 1998 through 2000

crop years (without consideration of any adjustment under

this subparagraph) for each sugar beet processing factory

that is closed by the processor;

(III) in the case of a processor that constructed a

molasses desugarization facility, increased by 0.25 percent

of the total of the adjusted weighted average quantities of

beet sugar produced by all processors during the 1998

through 2000 crop years (without consideration of any

adjustment under this subparagraph) for each molasses

desugarization facility that is constructed by the

processor; and

(IV) in the case of a processor that suffered substantial

quality losses on stored sugar beets, increased by 1.25

percent of the total of the adjusted weighted average

quantities of beet sugar produced by all processors during

the 1998 through 2000 crop years (without consideration of

any adjustment under this subparagraph).

(E) Permanent termination of operations of a processor

If a processor of beet sugar has been dissolved, liquidated

in a bankruptcy proceeding, or otherwise has permanently

terminated operations (other than in conjunction with a sale or

other disposition of the processor or the assets of the

processor), the Secretary shall -

(i) eliminate the allocation of the processor provided

under this section; and

(ii) distribute the allocation to other beet sugar

processors on a pro rata basis.

(F) Sale of all assets of a processor to another processor

If a processor of beet sugar (or all of the assets of the

processor) is sold to another processor of beet sugar, the

Secretary shall transfer the allocation of the seller to the

buyer unless the allocation has been distributed to other sugar

beet processors under subparagraph (E).

(G) Sale of factories of a processor to another processor

(i) In general

Subject to subparagraphs (E) and (F), if 1 or more

factories of a processor of beet sugar (but not all of the

assets of the processor) are sold to another processor of

beet sugar during a crop year, the Secretary shall assign a

pro rata portion of the allocation of the seller to the

allocation of the buyer to reflect the historical

contribution of the production of the sold factory or

factories to the total allocation of the seller.

(ii) Application of allocation

The assignment of the allocation under clause (i) shall

apply -

(I) during the remainder of the crop year during which

the sale described in clause (i) occurs (referred to in

this subparagraph as the ''initial crop year''); and

(II) each subsequent crop year (referred in this

subparagraph as a ''subsequent crop year''), subject to

clause (iii).

(iii) Subsequent crop years

(I) In general

The assignment of the allocation under clause (i) shall

apply during each subsequent crop year unless the acquired

factory or factories continue in operation for less than

the initial crop year and the first subsequent crop year.

(II) Reassignment

If the acquired factory or factories do not continue in

operation for the complete initial crop year and the first

subsequent crop year, the Secretary shall reassign the

temporary allocation to other processors of beet sugar on a

pro rata basis.

(iv) Use of other factories to fill allocation

If the transferred allocation to the buyer for the

purchased factory or factories cannot be filled by the

production of the purchased factory or factories for the

initial crop year or a subsequent crop year, the remainder of

the transferred allocation may be filled by beet sugar

produced by the buyer from other factories of the buyer.

(H) New entrants starting production or reopening factories

(i) In general

Except as provided by clause (ii), if an individual or

entity that does not have an allocation of beet sugar under

this subpart (referred to in this paragraph as a ''new

entrant'') starts processing sugar beets after May 13, 2002,

or acquires and reopens a factory that produced beet sugar

during previous crop years that (at the time of acquisition)

has no allocation associated with the factory under this

subpart, the Secretary shall -

(I) assign an allocation for beet sugar to the new

entrant that provides a fair and equitable distribution of

the allocations for beet sugar; and

(II) reduce the allocations for beet sugar of all other

processors on a pro rata basis to reflect the new

allocation.

(ii) Exception

If a new entrant acquires and reopens a factory that

previously produced beet sugar from sugar beets and from

sugar beet molasses but the factory last processed sugar

beets during the 1997 crop year and the new entrant starts to

process sugar beets at such factory after May 13, 2002, the

Secretary shall -

(I) assign an allocation for beet sugar to the new

entrant that is not less than the greater of 1.67 percent

of the total of the adjusted weighted average quantities of

beet sugar produced by all processors during the 1998

through 2000 crop years as determined under subsection

(b)(2)(C) of this section, or 1,500,000 hundredweights; and

(II) reduce the allocations for beet sugar of all other

processors on a pro rata basis to reflect the new

allocation.

(I) New entrants acquiring ongoing factories with production

history

If a new entrant acquires a factory that has production

history during the period of the 1998 through 2000 crop years

and that is producing beet sugar at the time the allocations

are made from a processor that has an allocation of beet sugar,

the Secretary shall transfer a portion of the allocation of the

seller to the new entrant to reflect the historical

contribution of the production of the sold factory to the total

allocation of the seller.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359d, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 191.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359dd, act Feb. 16, 1938, ch. 30, title III,

Sec. 359d, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3483; amended Pub. L. 102-237, title I, Sec.

111(f), Dec. 13, 1991, 105 Stat. 1833, related to allocation of

marketing allotments, prior to the general amendment of this

subpart by Pub. L. 107-171.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1359cc, 1359ff, 1359gg,

1359ii of this title.

-CITE-

7 USC Sec. 1359ee 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359ee. Reassignment of deficits

-STATUTE-

(a) Estimates of deficits

At any time allotments are in effect under this subpart, the

Secretary, from time to time, shall determine whether (in view of

then-current inventories of sugar, the estimated production of

sugar and expected marketings, and other pertinent factors) any

processor of sugarcane will be unable to market the sugar covered

by the portion of the State cane sugar allotment allocated to the

processor and whether any processor of sugar beets will be unable

to market sugar covered by the portion of the beet sugar allotment

allocated to the processor.

(b) Reassignment of deficits

(1) Cane sugar

If the Secretary determines that any sugarcane processor who

has been allocated a share of a State cane sugar allotment will

be unable to market the processor's allocation of the State's

allotment for the crop year -

(A) the Secretary first shall reassign the estimated quantity

of the deficit to the allocations for other processors within

that State, depending on the capacity of each other processor

to fill the portion of the deficit to be assigned to it and

taking into account the interests of producers served by the

processors;

(B) if after the reassignments the deficit cannot be

completely eliminated, the Secretary shall reassign the

estimated quantity of the deficit proportionately to the

allotments for other cane sugar States, depending on the

capacity of each other State to fill the portion of the deficit

to be assigned to it, with the reassigned quantity to each

State to be allocated among processors in that State in

proportion to the allocations of the processors;

(C) if after the reassignments the deficit cannot be

completely eliminated, the Secretary shall reassign the

estimated quantity of the deficit to the Commodity Credit

Corporation and shall sell such quantity of sugar from

inventories of the Corporation unless the Secretary determines

that such sales would have a significant effect on the price of

sugar; and

(D) if after the reassignments and sales, the deficit cannot

be completely eliminated, the Secretary shall reassign the

remainder to imports.

(2) Beet sugar

If the Secretary determines that a sugar beet processor who has

been allocated a share of the beet sugar allotment will be unable

to market that allocation -

(A) the Secretary first shall reassign the estimated quantity

of the deficit to the allotments for other sugar beet

processors, depending on the capacity of each other processor

to fill the portion of the deficit to be assigned to it and

taking into account the interests of producers served by the

processors;

(B) if after the reassignments the deficit cannot be

completely eliminated, the Secretary shall reassign the

estimated quantity of the deficit to the Commodity Credit

Corporation and shall sell such quantity of sugar from

inventories of the Corporation unless the Secretary determines

that such sales would have a significant effect on the price of

sugar; and

(C) if after the reassignments and sales, the deficit cannot

be completely eliminated, the Secretary shall reassign the

remainder to imports.

(3) Corresponding increase

The allocation of each processor receiving a reassigned

quantity of an allotment under this subsection for a crop year

shall be increased to reflect the reassignment.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359e, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 197.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359ee, act Feb. 16, 1938, ch. 30, title III,

Sec. 359e, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3484; amended Pub. L. 102-237, title I, Sec.

111(g), Dec. 13, 1991, 105 Stat. 1833, related to reassignment of

sugar deficits, prior to the general amendment of this subpart by

Pub. L. 107-171.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1359cc, 1359dd of this

title.

-CITE-

7 USC Sec. 1359ff 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359ff. Provisions applicable to producers

-STATUTE-

(a) Processor assurances

(1) In general

If allotments for a crop year are allocated to processors under

section 1359dd of this title, the Secretary shall obtain from the

processors such assurances as the Secretary considers adequate

that the allocation will be shared among producers served by the

processor in a fair and equitable manner that adequately reflects

producers' production histories.

(2) Arbitration

(A) In general

Any dispute between a processor and a producer, or group of

producers, with respect to the sharing of the allocation to the

processor shall be resolved through arbitration by the

Secretary on the request of either party.

(B) Period

The arbitration shall, to the maximum extent practicable, be

-

(i) commenced not more than 45 days after the request; and

(ii) completed not more than 60 days after the request.

(b) Sugar beet processing facility closures

(1) In general

If a sugar beet processing facility is closed and the sugar

beet growers that previously delivered beets to the facility

elect to deliver their beets to another processing company, the

growers may petition the Secretary to modify allocations under

this subpart to allow the delivery.

(2) Increased allocation for processing company

The Secretary may increase the allocation to the processing

company to which the growers elect to deliver their sugar beets,

with the approval of the processing company, to a level that does

not exceed the processing capacity of the processing company, to

accommodate the change in deliveries.

(3) Decreased allocation for closed company

The increased allocation shall be deducted from the allocation

to the company that owned the processing facility that has been

closed and the remaining allocation shall be unaffected.

(4) Timing

The determinations of the Secretary on the issues raised by the

petition shall be made within 60 days after the filing of the

petition.

(c) Proportionate shares of certain allotments

(1) In general

(A) States affected

In any case in which a State allotment is established under

section 1359cc(f) of this title and there are in excess of 250

sugarcane producers in the State (other than Puerto Rico), the

Secretary shall make a determination under subparagraph (B).

(B) Determination

The Secretary shall determine, for each State allotment

described in subparagraph (A), whether the production of

sugarcane, in the absence of proportionate shares, will be

greater than the quantity needed to enable processors to fill

the allotment and provide a normal carryover inventory of

sugar.

(2) Establishment of proportionate shares

If the Secretary determines under paragraph (1) that the

quantity of sugarcane produced by producers in the area covered

by a State allotment for a crop year will be in excess of the

quantity needed to enable processors to fill the allotment for

the crop year and provide a normal carryover inventory of sugar,

the Secretary shall establish a proportionate share for each

sugarcane-producing farm that limits the acreage of sugarcane

that may be harvested on the farm for sugar or seed during the

crop year the allotment is in effect as provided in this

subsection. Each such proportionate share shall be subject to

adjustment under paragraph (7) and section 1359cc(g) of this

title.

(3) Method of determining

For purposes of determining proportionate shares for any crop

of sugarcane:

(A) The Secretary shall establish the State's per-acre yield

goal for a crop of sugarcane at a level (not less than the

average per-acre yield in the State for the 2 highest years

from among the 1999, 2000, and 2001 crop years, as determined

by the Secretary) that will ensure an adequate net return per

pound to producers in the State, taking into consideration any

available production research data that the Secretary considers

relevant.

(B) The Secretary shall adjust the per-acre yield goal by the

average recovery rate of sugar produced from sugarcane by

processors in the State.

(C) The Secretary shall convert the State allotment for the

crop year involved into a State acreage allotment for the crop

by dividing the State allotment by the per-acre yield goal for

the State, as established under subparagraph (A) and as further

adjusted under subparagraph (B).

(D) The Secretary shall establish a uniform reduction

percentage for the crop by dividing the State acreage

allotment, as determined for the crop under subparagraph (C),

by the sum of all adjusted acreage bases in the State, as

determined by the Secretary.

(E) The uniform reduction percentage for the crop, as

determined under subparagraph (D), shall be applied to the

acreage base for each sugarcane-producing farm in the State to

determine the farm's proportionate share of sugarcane acreage

that may be harvested for sugar or seed.

(4) Acreage base

For purposes of this subsection, the acreage base for each

sugarcane-producing farm shall be determined by the Secretary, as

follows:

(A) The acreage base for any farm shall be the number of

acres that is equal to the average of the acreage planted and

considered planted for harvest for sugar or seed on the farm in

the 2 highest of the 1999, 2000, and 2001 crop years.

(B) Acreage planted to sugarcane that producers on a farm

were unable to harvest to sugarcane for sugar or seed because

of drought, flood, other natural disaster, or other condition

beyond the control of the producers may be considered as

harvested for the production of sugar or seed for purposes of

this paragraph.

(5) Violation

(A) In general

Whenever proportionate shares are in effect in a State for a

crop of sugarcane, producers on a farm shall not knowingly

harvest, or allow to be harvested, for sugar or seed an acreage

of sugarcane in excess of the farm's proportionate share for

the crop year, or otherwise violate proportionate share

regulations issued by the Secretary under section 1359hh(a) of

this title.

(B) Determination of violation

No producer shall be considered to have violated subparagraph

(A) unless the processor of the sugarcane harvested by such

producer from acreage in excess of the proportionate share of

the farm markets an amount of sugar that exceeds the allocation

of such processor for a crop year.

(C) Civil penalty

Any producer on a farm who violates subparagraph (A) by

knowingly harvesting, or allowing to be harvested, an acreage

of sugarcane in excess of the farm's proportionate share shall

be liable to the Commodity Credit Corporation for a civil

penalty equal to one and one-half times the United States

market value of the quantity of sugar that is marketed by the

processor of such sugarcane in excess of the allocation of such

processor for the crop year. The Secretary shall prorate

penalties imposed under this subparagraph in a fair and

equitable manner among all the producers of sugarcane harvested

from excess acreage that is acquired by such processor.

(6) Waiver

Notwithstanding the preceding subparagraph, the Secretary may

authorize the county and State committees established under

section 590h(b) of title 16 to waive or modify deadlines and

other proportionate share requirements in cases in which lateness

or failure to meet the other requirements does not affect

adversely the operation of proportionate shares.

(7) Adjustments

Whenever the Secretary determines that, because of a natural

disaster or other condition beyond the control of producers that

adversely affects a crop of sugarcane subject to proportionate

shares, the amount of sugarcane produced by producers subject to

the proportionate shares will not be sufficient to enable

processors in the State to meet the State's cane sugar allotment

and provide a normal carryover inventory of sugar, the Secretary

may uniformly allow producers to harvest an amount of sugarcane

in excess of their proportionate share, or suspend proportionate

shares entirely, as necessary to enable processors to meet the

State allotment and provide a normal carryover inventory of

sugar.

(8) Processing facility closures

(A) In general

If a sugarcane processing facility subject to this subsection

is closed and the sugarcane growers that delivered sugarcane to

the facility prior to closure elect to deliver their sugarcane

to another processing company, the growers may petition the

Secretary to modify allocations under this subpart to allow the

delivery.

(B) Increased allocation for processing company

The Secretary may increase the allocation to the processing

company to which the growers elect to deliver the sugarcane,

with the approval of the processing company, to a level that

does not exceed the processing capacity of the processing

company, to accommodate the change in deliveries.

(C) Decreased allocation for closed company

The increased allocation shall be deducted from the

allocation to the company that owned the processing facility

that has been closed and the remaining allocation shall be

unaffected.

(D) Timing

The determinations of the Secretary on the issues raised by

the petition shall be made within 60 days after the filing of

the petition.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359f, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 198.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359ff, act Feb. 16, 1938, ch. 30, title III,

Sec. 359f, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3484; amended Pub. L. 102-237, title I, Sec.

111(h), Dec. 13, 1991, 105 Stat. 1834; Pub. L. 102-535, Oct. 27,

1992, 106 Stat. 3526, related to provisions applicable to

producers, prior to the general amendment of this subpart by Pub.

L. 107-171.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1359cc, 1359dd, 1359gg,

1359ii of this title.

-CITE-

7 USC Sec. 1359gg 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359gg. Special rules

-STATUTE-

(a) Transfer of acreage base history

For the purpose of establishing proportionate shares for

sugarcane farms under section 1359ff(c) of this title, the

Secretary, on application of any producer, with the written consent

of all owners of a farm, may transfer the acreage base history of

the farm to any other parcels of land of the applicant.

(b) Preservation of acreage base history

If for reasons beyond the control of a producer on a farm, the

producer is unable to harvest an acreage of sugarcane for sugar or

seed with respect to all or a portion of the proportionate share

established for the farm under section 1359ff(c) of this title, the

Secretary, on the application of the producer and with the written

consent of all owners of the farm, may preserve for a period of not

more than 5 consecutive years the acreage base history of the farm

to the extent of the proportionate share involved. The Secretary

may permit the proportionate share to be redistributed to other

farms, but no acreage base history for purposes of establishing

acreage bases shall accrue to the other farms by virtue of the

redistribution of the proportionate share.

(c) Revisions of allocations and proportionate shares

The Secretary, after such notice as the Secretary by regulation

may prescribe, may revise or amend any allocation of a marketing

allotment under section 1359dd of this title, or any proportionate

share established or adjusted for a farm under section 1359ff(c) of

this title, on the same basis as the initial allocation or

proportionate share was required to be established.

(d) Transfers of mill allocations

(1) Transfer authorized

A producer in a proportionate share State, upon written consent

from all crop-share owners (or the representative of the

crop-share owners) of a farm, and from the processing company

holding the applicable allocation for such shares, may deliver

sugarcane to another processing company if the additional

delivery, when combined with such other processing company's

existing deliveries, does not exceed the processing capacity of

the company.

(2) Allocation adjustment

Notwithstanding section 1359dd of this title, the Secretary

shall adjust the allocations of each of such processing companies

affected by a transfer under paragraph (1) to reflect the change

in deliveries, based on the product of -

(A) the number of acres of proportionate shares being

transferred; and

(B) the State's per acre yield goal established under section

1359ff(c)(3) of this title.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359g, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 201.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359gg, act Feb. 16, 1938, ch. 30, title III,

Sec. 359g, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3486; amended Pub. L. 102-237, title I, Sec.

111(i), Dec. 13, 1991, 105 Stat. 1835, related to special rules,

prior to the general amendment of this subpart by Pub. L. 107-171.

-CITE-

7 USC Sec. 1359hh 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359hh. Regulations; violations; publication of Secretary's

determinations; jurisdiction of the courts; United States

attorneys

-STATUTE-

(a) Regulations

The Secretary or the Commodity Credit Corporation, as

appropriate, shall issue such regulations as may be necessary to

carry out the authority vested in the Secretary in administering

this subpart.

(b) Violation

Any person knowingly violating any regulation of the Secretary

issued under subsection (a) of this section shall be subject to a

civil penalty of not more than $5,000 for each violation.

(c) Publication in Federal Register

Each determination issued by the Secretary to establish, adjust,

or suspend allotments under this subpart shall be promptly

published in the Federal Register and shall be accompanied by a

statement of the reasons for the determination.

(d) Jurisdiction of courts; United States attorneys

(1) Jurisdiction of courts

The several district courts of the United States are vested

with jurisdiction specifically to enforce, and to prevent and

restrain any person from violating, this subpart or any

regulation issued thereunder.

(2) United States attorneys

Whenever the Secretary shall so request, it shall be the duty

of the several United States attorneys, in their respective

districts, to institute proceedings to enforce the remedies and

to collect the penalties provided for in this subpart. The

Secretary may elect not to refer to a United States attorney any

violation of this subpart or regulation when the Secretary

determines that the administration and enforcement of this

subpart would be adequately served by written notice or warning

to any person committing the violation.

(e) Nonexclusivity of remedies

The remedies and penalties provided for in this subpart shall be

in addition to, and not exclusive of, any remedies or penalties

existing at law or in equity.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359h, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 202.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359hh, act Feb. 16, 1938, ch. 30, title III,

Sec. 359h, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3486; amended Pub. L. 102-237, title I, Sec.

111(j), Dec. 13, 1991, 105 Stat. 1836, related to regulations,

violations, publication of Secretary's determinations, jurisdiction

of courts, and United States attorneys, prior to the general

amendment of this subpart by Pub. L. 107-171.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1359ff of this title.

-CITE-

7 USC Sec. 1359ii 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359ii. Appeals

-STATUTE-

(a) In general

An appeal may be taken to the Secretary from any decision under

section 1359dd of this title establishing allocations of marketing

allotments, or under section 1359ff of this title, by any person

adversely affected by reason of any such decision.

(b) Procedure

(1) Notice of appeal

Any such appeal shall be taken by filing with the Secretary,

within 20 days after the decision complained of is effective,

notice in writing of the appeal and a statement of the reasons

therefor. Unless a later date is specified by the Secretary as

part of the Secretary's decision, the decision complained of

shall be considered to be effective as of the date on which

announcement of the decision is made. The Secretary shall

deliver a copy of any notice of appeal to each person shown by

the records of the Secretary to be adversely affected by reason

of the decision appealed, and shall at all times thereafter

permit any such person to inspect and make copies of appellant's

reasons for the appeal and shall on application permit the person

to intervene in the appeal.

(2) Hearing

The Secretary shall provide each appellant an opportunity for a

hearing before an administrative law judge in accordance with

sections 554 and 556 of title 5. The expenses for conducting the

hearing shall be reimbursed by the Commodity Credit Corporation.

(c) Special appeal process regarding beet sugar allocations

(1) Appeal authorized

Beginning after the 2006 crop year, a processor that has an

allocation of the beet sugar allotment under this subpart

(referred to in this subsection as a ''petitioner'') may file a

notice of appeal with the Secretary regarding the petitioner's

beet sugar allocation. Except as provided in paragraph (2), the

Secretary shall consider the appeal if the notice alleges that

any processor that has a beet sugar allocation has failed to fill

at least 82.5 percent of its allocation of the beet sugar

allotment with sugar produced by it or received from the

Commodity Credit Corporation in 2 out of the 3 crop years

preceding the crop year in which the appeal is filed. A

processor that is alleged to have failed to fill at least 82.5

percent of its allocation shall be allowed to fully participate

in the appeal.

(2) Exceptions

An appeal under paragraph (1) shall not be based on the failure

of a processor to fill at least 82.5 percent of its allocation

because of drought, flood, hail, or other weather disaster, as

determined by the Secretary. The determination by the Secretary

shall not require a formal disaster declaration.

(3) Response to appeal

Upon the petitioner making an appeal to the Secretary, and upon

a review by the Secretary of how processors have filled their

allocations, the Secretary may -

(A) assign an increased allocation for beet sugar to the

petitioner that provides a fair and equitable distribution of

the allocations for beet sugar, taking into account -

(i) production history during the period beginning on April

4, 1996, and through May 13, 2002;

(ii) capital investment during that period;

(iii) increases in United States sugar consumption; and

(iv) the ability or inability of processors to fill the

allocations they have received under this subpart; and

(B) reduce, correspondingly, the allocation for beet sugar of

each processor determined to have failed to fill at least 82.5

percent of its allocation of the beet sugar allotment as

described in paragraph (1).

(4) Filing deadline

For purposes of the filing deadline specified in subsection

(b)(1) of this section, the 20-day period shall commence on the

date on which the Secretary announces the allocations for the

subsequent crop year or October 1, whichever is earlier.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359i, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 202.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359ii, act Feb. 16, 1938, ch. 30, title III,

Sec. 359i, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3487; amended Pub. L. 102-237, title I, Sec.

111(k), Dec. 13, 1991, 105 Stat. 1836, related to appeals, prior to

the general amendment of this subpart by Pub. L. 107-171.

-CITE-

7 USC Sec. 1359jj 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359jj. Administration

-STATUTE-

(a) Use of certain agencies

In carrying out this subpart, the Secretary may use the services

of local committees of sugar beet or sugarcane producers, sugarcane

processors, or sugar beet processors, State and county committees

established under section 590h(b) of title 16, and the departments

and agencies of the United States Government.

(b) Use of Commodity Credit Corporation

The Secretary shall use the services, facilities, funds, and

authorities of the Commodity Credit Corporation to carry out this

subpart.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359j, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 203.)

-MISC1-

PRIOR PROVISIONS

A prior section 1359jj, act Feb. 16, 1938, ch. 30, title III,

Sec. 359j, as added Pub. L. 101-624, title IX, Sec. 902, Nov. 28,

1990, 104 Stat. 3488, related to administration of this subpart,

prior to the general amendment of this subpart by Pub. L. 107-171.

-CITE-

7 USC Sec. 1359kk 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part B - Marketing Quotas

subpart vii - flexible marketing allotments for sugar

-HEAD-

Sec. 1359kk. Reallocating sugar quota import shortfalls

-STATUTE-

(a) In general

Notwithstanding any other provision of law, on or after June 1 of

each of the 2002 through 2007 calendar years, the United States

Trade Representative, in consultation with the Secretary, shall

determine the amount of the quota of cane sugar used by each

qualified supplying country for that crop year, and may reallocate

the unused quota for that crop year among qualified supplying

countries.

(b) Qualified supplying country defined

In this section, the term ''qualified supplying country'' means

one of the following foreign countries that is allowed to export

cane sugar to the United States under an agreement or any other

country with which the United States has an agreement relating to

the importation of cane sugar:

Argentina

Australia

Barbados

Belize

Bolivia

Brazil

Colombia

Republic of the Congo

Costa Rica

Dominican Republic

Ecuador

El Salvador

Fiji

Gabon

Guatemala

Guyana

Haiti

Honduras

India

Cote D'Ivoire, formerly known as the Ivory Coast

Jamaica

Madagascar

Malawi

Mauritius

Mexico

Mozambique

Nicaragua

Panama

Papua New Guinea

Paraguay

Peru

Philippines

St. Kitts and Nevis

South Africa

Swaziland

Taiwan

Thailand

Trinidad-Tobago

Uruguay

Zimbabwe.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 359k, as added Pub. L.

107-171, title I, Sec. 1403, May 13, 2002, 116 Stat. 204.)

-CITE-

7 USC Part C - Administrative Provisions 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

.

-HEAD-

Part C - Administrative Provisions

-CITE-

7 USC subpart i - publication and review of quotas 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

.

-HEAD-

subpart i - publication and review of quotas

-MISC1-

INAPPLICABILITY OF SUBPART

Subpart inapplicable to 1996 through 2001 crops of peanuts, see

section 7301(a)(1)(F) of this title.

Pub. L. 101-624, title VIII, Sec. 801(4), Nov. 28, 1990, 104

Stat. 3459, provided that subpart I of part C of this subchapter

(Sec. 1361 et seq.) is inapplicable to 1991 through 1995 crops of

peanuts.

Pub. L. 99-198, title VII, Sec. 701(4), Dec. 23, 1985, 99 Stat.

1430, provided that subpart I of part C of this subchapter (Sec.

1361 et seq.) is inapplicable to 1986 through 1990 crops of

peanuts.

Pub. L. 97-98, title VII, Sec. 701(4), Dec. 22, 1981, 95 Stat.

1248, provided that subpart I of part C of this subchapter (Sec.

1361 et seq.) is inapplicable to 1982 through 1985 crops of

peanuts.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in section 7301 of this title.

-CITE-

7 USC Sec. 1361 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1361. Application of subpart

-STATUTE-

This subpart shall apply to the publication and review of farm

marketing quotas established for tobacco, corn, wheat, cotton, and

rice, established under part B of this subchapter.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 361, 52 Stat. 62; Apr. 3,

1941, ch. 39, Sec. 4, 55 Stat. 92; Pub. L. 107-171, title I, Sec.

1309(h)(1), May 13, 2002, 116 Stat. 181.)

-REFTEXT-

REFERENCES IN TEXT

Part B of this subchapter, referred to in text, commences with

section 1311 of this title.

-MISC2-

AMENDMENTS

2002 - Pub. L. 107-171 struck out ''peanuts,'' after ''cotton,''.

1941 - Act Apr. 3, 1941, inserted ''peanuts,'' after ''cotton,''.

-CITE-

7 USC Sec. 1362 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1362. Publication of marketing quota; mailing of allotment

notice

-STATUTE-

All acreage allotments, and the farm marketing quotas established

for farms in a county or other local administrative area shall, in

accordance with regulations of the Secretary, be made and kept

freely available for public inspection in such county or other

local administrative area. An additional copy of this information

shall be kept available in the office of the county agricultural

extension agent or with the chairman of the local committee.

Notice of the farm marketing quota of his farm shall be mailed to

the farmer.

Notice of the farm acreage allotment established for each farm

shown by the records of the county committee to be entitled to such

allotment shall insofar as practicable be mailed to the farm

operator in sufficient time to be received prior to the date of the

referendum.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 362, 52 Stat. 62; Aug. 29,

1949, ch. 518, Sec. 2(c), 63 Stat. 676.)

-MISC1-

AMENDMENTS

1949 - Act Aug. 29, 1949, inserted paragraph providing for

mailing of notice of allotment.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1363 of this title.

-CITE-

7 USC Sec. 1363 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1363. Review of quota; review committee

-STATUTE-

Any farmer who is dissatisfied with his farm marketing quota may,

within fifteen days after mailing to him of notice as provided in

section 1362 of this title, have such quota reviewed by a local

review committee composed of three farmers from the same or nearby

counties appointed by the Secretary. Such committee shall not

include any member of the local committee which determined the farm

acreage allotment, the normal yield, or the farm marketing quota

for such farm. Unless application for review is made within such

period, the original determination of the farm marketing quota

shall be final.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 363, 52 Stat. 63; Apr. 12,

1951, ch. 28, Sec. 3, 65 Stat. 31.)

-MISC1-

AMENDMENTS

1951 - Act Apr. 12, 1951, provided that the Secretary appoint a

local review committee composed of 3 farmers from the same or

nearby counties.

REVIEW OF 1950 COTTON FARM ACREAGE ALLOTMENT

Section 2 of act Mar. 31, 1950, ch. 81, 64 Stat. 41, provided

that any farmer dissatisfied with his farm acreage allotment for

the 1950 cotton crop could have such allotment reviewed in

accordance with the provisions of this chapter.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1314b, 1314b-1, 1314b-2,

1314c, 2279a of this title.

-CITE-

7 USC Sec. 1364 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1364. Compensation of review committee

-STATUTE-

The members of the review committee shall receive as compensation

for their services the same per diem as that received by the

members of the committee utilized for the purposes of chapter 3B of

title 16. The members of the review committee shall not be entitled

to receive compensation for more than thirty days in any one year.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 364, 52 Stat. 63.)

-REFTEXT-

REFERENCES IN TEXT

Chapter 3B (Sec. 590a et seq.) of title 16, referred to in text,

was in the original a reference to the Soil Conservation and

Domestic Allotment Act, as amended.

-CITE-

7 USC Sec. 1365 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1365. Institution of proceeding for court review of committee

findings

-STATUTE-

If the farmer is dissatisfied with the determination of the

review committee, he may, within fifteen days after a notice of

such determination is mailed to him by registered mail or by

certified mail, file a bill in equity against the review committee

as defendant in the United States district court, or institute

proceedings for review in any court of record of the State having

general jurisdiction, sitting in the county or the district in

which his farm is located, for the purpose of obtaining a review of

such determination. Bond shall be given in an amount and with

surety satisfactory to the court to secure the United States for

the costs of the proceeding. The bill of complaint in such

proceeding may be served by delivering a copy thereof to any one of

the members of the review committee. Thereupon the review

committee shall certify and file in the court a transcript of the

record upon which the determination complained of was made,

together with its findings of fact.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 365, 52 Stat. 63; Pub. L.

86-507, Sec. 1(5), June 11, 1960, 74 Stat. 200.)

-MISC1-

AMENDMENTS

1960 - Pub. L. 86-507 inserted ''or by certified mail'' after

''registered mail''.

-CITE-

7 USC Sec. 1366 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1366. Court review

-STATUTE-

The review by the court shall be limited to questions of law, and

the findings of fact by the review committee, if supported by

evidence shall be conclusive. If application is made to the court

for leave to adduce additional evidence, and it is shown to the

satisfaction of the court that such additional evidence is material

and that there were reasonable grounds for failure to adduce such

evidence in the hearing before the review committee, the court may

direct such additional evidence to be taken before the review

committee in such manner and upon such terms and conditions as to

the court may seem proper. The review committee may modify its

findings of fact or its determination by reason of the additional

evidence so taken, and it shall file with the court such modified

findings or determination, which findings of fact shall be

conclusive. The court shall hear and determine the case upon the

original record of the hearing before the review committee, and

upon such record as supplemented if supplemented, by further

hearing before the review committee pursuant to direction of the

court. The court shall affirm the review committee's

determination, or modified determination, if the court determines

that the same is in accordance with law. If the court determines

that such determination or modified determination is not in

accordance with law, the court shall remand the proceeding to the

review committee with direction either to make such determination

as the court shall determine to be in accordance with law or to

take such further proceedings as, in the court's opinion, the law

requires.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 366, 52 Stat. 63; Pub. L.

98-620, title IV, Sec. 402(6), Nov. 8, 1984, 98 Stat. 3357.)

-MISC1-

AMENDMENTS

1984 - Pub. L. 98-620 substituted ''The court'' for ''At the

earliest convenient time, the court, in term time or vacation,''.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-620 not applicable to cases pending on

Nov. 8, 1984, see section 403 of Pub. L. 98-620, set out as an

Effective Date note under section 1657 of Title 28, Judiciary and

Judicial Procedure.

-CITE-

7 USC Sec. 1367 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1367. Stay of proceedings and exclusive jurisdiction

-STATUTE-

The commencement of judicial proceedings under this subpart shall

not, unless specifically ordered by the court, operate as a stay of

the review committee's determination. Notwithstanding any other

provision of law, the jurisdiction conferred by this subpart to

review the legal validity of a determination made by a review

committee pursuant to this subpart shall be exclusive. No court of

the United States or of any State shall have jurisdiction to pass

upon the legal validity of any such determination except in a

proceeding under this subpart.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 367, 52 Stat. 64.)

-CITE-

7 USC Sec. 1368 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart i - publication and review of quotas

-HEAD-

Sec. 1368. Effect of increase on other quotas

-STATUTE-

Notwithstanding any increase of any farm marketing quota for any

farm as a result of review of the determination thereof under this

subpart, the marketing quotas for other farms shall not be

affected.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 368, 52 Stat. 64.)

-CITE-

7 USC subpart ii - adjustment of quotas and enforcement 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

.

-HEAD-

subpart ii - adjustment of quotas and enforcement

-CITE-

7 USC Sec. 1371 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1371. General adjustment of quotas

-STATUTE-

(a) Investigation and adjustment to maintain normal supply

If at any time the Secretary has reason to believe that in the

case of cotton, rice, or tobacco the operation of farm marketing

quotas in effect will cause the amount of such commodity which is

free of marketing restrictions to be less than the normal supply

for the marketing year for the commodity then current, he shall

cause an immediate investigation to be made with respect thereto.

In the course of such investigation due notice and opportunity for

hearing shall be given to interested persons. If upon the basis of

such investigation the Secretary finds the existence of such fact,

he shall proclaim the same forthwith. He shall also in such

proclamation specify such increase in, or termination of, existing

quotas as he finds, on the basis of such investigation, is

necessary to make the amount of such commodity which is free of

marketing restrictions equal the normal supply.

(b) Adjustment because of emergency or export demand

If the Secretary has reason to believe that, because of a

national emergency or because of a material increase in export

demand, any national marketing quota or acreage allotment for

cotton, rice,, (FOOTNOTE 1) or tobacco should be increased or

terminated, he shall cause an immediate investigation to be made to

determine whether the increase or termination is necessary to meet

such emergency or increase in export demand. If, on the basis of

such investigation, the Secretary finds that such increase or

termination is necessary, he shall immediately proclaim such

finding (and if he finds an increase is necessary, the amount of

the increase found by him to be necessary) and thereupon such quota

or allotment shall be increased, or shall terminate, as the case

may be.

(FOOTNOTE 1) So in original.

(c) Increase of farm quota on increase of national quota

In case any national marketing quota or acreage allotment for any

commodity is increased under this section, each farm marketing

quota for the commodity shall be increased in the same ratio.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 371, 52 Stat. 64; Apr. 3,

1941, ch. 39, Sec. 5, 55 Stat. 92; Aug. 28, 1954, ch. 1041, title

III, Sec. 312, 68 Stat. 904; Pub. L. 87-703, title III, Sec. 321,

Sept. 27, 1962, 76 Stat. 626; Pub. L. 107-171, title I, Sec.

1309(h)(2), May 13, 2002, 116 Stat. 182.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171, Sec. 1309(h)(2)(A), struck

out ''peanuts,'' before ''or tobacco'' in first sentence.

Subsec. (b). Pub. L. 107-171, Sec. 1309(h)(2)(B), struck out

''peanuts'' before ''or tobacco'' in first sentence.

1962 - Subsec. (a). Pub. L. 87-703, Sec. 321(1), struck out

''corn, wheat,'' before ''cotton''.

Subsec. (b). Pub. L. 87-703, Sec. 321(2), struck out ''any

national acreage allotment for corn, or'' after ''export demand,'',

''wheat,'' before ''cotton'' and ''in order to effect the declared

policy of this chapter or'' before ''to meet such emergency''.

1954 - Subsec. (b). Act Aug. 28, 1954, Sec. 312(a), inserted

proviso relating to national acreage allotment for corn, and struck

out corn from national marketing quota provision.

Subsec. (c). Act Aug. 28, 1954, Sec. 312(b), inserted ''or

acreage allotment'' after ''marketing quota'' wherever appearing.

Subsec. (d). Act Aug. 28, 1954, Sec. 312(c), repealed subsec. (d)

which related to the adjustment of corn storage regulations on

change in marketing quotas.

1941 - Subsecs. (a), (b). Act Apr. 3, 1941, inserted ''peanuts,''

after ''rice,''.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-703 effective only with respect to

programs applicable to the crops planted for harvest in the

calendar year 1964 or any subsequent year and the marketing years

beginning in the calendar year 1964, or any subsequent year, see

section 323 of Pub. L. 87-703, set out as a note under section 1301

of this title.

INAPPLICABILITY TO 1991 THROUGH 1995 CROPS OF PEANUTS

Pub. L. 101-624, title VIII, Sec. 801(5), Nov. 28, 1990, 104

Stat. 3459, provided that this section is inapplicable to 1991

through 1995 crops of peanuts.

INAPPLICABILITY TO 1986 THROUGH 1990 CROPS OF PEANUTS

Pub. L. 99-198, title VII, Sec. 701(5), Dec. 23, 1985, 99 Stat.

1430, provided that this section is inapplicable to 1986 through

1990 crops of peanuts.

INAPPLICABILITY TO 1982 THROUGH 1985 CROPS OF PEANUTS

Pub. L. 97-98, title VII, Sec. 701(5), Dec. 22, 1981, 95 Stat.

1248, provided that this section is inapplicable to 1982 through

1985 crops of peanuts.

-CITE-

7 USC Sec. 1372 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1372. Payment, collection, and refund of penalties

-STATUTE-

(a) The penalty with respect to the marketing, by sale, of wheat,

cotton, or rice, if the sale is to any person within the United

States, shall be collected by the buyer.

(b) All penalties provided for in part B of this subchapter shall

be collected and paid in such manner, at such times, and under such

conditions as the Secretary may by regulations prescribe. Such

penalties shall be remitted to the Secretary by the person liable

for the penalty, except that if any other person is liable for the

collection of the penalty, such other person shall remit the

penalty. Except as provided in section 1314h of this title, the

amount of such penalties shall be covered into the general fund of

the Treasury of the United States.

(c) Whenever, pursuant to a claim filed with the Secretary within

two years after payment to him of any penalty collected from any

person pursuant to this chapter, the Secretary finds that such

penalty was erroneously illegally, or wrongfully collected and the

claimant bore the burden of the payment of such penalty, the

Secretary shall certify to the Secretary of the Treasury for

payment to the claimant, in accordance with regulations prescribed

by the Secretary of the Treasury, such amount as the Secretary

finds the claimant is entitled to receive as a refund of such

penalty.

Notwithstanding any other provision of law, the Secretary is

authorized to prescribe by regulations for the identification of

farms and it shall be sufficient to schedule receipts into special

deposit accounts or to schedule such receipts for transfer

therefrom, or directly, into the separate fund provided for in

subsection (b) of this section by means of such identification

without reference to the names of the producers on such farms.

The Secretary is authorized to prescribe regulations governing

the filing of such claims and the determination of such refunds.

(d) No penalty shall be collected under this chapter with respect

to the marketing of any agricultural commodity grown for

experimental purposes only by any publicly owned agricultural

experiment station. Effective with the 1978 crops, no penalty

shall be collected under this chapter with respect to the marketing

of any agricultural commodity grown on State prison farms for

consumption within such State prison system.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 372, 52 Stat. 65; Apr. 7,

1938, ch. 107, Sec. 11, 52 Stat. 204; July 2, 1940, ch. 521, Sec.

6, 54 Stat. 728; Pub. L. 96-113, Nov. 16, 1979, 93 Stat. 850; Pub.

L. 99-272, title I, Sec. 1106(b), Apr. 7, 1986, 100 Stat. 91.)

-REFTEXT-

REFERENCES IN TEXT

Part B of this subchapter, referred to in subsec. (b), commences

with section 1311 of this title.

-MISC2-

AMENDMENTS

1986 - Subsec. (b). Pub. L. 99-272 substituted ''Except as

provided in section 1314h of this title, the'' for ''The''.

1979 - Subsec. (d). Pub. L. 96-113 inserted provisions respecting

exemption from marketing quota penalties for State prison farms.

1940 - Subsec. (c). Act July 2, 1940, substituted ''within two

years'' for ''within one year'' and inserted ''and the claimant

bore the burden of the payment of such penalty'' after ''wrongfully

collected'' in first par. and inserted second par. authorizing

regulations for farm identification, etc.

1938 - Subsecs. (c), (d). Act Apr. 7, 1938, added subsecs. (c)

and (d).

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1106(b) of Pub. L. 99-272 provided that the amendment

made by that section is effective for 1986 and subsequent crops of

tobacco.

RULEMAKING PROCEDURES

Secretary of Agriculture to implement amendments by Pub. L.

99-272 without regard to provisions requiring notice and other

procedures for public participation in rulemaking contained in

section 553 of Title 5, Government Organization and Employees, or

in any other directive of the Secretary, see section 1108(c) of

Pub. L. 99-272, set out as a note under section 1301 of this title.

-CITE-

7 USC Sec. 1373 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1373. Reports and records

-STATUTE-

(a) Persons reporting

This subsection shall apply to warehousemen, processors, and

common carriers of corn, wheat, cotton, rice, or tobacco, and all

ginners of cotton, all persons engaged in the business of

purchasing corn, wheat, cotton, rice, or tobacco from producers,

and all persons engaged in the business of redrying, prizing, or

stemming tobacco for producers. Any such person shall, from time

to time on request of the Secretary, report to the Secretary such

information and keep such records as the Secretary finds to be

necessary to enable him to carry out the provisions of this

subchapter. Such information shall be reported and such records

shall be kept in accordance with forms which the Secretary shall

prescribe. For the purpose of ascertaining the correctness of any

report made or record kept, or of obtaining information required to

be furnished in any report, but not so furnished, the Secretary is

authorized to examine such books, papers, records, accounts,

correspondence, contracts, documents, and memoranda as he has

reason to believe are relevant and are within the control of such

person. Any such person failing to make any report or keep any

record as required by this subsection or making any false report or

record shall be deemed guilty of a misdemeanor and upon conviction

thereof shall be subject to a fine of not more than $500; and any

tobacco warehouseman or dealer who fails to remedy such violation

by making a complete and accurate report or keeping a complete and

accurate record as required by this subsection within fifteen days

after notice to him of such violation shall be subject to an

additional fine of $100 for each ten thousand pounds of tobacco, or

fraction thereof, bought or sold by him after the date of such

violation: Provided, That such fine shall not exceed $5,000; and

notice of such violation shall be served upon the tobacco

warehouseman or dealer by mailing the same to him by registered

mail or by certified mail or by posting the same at any established

place of business operated by him, or both.

(b) Proof of acreage yield

Farmers engaged in the production of corn, wheat, cotton, rice,

or tobacco for market shall furnish such proof of their acreage,

yield, storage, and marketing of the commodity in the form of

records, marketing cards, reports, storage under seal, or otherwise

as the Secretary may prescribe as necessary for the administration

of this subchapter.

(c) Data as confidential

All data reported to or acquired by the Secretary pursuant to

this section shall be kept confidential by all officers and

employees of the Department, and only such data so reported or

acquired as the Secretary deems relevant shall be disclosed by

them, and then only in a suit or administrative hearing under this

subchapter. Nothing in this section shall be deemed to prohibit

the issuance of general statements based upon the reports of a

number of parties which statements do not identify the information

furnished by any person.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 373, 52 Stat. 65; June 13,

1940, ch. 360, Sec. 6, 54 Stat. 394; Apr. 3, 1941, ch. 39, Sec. 6,

7, 55 Stat. 92; Pub. L. 86-507, Sec. 1(6), June 11, 1960, 74 Stat.

200; Pub. L. 95-113, title VIII, Sec. 805, Sept. 29, 1977, 91 Stat.

947; Pub. L. 97-98, title VII, Sec. 706, Dec. 22, 1981, 95 Stat.

1256; Pub. L. 97-218, title III, Sec. 304, July 20, 1982, 96 Stat.

214; Pub. L. 99-198, title VII, Sec. 706, Dec. 23, 1985, 99 Stat.

1441; Pub. L. 101-624, title VIII, Sec. 807, Nov. 28, 1990, 104

Stat. 3478; Pub. L. 104-127, title I, Sec. 171(a)(2), Apr. 4, 1996,

110 Stat. 937; Pub. L. 107-171, title I, Sec. 1309(h)(3), May 13,

2002, 116 Stat. 182.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171, Sec. 1309(h)(3)(A), in first

sentence, struck out ''peanuts,'' after ''rice, in two places,

inserted ''and'' after ''from producers,'' and substituted ''for

producers.'' for ''for producers, all producers engaged in the

production of peanuts, all brokers and dealers in peanuts, all

agents marketing peanuts for producers, or acquiring peanuts for

buyers and dealers, and all peanut growers' cooperative

associations, all persons engaged in the business of cleaning,

shelling, crushing, and salting of peanuts and the manufacture of

peanut products, and all persons owning or operating peanut-picking

or peanut-threshing machines.''

Subsec. (b). Pub. L. 107-171, Sec. 1309(h)(3)(B), struck out

''peanuts,'' after ''rice,''.

1996 - Subsec. (a). Pub. L. 104-127 temporarily inserted ''all

producers engaged in the production of peanuts,'' before ''all

brokers and dealers in peanuts''. See Effective and Termination

Dates of 1996 Amendment note below.

1990 - Subsec. (a). Pub. L. 101-624 temporarily inserted ''all

producers engaged in the production of peanuts,'' before ''all

brokers and dealers in peanuts''. See Effective and Termination

Dates of 1990 Amendment note below.

1985 - Subsec. (a). Pub. L. 99-198 temporarily inserted ''all

producers engaged in the production of peanuts,'' before ''all

brokers and dealers in peanuts''. See Effective and Termination

Dates of 1985 Amendment note below.

1982 - Subsec. (c). Pub. L. 97-218 inserted provision that

nothing in this section shall be deemed to prohibit the issuance of

general statements based upon the reports of a number of parties

which statements do not identify the information furnished by any

person.

1981 - Subsec. (a). Pub. L. 97-98 temporarily inserted ''all

farmers engaged in the production of peanuts,'' before ''all

brokers and dealers in peanuts''. See Effective and Termination

Dates of 1981 Amendment note below.

1977 - Subsec. (a). Pub. L. 95-113 temporarily inserted ''all

farmers engaged in the production of peanuts,'' before ''and

brokers and dealers in peanuts''. See Effective and Termination

Dates of 1977 Amendment note below.

1960 - Subsec. (a). Pub. L. 86-507 inserted ''or by certified

mail'' after ''registered mail''.

1941 - Subsec. (a). Act Apr. 3, 1941, Sec. 6, among other

changes, inserted ''peanuts'' after ''rice'' wherever appearing and

inserted ''all brokers and dealers in peanuts, all agents marketing

peanuts for producers, or acquiring peanuts for buyers and dealers,

and all peanut growers' cooperative associations, all persons

engaged in the business of cleaning, shelling, crushing, and

salting of peanuts and the manufacture of peanut products, and all

persons owning or operating peanut-picking or peanut-threshing

machines''.

Subsec. (b). Act Apr. 3, 1941, Sec. 7, inserted ''peanuts,''

after ''rice,''.

1940 - Subsec. (a). Act June 13, 1940, inserted all after

''$500;'' in last sentence.

EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENT

Section 171(a)(2) of Pub. L. 104-127 provided that the amendment

made by that section is effective only for 1996 through 2002 crops

of peanuts.

EFFECTIVE AND TERMINATION DATES OF 1990 AMENDMENT

Section 807 of Pub. L. 101-624 provided that the amendment made

by that section is effective only for 1991 through 1995 crops of

peanuts.

EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT

Section 706 of Pub. L. 99-198 provided that the amendment made by

that section is effective only for 1986 through 1990 crops of

peanuts.

EFFECTIVE AND TERMINATION DATES OF 1981 AMENDMENT

Section 706 of Pub. L. 97-98 provided that the amendment made by

that section is effective for 1982 through 1985 crop of peanuts.

EFFECTIVE AND TERMINATION DATES OF 1977 AMENDMENT

Section 805 of Pub. L. 95-113 provided that the amendment made by

that section is effective for 1978 through 1981 crops of peanuts.

-CITE-

7 USC Sec. 1374 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1374. Measurement of farms and report of plantings;

remeasurement

-STATUTE-

(a) The Secretary shall provide for ascertaining, by measurement

or otherwise, the acreage of any agricultural commodity or land use

on farms for which the ascertainment of such acreage is necessary

to determine compliance under any program administered by the

Secretary. Insofar as practicable, the acreage of the commodity and

land use shall be ascertained prior to harvest, and, if any acreage

so ascertained is not in compliance with the requirements of the

program the Secretary, under such terms and conditions as he

prescribes, may provide a reasonable time for the adjustment of the

acreage of the commodity or land use to the requirements of the

program. Where cotton is planted in skiprow patterns, the same

rules that were in effect for the 1971 through 1973 crops for

classifying the acreage planted to cotton and the area skipped

shall also apply to the 1974 through 1995 crops, except that, for

the 1991 through 1995 crops, the rules shall allow 30 inch rows

(or, at the option of those cotton producers who had an established

practice of using 32 inch rows before the 1991 crop, 32 inch rows)

to be taken into account for classifying the acreage planted to

cotton and the area skipped. For the 1992 through 1995 crops, the

rules establishing the requirements for eligibility for conserving

use for payment acres shall be the same rules as were in effect for

1991 crops.

(b) With respect to cotton, the Secretary, upon such terms and

conditions as he may by regulation prescribe, shall provide,

through the county and local committees for the measurement prior

to planting of an acreage on the farm equal to the farm acreage

allotment if so requested by the farm operator, and any farm on

which the acreage planted to cotton does not exceed such measured

acreage shall be deemed to be in compliance with the farm acreage

allotment.

(c) The Secretary shall by appropriate regulations provide for

the remeasurement upon request by the farm operator of the acreage

planted to such commodity on the farm and for the measurement of

the acreage planted to such commodity on the farm remaining after

any adjustment of excess acreage hereunder and shall prescribe the

conditions under which the farm operator shall be required to pay

the county committee for the expense of the measurement of adjusted

acreage or the expense of remeasurement after the initial

measurement or the measurement of adjusted acreage. The

regulations shall also provide for the refund of any deposit or

payment made for the expense of the remeasurement of the initially

determined acreage or the adjusted acreage when because of an error

in the determination of such acreage the remeasurement brings the

acreage within the allotment or permitted acreage or results in a

change in acreage in excess of a reasonable variation normal to

measurements of acreage of the commodity. Unless the requirements

for measurement of adjusted acreage are met by the farm operator,

the acreage prior to such adjustment as determined by the county

committee shall be considered the acreage of the commodity on the

farm in determining whether the applicable farm allotment has been

exceeded.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 374, 52 Stat. 65; Apr. 3,

1941, ch. 39, Sec. 8, 55 Stat. 92; Aug. 29, 1949, ch. 518, Sec.

2(b), 63 Stat. 676; Aug. 28, 1954, ch. 1041, title III, Sec.

311(b), 68 Stat. 904; Pub. L. 86-553, Sec. 1, 2, June 30, 1960, 74

Stat. 258; Pub. L. 89-321, title VII, Sec. 701, 702, Nov. 3, 1965,

79 Stat. 1210; Pub. L. 91-524, title VI, Sec. 612, Nov. 30, 1970,

as added Pub. L. 93-86, Sec. 1(25), Aug. 10, 1973, 87 Stat. 236;

Pub. L. 95-113, title VI, Sec. 605, Sept. 29, 1977, 91 Stat. 940;

Pub. L. 97-98, title V, Sec. 505, Dec. 22, 1981, 95 Stat. 1241;

Pub. L. 99-198, title V, Sec. 505, Dec. 23, 1985, 99 Stat. 1418;

Pub. L. 101-624, title V, Sec. 504, Nov. 28, 1990, 104 Stat. 3440;

Pub. L. 102-237, title I, Sec. 116(2), Dec. 13, 1991, 105 Stat.

1840.)

-MISC1-

AMENDMENTS

1991 - Subsec. (a). Pub. L. 102-237 inserted ''(or, at the option

of those cotton producers who had an established practice of using

32 inch rows before the 1991 crop, 32 inch rows)'' after ''30 inch

rows'' and inserted at end ''For the 1992 through 1995 crops, the

rules establishing the requirements for eligibility for conserving

use for payment acres shall be the same rules as were in effect for

1991 crops.''

1990 - Subsec. (a). Pub. L. 101-624 substituted ''1995 crops,

except that, for the 1991 through 1995 crops, the rules shall allow

30 inch rows to be taken into account for classifying the acreage

planted to cotton and the area skipped'' for ''1990 crops''.

1985 - Subsec. (a). Pub. L. 99-198 substituted ''1990 crops'' for

''1985 crops''.

1981 - Subsec. (a). Pub. L. 97-98 substituted ''1985 crops'' for

''1981 crops''.

1977 - Subsec. (a). Pub. L. 95-113 substituted ''1981'' for

''1977'' in provisions setting the last year for application of the

1971 through 1973 skiprow patterns in classifying the acreage

planted to cotton.

1973 - Subsec. (a). Pub. L. 91-524, Sec. 612, as added by Pub. L.

93-86, inserted provisions relating to cotton planted in skiprow

patterns.

1965 - Subsec. (a). Pub. L. 89-321, Sec. 701, removed references

to county and local committees as the agent for measuring commodity

or land use acreage, substituted a general reference to any

agricultural commodity or land use on farms requiring ascertainment

of acreage for specific reference to corn, wheat, cotton, peanuts,

or rice, and substituted provisions requiring ascertainment of

commodity and land use prior to harvesting and allowing a

reasonable time for adjustment of acreage requirements for

provisions requiring the filing of a written report by the local

committee with the state committee in the event of planting in

excess of farm acreage allotment.

Subsec. (c). Pub. L. 89-321, Sec. 702, struck out sentence

directing the Secretary to provide by regulation for the adjustment

of planted acreage to the farm acreage allotment if the acreage

determined to be planted to any basic agricultural commodity on the

farm is in excess of the farm acreage allotment.

1960 - Subsec. (b). Pub. L. 86-553, Sec. 1, struck out second

sentence which read as follows: ''The Secretary shall similarly

provide for the remeasurement upon request by the farm operator of

the acreage planted to cotton on the farm, but the operator shall

be required to reimburse the local committee for the expense of

such remeasurement if the planted acreage is found to be in excess

of the allotted acreage'' which is now covered by subsec. (c) of

this section.

Subsec. (c). Pub. L. 86-553, Sec. 2, authorized Secretary to

provide by regulations for remeasurement of acreage planted to a

basic agricultural commodity and for measurement of acreage planted

to such commodity remaining after adjustment of excess of

measurement and remeasurement and to provide for refunds, and

prescribed method of computing acreage in determining whether the

applicable farm allotment has been exceeded.

1954 - Subsec. (b). Act Aug. 28, 1954, struck out last sentence

relating to overplanting of cotton acreage.

Subsec. (c). Act Aug. 28, 1954, added subsec. (c).

1949 - Act Aug. 29, 1949, redesignated existing provisions as

subsec. (a) and added subsec. (b).

1941 - Act Apr. 3, 1941, inserted ''peanuts,'' after ''cotton,''.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-624 effective beginning with 1991 crop

of an agricultural commodity, with provision for prior crops, see

section 1171 of Pub. L. 101-624, set out as a note under section

1421 of this title.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section

1901 of Pub. L. 95-113, set out as a note under section 1307 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1349 of this title.

-CITE-

7 USC Sec. 1375 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1375. Regulations

-STATUTE-

(a) The Secretary shall provide by regulations for the

identification, wherever necessary, of corn, wheat, cotton, rice,

peanuts, or tobacco so as to afford aid in discovering and

identifying such amounts of the commodities as are subject to and

such amounts thereof as are not subject to marketing restrictions

in effect under this subchapter.

(b) The Secretary shall prescribe such regulations as are

necessary for the enforcement of this subchapter.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 375, 52 Stat. 66; Apr. 3,

1941, ch. 39, Sec. 9, 55 Stat. 92.)

-MISC1-

AMENDMENTS

1941 - Subsec. (a). Act Apr. 3, 1941, inserted ''peanuts,'' after

''rice,''.

-CITE-

7 USC Sec. 1376 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1376. Court jurisdiction; duties of United States attorneys;

remedies and penalties as additional

-STATUTE-

The several district courts of the United States are vested with

jurisdiction specifically to enforce the provisions of this

subchapter. If and when the Secretary shall so request, it shall

be the duty of the several United States attorneys in their

respective districts, under the direction of the Attorney General,

to institute proceedings to collect the penalties provided in this

subchapter. The remedies and penalties provided for herein shall

be in addition to, and not exclusive of, any of the remedies or

penalties under existing law. This section also shall be

applicable to liquidated damages provided for pursuant to section

1349 of this title.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 376, 52 Stat. 66; June 25,

1948, ch. 646, Sec. 1, 62 Stat. 869; Pub. L. 88-297, title I, Sec.

106(2), Apr. 11, 1964, 78 Stat. 176.)

-MISC1-

AMENDMENTS

1964 - Pub. L. 88-297 provided for application of this section to

liquidated damages under section 1349 of this title.

-CHANGE-

CHANGE OF NAME

Act June 25, 1948, eff. Sept. 1, 1948, substituted ''United

States attorneys'' for ''district attorneys''. See section 541 of

Title 28, Judiciary and Judicial Procedure, and Historical and

Revision Notes thereunder.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1314-1 of this title.

-CITE-

7 USC Sec. 1377 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1377. Preservation of unused acreage allotments

-STATUTE-

In any case in which, during any year beginning with 1956, the

acreage planted to a commodity on any farm is less than the acreage

allotment for such farm, the entire acreage allotment for such farm

(excluding any allotment released from the farm or reapportioned to

the farm and any allotment provided for the farm pursuant to

subsection (f)(7)(A) of section 1344 of this title) shall, except

as provided herein, be considered for the purpose of establishing

future State, county and farm acreage allotments, to have been

planted to such commodity in such year on such farm, but the 1956

acreage allotment of any commodity shall be regarded as planted

under this section only if the owner or operator on such farm

notified the county committee prior to the sixtieth day preceding

the beginning of the marketing year for such commodity of his

desire to preserve such allotment: Provided, That beginning with

the 1960 crop, except for federally owned land, the current farm

acreage allotment established for a commodity shall not be

preserved as history acreage pursuant to the provisions of this

section unless for the current year or either of the two preceding

years as acreage equal to 75 per centum or more of the farm acreage

allotment for such year or, in the case of upland cotton on a farm

which qualified for price support on the crop produced in any such

year under section 1444(b) of this title, 75 per centum of the farm

domestic allotment established under section 1350 of this title for

any such year, whichever is smaller was actually planted or devoted

to the commodity on the farm (or was regarded as planted under

provisions of the Soil Bank Act or the environmental quality

incentives program established under chapter 4 of subtitle D of

title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et

seq.)): Provided further, That this section shall not be applicable

in any case, within the period 1956 to 1959, in which the amount of

the commodity required to be stored to postpone or avoid payment of

penalty has been reduced because the allotment was not fully

planted. Acreage history credits for released or reapportioned

acreage shall be governed by the applicable provisions of this

subchapter pertaining to the release and reapportionment of acreage

allotments.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 377, as added May 28, 1956,

ch. 327, title III, Sec. 307, 70 Stat. 206; amended Pub. L. 85-266,

Sept. 2, 1957, 71 Stat. 592; Pub. L. 86-172, Sec. 1, Aug. 18, 1959,

73 Stat. 393; Pub. L. 88-297, title I, Sec. 106(4), Apr. 11, 1964,

78 Stat. 177; Pub. L. 95-113, title VIII, Sec. 806, Sept. 29, 1977,

91 Stat. 947; Pub. L. 104-127, title III, Sec. 336(b)(2)(A), Apr.

4, 1996, 110 Stat. 1006.)

-REFTEXT-

REFERENCES IN TEXT

The Soil Bank Act, referred to in text, is act May 28, 1956, ch.

327, 70 Stat. 188, as amended, which was classified to subchapters

I to III of chapter 45 (Sec. 1801 et seq.) of this title and was

repealed by Pub. L. 89-321, title VI, Sec. 601, Nov. 3, 1965, 79

Stat. 1206. For complete classification of this Act to the Code

prior to its repeal, see Tables.

The Food Security Act of 1985, referred to in text, is Pub. L.

99-198, Dec. 23, 1985, 99 Stat. 1354, as amended. Chapter 4 of

subtitle D of title XII of the Act is classified generally to part

IV (Sec. 3839aa et seq.) of subchapter IV 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.

-MISC2-

AMENDMENTS

1996 - Pub. L. 104-127 substituted ''environmental quality

incentives program established under chapter 4 of subtitle D of

title XII of the Food Security Act of 1985'' for ''Great Plains

program''.

1977 - Pub. L. 95-113 temporarily inserted ''or, in the case of

peanuts, an acreage sufficient to produce 75 per centum of the farm

poundage quota'' after ''of the farm acreage allotment for such

year''. See Effective and Termination Dates of 1977 Amendment note

below.

1964 - Pub. L. 88-297 inserted ''or, in the case of upland cotton

on a farm which qualified for price support on the crop produced in

any such year under section 1444(b) of this title, 75 per centum of

the farm domestic allotment established under section 1350 of this

title for any such year, whichever is smaller'' in first proviso

after ''75 per centum or more of the farm acreage allotment for

such year'' to protect the farm base of any farm participating in

the domestic allotment choice program if the acreage planted on the

farm was at least 75 per centum of the farm domestic allotment.

1959 - Pub. L. 86-172 excluded any allotment provided for a farm

under section 1344(f)(7)(A) of this title from the entire acreage

allotment for the farm which is considered as planted in the year

for the purpose of establishing future acreage allotments and

provided for the preservation of the current farm acreage allotment

as history acreage under prescribed conditions.

1957 - Pub. L. 85-266 struck out, for 1957, 1958, and 1959,

requirement of filing notice of intention not to plant full acreage

allotment and provided that acreage history credits for released or

reapportioned acreage shall be governed by the applicable

provisions of this subchapter pertaining to the release and

reapportionment of acreage allotments.

EFFECTIVE AND TERMINATION DATES OF 1977 AMENDMENT

Section 806 of Pub. L. 95-113 provided that the amendment made by

that section is effective for 1978 through 1981 crops of peanuts.

INAPPLICABILITY OF SECTION

Section inapplicable to 1984 and subsequent crops of extra long

staple cotton, see section 3 of Pub. L. 98-88, set out as a note

under section 1342 of this title.

Section inapplicable to 2002 through 2007 crops of upland cotton,

see section 7992(a)(2) of this title.

Section inapplicable to 1996 through 2001 crops of upland cotton,

see section 7301(a)(1)(G) of this title.

Section inapplicable to 1991 through 1995 crops of upland cotton,

see section 502 of Pub. L. 101-624, set out as a note under section

1342 of this title.

Section inapplicable to 1986 through 1990 crops of upland cotton,

see section 502 of Pub. L. 99-198, set out as a note under section

1342 of this title.

Section inapplicable to 1982 through 1985 crops of upland cotton,

see section 501 of Pub. L. 97-98, set out as a note under section

1342 of this title.

Section inapplicable to 1978 through 1981 crops of rice, see

section 703 of Pub. L. 95-113.

Section inapplicable to 1978 through 1981 crops of upland cotton,

see section 601 of Pub. L. 95-113, set out as a note under section

1342 of this title.

Pub. L. 94-214, title III, Sec. 301, Feb. 16, 1976, 90 Stat. 187,

provided that: ''Section 377 of the Agricultural Adjustment Act of

1938 (this section) shall not be applicable to the 1976 and 1977

crops of rice.''

Pub. L. 91-524, title VI, Sec. 601(1), Nov. 30, 1970, 84 Stat.

1371, as amended by Pub. L. 93-86, Sec. 1(19)(A), Aug. 10, 1973, 87

Stat. 233, provided that this section is inapplicable to 1971

through 1977 crops of upland cotton.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1344, 7301, 7992 of this

title.

-CITE-

7 USC Sec. 1378 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1378. Transfer of acreage allotments ensuing from agency

acquisition of farmlands

-STATUTE-

(a) Allotment pool

Notwithstanding any other provision of this chapter, the

allotment determined for any commodity for any land from which the

owner is displaced because of acquisition of the land for any

purpose, other than for the continued production of allotted crops,

by any Federal, State, or other agency having the right of eminent

domain shall be placed in an allotment pool and shall be available

only for use in providing allotments for other farms owned by the

owner so displaced. Upon application to the county committee,

within three years after the date of such displacement, any owner

so displaced shall be entitled to have allotments established for

other farms owned by him, taking into consideration the land,

labor, and equipment available on such other farms for the

production of the commodity, crop-rotation practices, and the soil

and other physical factors affecting the production of the

commodity: Provided, That the acreage used to establish or increase

the allotments for such farms shall be transferred from the pool

and shall not exceed the allotment most recently established for

the farm acquired from the applicant and placed in the pool.

During the period of eligibility for the making of allotments under

this section for a displaced owner, acreage allotments for the farm

from which the owner was so displaced shall be established in

accordance with the procedure applicable to other farms, and such

allotments shall be considered to have been fully planted. After

such allotment is made under this section, the proportionate part,

or all, as the case may be, of the past acreage used in

establishing the allotment most recently placed in the pool for the

farm from which the owner was so displaced shall be transferred to

and considered for the purposes of future State, county, and farm

acreage allotments to have been planted on the farm to which

allotment is made under this section. Except where subsection (c)

of this section requires the transfer of allotment to another

portion of the same farm, for the purpose of this section (1) that

part of any farm from which the owner is so displaced and that part

from which he is not so displaced shall be considered as separate

farms; and (2) an owner who voluntarily relinquishes possession of

the land subsequent to its acquisition by an agency having the

right of eminent domain shall be considered as having been

displaced because of such acquisition. The former owner of land

acquired as described in this subsection shall not be considered

for the purposes hereof to have been displaced from such land

during any period for which such land is leased to such former

owner: Provided, That the occupancy of the former owner under the

lease follows immediately after his occupancy as owner: And

provided further, That if a former owner has been displaced prior

to April 9, 1960, and no allotment from the land owned by such

former owner has been transferred from the allotment pool and such

former owner leases the land formerly owned by him prior to two

years from April 9, 1960, such allotment shall be retransferred

from the pool to such land and the occupancy of such former owner

under the lease for the purposes of this subsection shall be deemed

to have begun immediately after his displacement as owner. During

any year of the 3-year period the allotment from a farm may remain

in the allotment pool, the displaced owner may, in accordance with

regulations of the Secretary, release for one year at a time any

part or all of such farm allotment to the county committee for

reapportionment to other farms in the county having allotments for

such commodity on the basis of the past acreage of the commodity,

land, labor, equipment available for the production of the

commodity, crop rotation practices, and soil and other physical

facilities affecting the production of the commodity; and the

allotment reapportioned shall, for purposes of establishing future

farm allotments, not be regarded as planted on the farm to which

the allotment was transferred.

(b) Circumstances precluding application of provisions

The provisions of this section shall not be applicable if (1)

there is any marketing quota penalty due with respect to the

marketing of the commodity from the farm acquired by the Federal,

State, or other agency or by the owner of the farm; (2) any of the

commodity produced on such farm has not been accounted for as

required by the Secretary; or (3) the allotment next established

for the farm acquired by the Federal, State, or other agency would

have been reduced because of false or improper identification of

the commodity produced on or marketed from such farm or due to a

false acreage report.

(c) Time of displacement determining application of provisions

This section shall not be applicable, in the case of cotton and

tobacco, to any farm from which the owner was displaced prior to

1950, in the case of wheat and corn, to any farm from which the

owner was displaced prior to 1954, and in the case of rice, to any

farm from which the owner was displaced prior to 1955. In any case

where the cropland acquired for nonfarming purposes from an owner

by an agency having the right of eminent domain represents less

than 15 per centum of the total cropland on the farm, the allotment

attributable to that portion of the farm so acquired shall be

transferred to that portion of the farm not so acquired.

(d), (e) Omitted

(f) Burley tobacco marketing allotment and acreage as meaning

marketing quota and poundage

In applying the provisions of this section to a farm for which a

tobacco marketing quota has been determined under section 1314e of

this title, the words ''allotment'' and ''acreage'', wherever they

appear, shall be construed to mean ''marketing quota'' and

''poundage'', respectively, as required.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 378, as added Pub. L.

85-835, title V, Sec. 501, Aug. 28, 1958, 72 Stat. 995; amended

Pub. L. 86-423, Sec. 1, Apr. 9, 1960, 74 Stat. 41; Pub. L. 87-33,

May 16, 1961, 75 Stat. 78; Pub. L. 91-524, title IV, Sec. 404(3),

title VI, Sec. 605(1), Nov. 30, 1970, 84 Stat. 1366, 1378; Pub. L.

92-10, Sec. 2, Apr. 14, 1971, 85 Stat. 27; Pub. L. 92-354, July 26,

1972, 86 Stat. 499; Pub. L. 107-171, title I, Sec. 1309(h)(4), May

13, 2002, 116 Stat. 182.)

-COD-

CODIFICATION

Part of subsec. (d) of section 378 of act Feb. 16, 1938, as

originally enacted, is set out as a Savings Clause note below. The

remainder of such subsec. (d) repealed sections 1313(h), 1334(d),

1344(h), a prior section 1353(f), and section 1358(h) of this

title.

-MISC3-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-171 substituted ''cotton and

tobacco,'' for ''cotton, tobacco, and peanuts,''.

1972 - Subsec. (a). Pub. L. 92-354 struck out the alternative

time limitation for filing applications to the county committee and

substituted provisions describing allotments for provisions

requiring the allotments to be comparable with allotments

determined for other farms in the same area which are similar

except for the past acreage of the commodity.

1971 - Subsec. (f). Pub. L. 92-10 added subsec. (f).

1970 - Subsec. (d). Pub. L. 91-524, Sec. 605(1), temporarily

added subsec. (d). See Effective and Termination Dates of 1970

Amendment note below.

Subsec. (e). Pub. L. 91-524, Sec. 404(3), temporarily added

subsec. (e). See Effective and Termination Dates of 1970 Amendment

note below.

1961 - Pub. L. 87-33 substituted provisions permitting displaced

owners to release part or all of any allotment remaining in the

allotment pool for reapportionment to other farms in the county

having allotments for such commodity, for provisions making

sections 1344(m)(2), 1353(e), and 1358(g) of this title

inapplicable to allotments held under the lease by a displaced

owner.

1960 - Subsec. (a). Pub. L. 86-423 inserted sentences providing

that the former owner of land shall not be considered to have been

displaced during any period for which such land is leased to him if

his occupancy under the lease immediately follows after his

occupancy as owner, authorizing retransfer of allotments in cases

where a former owner leases land formerly owned by him prior to two

years from April 9, 1960, and making sections 1344(m)(2), 1353(e),

and 1358(g) of this title inapplicable to allotments on lands held

under the lease by a displaced owner which are subject to the

provisions of this amendment.

EFFECTIVE AND TERMINATION DATES OF 1970 AMENDMENT

Sections 404 and 605 of Pub. L. 91-524, as amended by Pub. L.

93-86, Sec. 1(11), (22), Aug. 10, 1973, 87 Stat. 229, 235, provided

that the amendments made by those sections are effective only with

respect to 1971 through 1977 crops.

SAVINGS PROVISION

Section 378(d) of act Feb. 16, 1938, as added by Pub. L. 85-835,

Sec. 501, provided in part that: ''but any transfer or reassignment

of allotment heretofore made under the provisions of these sections

(former sections 1313(h), 1334(d), 1344(h), 1353(f), and 1358(h) of

this title) shall remain in effect, and any displaced farm owner

for whom an allotment has been established under such repealed

sections (such sections) shall not be eligible for additional

allotment under subsection (a) of this section (subsec. (a) of this

section) because of such displacement.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1314c of this title.

-CITE-

7 USC Sec. 1379 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part C - Administrative Provisions

subpart ii - adjustment of quotas and enforcement

-HEAD-

Sec. 1379. Reconstitution of farms

-STATUTE-

(a) Transfers from parent farm

In any case in which the ownership of a tract of land is

transferred from a parent farm, the acreage allotments, history

acreages, and base acreages for the farm shall be divided between

such tract and the parent farm in the same proportion that the

cropland acreage in such tract bears to the cropland acreage in the

parent farm, except that the Secretary shall provide by regulation

the method to be used in determining the division, if any, of the

acreage allotments, histories, and bases in any case in which -

(1) the tract of land transferred from the parent farm has been

or is being transferred to any agency having the right to acquire

it by eminent domain;

(2) the tract of land transferred from the parent farm is to be

used for nonagricultural purposes;

(3) the parent farm resulted from a combination of two or more

tracts of land and records are available showing the contribution

of each tract to the allotments, histories, and bases of the

parent farm;

(4) the appropriate county committee determines that a division

based on cropland proportions would result in allotments and

bases not representative of the operations normally carried out

on any transferred tract during the base period;

(5) the parent farm is divided among heirs in settling an

estate; or

(6) neither the tract transferred from the parent farm nor the

remaining portion of the parent farm receives allotments in

excess of allotments for similar farms in the community having

allotments of the commodity or commodities involved and such

allotments are consistent with good land uses, but this clause

(6) shall not be applicable in the case of burley tobacco.

(b) Combination of tracts in contiguous counties

In any case in which two or more tracts of land are located in

contiguous counties in the same State and are owned by the same

person, the Secretary shall permit such tracts to be combined as

one farm if (1) a Burley or flue-cured tobacco poundage quota is

established for one or more of such tracts, and (2) the relevant

county committees determine that such tracts will be operated as a

single farming unit.

(c) Burley tobacco poundage quotas

When a farm is divided through reconstitution, the burley tobacco

poundage quota which transfers with the divided land shall not be

less than 1,000 pounds (except when the reconstitution of the farm

is among immediate family members or pursuant to probate

proceedings).

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 379, as added Pub. L.

89-321, title VII, Sec. 707, Nov. 3, 1965, 79 Stat. 1211; amended

Pub. L. 91-524, title IV, Sec. 404(4), title VI, Sec. 605(2), Nov.

30, 1970, 84 Stat. 1366, 1378; Pub. L. 98-180, title II, Sec.

212(b), Nov. 29, 1983, 97 Stat. 1149; Pub. L. 101-577, Sec. 2(c),

Nov. 15, 1990, 104 Stat. 2856; Pub. L. 102-237, title I, Sec.

116(3), Dec. 13, 1991, 105 Stat. 1841; Pub. L. 106-78, title VIII,

Sec. 803(c)(6)(C), Oct. 22, 1999, 113 Stat. 1178.)

-MISC1-

AMENDMENTS

1999 - Subsec. (b). Pub. L. 106-78 inserted ''or flue-cured''

after ''Burley''.

1991 - Subsecs. (a)(4) to (7), (c). Pub. L. 102-237 struck out

''or'' at end of par. (4), substituted ''; or'' for period at end

of par. (5), substituted a period for ''; or'' at end of par. (6),

and redesignated par. (7) as subsec. (c) and moved subsec. (c) to

follow subsec. (b).

1990 - Subsec. (a)(7). Pub. L. 101-577 added par. (7).

1983 - Pub. L. 98-180 designated existing provisions as subsec.

(a) and added subsec. (b).

1970 - Pub. L. 91-524 temporarily inserted provision that term

''acreage allotments'' include the farm base acreage allotments for

upland cotton and the domestic allotment for wheat. See Effective

and Termination Dates of 1970 Amendment note below.

EFFECTIVE AND TERMINATION DATES OF 1970 AMENDMENT

Sections 404 and 605 of Pub. L. 91-524, as amended by Pub. L.

93-86, Sec. 1(11), (22), Aug. 10, 1973, 87 Stat. 229, 235, provided

that the amendments made by those sections are effective only with

respect to 1971 through 1977 crops.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1314d of this title.

-CITE-

7 USC Part D - Wheat Marketing Allocation 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part D - Wheat Marketing Allocation

.

-HEAD-

Part D - Wheat Marketing Allocation

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 7301, 7992 of this title.

-CITE-

7 USC Sec. 1379a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part D - Wheat Marketing Allocation

-HEAD-

Sec. 1379a. Legislative findings

-STATUTE-

Wheat, in addition to being a basic food, is one of the great

export crops of American agriculture and its production for

domestic consumption and for export is necessary to the maintenance

of a sound national economy and to the general welfare. The

movement of wheat from producer to consumer, in the form of the

commodity or any of the products thereof, is preponderantly in

interstate and foreign commerce. Unreasonably low prices of wheat

to producers impair their purchasing power for nonagriculture

products and place them in a position of serious disparity with

other industrial groups. The conditions affecting the production

of wheat are such that without Federal assistance, producers cannot

effectively prevent disastrously low prices for wheat. It is

necessary, in order to assist wheat producers in obtaining fair

prices, to regulate the price of wheat used for domestic food and

for exports in the manner provided in this part.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 379a, as added Pub. L.

87-703, title III, Sec. 324(2), Sept. 27, 1962, 76 Stat. 626.)

-MISC1-

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(3) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(H) of this title.

-CITE-

7 USC Sec. 1379b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part D - Wheat Marketing Allocation

-HEAD-

Sec. 1379b. Wheat marketing allocation; amount; national allocation

percentage; commercial and noncommercial wheat-producing areas

-STATUTE-

During any marketing year for which a marketing quota is in

effect for wheat, beginning with the marketing year for the 1964

crop, a wheat marketing allocation program shall be in effect as

provided in this part. Whenever a wheat marketing allocation

program is in effect for any marketing year the Secretary shall

determine (1) the wheat marketing allocation for such year which

shall be the amount of wheat which in determining the national

marketing quota for such marketing year he estimated would be used

during such year for food products for consumption in the United

States, and that portion of the amount of wheat which in

determining such quota he estimated would be exported in the form

of wheat or products thereof during the marketing year on which the

Secretary determines that marketing certificates shall be issued to

producers in order to achieve, insofar as practicable, the price

and income objectives of this part, and (2) the national allocation

percentage which shall be the percentage which the national

marketing allocation is of the national marketing quota. Each farm

shall receive a wheat marketing allocation for such marketing year

equal to the number of bushels obtained by multiplying the number

of acres in the farm acreage allotment for wheat by the projected

farm yield, and multiplying the resulting number of bushels by the

national allocation percentage. If a noncommercial wheat-producing

area is established for any marketing year, farms in such area

shall be given wheat marketing allocations which are determined by

the Secretary to be fair and reasonable in relation to the wheat

marketing allocation given producers in the commercial

wheat-producing area.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 379b, as added Pub. L.

87-703, title III, Sec. 324(2), Sept. 27, 1962, 76 Stat. 626;

amended Pub. L. 88-297, title II, Sec. 202(10), (11), Apr. 11,

1964, 78 Stat. 179, 180; Pub. L. 89-321, title V, Sec. 502, 503,

Nov. 3, 1965, 79 Stat. 1202; Pub. L. 90-559, Sec. 1(1), Oct. 11,

1968, 82 Stat. 996; Pub. L. 91-524, title IV, Sec. 402(a), (b)(B),

(C), Nov. 30, 1970, 84 Stat. 1362, as renumbered and amended Pub.

L. 93-86, Sec. 1(9), Aug. 10, 1973, 87 Stat. 225.)

-MISC1-

AMENDMENTS

1973 - Subsec. (c)(1). Pub. L. 91-524, Sec. 402(b)(B)(i)-(vi), as

added by Pub. L. 93-86, temporarily substituted ''payments

authorized by section 1445a(c) of this title'' for ''certificates

on wheat'', ''wheat allotment'' for ''domestic wheat allotment'',

''thirteen and three-tenths million'' for ''13.3 million'', ''1971

crop; plus, if required by the Secretary, (ii) the acreage'' for

''1971 crop or 15 million acres in the case of the 1972 or 1973

crop, plus (ii) the acreage'', ''The Secretary is authorized for

the 1974 through 1977 crops to limit'' for ''The Secretary is

authorized for the 1971, 1972, and 1973 crops to limit'', ''such

percentage of the acreage allotment'' for ''such percentage of the

domestic wheat allotment as he determines necessary to provide an

orderly transition to the program provided for under this

section'', ''The Secretary shall permit producers to plant and

graze on set-aside acreage sweet sorghum, and the Secretary may

permit, subject to such terms and conditions as he may prescribe,

all or any of the set-aside acreage to be devoted to hay and'' for

''Grazing shall not be permitted during any of the five principal

months of the normal growing season as determined by the county

committee established pursuant to section 590h(b) of Title 16 and

subject to this limitation (1) the Secretary shall permit producers

to plant and graze on the set-aside acreage sweet sorghum, and (2)

the Secretary may permit, subject to such terms and conditions as

he may prescribe, all or any of the set-aside acreage to be devoted

to'', and ''flaxseed, triticale, oats, rye, or other commodity''

for ''flaxseed, or other commodity''. See Effective and

Termination Dates of 1973 Amendment note below.

Subsec. (c)(2). Pub. L. 91-524, Sec. 402(b)(B)(i), as added by

Pub. L. 93-86, temporarily substituted ''payments authorized by

section 1445a(c) of this title'' for ''certificates authorized in

subsection (b) of this section''. See Effective and Termination

Dates of 1973 Amendment note below.

Subsec. (c)(3). Pub. L. 91-524, Sec. 402(b)(B)(vii), as added by

Pub. L. 93-86, temporarily inserted provisions authorizing the

Secretary, in the case of programs for the 1974 through 1977 crops,

to pay an appropriate share of the cost of practices designated to

protect set-aside acreage against erosion, insects, weeds, and

rodents and to devote such acreage to wildlife food plots or

wildlife habitat. See Effective and Termination Dates of 1973

Amendment note below.

Subsec. (c)(4). Pub. L. 91-524, Sec. 402(b)(B)(i), as added by

Pub. L. 93-86, temporarily substituted ''payments authorized by

section 1445a(c) of this title'' for ''marketing certificates''.

See Effective and Termination Dates of 1973 Amendment note below.

Subsec. (d). Pub. L. 91-524, Sec. 402(b)(C), as added by Pub. L.

93-86, temporarily struck out ''certificates issued and of'' before

''payments made''. See Effective and Termination Dates of 1973

Amendment note below.

Subsec. (e). Pub. L. 91-524, Sec. 402(b)(C), as added by Pub. L.

93-86, temporarily struck out references to the issuance of

certificates. See Effective and Termination Dates of 1973

Amendment note below.

Subsec. (g). Pub. L. 91-524, Sec. 402(b)(C), as added by Pub. L.

93-86, temporarily reenacted subsec. (g) without change. See

Effective and Termination Dates of 1973 Amendment note below.

Subsec. (i). Pub. L. 91-524, Sec. 402(b)(C), as added by Pub. L.

93-86, temporarily reenacted subsec. (i) without change. See

Effective and Termination Dates of 1973 Amendment note below.

1970 - Pub. L. 91-524, Sec. 402(a), formerly Sec. 402,

temporarily substituted provisions covering the issuance of

domestic certificates to producers and a voluntary set-aside

program for wheat for provisions for a wheat marketing allocation

program for the 1964 to 1970 crops. See Effective and Termination

Dates of 1970 Amendment note below.

1968 - Pub. L. 90-559 temporarily provided for a one year

extension through 1970.

1965 - Pub. L. 89-321, Sec. 502, temporarily amended section

generally and, among other changes, extended the wheat marketing

allocation program from 1964 and 1965 to 1966 through 1969, put a

minimum limitation of five hundred million bushels on the amount of

wheat included in the marketing allocation for food products for

consumption in the United States, and required the cost of any

domestic marketing certificates issued to producers in excess of

the number of certificates acquired by processors as a result of

the application of the five hundred million bushel minimum or an

overestimate of the amount of wheat used during such year for food

products for consumption in the United States to be borne by the

Commodity Credit Corporation. See Effective and Termination Dates

of 1965 Amendment note below.

Pub. L. 89-321, Sec. 503, substituted ''projected farm yield''

for ''normal wheat for the farm as projected by the Secretary''.

1964 - Pub. L. 88-297, Sec. 202(10), temporarily struck out

introductory phrase ''During any marketing year for which a

marketing quota is in effect for wheat'', reduced the national

allocation percentage by the expected production on the acreage

allotments for farms which will not be in compliance with the

requirements of the program, and struck out provisions for wheat

marketing allocations to non-commercial wheat-producing areas

reasonably related to such allocations to producers in commercial

wheat-producing areas. See Effective and Termination Dates of 1964

Amendment note below.

Pub. L. 88-297, Sec. 202(11), substituted ''food products for

consumption in the United States'' for ''human consumption in the

United States, as food, food products, and beverages, composed

wholly or partly of wheat'' in second sentence.

EFFECTIVE AND TERMINATION DATES OF 1973 AMENDMENT

Section 402(b)(B) of Pub. L. 91-524, as added by section 1(9) of

Pub. L. 93-86, provided that the amendment made by that section is

effective with respect to 1974 through 1977 crops of wheat.

Section 402(b)(C) of Pub. L. 91-524, as added by section 1(9) of

Pub. L. 93-86, provided that the amendment made by that section is

effective for 1974 through 1977 crops.

EFFECTIVE AND TERMINATION DATES OF 1970 AMENDMENT

Section 402(a), formerly section 402, of Pub. L. 91-524 provided

that the amendment made by that section is effective only with

respect to 1971, 1972, and 1973 crops of wheat.

EFFECTIVE AND TERMINATION DATES OF 1965 AMENDMENT

Section 502 of Pub. L. 89-321, as amended by Pub. L. 90-559, Sec.

1(1), Oct. 11, 1968, 82 Stat. 996, provided that the amendment made

by that section is effective only with respect to crops of wheat

planted for harvest in calendar years 1966 through 1970, and

marketing years for such crops.

Section 503 of Pub. L. 89-321 provided that the amendment made by

that section is effective beginning with 1970 crop.

EFFECTIVE AND TERMINATION DATES OF 1964 AMENDMENT

Section 202(10) of Pub. L. 88-297 provided that the amendment

made by that section is effective only with respect to crops

planted for harvest in 1964 and 1965.

Section 202(11) of Pub. L. 88-297 provided that the amendment

made by that section is effective with respect to crops planted for

harvest in calendar year 1966 and any subsequent year.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(3) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(H) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 through 1990 crops of wheat, see

section 310(b) of Pub. L. 99-198, set out as a note under section

1331 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

Section 402(b)(A) of Pub. L. 91-524, as added by section 1(9) of

Pub. L. 93-86, provided that: ''Section 379b of the Agricultural

Adjustment Act of 1938 (which provides for a wheat marketing

certificate program) (this section) shall not be applicable to the

1974 through 1977 crops of wheat, except as provided in paragraphs

(B) and (C) of this subsection (amending this section and section

1379c of this title).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1334 of this title.

-CITE-

7 USC Sec. 1379c 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part D - Wheat Marketing Allocation

-HEAD-

Sec. 1379c. Marketing certificates

-STATUTE-

(a) Issuance; amount; reduction; sharing among producers; domestic

and export certificates

The Secretary shall provide for the issuance of wheat marketing

certificates for each marketing year for which a wheat marketing

allocation program is in effect for the purpose of enabling

producers on any farm with respect to which certificates are issued

to receive, in addition to the other proceeds from the sale of

wheat, an amount equal to the value of such certificates. The

wheat marketing certificates issued with respect to any farm for

any marketing year shall be in the amount of the farm wheat

marketing allocation for such year, but not to exceed (i) the

actual acreage of wheat planted on the farm for harvest in the

calendar year in which the marketing year begins multiplied by the

normal yield of wheat for the farm, plus (ii) the amount of wheat

stored under subsection (b) of this section or to avoid or postpone

a marketing quota penalty, which is released from storage during

the marketing year on account of underplanting or underproduction,

and if this limitation operates to reduce the amount of wheat

marketing certificates which would otherwise be issued with respect

to the farm, such reduction shall be made first from the amount of

export certificates which would otherwise be issued. The Secretary

shall provide for the sharing of wheat marketing certificates among

producers on the farm on the basis of their respective shares in

the wheat crop produced on the farm, or the proceeds therefrom;

except that in any case in which the Secretary determines that such

basis would not be fair and equitable, the Secretary shall provide

for such sharing on such other basis as he may determine to be fair

and equitable. The Secretary shall, in accordance with such

regulation as he may prescribe, provide for the issuance of

domestic marketing certificates for the portion of the wheat

marketing allocation representing wheat used for food products for

consumption in the United States. The Secretary shall also provide

for the issuance of export marketing certificates to eligible

producers at the end of the marketing year on a pro rata basis.

For such purposes, the value per bushel of export marketing

certificates shall be an average of the total net proceeds from the

sale of export marketing certificates during the marketing year

after deducting the total amount of wheat export subsidies paid to

exporters. An acreage on the farm which the Secretary finds was

not planted to wheat for harvest in 1965 because of drought, flood,

or other natural disaster shall be deemed by the Secretary to be an

actual acreage of wheat planted for harvest for purposes of this

subsection, provided such acreage is not subsequently planted to

any other price supported crop for 1965. An acreage on the farm not

planted to wheat because of drought, flood, or other natural

disaster shall be deemed to be an actual acreage of wheat planted

for harvest for purposes of this subsection provided such acreage

is not subsequently planted to any crop for which there are

marketing quotas or voluntary adjustment programs in effect.

Producers on any farm who have planted not less than 90 per centum

of the acreage of wheat required to be planted in order to earn the

full amount of marketing certificates for which the farm is

eligible shall be deemed to have planted the entire acreage

required to be planted for that purpose.

(b) Producers eligible for certificates; storage conditions

No producer shall be eligible to receive wheat marketing

certificates with respect to any farm for any marketing year in

which a marketing quota penalty is assessed for any commodity on

such farm or in which the farm has not complied with the land-use

requirements of section 1339 of this title to the extent prescribed

by the Secretary, or in which, except as the Secretary may by

regulation prescribe, the producer exceeds the farm acreage

allotment on any other farm for any commodity in which he has an

interest as a producer. No producer shall be deemed to have

exceeded a farm acreage allotment for wheat if the entire amount of

the farm marketing excess is delivered to the Secretary or stored

in accordance with applicable regulations to avoid or postpone

payment of the penalty. No producer shall be deemed to have

exceeded the farm acreage allotment for wheat on any other farm if

such farm is exempt from the farm marketing quota for such crop

under section 1335 of this title. Any wheat delivered to the

Secretary hereunder shall become the property of the United States

and shall be disposed of by the Secretary for relief purposes in

the United States or in foreign countries or in such other manner

as he shall determine will divert it from the normal channels of

trade and commerce. Notwithstanding any other provision of this

chapter, the Secretary may provide that a producer shall not be

eligible to receive marketing certificates, or may adjust the

amount of marketing certificates to be received by the producer,

with respect to any farm for any year in which a variety of wheat

is planted on the farm which has been determined by the Secretary,

after consultation with State Agricultural Experiment Stations,

agronomists, cereal chemists and other qualified technicians, to

have undesirable milling or baking qualities and has made public

announcement thereof.

(c) Face value

The Secretary shall determine and proclaim for each marketing

year the face value per bushel of wheat marketing certificates.

The face value per bushel of domestic certificates shall be the

amount by which the level of price support for wheat accompanied by

domestic certificates exceeds the level of price support for wheat

not accompanied by certificates (noncertificate wheat).

(d) Statement or form of certificates and transfers

Marketing certificates and transfers thereof shall be represented

by such documents, marketing cards, records, accounts,

certifications, or other statements or forms as the Secretary may

prescribe.

(e) Failure of producer to comply with programs; issuance of

certificates

In any case in which the failure of a producer to comply fully

with the term and conditions of the programs formulated under this

chapter preclude the issuance of marketing certificates, the

Secretary may, nevertheless, issue such certificates in such

amounts as he determines to be equitable in relation to the

seriousness of the default.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 379c, as added Pub. L.

87-703, title III, Sec. 324(2), Sept. 27, 1962, 76 Stat. 627;

amended Pub. L. 88-297, title II, Sec. 202(12)-(14), Apr. 11, 1964,

78 Stat. 180, 181; Pub. L. 89-112, Sec. 3, Aug. 6, 1965, 79 Stat.

447; Pub. L. 89-321, title V, Sec. 508, 510(a), 513(b), (c), 515,

517, Nov. 3, 1965, 79 Stat. 1204-1206; Pub. L. 89-451, Sec. 3, June

17, 1966, 80 Stat. 202; Pub. L. 91-524, title IV, Sec. 402(a),

(b)(D), Nov. 30, 1970, 84 Stat. 1364, as renumbered and amended

Pub. L. 93-86, Sec. 1(9), Aug. 10, 1973, 87 Stat. 225.)

-MISC1-

AMENDMENTS

1973 - Subsec. (a)(1). Pub. L. 91-524, Sec. 402(b)(D), as added

by Pub. L. 93-86, temporarily substituted references to a farm

acreage allotment for references to the farm domestic allotment

wherever appearing, struck out provisions limiting the impact of

the section to the 1972 and 1973 crops of wheat, substituted

''estimated national average yield for the crop for which the

determination is being made will produce the quantity (less

imports) that he estimates will be utilized domestically and for

export during the marketing year for such crop. If the Secretary

determines that carryover stocks are excessive or an increase in

stocks is needed to assure a desirable carryover, he may adjust the

allotment by the amount he determines will accomplish the desired

decrease or increase in carryover stocks'' for ''estimated national

yield will result in marketing certificates being issued to

producers participating in the program in an amount equal to the

amount of wheat which he estimates will be used for food products

for consumption in the United States during the marketing year for

the crop (not less than 535 million bushels)'' in the provisions

covering the determination of the estimated national yield, and

inserted ''(1973 national domestic allotment in the case of

apportionment of the 1974 national acreage allotment)'' before

''adjusted to the extent deemed necessary''. See Effective and

Termination Dates of 1973 Amendment note below.

Subsec. (a)(2). Pub. L. 91-524, Sec. 402(b)(D), as added by Pub.

L. 93-86, temporarily struck out ''domestic'' before ''acreage

allotment'' and ''wheat allotment''. See Effective and Termination

Dates of 1973 Amendment note below.

Subsec. (a)(3). Pub. L. 91-524, Sec. 402(b)(D), as added by Pub.

L. 93-86, temporarily struck out ''domestic'' before ''allotment''

and ''wheat allotment'' wherever appearing and struck out

provisions establishing special requirements to be met in

determining the allotment for the 1971 crop of wheat. See

Effective and Termination Dates of 1973 Amendment note below.

Subsec. (a)(4), (5). Pub. L. 91-524, Sec. 402(b)(D), as added by

Pub. L. 93-86, temporarily struck out ''domestic'' before

''allotment'' wherever appearing. See Effective and Termination

Dates of 1973 Amendment note below.

Subsec. (a)(6). Pub. L. 91-524, Sec. 402(b)(D), as added by Pub.

L. 93-86, temporarily reenacted par. (6) without change. See

Effective and Termination Dates of 1973 Amendment note below.

Subsec. (b)(1). Pub. L. 91-524, Sec. 402(b)(D), as added by Pub.

L. 93-86, temporarily struck out ''domestic'' before ''allotment''

wherever appearing and inserted '', guar, castor beans, cotton,

triticale, oats, rye, or such other crops as the Secretary may deem

appropriate'' after ''feed grains for which there is a set-aside

program in effect''. See Effective and Termination Dates of 1973

Amendment note below.

Subsec. (b)(2). Pub. L. 91-524, Sec. 402(b)(D), as added by Pub.

L. 93-86, temporarily struck out ''domestic'' before ''allotment''

wherever appearing and substituted ''payments'' for

''certificates'' and ''section 1445a(c) of this title'' for ''this

chapter''. See Effective and Termination Dates of 1973 Amendment

note below.

1970 - Pub. L. 91-524, Sec. 402(a), formerly Sec. 402,

temporarily substituted provisions for the apportionment of the

farm domestic allotment for each crop of wheat among the States for

provisions covering the marketing certificates program. See

Effective and Termination Dates of 1970 Amendment note below.

1966 - Subsec. (a). Pub. L. 89-451 substituted ''any crop for

which there are marketing quotas or voluntary adjustment programs

in effect'' for ''any other income-producing crops during such

year'' in penultimate sentence.

1965 - Subsec. (a). Pub. L. 89-321, Sec. 508, 513(b), authorized

the Secretary to provide for the sharing of wheat marketing

certificates among producers on a fair and equitable basis even

though such basis might be other than the basis of their respective

shares in the wheat crop produced on the farm, provided that

acreage not planted to wheat because of drought, flood, or other

natural disaster be deemed, with certain conditions, be planted for

harvest for purposes of this subsection, and expanded the reference

to the issuance of export marketing certificates by requiring their

issuance on a pro rata basis and providing for the determination of

such certificate's value per bushel.

Pub. L. 89-112 provided that the Secretary shall deem acreage on

the farm which the Secretary finds was not planted to wheat for

harvest in 1965 because of drought, flood, or other natural

disaster, to be an actual acreage of wheat planted for harvest when

that acreage was not subsequently planted to any other price

supported crop for 1965.

Subsec. (b). Pub. L. 89-321, Sec. 510(a), 517 substituted

''projected farm yield'' for ''normal yield of wheat per acre

established for the farm'', permitted delivery to the Secretary of

the wheat produced on excess acreage as an additional means of

disposing of excess wheat so as to allow a producer to be deemed

not to have exceeded the farm acreage allotment for wheat for

purposes of this section, and provided for the disposition of wheat

delivered to the Secretary and the adjustment of certificates to a

producer who has produced an undesirable variety of wheat following

public announcement by the Secretary of its undesirable

characteristics.

Subsec. (c). Pub. L. 89-321, Sec. 513(c), struck out provisions

that the face value per bushel of export certificates shall be the

amount by which the level of price support for wheat accompanied by

export certificates exceeds the level of price support for

noncertificate wheat.

Subsec. (e). Pub. L. 89-321, Sec. 515, added subsec. (e).

1964 - Subsec. (a). Pub. L. 88-297, Sec. 202(12), inserted

''under subsection (b) of this section or'' after ''stored'' in

second sentence, added to such sentence provision for reduction of

wheat marketing certificates from amount of export certificates,

and inserted provision for issuance of domestic marketing

certificates for wheat used for domestic consumption and export

marketing certificates for wheat used for export.

Subsec. (b). Pub. L. 88-297, Sec. 202(13), temporarily authorized

producers who exceeded their wheat allotments to store their excess

wheat in accordance with regulations issued by the Secretary and be

eligible for wheat marketing certificates, prohibited wheat stored

under this provision from being removed from storage until a

subsequent year when acreage allotment was underplanted or the

production on the acreage allotment was less than normal, required

the producer (for removal of the wheat contrary to these

conditions) to pay an amount one and one-half times the value of

the wheat marketing certificates issued with respect to the farm

for the year in which the wheat on the acreage in excess of the

allotment was produced, and made producers who exceeded their

allotment and stored their excess wheat ineligible for diversion

payments. See Effective and Termination Dates of 1964 Amendment

note below.

Subsec. (c). Pub. L. 88-297, Sec. 202(14), struck out

introductory phrase ''Whenever a wheat marketing allocation program

is in effect for any marketing year'' from first sentence,

substituted in such sentence ''each marketing year'' for ''such

marketing year'', inserted in such sentence ''wheat'' before

''marketing certificates'', substituted in second sentence

''domestic certificates shall be the amount'' for ''marketing

certificates shall be equal to the amount'' and ''domestic

certificates'' for ''certificates'' before ''exceeds'', and

inserted to such sentence provision for face value per bushel of

export certificates.

EFFECTIVE AND TERMINATION DATES OF 1973 AMENDMENT

Section 402(b)(D) of Pub. L. 91-524, as added by section 1(9) of

Pub. L. 93-86, provided that the amendment made by that section is

effective only with respect to 1974 through 1977 crops of wheat.

EFFECTIVE AND TERMINATION DATES OF 1970 AMENDMENT

Section 402(a), formerly section 402, of Pub. L. 91-524 provided

that the amendment made by that section is effective only with

respect to 1971, 1972, and 1973 crops of wheat.

EFFECTIVE DATE OF 1965 AMENDMENT

Section 508 of Pub. L. 89-321 provided that the amendment made by

that section is effective beginning with crop planted for harvest

in calendar year 1966.

Section 510(a) of Pub. L. 89-321 provided that the amendment made

by that section is effective beginning with 1966 crop.

Section 515 of Pub. L. 89-321 provided that the amendment made by

that section is effective beginning with crop planted for harvest

in calendar year 1964.

EFFECTIVE AND TERMINATION DATES OF 1964 AMENDMENT

Section 202(13) of Pub. L. 88-297, as amended by Pub. L. 89-321,

title V, Sec. 505(2), Nov. 3, 1965, 79 Stat. 1203; Pub. L. 90-559,

Sec. 1(1), Oct. 11, 1968, 82 Stat. 996, provided that the amendment

made by that section is effective with respect to crops planted for

harvest in calendar years 1965 through 1970.

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(3) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(H) of this title.

Section inapplicable to 1991 through 1995 crops of wheat, see

section 303 of Pub. L. 101-624, set out as a note under section

1331 of this title.

Section inapplicable to 1986 through 1990 crops of wheat, see

section 310(b) of Pub. L. 99-198, set out as a note under section

1331 of this title.

Section inapplicable to 1982 through 1985 crops of wheat, see

section 303 of Pub. L. 97-98, set out as a note under section 1331

of this title.

Section inapplicable to 1978 through 1981 crops of wheat, see

section 404 of Pub. L. 95-113, set out as a note under section 1331

of this title.

REDUCTION OF WHEAT STORED BY PRODUCERS PRIOR TO 1971 CROP

Section 407 of Pub. L. 91-524, as amended by section 1(14) of

Pub. L. 93-86, provided that: ''The amount of any wheat stored by a

producer under section 379c(b) of the Agricultural Adjustment Act

of 1938, as amended (subsection (b) of this section), prior to the

1971 crop of wheat may be reduced by the amount by which the actual

total production of the 1971, 1972, or 1973 crop on the farm is

less than the number of bushels determined by multiplying three

times the domestic allotment for such crop on the farm by the yield

established for the farm for the purpose of issuance of domestic

marketing certificates. The provisions of such section shall

continue to apply to the wheat so stored to the extent not

inconsistent therewith. Notwithstanding the foregoing, the

Secretary may authorize release of wheat stored by a producer under

section 379c(b) of the Agricultural Adjustment Act of 1938, as

amended (subsec. (b) of this section), prior to the 1971 crop,

whenever he determines such release will not significantly affect

market prices for wheat. As a condition of release, the Secretary

may require a refund of such portion of the value of certificates

received in the crop year the excess wheat was produced as he deems

appropriate considering the period of time the excess wheat has

been in storage and the need to provide fair and equitable

treatment among all wheat program participants.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1445a of this title.

-CITE-

7 USC Sec. 1379d 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part D - Wheat Marketing Allocation

-HEAD-

Sec. 1379d. Marketing restrictions

-STATUTE-

(a) Transfers of certificates; purchases by Commodity Credit

Corporation

Marketing certificates shall be transferable only in accordance

with regulations prescribed by the Secretary. Any unused

certificates legally held by any person shall be purchased by

Commodity Credit Corporation if tendered to the Corporation for

purchase in accordance with regulations prescribed by the

Secretary.

(b) Processor and exporter acquisition of domestic and export

certificates; international trade, expansion; refunds or

credits for certificates; exemptions from requirements

During any marketing year for which a wheat marketing allocation

program is in effect, (i) all persons engaged in the processing of

wheat into food products shall, prior to marketing any such food

product or removing such food product for sale or consumption,

acquire domestic marketing certificates equivalent to the number of

bushels of wheat contained in such product and (ii) all persons

exporting wheat shall, prior to such export, acquire export

marketing certificates equivalent to the number of bushels so

exported. The cost of the export marketing certificates per bushel

to the exporter shall be that amount determined by the Secretary on

a daily basis which would make United States wheat and wheat flour

generally competitive in the world market, avoid disruption of

world market prices, and fulfill the international obligations of

the United States. The Secretary may exempt from the requirements

of this subsection wheat exported for donation abroad and other

noncommercial exports of wheat, wheat processed for use on the farm

where grown, wheat produced by a State or agency thereof and

processed for use by the State or agency thereof, wheat processed

for donation, and wheat processed for uses determined by the

Secretary to be noncommercial. Such exemptions may be made

applicable with respect to any wheat processed or exported

beginning July 1, 1964. There shall be exempt from the requirements

of this subsection beverage distilled from wheat prior to July 1,

1964. A beverage distilled from wheat after July 1, 1964, shall be

deemed to be removed for sale or consumption at the time it is

placed in barrels for aging except that upon the giving of a bond

as prescribed by the Secretary, the purchase of and payment for

such marketing certificates as may be required may be deferred

until such beverage is bottled for sale. Wheat shipped to a

Canadian port for storage in bond, or storage under a similar

arrangement, and subsequent exportation, shall be deemed to have

been exported for purposes of this subsection when it is exported

from the Canadian port. Marketing certificates shall be valid to

cover only sales or removals for sale or consumption or

exportations made during the marketing year with respect to which

they are issued, and after being once used to cover a sale or

removal for sale or consumption or export of a food product or an

export of wheat shall be void and shall be disposed of in

accordance with regulations prescribed by the Secretary.

Notwithstanding the foregoing provisions hereof, the Secretary may

require marketing certificates issued for any marketing year to be

acquired to cover sales, removals, or exportations made on or after

the date during the calendar year in which wheat harvested in such

calendar year begins to be marketed as determined by the Secretary

even though such wheat is marketed prior to the beginning of the

marketing year, and marketing certificates for such marketing year

shall be valid to cover sales, removals, or exportations made on or

after the date so determined by the Secretary. Whenever the face

value per bushel of domestic marketing certificates for a marketing

year is different from the face value of domestic marketing

certificates for the preceding marketing year, the Secretary may

require marketing certificates issued for the preceding marketing

year to be acquired to cover all wheat processed into food products

during such preceding marketing year even though the food product

may be marketed or removed for sale or consumption after the end of

the marketing year.

(c) Undertaking to secure marketing of commodity without

certificate

Upon the giving of a bond or other undertaking satisfactory to

the Secretary to secure the purchase of and payment for such

marketing certificates as may be required, and subject to such

regulations as he may prescribe, any person required to have

marketing certificates in order to market or export a commodity may

be permitted to market any such commodity without having first

acquired marketing certificates.

(d) ''Food products'' defined; exemption of flour second clears

As used in this part, the term ''food products'' means flour

(excluding flour second clears not used for human consumption as

determined by the Secretary), semolina, farina, bulgur, beverage,

and any other product composed wholly or partly of wheat which the

Secretary may determine to be a food product. The Secretary may at

his election administer the exemption for wheat processed into

flour second clears through refunds either to processors of such

wheat or to the users of such clears. For the purpose of such

refunds, the wheat equivalent of flour second clears may be

determined on the basis of conversion factors authorized by section

1379f of this title, even though certificates had been surrendered

on the basis of the weight of the wheat.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 379d, as added Pub. L.

87-703, title III, Sec. 324(2), Sept. 27, 1962, 76 Stat. 628;

amended Pub. L. 88-297, title II, Sec. 202(15)-(17), Apr. 11, 1964,

78 Stat. 181, 182; Pub. L. 89-321, title V, Sec. 504(a)-(c),

513(a), Nov. 3, 1965, 79 Stat. 1202, 1203, 1205; Pub. L. 91-524,

title IV, Sec. 403(a)(1), (2), formerly Sec. 403(1), (2), Nov. 30,

1970, 84 Stat. 1366, as renumbered Pub. L. 93-86, Sec. 1(10), Aug.

10, 1973, 87 Stat. 228.)

-REFTEXT-

REFERENCES IN TEXT

This part, referred to in subsec. (d), commences with section

1379a of this title.

-MISC2-

AMENDMENTS

1970 - Subsec. (b). Pub. L. 91-524, temporarily struck out

provision limiting the section to only those marketing years for

which a wheat marketing allocation program is in effect and

inserted provisions authorizing the Secretary to temporarily

suspend the requirement for export marketing certificates for the

period beginning July 1, 1971, and ending June 30, 1974. See

Effective and Termination Dates of 1970 Amendment note below.

1965 - Subsec. (b). Pub. L. 89-321, Sec. 504(a), (c), 513(a),

among other changes, amended second sentence, and also authorized

the Secretary to exempt from the requirements of this subsection

wheat produced by a State or agency thereof and processed for use

by the State or agency thereof, wheat processed for donations, and

wheat processed for uses determined by the Secretary to be

noncommercial, permitted exemptions to be made applicable with

respect to any wheat processed or exported beginning July 1, 1964,

exempted from requirements of this subsection beverage distilled

from wheat prior to July 1, 1964, required beverage distilled from

wheat after July 1, 1964, to be deemed as being removed for sale or

consumption at the time it is placed in barrels for aging,

permitted upon the giving of a bond as prescribed by the Secretary,

the purchase of and payment for such marketing certificates as may

be required to be deferred until such beverage is bottled for sale,

required wheat shipped to a Canadian port for storage in bond, or

storage under a similar arrangement, and subsequent exportation, to

be deemed as having been exported for purposes of this subsection

when it is exported from the Canadian port, and, whenever the face

value per bushel of domestic marketing certificates for a marketing

year is different from the face value of domestic marketing

certificates for the preceding marketing year, empowered the

Secretary to require marketing certificates issued for the

preceding marketing year to be acquired to cover all wheat

processed into food products during such preceding marketing year

even though the food product may be marketed or removed for sale or

consumption after the end of the marketing year.

Subsec. (d). Pub. L. 89-321, Sec. 504(b), excluded four second

clears not used for human consumption from term ''food products'',

authorized the Secretary at his election to administer the

exemption for wheat processed into flour second clears through

refunds either to processors of such wheat or to the users of such

clears, and permitted, for the purpose of such refunds, the wheat

equivalent of flour second clears to be determined on the basis of

conversion factors authorized by section 1379f of this title, even

though certificates had been surrendered on the basis of the weight

of the wheat.

1964 - Subsec. (a). Pub. L. 88-297, Sec. 202(15), struck out

provisions prohibiting persons from acquiring marketing

certificates from the producer to whom such certificates were

issued, unless such certificates were acquired in connection with

acquisition from such producer of a number of bushels of wheat

equivalent to the marketing certificates and authorizing the CCC to

purchase from producers certificates not accompanied by wheat in

cases where the Secretary determined that it would constitute an

undue hardship to require the producer to transfer his certificates

only in connection with the disposition of wheat and substituted

''by any person'' for ''by persons other than the producer to whom

such certificates are issued''.

Subsec. (b). Pub. L. 88-297, Sec. 202(16), in cl. (i) substituted

''marketing any such food product or removing such food product for

sale or consumption'' for ''marketing any such product for human

food in the United States'' and inserted ''domestic'' before

''marketing certificates''; in cl. (ii) struck out ''or food

products'' after ''wheat'' and inserted ''export'' before

''marketing certificates''; inserted references to removals for

sale or consumption in two other places and to removals in two

places to make it clear that certificates were required on all

wheat processed into food products whether sold, removed for sale,

or removed for consumption; required the CCC to refund to the

exporter such part of the cost of the certificate as the Secretary

determined would make United States wheat and wheat flour generally

competitive in the world market, avoid disruption of world market

prices, and fulfill the international obligations of the United

States; and authorized the Secretary to exempt from the requirement

to have marketing certificates, wheat which was donated abroad and

wheat processed for use on the farm where grown.

Subsec. (d). Pub. L. 88-297, Sec. 202(17), redefined ''food

products'' to mean flour, semolina, farina, bulgur, beverage, and

any other product composed wholly or partly of wheat which the

Secretary may determine to be a food product instead of any product

composed wholly or partly of wheat to be used for human

consumption, including beverage.

EFFECTIVE AND TERMINATION DATES OF 1970 AMENDMENT

Section 403(a) of Pub. L. 91-524 provided that the amendment made

by that section is effective only with respect to marketing years

beginning July 1, 1971, July 1, 1972, and July 1, 1973.

EFFECTIVE DATE OF 1965 AMENDMENT

Section 504(a) of Pub. L. 89-321 provided that the amendment made

by that section is effective November 3, 1965.

Section 504(b) of Pub. L. 89-321 provided in part that: ''This

subsection (amending this section) shall be effective as to

products sold, or removed for sale or consumption on or after sixty

days following enactment of this Act (Nov. 3, 1965), unless the

Secretary shall by regulation designate an earlier effective date

within such sixty-day period.''

INAPPLICABILITY OF SECTION

Section inapplicable to 2002 through 2007 crops of covered

commodities, peanuts, and sugar and inapplicable to milk during

period beginning May 13, 2002, through Dec. 31, 2007, see section

7992(a)(3) of this title.

Section inapplicable to 1996 through 2001 crops of loan

commodities, peanuts, and sugar and inapplicable to milk during

period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see

section 7301(a)(1)(H) of this title.

Pub. L. 101-624, title III, Sec. 302, Nov. 28, 1990, 104 Stat.

3400, provided that: ''Sections 379d through 379j of the

Agricultural Adjustment Act of 1938 (7 U.S.C. 1379d-1379j)

(relating to marketing certificate requirements for processors and

exporters) shall not be applicable to wheat processors or exporters

during the period June 1, 1991, through May 31, 1996.''

Pub. L. 99-198, title III, Sec. 309, Dec. 23, 1985, 99 Stat.

1394, provided that: ''Sections 379d, 379e, 379f, 379g, 379h, 379i,

and 379j of the Agricultural Adjustment Act of 1938 (7 U.S.C.

1379d-1379j) (relating to marketing certificate requirements for

processors and exporters) shall not be applicable to wheat

processors or exporters during the period June 1, 1986, through May

31, 1991.''

Pub. L. 97-98, title III, Sec. 302, Dec. 22, 1981, 95 Stat. 1227,

provided that: ''Sections 379d, 379e, 379f, 379g, 379h, 379i, and

379j of the Agricultural Adjustment Act of 1938 (sections 1379d,

1379e, 1379f, 1379g, 1379h, 1379i, and 1379j of this title) (which

deal with marketing certificate requirements for processors and

exporters) shall not be applicable to wheat processors or exporters

during the period June 1, 1982, through May 31, 1986.''

Pub. L. 95-113, title IV, Sec. 403, Sept. 29, 1977, 91 Stat. 926,

provided that: ''Sections 379d, 379e, 379f, 379g, 379h, 379i, and

379j of the Agricultural Adjustment Act of 1938 (sections 1379d,

1379e, 1379f, 1379g, 1379h, 1379i, and 1379j of this title) (which

deal with marketing certificate requirements for processors and

exporters) shall not be applicable to wheat processors or exporters

during the period July 1, 1973, through May 31, 1982.''

Section 403(b) of Pub. L. 91-524, as added by section 1(10) of

Pub. L. 93-86, Aug. 10, 1973, 87 Stat. 228, provided in part that:

''Sections 379d, 379e, 379f, 379g, 379h, 379i, and 379j of the

Agricultural Adjustment Act of 1938 (sections 1379d, 1379e, 1379f,

1379g, 1379h, 1379i and 1379j of this title) (which deal with

marketing certificate requirements for processors and exporters)

shall not be applicable to wheat processed or exported during the

period July 1, 1973 through June 30, 1978.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1379g, 1379i of this

title.

-CITE-

7 USC Sec. 1379e 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 35 - AGRICULTURAL ADJUSTMENT ACT OF 1938

SUBCHAPTER II - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS,

MARKETING QUOTAS, AND MARKETING CERTIFICATES

Part D - Wheat Marketing Allocation

-HEAD-

Sec. 1379e. Assistance in purchase and sale of marketing

certificates; regulations; administrative expenses; interest

-STATUTE-

For the purpose of facilitating the purchase and sale of

marketing certificates, the Commodity Credit Corporation is

authorized to issue, buy, and sell marketing certificates in

accordance with regulations prescribed by the Secretary. Such

regulations may authorize the Corporation to issue and sell

certificates in excess of the quantity of certificates which it

purchases. Such regulations may authorize the Corporation in the

sale of marketing certificates to charge, in addition to the face

value thereof, an amount determined by the Secretary to be

appropriate to cover estimated administrative costs in connection

with the purchase and sale of the certificates and estimated

interest incurred on funds of the Corporation invested in

certificates purchased by it.

-SOURCE-

(Feb. 16, 1938, ch. 30, title III, Sec. 379e, as added Pub. L.

87-703, title III, Sec. 324(2), Sept. 27, 1962, 76 Stat. 628;

amended Pub. L. 89-321, title V, Sec. 516, Nov. 3, 1965, 79 Stat.

1206; Pub. L. 90-559, Sec. 1(6), Oct. 11, 1968, 82 Stat. 996; Pub.

L. 91-524, title IV, Sec. 403(a)(3), Nov. 30, 1970, 84 Stat. 1366.)

-COD-

CODIFICATION

The sentence added by Pub. L. 89-321, as amended