-CITE-
    7 USC CHAPTER 100 - AGRICULTURAL MARKET TRANSITION          01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

-HEAD-
               CHAPTER 100 - AGRICULTURAL MARKET TRANSITION           

-MISC1-
           SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS       
    Sec.                                                     
    7201.       Short title and purpose.                              
    7202.       Definitions.                                          

             SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS         
    7211.       Authorization for use of production flexibility
                 contracts.                                           
    7212.       Elements of contracts.                                
    7213.       Amounts available for contract payments.              
    7214.       Determination of contract payments under contracts.   
    7215.       Applicability of payment limitations.                 
    7216.       Violations of contract.                               
    7217.       Transfer or change of interest in lands subject to
                 contract.                                            
    7218.       Planting flexibility.                                 

     SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
                            DEFICIENCY PAYMENTS
    7231.       Availability of nonrecourse marketing assistance
                 loans.                                               
    7232.       Loan rates for marketing assistance loans.            
    7233.       Term of loans.                                        
    7234.       Repayment of loans.                                   
    7235.       Loan deficiency payments.                             
    7236.       Special marketing loan provisions for upland cotton.  
    7236a.      Special competitive provisions for extra long staple
                 cotton.                                              
    7237.       Availability of recourse loans for high moisture feed
                 grains and seed cotton and other fibers.             

                     SUBCHAPTER IV - OTHER COMMODITIES                 

                              PART A - DAIRY                          
    7251.       Milk price support program.                           
    7252.       Repealed.                                             
    7253.       Consolidation and reform of Federal milk marketing
                 orders.                                              
    7254.       Effect on fluid milk standards in State of California.
    7255.       Milk manufacturing marketing adjustment.              
    7256.       Northeast Interstate Dairy Compact.                   
    7257.       Authority to assist in establishment and maintenance
                 of one or more export trading companies.             
    7258.       Standby authority to indicate entity best suited to
                 provide international market development and export
                 services.                                            
    7259.       Study and report regarding potential impact of Uruguay
                 Round on prices, income, and government purchases.   

                              PART B - SUGAR                          
    7271.       Repealed.                                             
    7272.       Sugar program.                                        

                       SUBCHAPTER V - ADMINISTRATION                   
    7281.       Administration.                                       
    7282.       Adjustments of loans.                                 
    7283.       Commodity Credit Corporation interest rate.           
    7284.       Personal liability of producers for deficiencies.     
    7285.       Commodity Credit Corporation sales price restrictions.
    7286.       Commodity certificates.                               

             SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY         
    7301.       Suspension and repeal of permanent price support
                 authority.                                           
    7302.       Effect of chapter.                                    

    SUBCHAPTER VII - COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE
    7311.       Establishment.                                        
    7312.       Composition.                                          
    7313.       Comprehensive review of past and future of production
                 agriculture.                                         
    7314.       Reports.                                              
    7315.       Powers.                                               
    7316.       Commission procedures.                                
    7317.       Personnel matters.                                    
    7318.       Termination of Commission.                            

           SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS       
    7331.       Options pilot program.                                
    7332.       Risk management education.                            
    7333.       Administration and operation of noninsured crop
                 assistance program.                                  
    7334.       Flood risk reduction.                                 

-End-

-CITE-
    7 USC SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS   01/03/2007 

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

-HEAD-
           SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS       

-End-

-CITE-
    7 USC Sec. 7201                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

-HEAD-
    Sec. 7201. Short title and purpose

-STATUTE-
    (a) Short title
      This chapter may be cited as the "Agricultural Market Transition
    Act".
    (b) Purpose
      It is the purpose of this chapter - 
        (1) to authorize the use of binding production flexibility
      contracts between the United States and agricultural producers to
      support farming certainty and flexibility while ensuring
      continued compliance with farm conservation and wetland
      protection requirements;
        (2) to make nonrecourse marketing assistance loans and loan
      deficiency payments available for certain crops;
        (3) to improve the operation of farm programs for milk,
      peanuts, and sugar; and
        (4) to establish a commission to undertake a comprehensive
      review of past and future production agriculture in the United
      States.

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

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    title", meaning title I of Pub. L. 104-127, Apr. 4, 1996, 110 Stat.
    896, which enacted this chapter and section 6933 of this title,
    amended sections 1308, 1308-1, 1308-3, 1358-1, 1358b, 1358c, 1359a,
    1373, 1441, 1445j, 1508, 1516, 4504, 6401, 6402, 6413, 6414, and
    6932 of this title and sections 713a-14, 714b, 714i, and 714k of
    Title 15, Commerce and Trade, repealed sections 1426, 1433f, 1441-
    2, 1444-2, 1444f, 1445b-3a, 1445c-3, 1445h, 1446e to 1446h, and
    1519 of this title, enacted provisions set out as notes under
    sections 1373, 1446e, 1446e-1, and 1508 of this title, and repealed
    provisions set out as a note under section 1421 of this title. For
    complete classification of title I to the Code, see Tables.

-MISC1-
                       SHORT TITLE OF 1998 AMENDMENT                   
      Pub. L. 105-228, Sec. 1, Aug. 12, 1998, 112 Stat. 1516, provided
    that: "This Act [amending section 7212 of this title] may be cited
    as the 'Emergency Farm Financial Relief Act'."

                                SHORT TITLE                            
      Section 1(a) of Pub. L. 104-127 provided that: "This Act [see
    Tables for classification] may be cited as the 'Federal Agriculture
    Improvement and Reform Act of 1996'."

                               SEVERABILITY                           
      Section 928 of Pub. L. 104-127 provided that: "If any provision
    of this Act [see Short Title note above] or the application thereof
    to any person or circumstance is held invalid, the invalidity shall
    not affect other provisions or applications of this Act that can be
    given effect without regard to the invalid provision or
    application, and to this end the provisions of this Act are
    severable."

-End-

-CITE-
    7 USC Sec. 7202                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

-HEAD-
    Sec. 7202. Definitions

-STATUTE-
      In this chapter:
      (1) Agricultural Act of 1949
        Except in section 7301 of this title, the term "Agricultural
      Act of 1949" means the Agricultural Act of 1949 (7 U.S.C. 1421 et
      seq.), as in effect prior to the suspensions under section
      7301(b)(1) of this title.
      (2) Considered planted
        The term "considered planted" means acreage that is considered
      planted under title V of the Agricultural Act of 1949 (7 U.S.C.
      1461 et seq.) and such other acreage as the Secretary considers
      fair and equitable.
      (3) Contract
        The terms "contract" and "production flexibility contract" mean
      a production flexibility contract entered into under section 7211
      of this title.
      (4) Contract acreage
        The term "contract acreage" means 1 or more crop acreage bases
      established for contract commodities under title V of the
      Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) that would have
      been in effect for the 1996 crop (but for suspension under
      section 7301(b)(1) of this title).
      (5) Contract commodity
        The term "contract commodity" means wheat, corn, grain sorghum,
      barley, oats, upland cotton, and rice.
      (6) Contract payment
        The term "contract payment" means a payment made under this
      subchapter (!1) pursuant to a contract.

      (7) Department
        The term "Department" means the Department of Agriculture.
      (8) Extra long staple cotton
        The term "extra long staple cotton" means cotton that - 
          (A) is produced from pure strain varieties of the Barbadense
        species or any hybrid thereof, or other similar types of extra
        long staple cotton, designated by the Secretary, having
        characteristics needed for various end uses for which United
        States upland cotton is not suitable and grown in irrigated
        cotton-growing regions of the United States designated by the
        Secretary or other areas designated by the Secretary as
        suitable for the production of the varieties or types; and
          (B) is ginned on a roller-type gin or, if authorized by the
        Secretary, ginned on another type gin for experimental
        purposes.
      (9) Farm program payment yield
        The term "farm program payment yield" means the farm program
      payment yield established for the 1995 crop of a contract
      commodity under section 505 of the Agricultural Act of 1949 (7
      U.S.C. 1465). The Secretary shall adjust the farm program payment
      yield for the 1995 crop of a contract commodity to account for
      any additional yield payments made with respect to that crop
      under subsection (b)(2) of the section.
      (10) Loan commodity
        The term "loan commodity" means each contract commodity, extra
      long staple cotton, and oilseed.
      (11) Oilseed
        The term "oilseed" means a crop of soybeans, sunflower seed,
      rapeseed, canola, safflower, flaxseed, mustard seed, or, if
      designated by the Secretary, other oilseeds.
      (12) Producer
        The term "producer" means an owner, operator, landlord, tenant,
      or sharecropper who shares in the risk of producing a crop and
      who is entitled to share in the crop available for marketing from
      the farm, or would have shared had the crop been produced. In
      determining whether a grower of hybrid seed is a producer, the
      Secretary shall not take into consideration the existence of a
      hybrid seed contract.
      (13) Secretary
        The term "Secretary" means the Secretary of Agriculture.
      (14) State
        The term "State" means each of the several States of the United
      States, the District of Columbia, the Commonwealth of Puerto
      Rico, and any other territory or possession of the United States.
      (15) United States
        The term "United States", when used in a geographical sense,
      means all of the States.

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

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of "this chapter", referred to in text, see note
    set out under section 7201 of this title.
      The Agricultural Act of 1949, referred to in pars. (1), (2), and
    (4), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended,
    which is classified principally to chapter 35A (Sec. 1421 et seq.)
    of this title. Title V of the Act, which was classified generally
    to subchapter IV (Sec. 1461 et seq.) of chapter 35A of this title,
    was omitted from the Code. For complete classification of this Act
    to the Code, see Short Title note set out under section 1421 of
    this title and Tables.
      Section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465),
    referred to in par. (9), was omitted from the Code.

-FOOTNOTE-
    (!1) So in original. Probably should be "chapter".

-End-

-CITE-
    7 USC SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS      01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
             SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS         

-End-

-CITE-
    7 USC Sec. 7211                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
    Sec. 7211. Authorization for use of production flexibility
      contracts

-STATUTE-
    (a) Offer and terms
      The Secretary shall offer to enter into a production flexibility
    contract with an eligible owner or producer described in subsection
    (b) of this section on a farm containing eligible cropland. Under
    the terms of a contract, the owner or producer shall agree, in
    exchange for annual contract payments, to - 
        (1) comply with applicable conservation requirements under
      subtitle B of title XII of the Food Security Act of 1985 (16
      U.S.C. 3811 et seq.);
        (2) comply with applicable wetland protection requirements
      under subtitle C of title XII of the Act (16 U.S.C. 3821 et
      seq.);
        (3) comply with the planting flexibility requirements of
      section 7218 of this title; and
        (4) use the land subject to the contract for an agricultural or
      related activity, but not for a nonagricultural commercial or
      industrial use, as determined by the Secretary.
    (b) Eligible owners and producers described
      The following producers and owners shall be eligible to enter
    into a contract:
        (1) An owner of eligible cropland who assumes all or a part of
      the risk of producing a crop.
        (2) A producer (other than an owner) on eligible cropland with
      a share-rent lease of the eligible cropland, regardless of the
      length of the lease, if the owner enters into the same contract.
        (3) A producer (other than an owner) on eligible cropland who
      cash rents the eligible cropland under a lease expiring on or
      after September 30, 2002, in which case the owner is not required
      to enter into the contract.
        (4) A producer (other than an owner) on eligible cropland who
      cash rents the eligible cropland under a lease expiring before
      September 30, 2002. The owner of the eligible cropland may also
      enter into the same contract. If the producer elects to enroll
      less than 100 percent of the eligible cropland in the contract,
      the consent of the owner is required.
        (5) An owner of eligible cropland who cash rents the eligible
      cropland and the lease term expires before September 30, 2002, if
      the tenant declines to enter into a contract. In the case of an
      owner covered by this paragraph, contract payments shall not
      begin under a contract until the lease held by the tenant ends.
        (6) An owner or producer described in any preceding paragraph
      regardless of whether the owner or producer purchased
      catastrophic risk protection for a 1996 crop under section
      1508(b) of this title.
    (c) Tenants and sharecroppers
      In carrying out this subchapter, the Secretary shall provide
    adequate safeguards to protect the interests of tenants and
    sharecroppers.
    (d) Eligible cropland described
      Land shall be considered to be cropland eligible for coverage
    under a contract only if the land has contract acreage attributable
    to the land and - 
        (1) for at least 1 of the 1991 through 1995 crops, at least a
      portion of the land was enrolled in the acreage reduction program
      authorized for a crop of a contract commodity under section 101B,
      103B, 105B, or 107B of the Agricultural Act of 1949 or was
      considered planted;
        (2) was subject to a conservation reserve contract under
      section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
      whose term expired, or was voluntarily terminated, on or after
      January 1, 1995; or
        (3) is released from coverage under a conservation reserve
      contract by the Secretary during the period beginning on January
      1, 1995, and ending on the date specified in section 7212(a)(2)
      of this title.
    (e) Quantity of eligible cropland covered by contract
      Subject to subsection (b)(4) of this section, an owner or
    producer may enroll as contract acreage all or a portion of the
    eligible cropland on the farm.
    (f) Voluntary reduction in contract acreage
      Subject to subsection (b)(4) of this section, an owner or
    producer who enters into a contract may subsequently reduce the
    quantity of contract acreage covered by the contract.

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

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Food Security Act of 1985, referred to in subsec. (a)(1),
    (2), is Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended.
    Subtitles B and C of title XII of the Act are classified generally
    to subchapters II (Sec. 3811 et seq.) and III (Sec. 3821 et seq.),
    respectively, of chapter 58 of Title 16, Conservation. For complete
    classification of this Act to the Code, see Short Title of 1985
    Amendment note set out under section 1281 of this title and Tables.
      This subchapter, referred to in subsec. (c), was in the original
    "this subtitle", meaning subtitle B (Secs. 111-118) of title I of
    Pub. L. 104-127, Apr. 4, 1996, 110 Stat. 898, which enacted this
    subchapter and amended sections 1308, 1308-1, and 1308-3 of this
    title. For complete classification of subtitle B to the Code, see
    Tables.
      Sections 101B, 103B, 105B, and 107B of the Agricultural Act of
    1949, referred to in subsec. (d)(1), were classified to sections
    1441-2, 1444-2, 1444f, and 1445b-3a, respectively, of this title
    prior to repeal by section 7301(b)(2)(A)-(D) of this title.

-MISC1-
            VIOLATION OF CONTRACT; DENIAL OF FUNDS FOR SALARIES        
      Pub. L. 104-180, title VII, Sec. 726, Aug. 6, 1996, 110 Stat.
    1600, provided that: "None of the funds made available in this Act
    [see Tables for classification] may be used to pay the salaries of
    employees of the Department of Agriculture who make payments
    pursuant to a production flexibility contract entered into under
    section 111 of the Federal Agriculture Improvement and Reform Act
    of 1996 (Public Law 104-127; 7 U.S.C. 7211) when it is made known
    to the Federal official having authority to obligate or expend such
    funds that the land covered by that production flexibility contract
    is not being used for the production of an agricultural commodity
    or is not devoted to a conserving use, unless it is also made known
    to that Federal official that the lack of agricultural production
    or the lack of a conserving use is a consequence of drought, flood,
    or other natural disaster."

-End-

-CITE-
    7 USC Sec. 7212                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
    Sec. 7212. Elements of contracts

-STATUTE-
    (a) Time for contracting
      (1) Commencement
        To the extent practicable, the Secretary shall commence
      entering into contracts not later than 45 days after April 4,
      1996.
      (2) Deadline
        Except as provided in paragraph (3), the Secretary may not
      enter into a contract after August 1, 1996.
      (3) Conservation reserve lands
        (A) In general
          At the beginning of each fiscal year, the Secretary shall
        allow an eligible owner or producer on a farm covered by a
        conservation reserve contract entered into under section 3831
        of title 16 that terminates after the date specified in
        paragraph (2) to enter into or expand a production flexibility
        contract to cover the contract acreage of the farm that was
        subject to the former conservation reserve contract.
        (B) Amount
          Contract payments made for contract acreage under this
        paragraph shall be made at the rate and amount applicable to
        the annual contract payment level for the applicable crop. For
        the fiscal year in which the conservation reserve contract is
        terminated, the owner or producer subject to the production
        flexibility contract may elect to receive either contract
        payments or a prorated payment under the conservation reserve
        contract, but not both.
    (b) Duration of contract
      (1) Beginning date
        The term of a contract shall begin with - 
          (A) the 1996 crop of a contract commodity; or
          (B) in the case of acreage that was subject to a conservation
        reserve contract described in subsection (a)(3) of this
        section, the date the production flexibility contract was
        entered into or expanded to cover the acreage.
      (2) Ending date
        The term of a contract shall extend through the 2002 crop,
      unless earlier terminated by the owner or producer.
    (c) Estimation of contract payments
      At the time the Secretary enters into a contract, the Secretary
    shall provide an estimate of the minimum contract payments
    anticipated to be made during at least the first fiscal year for
    which contract payments will be made.
    (d) Time for payment
      (1) In general
        An annual contract payment shall be made not later than
      September 30 of each of fiscal years 1996 through 2002.
      (2) Advance payments
        (A) Fiscal year 1996
          At the option of the owner or producer, 50 percent of the
        contract payment for fiscal year 1996 shall be made not later
        than 30 days after the date on which the contract is entered
        into and approved by the Secretary and the owner or producer.
        (B) Subsequent fiscal years
          At the option of the owner or producer for fiscal year 1997
        and each subsequent fiscal year, 50 percent of the annual
        contract payment shall be made on December 15 or January 15 of
        the fiscal year. The owner or producer may change the date
        selected under this subparagraph for a subsequent fiscal year
        by providing advance notice to the Secretary.
      (3) Special rule
        Notwithstanding the requirements for making an annual contract
      payment specified in paragraphs (1) and (2), at the option of the
      owner or producer, the Secretary shall pay the full amount (or
      such portion as the owner or producer may specify) of the
      contract payment required to be paid for any of fiscal years 1999
      through 2002 at such time or times during that fiscal year as the
      owner or producer may specify.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 112, Apr. 4, 1996, 110 Stat. 899;
    Pub. L. 105-228, Sec. 2, Aug. 12, 1998, 112 Stat. 1516; Pub. L. 106-
    78, title VIII, Sec. 811, Oct. 22, 1999, 113 Stat. 1181.)

-MISC1-
                                AMENDMENTS                            
      1999 - Subsec. (d)(3). Pub. L. 106-78, in par. heading, struck
    out "for fiscal year 1999" after "rule" and, in text, substituted
    "any of fiscal years 1999 through 2002" for "fiscal year 1999".
      1998 - Subsec. (d)(3). Pub. L. 105-228 added par. (3).

                 PRODUCTION FLEXIBILITY CONTRACT PAYMENTS             
      Pub. L. 106-170, title V, Sec. 525, Dec. 17, 1999, 113 Stat.
    1928, as amended by Pub. L. 107-147, title IV, Sec. 417(24)(A),
    Mar. 9, 2002, 116 Stat. 57, provided that: "Any option to
    accelerate the receipt of any payment under a production
    flexibility contract which is payable under the Federal Agriculture
    Improvement and Reform Act of 1996 (7 U.S.C. 7201 et seq.), as in
    effect on the date of the enactment of this Act [Dec. 17, 1999],
    shall be disregarded in determining the taxable year for which such
    payment is properly includible in gross income for purposes of the
    Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.]."
      Pub. L. 105-277, div. J, title II, Sec. 2012, Oct. 21, 1998, 112
    Stat. 2681-902, provided that:
      "(a) In General. - The options under paragraphs (2) and (3) of
    section 112(d) of the Federal Agriculture Improvement and Reform
    Act of 1996 (7 U.S.C. 7212(d)(2) and (3)), as in effect on the date
    of the enactment of this Act [Oct. 21, 1998], shall be disregarded
    in determining the taxable year for which any payment under a
    production flexibility contract under subtitle B of title I of such
    Act [7 U.S.C. 7211 et seq.] (as so in effect) is properly
    includible in gross income for purposes of the Internal Revenue
    Code of 1986 [26 U.S.C. 1 et seq.].
      "(b) Effective Date. - Subsection (a) shall apply to taxable
    years ending after December 31, 1995."

-End-

-CITE-
    7 USC Sec. 7213                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
    Sec. 7213. Amounts available for contract payments

-STATUTE-
    (a) Fiscal year amounts
      The Secretary shall, to the maximum extent practicable, expend
    the following amounts to satisfy the obligations of the Secretary
    under all contracts:
        (1) For fiscal year 1996, $5,570,000,000.
        (2) For fiscal year 1997, $5,385,000,000.
        (3) For fiscal year 1998, $5,800,000,000.
        (4) For fiscal year 1999, $5,603,000,000.
        (5) For fiscal year 2000, $5,130,000,000.
        (6) For fiscal year 2001, $4,130,000,000.
        (7) For fiscal year 2002, $4,008,000,000.
    (b) Allocation
      The amount made available for a fiscal year under subsection (a)
    of this section shall be allocated as follows:
        (1) For wheat, 26.26 percent.
        (2) For corn, 46.22 percent.
        (3) For grain sorghum, 5.11 percent.
        (4) For barley, 2.16 percent.
        (5) For oats, 0.15 percent.
        (6) For upland cotton, 11.63 percent.
        (7) For rice, 8.47 percent.
    (c) Adjustment
      The Secretary shall adjust the amounts allocated for each
    contract commodity under subsection (b) of this section for a
    particular fiscal year by - 
        (1) adding an amount equal to the sum of all repayments of
      deficiency payments required under section 114(a)(2) of the
      Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the
      commodity;
        (2) adding an amount equal to the sum of all refunds of
      contract payments received during the preceding fiscal year under
      section 7216 of this title for the commodity; and
        (3) subtracting an amount equal to the amount, if any,
      necessary during that fiscal year to satisfy payment requirements
      for the commodity under sections 103B, 105B, or 107B of the
      Agricultural Act of 1949 for the 1994 and 1995 crop years.
    (d) Additional rice allocation
      In addition to the adjustments required under subsection (c) of
    this section, the amount allocated under subsection (b) of this
    section for rice contract payments shall be increased by $8,500,000
    for each of fiscal years 1997 through 2002.
    (e) Exclusion of certain amounts from contract payments
      Any amount added pursuant to paragraphs (1) and (2) of subsection
    (c) of this section to the amount available under subsection (a) of
    this section for a fiscal year and paid to owners and producers
    under a contract shall not be treated as a contract payment for
    purposes of section 7215 of this title or section 1308(1) (!1) of
    this title. However, the amount of a payment covered by this
    subsection may not exceed $50,000 per person.

    (f) Effect of payment limitation
      The amount available under subsection (a) of this section for a
    fiscal year shall be reduced by an amount equal to the total amount
    of contract payments for the fiscal year that owners and producers
    forgo as a result of operation of the payment limitation under
    section 1308(1) (!1) of this title.

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

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 103B, 105B, and 107B of the Agricultural Act of 1949,
    referred to in subsec. (c)(3), were classified to sections 1444-2,
    1444f, and 1445b-3a, respectively, of this title prior to repeal by
    section 7301(b)(2)(A)-(D) of this title.
      Section 1308(1) of this title, referred to in subsecs. (e), (f),
    was repealed by Pub. L. 107-171, title I, Sec. 1603(a), May 13,
    2002, 116 Stat. 213.

-FOOTNOTE-
    (!1) See References in text below.

-End-

-CITE-
    7 USC Sec. 7214                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
    Sec. 7214. Determination of contract payments under contracts

-STATUTE-
    (a) Individual payment quantity of contract commodities
      For each contract, the payment quantity of a contract commodity
    for each fiscal year shall be equal to the product of - 
        (1) 85 percent of the contract acreage; and
        (2) the farm program payment yield.
    (b) Annual payment quantity of contract commodities
      The payment quantity of each contract commodity covered by all
    contracts for each fiscal year shall be equal to the sum of the
    amounts calculated under subsection (a) of this section for each
    individual contract.
    (c) Annual payment rate
      The payment rate for a contract commodity for each fiscal year
    shall be equal to - 
        (1) the amount made available under section 7213 of this title
      for the contract commodity for the fiscal year; divided by
        (2) the amount determined under subsection (b) of this section
      for the fiscal year.
    (d) Annual payment amount
      The amount to be paid under a contract in effect for each fiscal
    year with respect to all contract commodities covered by the
    contract shall be equal to the sum of the products of - 
        (1) the payment quantity determined under subsection (a) of
      this section for each of the contract commodities covered by the
      contract; and
        (2) the corresponding payment rate for the contract commodity
      in effect under subsection (c) of this section.
    (e) Reduction in payment amount
      The contract payment determined under subsection (d) of this
    section for an owner or producer for a fiscal year shall be
    immediately reduced by the amount of any repayment of deficiency
    payments that is required under section 114(a)(2) of the
    Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) and is not repaid
    as of the date the contract payment is determined. The Secretary
    shall be required to collect the required repayment, or any claim
    based on the required repayment, as soon as the contract payment is
    determined.
    (f) Assignment of contract payments
      The provisions of section 590h(g) of title 16 (relating to
    assignment of payments) shall apply to contract payments under this
    section. The owner or producer making the assignment, or the
    assignee, shall provide the Secretary with notice, in such manner
    as the Secretary may require in the contract, of any assignment
    made under this subsection.
    (g) Sharing of contract payments
      The Secretary shall provide for the sharing of contract payments
    among the owners and producers subject to the contract on a fair
    and equitable basis.

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

-End-

-CITE-
    7 USC Sec. 7215                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
    Sec. 7215. Applicability of payment limitations

-STATUTE-
      Sections 1308 through 1308-3 of this title shall be applicable to
    contract payments made under this subchapter.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 115(a), Apr. 4, 1996, 110 Stat.
    902.)

-End-

-CITE-
    7 USC Sec. 7216                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
    Sec. 7216. Violations of contract

-STATUTE-
    (a) Termination of contract for violation
      Except as provided in subsection (b) of this section, if an owner
    or producer subject to a contract violates a requirement of the
    contract specified in section 7211(a) of this title, the Secretary
    shall terminate the contract with respect to the owner or producer
    on each farm in which the owner or producer has an interest. On the
    termination, the owner or producer shall forfeit all rights to
    receive future contract payments on each farm in which the owner or
    producer has an interest and shall refund to the Secretary all
    contract payments received by the owner or producer during the
    period of the violation, together with interest on the contract
    payments as determined by the Secretary.
    (b) Refund or adjustment
      If the Secretary determines that a violation does not warrant
    termination of the contract under subsection (a) of this section,
    the Secretary may require the owner or producer subject to the
    contract - 
        (1) to refund to the Secretary that part of the contract
      payments received by the owner or producer during the period of
      the violation, together with interest on the contract payments as
      determined by the Secretary; or
        (2) to accept a reduction in the amount of future contract
      payments that is proportionate to the severity of the violation,
      as determined by the Secretary.
    (c) Foreclosure
      (1) Effect of foreclosure
        An owner or producer subject to a contract may not be required
      to make repayments to the Secretary of amounts received under the
      contract if the contract acreage has been foreclosed on and the
      Secretary determines that forgiving the repayments is appropriate
      to provide fair and equitable treatment.
      (2) Resumption of operation
        This subsection shall not void the responsibilities of the
      owner or producer under the contract if the owner or producer
      continues or resumes operation, or control, of the contract
      acreage. On the resumption of operation or control over the
      contract acreage by the owner or producer, the provisions of the
      contract in effect on the date of the foreclosure shall apply.
    (d) Review
      A determination of the Secretary under this section shall be
    considered to be an adverse decision for purposes of the
    availability of administrative review of the determination.

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

-End-

-CITE-
    7 USC Sec. 7217                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

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

-STATUTE-
    (a) Termination
      Except as provided in subsection (c) of this section, a transfer
    of (or change in) the interest of an owner or producer subject to a
    contract in the contract acreage covered by the contract shall
    result in the termination of the contract with respect to the
    acreage, unless the transferee or owner of the acreage agrees to
    assume all obligations under the contract. The termination shall be
    effective on the date of the transfer or change.
    (b) Modification
      At the request of the transferee or owner, the Secretary may
    modify the contract if the modifications are consistent with the
    objectives of this subchapter, as determined by the Secretary.
    (c) Exception
      If an owner or producer who is entitled to a contract payment
    dies, becomes incompetent, or is otherwise unable to receive the
    contract payment, the Secretary shall make the payment, in
    accordance with regulations prescribed by the Secretary.

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

-End-

-CITE-
    7 USC Sec. 7218                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-
    Sec. 7218. Planting flexibility

-STATUTE-
    (a) Permitted crops
      Subject to subsection (b) of this section, any commodity or crop
    may be planted on contract acreage on a farm.
    (b) Limitations and exceptions regarding fruits and vegetables
      (1) Limitations
        The planting of fruits and vegetables (other than lentils, mung
      beans, and dry peas) shall be prohibited on contract acreage.
      (2) Exceptions
        Paragraph (1) shall not limit the planting of a fruit or
      vegetable - 
          (A) in any region in which there is a history of double-
        cropping of contract commodities with fruits or vegetables, as
        determined by the Secretary, in which case the double-cropping
        shall be permitted;
          (B) on a farm that the Secretary determines has a history of
        planting fruits or vegetables on contract acreage, except that
        a contract payment shall be reduced by an acre for each acre
        planted to the fruit or vegetable; or
          (C) by a producer who the Secretary determines has an
        established planting history of a specific fruit or vegetable,
        except that - 
            (i) the quantity planted may not exceed the producer's
          average annual planting history of the fruit or vegetable in
          the 1991 through 1995 crop years (excluding any crop year in
          which no plantings were made), as determined by the
          Secretary; and
            (ii) a contract payment shall be reduced by an acre for
          each acre planted to the fruit or vegetable.

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

-MISC1-
                  CONTRACT PAYMENTS FOR WILD RICE ACREAGE              
      Pub. L. 106-78, title VII, Sec. 727, Oct. 22, 1999, 113 Stat.
    1164, provided that: "None of the funds appropriated or otherwise
    available to the Department of Agriculture in fiscal year 2000 or
    thereafter may be used to administer the provision of contract
    payments to a producer under the Agricultural Market Transition Act
    (7 U.S.C. 7201 et seq.) for contract acreage on which wild rice is
    planted unless the contract payment is reduced by an acre for each
    contract acre planted to wild rice."
      Similar provisions were contained in the following prior
    appropriations acts:
      Pub. L. 105-277, div. A, Sec. 101(a) [title VII, Sec. 727], Oct.
    21, 1998, 112 Stat. 2681, 2681-28.
      Pub. L. 105-86, title VII, Sec. 734, Nov. 18, 1997, 111 Stat.
    2110.

-End-

-CITE-
    7 USC SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE
           LOANS AND LOAN DEFICIENCY PAYMENTS              01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
     SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
                            DEFICIENCY PAYMENTS

-End-

-CITE-
    7 USC Sec. 7231                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7231. Availability of nonrecourse marketing assistance loans

-STATUTE-
    (a) Nonrecourse loans available
      For each of the 1996 through 2002 crops of each loan commodity,
    the Secretary shall make available to producers on a farm
    nonrecourse marketing assistance loans for loan commodities
    produced on the farm. The loans shall be made under terms and
    conditions that are prescribed by the Secretary and at the loan
    rate established under section 7232 of this title for the loan
    commodity.
    (b) Eligible production
      The following production shall be eligible for a marketing
    assistance loan under subsection (a) of this section:
        (1) In the case of a marketing assistance loan for a contract
      commodity, any production by a producer on a farm containing
      eligible cropland covered by a production flexibility contract.
        (2) In the case of a marketing assistance loan for extra long
      staple cotton and oilseeds, any production.
    (c) Compliance with conservation and wetlands requirements
      As a condition of the receipt of a marketing assistance loan
    under subsection (a) of this section, the producer shall comply
    with applicable conservation requirements under subtitle B of title
    XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and
    applicable wetland protection requirements under subtitle C of
    title XII of the Act (16 U.S.C. 3821 et seq.) during the term of
    the loan.
    (d) Additional outlays prohibited
      The Secretary shall carry out this subchapter in such a manner
    that there are no additional outlays under this subchapter as a
    result of the reconstitution of a farm that occurs as a result of
    the combination of another farm that does not contain eligible
    cropland covered by a production flexibility contract.

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

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Food Security Act of 1985, referred to in subsec. (c), is
    Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended. Subtitles
    B and C of title XII of the Act are classified generally to
    subchapters II (Sec. 3811 et seq.) and III (Sec. 3821 et seq.),
    respectively, of chapter 58 of Title 16, Conservation. For complete
    classification of this Act to the Code, see Short Title of 1985
    Amendment note set out under section 1281 of this title and Tables.

-End-

-CITE-
    7 USC Sec. 7232                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7232. Loan rates for marketing assistance loans

-STATUTE-
    (a) Wheat
      (1) Loan rate
        Subject to paragraph (2), the loan rate for a marketing
      assistance loan under section 7231 of this title for wheat shall
      be - 
          (A) not less than 85 percent of the simple average price
        received by producers of wheat, as determined by the Secretary,
        during the marketing years for the immediately preceding 5
        crops of wheat, excluding the year in which the average price
        was the highest and the year in which the average price was the
        lowest in the period; but
          (B) not more than $2.58 per bushel.
      (2) Stocks to use ratio adjustment
        If the Secretary estimates for any marketing year that the
      ratio of ending stocks of wheat to total use for the marketing
      year will be - 
          (A) equal to or greater than 30 percent, the Secretary may
        reduce the loan rate for wheat for the corresponding crop by an
        amount not to exceed 10 percent in any year;
          (B) less than 30 percent but not less than 15 percent, the
        Secretary may reduce the loan rate for wheat for the
        corresponding crop by an amount not to exceed 5 percent in any
        year; or
          (C) less than 15 percent, the Secretary may not reduce the
        loan rate for wheat for the corresponding crop.
    (b) Feed grains
      (1) Loan rate for corn
        Subject to paragraph (2), the loan rate for a marketing
      assistance loan under section 7231 of this title for corn shall
      be - 
          (A) not less than 85 percent of the simple average price
        received by producers of corn, as determined by the Secretary,
        during the marketing years for the immediately preceding 5
        crops of corn, excluding the year in which the average price
        was the highest and the year in which the average price was the
        lowest in the period; but
          (B) not more than $1.89 per bushel.
      (2) Stocks to use ratio adjustment
        If the Secretary estimates for any marketing year that the
      ratio of ending stocks of corn to total use for the marketing
      year will be - 
          (A) equal to or greater than 25 percent, the Secretary may
        reduce the loan rate for corn for the corresponding crop by an
        amount not to exceed 10 percent in any year;
          (B) less than 25 percent but not less than 12.5 percent, the
        Secretary may reduce the loan rate for corn for the
        corresponding crop by an amount not to exceed 5 percent in any
        year; or
          (C) less than 12.5 percent, the Secretary may not reduce the
        loan rate for corn for the corresponding crop.
      (3) Other feed grains
        The loan rate for a marketing assistance loan under section
      7231 of this title for grain sorghum, barley, and oats,
      respectively, shall be established at such level as the Secretary
      determines is fair and reasonable in relation to the rate that
      loans are made available for corn, taking into consideration the
      feeding value of the commodity in relation to corn.
    (c) Upland cotton
      (1) Loan rate
        Subject to paragraph (2), the loan rate for a marketing
      assistance loan under section 7231 of this title for upland
      cotton shall be established by the Secretary at such loan rate,
      per pound, as will reflect for the base quality of upland cotton,
      as determined by the Secretary, at average locations in the
      United States a rate that is not less than the smaller of - 
          (A) 85 percent of the average price (weighted by market and
        month) of the base quality of cotton as quoted in the
        designated United States spot markets during 3 years of the 5-
        year period ending July 31 of the year preceding the year in
        which the crop is planted, excluding the year in which the
        average price was the highest and the year in which the average
        price was the lowest in the period; or
          (B) 90 percent of the average, for the 15-week period
        beginning July 1 of the year preceding the year in which the
        crop is planted, of the 5 lowest-priced growths of the growths
        quoted for Middling 1 3/32 -inch cotton C.I.F. Northern Europe
        (adjusted downward by the average difference during the period
        April 15 through October 15 of the year preceding the year in
        which the crop is planted between the average Northern European
        price quotation of such quality of cotton and the market
        quotations in the designated United States spot markets for the
        base quality of upland cotton), as determined by the Secretary.
      (2) Limitations
        The loan rate for a marketing assistance loan for upland cotton
      shall not be less than $0.50 per pound or more than $0.5192 per
      pound.
    (d) Extra long staple cotton
      The loan rate for a marketing assistance loan under section 7231
    of this title for extra long staple cotton shall be - 
        (1) not less than 85 percent of the simple average price
      received by producers of extra long staple cotton, as determined
      by the Secretary, during 3 years of the 5-year period ending July
      31 of the year preceding the year in which the crop is planted,
      excluding the year in which the average price was the highest and
      the year in which the average price was the lowest in the period;
      but
        (2) not more than $0.7965 per pound.
    (e) Rice
      The loan rate for a marketing assistance loan under section 7231
    of this title for rice shall be $6.50 per hundredweight.
    (f) Oilseeds
      (1) Soybeans
        The loan rate for a marketing assistance loan under section
      7231 of this title for soybeans shall be - 
          (A) not less than 85 percent of the simple average price
        received by producers of soybeans, as determined by the
        Secretary, during the marketing years for the immediately
        preceding 5 crops of soybeans, excluding the year in which the
        average price was the highest and the year in which the average
        price was the lowest in the period; but
          (B) not less than $4.92 or more than $5.26 per bushel.
      (2) Sunflower seed, canola, rapeseed, safflower, mustard seed,
        and flaxseed
        The loan rate for a marketing assistance loan under section
      7231 of this title for sunflower seed, canola, rapeseed,
      safflower, mustard seed, and flaxseed, individually, shall be - 
          (A) not less than 85 percent of the simple average price
        received by producers of sunflower seed, individually, as
        determined by the Secretary, during the marketing years for the
        immediately preceding 5 crops of sunflower seed, individually,
        excluding the year in which the average price was the highest
        and the year in which the average price was the lowest in the
        period; but
          (B) not less than $0.087 or more than $0.093 per pound.
      (3) Other oilseeds
        The loan rates for a marketing assistance loan under section
      7231 of this title for other oilseeds shall be established at
      such level as the Secretary determines is fair and reasonable in
      relation to the loan rate available for soybeans, except in no
      event shall the rate for the oilseeds (other than cottonseed) be
      less than the rate established for soybeans on a per-pound basis
      for the same crop.

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

-End-

-CITE-
    7 USC Sec. 7233                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7233. Term of loans

-STATUTE-
    (a) Term of loan
      In the case of each loan commodity (other than upland cotton or
    extra long staple cotton), a marketing assistance loan under
    section 7231 of this title shall have a term of 9 months beginning
    on the first day of the first month after the month in which the
    loan is made.
    (b) Special rule for cotton
      A marketing assistance loan for upland cotton or extra long
    staple cotton shall have a term of 10 months beginning on the first
    day of the month in which the loan is made.
    (c) Extensions prohibited
      The Secretary may not extend the term of a marketing assistance
    loan for any loan commodity.

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

-End-

-CITE-
    7 USC Sec. 7234                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7234. Repayment of loans

-STATUTE-
    (a) Repayment rates for wheat, feed grains, and oilseeds
      The Secretary shall permit a producer to repay a marketing
    assistance loan under section 7231 of this title for wheat, corn,
    grain sorghum, barley, oats, and oilseeds at a rate that is the
    lesser of - 
        (1) the loan rate established for the commodity under section
      7232 of this title, plus interest (as determined by the
      Secretary); or
        (2) a rate that the Secretary determines will - 
          (A) minimize potential loan forfeitures;
          (B) minimize the accumulation of stocks of the commodity by
        the Federal Government;
          (C) minimize the cost incurred by the Federal Government in
        storing the commodity; and
          (D) allow the commodity produced in the United States to be
        marketed freely and competitively, both domestically and
        internationally.
    (b) Repayment rates for upland cotton and rice
      The Secretary shall permit producers to repay a marketing
    assistance loan under section 7231 of this title for upland cotton
    and rice at a rate that is the lesser of - 
        (1) the loan rate established for the commodity under section
      7232 of this title, plus interest (as determined by the
      Secretary); or
        (2) the prevailing world market price for the commodity
      (adjusted to United States quality and location), as determined
      by the Secretary.
    (c) Repayment rates for extra long staple cotton
      Repayment of a marketing assistance loan for extra long staple
    cotton shall be at the loan rate established for the commodity
    under section 7232 of this title, plus interest (as determined by
    the Secretary).
    (d) Prevailing world market price
      For purposes of this section and section 7236 of this title, the
    Secretary shall prescribe by regulation - 
        (1) a formula to determine the prevailing world market price
      for each loan commodity, adjusted to United States quality and
      location; and
        (2) a mechanism by which the Secretary shall announce
      periodically the prevailing world market price for each loan
      commodity.
    (e) Adjustment of prevailing world market price for upland cotton
      (1) In general
        During the period ending July 31, 2003, the prevailing world
      market price for upland cotton (adjusted to United States quality
      and location) established under subsection (d) of this section
      shall be further adjusted if - 
          (A) the adjusted prevailing world market price is less than
        115 percent of the loan rate for upland cotton established
        under section 7232 of this title, as determined by the
        Secretary; and
          (B) the Friday through Thursday average price quotation for
        the lowest-priced United States growth as quoted for Middling
        (M) 1 3/32 -inch cotton delivered C.I.F. Northern Europe is
        greater than the Friday through Thursday average price of the 5
        lowest-priced growths of upland cotton, as quoted for Middling
        (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe
        (referred to in this section as the "Northern Europe price").
      (2) Further adjustment
        Except as provided in paragraph (3), the adjusted prevailing
      world market price for upland cotton shall be further adjusted on
      the basis of some or all of the following data, as available:
          (A) The United States share of world exports.
          (B) The current level of cotton export sales and cotton
        export shipments.
          (C) Other data determined by the Secretary to be relevant in
        establishing an accurate prevailing world market price for
        upland cotton (adjusted to United States quality and location).
      (3) Limitation on further adjustment
        The adjustment under paragraph (2) may not exceed the
      difference between - 
          (A) the Friday through Thursday average price for the lowest-
        priced United States growth as quoted for Middling 1 3/32 -
        inch cotton delivered C.I.F. Northern Europe; and
          (B) the Northern Europe price.

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

-End-

-CITE-
    7 USC Sec. 7235                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7235. Loan deficiency payments

-STATUTE-
    (a) Availability of loan deficiency payments
      Except as provided in subsection (d) of this section, the
    Secretary may make loan deficiency payments available to - 
        (1) producers who, although eligible to obtain a marketing
      assistance loan under section 7231 of this title with respect to
      a loan commodity, agree to forgo obtaining the loan for the
      commodity in return for payments under this section; and
        (2) effective only for the 2000 and 2001 crop years, producers
      that, although not eligible to obtain such a marketing assistance
      loan under section 7231 of this title, produce a contract
      commodity.
    (b) Computation
      A loan deficiency payment under this section shall be computed by
    multiplying - 
        (1) the loan payment rate determined under subsection (c) of
      this section for the loan commodity; by
        (2) the quantity of the loan commodity produced by the eligible
      producers, excluding any quantity for which the producers obtain
      a loan under section 7231 of this title.
    (c) Loan payment rate
      For purposes of this section, the loan payment rate shall be the
    amount by which - 
        (1) the loan rate established under section 7232 of this title
      for the loan commodity; exceeds
        (2) the rate at which a loan for the commodity may be repaid
      under section 7234 of this title.
    (d) Exception for extra long staple cotton
      This section shall not apply with respect to extra long staple
    cotton.
    (e) Transition
      A payment to a producer eligible for a payment under subsection
    (a)(2) of this section that harvested a commodity on or before the
    date that is 30 days after the promulgation of the regulations
    implementing subsection (a)(2) of this section shall be determined
    as the date the producer lost beneficial interest in the commodity,
    as determined by the Secretary.
    (f) Beneficial interest
      Subject to subsection (e) of this section, a producer shall be
    eligible for a payment under this section only if the producer has
    a beneficial interest in the commodity, as determined by the
    Secretary.
    (g) Effective date for payment rate determination
      For the 2001 crop year, the Secretary shall determine the amount
    of the loan deficiency payment to be made under this section to the
    producers on a farm with respect to a quantity of a loan commodity
    using the payment rate in effect under subsection (c) of this
    section as of the earlier of the following:
        (1) The date on which the producers marketed or otherwise lost
      beneficial interest in the crop of the loan commodity, as
      determined by the Secretary.
        (2) The date the producers requested the payment.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 135, Apr. 4, 1996, 110 Stat. 909;
    Pub. L. 106-224, title II, Sec. 206, June 20, 2000, 114 Stat. 405;
    Pub. L. 107-171, title I, Sec. 1205(f)(2), May 13, 2002, 116 Stat.
    159.)

-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (a)(2). Pub. L. 107-171, Sec. 1205(f)(2)(A),
    substituted "2000 and 2001 crop years" for "2000 crop year".
      Subsec. (g). Pub. L. 107-171, Sec. 1205(f)(2)(B), added subsec.
    (g).
      2000 - Subsec. (a). Pub. L. 106-224, Sec. 206(a), designated
    existing provisions as par. (1) and added par. (2).
      Subsec. (b)(2). Pub. L. 106-224, Sec. 206(b), substituted
    "produced by the eligible producers, excluding any quantity for
    which the producers obtain a loan under section 7231 of this
    title." for "that the producers on a farm are eligible to place
    under loan but for which the producers forgo obtaining the loan in
    return for payments under this section."
      Subsecs. (e), (f). Pub. L. 106-224, Sec. 206(c), added subsecs.
    (e) and (f).

-End-

-CITE-
    7 USC Sec. 7236                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7236. Special marketing loan provisions for upland cotton

-STATUTE-
    (a) Cotton user marketing certificates
      (1) Issuance
        During the period ending July 31, 2003, the Secretary shall
      issue marketing certificates or cash payments, at the option of
      the recipient, to domestic users and exporters for documented
      purchases by domestic users and sales for export by exporters
      made in the week following a consecutive 4-week period in which -
      
          (A) the Friday through Thursday average price quotation for
        the lowest-priced United States growth, as quoted for Middling
        (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe
        exceeds the Northern Europe price by more than 1.25 cents per
        pound; and
          (B) the prevailing world market price for upland cotton
        (adjusted to United States quality and location) does not
        exceed 134 percent of the loan rate for upland cotton
        established under section 7232 of this title.
      (2) Value of certificates or payments
        The value of the marketing certificates or cash payments shall
      be based on the amount of the difference (reduced by 1.25 cents
      per pound) in the prices during the 4th week of the consecutive 4-
      week period multiplied by the quantity of upland cotton included
      in the documented sales.
      (3) Administration of marketing certificates
        (A) Redemption, marketing, or exchange
          The Secretary shall establish procedures for redeeming
        marketing certificates for cash or marketing or exchange of the
        certificates for agricultural commodities owned by the
        Commodity Credit Corporation or pledged to the Commodity Credit
        Corporation as collateral for a loan in such manner, and at
        such price levels, as the Secretary determines will best
        effectuate the purposes of cotton user marketing certificates,
        including enhancing the competitiveness and marketability of
        United States cotton. Any price restrictions that would
        otherwise apply to the disposition of agricultural commodities
        by the Commodity Credit Corporation shall not apply to the
        redemption of certificates under this subsection.
        (B) Designation of commodities and products
          To the extent practicable, the Secretary shall permit owners
        of certificates to designate the commodities and products,
        including storage sites, the owners would prefer to receive in
        exchange for certificates.
        (C) Transfers
          Marketing certificates issued to domestic users and exporters
        of upland cotton may be transferred to other persons in
        accordance with regulations issued by the Secretary.
    (b) Special import quota
      (1) Establishment
        (A) In general
          The President shall carry out an import quota program during
        the period ending July 31, 2003, as provided in this
        subsection.
        (B) Program requirements
          Except as provided in subparagraph (C), whenever the
        Secretary determines and announces that for any consecutive 4-
        week period, the Friday through Thursday average price
        quotation for the lowest-priced United States growth, as quoted
        for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern
        Europe, adjusted for the value of any certificate issued under
        subsection (a) of this section, exceeds the Northern Europe
        price by more than 1.25 cents per pound, there shall
        immediately be in effect a special import quota.
        (C) Tight domestic supply
          During any month for which the Secretary estimates the season-
        ending United States upland cotton stocks-to-use ratio, as
        determined under subparagraph (D), to be below 16 percent, the
        Secretary, in making the determination under subparagraph (B),
        shall not adjust the Friday through Thursday average price
        quotation for the lowest-priced United States growth, as quoted
        for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern
        Europe, for the value of any certificates issued under
        subsection (a) of this section.
        (D) Season-ending United States stocks-to-use ratio
          For the purposes of making estimates under subparagraph (C),
        the Secretary shall, on a monthly basis, estimate and report
        the season-ending United States upland cotton stocks-to-use
        ratio, excluding projected raw cotton imports but including the
        quantity of raw cotton that has been imported into the United
        States during the marketing year.
      (2) Quantity
        The quota shall be equal to 1 week's consumption of upland
      cotton by domestic mills at the seasonally adjusted average rate
      of the most recent 3 months for which data are available.
      (3) Application
        The quota shall apply to upland cotton purchased not later than
      90 days after the date of the Secretary's announcement under
      paragraph (1) and entered into the United States not later than
      180 days after the date.
      (4) Overlap
        A special quota period may be established that overlaps any
      existing quota period if required by paragraph (1), except that a
      special quota period may not be established under this subsection
      if a quota period has been established under subsection (c) of
      this section.
      (5) Preferential tariff treatment
        The quantity under a special import quota shall be considered
      to be an in-quota quantity for purposes of - 
          (A) section 2703(d) of title 19;
          (B) section 3203 of title 19;
          (C) section 2463(d) of title 19; and
          (D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.
      (6) "Special import quota" defined
        In this subsection, the term "special import quota" means a
      quantity of imports that is not subject to the over-quota tariff
      rate of a tariff-rate quota.
      (7) Limitation
        The quantity of cotton entered into the United States during
      any marketing year under the special import quota established
      under this subsection may not exceed the equivalent of 5 week's
      consumption of upland cotton by domestic mills at the seasonally
      adjusted average rate of the 3 months immediately preceding the
      first special import quota established in any marketing year.
    (c) Limited global import quota for upland cotton
      (1) In general
        The President shall carry out an import quota program that
      provides that whenever the Secretary determines and announces
      that the average price of the base quality of upland cotton, as
      determined by the Secretary, in the designated spot markets for a
      month exceeded 130 percent of the average price of such quality
      of cotton in the markets for the preceding 36 months,
      notwithstanding any other provision of law, there shall
      immediately be in effect a limited global import quota subject to
      the following conditions:
        (A) Quantity
          The quantity of the quota shall be equal to 21 days of
        domestic mill consumption of upland cotton at the seasonally
        adjusted average rate of the most recent 3 months for which
        data are available.
        (B) Quantity if prior quota
          If a quota has been established under this subsection during
        the preceding 12 months, the quantity of the quota next
        established under this subsection shall be the smaller of 21
        days of domestic mill consumption calculated under subparagraph
        (A) or the quantity required to increase the supply to 130
        percent of the demand.
        (C) Preferential tariff treatment
          The quantity under a limited global import quota shall be
        considered to be an in-quota quantity for purposes of - 
            (i) section 2703(d) of title 19;
            (ii) section 3203 of title 19;
            (iii) section 2463(d) of title 19; and
            (iv) General Note 3(a)(iv) to the Harmonized Tariff
          Schedule.
        (D) Definitions
          In this subsection:
          (i) Supply
            The term "supply" means, using the latest official data of
          the Bureau of the Census, the Department of Agriculture, and
          the Department of the Treasury - 
              (I) the carry-over of upland cotton at the beginning of
            the marketing year (adjusted to 480-pound bales) in which
            the quota is established;
              (II) production of the current crop; and
              (III) imports to the latest date available during the
            marketing year.
          (ii) Demand
            The term "demand" means - 
              (I) the average seasonally adjusted annual rate of
            domestic mill consumption during the most recent 3 months
            for which data are available; and
              (II) the larger of - 
                (aa) average exports of upland cotton during the
              preceding 6 marketing years; or
                (bb) cumulative exports of upland cotton plus
              outstanding export sales for the marketing year in which
              the quota is established.
          (iii) Limited global import quota
            The term "limited global import quota" means a quantity of
          imports that is not subject to the over-quota tariff rate of
          a tariff-rate quota.
        (E) Quota entry period
          When a quota is established under this subsection, cotton may
        be entered under the quota during the 90-day period beginning
        on the date the quota is established by the Secretary.
      (2) No overlap
        Notwithstanding paragraph (1), a quota period may not be
      established that overlaps an existing quota period or a special
      quota period established under subsection (b) of this section.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 136, Apr. 4, 1996, 110 Stat. 909;
    Pub. L. 105-86, title VII, Sec. 731, Nov. 18, 1997, 111 Stat. 2108;
    Pub. L. 105-277, div. A, Sec. 101(a) [title VII, Sec. 762], Oct.
    21, 1998, 112 Stat. 2681, 2681-36; Pub. L. 106-78, title VIII, Sec.
    806, Oct. 22, 1999, 113 Stat. 1179.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Harmonized Tariff Schedule, referred to in subsecs. (b)(5)(D)
    and (c)(1)(C)(iv), is not set out in the Code. See Publication of
    Harmonized Tariff Schedule note set out under section 1202 of Title
    19, Customs Duties.

-MISC1-
                                AMENDMENTS                            
      1999 - Subsec. (a)(1). Pub. L. 106-78, Sec. 806(a)(1),
    substituted "or cash payments, at the option of the recipient," for
    "or cash payments" in introductory provisions.
      Subsec. (a)(1)(A), (2). Pub. L. 106-78, Sec. 806(a)(2),
    substituted "1.25 cents per pound" for "3 cents per pound".
      Subsec. (a)(3)(A). Pub. L. 106-78, Sec. 806(a)(3)(A), substituted
    "owned by the Commodity Credit Corporation or pledged to the
    Commodity Credit Corporation as collateral for a loan in such
    manner, and at such price levels, as the Secretary determines will
    best effectuate the purposes of cotton user marketing certificates,
    including enhancing the competitiveness and marketability of United
    States cotton" for "owned by the Commodity Credit Corporation in
    such manner, and at such price levels, as the Secretary determines
    will best effectuate the purposes of cotton user marketing
    certificates" in first sentence.
      Subsec. (a)(3)(B). Pub. L. 106-78, Sec. 806(a)(3)(B), struck out
    at end "If any certificate is not presented for redemption,
    marketing, or exchange within a reasonable number of days after the
    issuance of the certificate (as determined by the Secretary),
    reasonable costs of storage and other carrying charges, as
    determined by the Secretary, shall be deducted from the value of
    the certificate for the period beginning after the reasonable
    number of days and ending with the date of the presentation of the
    certificate to the Commodity Credit Corporation."
      Subsec. (a)(4). Pub. L. 106-78, Sec. 806(a)(4), struck out
    heading and text of par. (4). Text read as follows: "Total
    expenditures under this subsection shall not exceed $701,000,000
    during fiscal years 1996 through 2002."
      Subsec. (b)(1). Pub. L. 106-78, Sec. 806(b)(1), added par. (1)
    and struck out heading and text of former par. (1). Text read as
    follows: "The President shall carry out an import quota program
    that provides that, during the period ending July 31, 2003,
    whenever the Secretary determines and announces that for any
    consecutive 10-week period, the Friday through Thursday average
    price quotation for the lowest-priced United States growth, as
    quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F.
    Northern Europe, adjusted for the value of any certificates issued
    under subsection (a) of this section, exceeds the Northern Europe
    price by more than 3 cents per pound, there shall immediately be in
    effect a special import quota."
      Subsec. (b)(7). Pub. L. 106-78, Sec. 806(b)(2), added par. (7).
      1998 - Subsecs. (a)(1)(A), (2), (b)(1). Pub. L. 105-277
    substituted "3 cents" for "1.25 cents".
      1997 - Subsec. (a)(1). Pub. L. 105-86, Sec. 731(1), in
    introductory provisions substituted "During" for "Subject to
    paragraph (4), during" and in subpar. (B) substituted "134" for
    "130".
      Subsec. (a)(4), (5). Pub. L. 105-86, Sec. 731(2), (3)
    redesignated par. (5) as (4) and struck out heading and text of
    former par. (4). Text read as follows: "The Secretary shall not
    issue marketing certificates or cash payments under paragraph (1)
    if, for the immediately preceding consecutive 10-week period, the
    Friday through Thursday average price quotation for the lowest
    priced United States growth, as quoted for Middling (M) 1 3/32 -
    inch cotton, delivered C.I.F. Northern Europe, adjusted for the
    value of any certificate issued under this subsection, exceeds the
    Northern Europe price by more than 1.25 cents per pound."

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 731 of Pub. L. 105-86 provided that the amendment made by
    that section is effective Oct. 1, 1998.

-End-

-CITE-
    7 USC Sec. 7236a                                            01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7236a. Special competitive provisions for extra long staple
      cotton

-STATUTE-
    (a) Competitiveness program
      Notwithstanding any other provision of law, during the period
    beginning on October 1, 1999, and ending on July 31, 2003, the
    Secretary shall carry out a program to maintain and expand the
    domestic use of extra long staple cotton produced in the United
    States, to increase exports of extra long staple cotton produced in
    the United States, and to ensure that extra long staple cotton
    produced in the United States remains competitive in world markets.
    (b) Payments under program; trigger
      Under the program, the Secretary shall make payments available
    under this section whenever - 
        (1) for a consecutive 4-week period, the world market price for
      the lowest priced competing growth of extra long staple cotton
      (adjusted to United States quality and location and for other
      factors affecting the competitiveness of such cotton), as
      determined by the Secretary, is below the prevailing United
      States price for a competing growth of extra long staple cotton;
      and
        (2) the lowest priced competing growth of extra long staple
      cotton (adjusted to United States quality and location and for
      other factors affecting the competitiveness of such cotton), as
      determined by the Secretary, is less than 134 percent of the loan
      rate for extra long staple cotton.
    (c) Eligible recipients
      The Secretary shall make payments available under this section to
    domestic users of extra long staple cotton produced in the United
    States and exporters of extra long staple cotton produced in the
    United States who enter into an agreement with the Commodity Credit
    Corporation to participate in the program under this section.
    (d) Payment amount
      Payments under this section shall be based on the amount of the
    difference in the prices referred to in subsection (b)(1) of this
    section during the fourth week of the consecutive 4-week period
    multiplied by the amount of documented purchases by domestic users
    and sales for export by exporters made in the week following such a
    consecutive 4-week period.
    (e) Form of payment
      Payments under this section shall be made through the issuance of
    cash or marketing certificates, at the option of eligible
    recipients of the payments.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 136A, as added Pub. L. 106-113,
    div. B, Sec. 1000(a)(5) [title I, Sec. 104(c)], Nov. 29, 1999, 113
    Stat. 1536, 1501A-291.)

-End-

-CITE-
    7 USC Sec. 7237                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
           DEFICIENCY PAYMENTS                           

-HEAD-
    Sec. 7237. Availability of recourse loans for high moisture feed
      grains and seed cotton and other fibers

-STATUTE-
    (a) High moisture feed grains
      (1) Recourse loans available
        For each of the 1996 through 2002 crops of corn and grain
      sorghum, the Secretary shall make available recourse loans, as
      determined by the Secretary, to producers on a farm containing
      eligible cropland covered by a production flexibility contract
      who - 
          (A) normally harvest all or a portion of their crop of corn
        or grain sorghum in a high moisture state;
          (B) present - 
            (i) certified scale tickets from an inspected, certified
          commercial scale, including a licensed warehouse, feedlot,
          feed mill, distillery, or other similar entity approved by
          the Secretary, pursuant to regulations issued by the
          Secretary; or
            (ii) field or other physical measurements of the standing
          or stored crop in regions of the United States, as determined
          by the Secretary, that do not have certified commercial
          scales from which certified scale tickets may be obtained
          within reasonable proximity of harvest operation;

          (C) certify that they were the owners of the feed grain at
        the time of delivery to, and that the quantity to be placed
        under loan under this subsection was in fact harvested on the
        farm and delivered to, a feedlot, feed mill, or commercial or
        on-farm high-moisture storage facility, or to a facility
        maintained by the users of corn and grain sorghum in a high
        moisture state; and
          (D) comply with deadlines established by the Secretary for
        harvesting the corn or grain sorghum and submit applications
        for loans under this subsection within deadlines established by
        the Secretary.
      (2) Eligibility of acquired feed grains
        A loan under this subsection shall be made on a quantity of
      corn or grain sorghum of the same crop acquired by the producer
      equivalent to a quantity determined by multiplying - 
          (A) the acreage of the corn or grain sorghum in a high
        moisture state harvested on the producer's farm; by
          (B) the lower of the farm program payment yield or the actual
        yield on a field, as determined by the Secretary, that is
        similar to the field from which the corn or grain sorghum was
        obtained.
      (3) "High moisture state" defined
        In this subsection, the term "high moisture state" means corn
      or grain sorghum having a moisture content in excess of Commodity
      Credit Corporation standards for marketing assistance loans made
      by the Secretary under section 7231 of this title.
    (b) Recourse loans available for seed cotton
      (1) Upland cotton
        For each of the 1996 through 2002 crops of upland cotton, the
      Secretary shall make available recourse seed cotton loans, as
      determined by the Secretary, to producers on a farm containing
      eligible cropland covered by a production flexibility contract.
      (2) Extra long staple cotton
        For each of the 1996 through 2002 crops of extra long staple
      cotton, the Secretary shall make available recourse seed cotton
      loans, as determined by the Secretary, on any production.
    (c) Recourse loans available for mohair
      (1) Recourse loans available
        Notwithstanding any other provision of law, during fiscal year
      1999, the Secretary shall make available recourse loans, as
      determined by the Secretary, to producers of mohair produced
      during or before that fiscal year.
      (2) Loan rate
        The loan rate for a loan under paragraph (1) shall be equal to
      $2.00 per pound.
      (3) Term of loan
        A loan under paragraph (1) shall have a term of 1 year
      beginning on the first day of the first month after the month in
      which the loan is made.
      (4) Waiver of interest
        Notwithstanding subsection (d) of this section, the Secretary
      shall not charge interest on a loan made under paragraph (1).
    (d) Repayment rates
      Repayment of a recourse loan made under this section shall be at
    the loan rate established for the commodity by the Secretary, plus
    interest (as determined by the Secretary).

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 137, Apr. 4, 1996, 110 Stat. 912;
    Pub. L. 105-277, div. A, Sec. 101(a) [title XI, Sec. 1126], Oct.
    21, 1998, 112 Stat. 2681, 2681-46.)

-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-277, Sec. 101(a) [title XI, Sec. 1126(1)],
    inserted "and other fibers" after "seed cotton" in section
    catchline.
      Subsecs. (c), (d). Pub. L. 105-277, Sec. 101(a) [title XI, Sec.
    1126(2), (3)], added subsec. (c) and redesignated former subsec.
    (c) as (d).

-End-

-CITE-
    7 USC SUBCHAPTER IV - OTHER COMMODITIES                     01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES

-HEAD-
                     SUBCHAPTER IV - OTHER COMMODITIES                 

-End-

-CITE-
    7 USC Part A - Dairy                                        01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
                              PART A - DAIRY                          

-End-

-CITE-
    7 USC Sec. 7251                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7251. Milk price support program

-STATUTE-
    (a) Support activities
      The Secretary of Agriculture shall support the price of milk
    produced in the 48 contiguous States through the purchase of
    cheese, butter, and nonfat dry milk produced from the milk.
    (b) Rate
      The price of milk shall be supported at the following rates per
    hundredweight for milk containing 3.67 percent butterfat:
        (1) During calendar year 1996, $10.35.
        (2) During calendar year 1997, $10.20.
        (3) During calendar year 1998, $10.05.
        (4) During each of calendar years 1999 through 2001, $9.90.
        (5) During the period beginning on January 1, 2002, and ending
      on May 31, 2002, $9.90.
    (c) Purchase prices
      The support purchase prices under this section for each of the
    products of milk (butter, cheese, and nonfat dry milk) announced by
    the Secretary shall be the same for all of that product sold by
    persons offering to sell the product to the Secretary. The purchase
    prices shall be sufficient to enable plants of average efficiency
    to pay producers, on average, a price that is not less than the
    rate of price support for milk in effect under subsection (b) of
    this section.
    (d) Special rule for butter and nonfat dry milk purchase prices
      (1) Allocation of purchase prices
        The Secretary may allocate the rate of price support between
      the purchase prices for nonfat dry milk and butter in a manner
      that will result in the lowest level of expenditures by the
      Commodity Credit Corporation or achieve such other objectives as
      the Secretary considers appropriate. Not later than 10 days after
      making or changing an allocation, the Secretary shall notify the
      Committee on Agriculture of the House of Representatives and the
      Committee on Agriculture, Nutrition, and Forestry of the Senate
      of the allocation. Section 553 of title 5 shall not apply with
      respect to the implementation of this section.
      (2) Timing of purchase price adjustments
        The Secretary may make any such adjustments in the purchase
      prices for nonfat dry milk and butter the Secretary considers to
      be necessary not more than twice in each calendar year.
    (e) Refunds of 1995 and 1996 assessments
      (1) Refund required
        The Secretary shall provide for a refund of the entire
      reduction required under section 204(h)(2) of the Agricultural
      Act of 1949 (7 U.S.C. 1446e(h)(2)), as in effect on the day
      before the amendment made by subsection (g) of this section, in
      the price of milk received by a producer during calendar year
      1995 or 1996, if the producer provides evidence that the producer
      did not increase marketings in calendar year 1995 or 1996 when
      compared to calendar year 1994 or 1995, respectively.
      (2) Exception
        This subsection shall not apply with respect to a producer for
      a particular calendar year if the producer has already received a
      refund under section 204(h) of the Agricultural Act of 1949 for
      the same fiscal year before the effective date of this section.
      (3) Treatment of refund
        A refund under this subsection shall not be considered as any
      type of price support or payment for purposes of sections 3811
      and 3821 of title 16.
    (f) Commodity Credit Corporation
      The Secretary shall carry out the program authorized by this
    section through the Commodity Credit Corporation.
    (g) Omitted
    (h) Period of effectiveness
      This section (other than subsection (g) of this section) shall be
    effective only during the period beginning on the first day of the
    first month beginning after April 4, 1996, and ending on May 31,
    2002. The program authorized by this section shall terminate on May
    31, 2002, and shall be considered to have expired notwithstanding
    section 907 of title 2.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 141, Apr. 4, 1996, 110 Stat. 914;
    Pub. L. 106-78, title VIII, Sec. 807(a), Oct. 22, 1999, 113 Stat.
    1181; Pub. L. 106-387, Sec. 1(a) [title VII, Sec. 742(a)], Oct. 28,
    2000, 114 Stat. 1549, 1549A-35; Pub. L. 107-76, title VII, Sec.
    772(a), Nov. 28, 2001, 115 Stat. 745.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 204 of the Agricultural Act of 1949, referred to in
    subsec. (e)(1), (2), was classified to section 1446e of this title
    prior to repeal by subsec. (g) of this section. See Codification
    note below.

-COD-
                               CODIFICATION                           
      Section is comprised of section 141 of Pub. L. 104-127. Subsec.
    (g) of section 141 of Pub. L. 104-127 repealed section 1446e of
    this title and enacted provisions set out as a note under section
    1446e of this title.

-MISC1-
                                AMENDMENTS                            
      2001 - Subsec. (b)(5). Pub. L. 107-76, Sec. 772(a)(1), added par.
    (5).
      Subsec. (h). Pub. L. 107-76, Sec. 772(a)(2), substituted "May 31,
    2002" for "December 31, 2001" in two places.
      2000 - Subsec. (b)(4). Pub. L. 106-387, Sec. 1(a) [title VII,
    Sec. 742(a)(1)], substituted "through 2001" for "and 2000".
      Subsec. (h). Pub. L. 106-387, Sec. 1(a) [title VII, Sec.
    742(a)(2)], substituted "2001" for "2000" in two places.
      1999 - Subsec. (b)(4). Pub. L. 106-78, Sec. 807(a)(1),
    substituted "each of calendar years 1999 and 2000" for "calendar
    year 1999".
      Subsec. (h). Pub. L. 106-78, Sec. 807(a)(2), substituted "2000"
    for "1999" in two places.

-End-

-CITE-
    7 USC Sec. 7252                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7252. Repealed.

-MISC1-
    Sec. 7252. Repealed. Pub. L. 107-76, title VII, Sec. 772(b), Nov.
      28, 2001, 115 Stat. 745.
      Section, Pub. L. 104-127, title I, Sec. 142, Apr. 4, 1996, 110
    Stat. 915; Pub. L. 106-78, title VIII, Sec. 807(b), Oct. 22, 1999,
    113 Stat. 1181; Pub. L. 106-387, Sec. 1(a) [title VII, Sec.
    742(b)], Oct. 28, 2000, 114 Stat. 1549, 1549A-35, related to
    recourse loan program for commercial processors of dairy products.

-End-

-CITE-
    7 USC Sec. 7253                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7253. Consolidation and reform of Federal milk marketing
      orders

-STATUTE-
    (a) Amendment of orders
      (1) Required consolidation
        The Secretary shall amend Federal milk marketing orders issued
      under section 608c of this title to limit the number of Federal
      milk marketing orders to not less than 10 and not more than 14
      orders.
      (2) Inclusion of California as separate order
        Upon the petition and approval of California dairy producers in
      the manner provided in section 608c of this title, the Secretary
      shall designate the State of California as a separate Federal
      milk marketing order. The order covering California shall have
      the right to reblend and distribute order receipts to recognize
      quota value.
      (3) Related issues addressed in consolidation
        Among the issues the Secretary is authorized to implement as
      part of the consolidation of Federal milk marketing orders are
      the following:
          (A) The use of utilization rates and multiple basing points
        for the pricing of fluid milk.
          (B) The use of uniform multiple component pricing when
        developing 1 or more basic formula prices for manufacturing
        milk.
      (4) Effect of existing law
        In implementing the consolidation of Federal milk marketing
      orders and related reforms under this subsection, the Secretary
      may not consider, or base any decision on, the table contained in
      section 608c(5)(A) of this title.
    (b) Expedited process
      (1) Use of informal rulemaking
        To implement the consolidation of Federal milk marketing orders
      and related reforms under subsection (a) of this section, the
      Secretary shall use the notice and comment procedures provided in
      section 553 of title 5.
      (2) Time limitations
        (A) Proposed amendments
          The Secretary shall announce the proposed amendments to be
        made under subsection (a) of this section not later than 2
        years after April 4, 1996.
        (B) Final amendments
          The Secretary shall implement the amendments not later than 3
        years after April 4, 1996.
      (3) Effect of court order
        The actions authorized by this subsection are intended to
      ensure the timely publication and implementation of new and
      amended Federal milk marketing orders. In the event that the
      Secretary is enjoined or otherwise restrained by a court order
      from publishing or implementing the consolidation and related
      reforms under subsection (a) of this section, the length of time
      for which that injunction or other restraining order is effective
      shall be added to the time limitations specified in paragraph (2)
      thereby extending those time limitations by a period of time
      equal to the period of time for which the injunction or other
      restraining order is effective.
    (c) Failure to timely consolidate orders
      If the Secretary fails to implement the consolidation required
    under subsection (a)(1) of this section within the time period
    required under subsection (b)(2)(B) of this section (plus any
    additional period provided under subsection (b)(3) of this
    section), the Secretary may not assess or collect assessments from
    milk producers or handlers under such section 608c of this title
    for marketing order administration and services provided under such
    section after the end of that period until the consolidation is
    completed. The Secretary may not reduce the level of services
    provided under the section on account of the prohibition against
    assessments, but shall rather cover the cost of marketing order
    administration and services through funds available for the
    Agricultural Marketing Service of the Department.
    (d) Report regarding further reforms
      (1) Report required
        Not later than April 1, 1997, the Secretary shall submit to
      Congress a report - 
          (A) reviewing the Federal milk marketing order system
        established pursuant to section 608c of this title in light of
        the reforms required by subsection (a) of this section;
          (B) describing the efforts underway and the progress made in
        implementing the reforms required by subsection (a) of this
        section; and
          (C) containing such recommendations as the Secretary
        considers appropriate for further improvements and reforms to
        the Federal milk marketing order system.
      (2) Effect of other laws
        Any limitation imposed by Act of Congress on the conduct or
      completion of reports to Congress shall not apply to the report
      required under this section, unless the limitation specifically
      refers to this section.

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

-MISC1-
        USE OF OPTION 1A AS PRICE STRUCTURE FOR CLASS I MILK UNDER
                CONSOLIDATED FEDERAL MILK MARKETING ORDERS
      Pub. L. 106-113, div. B, Sec. 1000(a)(8) [Sec. 1], Nov. 29, 1999,
    113 Stat. 1536, 1501A-517, provided that:
      "(a) Final Rule Defined. - In this section, the term 'final rule'
    means the final rule for the consolidation and reform of Federal
    milk marketing orders that was published in the Federal Register on
    September 1, 1999 (64 Fed. Reg. 47897-48021), to comply with
    section 143 of the Federal Agriculture Improvement and Reform Act
    of 1996 (7 U.S.C. 7253).
      "(b) Implementation of Final Rule for Milk Order Reform. -
    Subject to subsection (c), the final rule shall take effect, and be
    implemented by the Secretary of Agriculture, on the first day of
    the first month beginning at least 30 days after the date of the
    enactment of this Act [Nov. 29, 1999].
      "(c) Use of Option 1A for Pricing Class I Milk. - In lieu of the
    Class I price differentials specified in the final rule, the
    Secretary of Agriculture shall price fluid or Class I milk under
    the Federal milk marketing orders using the Class I price
    differentials identified as Option 1A 'Location-Specific
    Differentials Analysis' in the proposed rule published in the
    Federal Register on January 30, 1998 (63 Fed. Reg. 4802, 4809),
    except that the Secretary shall include the corrections and
    modifications to such Class I differentials made by the Secretary
    through April 2, 1999.
      "(d) Effect of Prior Announcement of Minimum Prices. - If the
    Secretary of Agriculture announces minimum prices for milk under
    Federal milk marketing orders pursuant to section 1000.50 of title
    7, Code of Federal Regulations, before the effective date specified
    in subsection (b), the minimum prices so announced before that date
    shall be the only applicable minimum prices under Federal milk
    marketing orders for the month or months for which the prices have
    been announced.
      "(e) Implementation of Requirement. - The implementation of the
    final rule, as modified by subsection (c), shall not be subject to
    any of the following:
        "(1) The notice and hearing requirements of section 8c(3) of
      the Agricultural Adjustment Act (7 U.S.C. 608c(3)), reenacted
      with amendments by the Agricultural Marketing Agreement Act of
      1937, or the notice and comment provisions of section 553 of
      title 5, United States Code.
        "(2) A referendum conducted by the Secretary of Agriculture
      pursuant to subsections (17) or (19) of section 8c of the
      Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
      amendments by the Agricultural Marketing Agreement Act of 1937.
        "(3) The Statement of Policy of the Secretary of Agriculture
      effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices
      of proposed rulemaking and public participation in rulemaking.
        "(4) Chapter 35 of title 44, United States Code (commonly known
      as the Paperwork Reduction Act).
        "(5) Any decision, restraining order, or injunction issued by a
      United States court before the date of the enactment of this Act
      [Nov. 29, 1999]."

      FURTHER RULEMAKING TO DEVELOP PRICING METHODS FOR CLASS III AND
                   CLASS IV MILK UNDER MARKETING ORDERS
      Pub. L. 106-113, div. B, Sec. 1000(a)(8) [Sec. 2], Nov. 29, 1999,
    113 Stat. 1536, 1501A-518, provided that:
      "(a) Congressional Finding. - The Class III and Class IV milk
    pricing formulas included in the final decision for the
    consolidation and reform of Federal milk marketing orders, as
    published in the Federal Register on April 2, 1999 (64 Fed. Reg.
    16025), do not adequately reflect public comment on the original
    proposed rule published in the Federal Register on January 30, 1998
    (63 Fed. Reg. 4802), and are sufficiently different from the
    proposed rule and any comments submitted with regard to the
    proposed rule that further emergency rulemaking is merited.
      "(b) Rulemaking Required. - The Secretary of Agriculture shall
    conduct rulemaking, on the record after an opportunity for an
    agency hearing, to reconsider the Class III and Class IV milk
    pricing formulas included in the final rule for the consolidation
    and reform of Federal milk marketing orders that was published in
    the Federal Register on September 1, 1999 (64 Fed. Reg. 47897-
    48021).
      "(c) Time Period for Rulemaking. - On December 1, 2000, the
    Secretary of Agriculture shall publish in the Federal Register a
    final decision on the Class III and Class IV milk pricing formulas.
    The resulting formulas shall take effect, and be implemented by the
    Secretary, on January 1, 2001.
      "(d) Effect of Court Order. - The actions authorized by
    subsections (b) and (c) are intended to ensure the timely
    publication and implementation of new pricing formulas for Class
    III and Class IV milk. In the event that the Secretary of
    Agriculture is enjoined or otherwise restrained by a court order
    from implementing a final decision within the time period specified
    in subsection (c), the length of time for which that injunction or
    other restraining order is effective shall be added to the time
    limitations specified in subsection (c) thereby extending those
    time limitations by a period of time equal to the period of time
    for which the injunction or other restraining order is effective.
      "(e) Failure To Timely Complete Rulemaking. - If the Secretary of
    Agriculture fails to implement new Class III and Class IV milk
    pricing formulas within the time period required under subsection
    (c) (plus any additional period provided under subsection (d)), the
    Secretary may not assess or collect assessments from milk producers
    or handlers under section 8c of the Agricultural Adjustment Act (7
    U.S.C. 608c), reenacted with amendments by the Agricultural
    Marketing Agreement Act of 1937, for marketing order administration
    and services provided under such section after the end of that
    period until the pricing formulas are implemented. The Secretary
    may not reduce the level of services provided under that section on
    account of the prohibition against assessments, but shall rather
    cover the cost of marketing order administration and services
    through funds available for the Agricultural Marketing Service of
    the Department.
      "(f) Implementation of Requirement. - The implementation of the
    final decision on new Class III and Class IV milk pricing formulas
    shall not be subject to congressional review under chapter 8 of
    title 5, United States Code."

-End-

-CITE-
    7 USC Sec. 7254                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

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

-STATUTE-
      Nothing in this Act or any other provision of law shall be
    construed to preempt, prohibit, or otherwise limit the authority of
    the State of California, directly or indirectly, to establish or
    continue to effect any law, regulation, or requirement regarding - 
        (1) the percentage of milk solids or solids not fat in fluid
      milk products sold at retail or marketed in the State of
      California; or
        (2) the labeling of such fluid milk products with regard to
      milk solids or solids not fat.

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

-End-

-CITE-
    7 USC Sec. 7255                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7255. Milk manufacturing marketing adjustment

-STATUTE-
    (a) Maximum allowances established
      No State shall provide for a manufacturing allowance for the
    processing of milk in excess of - 
        (1) $1.65 per hundredweight of milk for milk manufactured into
      butter and nonfat dry milk; and
        (2) $1.80 per hundredweight of milk for milk manufactured into
      cheese.
    (b) "Manufacturing allowance" defined
      In this section, the term "manufacturing allowance" means - 
        (1) the amount by which the product price value of butter and
      nonfat dry milk manufactured from a hundred pounds of milk
      containing 3.5 pounds of butterfat and 8.7 pounds of milk solids
      not fat resulting from a State's yield and product price formulas
      exceeds the class price for the milk used to produce those
      products; or
        (2) the amount by which the product price value of cheese
      manufactured from a hundred pounds of milk containing 3.5 pounds
      of butterfat and 8.7 pounds of milk solids not fat resulting from
      a State's yield and product price formulas exceeds the class
      price for the milk used to produce cheese.
    (c) Effect of violation
      If the Secretary determines following a hearing that a State has
    in effect a manufacturing allowance that exceeds the manufacturing
    allowance authorized in subsection (a) of this section, the
    Secretary shall suspend purchases of cheddar cheese, butter, and
    nonfat dry milk produced in that State until such time as the State
    complies with such subsection.
    (d) Effective date; implementation
      This section (other than subsection (e) (!1) of this section)
    shall be effective during the period beginning on the first day of
    the first month beginning after April 4, 1996, and ending on
    December 31, 1999. During that period, the Secretary may exercise
    the authority provided to the Secretary under this section without
    regard to the issuance of regulations intended to carry out this
    section.

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

-COD-
                               CODIFICATION                           
      Section is comprised of section 145 of Pub. L. 104-127. Subsec.
    (e) of section 145 of Pub. L. 104-127 repealed section 1446e-1 of
    this title and enacted provisions set out as a note under section
    1446e-1 of this title.

-FOOTNOTE-
    (!1) See Codification note below.

-End-

-CITE-
    7 USC Sec. 7256                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7256. Northeast Interstate Dairy Compact

-STATUTE-
      Congress hereby consents to the Northeast Interstate Dairy
    Compact entered into among the States of Connecticut, Maine,
    Massachusetts, New Hampshire, Rhode Island and Vermont as specified
    in section 1(b) Senate Joint Resolution 28 of the 104th Congress,
    as placed on the calendar of the Senate, subject to the following
    conditions:
      (1) Finding of compelling public interest
        Based upon a finding by the Secretary of a compelling public
      interest in the Compact region, the Secretary may grant the
      States that have ratified the Northeast Interstate Dairy Compact,
      as of April 4, 1996, the authority to implement the Northeast
      Interstate Dairy Compact.
      (2) Limitation on manufacturing price
        The Northeast Interstate Dairy Compact Commission shall not
      regulate Class II, Class III, or Class III-A milk used for
      manufacturing purposes or any other milk, other than Class I
      (fluid) milk, as defined by a Federal milk marketing order issued
      under section 608c of this title.
      (3) Duration
        Consent for the Northeast Interstate Dairy Compact shall
      terminate on September 30, 2001.
      (4) Additional States
        Delaware, New Jersey, New York, Pennsylvania, Maryland, and
      Virginia are the only additional States that may join the
      Northeast Interstate Dairy Compact, individually or otherwise, if
      upon entry the State is contiguous to a participating State and
      if Congress consents to the entry of the State into the Compact
      after April 4, 1996.
      (5) Compensation of Commodity Credit Corporation
        Before the end of each fiscal year that a Compact price
      regulation is in effect, the Northeast Interstate Dairy Compact
      Commission shall compensate the Commodity Credit Corporation for
      the cost of any purchases of milk and milk products by the
      Corporation that result from the projected rate of increase in
      milk production for the fiscal year within the Compact region in
      excess of the projected national average rate of the increase in
      milk production, as determined by the Secretary.
      (6) Milk marketing order Administrator
        At the request of the Northeast Interstate Dairy Compact
      Commission, the Administrator of the applicable Federal milk
      marketing order issued under section 608c(5) (!1) of this title
      shall provide technical assistance to the Compact Commission and
      be compensated for that assistance.

      (7) Further conditions
        The Northeast Interstate Dairy Compact Commission shall not
      prohibit or in any way limit the marketing in the Compact region
      of any milk or milk product produced in any other production area
      in the United States. The Compact Commission shall respect and
      abide by the ongoing procedures between Federal milk marketing
      orders with respect to the sharing of proceeds from sales within
      the Compact region of bulk milk, packaged milk, or producer milk
      originating from outside of the Compact region. The Compact
      Commission shall not use compensatory payments under section
      10(6) of the Compact as a barrier to the entry of milk into the
      Compact region or for any other purpose. Establishment of a
      Compact over-order price, in itself, shall not be considered a
      compensatory payment or a limitation or prohibition on the
      marketing of milk.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 147, Apr. 4, 1996, 110 Stat. 919;
    Pub. L. 106-113, div. B, Sec. 1000(a)(8) [Sec. 4], Nov. 29, 1999,
    113 Stat. 1536, 1501A-520.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Senate Joint Resolution 28 of the 104th Congress, referred to in
    text, which would have granted consent of the Congress to the
    Northeast Interstate Dairy Compact, was not enacted into law during
    the 104th Congress.
      Section 608c(5) of this title, referred to in par. (6), was in
    the original "section 8(c)5 of the Agricultural Adjustment Act (7
    U.S.C. 608c), reenacted with amendments by the Agricultural
    Marketing Agreement Act of 1937," which was translated as meaning
    section 8c(5) of the Agricultural Adjustment Act, to reflect the
    probable intent of Congress.

-MISC1-
                                AMENDMENTS                            
      1999 - Par. (3). Pub. L. 106-113 substituted "on September 30,
    2001." for "concurrent with the Secretary's implementation of the
    dairy pricing and Federal milk marketing order consolidation and
    reforms under section 7253 of this title."

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    7 USC Sec. 7257                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7257. Authority to assist in establishment and maintenance of
      one or more export trading companies

-STATUTE-
      The Secretary of Agriculture shall, consistent with the
    obligations of the United States as a member of the World Trade
    Organization, provide such advice and assistance to the United
    States dairy industry as may be necessary to enable that industry
    to establish and maintain one or more export trading companies
    under the Export Trading Company Act of 1982 (15 U.S.C. 4001 et
    seq.) for the purpose of facilitating the international market
    development for and exportation of dairy products produced in the
    United States.

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

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Export Trading Company Act of 1982, referred to in text, is
    title I of Pub. L. 97-290, Oct. 8, 1982, 96 Stat. 1233, as amended,
    which is classified generally to subchapter I (Sec. 4001 et seq.)
    of chapter 66 of Title 15, Commerce and Trade. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 4001 of Title 15 and Tables.

-End-

-CITE-
    7 USC Sec. 7258                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7258. Standby authority to indicate entity best suited to
      provide international market development and export services

-STATUTE-
    (a) Indication of entity best suited to assist international market
      development for and export of United States dairy products
      The Secretary of Agriculture shall indicate which entity or
    entities autonomous of the Government of the United States, which
    seeks such a designation, is best suited to facilitate the
    international market development for and exportation of United
    States dairy products, if the Secretary determines that - 
        (1) the United States dairy industry has not established an
      export trading company under the Export Trading Company Act of
      1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating the
      international market development for an exportation of dairy
      products produced in the United States on or before June 30,
      1997; or
        (2) the quantity of exports of United States dairy products
      during the 12-month period preceding July 1, 1998 does not exceed
      the quantity of exports of United States dairy products during
      the 12-month period preceding July 1, 1997 by 1.5 billion pounds
      (milk equivalent, total solids basis).
    (b) Funding of export activities
      The Secretary shall assist the entity or entities identified
    under subsection (a) of this section in identifying sources of
    funding for the activities specified in subsection (a) of this
    section from within the dairy industry and elsewhere.
    (c) Application of section
      This section shall apply only during the period beginning on July
    1, 1997 and ending on September 30, 2000.

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

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Export Trading Company Act of 1982, referred to in subsec.
    (a)(1), is title I of Pub. L. 97-290, Oct. 8, 1982, 96 Stat. 1233,
    as amended, which is classified generally to subchapter I (Sec.
    4001 et seq.) of chapter 66 of Title 15, Commerce and Trade. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 4001 of Title 15 and Tables.

-End-

-CITE-
    7 USC Sec. 7259                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part A - Dairy

-HEAD-
    Sec. 7259. Study and report regarding potential impact of Uruguay
      Round on prices, income, and government purchases

-STATUTE-
    (a) Study
      The Secretary of Agriculture shall conduct a study, on a variety
    by variety of cheese basis, to determine the potential impact on
    milk prices in the United States, dairy producer income, and
    Federal dairy program costs, of the allocation of additional cheese
    granted access to the United States as a result of the obligations
    of the United States as a member of the World Trade Organization.
    (b) Report
      Not later than June 30, 1997, the Secretary shall report to the
    Committee on Agriculture, Nutrition, and Forestry of the Senate and
    the Committee on Agriculture of the House of Representatives the
    results of the study conducted under this section.
    (c) Rule of construction
      Any limitation imposed by Act of Congress on the conduct or
    completion of studies or reports to Congress shall not apply to the
    study and report required under this section, unless the limitation
    specifically refers to this section.

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

-End-

-CITE-
    7 USC Part B - Sugar                                        01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part B - Sugar

-HEAD-
                              PART B - SUGAR                          

-End-

-CITE-
    7 USC Sec. 7271                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part B - Sugar

-HEAD-
    Sec. 7271. Repealed.

-MISC1-
    Sec. 7271. Repealed. Pub. L. 107-171, title I, Sec. 1310(a)(1), May
      13, 2002, 116 Stat. 182.
      Section, Pub. L. 104-127, title I, Sec. 155, Apr. 4, 1996, 110
    Stat. 922, related to Secretary making nonrecourse loans available
    to producers of quota peanuts.

-End-

-CITE-
    7 USC Sec. 7272                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER IV - OTHER COMMODITIES
    Part B - Sugar

-HEAD-
    Sec. 7272. Sugar program

-STATUTE-
    (a) Sugarcane
      The Secretary shall make loans available to processors of
    domestically grown sugarcane at a rate equal to 18 cents per pound
    for raw cane sugar.
    (b) Sugar beets
      The Secretary shall make loans available to processors of
    domestically grown sugar beets at a rate equal to 22.9 cents per
    pound for refined beet sugar.
    (c) Loan rate adjustments
      (1) In general
        The Secretary may reduce the loan rate specified in subsection
      (a) of this section for domestically grown sugarcane and
      subsection (b) of this section for domestically grown sugar beets
      if the Secretary determines that negotiated reductions in export
      subsidies and domestic subsidies provided for sugar of other
      major sugar growing, producing, and exporting countries in the
      aggregate exceed the commitments made as part of the Agreement on
      Agriculture.
      (2) Extent of reduction
        The Secretary shall not reduce the loan rate under subsection
      (a) or (b) of this section below a rate that provides an equal
      measure of support to that provided by other major sugar growing,
      producing, and exporting countries, based on an examination of
      both domestic and export subsidies subject to reduction in the
      Agreement on Agriculture.
      (3) Announcement of reduction
        The Secretary shall announce any loan rate reduction to be made
      under this subsection as far in advance as is practicable.
      (4) Definitions
        In this subsection:
        (A) Agreement on Agriculture
          The term "Agreement on Agriculture" means the Agreement on
        Agriculture referred to in section 3511(d)(2) of title 19, or
        any amendatory or successor agreement.
        (B) Major sugar countries
          The term "major sugar growing, producing, and exporting
        countries" means - 
            (i) the countries of the European Union; and
            (ii) the 10 foreign countries not covered by subparagraph
          (A) that the Secretary determines produce the greatest
          quantity of sugar.
    (d) Term of loans
      (1) In general
        A loan under this section during any fiscal year shall be made
      available not earlier than the beginning of the fiscal year and
      shall mature at the earlier of - 
          (A) the end of the 9-month period beginning on the first day
        of the first month after the month in which the loan is made;
        or
          (B) the end of the fiscal year in which the loan is made.
      (2) Supplemental loans
        In the case of a loan made under this section in the last 3
      months of a fiscal year, the processor may repledge the sugar as
      collateral for a second loan in the subsequent fiscal year,
      except that the second loan shall - 
          (A) be made at the loan rate in effect at the time the second
        loan is made; and
          (B) mature in 9 months less the quantity of time that the
        first loan was in effect.
    (e) Loan type; processor assurances
      (1) Nonrecourse loans
        The Secretary shall carry out this section through the use of
      nonrecourse loans.
      (2) Processor assurances
        (A) In general
          The Secretary shall obtain from each processor that receives
        a loan under this section such assurances as the Secretary
        considers adequate to ensure that the processor will provide
        payments to producers that are proportional to the value of the
        loan received by the processor for the sugar beets and
        sugarcane delivered by producers to the processor.
        (B) Minimum payments
          (i) In general
            Subject to clause (ii), the Secretary may establish
          appropriate minimum payments for purposes of this paragraph.
          (ii) Limitation
            In the case of sugar beets, the minimum payment established
          under clause (i) shall not exceed the rate of payment
          provided for under the applicable contract between a sugar
          beet producer and a sugar beet processor.
          (iii) Effect of disaster
            The Secretary may not bar a beet sugar processor from
          eligibility to obtain a loan under this section because of
          the failure of the processor to provide the appropriate
          minimum payment established under this subsection if the
          failure - 
              (I) occurred during a crop year prior to May 13, 2002;
            and
              (II) was related, at least in part, to the effects of a
            natural disaster, including damage from freeze.
      (3) Administration
        The Secretary may not impose or enforce any prenotification
      requirement, or similar administrative requirement not otherwise
      in effect on May 13, 2002, that has the effect of preventing a
      processor from electing to forfeit the loan collateral (of an
      acceptable grade and quality) on the maturity of the loan.
    (f) Loans for in-process sugar
      (1) Definition of in-process sugars and syrups
        In this subsection, the term "in-process sugars and syrups"
      does not include raw sugar, liquid sugar, invert sugar, invert
      syrup, or other finished product that is otherwise eligible for a
      loan under subsection (a) or (b) of this section.
      (2) Availability
        The Secretary shall make nonrecourse loans available to
      processors of a crop of domestically grown sugarcane and sugar
      beets for in-process sugars and syrups derived from the crop.
      (3) Loan rate
        The loan rate shall be equal to 80 percent of the loan rate
      applicable to raw cane sugar or refined beet sugar, as determined
      by the Secretary on the basis of the source material for the in-
      process sugars and syrups.
      (4) Further processing on forfeiture
        (A) In general
          As a condition of the forfeiture of in-process sugars and
        syrups serving as collateral for a loan under paragraph (2),
        the processor shall, within such reasonable time period as the
        Secretary may prescribe and at no cost to the Commodity Credit
        Corporation, convert the in-process sugars and syrups into raw
        cane sugar or refined beet sugar of acceptable grade and
        quality for sugars eligible for loans under subsection (a) or
        (b) of this section.
        (B) Transfer to Corporation
          Once the in-process sugars and syrups are fully processed
        into raw cane sugar or refined beet sugar, the processor shall
        transfer the sugar to the Commodity Credit Corporation.
        (C) Payment to processor
          On transfer of the sugar, the Secretary shall make a payment
        to the processor in an amount equal to the amount obtained by
        multiplying - 
            (i) the difference between - 
              (I) the loan rate for raw cane sugar or refined beet
            sugar, as appropriate; and
              (II) the loan rate the processor received under paragraph
            (3); by

            (ii) the quantity of sugar transferred to the Secretary.
      (5) Loan conversion
        If the processor does not forfeit the collateral as described
      in paragraph (4), but instead further processes the in-process
      sugars and syrups into raw cane sugar or refined beet sugar and
      repays the loan on the in-process sugars and syrups, the
      processor may obtain a loan under subsection (a) or (b) of this
      section for the raw cane sugar or refined beet sugar, as
      appropriate.
      (6) Term of loan
        The term of a loan made under this subsection for a quantity of
      in-process sugars and syrups, when combined with the term of a
      loan made with respect to the raw cane sugar or refined beet
      sugar derived from the in-process sugars and syrups, may not
      exceed 9 months, consistent with subsection (d) of this section.
    (g) Avoiding forfeitures; Corporation inventory disposition
      (1) In general
        Subject to subsection (e)(3) of this section, to the maximum
      extent practicable, the Secretary shall operate the program
      established under this section at no cost to the Federal
      Government by avoiding the forfeiture of sugar to the Commodity
      Credit Corporation.
      (2) Inventory disposition
        (A) In general
          To carry out paragraph (1), the Commodity Credit Corporation
        may accept bids to obtain raw cane sugar or refined beet sugar
        in the inventory of the Commodity Credit Corporation from (or
        otherwise make available such commodities, on appropriate terms
        and conditions, to) processors of sugarcane and processors of
        sugar beets (acting in conjunction with the producers of the
        sugarcane or sugar beets processed by the processors) in return
        for the reduction of production of raw cane sugar or refined
        beet sugar, as appropriate.
        (B) Additional authority
          The authority provided under this paragraph is in addition to
        any authority of the Commodity Credit Corporation under any
        other law.
    (h) Information reporting
      (1) Duty of processors and refiners to report
        A sugarcane processor, cane sugar refiner, and sugar beet
      processor shall furnish the Secretary, on a monthly basis, such
      information as the Secretary may require to administer sugar
      programs, including the quantity of purchases of sugarcane, sugar
      beets, and sugar, and production, importation, distribution, and
      stock levels of sugar.
      (2) Duty of producers to report
        (A) Proportionate share States
          As a condition of a loan made to a processor for the benefit
        of a producer, the Secretary shall require each producer of
        sugarcane located in a State (other than the Commonwealth of
        Puerto Rico) in which there are in excess of 250 producers of
        sugarcane to report, in the manner prescribed by the Secretary,
        the sugarcane yields and acres planted to sugarcane of the
        producer.
        (B) Other States
          The Secretary may require each producer of sugarcane or sugar
        beets not covered by subparagraph (A) to report, in a manner
        prescribed by the Secretary, the yields of, and acres planted
        to, sugarcane or sugar beets, respectively, of the producer.
      (3) Duty of importers to report
        (A) In general
          Except as provided in subparagraph (B), the Secretary shall
        require an importer of sugars, syrups, or molasses to be used
        for human consumption or to be used for the extraction of sugar
        for human consumption to report, in the manner prescribed by
        the Secretary, the quantities of the products imported by the
        importer and the sugar content or equivalent of the products.
        (B) Tariff-rate quotas
          Subparagraph (A) shall not apply to sugars, syrups, or
        molasses that are within the quantities of tariff-rate quotas
        that are subject to the lower rate of duties.
      (4) Penalty
        Any person willfully failing or refusing to furnish the
      information, or furnishing willfully any false information, shall
      be subject to a civil penalty of not more than $10,000 for each
      such violation.
      (5) Monthly reports
        Taking into consideration the information received under this
      subsection, the Secretary shall publish on a monthly basis
      composite data on production, imports, distribution, and stock
      levels of sugar.
    (i) Substitution of refined sugar
      For purposes of Additional U.S. Note 6 to chapter 17 of the
    Harmonized Tariff Schedule of the United States and the reexport
    programs and polyhydric alcohol program administered by the
    Secretary, all refined sugars (whether derived from sugar beets or
    sugarcane) produced by cane sugar refineries and beet sugar
    processors shall be fully substitutable for the export of sugar and
    sugar-containing products under those programs.
    (j) Effective period
      This section shall be effective only for the 1996 through 2007
    crops of sugar beets and sugarcane.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 156, Apr. 4, 1996, 110 Stat. 931;
    Pub. L. 106-387, Sec. 1(a) [title VIII, Sec. 836], Oct. 28, 2000,
    114 Stat. 1549, 1549A-62; Pub. L. 107-171, title I, Sec. 1401(a),
    May 13, 2002, 116 Stat. 183.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Harmonized Tariff Schedule of the United States, referred to
    in subsec. (i), is not set out in the Code. See Publication of
    Harmonized Tariff Schedule note set out under section 1202 of Title
    19, Customs Duties.

-MISC1-
                                AMENDMENTS                            
      2002 - Pub. L. 107-171 reenacted section catchline and amended
    text generally, substituting substantially similar provisions in
    subsecs. (a), (b), (d), (e), and (h), and substituting in subsec.
    (c) provisions relating to loan rate adjustments for provisions
    relating to reduction in loan rates, in subsec. (f) provisions
    relating to loans for in-process sugar for provisions for marketing
    assessment, in subsec. (g) provisions relating to avoiding
    forfeitures and corporate inventory disposition for provisions
    relating to forfeiture penalty, in subsec. (i) provisions relating
    to substitution of refined sugar for provisions relating to crops,
    and adding subsec. (j).
      2000 - Subsec. (e)(1). Pub. L. 106-387, Sec. 1(a) [title VIII,
    Sec. 836(1)(B)], substituted "The" for "Subject to paragraph (2),
    the".
      Pub. L. 106-387, Sec. 1(a) [title VIII, Sec. 836(1)(A)],
    substituted "nonrecourse" for "recourse".
      Subsec. (e)(2), (3). Pub. L. 106-387, Sec. 1(a) [title VIII, Sec.
    836(2)-(4)], redesignated par. (3) as (2), substituted "The
    Secretary shall" for "If the Secretary is required under paragraph
    (2) to make nonrecourse loans available during a fiscal year or to
    change recourse loans into nonrecourse loans, the Secretary shall",
    and struck out heading and text of former par. (2). Text read as
    follows: "During any fiscal year in which the tariff rate quota for
    imports of sugar into the United States is established at, or is
    increased to, a level in excess of 1,500,000 short tons raw value,
    the Secretary shall carry out this section by making available
    nonrecourse loans. Any recourse loan previously made available by
    the Secretary under this section during the fiscal year shall be
    changed by the Secretary into a nonrecourse loan."

                 EFFECTIVE DATE OF ASSESSMENT TERMINATION             
      Pub. L. 107-171, title I, Sec. 1401(b), May 13, 2002, 116 Stat.
    187, provided that: "Subsection (f) of section 156 of the Federal
    Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(f)),
    as in effect immediately before the enactment of the Farm Security
    and Rural Investment Act of 2002 [Pub. L. 107-171], is deemed to
    have been repealed effective as of October 1, 2001."

                                REGULATIONS                            
      Pub. L. 106-387, Sec. 1(a) [title VIII, Sec. 840], Oct. 28, 2000,
    114 Stat. 1549, 1549A-63, provided that: "As soon as practicable
    after the date of enactment of this Act [Oct. 28, 2000], the
    Secretary and the Commodity Credit Corporation, as appropriate,
    shall issue such regulations as are necessary to implement sections
    804, 805, 806, 809, 810, 811, 812, 814, 815, 816, 836, 837, 838,
    839, 841, 843, 844, and 845 of this title [amending this section
    and section 3720B of Title 31, Money and Finance, enacting
    provisions set out as notes under section 3720B of Title 31, and
    amending provisions set out as a note under section 1421 of this
    title]: Provided, That the issuance of the regulations shall be
    made without regard to: (1) the notice and comment provisions of
    section 553 of title 5, United States Code; (2) the Statement of
    Policy of the Secretary of Agriculture effective July 24, 1971 (36
    Fed. Reg. 13804), relating to notices of proposed rulemaking and
    public participation in rulemaking; and (3) chapter 35 of title 44,
    United States Code (commonly known as the 'Paperwork Reduction
    Act'): Provided further, That in carrying out this section, the
    Secretary shall use the authority provided under section 808 of
    title 5, United States Code."

-End-

-CITE-
    7 USC SUBCHAPTER V - ADMINISTRATION                         01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER V - ADMINISTRATION

-HEAD-
                       SUBCHAPTER V - ADMINISTRATION                   

-End-

-CITE-
    7 USC Sec. 7281                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER V - ADMINISTRATION

-HEAD-
    Sec. 7281. Administration

-STATUTE-
    (a) Use of Commodity Credit Corporation
      The Secretary shall carry out this chapter through the Commodity
    Credit Corporation.
    (b) Omitted
    (c) Determinations by Secretary
      A determination made by the Secretary under this chapter shall be
    final and conclusive.
    (d) Regulations
      Not later than 90 days after April 4, 1996, the Secretary and the
    Commodity Credit Corporation, as appropriate, shall issue such
    regulations as are necessary to implement this chapter. The
    issuance of the regulations shall be made without regard to - 
        (1) the notice and comment provisions of section 553 of title
      5;
        (2) the Statement of Policy of the Secretary of Agriculture
      effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices
      of proposed rulemaking and public participation in rulemaking;
      and
        (3) chapter 35 of title 44, United States Code (commonly know
      (!1) as the "Paperwork Reduction Act").

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 161, Apr. 4, 1996, 110 Stat. 934.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of "this chapter", referred to in text, see note
    set out under section 7201 of this title.

-COD-
                               CODIFICATION                           
      Section is comprised of section 161 of Pub. L. 104-127. Subsec.
    (b) of section 161 of Pub. L. 104-127 amended sections 714b, 714i,
    and 714k of Title 15, Commerce and Trade.

-FOOTNOTE-
    (!1) So in original. Probably should be "known".

-End-

-CITE-
    7 USC Sec. 7282                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER V - ADMINISTRATION

-HEAD-
    Sec. 7282. Adjustments of loans

-STATUTE-
    (a) Adjustment authority
      The Secretary may make appropriate adjustments in the loan rates
    for any commodity for differences in grade, type, quality,
    location, and other factors.
    (b) Manner of adjustment
      The adjustments under the authority of this section shall, to the
    maximum extent practicable, be made in such manner that the average
    loan level for the commodity will, on the basis of the anticipated
    incidence of the factors, be equal to the level of support
    determined as provided in this chapter and title I of the Farm
    Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.].
    (c) Adjustment on county basis
      The Secretary may establish loan rates for a crop for producers
    in individual counties in a manner that results in the lowest such
    rate being 95 percent of the national average loan rate, except
    that such action shall not result in an increase in outlays.
    Adjustments under this subsection shall not result in an increase
    in the national average loan rate for any year.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 162, Apr. 4, 1996, 110 Stat. 935;
    Pub. L. 107-171, title I, Sec. 1606, May 13, 2002, 116 Stat. 218.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of "this chapter", referred to in subsec. (b), see
    note set out under section 7201 of this title.
      The Farm Security and Rural Investment Act of 2002, referred to
    in subsec. (b), is Pub. L. 107-171, May 13, 2002, 116 Stat. 134.
    Title I of the Act is classified principally to chapter 106 (Sec.
    7901 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note under section 7901 of this
    title and Tables.

-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (b). Pub. L. 107-171 substituted "this chapter and
    title I of the Farm Security and Rural Investment Act of 2002" for
    "this chapter".

-End-

-CITE-
    7 USC Sec. 7283                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER V - ADMINISTRATION

-HEAD-
    Sec. 7283. Commodity Credit Corporation interest rate

-STATUTE-
    (a) In general
      Notwithstanding any other provision of law, the monthly Commodity
    Credit Corporation interest rate applicable to loans provided for
    agricultural commodities by the Corporation shall be 100 basis
    points greater than the rate determined under the applicable
    interest rate formula in effect on October 1, 1995.
    (b) Sugar
      For purposes of this section, raw cane sugar, refined beet sugar,
    and in-process sugar eligible for a loan under section 7272 of this
    title shall not be considered an agricultural commodity.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 163, Apr. 4, 1996, 110 Stat. 935;
    Pub. L. 107-171, title I, Sec. 1401(c), May 13, 2002, 116 Stat.
    187.)

-MISC1-
                                AMENDMENTS                            
      2002 - Pub. L. 107-171 designated existing provisions as subsec.
    (a), inserted heading, and added subsec. (b).

-End-

-CITE-
    7 USC Sec. 7284                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER V - ADMINISTRATION

-HEAD-
    Sec. 7284. Personal liability of producers for deficiencies

-STATUTE-
    (a) In general
      Except as provided in subsection (b) of this section, no producer
    shall be personally liable for any deficiency arising from the sale
    of the collateral securing any nonrecourse loan made under this
    chapter and title I of the Farm Security and Rural Investment Act
    of 2002 [7 U.S.C. 7901 et seq.] unless the loan was obtained
    through a fraudulent representation by the producer.
    (b) Limitations
      Subsection (a) of this section shall not prevent the Commodity
    Credit Corporation or the Secretary from requiring a producer to
    assume liability for - 
        (1) a deficiency in the grade, quality, or quantity of a
      commodity stored on a farm or delivered by the producer;
        (2) a failure to properly care for and preserve a commodity; or
        (3) a failure or refusal to deliver a commodity in accordance
      with a program established under this chapter and title I of the
      Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et
      seq.].
    (c) Acquisition of collateral
      In the case of a nonrecourse loan made under this chapter and
    title I of the Farm Security and Rural Investment Act of 2002 [7
    U.S.C. 7901 et seq.] or the Commodity Credit Corporation Charter
    Act (15 U.S.C. 714 et seq.), if the Commodity Credit Corporation
    acquires title to the unredeemed collateral, the Corporation shall
    be under no obligation to pay for any market value that the
    collateral may have in excess of the loan indebtedness.
    (d) Sugarcane and sugar beets
      A security interest obtained by the Commodity Credit Corporation
    as a result of the execution of a security agreement by the
    processor of sugarcane or sugar beets shall be superior to all
    statutory and common law liens on raw cane sugar and refined beet
    sugar in favor of the producers of sugarcane and sugar beets and
    all prior recorded and unrecorded liens on the crops of sugarcane
    and sugar beets from which the sugar was derived.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 164, Apr. 4, 1996, 110 Stat. 935;
    Pub. L. 107-171, title I, Sec. 1607, May 13, 2002, 116 Stat. 218.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of "this chapter", referred to in text, see note
    set out under section 7201 of this title.
      The Farm Security and Rural Investment Act of 2002, referred to
    in subsecs. (a), (b)(3), and (c), is Pub. L. 107-171, May 13, 2002,
    116 Stat. 134. Title I of the Act is classified principally to
    chapter 106 (Sec. 7901 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note under
    section 7901 of this title and Tables.
      The Commodity Credit Corporation Charter Act, referred to in
    subsec. (c), is act June 29, 1948, ch. 704, 62 Stat. 1070, as
    amended, which is classified generally to subchapter II (Sec. 714
    et seq.) of chapter 15 of Title 15, Commerce and Trade. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 714 of title 15 and Tables.

-MISC1-
                                AMENDMENTS                            
      2002 - Subsecs. (a), (b)(3), (c). Pub. L. 107-171 substituted
    "this chapter and title I of the Farm Security and Rural Investment
    Act of 2002" for "this chapter".

-End-

-CITE-
    7 USC Sec. 7285                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER V - ADMINISTRATION

-HEAD-
    Sec. 7285. Commodity Credit Corporation sales price restrictions

-STATUTE-
    (a) General sales authority
      The Commodity Credit Corporation may sell any commodity owned or
    controlled by the Corporation at any price that the Secretary
    determines will maximize returns to the Corporation.
    (b) Nonapplication of sales price restrictions
      Subsection (a) of this section shall not apply to - 
        (1) a sale for a new or byproduct use;
        (2) a sale of peanuts or oilseeds for the extraction of oil;
        (3) a sale for seed or feed if the sale will not substantially
      impair any loan program;
        (4) a sale of a commodity that has substantially deteriorated
      in quality or as to which there is a danger of loss or waste
      through deterioration or spoilage;
        (5) a sale for the purpose of establishing a claim arising out
      of a contract or against a person who has committed fraud,
      misrepresentation, or other wrongful act with respect to the
      commodity;
        (6) a sale for export, as determined by the Corporation; and
        (7) a sale for other than a primary use.
    (c) Presidential disaster areas
      (1) In general
        Notwithstanding subsection (a) of this section, on such terms
      and conditions as the Secretary may consider in the public
      interest, the Corporation may make available any commodity or
      product owned or controlled by the Corporation for use in
      relieving distress - 
          (A) in any area in the United States (including the Virgin
        Islands) declared by the President to be an acute distress area
        because of unemployment or other economic cause, if the
        President finds that the use will not displace or interfere
        with normal marketing of agricultural commodities; and
          (B) in connection with any major disaster determined by the
        President to warrant assistance by the Federal Government under
        the Robert T. Stafford Disaster Relief and Emergency Assistance
        Act (42 U.S.C. 5121 et seq.).
      (2) Costs
        Except on a reimbursable basis, the Corporation shall not bear
      any costs in connection with making a commodity available under
      paragraph (1) beyond the cost of the commodity to the Corporation
      incurred in - 
          (A) the storage of the commodity; and
          (B) the handling and transportation costs in making delivery
        of the commodity to designated agencies at 1 or more central
        locations in each State or other area.
    (d) Efficient operations
      Subsection (a) of this section shall not apply to the sale of a
    commodity the disposition of which is desirable in the interest of
    the effective and efficient conduct of the operations of the
    Corporation because of the small quantity of the commodity
    involved, or because of the age, location, or questionable
    continued storability of the commodity.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 165, Apr. 4, 1996, 110 Stat. 936.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsec. (c)(1)(B), is Pub. L. 93-288, May 22,
    1974, 88 Stat. 143, as amended, which is classified principally to
    chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and
    Welfare. For complete classification of this Act to the Code, see
    Short Title note set out under section 5121 of Title 42 and Tables.

-End-

-CITE-
    7 USC Sec. 7286                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER V - ADMINISTRATION

-HEAD-
    Sec. 7286. Commodity certificates

-STATUTE-
    (a) In general
      In making in-kind payments under subchapter III of this chapter
    and subtitle (!1) B and C of title I of the Farm Security and Rural
    Investment Act of 2002 [7 U.S.C. 7931 et seq., 7951 et seq.], the
    Commodity Credit Corporation may - 

        (1) acquire and use commodities that have been pledged to the
      Commodity Credit Corporation as collateral for loans made by the
      Corporation;
        (2) use other commodities owned by the Commodity Credit
      Corporation; and
        (3) redeem negotiable marketing certificates for cash under
      terms and conditions established by the Secretary.
    (b) Methods of payment
      The Commodity Credit Corporation may make in-kind payments - 
        (1) by delivery of the commodity at a warehouse or other
      similar facility;
        (2) by the transfer of negotiable warehouse receipts;
        (3) by the issuance of negotiable certificates, which the
      Commodity Credit Corporation shall exchange for a commodity owned
      or controlled by the Corporation in accordance with regulations
      promulgated by the Corporation; or
        (4) by such other methods as the Commodity Credit Corporation
      determines appropriate to promote the efficient, equitable, and
      expeditious receipt of the in-kind payments so that a person
      receiving the payments receives the same total return as if the
      payments had been made in cash.
    (c) Administration
      (1) Form
        At the option of a producer, the Commodity Credit Corporation
      shall make negotiable certificates authorized under subsection
      (b)(3) of this section available to the producer, in the form of
      program payments or by sale, in a manner that the Corporation
      determines will encourage the orderly marketing of commodities
      pledged as collateral for loans made to producers under
      subchapter III of this chapter and subtitle (!1) B and C of title
      I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C.
      7931 et seq., 7951 et seq.].
      (2) Transfer
        A negotiable certificate issued in accordance with this
      subsection may be transferred to another person in accordance
      with regulations promulgated by the Secretary.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 166, as added Pub. L. 106-78, title
    VIII, Sec. 812, Oct. 22, 1999, 113 Stat. 1181; amended Pub. L. 107-
    171, title I, Sec. 1608, May 13, 2002, 116 Stat. 218.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Farm Security and Rural Investment Act of 2002, referred to
    in subsecs. (a) and (c)(1), is Pub. L. 107-171, May 13, 2002, 116
    Stat. 134. Subtitle B of title I of the Act is classified generally
    to subchapter II (Sec. 7931 et seq.) of chapter 106 of this title.
    Subtitle C of title I of the Act is classified principally to
    subchapter III (Sec. 7951 et seq.) of chapter 106 of this title.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 7901 of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      2002 - Subsecs. (a), (c)(1). Pub. L. 107-171 substituted
    "subchapter III of this chapter and subtitle B and C of title I of
    the Farm Security and Rural Investment Act of 2002" for "subchapter
    III of this chapter".

-FOOTNOTE-
    (!1) So in original. Probably should be "subtitles".

-End-

-CITE-
    7 USC SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY     01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

-HEAD-
             SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY         

-End-

-CITE-
    7 USC Sec. 7301                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

-HEAD-
    Sec. 7301. Suspension and repeal of permanent price support
      authority

-STATUTE-
    (a) Agricultural Adjustment Act of 1938
      (1) Suspensions
        The following provisions of the Agricultural Adjustment Act of
      1938 [7 U.S.C. 1281 et seq.] shall not be applicable to the 1996
      through 2001 crops of loan commodities, peanuts, and sugar and
      shall not be applicable to milk during the period beginning on
      April 4, 1996, and ending on December 31, 2002:
          (A) Parts II through V of subtitle B of title III (7 U.S.C.
        1326-1351) [7 U.S.C. 1321 et seq., 1331 et seq., 1341 et seq.,
        1351].
          (B) Subsections (a) through (j) of section 358 (7 U.S.C.
        1358).(!1)

          (C) Subsections (a) through (h) of section 358a (7 U.S.C.
        1358a).(!1)
          (D) Subsections (a), (b), (d), and (e) of section 358d (7
        U.S.C. 1359).(!1)
          (E) Part VII of subtitle B of title III (7 U.S.C. 1359aa-
        1359jj).
          (F) In the case of peanuts, part I of subtitle C of title III
        (7 U.S.C. 1361-1368).
          (G) In the case of upland cotton, section 377 (7 U.S.C.
        1377).
          (H) Subtitle D of title III (7 U.S.C. 1379a-1379j).
          (I) Title IV (7 U.S.C. 1401-1407).
      (2) Omitted
    (b) Agricultural Act of 1949
      (1) Suspensions
        The following provisions of the Agricultural Act of 1949 [7
      U.S.C. 1421 et seq.] shall not be applicable to the 1996 through
      2002 crops of loan commodities, peanuts, and sugar and shall not
      be applicable to milk during the period beginning on April 4,
      1996, and ending on December 31, 2002:
          (A) Section 101 (7 U.S.C. 1441).
          (B) Section 103(a) (7 U.S.C. 1444(a)).
          (C) Section 105 (7 U.S.C. 1444b).
          (D) Section 107 (7 U.S.C. 1445a).
          (E) Section 110 (7 U.S.C. 1445e).
          (F) Section 112 (7 U.S.C. 1445g).
          (G) Section 115 (7 U.S.C. 1445k).
          (H) Section 201 (7 U.S.C. 1446).
          (I) Title III (7 U.S.C. 1447-1449).
          (J) Title IV (7 U.S.C. 1421-1433d), other than sections 404,
        412, and 416 (7 U.S.C. 1424, 1429, and 1431).
          (K) Title V (7 U.S.C. 1461-1469).
          (L) Title VI (7 U.S.C. 1471-1471j).
      (2) Repeals
        The following provisions of the Agricultural Act of 1949 [7
      U.S.C. 1421 et seq.] are repealed:
          (A) Section 101B (7 U.S.C. 1441-2).
          (B) Section 103B (7 U.S.C. 1444-2).
          (C) Section 105B (7 U.S.C. 1444f).
          (D) Section 107B [7 U.S.C. 1445b-3a].
          (E) Section 108B (7 U.S.C. 1445c-3).
          (F) Section 113 (7 U.S.C. 1445h).
          (G) Subsections (b) and (c) of section 114 (7 U.S.C. 1445j).
          (H) Sections 205, 206, and 207 (7 U.S.C. 1446f, 1446g, and
        1446h).
          (I) Sections 406 and 427 (7 U.S.C. 1426 and 1433f).
      (3) Omitted
    (c) Suspension of certain quota provisions
      Section 1340 of this title shall not be applicable to the crops
    of wheat planted for harvest in the calendar years 1996 through
    2002.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 171, Apr. 4, 1996, 110 Stat. 937;
    Pub. L. 107-171, title I, Sec. 1602(d), May 13, 2002, 116 Stat.
    213.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Agricultural Adjustment Act of 1938, referred to in subsec.
    (a)(1), is act Feb. 16, 1938, ch. 30, 52 Stat. 31, as amended,
    which is classified principally to chapter 35 (Sec. 1281 et seq.)
    of this title. Parts II through V and VII of subtitle B of title
    III of the Act are classified generally to subparts II (Sec. 1321
    et seq.), III (Sec. 1331 et seq.), IV (Sec. 1341 et seq.), V (Sec.
    1351, which was omitted from the Code), and VII (Sec. 1359aa et
    seq.), respectively, of part B of subchapter II of chapter 35 of
    this title. Part I of subtitle C of title III of the Act is
    classified generally to subpart I (Sec. 1361 et seq.) of part C of
    subchapter II of chapter 35 of this title. Subtitle D of title III
    of the Act is classified generally to part D (Sec. 1379a et seq.)
    of subchapter II of chapter 35 of this title. Title IV of the Act
    was classified generally to subchapter III (Sec. 1401 et seq.) of
    chapter 35 of this title, and was omitted from the Code. For
    complete classification of this Act to the Code, see section 1281
    of this title and Tables.
      Sections 1358, 1358a, and 1359 of this title, referred to in
    subsec. (a)(1)(B)-(D), were repealed by Pub. L. 107-171, title I,
    Sec. 1309(a)(1), May 13, 2002, 116 Stat. 179.
      The Agricultural Act of 1949, referred to in subsec. (b)(1), (2),
    is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is
    classified principally to chapter 35A (Sec. 1421 et seq.) of this
    title. Title III of the Act is classified generally to sections
    1447 to 1449 of this title. Title IV of the Act is classified
    principally to subchapter I (Sec. 1421 et seq.) of chapter 35A of
    this title. Title V of the Act, which was classified generally to
    subchapter IV (Sec. 1461 et seq.) of chapter 35A of this title, was
    omitted from the Code. Title VI of the Act is classified generally
    to subchapter V (Sec. 1471 et seq.) of chapter 35A of this title.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 1421 of this title and Tables.

-COD-
                               CODIFICATION                           
      Section is comprised of section 171 of Pub. L. 104-127. Subsec.
    (a)(2) of section 171 of Pub. L. 104-127 amended section 1373 of
    this title and enacted provisions set out as a note under section
    1373 of this title. Subsec. (b)(3) of section 171 of Pub. L. 104-
    127 amended section 1441 of this title.

-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (a)(1). Pub. L. 107-171 substituted "1996 through
    2001" for "1996 through 2002".

-FOOTNOTE-               

    (!1) See References in Text note below.

-End-

-CITE-
    7 USC Sec. 7302                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

-HEAD-
    Sec. 7302. Effect of chapter

-STATUTE-
    (a) Effect on prior crops
      Except as otherwise specifically provided in this chapter and
    notwithstanding any other provision of law, this chapter and the
    amendments made by this chapter shall not affect the authority of
    the Secretary to carry out a price support or production adjustment
    program for any of the 1991 through 1995 crops of an agricultural
    commodity established under a provision of law in effect
    immediately before April 4, 1996.
    (b) Liability
      A provision of this chapter or an amendment made by this chapter
    shall not affect the liability of any person under any provision of
    law as in effect before April 4, 1996.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 172, Apr. 4, 1996, 110 Stat. 938.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of "this chapter", referred to in text, see note
    set out under section 7201 of this title.

-End-

-CITE-
    7 USC SUBCHAPTER VII - COMMISSION ON 21st CENTURY
           PRODUCTION AGRICULTURE                          01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    SUBCHAPTER VII - COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

-End-

-CITE-
    7 USC Sec. 7311                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7311. Establishment

-STATUTE-
      There is established a commission to be known as the "Commission
    on 21st Century Production Agriculture" (in this subchapter
    referred to as the "Commission").

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 181, Apr. 4, 1996, 110 Stat. 938.)

-End-

-CITE-
    7 USC Sec. 7312                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7312. Composition

-STATUTE-
    (a) Membership and appointment
      The Commission shall be composed of 11 members, appointed as
    follows:
        (1) Three members shall be appointed by the President.
        (2) Four members shall be appointed by the Chairman of the
      Committee on Agriculture of the House of Representatives in
      consultation with the ranking minority member of the Committee.
        (3) Four members shall be appointed by the Chairman of the
      Committee on Agriculture, Nutrition, and Forestry of the Senate
      in consultation with the ranking minority member of the
      Committee.
    (b) Qualifications
      At least 1 of the members appointed under each of paragraphs (1),
    (2), and (3) of subsection (a) of this section shall be an
    individual who is primarily involved in production agriculture. All
    other members of the Commission shall be appointed from among
    individuals having knowledge and experience in agricultural
    production, marketing, finance, or trade.
    (c) Term of members; vacancies
      A member of the Commission shall be appointed for the life of the
    Commission. A vacancy on the Commission shall not affect its
    powers, but shall be filled in the same manner as the original
    appointment was made.
    (d) Time for appointment; first meeting
      The members of the Commission shall be appointed not later than
    October 1, 1997. The Commission shall convene its first meeting to
    carry out its duties under this subchapter 30 days after 6 members
    of the Commission have been appointed.
    (e) Chairperson
      The chairperson of the Commission shall be designated jointly by
    the Chairman of the Committee on Agriculture of the House of
    Representatives and the Chairman of the Committee on Agriculture,
    Nutrition, and Forestry of the Senate from among the members of the
    Commission.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 182, Apr. 4, 1996, 110 Stat. 938.)

-End-

-CITE-
    7 USC Sec. 7313                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7313. Comprehensive review of past and future of production
      agriculture

-STATUTE-
    (a) Initial review
      The Commission shall conduct a comprehensive review of changes in
    the condition of production agriculture in the United States since
    April 4, 1996, and the extent to which the changes are the result
    of this chapter and the amendments made by this chapter. The review
    shall include the following:
        (1) An assessment of the initial success of production
      flexibility contracts in supporting the economic viability of
      farming in the United States.
        (2) An assessment of economic risks to farms delineated by size
      of farm operation (such as small, medium, or large farms) and
      region of production.
        (3) An assessment of the food security situation in the United
      States in the areas of trade, consumer prices, international
      competitiveness of United States production agriculture, food
      supplies, and humanitarian relief.
        (4) An assessment of the changes in farmland values and
      agricultural producer incomes since April 4, 1996.
        (5) An assessment of the extent to which regulatory relief for
      agricultural producers has been enacted and implemented,
      including the application of cost/benefit principles in the
      issuance of agricultural regulations.
        (6) An assessment of the extent to which tax relief for
      agricultural producers has been enacted in the form of capital
      gains tax reductions, estate tax exemptions, and mechanisms to
      average tax loads over high- and low-income years.
        (7) An assessment of the effect of any Federal Government
      interference in agricultural export markets, such as the
      imposition of trade embargoes, and the degree of implementation
      and success of international trade agreements and United States
      export programs.
        (8) An assessment of the likely effect of the sale, lease, or
      transfer of farm poundage quota for peanuts across State lines.
    (b) Subsequent review
      The Commission shall conduct a comprehensive review of the future
    of production agriculture in the United States and the appropriate
    role of the Federal Government in support of production
    agriculture. The review shall include the following:
        (1) An assessment of changes in the condition of production
      agriculture in the United States since the initial review
      conducted under subsection (a) of this section.
        (2) Identification of the appropriate future relationship of
      the Federal Government with production agriculture after 2002.
        (3) An assessment of the personnel and infrastructure
      requirements of the Department of Agriculture necessary to
      support the future relationship of the Federal Government with
      production agriculture.
        (4) An assessment of economic risks to farms delineated by size
      of farm operation (such as small, medium, or large farms) and
      region of production.
    (c) Recommendations
      In carrying out the subsequent review under subsection (b) of
    this section, the Commission shall develop specific recommendations
    for legislation to achieve the appropriate future relationship of
    the Federal Government with production agriculture identified under
    subsection (a)(2) of this section.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 183, Apr. 4, 1996, 110 Stat. 939.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of "this chapter", referred to in subsec. (a), see
    note set out under section 7201 of this title.

-End-

-CITE-
    7 USC Sec. 7314                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7314. Reports

-STATUTE-
    (a) Report on initial review
      Not later than June 1, 1998, the Commission shall submit to the
    President, the Committee on Agriculture of the House of
    Representatives, and the Committee on Agriculture, Nutrition, and
    Forestry of the Senate a report containing the results of the
    initial review conducted under section 7313(a) of this title.
    (b) Report on subsequent review
      Not later than January 1, 2001, the Commission shall submit to
    the President and the congressional committees specified in
    subsection (a) of this section a report containing the results of
    the subsequent review conducted under section 7313(b) of this
    title.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 184, Apr. 4, 1996, 110 Stat. 940.)

-End-

-CITE-
    7 USC Sec. 7315                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7315. Powers

-STATUTE-
    (a) Hearings
      The Commission may, for the purpose of carrying out this
    subchapter, conduct such hearings, sit and act at such times, take
    such testimony, and receive such evidence, as the Commission
    considers appropriate.
    (b) Assistance from other agencies
      The Commission may secure directly from any department or agency
    of the Federal Government such information as may be necessary for
    the Commission to carry out its duties under this subchapter. On
    the request of the chairperson of the Commission, the head of the
    department or agency shall, to the extent permitted by law, furnish
    such information to the Commission.
    (c) Mail
      The Commission may use the United States mails in the same manner
    and under the same conditions as the departments and agencies of
    the Federal Government.
    (d) Assistance from Secretary
      The Secretary shall provide to the Commission appropriate office
    space and such reasonable administrative and support services as
    the Commission may request.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 185, Apr. 4, 1996, 110 Stat. 940.)

-End-

-CITE-
    7 USC Sec. 7316                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7316. Commission procedures

-STATUTE-
    (a) Meetings
      The Commission shall meet on a regular basis (as determined by
    the chairperson) and at the call of the chairperson or a majority
    of its members.
    (b) Quorum
      A majority of the members of the Commission shall constitute a
    quorum for the transaction of business.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 186, Apr. 4, 1996, 110 Stat. 941.)

-End-

-CITE-
    7 USC Sec. 7317                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7317. Personnel matters

-STATUTE-
    (a) Compensation
      Each member of the Commission shall serve without compensation,
    but shall be allowed travel expenses including per diem in lieu of
    subsistence, as authorized by section 5703 of title 5, when engaged
    in the performance of Commission duties.
    (b) Staff
      (1) Appointment
        The Commission shall appoint a staff director, who shall be
      paid at a rate not to exceed the maximum rate of basic pay under
      section 5376 of title 5, and such professional and clerical
      personnel as may be reasonable and necessary to enable the
      Commission to carry out its duties under this subchapter without
      regard to the provisions of title 5 governing appointments in the
      competitive service, and without regard to the provisions of
      chapter 51 and subchapter III of chapter 53 of such title, or any
      other provision of law, relating to the number, classification,
      and General Schedule rates.
      (2) Limitation on compensation
        No employee appointed under this subsection (other than the
      staff director) may be compensated at a rate to exceed the
      maximum rate applicable to level GS-15 of the General Schedule.
    (c) Detailed personnel
      On the request of the chairperson of the Commission, the head of
    any department or agency of the Federal Government is authorized to
    detail, without reimbursement, any personnel of the department or
    agency to the Commission to assist the Commission in carrying out
    its duties under this section. The detail of any individual may not
    result in the interruption or loss of civil service status or other
    privilege of the individual.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 187, Apr. 4, 1996, 110 Stat. 941.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The provisions of title 5 governing appointments in the
    competitive service, referred to in subsec. (b)(1), are classified
    generally to section 3301 et seq. of Title 5, Government
    Organization and Employees.
      The General Schedule, referred to in subsec. (b), is set out
    under section 5332 of Title 5.

-End-

-CITE-
    7 USC Sec. 7318                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VII - COMMISSION ON 21st CENTURY PRODUCTION AGRICULTURE

-HEAD-
    Sec. 7318. Termination of Commission

-STATUTE-
      The Commission shall terminate on submission of the final report
    required by section 7314 of this title.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 188, Apr. 4, 1996, 110 Stat. 941.)

-End-

-CITE-
    7 USC SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS   01/03/2007 

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-
           SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS       

-End-

-CITE-
    7 USC Sec. 7331                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-
    Sec. 7331. Options pilot program

-STATUTE-
    (a) Pilot programs authorized
      Until December 31, 2002, the Secretary of Agriculture may conduct
    a pilot program for 1 or more agricultural commodities supported
    under this chapter to ascertain whether futures and options
    contracts can provide producers with reasonable protection from the
    financial risks of fluctuations in price, yield, and income
    inherent in the production and marketing of the commodities. The
    pilot program shall be an alternative to other related programs of
    the Department of Agriculture.
    (b) Distribution of pilot program
      For each agricultural commodity included in the pilot program,
    the Secretary may operate the pilot program in not more than 300
    counties, except that not more than 25 of the counties may be
    located in any 1 State. The pilot program for a commodity shall not
    be operated in any county for more than 3 of the 1996 through 2002
    calendar years.
    (c) Eligible participants
      In operating the pilot program, the Secretary may enter into
    contract with a producer who - 
        (1) is eligible for a production flexibility contract, a
      marketing assistance loan, or other assistance under this
      chapter;
        (2) volunteers to participate in the pilot program during any
      calendar year in which a county in which the farm of the producer
      is located is included in the pilot program;
        (3) operates a farm located in a county selected for the pilot
      program; and
        (4) meets such other eligibility requirements as the Secretary
      may establish.
    (d) Notice to producers
      The Secretary shall provide notice to each producer participating
    in the pilot program that - 
        (1) the participation of the producer is voluntary; and
        (2) neither the United States, the Commodity Credit
      Corporation, the Federal Crop Insurance Corporation, the
      Department of Agriculture, nor any other Federal agency is
      authorized to guarantee that participants in the pilot program
      will be better or worse off financially as a result of
      participation in the pilot program than the producer would have
      been if the producer had not participated in the pilot program.
    (e) Contracts
      The Secretary shall set forth in each contract under the pilot
    program the terms and conditions for participation in the pilot
    program and the notice required by subsection (d) of this section.
    (f) Eligible markets
      Trades for futures and options contracts under the pilot program
    shall be carried out on commodity futures and options markets
    designated as contract markets under the Commodity Exchange Act (7
    U.S.C. 1 et seq.).
    (g) Recordkeeping
      A producer participating in the pilot program shall compile,
    maintain, and submit (or authorize the compilation, maintenance,
    and submission) of such documentation as the regulations governing
    the pilot program require.
    (h) Use of Commodity Credit Corporation
      The Secretary shall fund and operate the pilot program through
    the Commodity Credit Corporation, except that the amount of
    Commodity Credit Corporation funds used to carry out this section
    shall not exceed, to the maximum extent practicable, $9,000,000 for
    fiscal year 2001, $15,000,000 for fiscal year 2002, and $2,000,000
    for fiscal year 2003. To the maximum extent practicable, the
    Secretary shall operate the pilot program in a budget neutral
    manner.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 191, Apr. 4, 1996, 110 Stat. 941;
    Pub. L. 106-224, title I, Sec. 134, June 20, 2000, 114 Stat. 388.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of "this chapter", referred to in subsecs. (a) and
    (c)(1), see note set out under section 7201 of this title.
      The Commodity Exchange Act, referred to in subsec. (f), is act
    Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is
    classified generally to chapter 1 (Sec. 1 et seq.) of this title.
    For complete classification of this Act to the Code, see section 1
    of this title and Tables.

-COD-
                               CODIFICATION                           
      Section is comprised of section 191 of Pub. L. 104-127. Subsec.
    (i) of section 191 of Pub. L. 104-127 repealed provisions set out
    as a note under section 1421 of this title.

-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (b). Pub. L. 106-224, Sec. 134(1), substituted
    "300 counties, except that not more than 25" for "100 counties,
    except that not more than 6" in first sentence.
      Subsec. (c)(2). Pub. L. 106-224, Sec. 134(2), inserted before
    semicolon at end "during any calendar year in which a county in
    which the farm of the producer is located is included in the pilot
    program".
      Subsec. (h). Pub. L. 106-224, Sec. 134(3), inserted before period
    at end of first sentence ", except that the amount of Commodity
    Credit Corporation funds used to carry out this section shall not
    exceed, to the maximum extent practicable, $9,000,000 for fiscal
    year 2001, $15,000,000 for fiscal year 2002, and $2,000,000 for
    fiscal year 2003".

                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Amendment by Pub. L. 106-224 effective Oct. 1, 2000, see section
    171(b)(1)(A) of Pub. L. 106-224, set out as a note under section
    1501 of this title.

-End-

-CITE-
    7 USC Sec. 7332                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-
    Sec. 7332. Risk management education

-STATUTE-
      In consultation with the Commodity Futures Trading Commission,
    the Secretary shall provide such education in management of the
    financial risks inherent in the production and marketing of
    agricultural commodities as the Secretary considers appropriate. As
    part of such educational activities, the Secretary may develop and
    implement programs to facilitate the participation of agricultural
    producers in commodity futures trading programs, forward
    contracting options, and insurance protection programs by assisting
    and training producers in the usage of such programs. In
    implementing this authority, the Secretary may use existing
    research and extension authorities and resources of the Department
    of Agriculture.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 192, Apr. 4, 1996, 110 Stat. 942.)

-End-

-CITE-
    7 USC Sec. 7333                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-
    Sec. 7333. Administration and operation of noninsured crop
      assistance program

-STATUTE-
    (a) Operation and administration of program
      (1) In general
        In the case of an eligible crop described in paragraph (2), the
      Secretary of Agriculture shall operate a noninsured crop disaster
      assistance program to provide coverage equivalent to the
      catastrophic risk protection otherwise available under section
      1508(b) of this title. The Secretary shall carry out this section
      through the Consolidated Farm Service Agency (in this section
      referred to as the "Agency").
      (2) Eligible crops
        (A) In general
          In this section, the term "eligible crop" means each
        commercial crop or other agricultural commodity (except
        livestock) - 
            (i) for which catastrophic risk protection under section
          1508(b) of this title is not available; and
            (ii) that is produced for food or fiber.
        (B) Crops specifically included
          The term "eligible crop" shall include floricultural,
        ornamental nursery, and Christmas tree crops, turfgrass sod,
        seed crops, aquaculture (including ornamental fish), sea grass
        and sea oats, and industrial crops.
        (C) Combination of similar types or varieties
          At the option of the Secretary, all types or varieties of a
        crop or commodity, described in subparagraphs (A) and (B), may
        be considered to be a single eligible crop under this section.
      (3) Cause of loss
        To qualify for assistance under this section, the losses of the
      noninsured commodity shall be due to drought, flood, or other
      natural disaster, as determined by the Secretary.
    (b) Application for noninsured crop disaster assistance
      (1) Timely application
        To be eligible for assistance under this section, a producer
      shall submit an application for noninsured crop disaster
      assistance at a local office of the Department. The application
      shall be in such form, contain such information, and be submitted
      not later than 30 days before the beginning of the coverage
      period, as determined by the Secretary.
      (2) Records
        To be eligible for assistance under this section, a producer
      shall provide annually to the Secretary records of crop acreage,
      acreage yields, and production for each crop, as required by the
      Secretary.
      (3) Acreage reports
        A producer shall provide annual reports on acreage planted or
      prevented from being planted, as required by the Secretary, by
      the designated acreage reporting date for the crop and location
      as established by the Secretary.
    (c) Loss requirements
      (1) Cause
        To be eligible for assistance under this section, a producer of
      an eligible crop shall have suffered a loss of a noninsured
      commodity as the result of a cause described in subsection (a)(3)
      of this section.
      (2) Assistance
        On making a determination described in subsection (a)(3) of
      this section, the Secretary shall provide assistance under this
      section to producers of an eligible crop that have suffered a
      loss as a result of the cause described in subsection (a)(3) of
      this section.
      (3) Prevented planting
        Subject to paragraph (1), the Secretary shall make a prevented
      planting noninsured crop disaster assistance payment if the
      producer is prevented from planting more than 35 percent of the
      acreage intended for the eligible crop because of drought, flood,
      or other natural disaster, as determined by the Secretary.
      (4) Area trigger
        The Secretary shall provide assistance to individual producers
      without any requirement of an area loss.
    (d) Payment
      The Secretary shall make available to a producer eligible for
    noninsured assistance under this section a payment computed by
    multiplying - 
        (1) the quantity that is less than 50 percent of the
      established yield for the crop; by
        (2)(A) in the case of each of the 1996 through 1998 crop years,
      60 percent of the average market price for the crop (or any
      comparable coverage determined by the Secretary); or
        (B) in the case of each of the 1999 and subsequent crop years,
      55 percent of the average market price for the crop (or any
      comparable coverage determined by the Secretary); by
        (3) a payment rate for the type of crop (as determined by the
      Secretary) that - 
          (A) in the case of a crop that is produced with a significant
        and variable harvesting expense, reflects the decreasing cost
        incurred in the production cycle for the crop that is - 
            (i) harvested;
            (ii) planted but not harvested; and
            (iii) prevented from being planted because of drought,
          flood, or other natural disaster (as determined by the
          Secretary); and

          (B) in the case of a crop that is not produced with a
        significant and variable harvesting expense, as determined by
        the Secretary.
    (e) Yield determinations
      (1) Establishment
        The Secretary shall establish farm yields for purposes of
      providing noninsured crop disaster assistance under this section.
      (2) Actual production history
        The Secretary shall determine yield coverage using the actual
      production history of the producer over a period of not less than
      the 4 previous consecutive crop years and not more than 10
      consecutive crop years. Subject to paragraph (3), the yield for
      the year in which noninsured crop disaster assistance is sought
      shall be equal to the average of the actual production history of
      the producer during the period considered.
      (3) Assignment of yield
        If a producer does not submit adequate documentation of
      production history to determine a crop yield under paragraph (2),
      the Secretary shall assign to the producer a yield equal to not
      less than 65 percent of the transitional yield of the producer
      (adjusted to reflect actual production reflected in the records
      acceptable to the Secretary for continuous years), as specified
      in regulations issued by the Secretary based on production
      history requirements.
      (4) Prohibition on assigned yields in certain counties
        (A) In general
          (i) Documentation
            If sufficient data are available to demonstrate that the
          acreage of a crop in a county for the crop year has increased
          by more than 100 percent over any year in the preceding 7
          crop years or, if data are not available, if the acreage of
          the crop in the county has increased significantly from the
          previous crop years, a producer must provide such detailed
          documentation of production costs, acres planted, and yield
          for the crop year for which benefits are being claimed as is
          required by the Secretary. If the Secretary determines that
          the documentation provided is not sufficient, the Secretary
          may require documenting proof that the crop, had the crop
          been harvested, could have been marketed at a reasonable
          price.
          (ii) Prohibition
            Except as provided in subparagraph (B), a producer who
          produces a crop on a farm located in a county described in
          clause (i) may not obtain an assigned yield.
        (B) Exception
          A crop or a producer shall not be subject to this subsection
        if - 
            (i) the planted acreage of the producer for the crop has
          been inspected by a third party acceptable to the Secretary;
          or
            (ii)(I) the County Executive Director and the State
          Executive Director recommend an exemption from the
          requirement to the Administrator of the Agency; and
            (II) the Administrator approves the recommendation.
      (5) Limitation on receipt of subsequent assigned yield
        A producer who receives an assigned yield for the current year
      of a natural disaster because required production records were
      not submitted to the local office of the Department shall not be
      eligible for an assigned yield for the year of the next natural
      disaster unless the required production records of the previous 1
      or more years (as applicable) are provided to the local office.
      (6) Yield variations due to different farming practices
        The Secretary shall ensure that noninsured crop disaster
      assistance accurately reflects significant yield variations due
      to different farming practices, such as between irrigated and
      nonirrigated acreage.
    (f) Contract payments
      A producer who has received a guaranteed payment for production,
    as opposed to delivery, of a crop pursuant to a contract shall have
    the production of the producer adjusted upward by the amount of the
    production equal to the amount of the contract payment received.
    (g) Use of Commodity Credit Corporation
      The Secretary may use the funds of the Commodity Credit
    Corporation to carry out this section.
    (h) Exclusions
      Noninsured crop disaster assistance under this section shall not
    cover losses due to - 
        (1) the neglect or malfeasance of the producer;
        (2) the failure of the producer to reseed to the same crop in
      those areas and under such circumstances where it is customary to
      reseed; or
        (3) the failure of the producer to follow good farming
      practices, as determined by the Secretary.
    (i) Payment and income limitations
      (1) Definitions
        In this subsection:
        (A) Person
          The term "person" has the meaning provided the term in
        regulations issued by the Secretary. The regulations shall
        conform, to the extent practicable, to the regulations defining
        the term "person" issued under section 1308 of this title.
        (B) Qualifying gross revenues
          The term "qualifying gross revenues" means - 
            (i) if a majority of the gross revenue of the person is
          received from farming, ranching, and forestry operations, the
          gross revenue from the farming, ranching, and forestry
          operations of the person; and
            (ii) if less than a majority of the gross revenue of the
          person is received from farming, ranching, and forestry
          operations, the gross revenue of the person from all sources.
      (2) Payment limitation
        The total amount of payments that a person shall be entitled to
      receive annually under this section may not exceed $100,000.
      (3) Limitation on multiple benefits for same loss
        (A) In general
          Except as provided in subparagraph (B), if a producer who is
        eligible to receive benefits under this section is also
        eligible to receive assistance for the same loss under any
        other program administered by the Secretary, the producer shall
        be required to elect whether to receive benefits under this
        section or under the other program, but not both.
        (B) Exception
          Subparagraph (A) shall not apply to emergency loans under
        subtitle C of the Consolidated Farm and Rural Development Act
        (7 U.S.C. 1961 et seq.).
      (4) Income limitation
        A person who has qualifying gross revenues in excess of the
      amount specified in section 2266(a) of the Food, Agriculture,
      Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) (as in
      effect on November 28, 1990) during the taxable year (as
      determined by the Secretary) shall not be eligible to receive any
      noninsured assistance payment under this section.
      (5) Regulations
        The Secretary shall issue regulations prescribing such rules as
      the Secretary determines necessary to ensure a fair and equitable
      application of section 1308 of this title, the general payment
      limitation regulations of the Secretary, and the limitations
      established under this subsection.
    (j) Omitted
    (k) Service fee
      (1) In general
        To be eligible to receive assistance for an eligible crop for a
      crop year under this section, a producer shall pay to the
      Secretary (at the time at which the producer submits the
      application under subsection (b)(1) of this section) a service
      fee for the eligible crop in an amount that is equal to the
      lesser of - 
          (A) $100 per crop per county; or
          (B) $300 per producer per county, but not to exceed a total
        of $900 per producer.
      (2) Waiver
        The Secretary shall waive the service fee required under
      paragraph (1) in the case of a limited resource farmer, as
      defined by the Secretary.
      (3) Use
        The Secretary shall deposit service fees collected under this
      subsection in the Commodity Credit Corporation Fund.

-SOURCE-
    (Pub. L. 104-127, title I, Sec. 196, Apr. 4, 1996, 110 Stat. 947;
    Pub. L. 105-277, div. A, Sec. 101(a) [title VIII, Sec. 803(b)],
    Oct. 21, 1998, 112 Stat. 2681, 2681-38; Pub. L. 106-224, title I,
    Sec. 109, June 20, 2000, 114 Stat. 371; Pub. L. 107-171, title X,
    Sec. 10101, May 13, 2002, 116 Stat. 488.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Consolidated Farm and Rural Development Act, referred to in
    subsec. (i)(3)(B), is title III of Pub. L. 87-128, Aug. 8, 1961, 75
    Stat. 307, as amended. Subtitle C of the Act is classified
    generally to subchapter III (Sec. 1961 et seq.) of chapter 50 of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 1921 of this title and
    Tables.
      Section 2266(a) of the Food, Agriculture, Conservation, and Trade
    Act of 1990, referred to in subsec. (i)(4), is section 2266(a) of
    Pub. L. 101-624, which was set out in a note under section 1421 of
    this title, prior to repeal by Pub. L. 103-354, title I, Sec.
    119(c), Oct. 13, 1994, 108 Stat. 3208.

-COD-
                               CODIFICATION                           
      Section is comprised of section 196 of Pub. L. 104-127. Subsec.
    (j) of section 196 of Pub. L. 104-127 repealed section 1519 of this
    title.

-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (a)(2)(B). Pub. L. 107-171 inserted "sea grass and
    sea oats," after "fish),".
      2000 - Subsec. (a)(2)(C). Pub. L. 106-224, Sec. 109(a), added
    subpar. (C).
      Subsec. (b)(1). Pub. L. 106-224, Sec. 109(b), substituted "not
    later than 30 days before the beginning of the coverage period, as
    determined by the Secretary" for "at such time as the Secretary may
    require" in second sentence.
      Subsec. (b)(2). Pub. L. 106-224, Sec. 109(c)(1), added par. (2)
    and struck out heading and text of former par. (2). Text read as
    follows: "A producer shall provide records, as required by the
    Secretary, of crop acreage, acreage yields, and production."
      Subsec. (b)(3). Pub. L. 106-224, Sec. 109(c)(2), inserted
    "annual" after "shall provide".
      Subsec. (c). Pub. L. 106-224, Sec. 109(d), added subsec. (c) and
    struck out heading and text of former subsec. (c), which authorized
    noninsured crop disaster assistance if average yield fell below 65
    percent of expected yield, if producer was prevented from planting
    more than 35 percent of intended acreage, or if total quantity of
    harvest was less than 50 percent of expected yield.
      Subsec. (k). Pub. L. 106-224, Sec. 109(e), added subsec. (k).
      1998-Subsec. (i)(3). Pub. L. 105-277 designated existing
    provisions as subpar. (A), inserted heading, substituted "Except as
    provided in subparagraph (B), if a producer" for "If a producer",
    and added subpar. (B).

                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Amendment by Pub. L. 106-224 applicable beginning with the 2001
    crop of an agricultural commodity, see section 171(b)(2)(G) of Pub.
    L. 106-224, set out as a note under section 1501 of this title.

                              SAVINGS CLAUSE                          
      Section as in effect on day before June 20, 2000, to continue to
    apply with respect to 1999 crop year, and to apply with respect to
    2000 crop year, to extent application of an amendment by Pub. L.
    106-224 is delayed under section 171(b) or by terms of the
    amendment, see section 173 of Pub. L. 106-224, set out as a note
    under section 1501 of this title.

-End-

-CITE-
    7 USC Sec. 7334                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 100 - AGRICULTURAL MARKET TRANSITION
    SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-
    Sec. 7334. Flood risk reduction

-STATUTE-
    (a) In general
      During fiscal years 1996 through 2002, the Secretary of
    Agriculture (referred to in this section as the "Secretary") may
    enter into a contract with a producer on a farm who has contract
    acreage under the Agricultural Market Transition Act [7 U.S.C. 7201
    et seq.] that is frequently flooded.
    (b) Duties of producers
      Under the terms of the contract, with respect to acres that are
    subject to the contract, the producer must agree to - 
        (1) the termination of any contract acreage and production
      flexibility contract under the Agricultural Market Transition Act
      [7 U.S.C. 7201 et seq.];
        (2) forgo loans for contract commodities, oilseeds, and extra
      long staple cotton;
        (3) not apply for crop insurance issued or reinsured by the
      Secretary;
        (4) comply with applicable highly erodible land and wetlands
      conservation compliance requirements established under title XII
      of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.);
        (5) not apply for any conservation program payments from the
      Secretary;
        (6) not apply for disaster program benefits provided by the
      Secretary; and
        (7) refund the payments, with interest, issued under the flood
      risk reduction contract to the Secretary, if the producer
      violates the terms of the contract or if the producer transfers
      the property to another person who violates the contract.
    (c) Duties of Secretary
      In return for a contract entered into by a producer under this
    section, the Secretary shall pay the producer an amount that is not
    more than 95 percent of projected contract payments under the
    Agricultural Market Transition Act [7 U.S.C. 7201 et seq.] that the
    Secretary estimates the producer would otherwise have received
    during the period beginning at the time the contract is entered
    into under this section and ending September 30, 2002.
    (d) Commodity Credit Corporation
      The Secretary shall carry out the program authorized by this
    section (other than subsection (e) of this section) through the
    Commodity Credit Corporation.
    (e) Additional payments
      (1) In general
        Subject to the availability of advanced appropriations, the
      Secretary may make payments to a producer described in subsection
      (a) of this section, in addition to the payments provided under
      subsection (c) of this section, to offset other estimated Federal
      Government outlays on frequently flooded land.
      (2) Authorization of appropriations
        There are authorized to be appropriated such sums as are
      necessary to carry out paragraph (1).
    (f) Limitation on payments
      Amounts made available for production flexibility contracts under
    section 7213 of this title shall be reduced by an amount that is
    equal to the contract payments that producers forgo under
    subsection (b)(1) of this section.

-SOURCE-
    (Pub. L. 104-127, title III, Sec. 385, Apr. 4, 1996, 110 Stat.
    1016.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Agricultural Market Transition Act, referred to in subsecs.
    (a), (b)(1), and (c), is title I of Pub. L. 104-127, Apr. 4, 1996,
    110 Stat. 896, which is classified principally to this chapter. For
    complete classification of this Act to the Code, see References in
    Text note set out under section 7201 of this title and Tables.
      The Food Security Act of 1985, referred to in subsec. (b)(4), is
    Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended. Title XII
    of the Act, popularly known as the "Sodbuster Law", is classified
    principally to chapter 58 (Sec. 3801 et seq.) of Title 16,
    Conservation. For complete classification of this Act to the Code,
    see Short Title of 1985 Amendment note set out under section 1281
    of this title and Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of title III of the Federal
    Agriculture Improvement and Reform Act of 1996, and not as part of
    title I of the Act, known as the Agricultural Market Transition
    Act, which comprises this chapter.

-End-