PRODUCTION AND MARKETING ADMINISTRATION

UNITED STATES DEPARTMENT OF AGRICULTURE

COMPILATION

OF

Soil Conservation and Domestic Allotmerit Act,

Agricultural Adjustment .Act of 1938, Federal

C|:x>p Insurance Act, Sugar Act of 1948,

Agricultural Act of 1949, Commodity Credit

Corporation Charter Act, Related Appropriation Items, and Miscellaneous Laws, including

amendments

AS OF JANUARY 1, 1953

r-<jv

K ai*28W53

COMPILED UNDER THE DIRECTION

OF THE SOLICITOR

AGRICULTURE HANDBOOK NO. 49
PRODUCTION AND MARKETING ADMINISTRATION

UNITED STATES DEPARTMENT OF AGRICULTURE

COMPILATION

OF

Soil Conservation and Domestic Allotment Act,

Agricultural Adjustment Act of 1938, Federal

Crop Insurance Act, Sugar Act of 1948,

Agricultural Act of 1949, Commodity Credit

Corporation Charter Act, Related Appropriation Items, and Miscellaneous Laws, including

amendments

AS OF JANUARY 1, 1953

COMPILED UNDER THE DIRECTION

OF THE SOLICITOR

AGRICULTURE HANDBOOK NO. 49

For sale by the Superintendent of Documents, U. S. Government Printing OfBice

Washington 25, D. C. - Price 40 cents
Prefatory Note

Thisis a compilation oí the provisions of the several acts in effect on

January 1,1953. Complete citations to the United States Statutes at

Large and detailed explanation of amendments to certain provisions

have been omitted. In copying the various acts some abbreviations

have been used and most numbers have been expressed in figures rather

than in words. Part VI of the compilation, containing appropriation

items for the fiscal years 1947 to 1953, inclusive, supplements the appropriation items for the fiscal years 1937 to 1946, inclusive, appearing

in a compilation issued by the Agricultural Adjustment Agency as of

July 1, 1945.

Citations to the United States Code at the end of sections and subsections are to the 1946 edition of the Code and Supplement V thereto.
CONTENTS

Page

PART I. Soil Conservation and Domestic Allotment Act, as amended . 1

Section 1. Prevention of soil erosion, surveys and investigations, preventive measures, cooperation with agencies and persons, and

acquisition of land 1

Section 2. Lands on which preventive measures may be taken 1

Section 3. Conditions under which benefits of law extended to nonGovernment-controlled lands 2

Section 4. Cooperation of governmental agencies, personnel, and

supplies 2

Sections. Establishment of "Soil Conservation Service" „ 2

Section 6. Appropriation authorized _ 3

Public Law 412, Seventy-eighth Congress. Section 302 (b). Sale

of supplies by the Soil Conservation Service to other Government

activities 3

Section 7. Agricultural conservation policy and State plans 3

Section 8. Payments and grants of aid 5

Public Law 12, Seventy-ninth Congress. Effect of production of war

crops, or military service, on allotments 8

Naval stores conservation program _ 12

Section 9. Surveys, investigations, and reports _- 12

Section 10. "Agricultural comnáodity" defined 12

Section 11. Availability of funds _ .. 12

Section 12. Expansion of markets and crop insurance advance 13

Section 13. Execution of powers of Secretary by Production and

Marketing Administration « ^ '. 13

Section 14. Finality of payments 13

Section 15. Appropriation authorization and allocating of iunds 13

Section 16. Limitation on obligations incurred 14

Section 17, Scope of Act and definition of "State" 14

PART II. Agricultural Adjustment Act of 1938, as amended 17

Section 1. Short title. _-.-._ 17

Section 2. Declaration of policy 17

Section 201. Adjustments in freight rates for farm products. — 17

Section 202. New uses and new markets for farm commodities (regional

research laboratories) 18

Section 301. Definitions 19

Public Law 897, Eightieth Congress. Parity and parity prices 21

Public Law 272, Eighty-first Congress. Standard grade of cotton for

parity price purposes 21

Section 302. (Repealed) ^ .- 27

Section 303. Parity payments 27

Section 304. Consumer safeguards 27

Section 311. Legislative finding, tobacco__. 27

Section 312. National tobacco marketing quota and referendum 28

Section 313. Apportionment of tobacco marketing quota and acreage

allotments . 29

Public Law 276, Seventy-eighth Congress. Minimum farm acreage

allotment, Burley tobacco 30

Public Law 528, Eighty-second Congress. Minimum farm acreage

allotment, Burley tobacco . _- 30

Section 314. Penalties, tobacco 33

Section 321. Legislative finding, corn 34

Section 322. Farm marketing quotas and referendum, corn 35

Section 323. Amount of farm marketing quota, corn 36

Public Law 74, Seventy-seventh Congress. Marketing quotas and

farm marketing excess, corn ; 36

Section 324. Storage amount, corn^ - 38

Section 325. Penalties, corn - 38

Section 326. Adjustment of farm marketing quotas, corn 39
IV CONTENTS

PART II. Agricultural Adjustment Act of 103S, as amended—Continued page

Bection 327. Procxamat.ons oi suppíie¿ ana coiunierc.a. corn-producing

area . 39

Section 328. Acreag;e allotment, corn 40

Section 329. Apportionment of acreaa;e a.lotment, corn 40

Section 331. Legislative findina?, wheat 40

Section 332. Proclamations of supplies and allotments, wheat 41

Section 333. National acreage allotment, wheat 41

Section 334. Apportionment of national acreage allotment, wheat. 41

Public Law 272, Eighty-first Congress. Minimum farm wheat acreage

allotments for 1950.. 42

Public Law 12, Seventy-ninth Congress. Effect of production of war

crops, or military service, on allotments ._ 42

Section 335. Marketing quotas, wheat 43

Public Law 74, Seventy-seventh Congress. Marketing quotas and

farm marketing excess, wheat—. 44

Section 336. Referendum, wheat ^^. 46

Section 337. Adjustment and suspension of quotas, wheat 47

Section 338. Transfer of quotas, wheat 47

Section 339. Penalties, wheat 47

Section 341. Legislative findings, cotton 47

Section 342, National marketing quota, cotton __«_ 48

Section 343. Referendum, cotton .—^^ 48

Section 344. Apportionment of national acreage allotment to States

and counties, and establishment of farm allotments, cotton 49

Public Law 12, Seventy-ninth Congress. War crops or military

service 49

Public Law 28, Eighty-first Congress. Cotton acreages and yields in

1949 excluded from future allotment and yield computations 53

Section 345. Farm marketing quotas and farm marketing excess,

cotton 54

Section 346. Penalties, cotton . 55

Section 347. Long-staple cotton___»^ 55

Section 348. Ineligibility for payments, exceeding cotton acreage

allotment 56

Section 351. Legislative finding, rice-_ 56

Section 352. National acreage allotment, rice 57

Section 353. Apportionment of national acreage allotment, rice 57

Section 354. Proclamation of rice marketing quotas and conducting

referendum ^ ^^

Section 355. Farm marketing quota and farm marketing excess, rice. 59

Section 356. Penalties and storage, rice-_^ 59

Section 357. Legislative findings, peanuts 61

Section 358. Proclamation of national quota, conducting referendum,

and establishing acreage allotments, peanuts 61

Public Law 12, Seventy-ninth Congress. Effect of production of war

crops, or military service, on allotments 63

Section 359. Marketing penalties, peanuts 65

Section 361. Application of provisions for publication and review of

quotas - ^4

Section 362. Publication and notice of quota. 67

Section 363. Review by review committee 68

Section 364. Review committee»-, 68

Section 365. Institution of proceedings 68

Section 366. Court review 68

Section 367. Stay of proceedin s and exclusive jurisdiction 69

Section 368. Effect of increase on other quotas. _ 69

Section 371. General adjustment of quotas 69

Section 372. Payment, collection and refund of penalties 70

Section 373. Reports and records 71

Section 374. Measurement of farms and report of plantings « 72

Section 375. Regulations 72

Section 376. Court jurisdiction 74

Section 383. Insurance of cotton and reconcentration of cotton 7d

Public Law 660, Seventy-fifth Congress. Reconcentration of cotton— 73

Section 384. Report of benefit payments (repealed) — — 74

Section 385. Finality of farmers' payments and loans 74
CONTENTS

PART II. Agricultural Adjustment Act of 1938, as amended—Continued page

Section 386. Exemption irom laws prohibiting interest of members of

Congress in contracts 74

Section 387. Photographic reproductions and maps , 74

Section 388. Utilization of local agencies .. 74

Section 389. Personnel 75

Section 390. Separability 75

Section 391. Authorization for appropriations and advances for crop

insurance . 75

Section 392. Administrative expenses .. 76

Section 393. Allotment of appropriations 77

PART III. Federal Crop Insurance Act, as amended «. 79

Section 501. Short title... _ ..__ 79

Section 502. Declaration of purpose 79

Section 503. Creation of "Federal Crop Insurance Corporation" 79

Section 504. Capital stock_._ 79

Section 505. Management of Corporation 79

Section 506. General powers 80

Section 507. Personnel _ 81

Section 508. Crop insurance » 82

Section 509. Indemnities exempt from levy.« 84

Section 510. Deposit of funds 84

Section 511. Tax exemption . 84

Section 512. Fiscal agent of Government- 85

Section 513. Accounting by Corporation .^ 85

Section 514. Crimes and offenses . 85

Section 515 Advisory committee 85

Section 516. Appropriations and regulations 85

Section 517. Separability 86

Section 518. "Agricultural commodity" defined 86

Section 519. Right to amend . 86

Criminal provisions applicable to Federal Crop Insurance Corporation. 86

PART IV. Sugar Act of 1948, as amended 89

Section 1. Short title .._ 89

Section 101. Definitions 89

Section 201. Annual estimate of consumption in Continental United

States 91

Section 202. Proration of quotas . 91

Section 203. Consumption estimates and quotas for Hawaii and Puerto

Rico _ 92

Section 204. Proration of quota deficits 92

Section 205. Allotments of quotas or prorations 93

Section 206. Quotas for the calendar year 1948 95

Section 207. Amount of quota to be filled by direct-consumption

sugar 95

Section 208. Liquid sugar quotas 96

Section 209. Prohibited acts _.-_.« 96

Section 210. Determinations in terms of raw value . 96

Section 211. Exportation of sugar 96

Section 212. Inapplicability of quota provisions 97

Section 301. Conditions for payments to producers 97

Section 302. Establishment of proportionate shares for farms. 98

Section 303. Acreage abandonment and crop deficiency payments 99

Section 304. Computation of payments and persons eligible for

payments ; 99

Section 305. Use of local committees and other agencies 100

Section 306. Finality of determinations. „ 100

Section 307. Areas in which payments may be made 100

Section 401. Personnel and expenditures..' 101

Section 402. Authorized annual appropriation 101

Section 403. Secretary to issue regulations and determinations 101

Section 404. Jurisdiction of courts to enforce Act 101

Section 405. Penalties . 102

Section 406. Obtaining of information by Secretary__ 102

Section 407. Prohibition against speculation by raembers of Department . 102

Section 408. Suspension of quotas or payments 102
Vi CONTENTS

PART IV. Sugar Act of 1948, as amended—Continued page

Section 409. Surveys, and investigations, and hearings ., 102

Section 410. Surveys and investigations, generally 103

Section 411. Termination of Act .. 103

Section 412. Effective date of Act .- 103

Internal Revenue Code—Chapter 32—Sugar 103

Section 3490. Tax rate and exemption... 103

Section 3491. Returns and payment of tax _ 104

Section 3492. Persons classed as manufacturers 104

Section 3493. Exportation, refund _ 104

Section 3494. Use as livestock feed or for distillation of alcohol 105

Section 3495. Addition to tax in case of nonpayment ^_^_.. 105

Section 3496. Other laws applicable 105

Section 3497. Regulations_.. .-- --- 105

Section 3498. Effective date of subchapter ._ 105

Section 3500. Importation, rate of tax _ ,^.. 105

Section 3501. Importation, assessment and payment 105

Section 3506. Penalty for officials investing or speculating in sugar., 106

Section 3507. Definitions ----- 106

Section 3508. Termination of taxes - 106

PART V. Price support 109

Agricultural Act of 1949, as amended 109

Section 1. Short title --- 109

Section 101. Price support for basic agricultural commodities 109

Public Law 163, Seventy-ninth Congress. Level of price support for

fire-cured, dark air-cured, and Virginia sun-cured tobacco 111

Public Law 429, Eighty-second Congress. Price support under Defense

Production Act of 1950_ 111

Section 201. Price support for designated nonbasic agricultural

commodities HI

Public Law 471, Eighty-first Congress. No price support for Irish

potatoes unless quotas in effect ^ 112

Section 301. Price support for other nonbasic agricultural commodities 112

Section 302. Levels of price support, other nonbasic agricultural

commodities 112

Section 303. Levels of price support for competing agricultural commodities to be considered in determining level of support for any

nonbasic agricultural commodity 113

Section 401. Factors to be considered in supporting prices, compliance by producers, and date to be used in determining level of

price support 113

Section 402. Price support at increased level 113

Section 403. Adjustments in base support price for grade and other

factors - 114

Section 404. Utilization of services and facilities of Commodity Credit

Corporation 11^

Section 405. Nonrecourse loans ]]j

Section 406. Advance announcement of price-support level 114

Section 407. Restrictions on sales by Commodity Credit Corporation.. 115

Section 408. Definitions -- 115

Section 412. Determinations by the Secretary --- 117

Section 416. Disposition of commodities subject to deterioration or

spoilage II4

Section 420. Price support for cottonseed j|2

Commodity Credit Corporation Charter Act . — 11^

Section 1. Short title.-.. - 11^

Section 2. Creation and purpose ij^

Section 3. Offices. , Ijj

Section 4. General powers j^^

Section 5. Specific powers -.. - j^^

Section 6. Existing statutes applicable to the Corporation 1^^

Section 7. Capital stock ^- 1;^^

Section 8. Use of funds by Corporation , 1^^

Section 9. Board of directors and advisory board - 1^^

Section 10. Personnel of Corporation ^^^
CONTENTS VII

PART V. Price support—Continued Page

Section 11. Cooperation with other Governmental agencies 124

Section 12. Utilization of associations and trade facilities».^ 124

Section 13. Records, annual report -.^ 124

Section 14. Interest of members of Congress 124

Section 15. Crimes and offenses 124

Section 16. Transfer of assets of Commodity Credit Corporation, a

Delaware Corporation 126

Section 17. Dissolution of Delaware Corporation 126

Section 18. Effective date of Act _ 126

Legal history of the Corporation 127

PART VI. Applicable appropriations 129

Fiscal year 1947... - 129

Soil Conservation and Domestic Allotment Act, as amended, and

Agricultural Adjustment Act of 1938, as amended 129

Sugar Act 131

Section 32 of Act of August 24, 1935. 131

Federal Crop Insurance Corporation 131

Commodity Credit Corporation ^ 131

Fiscal year 1948 - 132

Soil Conservation and Domestic Allotment Act, as amended, and

Agricultural Adjustment Act of 1938, as amended... 132

Sugar Act 134

Federal Crop Insurance Act 134

Federal Crop Insurance Corporation and Commodity Credit

Corporation 134

Section 32 of Act of August 24, 1935. 135

Fiscal year 1949 135

Soil Conservation and Domestic Allotment Act, as amended, and

Agricultural Adjustment Act of 1938, as amended 135

Sugar Act . 137

Section 32 of Act of August 24, 1935 137

Federal Crop Insurance Act 137

Commodity Credit Corporation 138

Fiscal year 1950 ._ 138

Soil Conservation and Domestic Allotment Act, as amended 138

Agricultural Adjustment Act of 1938, as amended 140

Sugar Act 140

Section 32 of Act of August 24, 1935 140

Federal Crop Insurance Act-. 140

Federal Crop Insurance Corporation and Commodity Credit

Corporation -^ 140

Fiscal year 1951. ... 141

Soil Conservation and Domestic Allotment Act, as amended 141

Agricultural Adjustment Act of 1938, as amended 142

Sugar Act . 143

Federal Crop Insurance Act 143

Commodity Credit Corporation 143

Fiscal year 1952 .._._. _ 144

Soil Conservation and Domestic Allotment Act, as amended 144

Agricultural Adjustment Act of 1938, as amended ^_- 145

Sugar Act _ 145

International Wheat Agreement Act 146

Federal Crop Insurance Act 146

Federal Crop Insurance Corporation and Commodity Credit

Corporation 146

Fiscal year 1953 . 147

Soil Conservation and Domestic Allotment Act, as amended 147

Agricultural Adjustment Act of 1938, as amended 148

Sugar Act... _ 149

International Wheat Agreement Act 149

Federal Crop Insurance Corporation 149

Federal Crop Insurance Corporation and Commodity Credit

Corporation 149

General provisions of 1953 fiscal year appropriation act 150
Vm CONTENTS

Page

PART VTI. Miscellaneous laws . . 155

Section 22 of the Agricultural Adjustment Act (of 1933), as amended—

Imports 155

Section 32 of Public Law 320, 74th Cong 158

International Wheat As;reement Act - _-- 159

Act of December 20, 1944—Compromising, adjusting, or canceling

debts --- - 162

INDEX ^ - 16^

SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

EXPLANATORY NOTE

Sections 1 to 6, which were enacted April 27, 1935 (49 Stat. 163),

vested certain powers in the Secretary of Agriculture with respect to

the control and prevention of soil erosion and provided for the Soil

Conservation Service to be established as the agency to exercise such

powere.

Sections 7 to 17 were enacted February 29, 1936 (49 Stat. 1148), to

replace, in part, certain provisions of the Agricultural Adjustment

Act (of 1933) which were invalidated by the Supreme Court on

January 6, 1936. Section 17 provides that the entire Act may be

cited as the "Soil Conservation and Domestic Allotment Act." Under

the agricultural conservation program formulated pursuant to sections 7 to 17 of the Act, farmers are assisted through payments and

grants of aid in carrying out approved soil and water conservation

measures. The authority of the Secretary to carry out the program

on a national basis was originally limited by section 7 (a) to a period

of 2 years, during which time it was expected that a majority of the

States would enact legislation relating to State plans as provided for

in section 7 of the Act. Less than half of the States have enacted

the necessary legislation, and the Congress has extended from time

to time the Secretary's authority to administer the program on a

national basis. Under the amendment included in this compilation,

the Secretary's authority expires December 31, 1954.
PART I

SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS

AMENDED

AN ACT

To provide for the protection of land resources against soil erosion, and for

other purposes.

Be it enacted hy the Senate and House of Representatives of the

united States of America in Congress assembled^ That it is hereby

recognized that the wantage of soil and moisture resources on farm,

grazing, and forest lands of the Nation, resulting from soil erosion,

is a menace to the national welfare and that it is hereby declared to

be the policy of Congress to provide permanently for the control and

prevention of soil erosion and thereby to preserve natural resources,

control floods, prevent impairment of reservoirs, and maintain the

navigability of rivers and harbors, protect public health, public lands

and relieve unemployment, and the Secretary of Agriculture, from

now on, shall coordinate and direct all activities with relation to soil

erosion and in order to effectuate this policy is hereby authorized,

from time to time—

(1) To conduct surveys, investigations, and research relating to

the character of soil erosion and the preventive measures needed,

to publish the results of any such surveys, investigations, or research,

to disseminate information concerning such methods, and to conduct

demonstrational projects in areas subject to erosion by wind or water;

(2) To carry out preventive measures, including, but not limited to,

engineering operations, methods of cultivation, the growing of vegetation, and changes in use of land ;

(3) To cooperate or enter into agreements with, or to furnish financial or other aid to, any agency, governmental or otherwise, or any

person, subject to such conditions as he may deem necessary, for

the purposes of this Act; and

(4) To acquire lands, or rights or interests therein, by purchase,

gift, condemnation, or otherwise, whenever necessary for the purposes

of this Act. (16 U. S. C. 590a.)

LANDS ON WHICH PREVENTIVE MEASURES MAY BE TAKEN

SEC. 2. The acts authorized in section 1 (1) and (2) may be

performed—

(a) On lands owned or controlled by the United States or any of

its agencies, with the cooperation of the agency having jurisdiction

thereof; and

(b) On any other lands, upon obtaining proper consent or the necessary rights or interests in such lands (16 U. S. C. 590b).

%
2 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

BENEFITS FOR NON-GOVERNMENT CONTROLLED LANDS

SEC. 3. As a condition to the extending of any benefits under this

Act to any lands not owned or controlled by the United States or any

of its agencies, the Secretary of Agriculture may, insofar as he may

deem necessary for the purposes of this Act, require—

(1) The enactment and reasonable safeguards for the enforcement

of State and local laws imposing suitable permanent restrictions on

the use of such lands and otherwise providing for the prevention of

soil erosion ;

(2) Agreements or covenants as to the permanent use of such lands;

and

(3) Contributions in money, services, materials, or otherwise, to

any operations conferring such benefits (16 U. S. C. 590c).

PERSONNEL

SEC. 4. For the purposes of this Act, the Secretary of Agriculture

may—

(1) Secure the cooperation of any governmental agency;

(2) Subjectto the provisions of the civil-service laws and the [Classification Act of 1949], appoint and fix the compensation of such officers and employees as he may deem necessary, except for a period

not to exceed 8 months from the date of this enactment, the Secretary

of Agriculture may make appointments and may continue employees

of the organization heretofore established for the purpose of administering those provisions of the National Industrial Recovery Act

which relate to the prevention of soil erosion, without regard to the

civil-service laws or regulations and the Classification Act, as

amended ; and any person with technical or practical knowledge may

be employed and compensated, under this Act on a basis to be determined by the Civil Service Commission ; and

(3) Make expenditures for personal services and rent in the District

of Columbia and elsewhere, for the purchase of lawbooks and books

of reference, for printing and binding, for the purchase, operation,

and maintenance of passenger-carrying vehicles, and perform such

acts, and prescribe such regulations, as he may deem proper to carry

outthe provisions of this Act ( 16 U. S. C. 590d).

ESTABLISHMENT OF SOIL CONSERVATION SERVICE

SEC. 5. The Secretary of Agriculture shall establish an agency to be

known as the "Soil Conservation Service," ^ to exercise the powers conferred on him by this Act and may utilize the organization heretofore

established for the purpose of administering those provisions of sections 202 and 203 of the National Industrial Recovery Act which relate

to the prevention of soil erosion, together with such personnel thereof

as the Secretary of Agriculture may determine,'and all unexpended

balances of funds heretofore allotted to said organization shall be

^Functions of Soil Conservation Service in Department of AgricuUnre with

respect to soil and moisture conservation operations conducted on lands under

jurisdiction of Department of the Interior were transferred to the Department

of the Interior, to be administered by the Secretary of the Interior through such

agency or agencies in the Department of the Interior as the Secretary shall designate, by Reorganization Plan No. IV, Sec. 6, effective June 30, 1940, 5 F. R. 2421,

54 Stat. 1235, 5 U. S. 0.133t (Note).
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 3

available until June 30, 1937, and the Secretary of Agriculture shall

assume all obligations incurred by said organization prior to transfer

to the Department of Agriculture. In order that there may be proper

coordination of erosion-control activities the Secretary of Agriculture

may transfer to the agency created under this Act such functions,

funds, personnel, and property of other agencies in the Department

of Agriculture as he may from time to time determine (16 IT. S. C.

590e).

APPROPRIATION AUTHORIZED

SEC. 6. There are hereby authorized to be appropriated for the purposes of this Act such sums as Congress may from time to time determine to be necessary. Appropriations for carrying out this Act allocated for the production or procurement of nursery stock by any Federal agency, or funds appropriated to any Federal agency for allocation to cooperating States for the production or procurement of nursery stock, shall remain available for expenditure for not more than

3 fiscal years (16 Ü. S. C. 590f).

[PUBLIC LAW 412, Seventy-eighth Congress—SEC. 302 (b). The

Soil Conservation Service may sell and distribute supplies, materials,

and equipment to other Government activities, the cost of such supplies

and materials or the value of such equipment (including the cost of

transportation and handling) to be reimbursed to appropriations current at the time additional supplies, materials, or equipment are procured from the appropriations chargeable with the cost or value of

such supplies, materials, or equipment (16 U. S. C. 590q-l).]

AGRICULTURAL CONSERVATION POLICY AND ENUMERATION OF

PURPOSES

SEC. 7. (a) It is hereby declared to be the policy of this Act also to

secure, and the purposes of this Act shall also include, (1) preservation

and improvement of soil fertility; (2) promotion of the economic use

and conservation of land; (3) diminution of exploitation and wasteful

and unscientific use of national soil resources; (4) the protection of

rivers and harbors against the results of soil erosion in aid of maintaining the navigability of waters and water courses and in aid of flood

control ; and (5) reestablishment, at as rapid a rate as the Secretary of

Agriculture determines to be practicable and in the general public

interest, of the ratio between the purchasing power of the net income

per person on farms and that of the income per person not on farms

that prevailed during the 5-year period August 1909-July 1914, inclusive, as determined from statistics available in the United States

Department of Agriculture, and the maintenance of such ratio. The

powers conferred under sections 7 to 14, inclusive, of this Act shall be

used to assist voluntary action calculated to eíFectuate the purposes

specified in this section. Such powers shall not be used to discourage

the production of supplies of roods and fibers sufficient to maintain

normal domestic human consumption as determined by the Secretary

from the records of domestic human consumption in the years 1920

to 1929, inclusive, taking into consideration increased population,

quantities of any commodity that were forced into domestic consumption by decline in exports during such period, current trends in domestic consumption and exports of particular commodities, and the quantities of substitutes available for domestic consumption within any
4 SOIL CONSERVATÏON AND bOMÈSTÎC ALLOTMENT ACT, AS ÁMENDEO

general class of food commodities. In carrying out the purposes of

this section due regard shall be given to the maintenance of a continuous and stable supply of agricultural commodities adequate to meet

consumer demand at prices fair to both producers and consumers

(16U.S.C.590g(a)).

GRANTS TO STATES

(b) The Secretary of Agriculture shall cooperate with States, in

the execution of State plans to effectuate the purposes of this section,

by making grants under this section to enable them to carry out such

plans ( 16 U. S. C. 590g (b) ).

SUBMISSION OF STATE PLANS

(c) Any State which submits to the Secretary, prior to such time

and in such manner and form as the Secretary prescribes, a State plan

to effectuate the purposes of this section shall be entitled to payments,

as provided in this section, for the year to which such plan is applicable,

if such plan is approved by the Secretary as provided in this section

(16U.S.C.590g(c)).

REQUIREMENTS OF STATE PLANS

(d) No such plan shall be approved unless by itsterms :

(1) It provides that the agency to administer the plan shall be

such State agency as may be designated by the Secretary if such

agency is authorized by the State, or such other State agency as

is authorized by the State and approved by the Secretary ;

(2) It provides for such methods of administration, and such

participation in the administration of the plan by county and

community committees or associations of agricultural producers

organized for such purpose, as the Secretary finds necessary for

the effective administration of the plan ; and

(3) It provides for the submission to the Secretary of such

reports as he finds necessary to ascertain whether the plan is

being carried out according to its terms, and for compliance

with such requirements as the Secretary may prescribe to assure

the correctness of and make possible the verification of such

reports (16 U. S. C. 590g (d) ).

APPROVAL OF STATE PLANS

(e) Such plan shall be approved if the Secretary finds that there is

a reasonable prospect that—

(1) Substantial accomplishment in effectuating the purposes

of this section will be brought about through the operation of

such plan and the plans submitted by other States, and

(2) The operation of such plan will result in as svibstantial

a furtherance of such accomplishment as may reasonably be

achieved through the action of such State (16 U. S. C. 590g (e) ).

ALLOCATION OF FUNDS FOR STATE PLANS

(f) Upon approval of any State plan for any year the Secretary

shall allocate to such State such sum (not in excess of the maximum

amount fixed in pursuance of subsection (g) for such State for such
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 5

year) as he finds necessary to carry out sucli plan for such year, and

thereupon shall certify to the Secretary of the Treasury for payment

to such agency of the State as the Secretary of Agriculture certifies

is designated m the plan, and the Secretary of the Treasury shall pay

to such agency, one-fourth of the amount so allocated. The remainder

of the amount so allocated shall be similarly certified and paid in such

installments (payable prior to the end of the calendar year) as may

be provided in the plan. No such installment shall be certified for

payment if the Secretary of Agriculture finds that, prior to the due

date of such installment, there has been a substantial failure by the

State to carry out the plan according to its terms, or that the further

operation of the plan according to its terms will not tend to effectuate

the purposes of this section. No amount shall be certified for payment under any such installment in excess of the amount the Secretary

finds necessary for the effective carrying out of the plan during the

period to which the installment relates (16 TJ. S. C. 590g (f) ).

APPORTIONMENT OF FUNDS FOR SUCCEEDING YEAR STATE PLANS

(g) On or before November 1 of each year, the Secretary shall

apportion among the several States the funds which will be available

for carrying out State plans during the next calendar year, and in

determining the amount to be apportioned to each State, the Secretary

shall take into consideration the acreage and value of the major soil

depleting and major export crops produced in the respective States

during a representative period and the acreage and productivity of

land devoted to agricultural production (including dairy products)

in the respective States during a representative period: Provided^

however^ That any such apportionment of funds available for carrying out State plans during any year prior to 1942 may be made at

any time prior to or during the year to which such plans relate. Notwithstanding the making of an apportionment to any State for any

calendar year, the funds apportioned to any State for which no plan

has been approved for such year, and any amount apportioned to any

State which is not required to carry out an approved plan for such

State for such year, shall be available for carrying out the provisions

of sections 7 to 14, inclusive, of this Act (16 U. S. C. 590g (g) ).

AUTHORITY OF SECRETARY TO MAKE PAYMENTS OR GRANTS OF AID

DIRECTLY TO FARMERS

SEC. 8. (a) In order to carry out the purposes specified in section

7 (a) during the period necessary to afford a reasonable opportunity

for legislative action by a sufficient number of States to assure the

effectuation of such purposes by State action and in order to promote

the more effective accomplishment of such purposes by State action

thereafter, the Secretary shall exercise the powers conferred in this

section during the period prior to January 1, 1955, except with

respect to farming operations commenced in any State after the

effective date of a State plan for such State approved pursuant to

section 7. No such powers shall be exercised after December 31,1954,

except with respect to payments or grants in connection with farming

operations carried out prior to January 1,1955 (16 U. S. C. 590h (a) ;

Public Law 365, 82d Cong., approved May 26,1952, 66 Stat. 95).
6 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

BASIS FOR PAYMENTS AND GRANTS OF AID: LOCAL. COUNTY, AND STATE

COMMITTEES; CONSERVATION MATERIALS AND SERVICES

(b) Subject to the limitations provided in subsection (a) of this

section, the Secretary shall have power to carry out the purposes specified in clauses (1), (2), (3), (4), and (5) of section 7 (a) by making

payments or grants of other aid to agricultural producers, including

tenants and sharecroppers, in amounts determined by the Secretary

to be fair and reasonable in connection w^ith the effectuation of such

purposes during the year with respect to which such payments or

grants are made, and measured by (1) their treatment or use of their

land, or a part thereof, for soil restoration, soil conservation, or the

prevention of erosion; (2) changes in the use of their land; (3) their

equitable share, as determined by the Secretary, of the normal national

production of aily commodity or commodities required for domestic

consumption; or (4) their equitable share, as determined by the Secretary, of the national production of any commodity or commodities

required for domestic consumption and exports adjusted to reflect the

extent to which their utilization of cropland on the farm conforms to

farming practices which the Secretary determines will best effectuate

the purposes specified in section 7 (a) ; or (5) any combination of

the above. In arid or semiarid sections, (1) and (2) above shall be

construed to cover water conservation and the beneficial use of water

on individual farms, including measures to prevent runoff, the building of check dams and ponds, and providing facilities for applying

water to the land. In determining the amount of any payment or

grant measured by (1) or (2) the Secretary shall take into consideration the productivity of the land affected by the farming practices

adopted during the year with respect to which such payment is made.

In carrying out the provisions of this section in the continental United

States, the Secretary is directed to utilize the services of local and

State committees selected as hereinafter provided. The Secretary

shall designate local administrative areas as units for administration

of programs under this section. No such local area shall include

more than one county or parts of different counties. Farmers within

any such local administrative area, and participating or cooperating

in programs administered within such area, shall elect annually from

among their number a local committee of not more than three members for such area and shall also elect annually from among their

number a delegate to a county convention for the election of a county

committee. The delegates from the various local areas in the county

shall, in a county convention, elect, annually, the county committee

for the county which shall consist of three members who are farmers

in the county. The local committee shall select a secretary and may

utilize the county agricultural extension agent for such purpose. The

county committee shall select a secretary who may be the county

agricultural extension agent. If such county agricultural extension

agent shall not have been elected secretary of such committee, he

shall be ex officio a member of the county'committee. The county

agricultural extension agent shall not have the power to vote. In any

county in which there is only one local committee the local committee

shall also be the county committee. In each State there shall be a

State committee for the State composed of not less than three or

more than five farmers who are legal residents of the State and who

are appointed by the Secretary. The State director of the Agri-
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 7

cultural Extension Service shall be ex officio a member of such State

committee. The ex officio members of the county and State committees shall be in addition to the number of members of such committees hereinbefore specified. The Secretary shall make such regulations as are necessary relating to the selection and exercise of the

functions of the respective committees, and to the administration,

through such committees, of such programs. In carrying out the

provisions of this section, the Secretary—shall, as far as practicable,

protect the interests of tenants and sharecroppers; is authorized to

utilize the agricultural extension service and other approved agencies;

shall accord such recognition and encouragement to producer-owned

and producer-controlled cooperative associations as will be in harmony

with the policy toward cooperative associations set forth in existing

Acts of Congress and as will tend to promote efficient methods of

marketing and distribution ; shall not have power to acquire any land

or any right or interest therein; shall, in every practicable manner,

protect the interests of small producers ; and shall in every practical

way encourage and provide for soil-conserving and soil-rebuilding

practices rather than the growing of soil-depleting crops. Kules and

regulations governing payments or grants under this subsection shall

be as simple and direct as possible, and, w^herever practicable, they

shall be classified on two bases: (a) Soil-depleting crops and practices, (b) soil-building crops and practices.

Notwithstanding any other provision of law, in making available

conservation materials consisting of seeds, seed inoculants, fertilizers,

liming and other soil-conditioning materials, trees, or plants, or in

making available soil-conserving or soil-building services, to agricultural producers under this subsection, the Secretary may make payments, in advance of determination of performance by the producers,

to persons who fill purchase orders covering approved conservation

materials or covering soil-conserving or soil-building services, furnished to producers at not to exceed a fair price fixed in accordance

with regulations to be prescribed by the Secretary, or who render

services to the Secretary in delivering to producers approved conservation materials, for the carrying out, by the producers, of soilbuilding or soil-conserving practices approved by the Secretary.

Appropriations are hereby authorized for the purchase in advance

of the program year for which the appropriation is made of seeds,

fertilizers, lime, trees, or any other farming materials or any soilterracing services, and making grants thereof to agricultural producers to aid them in carrying out farming practices approved by the

Secretary in programs under this Act; for the reimbursement of any

Federal, State, or local government agency for fertilizers, seeds, lime,

trees, or other farming materials, or any soil-terracing services, furnished by such agency ; and for the payment of all expenses necessary

in making such grants, including all or part of the costs incident to

the delivery thereof (16 U. S. C. 590h (b) ).

APPORTIONMENT OF ACREAGE ALLOTMENTS

(c) (1) In apportioning acreage allotments under this section in

the case of wheat and corn, the national and State allotments and

the allotments to counties shall be apportioned annually on the basis

of the acreage seeded for the production of the commodity during the

224940•—52 2
8 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

ten calendar years immediately preceding the calendar year in whicli

the national acreage allotmentis determined (plus, in applicable years,

the acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and trends in acreage during the applicable period.

(2) In the case of wheat, the allotment to any county shall be apportioned annually by the Secretary, through the local committees,

among the farms within such county on the basis of tillable acres,

crop-rotation practices, type of soil, and topography. Not more than

3 per centum of such county allotment shall be apportioned to farms

on which wheat has not been planted during any of the three marketing years immediately preceding the marketing year in which the allotment is made. Notwithstanding any other provision of this section, the allotments established, or which would have been established,

for any farm acquired in 1940 or thereafter by the United States for

national-defense purposes shall be placed in an allotment pool and

shall be used only to establish allotments for other farms owned or

acquired by the owner of the farm so acquired by the United States.

The allotments so made for any farm, including a farm on which

wheat has not been planted during any of the three marketing years

preceding the marketing year in which the allotment is made, shall

compare with the allotments established for other farms in the same

area which are similar except for the past acreage of wheat.

[PUBLIC LAW 12, Seventy-ninth Congress.— * * * in establishing acreage allotments under subtitle B of title III of the Agricultural

Adjustment Act of 1938, as amended, or under the Soil Conservation

and Domestic Allotment Act, as amended, the Secretary of Agriculture, under regulations prescribed by him, may provide that for any

crop year (beginning with the crop year 1945) during the present

emergency [terminated July 25, 1947, 61 Stat. 451] any farm, with

respect to which a cotton, wheat, or peanut allotment was established

for the 1942 crop shall be regarded as a farm on which cotton, wheat,

or peanuts, as the case may be, were planted and grown, if the Secretary determines that, with respect to cotton or wheat, because of the

production of war crops designated by him on such farm, or, with

respect to cotton, wheat, or peanuts, because the owner or operator

was serving in the armed forces of the United States, the cotton,

wheat, or peanut production history of the farm for such year is not

representative of the normal history of the farm.

The Secretary may also provide with respect to any such farm that

the past acreage of peanuts shall be adjusted upward to the extent

that the acreage used for growing peanuts on such farm in such year

is below the normal history of the farm (February 28, 1945, 59

Stat. 9).]

(3) In the case of corn, the allotment to any county shall be apportioned annually by the Secretary, through the local committees, among

the farms within such county on the basis of tillable acreage, type

of soil, topography, and crop-rotation practices.

(4) (Kepealed by 53 Stat. 573.)

(5) In determining normal yield per acre for any county under

this section in the case of wheat or corn, the normal yield shall be

the average yield per acre therein for such commodity during the

ten calendar years immediately preceding the calendar year in which

such yield is determined, adjusted for abnormal weather conditions
SÓlL OOMSEEVAtÍÓÑ ANÏ) DÔMËSTÏC ÁLLÓTMÉÍÍT ACÏj AS AMENDED Ô

and trends in yields. If for any reason, there is no actual yield,

or the data therefor are not available for any year, then an appraised

yield for such year, determined in accordance with regulations of the

Secretary, shall be used. If, on account of drought, flood, insect pests,

plant disease, or other uncontrollable natural cause, the yield in any

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

(computed without regard to such year), such year shall be eliminated

in calculating the normal yield per acre. Such normal yield per

acre for any county need be redetermined only when the actual

average yield for the ten calendar years immediately preceding the

calendar year in which such yield is being reconsidered differs by

at least 5 per centum from the actual average yield for the ten years

upon which the existing normal yield per acre for the county was

based.

(6) In determining normal yield per acre for any farm under this

section in the case of wheat or corn, the normal yield shall be the

average yield per acre thereon for such commodity during the ten

calendar years immediately preceding the calendar year in which

such yield is determined, adjusted for abnormal weather conditions

and trends in yields. If for any such year the data are not available,

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

be appraised in accordance with regulations of the Secretary, taking

into consideration abnormal weather conditions, the normal yield

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

(16U.S.C.590h (c)).

CONDITIONS AFFECTING PAYMENTS OR GRANTS OF AID

(d) Any payment or grant of aid made under subsection (b) shall

be conditioned upon the utilization of the land, with respect to which

.mch payment is made, in conformity with farming practices which

the Secretary finds tend to effectuate any one or more of the purposes

specified in clause (1), (2), (3), (4), or (5) of section 7 (a).

Any payment made under subsection (b) with respect to any farm

(except for lands which the Secretary determines should not be

utilized for the harvesting of crops but should be permanently used

for grazing purposes only) shall, if the number of cows kept on such

farm, and in the county in which such farm is located, for the production of milk or products thereof (for market), exceeds the normal

number of such cows, be further conditioned upon the utilization of

the land, with respect to which such payment is made, so that soilbuilding and soil-conserving crops planted or produced on an acreage

equal to the land normally used for the production of soil-depleting

crops but, as a condition of such payment, not permitted to be so used,

shall be used for the purpose of building and conserving the fertility

of the soil, or for the production of agricultural commodities to be

consumed on the farm, and not for market. Whenever it is determined that a county, as a whole, is in substantial compliance with

the provisions of this paragraph, no payment shall be denied any

individual farmer in the county by reason of this paragraph; and no

payment shall be denied a farmer by reason of this paragraph unless

it has been determined that the farmer has not substantially complie.d

with the provisions of this paragraph. Whenever the Secretary finds

that by reason of drought, flood, or other disaster, a shortage of feed

exists in any area, he shall so declare, and to the extent and for the
10 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

period he finds necessary to relieve such shortage, the operation of the

condition provided in this paragraph shall be suspended in such area

and, if necessary to relieve such shortage, in other areas (Jefined by

him. As used in this paragraph, the term "for market" means for

disposition by sale, barter, or exchange, or by feeding (in any form)

to dairy livestock which, or the products of which, are to be sold,

bartered or exchanged ; and such term shall not include consumption

on the farm. An agricultural commodity shall be deemed consumed

on the farm if consumed by the farmer's family, employees, or household, or if fed to poultry or livestock other than dairy livestock on his

farm ; or if fed to dairy livestock on his farm and such dairy livestock,

or the products thereof, are to be consumed by his family, employees,

or household. Whenever the Secretary has reason to believe the

income of producers of livestock (other than dairy cattle) or poultry

in any area from such sources is being adversely affected by increases

in the supply for market of such livestock or poultry, as the case may

be, arising as a result of programs carried out under this Act, he shall

make an investigation with respect to the existence of such facts.

If, upon investigation, the Secretary finds that the income of producers of such livestock or poultry, as the case may be, in any area

from any such source is being adversely affected by such increases, he

shall, as soon as practicable, make such provisions in the administration of this Act with respect to the use of diverted acres as he may find

necessary to protect the interests of producers of such livestock or

poultry in the affected area ( 16 Ü. S. C. 590h ( d) ) •

DIVISION OF PAYMENTS AMONG LANDLORDS, TENANTS, AND SHARECROPPERS

(e) Payments made by the Secretary to farmers under subsection

(b) shall be divided among the landlords, tenants, and sharecroppers

of any farm, with respect to which such payments are made, in the

same proportion that such landlords, tenants, and sharecroppers are

entitled to share in the proceeds of the agricultural commodity with

respect to which such payments are made, or, effective with respect

to the 1942 and subsequent farm programs, in the event of acquisition

of title to, or lease of, any farm for use in connection with the national war effort which caused the producers on such farms to lose,

prior to the time of harvest, their interests in the crops planted

thereon, or the proceeds thereof, payments with respect to such crops,

to the extent that full compensation for the loss of payments with

respect thereto in connection with such acquisition or lease was not

made to such producers, shall be divided among the landlords, tenants, and sharecroppers on such farm in the proportion which it is

determined that such producers would have been entitled to share in

the proceeds of such crops but for such acquisition or lease : Provided^ That payments based on soil-building or soil-conserving practices shall be divided in proportion to the extent which such landlords,

tenants, and sharecroppers contribute to the carrying out of such

practices. Such payments shall be paid by the Secretary directly to

the landlords, tenants, or sharecroppers entitled thereto, and shall

be computed at rates which will permit the Secretary to set aside

out of the funds available for the makin^j of such payments for each

year an amount sufficient to permit the increases herein specified to
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 11

be made within the limits of the funds so available. If with respect

to any farm the total payment to any person for any year would be :

( 1 ) Not more than $20, the jDayment shall be increased by 40

per centum;

(2) More than $20 but not more than $1-0, the payment shall

be increased by $8, plus 20 per centum jf the excess over $20 ;

(3) More than $40 but not more than $60, the payment shall

be increased by $12, plus 10 per centum of the excess over $40 ;

(4) More than $60 but not more than $186, the payment shall

be increased by $14; or

(5) More than $186 but less than $200, the payment shall be

increased to $200.

In the case of payments of more than $1, the amount of the payment

which shall be used to calculate the 40-, 20-, and 10-per-centum increases under clauses (1), (2), and (3) shall not include that part,

if any, of the payment which is a fraction of a dollar.

Beginning with the calendar year 1939, no total payment for any

year to any person under such subsection (b) shall exceed $10,000.

In the case of payments made to any individual, partnership, or

estate on account of performance on farms in different States, Territories, or possessions, the $10,000 limitation shall apply to the total of

the payments for each State, Territory, or possession, for a year and

not to the total of all sucn iDayments. [See further payment limitations contained in Department of Agriculture Appropriation Acts,

fiscal years 1948, 1949, 191:0,1951, 1952, and 1953, pages 133,136,139,

142, 144, 147, of this compilation.]

Persons who carry out farming operations as tenants or sharecroppers on cropland owned by the "united States Government and

who comply w^ith the terms and conditions of the conservation program, formulated pursuant to sections 7 to 17, inclusive, of this Act,

as amended, shall be entitled to apply for and receive payments, or

to retain payments heretofore made, for their participation in said

program to the same extent as other producers (16 U. S. C. 590h (e) ).

CHANGE BETWEEN LANDLORD AND TENANTS OR SHARECROPPERS AFFECTING

LANDLORD'S PAYMENTS

(f) Any change in the relationship between the landlord and the

tenants or sharecroppers, with respect to any farm, that would increase

over the previous year the amount of payments or grants of other aid

under subsection (b) that would otherwise be made to any landlord

shall not operate to increase such payment or grant to such landlord.

Any reduction in the number of tenants below the average number of

tenants on any farm during the preceding three years that would

increase the payments or grants of other aid under such subsection that

would otherwise be made to the landlord shall not hereafter operate to

increase any such payment or grantto such landlord. Such limitations

shall not apply if on investigation the local committee finds that the

change is justified and approves such change in relationship or reduction. Such action of local committees shall be subject to approval or

disapproval by State committees (16 U. S. C. 590h (f) ).
12 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

ASSIGNMENT OF PAYMENT

(g) A payment which may be made to a farmer under this section,

may be assigned, without discount, by ,him in writing as security for

cash or advances to finance making a crop. Such assignment shall be

signed by the farmer and witnessed by a member of the county or other

local committee, or by the treasurer or the secretary of such committee,

and filed with the county agent or the county committee. Such assignment shall include the statement thatthe assignment is not made to pay

or secure any preexisting indebtedness. This provision shall not authorize any suit against or impose any liability upon the Secretary or

any disbursing agent if payment to the farmer is made without regard

to the existence of any such assignment ( 16 U. S. C. 590h ( g) ) .^

[NAVAL STORES CONSERVATION PROGRAM.—In administering the

naval stores conservation programs authorized in section 8 and in

making payments thereunder to gum naval stores producers the Secretary may utilize the services of regional associations of such producers

or any agency of the Government m lieu of the State, county, and other

local committees utilized in the other agricultural conservation programs if he finds more efficient administration will result, and the

provisions of section 388 (b) of the Agricultural Adjustment Act of

1938 shall otherwise be applicable to the administration of said naval

stores conservation programs ( 16 U. S. C. 590h--l).]

SURVEYS, INVESTIGATIONS, AND REPORTS

SEC 9. The Secretary is authorized to conduct surveys, investigations, and research relating to the conditions and factors affecting, and

methods of accomplishing most effectively, the policy and purposes

of section 7 (a). Notwithstanding any provision of existing law, the

Secretary is authorized to make public such information as he deems

necessary to carry out the provisions of this Act. The Secretary shall

transmit to the Congress a report, for the fiscal year ending June

30,1937, and for each fiscal year thereafter, of the operations for such

year under sections 7 to 14, inclusive, of this Act, which report shall

include a statement of the expenditures made and obligations incurred,

by classes and amounts (16 U. S. C. ö90i).

DEFINITION OF AGRICULTURAL COMMODITY

SEC 10. The term "agricultural commodity" as used in this Act

means any such commodity and any regional or market classification,

type, or grade thereof (16 U. S. C. 590j).

AVAILABILITY OF FUNDS

SEC. 11. All funds available for carrying out this Act shall be

available for allotment to the bureaus and offices of the Department of

Agriculture and for transfer to such other agencies of the Federal or

State Governments as the Secretary may request to cooperate or assist

in carrying out this Act and for payments to committees or associations of producers in any region or regions to cover the estimated administrative expenses to be incurred by any such committee or

association in cooperating in carrying out this Act: Provided^ That

the Secretary may prescribe that all or part of such estimated expenses

of any such committee or association may be deducted pro rata from

the payments or grants made to the members thereof : And provided

further^ That the Secretary may make such payments in advance of

determination of performance (16 U. S. C. 590k).
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 13

EXPANSION OF MARKETS FOR AGRICULTURAL COMMODITIES AND ADVANCING

FUNDS TO FEDERAL CROP INSURANCE CORPORATION

SEC. 12. (a) Whenever the Secretary finds that the exercise of the

powers conferred in thissection willtend to carry outthe purpose specified in clause (5) of section 7(a), or will tend to provide for and maintain a continuous and stable supply of agricultural commodities

adequate to meet consumer demand at prices fair to both producers and

consumers, or both, he shall use such part as he deems necessary of the

sums appropriated to carry out this Act for the expansion of domestic

and foreign markets or for seeking new or additional markets for agricultural commodities or the products thereof or for the removal or

disposition of surpluses of such commodities or the products thereof

(16U.S.C.590Z(a)).

(b) The Secretary is authorized to make advances to producers for

the purpose of assisting them to insure their crops with the Federal

Crop Insurance Corporation. The Secretary shall remit the amount

of any such advances to a producer directly to such Corporation in

payment of the premium on the insurance for which the producer has

made application. Advances shall only be made to producers who are

participating or who agree to participate in a program formulated

pursuant to section 8. Except as otherwise provided in this subsection,

the terms and conditions of such advances shall be fixed by the Secretary. In carrying out the provisions of this subsection, the Secretary

may transfer to the Federal Crop Insurance Corporation, prior to the

execution of applications for insurance or requests for advances by

producers, the funds estimated as necessary to cover the advances

which will be requested for the payment of premiums under a cropinsurance program, and any portion of such funds not used for

advances to producers under such program shall be returned to the

Secretary by the Federal Crop Insurance Corporation (16 U. S. C.

590Z(b)).

EXECUTION OF POWERS OF SECRETARY BY PRODUCTION AND MARKETING

ADMINISTRATION

SEC. 13. Notwithstanding the foregoing provisions of this Act, the

Secretary is authorized and directed to provide for the execution by

the Production and Marketing Administration of such powers conferred upon him under sections 7 to 14, inclusive, of this Act as he

deems may be appropriately exercised by such Administration, and

for such purposes the provisions of law applicable to the appointment

and compensation of persons employed by the Production and Marketing Administration shall apply (1^ U. S*. C. 590m).

FINALITY OF DETERMINATIONS

SEC. 14. The facts constituting the bases for any payment or grant

or the amount thereof authorized to be made under section 7 or 8

hereof, when officially determined in conformity with rules or regulations prescribed by the Secretary of Agriculture, shall be reviewable

only by the Secretary of Agriculture (16 Ü. S. C. 590n).

APPROPRIATION AUTHORIZATION AND ALLOCATION OF FUNDS

SEC. 15. To enable the Secretary of Agriculture to carry out the

purposes of sections 7 and 8 there is hereby authorized to be appropriated for any fiscal year not exceeding $500,000,000.
14 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

The funds ixYailable for payments (after allowing for estimated

administrative expenses, and not to exceed 5 per centum for payments

with respect to range lands, noncrop pasture lands, and naval stores)

shall be allocated among the commodities produced with respect to

which payments or grants are to be computed. In allocating funds

among che commodities the Secretary shall take into consideration and

give equal weight to (1) the average acreages planted to the various

commodities (including rotation pasture), for the 10 years 1928 to

1937, adjusted for abnormal weather and other conditions, including

acreage diverted from production under the agricultural adjustment

and soil conservation programs; (2) the value at parity pricesbf the

production from the allotted acreages of the various commodities for

the year with respect to which the payment is made; (3) the average

acreage planted to.the various commodities, during the 10 years 1928

to 1937, including the acreage diverted from production under the

agricultural adjustment and soil conservation programs, in excess of

the allotted acreage for the year with respect to which the payment

is made; and (4) the value based on average prices for the preceding

10 years of the production of the excess acreage determined under

item (3). The rate of payment used in making payments to the producers of each commodity shall be such that the estimated payments

with respect to such commodity shall equal the amount of funds allocated to such commodity as herein provided. For the purpose of

allocating funds and computing payments or grants the Secretary is

authorized to consider as a commodity a group of commodities or a

regional or market classification of a commodity. For the purpose of

computing payments or grants, the Secretary is authorized to use

funds allocated to two or more commodities produced on farms of a

designated regional or other classification to compute payments with

respect to one of such commodities on such farms, and to use funds, in

an amount equal to the estimated payments which would be made in

any county, for making payments pursuant to a special program under

section 8 approved by the Secretary for such county : Provided^ That

farm acreage allotments shall be made for wheat in 1938, but in determining compliance wheat shall be considered in the group with other

crops for which special acreage allotments are not made (16 U. S. C.

590ö).

LIMITATION ON OBLIGATIONS INCURRED

SEC. 16. The obligations incurred for the purpose of carrying out,

for any calendar year, the provisions of sections 7 to 14, inclusive, of

this Act shall not exceed $500,000,000 (16 U. S. C. ö90p).

SCOPE OF ACT ; DEFINITION OF STATE

SEC. 17. (a) This Act shall apply to the United States, the Territories of Alaska and Hawaii, and the possessions of Puerto Rico and

the Virgin Islands, and, as used in this Act, the term "State" includes

Alaska, Hawaii, Puerto Eico, and the Virgin Islands (16 U. S. C.

590q(a)).

(b) This Act may be cited as the "Soil Conservation and Domestic

Allotment Act" (16 U. S. C. 590q (b) ).

AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

EXPLANATORY NOTE

As enacted on February 16,1938, this statute contained amendments

which strengthened and broadened the Soil Conservation and Domestic

Allotment Act, provided for assistance in the marketing of agricultural commodities for domestic consumption and export, provided

for price support loans on wheat, corn, cotton and other agricultural commodities, authorized parity payments for corn, wheat,

tobacco, cotton and rice, when funds are appropriated therefor, provided for farm marketing quotas for tobacco, corn, wheat, cotton and

rice, and established the Federal Crop Insurance Corporation. The

act has been amended many times since its enactment. In 1941, marketing quota and price support provisions for peanuts were added to

the act and the marketing quota provisions for corn and wheat were

changed in several important respects. In 1949, substantial changes

were made in the marketing quota provisions for cotton and rice, and

the price support provisions were repealed with the enactment of

the Agricultural Act of 1949.

The constitutional validity of the marketing quota provisions has

been upheld as to tobacco in the case Mulford v. Smith (307 U. S. 38),

as to cotton in the case Troppy v. La Sara Farmers Gin Oo. (113 F. 2d

350), and as to wheat in the case Wichard v. Filhurn (317 U. S. Ill).

16
PART II

AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

AN ACT

To provide for the conservation of national soil resources and to provide an adequate and balanced flow of agricultural commodities in interstate and foreign

commerce and for other purposes.

Be it enacted hy the Senate and House of Representatives of the

United States of America in Congress assemhled, That this act may

be cited as the "Agricultural Adjustment Act of 1938" (7 U. S. C.

1281).

DECLARATION OF POLICY

SEC. 2. Itis hereby declared to be the policy of Congress to continue

the Soil Conservation and Domestic Allotment Act, as amended, for

the purpose of conserving national resources, preventing the wasteful

use of soil fertility, and of preserving, maintaining, and rebuilding the

farm and ranch land resources in the national public interest; to accomplish these purposes through the encouragement of soil-building

and soil-conserving crops and practices; to assist in the marketing of

agricultural commodities for domestic consumption and for export;

and to regulate interstate and foreign commerce in cotton, wheat,

corn, tobacco, and rice to the extent necessary to provide an orderly,

adequate, and balanced flow of such commodities in interstate and'

foreign commerce through storage of reserve supplies, loans, marketing quotas, assisting farmers to obtain, insofar as practicable, parity

prices for such commodities and parity of income, and assisting consumers to obtain an adequate and steady supply of such commodities

at fair prices (7 U. S. C. 1282).

TITLE I—AMENDMENTS TO SOIL CONSERVATION AND

DOMESTIC ALLOTMENT ACT

This title contains amendments to the Soil Conservation and Domestic Allotment Act, as amended. Insofar as now applicable, these amendments are incorporated in Part I of this compilation.

TITLE II—ADJUSTMENT IN FREIGHT RATES, NEW USES

AND MARKETS, AND DISPOSITION OF SURPLUSES

ADJUSTMENTS IN FREIGHT RATES FOR FARM PRODUCTS

SEC. 201. (a) The Secretary of Agriculture is authorized to make

complaint to the Interstate Commerce Commission with respect to

rates, charges, tariffs, and practices relating to the transportation of

farm products, and to prosecute the same before the Commission.

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

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

17
18 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

practices relating to the transportation of farm products, the Commission shall cause the Secretary to be notified, and, upon application

by the Secretary, shall permit the Secretary to appear and be heard

(7 U. S. C. 1291 (a)).

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

affecting the public interest, upon application by the Secretary, the

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

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

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

and appellate judicial proceedings involving the Commission's determination. The liability of the Secretary in any such case shall

extend only to liability for court costs (7 U. S. C. 1291 (b)).

(c) For the purposes of this section, the Interstate Commerce Commission is authorized to avail itself of the cooperation, records, services, and facilities of the Department of Agriculture (7 U. S. C.

1291(c)).

(d) The Secretary is authorized to cooperate with and assist cooperative associations of farmers making complaint to the Interstate

Commerce Commission with respect to rates, charges, tariff's, and

practices relating to the transportation of farm products (7 U. S. C.

1291 (d)).

NEW USES AND NEW MARKETS FOR FARM COMMODITIES

SEC. 202. (a) The Secretary is hereby authorized and directed to

establish, equip, and maintain four regional research laboratories, one

in each major farm producing area, and, at such laboratories, to conduct researches into and to develop new scientific, chemical, and technical uses and new and extended markets and outlets for farm commodities and products and byproducts thereof. Such research aiïd

development shall be devoted primarily to those farm commodities

in which there are regular or seasonal surpluses, and their products

and byproducts (7 U. S. C. 1292 (a) ). ^ •

(b) For the purposes of subsection (a), the Secretary is authorized to acquire land and interests therein, and to accept in the name

of the United States donations of any property, real or personal, to

any laboratory established pursuant to this section, and to utilize

voluntary or uncompensated services at such laboratories. Donations

to any one of such laboratories shall not be available for use by any

other of such laboratories (7 U. S. C. 1292 (b) ) .^

(c) In carrying out the purposes of subsection (a), the Secretary

is authorized and directed to cooperate with other departments or

agencies of the Federal Government, States, State agricultural experiment stations, and other State agencies and institutions, counties,

municipalities, business or other organizations, corporations, associations, universities, scientific societies, and individuals, upon such

terms and conditions as he may prescribe (7 U. S. C. 1292 (c) ).

(d) To carry out the purposes of subsection (a), the Secretary is

authorized to utilize in each fiscal year, beginning with the fiscal year

beginning July 1, 1938, a sum not to exceed $4,000,000 of the funds

appropriated pursuant to section 391 of this Act, or section 15 of the

Soil Conservation and Domestic Allotment Act, as amended, for such

fiscal year. The Secretary shall allocate one-fourth of such sum

annually to each of the four laboratories established pursuant to this

section (7U. S. C. 1292 (d)).
AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 19

(e) Thé Secretary shall make a report to Congress at the beginning

of each regular session of the activities of, expenditures by, and donations to the laboratories established pursuant to subsection (a) (7

U.S.ai292 (e)).

( f) There is hereby allocated to the Secretary of Commerce for each

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

of funds appropriated for such fiscal year pursuant to section 391 of

this Act, or section 15 of the Soil Conservation and Domestic Allotment Act, as amended, the sum of $1,000,000 to be expended for the

promotion of the sale of farm commodities and products thereof in

such manner as he shall direct. Of the sum allocated under this subsection to the Secretary of Commerce for the fiscal year beginning

July 1,1938, $100,000 shall be devoted to making a survey and investigation of the cause or causes of the reduction in exports of agricultural

commodities from the United States, in order to ascertain methods

by which the sales in foreign countries of basic agricultural commodities produced in the United States may be increased (7 U. S. C. 1292

(f)).

(g) It shall be the duty of the Secretary to use available funds to

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

States and to increase in every practical way the flow of such commodities and the products thereof into the markets of the world (7

U.S.C. 1292 (g)).

TITLE III—PAEITY PAYMENTS, CONSUMEE SAFEGUARDS, AND MARKETING QUOTAS

SUBTITLE A—DEFINITIONS, PARITY PAYMENTS, AND CONSUMER

SAFEGUARDS

DEFINITIONS

SEC. 301. (a) GENERAL DEFINITIONS.—For the purposes of

this title and the declaration of policy—

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

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

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

such date.

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

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

for such commodity, at such times as the Secretary may select during

each year of the 10-year period ending on the 31st of December last

before such date, or during each marketing season beginning in

such period if the Secretary determines use of a calendar year basis

to be impracticable, divided by (ii) the ratio of the general level

of prices received by farmers for agricultural commodities during

such period to the general level of prices received by farmers for

agricultural commodities during the period January 1910 to December

1914, inclusive. As used in this subparagraph, the term "prices"

shall include wartime subsidy payinents made to producers under

programs designed to maintain maximum prices established under

the Emergency Price Control Act of 1942.

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

the general level of prices for articles and services that farmers buy,

wages paid hired farm labor, interest on farm indebtedness secured
20 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

by farm real estate, and taxes on farm real estate, for the calendar

month ending last before such date to (ii) the general level of such

prices, wages, rates, and taxes during the period January 1910 to

December 1914, inclusive.

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

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

determination shall be final.

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

transitional parity price for any agricultural commodity, computed

as provided in this subparagraph, shall be used as the parity price

for such commodity until such date after January 1, 1950, as such

transitional parity price may be lower than the parity price, computed

as provided in subparagraph (A), for such commodity. The transitional i^arity price for any agricultural commodity as of any date

shall be—

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

the effective date of the Agricultural Act of 1948 [January 1,

1950], less

(ii) five per centum of the parity price so determined multiplied by the number of full calendar years which, as of such date,

have elapsed after January 1,1949.

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

(E), if the parity price for any agricultural commodity, computed

as provided in subparagraphs (A) and (E) appears to be seriously

out of line with the parity prices of other agricultural commodities,

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

interested producers shall, hold public hearings to determine the

proper relationship between the parity price of such commodity and

the parity prices of other agricultural commodities. Within 60 days

after commencing such hearing the Secretary shall complete such

hearing, proclaim his findings as to whether the facts require a revision of the method of computing the parity price of such commodity,

and put into effect any revision so found to be required.

(G) Notwithstanding the foregoing provisions of this section, the

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

during the 6-year period beginning January 1, 1950, shall hot be

less than its parity price computed in the manner used prior to the

enactment of the Agricultural Act of 1949.

[The definition of the term ''parity," prior to enactment of the

Agricultural Act of 1949, is as follows: "Parity," as applied to prices

for any agricultural commodity, shall be that price for the commodity

which will give to the commodity a purchasing power with respect

to articles that farmers buy equivalent to the purchasing power of such

commodity in the base period ; and, in the case of all commodities for

which the base period is the period August 1909 to July 1914, which

will also reflect current interest payments per acre on farm indebtedness secured by real estate, tax payments per acre on farm real estate,

and freight rates, as contrasted with such interest payments, tax

payments, and freight rates during the base period. The base period

in case of all agricultural commodities except tobacco shall be the

period August 1909 to July 1914. In the case of all kinds of tobacco

except Burley and flue-cured such base period shall be the period

August 1919 to July 1929, and, in the case of Burley and flue-cured

tobacco, shall be the period August 1934 to July 1939 ; except that the
AGKICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 21

August 1919-July 1929 base period shall be used in allocating any

funds appropriated prior to September 1, 1940 (52 Stat. 38, 54 Stat.

1210).]

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

agriculture which will provide the farm operator and his family with

a standard of living equivalent to those afforded persons dependent

upon other gainful occupation. "Parity" as applied to income from

any agricultural commodity for any year, shall be that gross income

which bears the same relationship to parity income from agriculture

for such year as the average gross income from such commodity for

the preceding 10 calendar years bears to the average gross income from

agriculture for such 10 calendar years.

(3) The term "interstate and foreign commerce" means sale, marketing, trade, and traffic between any State or Territory or the District

of Columbia or Puerto Rico, and any place outside thereof ; or between

points within the same State or Territory or within the District of

Columbia or Puerto Kico, through any place outside thereof ; or within

any Territory or within the District of Columbia or Puerto Eico.

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

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

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

create a surplus of any agricultural commodity which burdens or

obstructs such commerce or the free and orderly flow thereof.

(5) The term "United States" means the several States and Territories and the District of Columbia and Puerto Rico.

(6) The term "State" includes a Territory and the District of Columbia and Puerto Rico.

(7) The term "Secretary" means the Secretary of Agriculture, and

the term "Department" means the Department of Agriculture.

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

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

agency of a State.

(9) The term "corn" means field corn (TU. S. C. 1301 (a), Public

Law 585, 82d Cong., approved July 17,1952).

[PUBLIC LAW 897, Eightieth Congress—SEC. 302 (f). All references in other laws to—

(1) parity,

(2) parity prices,

(3) prices comparable to parity prices, or

(4) prices to be determined in the same manner as provided

by the Agricultural Adjustment Act of 1938 prior to its amendment by this Act for the determination of parity prices,

with respect to prices for agricultural commodities and products

thereof, shall hereafter be deemed to refer to parity prices as determined in accordance with the provisions of section 301 (a) (1) of the

Agricultural Adjustment Act of 1938, as amended by this Act (7

U.S.C. 1301a).]

[PUBLIC LAW 272, Eighty-first Congress—SEC. 3 (a). Notwithstanding any other provision of law. Middling seven-eighths inch cotton shall be the standard grade for purposes of parity and price support (7 U.S.C. 1301b).]

(b) DEFINITIONS APPLICABLE TO ONE OR MORE COMMODITIES.—For the purposes of this title—

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

means the number of bushels of corn which the local committee deter-
22 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

mines would be harvested as grain from such acreage if all the corn on

such acreage were so harvested. In case of a disagreement between

the farmer and the local committee as to the actual production of the

acreage of corn on the farm, or in case the local committee determines

that such actual production is substantially below normal, the local

committee, in accordance with regulations of the Secretary, shall

weigh representative samples of ear corn taken from the acreage involved, make proper deductions for moisture content, and determine

the actual production of such acreage on the basis of such samples.

(B) "Actual production" of any number of acres of cotton, rice

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

times such number of acres.

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

including not to exceed 15^ per centum of moisture content, which

weighs 70 pounds, and in the case of shelled corn, means that ainount

of shelled corn including not to exceed 153^ per centum of moisture

content, which weighs 56 pounds.

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

marketing year shall be the quantity of the commodity on hand in

the United States at the beginning of such marketing' year, not including any quantity which was produced in the United States during

the calendar year then current.

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

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

such marketing year, not including any part of the crop which was

produced in the United States during the calendar year then current.

[NOTE : As originaUy enacted this term included domestically produced cotton

on hand within or without the United States. A new definition, excluding American cotton on hand outside the United States, was enacted in Sec. 201 (c) of the

Agricultural Act of 1948 (62 Stat. 1250). The definition was changed again by

Sec. 2 (a) of Public Law 272, 81st Cong., approved August 29, 1949 (63 Stat.

675), to include all cotton on hand in the United States whether produced

within or without the United States. Sec. 415 (e) of the Agricultural Act

of 1949 (63 Stat. 1056) repealed Sec. 201 (c) of the Agricultural Act of 1948.

Therefore, the provision now in effect is the definition appearing herein which

is the definition enacted by Public Law 272, 81st Cong. Sec. 1301 (b) (3) (B)

of Title 7, U. S. Code, 1946 ed., Supplement V carries the definition of the term

as it was originally enacted.]

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

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

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

the case of Maryland tobacco), which was produced in the United

States prior to the beginning of the calendar year in which such

marketing year begins, except that in the case of cigar-filler and cigarbinder tobacco the quantity of type 46 on hand and theretofore produced in the United States during such calendar year shall also be

included.

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

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

such marketing year, not including any wheat which was produced

in the United States during the calendar year then current, and not

including any wheat held by the Federal Crop Insurance Corporation

under Title V [ofthe Agricultural Adjustment Act of 1938].

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

counties in which the average production of corn (excluding corn used

as silage) during the 10 calendar years immediately preceding the
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 23

calendar year for which such area is determined, after adjustment

for abnormal weather conditions, is 450 bushels or more per farm

and 4 bushels or more for each acre of farm land in the county.

(B) Whenever prior to February 1 of any calendar year the Secretary has reason to believe that any county which is not included in

the commercial corn-producing area determined pursuant to the provisions of subparagraph (A), but which borders upon one of the

counties in such area, or that any minor civil division in a county

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

an average of at least 450 bushels of corn per farm and an average

of at least 4 bushels for each acre of farm land in the county or in the

minor civil division, as the case may be, he shall cause immediate

investigation to be made to determine such fact. If, upon the basis

of such investigation, the Secretary finds that such county or minor

civil division is likely to produce corn in such average amounts during such calendar year, he shall proclaim such determination, and,

commencing with such calendar year, such county shall be included

in the commercial corn-producing area. In the case of a county included in the commercial corn-producing area pursuant to this subparagraph, whenever prior to February 1 of any calendar year the

Secretary has reason to believe that facts justifying the inclusion of

such county are not likely to exist in such calendar year, he shall cause

an immediate investigation to be made with respect thereto. If, upon

the basis of such investigation, the Secretary finds that such facts are

not likely to exist in such calendar year, he shall proclaim such determination, and commencing with such calendar year, such county shall

be excluded from the commercial corn-producing area.

(5) "Farm consumption" of corn means consumption by the farmer's family, employees, or household, or by his work stock; or consumption by poultry or livestock on his farm if such poultry or livestock, or the products thereof, are consumed or to be consumed by

the farmer's family, employees, or household.

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

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

involuntary sale, barter, or exchange, or by gift inter vivos, and, in

the case of corn and wheat, by feeding (in any form) to poultry or

livestock which, or the products of which, are sold, bartered, or exchanged, or to be so disposed of, but does not include disposing of

any of such commodities as premium to the Federal Crop Insurance

Corporation under Title V [of the Agricultural Adjustment Act of

1938].

(B) "Marketed," "marketing," and "for market" shall have corresponding meanings to the term "market" in the connection in which

they are used.

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

including farmers' stock peanuts, shelled peanuts, cleaned peanuts,

or peanuts in processed form, by voluntary or involuntary sale, barter, or exchange, or by gift inter vivos.

(7) "Marketing year" means, in the case of the following commodities, the period beginning on the first and ending with the second

date specified below :

Corn, October 1-September 30 ;

Cotton, August 1-July 31 ;

2249á6*~52 8
24 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

Eice, August 1-July 31 ;

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

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

Wheat, July 1-June 30.

[Peanuts, August 1-July 31 (see Sec. 359 (a), p. 65).]

(8) "National average yield" as applied to cotton or wheat shall

be the national average yield per acre of the commodity during the

10 calendar years in the case of wheat, and during the 5 calendar

years in the case of cotton, preceding the year in which such national

average yield is used in any computation authorized in this title,

adjusted for abnormal weather conditions and, in the case of wheat,

but not in the case of cotton, for trends in yields.

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

corn, cotton, rice, or wheat means the normal yield for the farm times

such number of acres.

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

peanuts for any marketing year shall be (i) the estiinated domestic

consumption of the commodity for the marketing year ending irnmediately prior to the marketing year for which normal supply is

being determined, plus (ii) the estimated exports of the commodity

for the marketing year for w^hich normal supply is being determined,

plus (iii) an allowance for carry-over. The allowance for carryover shall be the following percentage of the sum of the consumption

and exports used in computing normal supply: 10 per centum in

the case of corn; 10 per centum in the case of rice; 15 per centum

in the case of wheat; and 15 per centum in the case of peanuts.^ In

determining normal supply the Secretary shall make such adjustments for current trends in consumption and for unusual conditions

as he may deem necessary.

[Note: Sec. 2 (a) (2) of Public Law 272, 81st Cong., approved Aug. 29, 1949

(63 Stat. 676), deleted "cotton" from the foregoing definition and added a new

subparagraph (C) containing the definition of "normal supply" of cotton. The

word "cotton" has not been omitted in the first sentence of sec. 1301 (b) (10) (A)

of title 7, U. S. Code, 1946 ed., Supplement V.]

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

domestic consumption and exports, plus 175 per centum of a normal

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

exports as an allowance for a normal carry-over.

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

be the estimated domestic consumption of cotton for the marketing

year for which such normal supply is being determined, plus the

estimated exporto of cotton for such marketing year, plus 30 per

centum of the sum of such consumption and exports as an allowance

for carry-over.

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

corn and wheat, shall be the yearly average quantity of the commodity, wherever produced, that was consumed in the United States

during the 10 marketing years immediately preceding the marketing

year in which such consumption is determined, adjusted for current

trends in such consumption.

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

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

produced in the United States that was consumed in the United States

during the 10 marketing years immediately preceding the marketing
AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 25

year in which such consumption is determined, adjusted for current

trends in such consumption.

(C) "JSTormal year's domestic consumption," in the case of rice,

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

States that was consumed in the United States during the five marketing years immediately preceding the marketing year in which

such consumption is determined, adjusted for current trends in such

consumption.

(12) "Normal year's exports" in the case of corn, cotton, rice, tobacco, and wheat shall be the yearly average quantity of the commodity produced in the United States that was exported from the

United States during the ten marketing years (or, in the case of rice,

thQ five marketing years) immediately preceding the marketing year

in which such exports are determined, adjusted for current trends in

such exports.

(13) (A) "Normal yield" for any county, in the case of corn or

wheat, shall be the average yield per acre of corn or wheat for the

county during the ten calendar years immediately preceding the year

in which such normal yield is determined, adjusted for abnormal

weather conditions and'trends in yields. Such normal yield per acre

for any county need be redetermined only when the actual average

yield for the ten calendar years immediately preceding the calendar

year in which such yield is being reconsidered differs by at least 5 per

centum from the actual average yield for the 10 years upon which

the existing normal yield per acre for the county was based.

(B) "Normal yield" for any county, in the case of cotton or peanuts,

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

adjusted for abnormal weather conditions, during the five calendar

years immediately preceding the year in which such normal yield is

determined.

(C) In applying subparagraph (A) or (B), if for any such [j^ear

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

yield for such year, determined in accordance with regulations issued

by the Secretary, shall be used as the actual yield for such year. In

applying such subparagraphs, if, on account of drought, ñood, insect

pests, plant disease, or other uncontrollable natural cause, the yield in

any year of such 10-year period or 5-year period, as the case may be,

is less than 75 per centum of the average (computed without regard to

such year) such year shall be eliminated in calculating the normal

yield per acre.

(DJ "Normal yield" per acre of rice for any land planted to rice

in any year shall be the average yield per acre thereof during the five

calendar years immediately preceding the calendar year for which

such normal yield is determined. If, for any reason, there is no actual

yield or the data therefor are not available for any year, then an appraised yield for such year, determined in accordance with the regulations of the Secretary, shall be used. If the average of the normal

yields for all lands planted to rice in any year in the State (weighted

by the acreage allotments therein) exceeds the average yield per acre

for the State during the period used in determining normal yields,

the normal yields for such lands in the State shall be reduced pro rata

so that the average of such normal yields shall not exceed such State

average yield.
26 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

(E) "Normal yield" for any farm, in the case of corn, wheat, cotton,

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

or peanuts, as the case may be, for the farm, adjusted for abnormal

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

case of cotton or peanuts, for trends in yields,, during the ten calendar

years in the case of corn and wheat, and five calendar years in the

case of cotton or peanuts, immediately preceding the year in which

such normal yield is determined. If for any such year the data are

not available or there is no actual yield, then the normal yield for

the farm shall be appraised in accordance with regulations of the

Secretary, taking into consideration abnormal weather conditions, the

normal yield for the county, and the yield in years for which data are

available.

(14) (A) "Eeserve supply level," in the case of corn, shall be a

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

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

insure a supply adequate to meet domestic consumption and export

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

as in years of plenty.

(B) "Eeserve supply level" of tobacco shall be the normal supply

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

consumption and export needs in years of drought, flood, or other

adverse conditions, as well as in years of plenty.

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

comprising the types specified as classified in Service and Regulatory

Announceiaent Numbered 118 of the Bureau of Agricultural Economics of the Department:

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

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

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

Virginia sun-cured tobacco, comprising type 37 ;

Burley tobacco, comprising type 31 ;

Maryland tobacco, comprising type 32 ;

Cigar-filler and cigar-binder tobacco, comprising types 42, 43, 44,

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

Cigar-filler tobacco, comprising type 41.

The provisions of this title shall apply to each of such kinds of

tobacco severally : Provided, That any one or more of- the types comprising any such kind of tobacco shall be treated as a "kind of tobacco"

for the purposes of this Act if the Secretary finds there is a difference

in supply and demand conditions as among such types of tobacco

which results in a difference in the adjustments needed in the marketings thereof in order to maintain supplies in line with demand.

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

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

marketing year, plus the estimated production of the commodity in

the United States during the calendar year in which such marketing

year begins and the estimated imports of the commodity into the

United States during such marketing year.

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

carry-over at the beginning of such marketing year (or on January 1

of such marketing year in the case of Maryland tobacco) plus the

estimated production thereof in the United States during the calendar

year in which such marketing year begins, except that the estimated
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 27

production of type-46 tobacco during the marketing year with respect

to which the determination is being made shall be used in lieu of the

estimated production of such type during the calendar year in which

such marketing year begins in determining the total supply of cigarfiller and cigar-binder tobacco.

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

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

production of cotton in the United States during the calendar year

in which such marketing year begins and the estimated imports of

cotton into the United States during such marketing year (7 U. S. C.

1301 (b), Public Law 464, 82d Cong., approved July 8, 1952).

(c) The latest available statistics of the Federal Government shall

be used by the Secretary in making the determinations required to be

made by the Secretary under this Act (7 U. S. C. 1301 (c) ).

SEC. 302. (Repealed by 63 Stat. 1051.)

PARITY PAYMENTS

SEC. 303. If and when appropriations are made therefor, the

Secretary is authorized and directed to make payments to producers

of corn, wheat, cotton, rice, or tobacco, on their normal production

of such commodities in amounts which, together with the proceeds

thereof, will provide a return to such producers which is as nearly

equal to parity price as the funds so made available will permit. All

funds available for such payments with respect to these commodities

shall, unless otherwise provided by law, be apportioned to these

commodities in proportion to the amount by which each fails to reach

the parity income. Such payments shall be in addition to and not

in substitution for any other payments authorized by law (7 U. S. C.

1303).

CONSUMER SAFEGUARDS

SEC. 304. The powers conferred under this Act shall not be used

to discourage the production of supplies of foods and fibers sufficient

to maintain normal domestic human consumption as determined by

the Secretary from the records of domestic human consumption in

the years 1920 to 1929, inclusive, taking into consideration increased

population, quantities of any commodity that were forced into domestic consumption by decline in exports during such period, current

trends in domestic consumption and exports of particular commodities,

and the quantities of substitutes available for domestic consumption

within any general class of food commodities. In carrying out the

purposes of this Actit shall be the duty of the Secretary to give due

regard to the maintenance of a continuous and stable supply of agricultural commodities from domestic production adequate to meet

consumer demand at prices fair to both producers and consumers

(7U.S.C.1304).

SUBTITLE B—MARKETING QUOTAS

PART I—MARKETING QUOTAS—TOBACCO

LEGISLATIVE FINDING

SEC. 311. (a) The marketing of tobacco constitutes one of the great

basic industries of the United States with ramifying activities which

directly affect interstate and foreign commerce at every point, and
28 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

stable conditions therein are necessary to the general welfare. Tobacco produced for market is sold on a Nation-wide market and, with

its products, moves almost wholly in interstate and foreign commerce

from the producer to the ultimate consumer. The farmers producing

such commodity are subject in their operations to uncontrollable

natural causes, are widely scattered throughout the Nation, in many

cases such farmers carry on their farming operations on borrowed

money or leased lands, and are not so situated as to be able to organize

effectively, as can labor and industry through unions and corporations enjoying Government protection and sanction. For these reasons, among others, the farmers are unable without Federal assistance

to control effectively the orderly marketing of such commodity with

the result that abnormally excessive supplies thereof are produced

and dumped indiscriminately on the Nation-wide market (7 U. S. C.

1311(a)).

. (b) The disorderly marketing of such abnormally excessive supplies affects, burdens, and obstructs interstate and foreign commerce

by (1) materially affecting the volume of such commodity marketed

therein, (2) disrupting the orderly marketing of such commodity

therein, (3) reducing the price for such commodity with consequent

injury and destruction of interstate and foreign commerce in such

commodity, and (4) causing a disparity between the prices for such

commodity in interstate and foreign commerce and industrial products

therein, with a consequent diminution of the volume of interstate

and foreign commerce in industrial products (7 U. S. C. 1311 (b)).

(c) Whenever an abnormally excessive supply of tobacco exists,

the marketing of such commodity by the producers thereof directly

and substantially affects interstate and foreign commerce in such

commodity and its products, and the operation of the provisions of

this Part becomes necessary and appropriate in order to promote,

foster, and maintain an orderly flow of such supply in interstate and

foreign commerce (7 U. S. C. 1311 (c) ).

NATIONi^L MARKETING QUOTA

SEC. 312. (a) Whenever the Secretary finds that the total supply

of tobacco as of the beginning of the marketing year then current

exceeds the reserve supply level therefor, the Secretary shall proclaim

the amount of such total supply, and, beginning on the first day of the

marketing year next following and continuing throughout such year,

a national marketing quota shall be in effect for the tobacco marketed

during such marketing year: Provided^ That the Secretary shall

proclaim a national marketing quota for each marketing year for

each kind of tobacco for which a national marketing quota was proclaimed for the immediately preceding marketing year, and shall

proclaim a national marketing quota for Virginia sun-cured tobacco

for each marketing year for which a quota is proclaimed for fire-cured

tobacco, and, beginning on the first day of the marketing year next

following and continuing throughout such year, a national marketing

quota shall be in effect for the tobacco marketed during such marketing year. The Secretary shall also determine and specify in such

proclamation the amount of the national marketing quota in terms of

the total quantity of tobacco which may be marketed, which will make

available during such marketing year a supply of tobacco equal to the
AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 29

reserve supply level. Such proclamation shall be made not later than

the 1st day of December in such year. The amount of the national

marketing quota so proclaimed may, not later than the following

March 1, be increased by not more than 20 per centum if the Secretary

determines that such increase is necessary in order to meet market

demands or to avoid undue restriction of marketings in adjusting the

total supply to the reserve supply level (7 U. S. C. 1312 (a) ).

(b) Within 30 days after the date of the issuance of the proclamation specified in subsection (a) of this section, the Secretary shall

conduct a referendum of farmers who were engaged in production of

the crop of tobacco harvested prior to the holding of the referendum

to determine whether such farmers are in favor of or opposed to such

quota. If more than one-third of the farmers voting in the referendum oppose such quota, the Secretary shall, prior to the 1st day of

January, proclaim the result of the referendum and such quota shall

not be effective thereafter. In the same referendum the Secretary

shall also submit to such farmers the question of whether they favor

tobacco marketing quotas for a period of 3 years, beginning with

the marketing year next following. If two-thirds of the farmers

voting on this question favor marketing quotas for a 3-year period,

the Secretary shall proclaim marketing quotas for such period, and,

beginning on the first day of the marketing year next following and

continuing throughout the period so proclaimed, a national marketing

quota shall be in effect for the tobacco marketed during each marketing

year in said period unless amendments are made in the provisions for

determining farm allotments so as to cause material revision of such

allotments before the end of such period. If more than one-third of

the farmers voting on this question oppose marketing quotas for the

3-year period, such results shall be proclaimed by the Secretary and

quotas for a longer period than 1 year shall not be in eff'ect, but such

result shall in no wise affect or limit the proclamation and submission

to a referendum, as otherwise provided in this section, of a national

marketing quota for any marketing year thereafter (7 U. S. C. 1312

(b)).

APPORTIONMENT OF NATIONAL MARKETING QUOTA

SEC. 313. (a) The national marketing quota for tobacco established

pursuant to the provisions of section 312, less the amount to be allotted

under subsection (c) of this section, shall be apportioned by the Secretary among the several States on the basis of the total production of

tobacco in each State during the five calendar years immediately

preceding the calendar year in which the quota is proclaimed (plus,

in applicable years, the normal production on the acreage diverted

under previous agricultural adjustment and conservation programs),

with such adjustments as are determined to be necessary to make correction for abnormal conditions of production, for small farms, and

for trends in production, giving due consideration to seed bed and

other plant diseases during such 5-year period. Notwithstanding

any other provision of this section and section 312 * * * the

Burley tobacco acreage allotment which would otherwise be established for any farm having a Burley acreage allotment in 1942 shall

not be less than one-half acre, and the acreage required for apportionment under this proviso shall be in addition to the National and State

acreage alloti^ents (7 U. S. C. 1313 (a)).
30 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

[PUBLIC LAW 276, Seventjr-eiglith Congress.—* * * notwithstanding the provisions of section 313 (a) of the Agricultural Adjustment Act of 1938, as amended, the hurley tobacco acreage allotment

which would otherwise be establislied for any farm having a hurley

acreage allotment in 1943 shall not be less than one acre, or 25 per

centum of the cropland, whichever is the smaller, and the acreage

required for apportionment under this joint resolution shall be in

addition to the National and State acreage allotments (March 31,

1944,58Stat. 136).]

[PUBLIC LAW 528, Eighty-second Congress.—* * * notwithstanding any other provision of law, the farm acreage allotment for

burley tobacco for any year shall not be less than the smallest of (1) the

allotment established for the farm for the immediately preceding

year, (2) seven-tenths of an acre, or (3) 25 per centum of the cropland :- Provided^ however^ That no allotment of one acre or less shall

be reduced more than one-tenth of an acre in any one year. The

additional acreage required under this Act shall be in addition to the

State acreage allotments and the production on such acreage shall

be in addition to the national marketing quota. This provision shall

be effective for 1953 and subsequent crops (July 12, 1952, 66 Stat.

597).]

(b) The Secretary shall provide, through the local committees, for

the allotment of the marketing quota for any State among the farms

on which tobacco is produced, on the basis of the following: Past

marketing of tobacco, making due allowance for drought, flood, hail,

other abnormal weather conditions, plant bed, and other diseases;

land, labor, and equipment available for the production of tobacco;

crop-rotation practices ; and the soil and other physical factors affecting the production of tobacco: Provided^ That, except for farms

on which for the firsttime in 5 years tobacco is produced to be marketed

in the marketing year for which the quota is effective, the marketing

quota for any farm shall not be less than the smaller of either (1)

3,200 pounds, in the case of flue-cured tobacco, and 2,400 pounds, in

the case of other kinds of tobacco, or (2) the average tobacco production for the farm during the preceding 3 years, plus the average

normal production of any tobacco acreage diverted under agricultural

adjustment and conservation programs during such preceding 3 years

(7U.S.C.1313 (b)).

(c) The Secretary shall provide, through local committees, for

the allotment of not in excess of 5 per centum of the national marketing quota (1) to farms in any State whether it has a State quota or

not on which for the first time in 5 years tobacco is produced to be

marketed in the year for which the* quota is effective and (2) for

further increase of allotments to small farms pursuant to the proviso

in subsection (b) of this section on the basis of the following: Land,

labor, and equipment available for the production of tobacco; croprotation practices; and the soil and other physical factors affecting

the production of tobacco: Provided^ That farm marketing quotas

established pursuant to this subsection for farms on which tobacco

is produced for the first time in 5 years shall not exceed 75 per centum

of the farm marketing quotas established pursuant to subsection (b)

of this section for farms which are similar with respect to the following: Land, labor, and equipment available for the production of
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 31

tobacco, crop-rotation practices, and the soil and other physical factors

affecting the production of tobacco (7 U. S. C. 1313 (c) ).

(d) Farm marketing quotas may be transferred only in such manner

and subject to such conditions as the Secretary may prescribe by

regulations (7 U. S. G. 1313 (d)).

(e) In case of ñue-cured tobacco, the national quota for 1938 is

increased by a number of pounds required to provide for each State in

addition to the State poundage allotment a poundage not in excess of

4 per centum of the allotment which shall be apportioned in amounts

which the Secretary determines to be fair and reasonable to farms in

the State receiving allotments under the Agricultural Adjustment Act

of 1938 which the Secretary determines are inadequate in view of past

production of tobacco, and for each year by a number of pounds sufficient to assure that any State receiving a State poundage allotment of

ñue-cured tobacco shall receive a minimum State poundage allotment

of flue-cured tobacco equal to the average national yield for the preceding 5 years of 500 acres of such tobacco (7 U. S. C. 1313 (e) ).

(f) (Applicable only to 1938 crop.)

(g) Notwithstanding any other provision of this section, the Secretary on the basis of average yield per acre of tobacco for the State

during the 5 years last preceding the year in which the national

marketing quota is proclaimed, adjusted for abnormal conditions of

production, may convert the State marketing quota into a State acreage

allotment, and allot the same through the local committees among

farms on the basis of the factors set forth in subsection (b), using past

acreage (harvested and diverted) in lieu of the past marketing of

tobacco ; and the Secretary on the basis of the national average yield

during the same period, similarly adjusted, may also convert into an

acreage allotment the amount reserved from the national quota pursuantto the provisions of subsection (c), and on the basis of the factors

set forth in subsection (c) and the past tobacco experience of the farm

operator, allot the same through the local committees among farms on

which no tobacco was produced during the last 5 years. Except for

farms last mentioned or a farm operated, controlled, or directed by a

person who also operates, controls, or directs another farm on which

tobacco is produced, the farm-acreage allotment shall be increased by

the smaller of (1) 20 per centum of such allotment or (2) the percentage by which the normal yield of such allotment (as determined

through the local committees in accordance with regulations prescribed

by the Secretary) is less than 3,200 pounds, in the case of flue-cured

tobacco, and 2,400 pounds in the case of other kinds of tobacco: Prövided^ Thatthe normal yield of the estimated number of acres so added

to farm acreage allotments in any State shall be considered as a part of

the State marketing quota in applying the proviso in subsection (a).

The actual production of the acreage allotment established for a farm

pursuant to this subsection shall be the amount of the farm marketing

quota. If any amount of tobacco shall be marketed as having been

produced on the acreage allotment for any farm which in fact was

produced on a different farm, the acreage allotments next established

for both such farms shall be reduced by that percentage which such

amount was of the respective farm marketing quota, except that such

reduction for any such farm shall not be made if the Secretary through

the local committees finds that no person connected with such farm
32 AGBICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

caused, aided, or acquiesced in such marketing; and if proof of the

disposition of any amount of tobacco is not furnished as required by

the Secretary, the acreage allotment next established for the farm on

which such tobacco is produced shall be reduced by a percentage

similarly computed (7 U. S. C. 1313 (g) ).

(h) Notwithstanding any other provision of this part I, any person

who owned a farm, which in 1940 or thereafter was acquired by the

United States for national-defense purposes, and who owns or acquires one or more other farms, shall, upon application to the local

committee, be entitled to have an allotment for any one of such other

farms owned by him for each of the 5 years succeeding the acquisition

by the United States equal to the allotment which would have been

made to such farm plus the allotment which would have been made to

the farm acquired by the United States except for such acquisition :

Provided^ That such allotment shall not exceed 50 per centum of the

acreage of cropland in the farm in the case of flue-cured tobacco, and

20 per centum of the acreage of cropland in the farm, in the case of

kinds of tobacco other than flue-cured. Any farm for which the

allotment has been determined under this subsection shall, after the

end of such 5 years, have its allotment determined on the basis of past

acreage of tobacco, land, labor, and equipment available for the production of tobacco, crop-rotation practices, and soil and other physical

factors affecting the production of tobacco : Provided further^ Thatthe

provisions of this subsection shall not be applicable so long as there is

any penalty due and unpaid, or a failure to account for the disposition

of tobacco produced on the farm acquired by the United States, or if

the allotment next established for such farm would have been reduced

because of the false or improper identification of tobacco produced on

or marketed from such farm. Nothing in this subsection shall be construed as preventing the Secretary from operating any allotment pool

from which allotments are made to share tenants or sharecroppers who

move from farms acquired by the United States for national-defense

purposes to other farms purchased and operated by such persons (7

u.s.c.i3i3(h)). ;

(i) Notwithstanding any other provision of this Act, whenever

after investigation the Secretary determines with respect to any kind

of tobacco that a substantial difference exists in the usage or market

outlets for any one or more of the types comprising such kind of

tobacco and that the quantity of tobacco of such type or types to be

produced under the marketing quotas and acreage allotments established pursuant to this section would not be sufficient to provide an

adequate supply for estimated market demands and carry-over requirements for such type or types of tobacco, the Secretary shall increase the marketing quotas and acreage allotments for farms producing such type or types of tobacco in the preceding year to the extent

necessary to make available a supply of such type or types of tobacco

adequate to meet such demands and carry-over requirements. The

increases in farm marketing quotas and acreage allotments shall be

made on the basis of the production of such type or types of tobacco

during the period of years considered in establishing farm marketing

quotas and acreage allotments for such kind of tobacco. The additional production authorized by this subsection shall be in addition to

the national marketing quota established for such kind of tobacco

pursuant to section 312 of this Act. The increase in acreage under this
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 33

subsection shall not be considered in establishing future State or farm

acreage allotments (7 U. S. C. 1313 (i) ).

PENALTIES

SEC. 314. (a) The marketing of any kind of tobacco in excess of

the marketing quota for the farm on which the tobacco is produced

shall be subject to a penalty of 40 per centum of the average market

price (calculated to the nearest whole cent) for such kind of tobacco

for the immediately preceding marketing year. Such penalty shall

be paid by the person who acquired such tobacco from thé producer

but an amount equivalent to the penalty may be deducted by the buyer

from the price paid to the producer in case such tobacco is marketed

by sale ; or, if the. tobacco is marketed by the producer through a

warehouseman or other agent, such penalty shall be paid by such warehouseman or agent who may deduct an amount equivalent to the penalty from the price paid to the producer : Provided^ That in case any

tobacco is marKeted directly to any person outside the United States

the penalty shall be paid and remitted by the producer. If any producer falsely identifies or fails to account for the disposition of any

tobacco, an amount of tobacco equal to the normal yield of the number

of acres harvested in excess of the farm-acreage allotment shall be

deemed to have been marketed in excess of the marketing quota for

the farm, and the penalty in respect thereof shall be paid and remitted by the producer. Tobacco carried over by the producer

thereof from one marketing year to another may be marketed without payment of the penalty imposed by this section if the total amount

of tobacco available for marketing from the farm in the marketing

year from which the tobacco is carried over did not exceed the farm

marketing quota established for the farm for such marketing year (or

which would have been established if marketing quotas had been in

effect for such marketing year), or if the tobacco so carried over does

not exceed the normal production of that number of acres by which

the harvested acreage of tobacco in the calendar year in which the

marketing year begins is less than the farm-acreage allotment.

Tobacco produced in a calendar year in which marketing quotas

are in effect for the marketing year beginning therein shall be subject to such quotas even though it is marketed prior to the date on

which such marketing year begins (7 U. S. C. 1314 (a) ).

(b) The Secretary shall require collection of the penalty upon

a proportion of each lot of tobacco marketed from the farm equal to

the proportion which the tobacco available for marketing from the

farm in excess of the farm marketing quota is of the total amount of

tobacco available for marketing from the farm if satisfactory proof

is not furnished as to the disposition to be made of such excess tobacco

prior to the marketing of any tobacco from the farm. All funds

collected pursuantto this section shall be deposited in a special deposit

account with the Treasurer of the United States until the end of the

marketing year next succeeding that in which the funds^ are collected,

and upon certification by the Secretary there shall be paid out of such

special deposit account to persons designated by the Secretary the

amount by which the penalty collected exceeds the amount of penalty

due upon tobacco marketed in excess of the farm marketing quota for

any farm. Such special account shall be admistered by the Secretary,

and the basis for, the amount of, and the person entitled to receive a
34 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

payment from such account, when determined in accordance with regulations prescribed by the Secretary, shall be final and conclusive (7

U. S. a 1314 (b)).

PART n.—MARKETING QUOTAS—CORN

LEGISLATIVE FINDING

SEC. 321. Corn is a basic source of food for the Nation, and corn

produced in the commercial corn-producing area moves almost wholly

in interstate and foreign commerce in the form of corn, livestock, and

livestock products.

Abnormally excessive and abnormally deficient supplies of corn

acutely and directly affect, burden, and obstruct interstate and foreign commerce in corn, livestock, and livestock products. When

abnormally excessive supplies exist, transportation facilities in interstate and for,eign commerce are overtaxed, and the handling and processing facilities through which the flow of interstate and foreign commerce in corn, livestock, and livestock products is directed become

acutely congested. Abnormally deficient supplies result in substantial decreases in livestock production and in an inadequate flow of

livestock and livestock products in interstate and foreign commerce,

with the consequence of unreasonably high prices to consumers.

Violent fluctuations from year to year in the available supply of

corn disrupt the balance between the supply of livestock and livestock

products moving in interstate and foreign commerce and the supply

of corn available for feeding. When available supplies of corn are

excessive, corn prices are low and farmers overexpand livestock production in order to find outlets for corn. Such expansion, together

with the relative scarcity and high price of corn, forces farmers to

market abnormally excessive supplies of livestock in interstate commerce at sacrifice prices, endangering the financial stability of producers, and overtaxing handling and processing facilities through

which the flow of interstate and foreign commerce in livestock and

livestock products is directed. Such excessive marketings deplete

livestock on farms, and livestock marketed in interstate and foreign

commerce consequently becomes abnormally low, with resultant high

prices to consumers and danger to the financial stability of persons

engaged in transporting, handling, and processing livestock in interstate and foreign commerce. These high prices in turn result in another overexpansion of livestock production.

Eecurring violent fluctuations in the price of corn resulting from

corresponding violent fluctuations in the supply of corn directly affect

the movement of livestock in interstate commerce from the range cattle regions to the regions where livestock is fattened for market in

interstate and foreign commerce, and also directly affect the movement in interstate commerce of corn marketed as corn which is transported from the regions where produced to the regions where livestock

is fattened for market in interstate and foreign commerce.

Substantially all the corn moving in interstate commerce, substantially all the corn fed to livestock transported in interstate commerce

for fattening , and substantially all the corn fed to livestock marketed

in interstate and foreign commerce, is produced in the commercial

corn-producing area. Substantially all the corn produced in the commercial corn-producing area, with the exception of a comparatively
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 35

small amount used for farm consumption, is either sold or transported

in interstate commerce, or is fed to livestock transported in interstate

commerce for feeding, or is fed to livestock marketed in interstate and

foreign commerce. Almost all the corn produced outside the commercial corn-producing area is either consumed, or is fed to livestock

which is consumed, in the State in which such corn is produced.

The conditions affecting the production and marketing of corn and

the livestock products of corn are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of disparities between the supplies of livestock

moving in interstate and foreign commerce and the supply of corn

available for feeding, and provide for orderly marketing of corn in

interstate and foreign commerce and livestock and livestock products

in interstate and foreign commerce.

The national public interest requires that the burdens on interstate

and foreign commerce above described be removed by the exercise of

Federal power. By reason of the administrative and physical impracticability of regulating the movement of livestock and livestock

products in interstate and foreign commerce and the inadequacy of

any such regulation to remove such burdens, such power can be feasibly

exercised only by providing for the withholding from market of

excessive and burdensome supplies of corn in times of excessive production, and providing a reserve supply of corn available for market in

times of deficient production, in order that a stable and continuous

flow of livestock and livestock products in interstate and foreign commerce may at all times be assured and maintained (7 U. S. C. 1321).

FARM MARKETING QUOTAS

SEC. 322. (a) Whenever in any calendar year the Secretary determines—

(1) that the total supply of corn for the marketing year

beginning in such calendar year will exceed the normal supply for

such marketing year by more than 20 per centum ; or

(2) that the total supply of corn for the marketing year ending

in such calendar year is not less than the normal supply for the

marketing year so ending, and that the average farm price for

corn for three successive months of the marketing year so ending

does not exceed 66 per centum of parity

the Secretary shall, not later than November 15 of such calendar year,

proclaim such fact and marketing quotas shall be in effect in the commercial corn producing area for the crop of corn grown in such area

in the next succeeding calendar year and shall remain in effect until

terminated in accordance with the provisions of this title. With

respect to the 1950 crop of corn the determination and proclamation

required by this section may be made, notwithstanding the foregoing,

at any time prior to February 1, 1950, using 1949 as "such calendar

vear" for the purposes of (1) and (2) of the precedinsr sentence (7 Ü.S.C.1322(a)). ^^ ^^ y ^ ^

(b) (Repealed by 62 Stat. 1256.)

. (c) (Repealed by 62 Stat. 1256.)

(d) Within 20 days after the date of the issuance of the proclamation provided for in subsection (a) of this section, the Secretary shall

conduct a referendum, by secret ballot, of farmers who would be subject to such quotas to determine whether such farmers are in favor
36 AGRICULTURAL ADJUSTMENT ACT OF 1938, AÖ AMENDED

of or opposed to such quotas. If more than one-third of the farmers

voting in the referendum oppose such quotas, the Secretary shall,

prior to March 10, proclaim the result of the referendum and such

quotas shall not become effective (7 U. S. C. 1322 (d) ).

(e) Whenever it shall appear from the September production estimates officially published by the Division of Crop and Livestock Estimates of the Bureau of Agricultural Economics of the Department,

that the total supply of corn as of the beginning of the next succeeding marketing year will not exceed the normal supply by more than

10 per centum thereof, the Secretary shall proclaim such fact prior to

September 20, if farm marketing quotas have been proclaimed for

such marketing year. Thereupon such quotas shall not become effective (7 U. S. C. 1322 (e) ).

AMOUNT OF FARM MARKETING QUOTA

SEC. 323. (a) The farm marketing quota for any farm with respect to any crop of corn shall be an amount of corn equal to the »sum

of—

(1) The amount of corn used as silage ; and

(2) The actual production of the acreage of corn not used as

silage less the amount required for farm consumption and less the

storage amount applicable to the farm as ascertained under section

324(7U.S.C.1323 (a)).

(b) No farm marketing quota with respect to any crop of corn

shall be applicable to any farm on which the normal production of the

acreage planted to corn is less than three hundred bushels (7 Ü. S. C.

1323(b)).

[PUBLIC LAW 74, 77th Cong.—* * * notwithstanding the provisions of the Agricultural Adjustment Act of 1938, as amended (hereinafter referred to as the Act)—•

(1) The farm marketing quota under the Act for any crop of wheat

shall be the actual production of the acreage planted to wheat on the

farm, less the normal production or the actual production, whichever

is the smaller, of that acreage planted to wheat on the farm which is

in excess of the farm acreage allotment for wheat. The farm marketing quota under the Act for any crop of corn shall be the actual production of the acreage planted to corn on the farm, less the normal

production or the actual production, whichever is the smaller, of that

acreage planted to com on the farm which is in excess of the farm

acreage allotment for corn.

The normal production, or the actual production, whichever is the

smaller, of such excess acreage is hereinafter called the "farm marketing excess" of corn or wheat, as the case may be. For the purposes

of this resolution, "actual production" of any number of acres of

corn or wheat on a farm means the actual average yield of corn or

wheat, as the case may be, for the farm times such number of acres.

(2) During any marketing year for which quotas are in effect, the

producer shall be subject to a penalty on the farm marketing excess

of corn and wheat. The rate of the penalty shall be 50 per centum of

the basic rate of the loan on the commodity for cooperators for such

marketing year under section 302 of the Act and this resolution.

(3) The farm marketing excess for corn and wheat shall be regarded as available for marketing, and the penalty and the storage
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 37

amount or amounts to be delivered to the Secretary of the commodity

shall be computed upon the normal production of the excess acreage.

Where, upon the application of the producer for an adjustment of

penalty or of storage, it is shown to the satisfaction of the Secretary

thatthe actual production of the excess acreage is less than the normal

production thereof, the difference between the amount of the penalty

or storage as computed upon the basis of normal production and as

computed upon the basis of actual production shall be returned to or

allowed the producer. The Secretary shall issue regulations under

which the farm marketing excess of the commodity for the farm may

be stored or delivered to him. Upon failure to store or deliver to

the Secretary the farm marketing excess within such time as may be

determined under regulations prescribed by the Secretary, the penalty

computed as aforesaid shall be paid by the producer. Any corn or

wheat delivered to the Secretary hereunder shall become the property

of the united States and shall be disposed of by the Secretary for

relief purposes in the United States or in foreign countries or in such

other manner as he shall determine will divert it from the normal

channels of trade and commerce.

(4) Until the producers on any farm store, deliver to the Secretary,

or pay the penalty on, the farm marketing excess of any crop of corn

or wheat, the entire crop of corn or wheat, as the case may be, produced

on the farm shall be subject to a lien in favor of the United States for

the amount of the penalty.

(5) The penalty upon corn or wheat stored shall be paid by the

producer at the time, and to the extent, of any depletion in the amount

of the commodity so stored, except depletion resulting from some cause

beyond the control of the producer.

(6) Whenever the planted acreage of the then current crop of corn

or wheat on any farm is less than the farm acreage allotment for such

commodity, the total amount of the commodity from any previous

crops required to be stored in order to postpone or avoid payment of

penalty shall be reduced by that amount which is equal to the normal

production of the number of acres by which the farm acreage allotment exceeds the planted acreage. The provisions of section 326 (b)

and (c) of the Act shall be applicable also to wheat. .

(7) A farm marketing quota on corn or wheat shall not be applicable to any farm on which the acreage planted to the commodity is

not in excess of 15- acres. The marketing penalty on corn or wheat

shall not be applicable to any farm which, under the terms of the then

current agricultural conservation program formulated under sections

7 to 17, inclusive, of the Soil Conservation and Domestic Allotment

Act, is classified as a nonallotment farm if the acreage of the commodity harvested on such nonallotment farm is not in excess of 15

acres or the acreage allotment for the farm, whichever is larger. If

the acreage of the commodity harvested on any such nonallotment

farm is in excess of 15 acres and in excess of such acreage allotment,

the normal production or the actual production, whichever is the

smaller, of the acreage harvested in excess of 15 acres or such acreage

allotment, whichever is larger, shall be taken as the farm marketing

excess and shall be subject to penalty: Provided^ That there shall be

no penalty on wheat harvested on any such nonallotment farm from

which no wheat is sold if the acreage of wheat harvested on such farm

does not exceed such acreage per family living thereon as may be used
38 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

for home consumption without reducing the payment with respect to

the farm under the then current agricultural conservation program :

Provided further^Thvit for the marketing year beginning in 1941, there

shall be no marketing penalty on wheat with respect to any such nonallotment farm if the acreage of wheat harvested on the farm is not in

excess of the usual acreage determined for the farm under the 1941

agricultural conservation program and the county committee determines, in accordance with regulations of the Secretary, that there will

not be marketed an amount of wheat in excess of the 1941 farm marketing quota.

(8) Until the farm marketing excess of corn or wheat, as the case

may be, is stored or delivered to the Secretary or the penalty thereon

is paid, each bushel of the commodity produced on the farm which is

sold by the producer to any person within the United States shall be

subject to the penalty as specified in paragraph (2) of this resolution.

Such penalty shall be paid by the buyer, who may deduct an amount

equivalent to the penalty from the price paid to the producer.

(Applicable only through the 1946 crop.)

(9) (Not applicable to corn.)

(10) ; ./ ; . \ _

(11) The provisions of this resolution are amendatory of and supplementary to thç Act, and all provisions of law applicable in respect of

marketing quotas and loans under such Act as so amended and supplemented shall be applicable, but nothing in this resolution shall be

construed to amend or repeal section 301 (b) (6), 323 (b), or 335 (d)

of the Act.

(12) (Not applicable to corn.) [ (7 U. S. C. 1330).]

STORAGE AMOUNT

SEC. 324. (a) If the acreage of corn on the farm does not exceed

the marketing percentage of the farm acreage allotment, there shall

be no storage amount (7 U. S. C. 1324 (a) ).

(b) If the acreage of corn on the farm exceeds the marketing percentage of the farm acreage allotment, the storage amount shall be

a number of bushels equal to the smallest of the following amounts—

(1) The normal production of the acreage of corn on the farm

in excess of the marketing percentage of the farm acreage allotment;

(2) The amount by which the actual production of the acreage

of corn on the farm exceeds the normal production of the marketing percentage of the farm acreage allotment; or

(3) The amount of the actual production of the acreage of corn

on the farm not used for silage (7 U. S. C. 1324 (b) ).

(c) If the storage amount ascertained under subsection (b) is less

than 100 bushels, there shall be no storage amount (7 U. !S. C. 1324

(c)).

PENALTIES

SEC. 325. (a) Any farmer who, while any farm marketing quota is

in effect for his farm with respect to any crop of corn, markets corn

produced on the farm in an amount which is in excess of the aggregate of the farm^ marketing quotas for the farm in effect at such

time, shall be subject to a penalty of 15 cents per bushel of the excess

so marketed.^ Liability for such penalty shall not accrue until the

* See par. (2) of PubUc Law 74,77th Cong., p. 86.
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 39

amount of corn stored under seal on such farm or in storage cribs

rented by the farmer or under his control is less than the storage

amount applicable to such crop plus the storage amounts, if any,

applicable to other crops (7 U. S. C. 1325 (a) ).

(b) If there is stored under seal on the farm or in such cribs an

amount of corn equal at least to the storage amount applicable to

such crop plus such storage amounts applicable to such other crops,

the farmer shall be presumed not to be violating the provisions of

subsection (a). When the amount of corn stored under seal on the.

farm or in such cribs is less than the storage amount applicable to

such crop plus such storage amounts applicable to such other crops, the

farmer shall be presumed to have marketed, while farm marketing

quotas were in effect, corn in violation of the provisions of subsection

(a) to the extent that the amount of corn so stored is less than the

aggregate of such storage amounts. In any action brought to enforce

the collection of penalties provided for in this section, the farmer, to

the extent that the amount of corn so stored is less than the aggregate

of such storage amounts shall have the burden of proving that he did

not market corn in violation of the provisions of subsection (a) (7

U. S.C. 1325 (b)).

(c) For the purposes of this Part, corn shall be deemed to be

stored by the farmer under seal only if stored in such manner as to

conform to the requirements of such regulations as the Secretary shall

prescribe in order more effectively to administer this Part (7 U. S. C.

1325 (c)).

ADJUSTMENT OF FARM MARKETING QUOTAS

SEC. 326. (a) Whenever in any county or other area the Secretary

finds that the actual production of corn plus the amount of corn

stored under seal in such county or other area is less than the normal

production of the marketing percentage of the farm acreage allotments in such county or other area, the Secretary shall terminate farm

marketing quotas for corn in such county or other area (7 U. S. C.

1326(a)).

(b) Whenever, upon any farm, the actual production of the acreage

of corn is less than the normal production of the marketing percentage

of the farm acreage allotment, there may be marketed, without penalty, from such farm an amount of corn from the corn stored under

seal pursuant to section 324 which, together with the actual production of the then current crop, will equal the normal production of

the marketing percentage of the farm acreage allotment (7 XJ. S. C.

1326 (b)).

(c) Whenever, in any marketing year, marketing quotas are not

in effect with respect to the crop of corn produced in the calendar

year in which such marketing year begins, all marketing quotas applicable to previous crops of corn shall be terminated (7 U. S. C.

1326(c)).

PROCLAMATIONS OF SUPPLIES AND COMMERCIAL CORN-PRODUCING AREA

SEC. 327. Not later than September 1, the Secretary shall ascertain

and proclaim the total supply, the normal supply, and the reserve

supply level for such marketing year. Not later than February 1, the

Secretary shall ascertain and proclaim the commercial corn-producing

area (7 U. S. C. 1327).

224946 •—52 4
40 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

ACREAGE ALLOTMENT

SEC. 328. The acreage allotment of corn for any calendar year shall

be that acreage in the commercial corn-producing area which, on the

basis of the average yield for corn in such area during the ten calendar

years immediately preceding such calendar year, adjusted for abnormal weather conditions and trends in yield, will produce an amount

of corn in such area which the Secretary determines will, together

with corn produced in the United States outside the commercial cornproducing area or imported, make available a Supply for the marketing

year beginning in such calendar year, equal to the normal supply.

The Secretary shall proclaim such acreage allotment not later than

February 1 of the calendar year for which such acreage allotment was

determined (7 U. S. C. 1328) •

APPORTIONMENT OF ACREAGE ALLOTMENT

SEC. 329. (a) The acreage allotment for corn shall be apportioned

by the Secretary among the counties in the commercial corn-producing

area on the basis of the acreage seeded for the production of corn during the ten calendar years immediately preceding the calendar year

in which the apportionment is determined (plus, in applicable years,

the acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and for trends in acreage during such period and for the promotion of soil-conservation practices : Provided^ That any downward

adjustment for the promotion of soil-conservation practices shall not

exceed 2 per centum of the total acreage allotment that would otherwise be made to such county (7 U. S. C. 1329 (a) ),

(b) The acreage allotment to the county for corn shall be apportioned by the Secretary, through the local committees, among the

farms within the county on the basis of tillable acreage, crop-rotation

practices, type of soil, and topography (7 U. S. C. 1329 (b) ).

PART III—MARKETING QUOTAS—WHEAT

LEGISLATIVE FINDINGS

SEC. 331. Wheat is a basic source of food for the Nation, is produced throughout the United States by more than a million farmero,

is sold on the country-wide market and, as wheat or flour, flows almost

entirely through instrumentalities of interstate and foreign commerce

from producers to consumers.

Abnormally excessive and abnormally deficient supplies of wheat

on the country-wide market acutely and directly affect, burden, and

obstruct interstate and foreign commerce. Abnorrnally excessive supplies overtax the facilities of interstate and foreign transportation,

congest terminal markets and milling centers in the flow of wheat

from producers to consumers, depress the price of wheat in interstate

and foreign commerce, and otherwise disrupt the orderly marketing

of such commodity in such commerce. Abnormally deficient supplies

result in an inadequate flow of wheat and its products in interstate

and foreign commerce with consequent injurious effects to the instrumentalities of such commerce and with excessive increases in the prices

of wheat and its products in interstate and foreign commerce.
AGRICULTURAL ADJUSTMENT ACT OF 1938^ AS AMENDED 41

Itis in the interest of the general welfare that interstate and foreign

commerce in wheat and its products be protected from such burdensome surpluses and distressing shortages, and that a supply of wheat

be maintained which is adequate to meet domestic consumption and

export requirements in years of drought, flood, and other adverse

conditions as well as in years of plenty, and that the soil resources

of the Nation be not wasted in the production of such burdensome

surpluses. Such surpluses result in disastrously low prices of wheat

and other grains to wheat producers, destroy the purchasing power of

grain producers for industrial products, and reduce the value of the

agricultural assets supporting the national credit structure. Such

shortages of wheat result in unreasonably high prices of flour and

bread to consumers and loss of market outlets by wheat producers.

The conditions affecting the production and marketing of wheat

are such that, without Federal assistance, farmers, individually or

in cooperation, cannot effectively prevent the recurrence of such surpluses and shortages and the burdens on interstate and foreign commerce resulting therefrom, maintain normal supplies of wheat, or

provide for the orderly marketing thereof in interstate and foreign

commerce.

The provisions of this Part affording a cooperative plan to wheat

producers are necessary in order to minimize recurring surpluses and

shortages of wheat in interstate and foreign commerce, to provide

for the maintenance of adequate reserve supplies thereof, and provide

for an adequate flow of wheat and its products in interstate and foreign commerce. The provisions hereof for regulation of marketings

by producers of wheat whenever an abnormally excessive supply of

such commodity exists are necessary in order to maintain an orderly

flow of wheat in interstate and foreign commerce under such conditions (7 U. S. C. 1331).

PROCLAMATIONS OF SUPPLIES AND ALLOTMENTS

SEC. 332. Not later than July 15 of each marketing year for wheat,

the Secretary shall ascertain and proclaim the total supply and the

normal supply of wheat for such marketing year, and the national

acreage allotment for the next crop of wheat (7 Ü. S. C. 1332).

NATIONAL ACREAGE ALLOTMENT

SEO. 333. The national acreage allotment for any crop of wheat

shall be that acreage which the Secretary determines will, on the

basis of the national average yield for wheat, produce an amount

thereof adequate, together with the estimated carry-over at the beginning of the marketing year for such crop and imports, to make

available a supply for such marketing year equal to a normal year's

domestic consumption and exports plus 30 per centum thereof. The

national acreage allotment for wheat for any year shall be not less

than 55 million acres (7 Ü. S. C. 1333).

APPORTIONMENT OF NATIONAL ACREAGE ALLOTMENT

SEC. 334. (a) The national acreage allotment for wheat shall be

apportioned by the Secretary among the several States on the basis
42 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

of the acreage seeded for the production of wheat during the 10 calendar years immediately preceding the calendar year in which the national acreage allotment is determined (plus, in applicable years, the

acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and for trends in acreage during such period (7 U. S. C.

1334 (a) ).

(b) The State acreage allotment for wheat shall be apportioned by

the Secretary among the counties in the State, on the basis of the

acreage seeded for the production of wheat during the 10 calendar

years immediately preceding the calendar year in which the national

acreage allotment is determined (plus, in applicable years, the acreage

diverted under previous agricultural adjustment and conservation

programs), with adjustments for abnormal weather conditions and

trends m acreage during such period and for the promotion of soilconservation practices (7 U. S. C. 1334 (b) ).

(c) The allotment to the county shall be apportioned by the Secretary, through the local committees, among the farms within the county

on the basis of tillable acres, crop-rotation practices, type of soil, and

topography. Not more than 3 per centum of such county allotment

shall be apportioned to farms on which wheat has not been planted

auring any of the three marketing years immediately preceding the

marketing year in which the allotment is made (7 U. S. C. 1334 (c) ).

[PUBLIC LAW 272, Eighty-first Congress.—Notwithstanding any

other provision of law, the farm acreage allotment of wheat for the

1950 crop for any farm shall not be less than the larger of—

(A) 50 per centum of—

(1) the acreage on the farm seeded for the production of wheat

m 1949, and

(2) any other acreage seeded for the production of wheat in

1948 which was fallowed and from which no crop was harvested

in the calendar year 1949, or

Œ) 50 per centum of—

(1) the acreage on the farm seeded for the production of wheat

in 1948, and

(2) any other acreage seeded for the production of wheat in

1947 which was fallowed and from which no crop was harvested

in the calendar year 1948,

adjusted in the same ratio as the national average seedings for the

production of wheat during the 10 calendar years 1939-48 (adjusted

as provided by the Agricultural Adjustment Act of 1938, as amended)

bears to the national acreage allotment for wheat for the 1950 crop :

Provided, That no acreage shall be included under (A) or (B) which

the_ Secretary, by appropriate regulations, determines will become an

undue erosion hazard under continued farming. To the extent that

the allotmentto any county is insufficient to provide for such minimum

farm allotments, the Secretary shall allot such county such additional

acreage (which shall be in addition to the county, State, and national

acreage allotments otherwise provided for under the Agricultural

Adjustment Act of 1938, as amended) as may be necessary in order

to provide for such minimum farm allotments (Auff. 29, 1949, 63

Stat. 670).]

[PUBLIC LAW 12, Seventy-ninth Congress—* * * in establishing

acreage aUotments under subtitle B of title III of the Agricultural
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 43

Adjustment Act of 1938, as amended, or under the Soil Conservation

and Domestic Allotment Act, as amended, the Secretary of Agriculture, under regulations prescribed by him, may provide that for any

crop year (beginning with the crop year 1945) during the present

emergency [terminated July 25, 1947, 61 Stat. 451] any farm, with

respect to which a cotton, wheat, or peanut allotment was established

for the 1942 crop, shall be regarded as a farm on which cotton, wheat,

or peanuts, as the case may be, were planted and grown, if the Secretary determines that, with respect to cotton or wheat, because of

the production of war crops designated by him on such farm, or,

with respect to cotton, wheat, or peanuts, because the owner or operator was serving in the armed forces of the United States, the cotton,

wheat, or peanut production history of the farm for such year is

not representative of the normal history of the farm.

The Secretary may also provide with respect to any such farm

that the past acreage of peanuts shall be adjusted upward to the

extent that the acreage used for growing peanuts on such farm in

such year is below the normal history of the farm (February 28,

1945, 59 Stat. 9).]

(d) Notwithstanding any other provision of this section, the allotments established, or which would have been established, for any

farm acquired in 1940 or thereafter by the United States for nationaldefense purposes shall be placed in an allotment pool and shall be

used only to establish allotments for other farms owned or acquired

by the owner of the farm so acquired by the United States. The

allotment so made for any farm, including a farm on which wheat

has not been planted during any of the three marketing years preceding the marketing year in which the allotment is made, shall compare

with the allotments established for other farms in the same area which

are similar except for the past acreage of wheat (7 U. S. C. 1334 (d) ).

MARKETING QUOTAS

SEC. 335. (a) Whenever in any calendar year the Secretary determines—'

(1) that the total supply of wheat for the marketing year beginning in such calendar year will exceed the normal supply

for such marketing year by more than 20 per centimi; or

(2) that the total supply of wheat for the marketing year

ending in such calendar year is not less than the normal supply

for the marketing year so ending, and that the average farm price

for wheat for three successive months of the marketing year so

ending does not exceed 66 per centum of parity

the Secretary shall, not later than July 1 of such calendar year, proclaim such fact and, during the marketing year beginning July 1

of the next succeeding calendar year and continuing throughout such

marketing year, a national marketing quota shall be in effect with

respect to the marketing of wheat. Marketing quotas for any marketing year shall be in effect with respect to wheat harvested in the

calendar year in which such marketing year begins notwithstanding

that the wheat is marketed prior to the beginning of such marketing

year(7U.S.C.1335(a)).

(b) The amount of the national marketing quota for wheat shall

be equal to a normal year's domestic consumption and exports plus
44 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

30 per centum thereof, less the sum of (1) the estimated carry-over

of wheat as of the beginning of the marketing year with respect to

which the quota is proclaimed and (2) the estimated amount of

wheat which will be used on farms as seed or livestock feed during

the marketing year (7 U. S. C. 1335 (b) ).

(c) The farm marketing quota for any farm for any marketing

year shall be a number of bushels of wheat equal to the sum of—

(1) A number of bushels equal to the normal production or the

actual production, whichever is the greater, of the farm acreage

allotment; and

(2) A number of bushels equal to the amount, or part thereof,

of wheat from any previous crop Miich the farmer has on hand

which, had such amount, or part thereof, been marketed during

the preceding marketing year in addition to the wheat actually

marketed during such preceding marketing year, could have been

marketed without penalty.

(3) Any farmer who does not market wheat in excess of the

normal production or the actual production, whichever is the

greater, of the farm acreage allotment shall not be subject to

penalty under the provisions of section 339. Any farmer who

stores, in accordance with regulations issued by the Secretary, an

amount of wheat which is less than the amount subject to penalty,

shall be presumed to have marketed the amount of such wheat

subject to penalty which is not so stored (7 U. S. C. 1335 (c) ).

[PUBLIC LAW 74, Seventy-seventh Congress—* * * notwithstanding the provisions of the Agricultural Adjustment Act

of 1938, as amended (hereinafter referred to as the Act)—

(1) The farm marketing quota under the Act for any crop of wheat

shall be the actual production of the acreage planted to wheat on the

farm, less the normal production or the actual production, whichever

is the smaller, of that acreage planted to wheat on the farm which is

in excess of the farm acreage allotment for wheat. The farm marketing quota under the Act for any crop of corn shall be the actual production of. the acreage planted to corn on the farm, less the normal

production or the actual production, whichever is the smaller, of that

acreage planted to corn on the farm which is in excess of the farm

acreage allotment for corn.

The normal production, or the actual production, whichever is the

smaller, of such excess acreage is hereinafter called the "farm marketing excess" of corn or wheat, as the case may be. For the purposes of

this resolution, "actual production" of any number of acres of corn

or wheat on a farm means the actual average yield of corn or wheat,

as the case may be, for the farm timas such number of acres.

(2) During any marketing year for which quotas are in effect, the

producer shall be subject to a penalty on the farm marketing excess of

corn and wheat. The rate of the penalty shall be 50 per centum of

the basic rate of the loan-on the commodity for cooperators for such

marketing year under section 302 of the Act and this resolution.

(3) The farm marketing excess for corn and wheat shall be regarded as available for marketing, and the penalty and the storage

amount or amounts to be delivered to the Secretary of the commodity

shall be computed upon the normal production of the excess acreage.

Where, upon the application of the producer for an adjustment of
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 45

penalty or of storage, it is shown to the satisfaction of the Secretary

thatthe actual production of the excess acreage is less than the normal

production thereof, the difference between the amount of the penalty

or storage as computed upon the basis of normal production and as

computed upon the basis of actual production shall be returned to or

allowed the producer. The Secretary shall issue regulations under

which the farm marketing excess of the commodity for the farm may

be stored or delivered to him. Upon failure to store or deliver to the

Secretary the farm marketing excess within such time as may be determined under regulations prescribed by the Secretary, the penalty computed as aforesaid shall be paid by the producer. Any corn or wheat

delivered to the Secretary hereunder shall become the property of the

united States and shall be disposed of by the Secretary for relief

purposes in the United States or in foreign countries or in such other

manner as he shall determine will divert it from the normal channels

of trade and commerce.

(4) Until the producers on any farm store, deliver to the Secretary,

or pay the penalty on, the farm marketing excess of any crop of corn

or wheat, the entire crop of corn or wheat, as the case may be, produced on the farm shall be subject to a lien in favor of the United

States for the amount of the penalty.

(5) The penalty upon corn or wheat stored shall be paid by the

producer at the time, and to the extent, of any depletion in the amount

of the commodity so stored, except depletion resulting from some

cause beyond the control of the producer.

(6) Whenever the planted acreage of the then current crop of corn

or wheat on any farm is less than the farm acreage allotment for such

commodity, the total amount of the commodity from any previous

crops required to be stored in order to postpone or avoid payment of

penalty shall be reduced by that amount which is equal to the normal

production of the number of acres by which the farm acreage" allotment exceeds the planted acreage. The provisions of section 326 (b)

and (c) of the Act shall be applicable also to wheat.

(7) A farm marketing quota on corn or wheat shall not be applicable to any farm on which the acreage planted to the commodity is

not in excess of 15 acres. The marketing penalty on corn or wheat

shall not be applicable to any farm which, under the terms of the then

current agricultural conservation program formulated under sections

7 to 17, inclusive, of the Soil Conservation and Domestic Allotment

Act, is classified as a nonallotment farm if the acreage of the commodity harvested on such nonallotment farm is not in excess of 15

acres or the acreage allotment for the farm, whichever is larger. If

the acreage of the commodity harvested on any such nonallotment

farm is in excess of 15 acres and in excess of such acreage allotment,

the normal production or the actual production, whichever is the

smaller, of the acreage harvested in excess of 15 acres or such acreage

allotment, whichever is larger, shall be taken as the farm marketing

excess and shall be subject to penalty : Provided^ Thatthere shall be no

penalty on wheat harvested on any such nonallotment farm from

which no wheat is sold if the acreage of wheat harvested on such farm

does not exceed such acreage per family living thereon as may be used

for home consumption without reducing the payment with respect to

the farm under the then current agricultural conservation program:
46 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

Provided further^ That for the marketing year beginning in 194Í,

there shall be no marketing penalty on wheat with respect to any

such nonallotment farm if the acreage of wheat harvested on the

farm is not in excess of the usual acreage determined for the farm

under the 1941 agricultural conservation program and the county

committee determines, in accordance with regulations of the Secretary,

that there will not be marketed an amount of wheat in excess of the

1941 farm marketing quota.

(8) Until the farm marketing excess of corn or wheat, as the case

may be, is stored or delivered to the Secretary or the penalty thereon

is paid, each bushel of the commodity produced on the farm which

is sold by the producer to any person within the United States shall

be subject to the penalty as specified in paragraph (2) of this resolution. Such penalty shall be paid by the buyer, who may deduct an

amount equivalent to the penalty from the price paid to the producer.

(9) (Not applicable to wheat.)

(10) (Applicable only through the 1946 crop.)

(11) The provisions of this resolution are amendatory of and supplementary to the Act, and all provisions of law applicable in respect

of marketing quotas and loans under such Act as so amended and

supplemented shall be applicable, but nothing in this resolution shall

be construed to amend or repeal section 301 (b) (6), 323 (b), or 335 (d)

of the Act.

(12) Notwithstanding any of the foregoing provisions, the farm

marketing excess for any croc of wheat for any farm shall not be

larger than the amount by which the actual production of such crop

of wheat on the farm exceeds the normal production of the farm wheatacreage allotment, if the producer establishes such actual production

to the satisfaction of the Secretary?;. Where a downward adjustment

in the amount of the farm marketing excess is made pursuant to the

provisions of this paragraph, the difference between the amount of the

penalty or storage as computed upon the farm marketing excess before

such adjustment and as computed upon the adjusted farm marketing

excess shall be returned to or allowed the producer (7 U. S. C. 1330,

1340).]

(d) No farm marketing quota with respect to wheat shall be applicable in any marketing year to any farm on which the normal

production of the acreage planted to wheat of the current crop is

lessthan 200 bushels (7 U. S. C. 1335 (d) ).

REFERENDUM

SEC. 336. Between the date of the issuance of any proclamation of

any national marketing quota for wheat and July 25, the Secretary

shall conduct a referendum, by secret ballot, of farmers who will be

subject to the quota specified therein to determine whether such

farmers favor or oppose such quota. If more than one-third of the

farmers voting in the referendum oppose such quota, the Secretary

shall, prior to the effective date of such quota, by proclamation suspend the operation of the national marketing quotas with respect to

wheat (7 U.S. C. 1336).
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 47

ADJUSTMENT AND SUSPENSION OF QUOTAS

SEC. 387. (a) If the total supply as proclaimed by the Secretary

within 45 days after the beginning of the marketing year is less than

that specified in the proclamation by the Secretary under section 335

(a), then the national marketing quota specified in the proclamation

imder such section shall be increased accordingly (7 U. S. C. 1*337 (a) ).

(b) Whenever it shall appear from either the July or the August

production estimates, officially published by the Division of Crop

and Livestock Estimates of the Bureau of Agricultural Economics of

the Department, that the total supply of wheat as of the beginning

of the marketing year was less than a normal year's domestic consumption and exports plus 30 per centum thereof, the Secretary shall

proclaim such fact prior to July 20, or August 20, as the case may be,

if farm marketing quotas have been announced with respect to the

crop grown in such calendar year. Thereupon such quotas shall become ineffective (7 U. S. C. 1337 (b) ).

TRANSFER OF QUOTAS

SEC. 338. Farm marketing quotas for wheat shall not be transferable, but, in accordance with regulations prescribed by the Secretary for such purpose, any farm marketing quota in excess of the

supply of wheat for such farm for any marketing year may

be allocated to other farms on which the acreage allotment has not

been exceeded (7 U. S. C. 1338).

PENALTIES

SEO. 339. Any farmer who, while farm marketing quotas are in

effect, markets wheat in excess of the farm marketing quota for the

farm on which such wheat was produced, shall be subject to a penalty

of 15 cents per bushel of the excess so marketed- (7 U. S. C. 1339).

PART IV—MARKETING QUOTAS—COTTON

LEGISLATIVE FINDINGS

SEC. 341. American cotton is a basic source of clothing and industrial products used by every person in the United States and by substantial numbers of people in foreign countries. American cotton is

sold on a world-wide market and moves from the places of production

almost entirely in interstate and foreign commerce to processing establishments located throughout the world at places outside the State

where the cotton is produced.

Fluctuations in supplies of cotton and the marketing of excessive

supplies of cotton in interstate and foreign commerce disrupt the

orderly marketing of cotton in such commerce with consequent injury

to and destruction of such commerce. Excessive supplies of cotton

directly and materially affect the volume of cotton moving in interstate and foreign commerce and cause disparity in prices of cotton and

• See paragraph (2) of Public Law 74,77tli Cong., p. 44.
48 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

industrial products moving in interstate and foreign commerce with

consequent diminution of the volume of such commerce in industrial

products.

The conditions affecting the production and marketing of cotton are

such that, without Federal assistance, farmers, individually or in

cooperation, cannot effectively prevent the recurrence of excessive

supplies of cotton and fluctuations in supplies, cannot prevent indiscriminate dumping of excessive supplies on the Nation-wide and

foreign markets, cannot maintain normal carry-overs of cotton, and

cannot provide for the orderly marketing of cotton in interstate and

foreign commerce.

Itis in the interest of the general welfare that interstate and foreign

commerce in cotton be protected from the burdens caused by the

marketing of excessive supplies of cotton in such commerce, that a

supply of cotton be maintained which is adequate to meet domestic

consumption and export requirements in years of drought, flood and

other adverse conditions as well as in years of plenty, and that the soil

resources of the Nation be not wasted in the production of excessive

supplies of cotton.

The provisions of this Part affording a cooperative plan to cotton

producers are necessary and appropriate to prevent the burdens on

interstate and foreign commerce caused by the marketing in such commerce of excessive supplies, and to promote, foster, and maintain an

orderly flow of an adequate supply of cotton in such commerce

(7U.S.C.1341).

NATIONAL MARKETING QUOTA

SEC. 342. Whenever during any calendar year the Secretary determines thatthe total supply of cotton for the marketing year beginning

in such calendar year will exceed the normal supply for such marketing year, the Secretary shall proclaim such fact and a national marketing quota shall be in effect for the crop of cotton produced in the next

calendar year. The Secretary shall also determine and specify in such

proclamation the amount of the national marketing quota in terms of

the number of bales of cotton (standard bales of 500 pounds gross

weight) adequate, together with (1) the estimated carry-over at the

beginning of the marketing year which begins in the next calendar

year and (2) the estimated imports during such marketing year, to

make available a normal supply of cotton. The national marketing

quota for any year shall be not less than 10 million bales or 1 million

bales less than the estimated domestic consumption plus exports of

cotton for the marketing year ending in the calendar year in which

such quota is proclaimed, whichever is smaller : Frovided^ That the

national marketing quota for 1950 shall be not less than the number of

bales required to provide a national acreage allotment of 21 million

acres. Such proclamation shall be made not later than October 15 of

the calendar year in which such determination is made (7 U. S. C.

1342).

REFERENDUM

SEC. 343. Not later than December 15 following the issuance of the

marketing quota proclamation provided for in section 342, the Secretary shall conduct a referendum, by secret ballot, of farmers engaged

in the production of cotton iii the calendar year in which the referendum is held, to determine whether such farmers are in favor of or op-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 49

posed to the quota so proclaimed : Provided^ That if marketing quotas

are proclaimed for the 1950 crop, farmers eligible to vote in the referendum held with respect to such crop shall be those farmers who were

engaged in the production of cotton in the calendar year of 1948. If

more than one-third of the farmers voting in the referendum oppose

the national marketing quota, such quota shall become ineffective upon

proclamation of the results of the referendum. The Secretary shall

proclaim the results of any referendum held hereunder within 30 days

after the date of such referendum (7 U. S. G. 1343).

ACREAGE ALLOTMENTS

SEC. 344. (a) Whenever a national marketing quota is proclaimed

under section 342, the Secretary shall determine and proclaim a national acreage allotment for the crop of cotton to be produced in the

next calendar year. The national acreage allotment for cotton shall

be that acreage, based upon the national average yield per acre of cotton for the 5 years immediately preceding the calendar year in which

the national marketing quota is proclaimed, required to make available

from such crop an amount of cotton equal to the national marketing

quota (7U.S.C.1344(a)).

(b) The national acreage allotment for cotton for 1953 and subsequent years shall be apportioned to the States on the basis of the

acreage planted to cotton (including the acreage regarded as having

been planted .to cotton under the provisions of Public Law 12, Seventyninth Congress) during the 5 calendar years immediately preceding

the calendar year in which the national marketing quota is proclaimed,

with adjustments for abnormal weather conditions during such period

(7U.S.C. 1344 (b)).

[Public Law 12, Seventy-ninth Congress— * * * in establishing acreage allotments under subtitle B of title III of the Agricultural Adjustment Act of 1938, as amended, or under the Soil Conservation and Domestic Allotment Act, as amended, the Secretary of

Agriculture, under regulations prescribed by him, may provide that

for any crop year (beginning with the crop year 1945) during the

present emergency [terminated July 25,1947, 61 Stat. 451] any farm,

with respect to which a cotton, wheat, or peanut allotment was established for the 1942 crop, shall IDC regarded as a farm on which cotton,

wheat, or peanuts, as the case may be, were planted and grown, if

the Secretary determines that, with respect to cotton or wheat, because

of the production of war crops designated by him on such farm, or,

with respect to cotton, wheat, or peanuts, because the owner or operator was serving in the armed forces of the United States, the cotton,

wheat, or peanut production history of the farm for such year is not

representative of the normal history of the farm.

The Secretary may also provide with respect to any such farm that

the past acreage of peanuts shall be adjusted upward to the extent that

the acreage used for growing peanuts on such farm in such year is

below the normal history of the farm (February 28,1945, 59 Stat. 9).]

(c) The national acreage allotments for cotton for the years 1950

and 1951 shall be apportioned to the States on the basis of a national

acreage allotment base of 22,500,000 acres, computed and adjusted

as follows :

(1) The average of the planted acreages (including acreage

regarded as planted under the provisions of Public Law 12,
50 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

Seventy-ninth Congress) in the States for the years 1945, 1946,

1947, and 1948 shall constitute the national base; except that in

the case of any State having a 1948 planted cotton acreage of

over 1 million acres and less flian 50 per centum of the 1943 allotment, the average of the acreage planted (or regarded as planted

under Public Law 12, Seventy-ninth Congress) for the years

1944,1945,1946,1947, and 1948 shall constitute the base for such

State and shall be included in computing the national base; to

this is to be added (A) the estimated additonal acreage for each

State required for small-farm allotments under subsection (f)

(1) of this section; (B) the acreage required as a result of the

State adjustment provisions of paragraph (2) of this subsection;

(C) the additional acreage required to determine a total national

allotment base of 22,500,000 acres, which additional acreage shall

be distributed on a proportionate basis among States receiving

no adjustment under paragraph (2) of this subsection.

(2) Notwithstanding the provisions of paragraph (1) of this

subsection, the acreage allotment base for 1950 and 1951 for any

State (on the basis of a national acreage allotment base of

22,500,000 acres) shall not be less than the larger of (1) 95 per

centum of the average acreage actually planted to cotton in the

State during the years 1947 and 1948, or (2) 85 per centum of the

acreage planted to cotton in the State in 1948.

(3) If the national acreage allotment for 1950 or 1951 is more

or less than 22,500,000 acres, horizontal adjustments shall be

made percentagewise by States so as to reflect the ratio of the

national acreage allotment for 1950 and 1951 to 22,500,000 acres

(7 U.S.C. 1344(c)).

(d) The national acreage allotment for cotton for 1952 shall be

apportioned to States on the basis of the acreage planted to cotton (including the acreage regarded as having been planted to cotton under

the provisions of Public Law 12, Seventy-ninth Congress) during

the years 1946, 1947, 1948, and 1950, with adjustments for abnormal

weather conditions during such period (7 U. S. C. 1344 (d)).

(e) The State acreage allotment for cotton shall be apportioned

to counties on the same basis as to years and conditions as is applicable to the State under subsections (b), (c), and (d) of this section:

Provided^ That the State committee may reserve not to exceed 10

per centum of its State acreage allotment ( 15 per centum if the State's

1948 planted acreage was in excess of 1 million acres and less than

half its 1943 allotment) which shall be used to make adjustments in

county allotments for trends in acreage, for counties adversely affected

by abnormal conditions affecting plantings, or for small or new farms

(7U. S. C. 1344 (e)).

(f) The county acreage allotment, less not to exceed the percentage

provided for in paragraph 3 of this subsection, shall be apportioned

to farms on which cotton has been planted (or regarded as having

been planted under the provisions of Public Law 12, Seventy-ninth

Congress) in any 1 of the 3 years immediately preceding the year for

which such allotment is determined on the foUowin^ï; basis :

(1) There shall be allotted the smaller of the following: (A)

5 acres; or (B) the highest number of acres planted (or regarded

as planted under Public Law 12,79th Cong.) to cotton in any year

of such 3-year period.
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 51

(2) The remainder shall be allotted to farms other than farms

to which an allotment has been made under paragraph (1) (B)

so that the allotment to each farm under this paragraph together

with the amount of the allotment to such farm under paragraph

(1) (A) shall be a prescribed percentage (which percentage shall

be the same for all such farms in the county or administrative

area) of the acreage, during the preceding year, on the farm

which is tilled annually or in regular rotation, excluding from

such acreages the acres devoted to the production of sugarcane

for sugar; sugar beets for sugar; wheat, tobacco, or rice for

market ; peanuts picked and threshed ; wheat or rice for feeding

to livestock for market; or lands determined to be devoted primarily to orchards or vineyards, and nonirrigated lands in irrigated areas : Provided^ however^ That if a farm would be allotted

under this paragraph an acreage together with the amount of the

allotment to such farm under paragraph (1) (A) in excess of

the largest acreage planted (and regarded as planted under Public

Law 12, T9th Cong.) to cotton during any of the preceding 3

years, the acreage allotment for such farm shall not exceed such

largest acreage so planted (and regarded as planted under Public

Law 12, 79th Cong.) in any such year.

(3) The county committee may reserve not in excess of 15 per

centum of the county allotment * * * which, in addition

to the acreage made available under the proviso in subsection (e),

shall be used for (A) establishing allotments for farms on which

cotton was not planted (or regarded as planted under Public Law

12, 79th Cong.) during any of the three calendar years immediately preceding the year for which tlie allotment is made, on the

basis of land, labor, and equipment available for the production

of cotton, crop-rotation practices, and the soil and other physical

facilities affecting the production of cotton; and (B) making adjustments of the farm acreage allotments established under paragraphs (1) and (2) of this subsection so as to establish allotments

which are fair and reasonable in relation to the factors set forth

in this paragraph and abnormal conditions of production on such

farms : Provided^ That not less than 20 per centum of the acreage

reserved under this subsection shall, to the extent required, be

allotted, upon such basis as the Secretary deems fair and reasonable to farms ( other than farms to which an allotment has been

made under subsection (f) (1) (B)), if any, to which an allotment of not exceeding 15 acres may be made under other provisions of this subsection.

(4) Any part of the acreage allotted for 1950 to individual

farms in any county under the provisions of this section which

will not be planted to cotton and which is voluntarily surrendered

to the county committee shall be deducted from the allotments to

such farms and may be reapportioned by the county committee to

other farms in the same county receiving allotments to the extent

necessary to provide such farms with the allotments authorized

under paragraph (5) of this subsection. If any acreage remains

after providing such allotments, it may be apportioned in amounts

determined by the county committee to be fair and reasonable

to other farms in the same county receiving allotments which the

county committee determines are inadequate and not representa-
52 AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED

tive in view of their past production of cotton and to new farms

in such county. No allotment shall be made, or increased, by

reason of this paragraph to an acreage in excess of 40 per centum

of the acreage on the farm which is tilled annually or in regular

rotation, as determined under regulations prescribed by the Secretary. Any transfer of allotment under this paragraph shall not

operate to reduce the allotment for any subsequent year for the

farm from which acreage istransferred, except in accordance with

paragraph (1) (B) and the proviso in paragraph (2) of this

subsection : Provided^ That any part of any farm acreage allotment may be permanently released in writing to the county committee by the owner and operator of the farm and may be reapportioned in the manner set forth above. In any subsequent year,

unless hereafter otherwise provided by law, acreage surrendered

under this paragraph and reallocated pursuant to applications

filed in accordance with the provisions of paragraph (5) of this

section shall be credited to the State and county in determining

acreage allotments.

(5) Notwithstanding any other provision of law and without

reducing any farm acreage allotment determined pursuant to

the foregoing provisions of this subsection, each farm acreage

allotment for 1950 shall be increased by such amount as may be

necessary to provide an allotment equal to the larger of 65 per

centum of the average acreage planted to cotton (or regarded

as planted to cotton under the provisions of Public Law 12, 79th

Cong.) on the farm in 1946, 1947, and 1948, or 45 per centum of

the highest acreage planted to cotton (or regarded as planted

to cotton under Public Law 12, 79th Cong.) on the farm in any

one of such 3 years; but no such allotment shall be increased by

reason of this provision to an acreage in excess of 40 per centum

of the acreage on the farm which is tilled annually or in regular

rotation, as determined under regulations prescribed by the Secretary. An increase in any 1950 farm acreage allotment shall be

made pursuant to this paragraph only upon application in writing

by the owner or operator of the farm within such reasonable period

of time (in no event less than 15 days) as may be prescribed by

the Secretary. The additional acreage required to be allotted to

farms under this paragraph shall be in addition to the county.

State, and national acreage allotments and the production from

such acreage shall be in addition to the national marketing quota.

The additional acreage authorized by this paragraph shall not be

taken into account in establishing future State, county, and farm

acreage allotments (7 U. S. C. 1344 (f) ).

(g) Notwithstanding the foregoing provisions of this section—

(1) State, county, and farm acreage allotments and yields for

cotton shall be established in conformity with Public Law 28,

Eighty-first Congress.

(2) In apportioning the county allotment among the farms

within the county, the Secretary, through the local committees,

shall take into consideration different conditions within separate

administrative areas within a county if any exist, incmding

types, kinds, and productivity of the soil so as to prevent discrimination among the administrative areas of the county.
AGRICULTURAL ADJUSTMENT ACT OF 1938^ AS AMENDED 53

(3) For any farm on which the acreage planted to cotton in

any year is less than the farm acreage allotment for such year

by not more than the larger of 10 per centum of the allotment

or 1 acre, an acreage equal to the farm acreage allotment shall be

deemed to be the acreage planted to cotton on such farm, and the

additional acreage added to the cotton acreage history for the

farm shall be added to the cotton acreage history for the county

and State (7 U. S. C. 1344 (g) ).

[PUBLIC LAW 28, Eighty-first Congress.—* * * notwithstanding the provisions of title III of the Agricultural Adjustment Act

of 1938, as amended, or of any other law. State, county, and farm

acreage allotments and yields for cotton for any year after 1949 shall

be computed without regard to yields or to the acreage planted to

cotton in 1949 (March 29,1949, 63 Stat. 17; 7 U. S. C. 1344a).]

(h) Notwithstanding any other provision of this section, the county

committee, upon application by the owner or operator of the farm,

( 1) may establish an allotment for any cotton farm acquired in 1940 or

thereafter for nonfarming purposes by the United States or any State

or agency thereof which has been returned to agricultural production

but which is not eligible for an allotment under paragraph (1) or (2)

of subsection (f) of this section, and (2) shall establish an allotment

for any farm within the State owned or operated by the person from

whom a cotton farm was acquired in such State in 1940 or thereafter

for a governmental or other public purpose : Provided^ That no allotment shall be established for any such farm unless application therefor

is filed within 3 years after acquisition of such farm by the applicant or

within 3 years after the enactment of this Act, whichever period is

longer : Arid provided further^ That no person shall be entitled to

receive an allotment under both (1) and (2) of this subsection. The

allotment so made for any such farm shall compare with the allotments

established for other farms in the same area which are similar, taking

mto consideration the acreage allotment, if any, of the farm so acquired, the land, labor, and equipment available for the production of

cotton, crop rotation practices, and the soil and other physical facilities

affecting the production of cotton. Except to the extent that the production on any such farm has contributed to the county and State

allotments, any allotment established pursuant to this subsection shall

be in addition to the acreage allotments otherwise established for the

county and State under this Act, and the production from the additional acreage so allotted shall be in addition to the national marketing

quota (7U.S.C. 1344(h)).

(i) Notwithstanding any other provision of this Act, any acreage

planted to cotton in excess of the farm acreage allotment shall not Be

taken into account in establishing State, county, and farm acreage

allotments (7 U. S. C. 1344 (i) ).

(j) Notwithstanding any other provision of this Act, State and

county committees shall make available for inspection by owners or

operators of farms receiving cotton acreage allotments all records

pertaining to cotton acreage allotments and marketing: quotas (7 Ü.S.C.1344(j)). ëH V

(k) Notwithstanding any other provision of this section except subsection (g) ( 1), there shall be allotted to each State for which an allotment is made under this section not less than the smaller of (A) 4,000
54 AGRICULTURAL ADJUSTMENT ACT OF 1938^ AS AMENDED

acres or (B) the highest acreage planted to cotton in any one of the

3 calendar years immediately preceding the year for which the allotment is made (7 U. Ö. C. 1344 (k) ).

(1) Notwithstanding any other provision of law, the Secretary in

administering the provisions of Public Law 12, Seventy-ninth Congress, as it relates to war crops, shall carry out the provisions of such

Act in the following manner :

(i) A survey shall be conducted of every farm which had a

1942 cotton acreage allotment, and of such other farms as the

Secretary considers necessary in the administration of Public

Law 12. This survey shall obtain for each farm the most accurate information possible on (a) the total acreage in cultivation, and (b) the acreage of individual crops planted on each

farm in the years 1941,1945,1946, and 1947.

(ii) An eligible farm for war-crop credit shall be a farm on

which (a) the cotton acreage on the farm in 1945, 1946, or 1947,

was reduced below the cotton acreage planted on the farm in

1941 ; (b) the war-crop acreage on the farm in 1945,1946, or 1947,

was increased above the war-crop acreage on the farm in 1941;

and (c) the farm had a cotton acreage allotment in 1942.

(iii) A farm shall be regarded as having planted cotton (in

addition to the actual acreage planted to cotton) to the extent of

the lesser of (a) the reduction in cotton acreage for each of the

years 1945,1946, and 1947, below the acreage planted to cotton in

1941, or (b) the increase in war crops for each of the years 1945,

1946, and 1947, above that planted to such war crops in 1941.

However, the county committee may be given the discretion to

adjust such war-crop credit when the county committee determines that the reduction in cotton acreage was not related to an

increase in war crops, but the adjustment shall be made only after

consultation with the producer.

(iv) The Secretary, using the best information obtainable, and

working with and through the State and county committees, shall

use whatever means necessary to make an accurate determination

of the credits due each individual farm, under Public Law 12.

(v) The total of the war-crop credits due the individual farms

in each county shall be credited to the county and the total of

the war-crop credits due all of the counties in a State shall be

credited to the State.

(vi) The acreage credited to States, counties, and farms for

the years 1945,1946, or 1947, because of war crops, shall be taken

into full account in the determination and distribution of cotton

acreage allotments on a national. State, county, and farm basis

(7Ü.S.C. 1344(1)).

FARM MARKETING QUOTAS

SEC. 345. The farm marketing quota for any crop of cotton shall be

the actual production of the acreage planted to cotton on the farm

less the farm marketing excess. The farm marketing excess shall be

the normal production of that acreage planted to cotton on the farm

which is in excess of the farm acreage allotment: Provided^ That such

farm marketing excess shall not be larger than the amount by which

the actual production of cotton on the farm exceeds the normal production of the farm acreage allotment, if the producer establishes
AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 55

such actual production to the satisfaction of the Secretary (7 U. S. C.

1345),

PENALTIES

SEC. 346. (a) Whenever farm marketing quotas are in effect with

respect to any crop of cotton, the producer shall be subject to a penalty

on the farm marketing excess at a rate per pound equal to 50 per

centum of the parity price per pound for cotton as of June 15 of the

calendar year in which such crop is produced (7 U. S. C. 1346 (a) ),

(b) The farm marketing excess of cotton shall be regarded as available for marketing and the amount of penalty shall be computed upon

the normal production of the acreage on the farm planted to cotton in

excess of the farm acreage allotment. If a downward adjustment in

the amount of the farm marketing excess is made pursuant to the

proviso in section 345, the difference between the amount of the penalty

computed upon the farm marketing excess before such adjustment and

as computed upon the adjusted farm marketing excess shall be returned to or allowed the producer (7 U. S. C. 1346 (b) ).

(c) The person liable for payment or collection of the penalty shall

be liable also for interest thereon at the rate of 6 per centum per

annum from the date the penalty becomes due until the date of payment of such penalty (7 Ü. S. C. 1346 (c) ).

(d) Until the penalty on the farm marketing excess is paid, all

cotton produced on the farm and marketed by the producer shall be

subject to the penalty provided by this section and a lien on the entire

crop of cotton produced on the farm shall be in effect in favor of the

united States (7 U. S. C. 1346 (d) ).

LONG STAPLE COTTON

^ SEC. 347. (a) Except as otherwise provided by this section, the provisions of this part shall not apply to extra long staple cotton which

is produced from pure strain varieties of the Barbadense species, or

any; hybrid thereof, or other similar types of extra long staple cotton

designated by the Secretary having characteristics needed for various

end uses for which American upland cotton is not suitable, and grown

in irrigated cotton-growing regions of the United States designated

by the Secretary or other areas designated by the Secretary as suitable

for the production of such varieties or types (7 U. S. C. 1347 (a),

Public Law 585, 82d Cong., approved July 17, 1952, 66 Stat. 759).

(b) Whenever during any calendar year, not later than October 15,

the Secretary determines that the total supply of cotton described in

subsection (a) for the marketing year beginning in such calendar year

will exceed the normal supply thereof for such marketing year by more

than 8 per centum, the Secretary shall proclaim such fact and a national marketing quota shall be in effect for the crop of such cotton

produced in the next calendar year. The Secretary shall also determine and specify in such proclamation the amount of the national

marketing quota in terms of the quantity of cotton described in subsection (a) adequate to make available a normal supply of such cotton,

taking into account (1) the estimated carry-over at the beginning of

the marketing year which begins in the next calendar year, and (2) the

estimated imports during such marketing year. The national mar224946"—52 5
56 AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED

keting quota for cotton described in subsection (a) for any year shall

not be less than the larger of 30,000 bales or a number of bales equal to

30 per centum of the estimated domestic consumption plus exports of

such cotton for the marketing year beginning in the calendar year in

which such quota is proclaimed (7 U. S. C. 1347 (b), Public Law 585,

82d Cong., approved July 17,1952, 66 Stat. 759).

(c) All provisions of this Act, except section 342, subsections (h),

(k), and (1) of section 344, the parenthetical provisions relating to

acreages regarded as having been planted to cotton, and the provisions

relating to minimum small farm allotments, shall, insofar as applicable, apply to marketing quotas and acreage allotments authorized by

this section : Provided, Thatthe applicable penalty rate for such cotton

under section 346 shall be the higher of 50 per centum of the parity

price or 50 per centum of the support price for extra long staple cotton as of the date specified therein (Public Law 585, 82d Cong., approved July 17,1952, 66 Stat. 760).

(d) Unless marketing quotas are in effect under subsection (b)

of this section, the penalty provisions of section 346 shall not apply

to any cotton the staple of which is 1^2 inches or more in length

(Public Law 585, 82d Cong., approved July 17, 1952, 66 Stat. 760).

(e) The exemptions authorized by subsections (a) and (d) of

this section shall not apply unless (1) the cotton is ginned on^a rollertype gin or (2) the Secretary authorizes the cotton to be ginned on

another type gin for experimental purposes or to prevent loss of

the cotton due to frost or other adverse condition (Public Law 585,

82d Cong., approved July 17,1952, 66 Stat. 760).

INELIGIBILITY FOR PAYMENTS

SEC. 348. (a) Any person who knowingly plants cotton on his

farm in any year in excess of the farm acreage allotment for cotton

for the farm for such year under section 344 shall not be eligible for

any payment for such year under the Soil Conservation and Domestic

Allotment Act, as amended (7 U. S. C. 1348 (a) ).

(b) All persons applying for any payment of money under the

Soil Conservation and JDomestic Allotment Act, as amended, with

respect to any farm located in a county in which cotton has been

planted during the year for which such payment is offered, shall file

with the application a statement that the applicant has not knowingly

planted, during the current year, cotton on land on his farm in excess

of the acreage allotted to the farm under section 344 for such year

(7 U.S.C. 1348(b)).

PART V—MARKETING QUOTAS—RICE

LEGISLATIVE FINDING

SEC. 351. (a) The marketing of rice constitutes one of the great

basic industries of the United States with ramifying activities which

directly affect interstate and foreign commerce at every point, and

stable conditions therein are necessary to the general welfare. Rice

produced for market is sold on a Nation-wide market, and, with its

products, moves almost wholly in interstate and foreign commerce

from the producer to the ultimate consumer. The farmers producing

such commodity are subject in their operations to uncontrollable
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 57

natural causes, in many cases such farmers carry on their farming

operations on borrowed money or leased lands, and are not so situated

as to be able to organize effectively, as can labor and industry, through

unions and corporations enjoying Government sanction and protection

for joint economic action. For these reasons, among others, the

farmers are unable without Federal assistance to control effectively

the orderly marketing of such commodity with the result that abnormally excessive supplies thereof are produced and dumped indiscriminately on the Nation-wide market (7 U. S. C. 1351 (a)).

(b) The disorderly marketing of such abnormally excessive supplies affects, burdens, and obstructs interstate and foreign commerce

by (1) materially affecting the volume of such commodity marketed

therein, (2) disrupting the orderly marketing of such commodity

therein, (3) reducing the prices for such commodity with consequent

injury and destruction of such commerce in such commodity, and (4)

causing a disparity between the prices for such commodity in interstate and foreign commerce and industrial products therein, with a

consequent diminution of the volume of interstate and foreign

commerce in industrial products (7 U. S. C. 1351 (b)).

(c) Whenever an abnormally excessive supply of rice exists, the

marketing of such commodity by the producers thereof directly and

substantially affects interstate and foreign commerce in such commodity and its products, and the operation of the provisions of this

Part becomes necessary and appropriate in order to promote, foster,

and maintain an orderly flow of such supply in interstate and foreign

commerce (7 U. S. C. 1351 (c) ).

NATIONAL ACREAGE ALLOTMENT

SEC. 352. The national acreage allotment of rice for any calendar

year shall be that acreage which the Secretary determines will, on the

basis of the national average yield of rice for the five calendar years

immediately preceding the calendar year for which such national

average yield is determined, produce an amount of rice adequate,

together with the estimated carry-over from the marketing year ending

in such calendar year, to make available a supply fOí the marketing

year commencing in such calendar year not less than the normal supply. Such national.acreage allotment shall be proclaimed not later

than December 31 of each year (7 U. S. C. 1352).

APPORTIONMENT OP NATIONAL ACREAGE ALLOTMENT

SEC. 353. (a) The national acreage allotment of rice for each calendar year, less a reserve of not to exceed 1 per centum thereof for

apportionment by the Secretary as provided in this subsection, shall

be apportioned by the Secretary among the several States in which

rice is produced in proportion to the average number of acres of rice

in each State during the 5-year period immediately preceding the

calendar year for which such national acreage allotment of rice is

determined (plus, in applicable years, the acreage diverted under

previous agricultural adjustment and conservation programs) with

adjustments for trends in acreage during the applicable period. The

Secretary shall provide for the apportionment of the reserve acreage

set aside pursuant to this subsection to farms receiving allotments

which are inadequate because of an insufficient State or county acreage
58 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

allotment or because rice was not planted on the farm during all of the

preceding five years. Notwithstanding the foregoing provisions of

this subsection, the reserve acreage set aside for the 1950 crop pursuant

to this subsection shall not exceed i/^ of 1 per centum and shall be in

addition to the 1950 national acreage allotment as heretofore proclaimed by the Secretary and apportioned by him among the several

rice-producing States and shall be available for apportionment to new

farms without regard to the limitation contained in subsection (b)

of this section (7 Ü. S. C. 1353 (a) ).

(b) The State acreage allotment shall be apportioned to farms

owned or operated by persons who have produced rice in any one of

the five calendar years immediately preceding the year for which such

apportionment is made on the basis of past production of rice by the

producer on the farm taking into consideration the acreage allotments

previously established for such owners or operators; abnormal conditions affecting acreage; land, labor, and equipment available for the

production of rice; crop rotation practices; and the soil and other

physical factors affecting the production of rice: Provided^ That if

the State committee recommends such action and the Secretary determines that such action will facilitate the effective administration of

the Act, he may provide for the apportionment of the State acreage

allotment to farms on which rice has been produced during any one of

such period of years on the basis of the foregoing factors, using past

production of rice on the farm and the acreage allotments previously

established for the farm in lieu of past production of rice by the producer and the acreage allotments previously established for such

owners or operators. Not more than 3 per centum of the State acreage

allotment shall be apportioned among farms operated by persons who

will produce rice during the calendar year for which the allotment is

made but who have not produced rice in any one of the past 5 years,

on the basis of the applicable apportionment factors set forth herein :

Provided^ That in any State in which allotments are established for

farms on the basis of past production of rice on the farm such percentage of the State acreage allotment shall be apportioned among the

farms on which rice is to be planted during the calendar year for which

the apportionment is made but on which rice was not planted during

any of the past 5 years, on the basis of the applicable apportionment

factors set forth herein (7 U. S. C. 1353 (b) ).

(c) Notwithstanding any other provisions of this Act—

(1) If farm acreage allotments are established by using past

production of rice on the farm and the acreage allotments previously established for the farm in lieu of past production of rice

by the producer and the acreage allotments previously established

for owners or operators, the State acreage allotment shall be apportioned among counties in the State on the same basis as the

national acreage allotment is apportioned among the States and

the county acreage allotments shall be apportioned to farms on

the basis of the applicable factors set forth in subsection (b) of

this section : Provided^ That the State committee may reserve not

to exceed 5 per centum of the State allotment, which shall be used

to make adjustments in county allotments for trends in acreage

and for abnormal conditions affecting plantings ;
AGRICULTURAL ADJUSTMENT ACT OF 193a, AÖ AMENDED 59

(2) Any acreage planted to rice in excess of the farm acreage

allotment shall not be taken into account in establishing State,

county, and farm acreage allotments (7 U. S, C. 1353 (c)).

(d) The provisions of this part shall not apply to nonirrigated rice

produced on any farm on which the acreage planted to nonirrigated

rice does not exceed three acres or to rice produced outside the continental united States (7 Ü. S. C. 1353 (d) ).

MARKETING QUOTAS

SEC. 354. (a) Whenever in any calendar year the Secretary determines that the total supply of rice for the marketing year beginning

in such calendar year will exceed the normal supply for such marketing

year by more than 10 per centum, the Secretary shall not later than

December 31 of such calendar year proclaim such fact and marketing

quotas shall be in effect for the crop of rice produced in the next

calendar year (7 U. S. C. 1354 (a)).

(b) Within 30 days after the date of the issuance of the proclamation specified in subsection (a) of this section, the Secretary shall

conduct a referendum by secret ballot of farmers engaged in the

production of the immediately preceding crop of rice to determine

whether such farmers are in favor of or opposed to such quotas. If

more than one-third of the farmers voting m the referendum oppose

such quotas the Secretary shall, prior to the 15th day of February,

proclaim the result of the referendum and such quotas shall become

ineffective (7 U. S. C. 1354 (b)).

AMOUNT OF FARM MARKETING QUOTA

SEC. 355. The farm marketing quota for any crop of rice shall be the

actual production of rice on the farm less the normal production of

the acreage planted to rice on the farm in excess of the farm acreage

allotment. The normal production from such excess acreage shall be

known as the "farm marketing excess": Provided^ That the farm

marketing excess shall not be larger that the amount by which the

actual production of rice on the farm exceeds the normal production

of the farm acreage allotment if the producer establishes such actual

production to the satisfaction of the Secretary (7 U. S. C. 1355).

PENALTIES AND STORAGE

SEC. 356. (a) Whenever farm marketing quotas are in effect with

respect to any crop of rice, the producer shall be subject to a penalty

on the farm marketing excess at a rate per pound equal to 50 per

centum of the parity price per pound for rice as of June 15 of the

calendar year in which such crop is produced (7 U. S. C. 1356 (a) ).

(b) The farm marketing excess of rice shall be regarded as available for marketing and the amount of penalty shall be computed

upon the normal production of the acreage on the farm planted to

rice in excess of the farm acreage allotment. If a downward adjustment in the amount of the farm marketing excess is made pursuant

to the proviso in section 355, the difference between the amount of the

penalty computed upon the farm marketing excess before such adjust-
60 ÁGRICULTÜRÁt AtJÜSTMENt ACT Óí^ lÔ3 8, AS AMENDÊO

ment and as computed upon the adjusted marketing excess shall

be returned to or allowed the producer (7 U. S. C. 1356 (b) ).

(c) The person liable for payment or collection of the penalty shall

be liable also for interest thereon at the rate of 6 per centum per

annum from the date the penalty becomes due until the date of

payment of such penalty (7 IT. S. C. 1356 (c) ).

(d) Until the penalty on the farm marketing excess is paid, postponed, or avoided, as provided herein, all rice produced on the farm

and naarketed by the producer shall be subject to the penalty provided

by this section and a lien on the entire crop of rice produced on the

farm shall be in effect in favor of the United States (7 U. S. C.

1356 (d)).

(e) The penalty on the farm marketing excess on any crop of rice

may be avoided or postponed by storage or by disposing of the commodity in such other manner, not inconsistent with the purposes of

this Act, as the Secretary shall prescribe, including, in the discretion

of the Secretary, delivery to Commodity Credit Corporation or any

other agency within the Department. The Secretary shall issue regulations governing such storage or other disposition. Unless otherwise

specified by the Secretary in such regulations, any quantity of rice so

stored or otherwise disposed of shall be of those types and grades which

are representative of the entire quantity of rice produced on the farm.

Upon failure so to store or otherwise dispose of the farm marketing

excess of rice within such time as may be determined under regulations

prescribed by the Secretary, the penalty on such excess shall become

due and payable. Any rice delivered to any agency of the Department pursuant to this subsection shall become the property of the

agency to which delivered and shall be disposed of at the direction of

the Secretary in a manner not inconsistent with the purposes of this

Act (7 U.S. C. 1356(e) )._

(f) Subject to the provisions of subsection (g) of this section, the

penalty upon the farm marketing excess stored pursuantto this section

shall be paid by the producer at the time and to the extent of any depletion in the amount so stored except depletion resulting from some

cause beyond the control of the producer or from substitution of the

commodity authorized by the Secretary (7 U. S. C. 1356 (f) ).

(g) (1) If the planted acreage of the then current crop of rice for

any farm is less than the farm acreage allotment, the amount of the

commodity from any previous crop of rice stored to postpone or avoid

payment of the penalty shall be reduced by an amount equal to the

normal production of the number of acres by which the farm acreage

allotment exceeds the acreage planted to rice.

(2) If the actual production of the acreage of rice on any farm on

which the acreage of rice is within the farm acreage allotment is less

than the normal production of the farm acreage allotment, the amount

of rice from any previous crop stored to postpone or avoid payment

of the penalty shall be reduced by an amount which, together with the

actual production of the then current crop will equal the normal production of the farm acreage allotment: Provided^ That the reduction

under this paragraph shall not exceed the amount by which the normal

production of the farm acreage allotment less any reduction made

under paragraph (1) of this subsection is in excess of the actual production of the acreage planted to rice on the farm (7 U. S. C.

1356 (g)).
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 61

PART VI—MARKETING QUOTAS—PEANUTS

LEGISLATIVE FINDINGS

SEC. 357. The production, marketing, and processing of peanuts

and peanut products employs a large number of persons and is of

national interest. The movement of peanuts from producer to consumer is preponderantly in interstate and foreign commerce, and,

owing to causes beyond their control, the farmers producing such commodity and the persons engaged in the marketing and processing

thereof are unable to regulate effectively the orderly marketing of

the commodity. As the quantity of peanuts marketed in the channels

of interstate and foreign commerce increases above the quantity of

peanuts needed for cleaning and shelling, the prices at which all

peanuts are mairketed are depressed to low levels. These low prices

tend to cause the quantity of peanuts available for marketing in later

years to be less than normal, which in turn tends to cause relatively

high prices. This fluctuation of prices and marketings of peanuts

creates an unstable and chaotic condition in the marketing of peanuts

for cleaning and shelling and for crushing for oil in the channels of

interstate and foreign commerce. Since these unstable and chaotic

conditions have existed for a period of years and are likely, without

proper regulation, to continue to exist, itis imperative that the marketing of peanuts for cleaning and shelling and for crushing for oil in

interstate and foreign commerce be regulated in order to protect producers, handlers, processors, and consumers (7 U. S. C. 1357).

MARKETING QUOTAS

SEC. 358. (a) Between July 1 and December 1 of each calendar year

the Secretary shall proclaim the amount of the national marketing

quota for peanuts for the crop produced in the next succeeding calendar year in terms of the total quantity of peanuts which will make

available for marketing a supply of peanuts from the crop with respect to which the quota is proclaimed equal to the average quantity

of peanuts harvested for nuts during the 5 years immediately preceding the year in which such quota is proclaimed, adjusted for current trends and prospective demand conditions, and the quota so proclaimed shall be in effect with respect to such crop. The national

marketing quota for peanuts for any year shall be converted to a national acreage allotment by dividing such quota by the normal yield

per acre of peanuts for the United States determined by the Secretary

on the basis of the average yield per acre of peanuts in the 5 years

preceding the year in which the quota is proclaimed, with such adjustments as may be found necessary to correct for trends in yields and

for abnormal conditions of production affecting yields in such 5 years :

Provided^ That the national marketing quota established for the crop

produced in the calendar year 1941 shall be a quantity of peanuts

sufficient to provide a national acreage allotment of not less than

1,610,000 acres, and that the national marketing quota established for

any subsequent year shall be a quantity of peanuts sufficient to provide

a national acreage allotment of not less than that established for the

crop produced in the calendar year 1941 (7 U. S. C. 1358 (a) ).

(b) Not later than December 15 of each calendar year the Secretary

shall conduct a referendum of farmers engaged in the production of
62 AGRICULTURAL ADJUSTMENT ACT OF 1938^ AS AMENDED

peanuts in the calendar year in which the referendum is held to determine whether such farmers are in favor of or opposed to marketing

quotas with respect to the crops of peanuts produced in the three calendar years immediately following the year in which the referendum

is held, except that, if as many as two-thirds of the farmers voting

in any referendum vote in favor of marketing quotas, no referendum

shall be held with respect to quotas for the second and third years of

the period. The Secretary shall proclaim the results of the referendum within 30 days after the date on which it is held, and, if more than

one-third of the farmers voting in the referendum vote against marketing quotas, the Secretary also shall proclaim that marketing quotas

will not be in effect with respect to the crop of peanuts produced in the

calendar year immediately following the calendar year in which the

referendum is held (7 U. S. C. 1358 (b) ).

(c) (1) The national acreage allotment for 1951, less the acreage

to be allotted to new farms under subsection (f) of this section, shall

be apportioned among the States on the basis of the larger of the following for each State: (a) The acreage allotted to the State as its

share of the 1950 national acreage allotment of 2,100,000 acres, or (b)

the State's share of 2,100,000 acres apportioned to States on the basis

of the average acreage harvested for nuts in each State in the 5 years

1945'-49 : Provided^ That any allotment so determined for any State

which is less than the 1951 State allotment announced by the Secretary

prior to the enactment of this Act shall be increased to such announced

allotment and the acreage required for such increases shall be in addition to the 1951 national acreage allotment and shall be considered in

determining State acreage allotments in future years. For any year

subsequent to 1951, the national acreage allotment for that year, less

the acreage to be allotted to new farms under subsection (f) of this

section, shall be apportioned among the States on the basis of their

share of the national acreage allotment for the most recent year in

which such apportionment was made.

(2) Notwithstanding any other provision of law, if the Secretary

of Agriculture determines, on the basis of the average yield per

acre of peanuts by types during the j)receding 5 years, adjusted for

trends in yields and abnormal conditions of production affecting

yields in such 5 years, that the supply of any type or types of peanuts

for any marketing year, beginning with the 1951-52 marketing year,

will be insufficient to meet the estimated demand for cleaning and

shelling purposes at prices at which the Commodity Credit Corporation may sell for such purposes peanuts owned or controlled by it,

the State allotments for those States producing such type or types

of peanuts shall be increased to the extent determined by the Secretary

to be required to meet such demand but the allotment for any State

may not be increased under this provision above the 1947 harvested

acreage of peanuts for such State. The total increase so determined

shall be apportioned among such States for distribution among farms

producing peanuts of such type or types on the basis of the average

acreage of peanuts of such type or types in the 3 years immediately

preceding the year for which the allotments are being determined.

The additional acreage so required shall be in addition to the national

acreage allotment, the production from such acreage shall be in addition to the national marketing quota, and the increase in acreage
AGRICULTURAL ADJUSTMENT ACT OF lÔâS, AS AMENDED 63

allotted under this provision shall not be considered in establishing

future State, county, or farm acreage allotments (7 U. S. C. 1358 (c) ).

(d) The Secretary shall provide for apportionment of the State

acreage allotment for any State through local committees among

farms on which peanuts were grown in any of the 3 years immediately

preceding the year for which such allotment is determined. The State

acreage allotment for 1952 and any subsequent year shall be apportioned among farms on which peanuts were produced in any one of

the 3 calendar years immediately preceding the year for which such

apportionment is made, on the basis of the following: Past acreage of

peanuts, taking into consideration the acreage allotments previously

established for the farm ; abnormal conditions affecting acreage; land,

labor, and equipment available for the production of peanuts; croprotation practices ; and soil and other physical factors affecting the

production of peanuts. Any acreage of peanuts harvested in excess

of the allotted acreage for any farm for any year shall not be considered in the establishment of the allotment for the farm in succeeding

years. The amount of the marketing quota for each farm shall be the

actual production of the farm acreage allotment, and no peanuts shall

be marketed under the quota for any farm other than peanuts actually

produced on the farm (7 U. S. C. 1358 (d) ).

[PUBLIC LAW 12, Seventy-ninth Congress.—* * * in establishing acreage allotments under subtitle B of title III of the Agricultural Adjustment Act of 1938, as amended, or under the Soil Conservation and Domestic Allotment Act, as amended, the Secretary of

Agriculture, under regulations prescribed by him, may provide that

for any crop year (beginning with the crop year 1945) during the

present emergency [terminated July 25,1947, 61 Stat. 451] any farm,

with respect to which a cotton, wheat, or peanut allotment was established for the 1942 crop, shall be regarded as a farm on which cotton,

wheat, or peanuts, as the case may be, were planted and grown, if the

Secretary determines that, with respect to cotton or wheat, because of

the production of war crops designated by him on such farm, or, with

respect to cotton, wheat, or peanuts, because the owner or operator

was serving in the armed forces of the United States, the cotton,

wheat, or peanut production history of the farm for such year is not

representative of the normal history of the farm.

The Secretary may also provide with respect to any such farm that

the past acreage of peanuts shall be adjusted upward to the extent that

the acreage used for growing peanuts on such farm in such year is

below the normal history of the farm (February 28,1945, 59 Stat. 9).]

(e) Notwithstanding the foregoing provisions of this section, the

Secretary may, if the State committee recommends such action and

the Secretary determines that such action will facilitate the effective

administration of the provisions of the Act, provide for the apportionment of the State acreage allotment for 1952 and any subsequent

year among the counties in the State on the basis of the past acreage

of peanuts harvested for nuts (excluding acreage in excess of farm

allotments) in the county during the 5 years immediately preceding

the year in which such apportionment is made, with such adjustments

as are deemed necessary for abnormal conditions affecting acreage, for

trends in acreage, and for additional allotments for types of peanuts

in short supply under the provisions of subsection (c). The county
64 AGRICULTURAL ADJUSTMENT ACT OF 1938/ AS AMENDED

acreage allotment shall be apportioned among farms on the basis of

the factors set forth in subsection (d) of this section (7 U. S. C. 1358

(e)).

(i) Not more than 1 per centum of the national acreage allotment

shall be apportioned among farms on which peanuts are to be produced during the calendar year for which the allotment is made but

on which peanuts were not produced during any one of the past 3

years, on the basis of the following: Past peanut-producing experience by the producers; land, labor, and equipment available for the

production of peanuts; crop-rotation practices; and soil and other

physical factors affecting the production of peanuts (7 U, S. C. 1358

(g) Any part of the acreage allotted to individual farms under

the provisions of this section on which peanuts will not be produced

and which is voluntarily surrendered to the county committee shall

be deducted from the allotments to such farms and may be reapportioned by the county committee to other farms in the same county

receiving allotments, in amounts determined by the county committee

to be fair and reasonable on the basis of land, labor, and equipment

available for the production of peanuts, crop-rotation practices, and

soil and other physical factors affecting the production of peanuts.

Any transfer of allotments under this provision shall not operate to

reduce the allotment for any subsequent year for the farm from which

acreage is transferred, except as the farm becomes ineligible for an

allotment by failure to produce peanuts during a 3-year period, and

any such transfer shall not operate to increase the allotment for any

subsequent year for the farm to which the acreage is transferred:

Provided^ That, notwithstanding any other provisions of this Act,

any part of any farm acreage allotment may be permanently released

in writing to the county committee by the owner and operator of the

farm, and reapportioned as provided herein (7 U. S. C. 1358 (g) ).

(h) Notwithstanding any other provision of this section, the allotment determined or which would have been determined for any land

which is removed from agricultural production in 1950 or any subsequent year for any purpose because of acquisition by any Federal,

State, or other agency having a right of eminent domain shall be

placed in a pool and shall be available for use in providing equitable

allotments for farms owned or acquired by owners displaced because

of acquisition of their farms by such agencies. Upon application to

the county committee, within 5 years from the date of such acquisition

of the farm, any owner so displaced shall be entitled to have an allotment for any other farm owned or acquired by him equal to an allotment which would have been determined for such other farm plus the

allotment which would have been determined for the farm so acquired :

Provided^ That such allotment shall not exceed 50 per centum of the

acreage of cropland on the farm.

The provisions of this section shall not be applicable if (a) there is

any marketing quota penalty due with respect to the marketing of

peanuts from the farm acquired by the Federal, State, or other agency

or by the owner of the farm; (b) any peanuts produced on such farm

have not been accounted for as required by the Secretary; or (c) the

allotment next established for the farm acquired by the Federal, State,

or other agency would have been reduced because of false or improper
to

AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 65

identification of peanuts produced on or marketed from such farm

(7U.S.C.1358 (h)).

MARKETING PENALTIES

SEC. 359. (a) The marketing of any peanuts in excess of the marketing quota for the farm on which such peanuts are produced, or

the marketing of peanuts from any farm for which no acreage allotment was determined, shall be subject to a penalty at a rate equal to

50 per centum of the basic rate of the loan (calculated to the nearest

tenth of a cent) for farm marketing quota peanuts for the marketing

year August 1-July 31. Such penalty shall be paid by the person

who buys or otherwise acquires the peanuts from the producer, or, if

the peanuts are marketed by the producer through an agent, the

penalty shall be paid by such agent, and such person or agent may

deduct an amount equivalent to the penalty from the price paid to

the producer. The Secretary may require collection of the penalty

upon a portion of each lot of peanuts marketed from the farm equal

to the proportion which the acreage of peanuts in excess of the farmacreage allotment is of the total acreage of peanuts on the farm. If

the person required to collect the penalty fails to collect such penalty,

such person and all persons entitled to share in the peanuts marketed

from the farm or the proceeds thereof shall be jointly and severally

liable for the amount of the penalty. All funds collected pursuant

to this section shall be deposited in a special deposit account with the

'treasurer of the United States and such amounts as are determined,

accordance with regulations prescribed by the Secretary, to be

•enalties incurred shall be transferred to the general fund of the

Treasury of the United States. Amounts collected in excess of determined penalties shall be paid to such producers as the Secretary determines, in accordance with regulations prescribed by him, bore the

burden of the payment of the amount collected. Such special account

shall be administered by the Secretary and the basis for, the amount

of, and the producer entitled to receive a payment from such account,

when determined in accordance with regulations prescribed by the

Secretary, shall be final and conclusive. Peanuts produced in a calendar year in which marketing quotas are in effect for the marketing

year beginning therein shall be subject to such quotas even though the

peanuts are marketed prior to the date on which such marketing year

begins. ^ If any producer falsely identifies or fails to account for the

disposition of any peanuts, an amount of peanuts equal to the normal

yield of the number of acres harvested in excess of the farm acreage

allotment shall be deemed to have been marketed in excess of the marketing quota for the farm, and the penalty in respect thereof shall

be paid and remitted by the producer. If any amount of peanuts

produced on one farm is falsely identified by a representation that

such peanuts were produced on another farm, the acreage allotments

next established for both such farms shall be reduced by that percentage which such amount was of the respective farm marketing quotas,

except that such reduction for any such farm shall not be made if the

Secretary through the local committees finds that no person connected with such farm caused, aided, or acquiesced in such marketing ;

and if proof of the disposition of any amount of peanuts is not furnished as required by the Secretary, the acreage allotment next established for the farm on which such peanuts are produced shall be
66 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

reduced by a percentage similarly computed. Notwithstanding any

other provisions of this title, no refund of any penalty shall be made

because of peanuts kept on the farm for seed or for home consumption

(7U. S. C. 1359 (a)).

(b) The provisions of this part shall not apply to peanuts produced

on any farm on which the acreage harvested for nuts is one acre or

less (7 U.S. C. 1359 (b)).

(c) The word "peanuts" for the purposes of this Act shall mean

all peanuts produced, excluding any peanuts which it is established

by the producer or otherwise, in accordance with regulations of the

Secretary, were not picked or threshed either before or after marketing from the farm (7 Ü. S. C. 1359 (c) ).

(d) (Repealed by 62 Stat. 1247.)

(e) (Repealed by 62 Stat. 1247.)

[Subsections (f), (g), (h), and (i) of this section w^ere repealed

by Public Law 285, Eighty-second Congress, approved March 28,

1952 (66 Stat. 27), effective beginning with the 1952 crop of peanuts.

These subsections read as follows :

[(f) The provisions of this section shall not apply to nor interfere

with the inauguration or the operation of any program approved by

the Secretary pursuant to authority contained in existing law designed to establish new uses for peanuts and peanut products or

expand markets for peanuts and peanut products (7 U. S. C. 1359

[(g) If the total acreage of peanuts picked or threshed on t]fe

farm does not exceed the total acreage of peanuts picked or threshe¿

on the farm in 1947 or 1948, if no peanuts were harvested on the farm

in 1947, payment of the marketing penalty as provided in subsection

(a) will not be required on any excess peanuts which are delivered

to or marketed through an agency or agencies designated each year

by the Secretary. Any peanuts received under this subsection by

such agency shall be sold by such agency (i) for crushing for oil

under a sales agreement approved by the Secretary; (ii) for cleaning

and shelling at prices not less than those established for quota peanuts

under any peanut diversion, peanut loan, or peanut purchase program ;

or (iii) for seed at prices established by the Secretary. For all

peanuts so delivered to a designated agency under this subsection, producers shall be paid for the portion of the lot constituting excess

peanuts, the prevailing market value thereof for crushing for oil

(but not more than the price received by such agency from the sale

of such peanuts), less the estimated cost of storing, handling, and

selling such peanuts: Provided^ That if the Secretary determines

that the supply of any type of peanuts is insufficient to meet the demand for cleaning and shelling purposes at prices at which the Commodity Credit Corporation may sell peanuts owned or controlled by

it for such purposes, the Secretary shall permit the sale, for cleaning

and shelling, of the excess peanuts of such type so delivered. Such

sales shall be in quantities necessary to meet such demand and at

prices not less than those at which the Commodity Credit Corporation

may sell peanuts owned or controlled by it for cleaning and shelling.

The proceeds received from the sale of such peanuts of such type for

cleaning and shelling shall, after deduction of the price paid to producers and other costs incurred in connection therewith, including

estimated cost of proration, be prorated proportionately among all
AGRICULTURAL ADJUSTMENT ACT OF 1Ô3S, AS AMENDED 67

of the producers delivering excess peanuts of such type to designated

agencies under this section. As an alternative to designated agencies

paying the prevailing oil value for such excess peanuts of any type

in insufficient supply and the subsequent distribution of sales proceeds

therefrom in accordance with the foregoing provisions of this subsection, the Secretary may also authorize peanut buyers approved pursuant to regulations of the Secretary to purchase such peanuts from

producers at prices not less than those at which such peanuts may

be sold for cleaning and shelling by the Commodity Credit Corporation. In the event of such authorization by the Secretary, producers

shall have the option of either delivering such peanuts to designated

^^^encies or selling such peanuts to approved peanut buyers, and such

r^fes to approved buyers shall have the same effect, with respect to

¿^idance of the marketing penalty and classification of producers

as cooperators, as deliveries to designated agencies. Any person who,

pursuant to the provisions of this subsection, acquires peanuts for

crushing for oil and who uses or disposes of such peanuts for any

purpose other than that for which acquired shall pay a penalty to

the United States, at a rate equal to the marketing penalty prescribed

in subsection (a), upon the peanuts so used or disposed of and shall be

guilty of a misdemeanor and upon conviction thereof shall be fined

not more than $1,000 or imprisoned for not more than 1 year, or

both, for each and every offense. Operations under this subsection

shall be carried on under regulations prescribed by the Secretary

(7 U.S.C. 1359(g)).

[(h) For the purposes of price support with respect to the 1950 and

subsequent crops of peanuts, a "cooperator" shall be (1) a producer on

whose farm the acreage of peanuts picked or threshed does not exceed

the farm acreage allotment or (2) a producer on whose farm the

acreage of peanuts picked or threshed exceeds the farm acreage allotment provided any peanuts picked or threshed in excess of the farm

marketing quota are delivered to or marketed through an agency or

agencies designated by the Secretary without penalty in accordance

with the provisions of subsection (g) and regulations prescribed by the

Secretary (7 U. S. C. 1359 (h) ),

[(i) The provisions of subsections (g) and (h) of this section shall

not apply with respect to any crop when marketing quotas are in effect

on the corresponding crop for soybeans (7 Ü. S. C. 1359 (i) ).]

SUBTITLE C—ADMINISTRATIVE PROVISIONS

PART I—PUBLICATION AND REVIEW OF QUOTAS

APPLICATION OF PA^IT

SEC. 361. This Partshall apply to the publication and review of farm

marketing quotas established for tobacco, corn, wheat, cotton, peanuts,

and rice, established under subtitle B (7 U. S. C. 1361).

PUBLICATION AND NOTICE OF QUOTA

SEC. 362. All acreage allotments, and the farm marketing quotas

established for farms in a county or other local administrative area

shall, in accordance with regulations of the Secretary, be made and

kept freely available for public inspection in such county or other local

administrative area. An additional copy of this information shall be
68 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

kept available in the office of the county agricultural extension agent or

with the chairman of the local committee. Notice of the farm marketing quota of his farm shall be mailed to the farmer. Notice of the

farm acreage allotment established for each farm shown by the records

of the county committee to be entitled to such allotment shall insofar as

practicable be mailed to the farm operator in sufficient time to be

received prior to the date of the referendum (7 Ü. S. C. 1362).

REVIEW BY REVIEW COMMITTEE

SEC. 363. Any farmer who is dissatisfied with his farm marketing

quota may, within 15 days after mailing to him of notice as provided in

section 362, have such quota reviewed by a local review committee cojgr

posed of three farmers from the same or nearby counties appointed by,

the Secretary. Such committee shall not include any member of the

local committee w^hich determined the farm acreage allotment, the

normal yield, or the farm marketing quota for sucli farm. Unless

application for review is made within such period, the original determination of the farm marketing quota shall be final (7 U. S. C. 1363).

REVIEW COMMITTEE

SEC. 364. The members of the review committee shall receive as compensation for their services the same per diem as that received by the

members of the committee utilized for the purposes of thc/Soil Conservation and Domestic Allotment Act, as amended. The members of the

review committee shall not be entitled to receive compensation for more

than 30 days in any 1 year (7 U. S. C. 1364).

INSTITUTION OF PROCEEDINGS

SEC. 365. If the farmer is dissatisfied with the determination of the

review committee, he may, within 15 days after a notice of such determination is mailed to him by registered mail, file a bill in equity against

the review committee as defendant in the United States district court,

or institute proceedings for review in any court of record of the State

having general jurisdiction, sitting in the county or the district in

which his farm is located, for the purpose of obtaining a review of

such determination. Bond shall be given in an amount and with

surety satisfactory to the court to secure the United States for the

costs of the proceeding. The bill of complaint in such proceeding may

be served by delivering a copy thereof to any one of the members of

the review committee. Thereupon the review committee shall certify

and file in the court a transcript of the record upon which the determination complained of was made, together with its findings of fact

(7U.S. G. 1365).

COURT REVIEW

SEC. 366. The review by the court shall be limited to questions of

law, and the findings of fact by the review committee, if supported

by evidence, shall be conclusive. If application is made to the court

for leave to adduce additional evidence, and it is shown to the satisfaction of the court that such additional evidence is material and that

there were reasonable grounds for failure to adduce such evidence in

the hearing before the review committee, the court may direct such

additional evidence to be taken before the review committee in such
AGRICULTURAL ADJUSTMENT ACT OF 193 8^ AS AMENDED 69

manner and upon such terms and conditions as to the court may seem

proper. The review committee may modify its findings of fact or its

determination by reason of the additional evidence so taken, and it

shall file with the court such modified findings or determination, which

findings of fact shall be conclusive. At the earliest convenient time,

the court, in term time or vacation, shall hear and determine the case

upon the original record of the hearing before the review committee,

and upon such record as supplemented, if supplemented, by further

hearing before the review committtee pursuant to direction of the

court. The court shall affirm the review committee's determination,

or modified determination, if the court determines that the same is in

accordance with law. Ifthe court determines that such determination

or modified determination is not in accordance with law, the court

shall remand the proceeding to the review committee with direction

either to make such determination as the court shall determine to be

in accordance with law or to take such further proceedings as/in the

court's opinion, the law requires (7 U. S. C. 1366).

STAY OF PROCEEDINGS AND EXCLUSIVE JURISDICTION

SEC. 367. The commencement of judicial proceedings under this

Part shall not, unless specifically ordered by the court, operate as a

stay of the review committee's determination. Notwithstanding any

other provision of law, the jurisdiction conferred by this Part to

review the legal validity of a determination made by a review committee pursuantto this Part shall be exclusive. No court of the United

States or of any State shall have jurisdiction to pass upon the

legal validity of any such determination except in a proceeding under

thispart(7"Ü.S.C.1367).

NO EFFECT ON OTHER QUOTAS

SEC. 368. Notwithstanding any increase of any farm marketing

quota for any farm as a result of review of the determination thereof

under this Part, the marketing quotas for other farms shall not be

affected (7 U. S. C. 1368).

PART II—ADJUSTMENT OF QUOTAS AND ENFORCEMENT

GENERAL ADJUSTMENTS OF QUOTAS

SEC. 371. (a) If at any time the Secretary has reason to believe

that in the case of corn, wheat, cotton, rice, peanuts, or tobacco the

operation of farm marketing quotas in effect will cause the amount of

such commodity which is free of marketing restrictions to be less than

the normal supply for the marketing year for the commodity then

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

respect thereto. In the course of such investigation due notice and

opportunity for hearing shall be given to interested persons. If

upon the basis of such investigation the Secretary finds the existence

of such fact, he shall proclaim the same forthwith. He shall also in

such proclamation specifiy such increase in, or termination of, existing

quotas as he finds, on the basis of such investigation, is necessary^ to

make the amount of such commodity which is free of marketing

restrictions equal the normal supply (7 U. S. 0. 1371 (a) ).
70 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

(b) If the Secretary has reason to believe that, because of a national

emergency or because of a material increase in export demand, any

national marketing quota for corn, wheat, cotton, rice, peanuts, or

tobacco should be increased or terminated, he shall cause an immediate

investigation to be made to determine whether the increase or termination is necessary in order to effectuate the declared policy of this Act

or to meet such emergency or increase in export demand. If, on the

basis of such investigation, the Secretary finds that such increase or

termination is necessary, he shall immediately proclaim such finding

(and if he finds an increase is necessary, the amount of the increase

found by him to be necessary) and thereupon such quota shall be

increased, or shall terminate, as the case may be (7 Ü. S. C. 1371 (b) ).

(c) In case any national marketing quota for any commodity is

increased under this section, each farm marketing quota for the commodity shall be increased in the same ratio (7 U. S. C. 1371 (c) ).

(d) In the case of corn, whenever such proclamation specifies an

increase in marketing quotas, the storage amounts applicable to corn

shall be adjusted downward to the amount which would have been

required to be stored if such increased marketing quotas had been in

effect. Whenever in the case of corn, such proclamation provides for

termination of marketing quotas, storage under seal shall no longer

be required (7 U. S. C. 1371 (d) ).

PAYMENT AND COLLECTION OF PENALTIES

SEC. 372. (a) The penalty with respect to the marketing, by sale, of

wheat, cotton, or rice, if the sale is to any person within the United

States, shall be collected by the buyer (7 U. S. C. 1372 (a) ).

(b) All penalties provided for in Subtitle B shall be collected and

paid in such manner, at such times, and under such conditions as the

Secretary may by regulations prescribe. Such penalties shall be

remitted to the Secretary by the person liable for the penalty, except

that if any other person is liable for the collection of the penalty, such

other person shall remit the penalty. The amount of such penalties

shall be covered into the general fund of the Treasury of the United

States (7 Ü.S.C. 1372(b)).

(c) Whenever, pursuant to a claim filed with the Secretary within

2 years after payment to him of any penalty collected from any person

pursuant to this Act, the Secretary finds that such penalty was erroneously, illegally, or wrongfully collected and the claimant bore the

burden of the payment of such penalty, the Secretary shall certify to

the Secretary of the Treasury for payment to the claimant, in accordance with regulations prescribed by the Secretary of the Treasury,

such amount as the Secretary finds the claimant is entitled to receive

as a refund of such penalty.

Notwithstanding any other provision of law, the Secretary is authorized to prescribe by regulations for the identification of farms and it

shall be sufficient to schedule receipts into special deposit accounts or to

schedule such receipts for transfer therefrom, or directly, into the

separate fund provided for in subsection (b) hereof by means of such

identification without reference to the names of the producers on such

farms.

The Secretary is authorized to prescribe regulations governing the

filing of such claims and the determination of such refunds (7 U. S. C.

1372(c)).
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 71

(d) No penalty sliall be collected under this Act with respect to the

marketing of any agricultural commodity grown for experimental

purposes only by any publicly owned agricultural experiment station

(7U.S.ai372 (d)).

REPORTS AND RECORDS

SEC. 3Y3. (a) This subsection shall apply to warehousemen, processors, and common carriers of corn, wheat, cotton, rice, peanuts, or

tobacco, and all ginners of cotton, all persons engaged in the business

of purchasing corn, wheat, cotton, rice, peanuts, or tobacco from producers, all persons engaged in the business of redrying, prizing, or

stemming tobacco for producers, all brokers and dealers in peanuts,

all agents marketing peanuts for producers, or acquiring peanuts for

buyers and dealers, and all peanut growers' cooperative associations,

all persons engaged in the business of cleaning, shelling, crushing, and

salting of peanuts and the manufacture of peanut products, and all

persons owning or operating peanut-picking or peanut-threshing machines. Any such person shall, from time to time on request of the

Secretary, report to the Secretary such information and keep such

records as the Secretary finds to be necessary to enable him to carry

out the provisions of this title. Such information shall be reported

and such records shall be kept in accordance with forms which the

Secretary shall prescribe. For the purpose of ascertaining the correctness of any report made or record kept, or of obtaining information required to be furnished in any report, but not so furnished, the

Secretary is hereby authorized to examine such books^ papers, records,

accounts, correspondence, contracts, documents, and memoranda as he

has reason to believe are relevant and are within the control of such

person. Any such person failing to make any report or keep any

record as required by this subsection or making any false report or

record shall be deemed guilty of a misdemeanor and upon conviction

thereof shall be subject to a fine of not more than $500 ; and any tobacco warehouseman or dealer who fails to remedy such violation by

making a complete and accurate report or keeping a complete and

accurate record as required by this subsection within fifteen days after

notice to him of such violation shall be subject to an additional fine of

$100 for each ten thousand pounds of tobacco, or fraction thereof,

bought or sold by him after the date of such violation : Provided^

That such fine shall not exceed $5,000 ; and notice of such violation

shall be served upon the tobacco warehouseman or dealer by mailing

the same to him by registered mail or by posting the same at any established place of business operated by him, or both (7 U. S. C.

1373(a)).

(b) Farmers engaged in the production of corn, wheat, cotton, rice,

peanuts, or tobacco for market shall furnish such proof of their acreage, ^yield, storage, and marketing of the commodity in the form of

records, marketing cards, reports, storage under seal, or otherwise

as the Secretary mav prescribe as necessary for the administration of

this title (7 U. S. C.'^1373 (b) ). ^

(c) All data reported to or acquired by the Secretary pursuant to

this section shall be kept confidential by all officers and employees of

the Department, and only such data so reported or acquired as the

224946"—52 6
72 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

Secretary deems relevant shall be disclosed by them, and then only in a

suit or administrative hearing under this title (7 U. S. C. 1373 (c) ).

MEASUREMENT OF FARMS AND REPORT OF PLANTINGS

SEC. 374. (a) The Secretary shall provide, through the county and

local committees, for measuring farms on which corn, wheat, cotton,

peanuts, or rice is produced and for ascertaining whether the acreage

planted for any year to any such commodity is in excess of the farm

acreage allotment for such commodity for the farm under this title.

If in the case of any farm the acreage planted to any such commodity

on the farm is in excess of the farm acreage allotment for such commodity for the farm, the committee shall file with the State committee

a written report stating the total acreage on the farm in cultivation

and the acreage planted to such commodity (7 U. S. C. 1374 (a) ).

(b) With respect to cotton, the Secretary, upon such terms and conditions as he may by regulation prescribe, shall provide, through the

county and local committees for the measurement prior to planting of

an acreage on the farm equal to the farm acreage allotment if so requested by the farm operator, and any farm on which the acreage

planted to cotton does not exceed such measured acreage shall be

deemed to be in compliance with the farm acreage allotment. The

Secretary shall similarly provide for the remeasurement upon request

by the farm operator of the acreage planted to cotton on the farm, but

the operator shall be required to reimburse the local committee for the

expense of such remeasurement if the planted acreage is found to be

in excess of the allotted acreage. If the acreage determined to be

planted to cotton on the farm is in excess of the farm acreage allotment, the Secretary shall by appropriate regulation provide for a

reasonable time within which such planted acreage may be adjusted

to the farm acreage allotment (7 U. S. C. 1374 (b) ).

REGULATIONS

SEC. 375. (a) The Secretary shall provide by regulations for the

identification, wherever necessary, of corn, wheat, cotton, rice, peanuts, or tobacco so as to afford aid in discovering and identifying such

amounts of the commodities as are subject to and such amounts thereof

as are not subject to marketing restrictions in effect under this title

(7U. S. C. 1375 (a)).

(b) The Secretary shall prescribe such regulations as are necessary

for the enforcement of this title (7 U. S. C. 1375 (b) ).

COURT JURISDICTION

SEC. 376. The several district courts of the United States are hereby

vested with jurisdiction specifically to enforce the provisions of this

title. If and when the Secretary shall so request, it shall be the duty

of the several district attorneys in their respective districts, under the

direction of the Attorney General, to institute proceedings to collect

the penalties provided in this title. The remedies and penalties provided for herein shall be in addition to, and not exclusive of, any of

the remedies or penalties under existing law (7 U. S. C. 1376).
AGRICULTURAL ADJUSTMENT ACT OF 1Ô3 8, AS AMENDED 73

SUBTITLE D—MISCELLANEOUS PROVISIONS AND APPROPRIATIONS

PART I—MISCELLANEOUS

COTTON PRICE ADJUSTMENT PAYMENTS

SEC. 381. (a) (Applicable only to 1937 crop of cotton.)

(b) (Applicable only to 1937 crop of cotton.)

(c) (Kepealed by 62 Stat. 1255.)

SEC. 382. (Applicable only to 1937 crop of cotton.)

INSURANCE OF COTTON AND RECONCENTRATION OF COTTON

SEC. 383. (a) The Commodity Credit Corporation shall place all

insurance of every nature taken out by it on cotton, and all renewals,

extensions, or continuations of existing insurance, with insurance

agents who are bona fide residents of and doing business in the State

where the cotton is warehoused : Provided^ That such insurance may

be secured at a cost not greater than similar insurance offered on said

cotton elsewhere (7 U. S. C. 1383 (a) ).

(b) Cotton held as security for any loan heretofore or hereafter

made or arranged for by the Commodity Credit Corporation shall not

hereafter be reconcentrated without the w^ritten consent of the producer or borrower (7 Ü. S. C. 1383 (b) ).

[PUBLIC LAW 660, Seventy-fifth Congress.—In the administration of section 383 (b) of the Agricultural Adjustment Act of 1938 the

written consent of the producer or borrower to the reconcentration of

any cotton held as security for any loan heretofore or hereafter made

or arranged for by the Commodity Credit Corporation shall not be

deemed to have been given unless such consent shall have been given

in an instrument made solely for that purpose.- Notwithstanding any

provision of any loan agreement heretofore made, no cotton held

under any such agreement as security for any such loan shall be moved

from one warehouse to another unless the written consent of the producer or borrower shall have been obtained in a separate instrument

given solely for that purpose, äs required by this Act. The giving of

written consent for the reconcentration of cotton shall not be made a

condition upon the making of any loan hereafter made or arranged

for by the Commodity Credit Corporation : Provided^ however^ That

in cas^s where there is congestion and lack of storage facilities, and

the local warehouse certifies such fact and requests the Commodity

Credit Corporation to move the cotton for reconcentration to some

other point, or when the Commodity Credit Corporation determines

such loan cotton is improperly warehoused and subject to damage,

or if uninsured, or if any of the terms of the loan agreement are violated, or if carrying charges are substantially in excess of the average

of carrying charges available elsewhere, and the local w^arehouse,

after notice, declines to reduce such charges, such written consent as

provided in this amendment need not be obtained; and consent to

movement under any of the conditions of this proviso may be required

in future loan agreements (7 U. S. C. 1383a),]
74 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

REPORT OF BENEFITS

SEC. 384. (Kepealed by 60 Stat 866.)

FINALITY OF FARMERS* PAYMENTS AND LOANS

SEC. 385. The facts constituting the basis for any Soil Conservation

Act payment, parity payment, loan, or price support operation, or

the amount thereof, when oiBcially determined in conformity with the

applicable regulations prescribed by the Secretary or by the Commodity Credit Corporation, shall be final and conclusive and shall not

be reviewable by any other officer or agency of the Government. In

case any person who is entitled to any such payment dies, becomes incompetent, or disappears before receiving such payment, or is succeeded by another who renders or completes the required performance,

the payment shall, without regard to any other provisions of law", be

made as the Secretary of Agriculture may determine to be fair and

reasonable in all the circumstances and provide by regulations (7

U. S. C. 1385).

SEC. 386. The provisions of section 3741 of the Eevised Statutes

(U. S. C, 1934 edition, title 41, sec. 22) and sections 114 and 115 of

the Criminal Code of the United States ( U. S. C, 1934 edition, title

18, sees. 204 and 205) [now 18 U. S. C. 431 and 432] shall not be applicable to loans or payments made under this Act (except under section 383 (a) ) (TU. S. C. 1386).

PHOTOGRAPHIC REPRODUCTIONS AND MAPS

SEC. 387. The Secretary may furnish reproductions of such aerial

or other photographs, mosaics, and maps as have been obtained in connection with the authorized work of the Department to farmers and

governmental agencies at the estimated cost of furnishing such reproductions, and to persons other than farmers at such prices (not less

than estimated cost of furnishing such reproductions) as the Secretary

may determine, the money received from such sales to be deposited in

the Treasury to the credit of the appropriation charged with the cost

of making such reproductions. This section shall not affect the power

of the Secretary to make other disposition of such or similar materials

under any other provisions of existing law (7 U. S. C. 1387).

UTILIZATION OF LOCAL AGENCIES

SEC. 388. (a) The provisions of section 8 (b) and section 11 of the

Soil Conservation and Domestic Allotment Act, as amended, relating

to the utilization of State, county, local committees, the extension

service, and other approved agencies, and to recognition and encouragement of cooperative associations, shall apply in the administration

of this Act; and the Secretary shall, for such purposes, utilize the

same local, county, and State committees as are utilized under sections

7 to 17, inclusive, of the Soil Conservation and Domestic Allotment

Act, as amended. The local administrative areas designated under

section 8 (b) of the Soil Conservation and Domestic Allotment Act,

as amended, for the administration of programs under that Act, and

the local administrative areas designated for the administration of

this Act shall be the same (7 U. S. C. 1388 (a) ).
AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 75

(b) The Secretary is authorized and directed, from any funds made

available for the purposes of the Acts in connection with which county

committees are utilized, to'make payments to county committees of

farmers to cover the estimated administrative expenses incurred or to

be incurred by them in cooperating in carrying out the provisions of

such Acts. AH or part of such estimated administrative expenses of

any such committee may be deducted pro rata from the Soil Conservation Act payments, parity payments, or loans, or other payments under

such Acts, made unless payment of such expenses is otherwise provided by law. The Secretary may make such payments to such committees in advance of determination of performance by farmers (7

U. S. C. 1388 (b)).

PERSONNEL

SEC. 389. The Secretary is authorized and directed to provide for

the execution by the Agricultural Adjustment Administration of such

of the powers conferred upon him by this Act as he deems may be appropriately exercised by such administration ; and for such purposes

the provisions of law applicable to appointment and compensation of

persons employed by the Agricultural Adjustment Administration

shall apply (7 Ü. S. C. 1389) .^

SEPARABILITY

SEC. 390. If any provision of this Act, or the application thereof to

any person or circumstance, is held invalid, the validity of the remainder of the Act and the application of such provision to other persons or circumstances, and the provisions of the Soil Conservation and

Domestic Allotment Act, as amended, shall not be affected thereby.

Without limiting the generality of the foregoing, if any provision of

this Act should be held not to be within the power of the Congress to

regulate interstate and foreign commerce, such provision shall not be

held invalid if itis within the power of the Congress to provide for the

general welfare or any other power of the Congress. If any provision of this Act for marketing quotas with respect to any commodity

should be held invalid, no provision of this Act for marketing quotas

with respect to any other commodity shall be affected thereby. If

the application of any provision for a referendum should be held invalid, the application of other provisions shall not De affected thereby.

If by reason of any provision for a referendum the application of any

such other provision to any person or circumstance is held invalid, the

application of such other provision to other persons or circumstances

shall not be affected thereby. (7U. S. C. 1390).

PART II—APPROPRIATIONS AND ADMINISTRATIVE EXPENSES

APPROPRIATIONS

SEC. 391. (a) Beginning with the fiscal year ending June 30, 1938,

there is hereby authorized to be appropriated, for each fiscal year for

the administration of this Act and for the making of soil conservation

and other payments such sums as Congress may determine, in addition

' The AgricuUural Adjustment Administration was consolidated into the Production and Marketing Administration by 1946 Reorganization Plan No. 3, effective July 4,1946,11 F. R. 7876, 60 Stat. 1100.
76 AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED

to any amount made available pursuant to section 15 of the Soil Conservation and Domestic Allotment Act, as amended (7 U. S. C. 1391

(a)).

(b) (Applicable only to fiscal year 1938.) ^

(c) During each fiscal year, beginning with the fiscal year ending

June 30, 1941, the Commodity Credit Corporation is authorized and

directed to loan to the Secretary such sums, not to exceed $50,000,000,

as he estimates will be required during such fiscal year, to make crop

insurance premium advances and to make advances pursuant to the

applicable provisions of sections 8 and 12 of the Soil Conservation and

Domestic Allotment Act, as amended, in connection with programs applicable to crops harvested in the calendar year in w^hich such fiscal

year ends, and to pay the administrative expenses of county agricultural conservation associations for the calendar year in which such

fiscal year ends. The sums so loaned during any fiscal year shall be

transferred to the current appropriation available for carrying out

sections 7 to 17 of such Act and shall be repaid, with interest at a rate

to be determined by the Secretary but not less than the cost of money

to the Commodity Credit Corporation for a comparable period, during

the succeeding fiscal year from the appropriation available for that

year or from any unobligated balance of the appropriation for any

other year (7 U. S. C. 1391 (c) ).

ADMINISTRATIVE EXPENSES

SEC. 392. (a) The Secretary is authorized and directed to make

such expenditures as he deems necessary to carry out the provisions of

this Act and sections 7 to 17, inclusive, of the Soil Conservation and

Domestic Allotment Act, as amended, including personal services

and rents in the District of Columbia and elsewhere; traveling expenses; supplies and equipment; lawbooks, books of reference, directories, periodicals, and newspapers; and the preparation and display

of exhibits, including such displays at community, county. State,

interstate, and international fairs within the United States. The

Secretary of the Treasury is authorized and directed upon the request of the Secretary to establish one or more separate appropriation

accounts into which there shall be transferred from the respective

funds available for the purposes of the several Acts, in connection

with which personnel or other facilities of the Agricultural Adjustment Administration are utilized, proportionate amounts estimated

by the Secretary to be required by the Agricultural Adjustment Administration for administrative expenses in carrying out or cooperating in carrying out any of the provisions of the respective Acts (7

U. S.C. 1392 (a)).^

(b) In the administration of this title and sections 7 to 17, inclusive,

of the Soil Conservation and Domestic Allotment Act, as amended,

the aggregate amount expended in any fiscal year, beginning with the

fiscal year ending June 30, 1942, for administrative expenses in the

District of Columbia, including regional offices, and in the several

States (not includiujo; the expenses of county and local committees)

shall not exceed 3 per centum of the total amount available for such

fiscal year for carrying out the purposes of this title and such Act.

In the administration of section 32 of the Act entitled "An Act to

amend the Agricultural Adjustment Act, and for other purposes,"

approved August 24,1935 (49 Stat. 774), as amended, and the Agricul-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 77

tural Marketing Agreement Act of 1937, as amended, and those

sections of the Agricultural Adjustment Act (of 1933), as amended,

which were reenacted and amended by the Agricultural Marketing

Agreement Act of 1937, as amended, the aggregate amount expended

in any fiscal year, beginning with the fiscal year ending June 30,1942,

for administrative expenses in the District of Columbia, including

regional offices, and in the several States (not including the expenses

of county and local committees) shall not exceed 4 per centum of

the total amount available for such fiscal year for carrying out the

purposes of said Acts. In the event any administrative expenses of

any county or local committee are deducted in any fiscal year, beginning with the fiscal year ending June 30, 1939, from Soil Conservation Act payments, parity payments, or loans, each farmer receiving

benefits under such provisions shall be apprised of the amount or percentage deducted from such benefit payment or loan on account of such

administrative expenses. The names and addresses of the members

and employees of any county or local committee, and the amount of

such compensation received by each of them, shall be posted annually

in a conspicious place in the area within which they are employed

(7U.S.C. 1392 (b)).

ALLOTMENT OF APPROPRIATIONS

SEC. 393. All funds for carrying out the provisions of this Act

shall be available for allotment to bureaus and offices of the Department, and for transfer to such other agencies of the Federal Government, and to such State agencies, as the Secretary may request to

cooperate or assist in carrying out the provisions of this Act (7

U.S. C. 1393).

TITLE IV—COTTON POOL PAKTICIPATION TEUST

CEETIFICATES

[The provisions of this title have not been repealed but are no longer

applicable (7 U. S. C. 1401-1407).]
FEDERAL CROP INSURANCE ACT, AS AMENDED

EXPLANATORY NOTE

The Federal Crop Insurance Act, which was enacted as title V

of the Agricultural Adjustment Act of 1938 (52 Stat. 72), established

the Federal Crop Insurance Corporation to insure producers of

wheat against unavoidable losses in production resulting from adverse

weather conditions, disease, insect infestation and other hazards.

In 1941, the act was amended to authorize the Corporation to insure

cotton as well as wheat (55 Stat. 255). The Congress did not provide funds for insurance on crops harvested in 1944 but in December

1944, the insurance program was reinstated as to wheat and cotton

and extended to permit the insuring of flax on a national basis and

other commodities on an experimental basis (58 Stat. 918). In 1947,

the Congress made a number of basic changes in the nature and scope

of the crop insurance program the more important of which (1) placed

crop insurance entirely on an experimental basis by restricting the

number of commodities for which the Corporation could write insurance and the number of counties in which insurance could be offered ;

and (2) limited the level of insurance that could be provided to the

general cost of producing the insured crop (61 Stat. 718). The act

was again amended in 1949 to permit the Corporation to expand and

to operate more efficiently the experimental program initiated by the

1947 legislation (63 Stat. 663).

78
PART III

FEDERAL CROP INSURANCE ACT, AS AMENDED

SHORT TITLE AND APPLICATION OF OTHER PROVISIONS

SEC. 501. This title may be cited as the "Federal Crop Insurance

Act." Except as otherwise expressly provided the provisions in

titles I to IV, inclusive, shall not apply with respect to this title, and

the term "Act" wherever it appears in such titles shall not be construed

to include this title ^ (7 U. S. C. 1501).

DECLARATION OF PURPOSE

SEC. 502. It is the purpose of this title to promote the national

welfare by improving the economic stability of agriculture through

a sound system of crop insurance and providing the means for the

research and experience helpful in devising and establishing such

insurance (7 Ü. S. C. 1502).

SEC. 503. To carry out the purposes of this title, there is hereby

created as an agency of and within the Department of Agriculture

a body corporate with the name "Federal Crop Insurance Corporation" (herein called the Corporation). The principal office of the

Corporation shall be located in the District of Columbia, but there

may be established agencies or branch offices elsewhere in the United

States under rules and regulations prescribed by the Board of Directors (7 U. S. C. 1503).

CAPITAL STOCK

SEC. 504. (a) The Corporation shall have a capital stock of $100,-

000,000 subscribed by the United States of America, payment for

which shall, with the approval of the Secretary of Agriculture, be

subject to call in whole or in part by the Board of Directors of the

Corporation (7 U. S. C. 1504 (a) ).

(b) There is hereby authorized to be appropriated such sums as

are necessary for the purpose of subscribing to the capital stock of

the Corporation (7 U. S. C. 1504 (b) ). ^

(c) Eeceipts for payments by the United States of America for

or.on account of such stock shall be issued by the Corporation to

the Secretary of the Treasury and shall be evidence of the stock ownership by the United States of America (7 U. S. C. 1504 (c) ).

MANAGEMENT OF CORPORATION

SEC. 505. (a) The management of the Corporation shall be vested

in a Board of Directors (hereinafter called the "Board") subject to

the general supervision of the Secretary of Agriculture. The Board

^ The Federal Crop Insurance Act was enacted as title V of the Agricultural

Adjustment Act of 1938.

79
80 FEDERAL CROP INSURANCE ACT, AS AMENDED

shall consist of the manager of the Corporation, two other persons

emplo^^ed in the Department of Agriculture, and two persons experienced in the insurance business who are not otherwise employed by

the Government. The Board shall be appointed by, and hold office

at the pleasure of the Secretary of Agriculture, who shall not,

himself, be a member of the Board (7 U. S. C. 1505 (a) ).

(b) Vacancies in the Board so long as there shall be three members

in office shall not impair the powers of the Board to execute the functions of the Corporation, and three of the members in office shall

constitute a quorum for the transaction of the business of the Board

(7 U.S.C. 1505(b)).

(c) The Directors of the Corporation who are employed in the

Department of Agriculture shall receive no additional compensation

for their services as such Directors but may be allowed necessary

traveling and subsistence expenses when engaged in business of the

Corporation, outside of the District of Columbia. The members of

the Board who are not employed by the Government shall be paid such

compensation for their services as directors as the Secretary of Agriculture shall determine, but such compensation shall not exceed $50

per day each when actually employed and transportation expenses

plus not to exceed $10 per diem in lieu of subsistence expenses when

on business of the Corporation away from their homes or regular

places of business (7 U. S. C. 1505 (c) ).

(d) The manager of the Corporation shall be its chief executive

officer, with such power and authority as may be conferred upon him

by the Board. He shall be appointed by, and hold office at the pleasure

of, the Secretary of Agriculture (7 U. S. C. 1505 (d) ).

GENERAL POWERS

SEC. 506. The Corporation—

(a) shall have succession in its corporate name (7 U. S. C.

1506(a));

(b) may adopt, alter, and use a corporate seal, which shall be

judicially noticed (7 Ü. S. C. 1506 (b) ) ;

(c) may make contracts and purchase or lease and hold such real

and personal property as it deems necessary or convenient in the

transaction of its business, and may dispose of such property held by

it upon such terms as it deems appropriate (7 Ü. S. C. 1506 (c) ) ;

(d) subject to the provisions of section 508 (c), may sue and be

sued in its corporate name in any court of record of a State having

general jurisdiction, or in any United States district court, and jurisdiction is hereby conferred upon such district court to determine such

controversies without regard to the amount in controversy : Provided^

That no attachment, injunction, garnishment, or other similar process,

mesne or final, shall be issued against the Corporation or its propertv

(7 U.S.C. 1506 (d)); ^ ^ ^

(e) may adopt, amend, and repeal bylaws, rules, and regulations

governing the manner in which its business may be conducted and the

powers granted to it by law may be exercised and enjoyed (7 U. S. C.

1506(e)); J ^ v

(f) shall be entitled to the free use of the United States mails in

the same manner as the other executive agencies of the Government

(7U.S.C. 1506(f));
FEDERAL CROP INSURANCE ACT, AS AMENDED 81

(g) with the consent of any board, commission, independent establishment, or executive department of the Government, including any

field service thereof, may avail itself of the use of information, services,

facilities, oiBcials, and employees thereof in carrying outthe provisions

of this title (7 U. S. C. 1506 (g) ) ;

(h) may conduct researches, surveys, and investigations relating

to crop insurance and shall assemble data for the purpose of establishing sound actuarial bases for insurance on agricultural commodities (7Ü. S. C. 1506 (h));

(i) shall determine the character and necessity for its expenditures

under this title and the manner in which they shall be incurred,

allowed, and paid, without regard to the provisions of any other laws

governing the expenditure of public funds and such determinations

shall be final and conclusive upon all other oificers of the Government

(7U.S.C.1506(i));and

(j) shall have such powers as may be necessary or appropriate for

the exercise of the powers herein specifically conferred upon the

Corporation and all such incidental powers as are customary in

corporations generally (7U. S. C. 1506 (j) ).

PERSONNEL

SEC. 507. (a) The Secretary shall appoint such officers and employees as may be necessary for the transaction of the business of the

Corporation pursuant to civil-service laws and regulations, fix their

compensation in accordance with the provisions of the [Classification

Act of 1949 (5 U. S. C. 1071-1153) ], define their authority and duties,

delegate to them such of the powers vested in the Corporation as he

may determine, require bond of such of them as he may designate, and

fix the penalties and pay the premiums of such bonds : Provided^ That

personnel paid by the hour, day, or month when actually employed,

and county crop insurance committeemen may be appointed and their

compensation fixed without regard to civil-service laws and regulations

or the [Classification Act of 1949] (7 U. S. C. 1507 (a) ).

(b) Insofar as applicable, the benefits of the Act entitled "An Act

to provide compensation for employees of the United States suffering

injuries while in the performance of their duties, and for other purposes," approved September 7, 1916, as amended, shall extend to

persons given employment under the provisions of this title, including

the employees of the committees and associations referred to in subsection (c) of this section and the members of such committees

(7 U.S.C. 1507(b)).

(c) The Board may establish or utilize committees or associations

of producers in the administration of this title and make payments to

such committees or associations to cover the estimated administrative

expenses to be incurred by them in cooperating in carrying out this

title and may provide that all or part of such estimated expenses may

be included in the insurance premiums provided for in this title

(7 U.S.C. 1507(c)).

(d) The Secretary of Agriculture may allot to bureaus and offices

of the Department of Agriculture or transfer to such other agencies

of the State and Federal Governments as he may request to assist in

carrying out this title any funds made available pursuant to the

provisions of section 516 of this Act, except that employees or agencies
82 FEDIERAL CROP INSURAKCÊ ACT, AS AMENDED

responsible for administering this Act in each county shall be selected

and designated by the Corporation and shall be responsible directly to

the Corporation without the intervention of any intermediate oifice

oragency(7U.S.C.1507(d)). _

(e) In carrying out the provisions of this title the Board may, in

its discretion, utilize producer-owned and producer-controlled cooperative associations (7 U. S. C. 1507 (e) ).

CROP INSURANCE

SEC. 508. To carry out the purposes of this title the Corporation

is authorized and empowered—

(a) Commencing with crops planted for harvest in 1948, for the

purpose of determining the most practical plan, terms, and conditions of insurance for agricultural commodities, if sufficient actuarial

data are available, as determined by the Board, to insure, or to reinsure

insurers of, producers of such agricultural commodities under any

plan or plans of insurance determined by the Board to be adapted to

any such commodity. Such insurance shall be against loss of the

insured commodity due to unavoidable causes, including drought,

flood, hail, wind, frost, winterkill, lightning, fire, excessive rain, snow,

wildlife, hurricane, tornado, insect infestation, plant disease, and

such other unavoidable causes as may be determined by the Board:

Provided^ That, except in the case of tobacco, such insurance shall not

extend beyond the period the insured commodity is in the field. In

1948 insurance shall be limited to not more than seven agricultural

commodities (including wheat, cotton, ñax, corn, and tobacco) and

to not more than three additional agricultural commodities in each

year thereafter : Provided^ That other agricultural commodities may

be included in multiple crop insurance (insurance on two or more

agricultural commodities under one contract with a producer). Insurance shall be limited to producers in not to exceed 200 counties in

the case of wheat, 56 counties in the case of cotton, 50 counties each

in the case of corn and flax, 35 counties in the case of tobacco, 20 counties in the case of any other agricultural commodity, and, in addition,

50 counties in the case of multiple crop insurance : Provided^ That, beginning with crops planted for harvest in 1950, and continuing

through the crops planted for harvest in 1951, 1952, and 1953, the

number of counties for insurance on wheat, cotton, corn, flax, and

tobacco, and for multiple crop insurance may be increased each year

by not in excess of 50 per centum of the number of counties specified

above and the county limitations specified for other insurance may be

similarly increased as to any agricultural commodity after insurance

for such commodity has been provided for 3 years. Eeinsurance for

private insurance companies shall be limited to not to exceed 20 counties which may be selected without regard to the other county limitations specified herein. Any insurance offered against loss in yield

shall not cover in excess of 75 per centum of the recorded or appraised

average yield of the commodity on the insured farm for a representative period subject to such adjustments as the Board may prescribe

to the end that the average yields fixed for farms in the same area,

which are subject to the same conditions, may be fair and just: Provided^ Thatif 75 per centum of the average yield represents generally

more protection than the investment in the crop in any area, taking
FEDERAL CROP INSURANCE ACT, AS AMENDED 83

into consideration recognized farming practices, the Board shall reduce such maximum percentage so as more nearly to reflect the investment in the crop in such area. Insurance provided under this

subsection shall not cover losses due to the neglect or malfeasance of

the producer, or to the failure of the producer to reseed to the same

crop in areas and under circumstances where it is customary to so

reseed, or to the failure of the producer to follow established good

farming practices. Counties selected by the Board shall be representative of the several areas where the agricultural commodity insured

is normally produced. The Board may limit or refuse insurance in

any county or area, or on any farm, on the basis of the insurance risk

involved. Insurance shall not be provided in any county unless written applications therefor are filed covering at least 200 farms or onet hird of the farms normally producing the agricultural commodity,

excluding farms refused insurance on the basis of the risk involved;

nor shall insurance on any agricultural commodity be provided in

any county in which the Board determines that the income from such

commodity constitutes an unimportant part of the total agricultural

income of the county. The Corporation shall report annually to

the Congress the results of its operations as to each commodity

insured (7 U. S. C. 1508 (a) ).

(b) To fix adequate premiums for insurance in the agricultural

commodity or in cash, at such rates as the Board deems sufficient to

cover claims for crop losses on such insurance and to establish as

expeditiously as possible a reasonable reserve against unforeseen

losses : Provided^ That such premiums may be established on the basis

of the parity or comparable price for the commodity as determined

and published by the Secretary of Agriculture, or on the basis of

an average market price designated by the Board. Such premiums

shall be collected at such time or times, or^ shall be secured in such

majiner, as the Board may determine (7 U. S.*C. 1508 (b) ).

(c) To adjust and pay claims for losses in the agricultural commodity or in cash, under rules prescribed by the Board: Provided.,

That indemnities may be determined on the same price basis as premiums are determined for the crop with respect to which such indemnities are paid. The Corporation shall provide for the posting

annually in each county at the county courthouse of a list of indemnities paid for losses on farms in such county. In the event that

any claim for indemnity under the provisions of this title is denied

by the Corporation, an action on such claim may be brought against

the Corporation in the United States district court, or in any court

of record of the State having general jurisdiction, sitting in the district or county in which the insured farm is located, and jurisdiction

is hereby conferred upon such district courts to determine such controversies without regard to the amount in controversy: Provided^

That no suit on such claim shall be allowed under this section unless

the same shall have been brought within 1 year after the date when

notice of denial of the claim is mailed to and received by the claimant

(7U.S.C.15()8 (c)).^

(d) From time to time, in such manner and through such agencies

as the Board may determine, to purchase, handle, store, insure, provide storage facilities for, and sell the agricultural commodity, and

pay any expenses incidental thereto, it being the intent of this pro-
84 FEDERAL CROP INSURANCE ACT, AS AMENDED

vision, however, that, insofar as practicable, the Corporation shall

purchase the agricultural commodity only at the rate and to a total

amount equalto the payment of premiums in cash by farmers or to

replace promptly the agricultural commodity sold to prevent deterioration; and shall sell the agricultural commodity only to the

extent necessary to cover payments of indemnities a;nd to prevent

deterioration : Promded^ however^ That nothing in this section shall

prevent prompt offset purchases and sales of the agricultural commodity for convenience in handling. Nothing in this section shall

prevent the Corporation from accepting, for the payment of premiums, notes payable in the commodity insured, or the cash equivalent,

upon such security as may be determined pursuant to subsection (b)

of this section, aiid from purchasing the quantity of the commodity

represented by any of such notes not paid at maturity. The restriction on the purchase and sale of the agricultural commodity provided

in this section shall be made a part of any crop insurance agreement

made under this title. Notwithstanding any provision of this title,

there shall be no limitation upon the legal or equitable remedies

available to the insured to enforce against the Corporation the foregoing restriction with respect to purchases and sales of the agricultural commodity (7 U. S. C. 1508 (d) ).

(e) In connection with insurance upon yields of cotton, to include

provision for additional premium and indemnity in terms of lint

cotton to cover loss of cottonseed, such additional premium and indemnity to be determined on the basis of the average relationship

between returns from cottonseed and returns from lint cotton for the

same period of years as that used for computing yields and premium

rates (7U. S.C.1508 (e)).

INDEMNITIES EXEMPT FROM LEVY

SEC. 509. Claims for ilidemnities under this title shall not be liable

to attachment, levy, garnishment, or any other legal process before

payment to the insured or to deduction on account of the indebtedness

of the insured or his estate to the United States except claims of the

United States or the Corporation arising under this title (7 U. S. C.

1509).

DEPOSIT OF FUNDS

SEC. 510. All money of the Corporation not otherwise employed may

be deposited with the Treasurer of the United States or in any bank

approved by the Secretary of the Treasury, subject to withdrawal

by the Corporation at any time, or with the approval of the Secretary

of the Treasury may be invested in obligations of the United States or

in obligations guaranteed as to principal and interest by the United

States. Subject to the approval of the Secretary of the Treasury, the

Federal Reserve banks are hereby authorized and directed to act as

depositories, custodians, and fiscal agents for the Corporation in the

performance of its powers conferred by this title (7 U. S. C. 1510).

TAX EXEMPTION

SEC. 511. The Corporation, including its franchise, its capital, reserves, and surplus, and its income and property, shall be exempt from

all taxation now or hereafter imposed by the United States or by any

Territory, dependency, or possession thereof, or by any State, county,

municipality or local taxing authority (7 U. S. C. 1511).
FEDERAL CROP INSURANCE ACT, AS AMENDED 85

FISCAL AGENT OF GOVERNMENT

SEC. 512. When designated for that purpose by the Secretary of the

Treasury, the Corporation shall be a depository of public money, except receipts from customs, under such regulations as may be prescribed by said Secretary ; and it may also be employed as a financial

agent of the Government; and it shall perform all such reasonable

duties, as a depository of public money and financial agent of the

Government, as may be required of it (7 U. S. C. 1512).

ACCOUNTING BY CORPORATION

SEC. 513, The Corporation shall at all times maintain complete and

accurate books of account and shall file annually with the Secretary

of Agriculture a complete report as to the business of the Corporation.

The financial transactions of the Corporation shall be audited at least

once each year by the General Accounting Office for the sole purpose

of making a report to Congress, together with such recommendations

as the Comptroller General of the United States may deem advisable :

Provided^ That such report shall not be made until the Corporation

shall have had reasonable opportunity to examine the exceptions and

criticisms of the Comptroller General or the General Accounting

Office, to point out errors therein, explain or answer the same, and to

file a statement which shall be submitted by the Comptroller General

with his report (7 U. S. C. 1513).

CRIMES AND OFFENSES

SEC. 514. (Subsections (a) through (e) repealed by 62 Stat. 859.)

(See criminal provisions beginning on p. 86.)

(f) The provisions of section 22 of Title 41 shall not apply to any

crop insurance agreements made under this title (7 U. S. C. 1514 (f) ).

ADVISORY COMMITTEE

SEC. 515. The Secretary of Agriculture is authorized to appoint

from time to time an advisory committee, consisting of not more than

five members experienced in agricultural pursuits and appointed with

due consideration to their geographical distribution, to advise the

Corporation with respect to carrying out the purposes of this title.

The compensation of the members of such committee shall be determined by the Board but shall not exceed $10 per day each while actually employed and actual necessary traveling and subsistence expenses,

or a per diem allowance in lieu thereof (7 Ü. S. C. 1515).

APPROPRIATIONS AND REGULATIONS

SEC. 516. (a) There are hereby authorized to be appropriated such

sums, not in excess of $12,000,000 for each fiscal year beginning after

June 30,1938, as may be necessary to cover the operating and administrative costs of the Corporation, which shall be allotted to the Corporation in such amounts and at such time or times as the Secretary of

Agriculture may determine: Provided^ That expenses in connection

with the purchase, transportation, handling, or sale of the agricultural

commodity may be considered by the Corporation as being nonadministrative or nonoperating expenses. For the fiscal year ending June

30,1939, the appropriation authorized under this subsection is authorized to be made only out of the unexpended balances for the fiscal year

ending June 30,1938, of the sums appropriated pursuant to section 15
86 FEDERAL CROP INSURANCE ACT, AS AMENDED

of the Soil Conservation and Doinestic Allotment Act, as amended

(7U.S. 0.1516 (a)).

(b) The Secretary and the Corporation, respectively, are authorized

to issue such regulations as may be necessary to carry out the provisions

of this title (7 U. S. C. 1516 (b) ).

SEPARABILITY

SEC 517. The sections of this title and subdivisions of sections are

hereby declared to be separable, and in the event any one or more sections or parts of the same of this title be held to be unconstitutional, the

same shall not affectthe validity of other sections or parts of sections of

this title (7U. S. C. 1517).

SEO. 518. "Agricultural commodity," as used in this title, means

wheat, cotton, flax, corn, dry beans, oats, barley, rye, tobacco, rice,

peanuts, soybeans, sugar beets, sugarcane, timber and forests, potatoes

and other vegetables, citrus and other fruits, tame hay, or any other

agricultural commodity determined by the Board pursuant to subsection (a) of section 508 of this title, or any one or more of such commodities, as the context may indicate (7 U. S. C. 1518).

RIGHT TO AMEND

SEC 519. The right to alter, amend, or repeal this title is hereby

reserved (7 U. S. C. 1519).

CRIMINAL PROVISIONS APPLICABLE TO FEDERAL CROP INSURANCE

CORPORATION

Whoever, being an officer, agent or employee of or connected in

any capacity with the Eeconstruction Finance Corporation, Federal

Deposit Insurance Corporation, Home Owners' Loan Corporation,

Farm Credit Administration, Federal Housing Administration, Federal Farm Mortgage Corporation, Federal Crop Insurance Corporation, Farmers' Home Corporation or any land bank, intermediate

credit bank, bank for cooperatives or any lending, mortgage, insurance, credit or savings and loan corporation or association authorized

or acting under the laws of the United States, and whoever, being

a receiver of any such institution, or agent or employee of the receiver,

embezzles, abstracts, purloins or willfully misapplies any moneys,

funds, credits, securities or other things of value belonging to such

institution, or pledged or otherwise intrusted to its care, shall be fined

not more than $5,000 or imprisoned not more than 5 years, or both;

but if the amount or value embezzled, abstracted, purloined or misapplied does not exceed $100, he shall be fined not more than $1,000 or

imprisoned not more than 1 year, or both (18 U. S. C. 657).

Whoever, with intent to defraud, knowingly conceals, removes,

disposes of, or converts to his own use or to that of another, any property mortgaged or pledged to, or held by, the Farm Credit Administration, any Federal intermediate credit bank, or the Federal Farm

Mortgage Corporation, Federal Crop Insurance Corporation, Farmers'

Home Corporation, or any production credit corporation or corporation in which a production credit corporation holds stock, any regional agricultural credit corporation, or any bank for cooperatives,

shall be fined not more than $5,000 or imprisoned not more than 5

years, or both ; but if the value of such property does not exceed $100,
FEDERAL CROP INSURANCE ACT, AS AMENDED 87

he shall be fined not more than $1,000 or imprisoned not more than

1 year, or both (18 U. S. C. 658).

Whoever, being an officer, agent or employee of or connected in any

capacity with the Reconstruction Finance Corporation, Federal Deposit Insurance Corporation, Home Owners' Loan Corporation, Farm

Credit Administration, Federal Housing Administration, Federal

Farm Mortgage Corporation, Federal Crop Insurance Corporation,

Farmers' Home Corporation, or any land bank, intermediate credit

bank, bank for cooperatives or any lending, mortgage, insurance,

credit or savings and loan corporation or association authorized or

acting under the laws of the United States, with intent to defraud any

such institution or any other company, body politic or corporate, or

any individual, or to deceive any officer, auditor, examiner or agent

of any such institution or of department or agency of the United

States, makes any false entry in any book, report or statement of or

to any such institution, or without being duly authorized, draws any

order or bill of exchange, makes any acceptance, or issues, puts forth

or assigns any note, debenture, bond or other obligation, or draft, bill

of exchange, mortgage, judgment, or decree, or, with intent to defraud

the United States or any agency thereof, or any corporation, institution, or association referred to in this section, participates or shares in

or receives directly or indirectly any money, profit, property, or benefits through any transaction, loan, commission, contract, or any other

act of any such corporation, institution, or association, shall be fined

not more than $10,000 or imprisoned not more than 5 years, or both

(18U.S.C. 1006). '

Whoever knowingly makes any false statement or report, or willfully overvalues any land, property or security, for the purpose of

influencing in any way the action of the Reconstruction Finance Corporation, Farm Credit Administration, Federal Crop Insurance Corporation, Farmers' Home Corporation, any Federal intermediate

credit bank, or the Federal Farm Mortgage Corporation, or any division, officer, or employee thereof, or of any corporation organized under sections 1131-1134m of Title 12, or in which a Production Credit

Corporation holds stock, or of any regional agricultural credit corporation established pursuantto law, or of the National Agricultural Credit

Corporation, a Federal Home Loan Bank, the Federal Home Loan

Bank Board, the Home Owners' Loan Corporation, a Federal Savings and Loan Association, a Federal land bank, a joint-stock land

bank, a National farm loan association, or of a Federal Eeserve Bank,

upon any application,* advance, discount, purchase, purchase agreement, repurchase agreement, commitment, or loan, or any change or

extension of any of the same, by renewal, deferment of action or

otherwise, or the acceptance, release, or substitution of security therefor, shall be fined not more than $5,000 or imprisoned not more than

2 years, or both ( 18 U. S. C. 1014).

Whoever, while acting in any official capacity in the administration

of any Act of Congress relating to crop insurance or to the Federal

Crop Insurance Corporation speculates in any agricultural commodity or product thereof, to which such enactments apply, or in contracts

relating thereto, or in the stock or membership interests of any association or corporation engaged in handling, processing, or disposing

of any such commodity or product, shall be fined not more than $10,000

or imprisoned not more than 2 years, or both (18 U. S. C. 1903).

224946''--52 7
SUGAR ACT OF 1948, AS AMENDED

EXPLANATORY NOTE

The first statute authorizing the imposition of sugar quotas on

all areas supplying the United States market, including the mainland

cane sugar area, the domestic beet sugar areas, and Hawaii, Puerto

Eico, and the Virgin Islands, was the Jones-Costigan Sugar Act, approved in May 1934, which was an amendment to the Agricultural

Adjustment Act of 1933. This act also authorized the Secretary to

impose a processing tax on sugar and to enter into contracts with

domestic growers providing for payments on a production limited to

area quotas. In 1936 the production control and processing tax provisions of the Agricultural Adjustment Act were invalidated in the

case of United States v. Butler (297 U. S. 1) ; however, sugar quotas

were continued in effect and were subsequently revised and reenacted

in the Sugar Act of 1937. The act of 1937 also provided for payments

to producers of sugarcane and sugar beets who complied with specified

conditions relating to child labor, farm wages, acreage allotments, soil

conservation, and, for producers who were also processors, fair prices

for sugarcane.

The Sugar Act of 1948, enacted in August 1947, reenacted the Sugar

Act of 1937 with certain changes, the most important of which related

to the determination of the annual estimate of sugar consumption

and the establishment of annual area sugar quotas.

88
PART IV

SUGAR ACT OF 1948, AS AMENDED^

AN ACT

To regulate commerce among the several States, with the Territories and

possessions of the United States, and with foreign countries; to protect the

welfare of consumers of sugars and of those engaged in the domestic sugarproducing industry ; to promote the export trade of the United States ; and for

other purposes.

Be it enacted hy the Senate and House of Representatives of the

united States of America in Congress assembled^ That this Act may

be cited as the "Sugar Act of 1948" (7 U. S. C. 1100).

TITLE I—DEFINITIONS

SEC. 101. For the purposes of this Act, except title V—

(a) The term "person" means an individual, partnership, corporation, or association (7 Ü. S. C. 1101 (a) ).

(b) The term "sugars" means any grade or type of saccharine product derived from sugarcane or sugar beets, which contains sucrose,

dextrose, or lévulose (7 U. S. C. 1101 (b) ).

(c) The term "sugar" means raw sugar or direct-consumption sugar

(7U.S.C.1101 (c)).

(d) The term "raw sugar" means any sugars which are principally

of crystalline structure and which are to be further refined or improved in quality, and any sugars which are principally not of crystalline structure, but which are to be further refined or otherwise improved in quality to produce any sugars principally of crystalline

structure (7 Ü. S. Ç. 1101 (d) ). ^

(e) The term "direct-consumption sugar" means any sugars which

are principally of crystalline structure and which are not to be further

refined or otherwise improved in quality (7 U. S. C. 1101 (e) ).

(f) The term "liquid sugar" means any sugars (exclusive of sirup

of cane juice produced from sugarcane grown in continental United

States) which are principally not of crystalline structure and which

contain, or which are to be used for the production of any sugars

principally not of crystalline structure which contain, soluble nonsugar solids (excluding any foreign substances that may have been

added or developed in the product) equal to 6 per centum or less of

the total soluble solids (7 U. S. C. 1101 (f) ).

(g) Sugars in dry amorphous form shall be considered to be principally of crystalline structure (7 U. S. C. 1101 (g) ).

^Includes amendments made to sections 202, 204, 207, 208, and 411 by Public

Law 140, 82d Cong., approved September 1, 1951, which become effective January

1, 1953, except for some provisions which become effective prior to that time for

purposes of determhiations and regulations required to be issued in 1952 for the

calendar year 1953.

89
90 SUGAR ACT OF 1948, AS AMENDED

(h) The "raw value" of any quantity of sugars means its equivalent

in terms of ordinary commercial raw sugar testing 96 sugar degrees

by the polariscope, determined in accordance with regulations to be

issued by the Secretary. The principal grades and types of sugar

and liquid sugar shall be translated into terms of raw value in the

following manner :

(1) For direct-consumption sugar, derived from sugar beets

and testing 92 or more sugar degrees by the polariscope, by multiplying the number of pounds thereof by 1.07;

(2) For sugar, derived from sugarcane and testing 92 sugar

degrees by the polariscope, by multiplying the number of pounds

thereof by 0.98 ;

(3) For sugar, derived from sugarcane and testing more than

92 sugar degrees by the polariscope, by multiplying the number

of pounds tliereof by the figure obtained by adding to 0.93 the

result of multiplying 0.0175 by the number of degrees and fractions of a degree of polarization above 92° ;

(4) For sugar and liquid sugar, testing less than 92 sugar degrees by the polariscope, by dividing the number of pounds of the

"total sugar content" thereof by 0.972.

(5) The Secretary may establish rates for translating sugar

and liquid sugar into terms of raw value for (a) any grade or type

of sugar or liquid sugar not provided for in the foregoing and

(b) any special grade or type of sugar or liquid sugar for which

he determines that the raw value cannot be measured adequately

under the provisions of paragraphs (1) to (4), inclusive, of this

subsection (h) (7 U. S. C. 1101 (h) ).

(i) The term "total sugar content" means the sum of the sucrose

(Clerget) and reducing or invert sugars contained in any grade or

type of sugar or liquid sugar (7 U. S. C. 1101 (i) ).

(j) The term "quota," depending upon the context, means (1) that

quantity of sugar or liquid sugar which may be brought or imported

into the continental United States, for consumption therein, during

any calendar year, from the Territory of Hawaii, Puerto Rico, the

Virgin Islands, or a foreign country or group of foreign countries ;

(2) that quantity of sugar or liquid sugar produced from sugar beets

or sugarcane grown in the continental United States which, during

any calendar year, may be shipped, transported, or marketed in interstate commerce, or in competition with sugar or liquid sugar shipped,

transported, or marketed in interstate or foreign commerce; or (3)

that quantity of sugar or liquid sugar which may be marketed in the

Territory of Hawaii or in Puerto Rico, for consumption therein, during any calendar year (7 U. S. C. 1101 (j) ).

(k) The term "producer" means a person who is the legal owner, at

the time of harvest or abandonment, of a portion or all of a crop of

sugar beets or sugarcane grown on a farm for the extraction of sugar

or liquid sugar (7 U. S. C 1101 (k) ).

(1) The terms "including" and "include" shall not be deemed to

exclude anything not mentioned but otherwise within the meaning

of the term defined (7 U. S. C. 1101 (1) ).

(m) The term "Secretary" means the Secretary of Agriculture

(7U.S. C.llOl (m)).
SUGAR ACT OF 1948, AS AMENDED 91

TITLE II—QUOTA PEOVISIONS

ANNUAL ESTIMATE OF CONSUMPTION IN CONTINENTAL UNITED STATES

SEC. 201. The Secretary shall determine for each calendar year,

beginning with the calendar year 1948, the amount of sugar needed

to meet the requirements of consumers in the continental United

States; such determinations shall be made during the month of December in each year for the succeeding calendar year (in the case

of the calendar year 1948, during the first 10 days thereof) and at

such other times during such calendar year as the Secretary may deem

necessary to meet such requirements. In making such determinations

the Secretary shall use as a basis the quantity of direct-consumption

sugar distributed for consumption, as indicated by official statistics

of the Department of Agriculture, during the 12-month period ending

October 31 next preceding the calendar year for which the determination is being made, and shall make allowances for a deficiency or

surplus in inventories of sugar, and for changes in consumption

because of changes in population and demand conditions, as computed from statistics published by agencies of the Federal Government; and, in order that such determinations shall be made so as

to protect the welfare of consumers and of those engaged in the

domestic sugar industry by providing such supply of sugar as will

be consumed at prices which will not be excessive to consumers and

which will fairly and equitably maintain and protect the welfare

of the domestic sugar industry, the Secretary, in making any such

determination, in addition to the consumption, inventory, population,

and demand factors above specified and the level and trend of consumer purchasing power, shall take into consideration the relationship

between the prices at wholesale for refined sugar that would result

from such determination and the general cost of living in the United

States as compared with the relationship between prices at wholesale

for refined sugar and the general cost of living in the United States

obtaining during 1947 prior to the termination of price control of

sugar as indicated by the Consumers' Price Index as published by the

Bureau of Labor Statistics of the Department of Labor (7 U. S. C,

1111).

PRORATION OF QUOTAS

SEC. 202. Whenever a determination is made, pursuant to section

201, of the amount of sugar needed to meet the requirements of consumers, the Secretary shall establish quotas, or revise existing quotas—

(a) For domestic sugar-producing areas, by apportioning among

such areas 4,444,000 short tons, raw value, as follows :

Short tons.

Area raw value

Domestic beet sugar ^___ 1,800,000

Mainland cane sugar : 500, 000

Hawaii 1, 052, 000

Puerto Rico 1, 080, 000

Virgin Islands 12,000

(7U.S.C.1112(a).)

(b) For the Eepublic of the Philippines, in the amount of 952,000

short tons of sugar as specified in section 211 of the Philippine Trade

Act of 1946 (7 U. S. C. 1112 (b) ).
92 SUGAR ACT OF 1948 AS AMENDED

(c) For foreign countries other than the Republic of the Philippines, by prorating among such countries an amount of sugar, raw

value, equal to the amount determined pursuant to section 201 less the

sum of the quotas established pursuant to subsections (a) and (b) of

this section, on the following basis :

Country Per centum

Cuba 96

Foreign countries other than Cuba and the RepubUc of the PhiUppines 4

Ninety-five per centum of the quota for foreign countries other

than Cuba and the Republic of the Philippines shall be prorated

among such countries on the basis of the average amount imported

from each such country within the quotas established for the years

1948, 1949, and 1950, except that a separate proration need not be

established for any country which entered less than 2 per centum of

the average importations within the quotas for such years. The

amount of the quota not so prorated may be filled by countries not

receiving separate prorations, but no such country shall enter an

amount pursuant to this subsection in excess of 1 per centum of the

quota for foreign countries other than Cuba and the Republic of the

Philippines (7 U. S. C. 1112 (c)).

(d) Notwithstanding the other provisions of this title II, the minimum quota established for Cuba, including increases resulting from

deficits determined pursuant to section 204 (a), shall not be less than

the following :

(1) 28.6 per centum of the amount of sugar determined under

section 201 when such amount is 7,400,000 short tons or less ; and

(2) tW'O million one hundred ¿nd sixteen thousand short tons,

when the amount of sugar determined under section 201 is more

than 7,400,000 short tons.

The quotas for domestic sugar-producing areas, established pursuant

to the other provisions of this title II, shall be reduced pro rata by

such amounts as may be required to establish such minimum quota

for Cuba (7U.S. C.1112 (d)).

CONSUMPTION ESTIMATES AND QUOTAS FOR HAWAII AND PUERTO RICO

SEC. 203. In accordance with such provisions of section 201 as he

deems applicable, the Secretary shall also determine the amount of

sugar needed to meet the requirements of consumers in the Territory

of Hawaii, and in Puerto Rico, and shall establish quotas for the

amounts of sugar which may be marketed for local consumption in

such areas equal to the amounts determined to be needed to meet the

requirements of consumers therein (7 U. S. C. 1113).

PRORATION OE^ QUOTA DEFICITS

SEC. 204. (a) The Secretary shall from time to time determine

w^hether, in view of the current inventories of sugar, the estimated

production from the acreage of sugarcane or sugar beets planted, the

normal marketings within a calendar year of new-crop sugar, and

other pertinent factors, any area will be unable to market the quota

for such area. If the Secretary finds that any domestic area or Cuba

will be unable to market the quota for such area, he shall revise the

quotas for the domestic areas and Cuba by prorating an amount of

sugar equal to the deficit so determined to the other such areas on the
SUGAR ACT OF 1948; AS AMENDED 93

basis of the quotas then in effect. If the Secretary finds that thet

Republic of the Philippines will be unable to market the quota for

such area, he shall revise the quotas for Cuba and foreign countries

other than Cuba and the Republic of the Philippines by prorating an

amount of sugar equal to the deficit so determined, as follows :

To Cuba, 96 per centum; and

To foreign countries other than Cuba and the Republic of the

Philippines, 4 per centum.

If the Secretary finds that foreign countries other than Cuba and

the Republic of the Philippines cannot fill the quota for such area, he

shall increase the quota for Cuba by an amount equal to the deficit.

Whenever the Secretary finds that any area will be unable to fill its

proration of any such deficit, he may apportion such unfilled amount

on such basis and to such areas as he determines is required to fill

such deficit (7 U. S. C. 1114 (a) ).

(b) Whenever the Secretary finds that any country will be unable

to fill the proration to such country of the quota for foreign countries

other than Cuba and the Republic of the Philippines established under

section 202 (c), or that any part of such proration has not been filled

on September 1 of the calendar year, he may apportion such unfilled

amount on such basis and to such countries as he determines is required

to fill such proration (7 U. S. C. 1114 (b) ).

(c) The quota or applicable proration for any domestic area, the

Republic of the Philippines, Cuba, or other foreign countries as established under the provisions of section 202 shall not be reduced by

reason of any determination of a deficit existing in any calendar year

under the provisions of subsections (a) and (b) of this section (T

U. S. C. 1114 (c)).

ALLOTMENTS OF QUOTAS OR PRORATIONS

SEC. 205. (a) Whenever the Secretary finds that the allotment of

any quota, or proration thereof, established for any area pursuant to

the provisions of this Act, is necessary to assure an orderly and adequate now of sugar or liquid sugar in the channels of interstate or

foreign commerce, or to prevent disorderly marketing or importation

of sugar or liquid sugar, or to maintain a continuous and stable supply

of sugar or liquid sugar, or to afford all interested persons an equitable

opportunity to market sugar or liquid sugar within any area's quota,

after such hearing and upon such notice as he may by regulations

prescribe, he shall make allotments of such quota or proration thereof

by allotting to persons who market or import sugar or liquid sugar, for

such periods as he may designate, the quantities of sugar or liquid

sugar which each such person may market in continental United States,

the Territory of Hawaii, or Puerto Rico, or may import or bring into

continental United States, for consumption therein. Allotments shall

be made in such manner and in such amounts as to provide a fair,

efficient, and equitable distribution of such quota or proration thereof,

by taking into consideration the processings of sugar or liquid sugar

from sugar beets or sugarcane to which proportionate shares, determined pursuant to the provisions of subsection (b) of section 302,

pertained ; the past marketings or importations of each such person ;

and the ability of such person to market or import that portion of such

quota or proration thereof allotted to him. The Secretary may also,
94 SUGAR ACT OF 1948, AS AMENDED

upon such hearing and notice as he may by regulations prescribe, revise

or amend any such allotment upon tlie same basis as the initial allotment was made (7 U. S. C. 1115 (a) ).

(b) An appeal may be taken, in the manner hereinafter provided

from any decision making such allotments, or revisions thereof, to the

United States Court of Appeals for the District of Columbia in any

of the following cases :

(1) By any applicant for an allotment whose application shall

have been denied.

(2) By any person aggrieved by reason of any decision of the

Secretary granting or revising any allotment made to him (7

U.S.C.1115 (b)).

(c) Such appeal shall be taken by filing with said court, within 20

days after the decision complained of is effective, notice in writing of

said appeal and a statement of the reasons therefor, together with proof

of service of a true copy of said notice and statement upon the Secretary. Unless a later date is specified by the Secretary as part of his

decision, the decision complained of shall be considered to be effective

as of the date on which public announcement of the decision is made

at the office of the Secretary in the city of Washington. The Secretary shall thereupon, and in any event not later than 10 days from the

date of such service upon him, mail or otherwise deliver a copy of said

notice of appeal to each person shown by the records of the Secretary

to be interested in such appeal and to have a right to intervene therein

under the provisions of this section, and shall at all times thereafter

permit any such person to inspect and make copies of appellants' reasons for said appeal at the office of the Secretary in the city of Washington. Within 30 days after the filing of said appeal the Secretary

shall file with the court the originals or certified copies of all papers

and evidence presented to him upon the hearing involved, a like copy

of his decision thereon, a full statement in writing of the facts and

grounds for his decisions as found and given by him and a list of all

interested persons to whom he has mailed or otherwise delivered a copy

of said notice of appeal (7 U. S. C. 1115 (c) ).

(d) Within 30 days after the filing of said appeal any interested

person may intervene and participate in the proceedings had upon said

appeal by filing with the court a notice of intention to intervene and a

verified statement showing the nature of the interest of such party tofether with proof of service of true copies of said notice and statement,

oth upon the appellant and upon the Secretary. Any person who

would be aggrieved or whose interests would be adversely affected by

reversal or modification of the decision of the Secretary complained of

shall be considered an interested party (7 U. S. C. 1115 (d) ).

(e) At the earliest convenient time the court shall hear and determine the appeal upon the record before it, and shall have power, upon

such record, to enter a judgment affirming or reversing the decision,

and if it enters an order reversing the decision of the Secretary it shall

remand the case to the Secretary to carry out the judgment of the

court: Promded^ hoioever^ Thatthe review by the court shall be limited

to questions of law and that findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive unless it shall

clearly appear that the findings of the Secretary are arbitrary or ca-
SUGAR ACT OF 1948, AS AMENDED 95

pricîous. The court's judgment shall be final, subject, however, to review by the Supreme Court of the United Stateb, upon writ of certiorari on petition therefor, under section 240 of the Judicial Code, as

amended (U. S. C, title 28, sec. 1254), by appellant, by the Secretary,

or by any interested party intervening in the appeal (7 U. S. C. 1115

(f) The court may, in its discretion, enter judgment for costs in

favor of or against an appellant, and other interested parties intervening in said appeal, but not against the Secretary, depending upon

the nature of the issues involved in such appeal and the outcome thereof (7 U. S. C. 1115 (f) ).

SEC. 206. Subject to the provisions of sections 207 and 408 relating

to the suspension of quotas, sugar quotas shall be established pursuant

to this Act for the calendar year 1948 within 10 days after effective

date of this Act (7 U. S. C. 1116).

AMOUNT OF QUOTA TO BE FILLED BY DIRECT-CONSUMPTION SUGAR

SEC. 207. (a) Not more than 29,616 short tons, raw value, of the

quota for Hawaii for any calendar year may be filled by direct-consumption sugar (7 U. S. C. 1117 (a) ).

(b) Not more than 126,033 short tons, raw value, of the quota for

Puerto Eico for any calendar year may be filled by direct-consumption

sugar (7U.S..C. 1117 (b)).

(c) None of the quota for the Virgin Islands for any calendar year

may be filled by direct-consumption sugar (7 U. S. C. 1117 (c) ).

(d) Not more than 56^000 short tons of sugar of the quota for the

Republic of the Philippines for any calendar year may be filled by

direct-consumption sugar as specified in section 211 of the Philippine

Trade Act of 1946 (7 U. S. C. 1117 (d) ).

(e) Not more than 375,000 short tons, raw value, of the guota for

Cuba for any calendar year may be filled by direct-consumption sugar

(7 Ü.S.C. 1117(e)).

(f) This section shall not apply with respect to the quotas established under section 203 for marketing for local consumption in

Hawaii and Puerto Eico (7 U. S. C. 1117 (f) ).

(g) The direct-consumption portions oi the quotas established pursuant to this section, and the enforcement provisions of title II applicable thereto, shall continue in effect and shall not be subject to suspension pursuant to the provisions of section 408 of this Act unless the

President acting thereunder specifically finds and proclaims that a

national economic or other emergency exists with respect to sugar or

liquid sugar which requires the suspension of direct-consumption portions of the quotas (7 U. S. C. 1117 (g) ).

(h) The quota for foreign countries other than Cuba and the Republic of the Philippines may be filled by direct-consumption sugar

only to the extent of 1.36 per centum of the amount of sugar determined pursuant to section 201 less the sum of the quotas established

in subsections (a) and (b) of section 202: Provided^ That each such

country shall be permitted to enter an amount of direct-consumption

sugar not less than the average amount entered by it during the years

1948,1949, and 1950 (7 U. S. C. 1117 (h) ).
96 SUGAR ACT OF 1948, AS AMENDED

LIQUID SUGAK QUOTAS

SEC. 208. Quotas for liquid sugar for foreign countries for each

calendar year are hereby established as follows :

In terms of wine gallons

of 72 per centum total

Country sugar content

Cuba 7,970,558

Dominican Republic 830, 894

British West Indies 300,000

Other foreign countries 0

(7U.S. 0.1118).

PROHIBITED ACTS

SEC. 209. All persons are hereby prohibited—

(a) From bringing or importing into the continental United Stateb

from the Territory of Hawaii, Puerto Rico, the Virgin Islands, or

foreign countries, (1) any sugar or liquid sugar after the applicable

quota, or the proration of any such quota, has been filled, or (2) any

direct-consumption sugar after the direct-consumption portion of any

such quota has been filled (7 U. S. C. 1119 (a) ) ;

(b) From shipping, transporting, or marketing in interstate commerce, or in competition with sugar or liquid sugar shipped, transported, or marketed in interstate or foreign commerce, any sugar or

liquid sugar produced from sugar beets or sugarcane grown in either

the domestic-beet-sugar area or the mainland cane-sugar area after

the quota for such area has been filled (7 U. S. C. 1119 (b) ) ;

(c) From marketing in either the Territory of Hawaii or Puerto

Rico, for consumption therein, any sugar or liquid sugar after the

quota therefor has been filled (7 U. S. C. 1119 (c) ) ;

(d) From exceeding allotments of any quota, direct-consumption

portion of any quota, or proration of any quota, made to them pursuant

to the provisions of this Act (7U.S.C.1119 (d)).

SEC. 210. (a) The determinations provided for in sections 201 and

203, and all quotas, prorations, and allotments, except quotas established pursuant to the provisions of section 208, shall be made or established in terms of raw value (7 U. S. C. 1120 (a) ).

(b) For the purposes of this title, liquid sugar, except that imported

from foreign countries, shall be included with sugar in making the

determinations provided for in sections 201 and 203 and in the establishment or revision of quotas, prorations, and allotments (7 U. S. C.

1120 (b)).

EXPORTATION OF SUGAR

SEC. 211. (a) The raw-value equivalent of any sugar or liquid sugar

in any form, including sugar or liquid sugar in manufactured products, exported from the continental United States under the provisions

of section 313 of the Tariff Act of 1930 shall be credited against any

charges which shall have been made in respect to the applicable quota

or proration for the country of origin. The country of origin of sugar

or liquid sugar in respect to which any credit shall be established shall

be that country in respect to importation from which draw-back of

the exported sugar or liquid sugar has been claimed. Sugar or liquid

sugar entered into the continental United States under an applicable

bond established pursuant to orders or regulations issued by the Secretary, for the express purpose of subsequently exporting the equiva-
SUGAR ACT OF 1948, AS AMENDED 97

lent quantity of sugar or liquid sugar as such, or in manufactured

articles, shall not be charged against the applicable quota or proration

for the country of origin (7 U. S. C. 1121 (a) ).

(b) Exportation within the meaning of sections 309 and 313 of the

Tariff Act of 1930 shall be considered to be exportation within the

meaning of this section (7 Ü, S. C. 1121 (b) ).

(c) The quota established for any domestic sugar-producing area

may be filled only with sugar or liquid sugar produced from sugar

beets or sugarcane grown in such area: Provided^ however^ Th^t any

sugar or liquid sugar admitted free of duty from the Virgin Islands

under the Act of Congress, approved March 3, 1917 (39 Stat. 1133),

may be admitted within the quota for the Virgin Islands (7 U. S. C.

1121 (c)).

INAPPLICABILITY OF QUOTA PROVISIONS

SEC. 212. The provisions of this title shall not apply to (1) the

first 10 short tons, raw value, of sugar or liquid sugar imported from

any foreign country, other than Cuba and the Eepublic of the Philippines, in any calendar year; (2) the first 10 short tons, raw value,

of sugar or liquid sugar imported from any foreign country, other

than Cuba and the Eepublic of the Philippines, in any calendar year

for religious, sacramental, educational, or experimental purposes ;

(3) liquid sugar imported from any foreign country, other than Cuba

and the Eepublic of the Philippines, in individual sealed containers

of such capacity as the Secretary may determine, not in excess of IVio

gallons each; or (4) any sugar or liquid sugar imported, brought

into, or produced or manufactured in the United States for the distillation of alcohol, or for livestock feed, or for the production of

livestock feed (7 U. S. C. 1122).

TITLE III—CONDITIONAL-PAYMENT PEOVISIONS

CONDITIONS OF PAYMENT

SEC. 301. The Secretary is authorized to make payments on the

following conditions with respect to sugar or liquid sugar commercially recoverable from the sugar beets or sugarcane grown on a farm

for the extraction of sugar or liquid sugar :

(a) That no child under the age of 14 years shall have been employed or permitted to work on the farm, whether for gain to such

child or any other person, in the production, cultivation, or harvesting

of a crop of sugar beets or sugarcane with respect to which application

for payment is made, except a member of the immediate family of a

person who was the legal owner of not less than 40 per centum of

the crop at the time such work was performed; and that no child

between the ages of 14 and 16 years shall have been employed or permitted to do such work, whether for gain to such child or any other

person, for a longer period than 8 hours in any 1 day, except a member

of the immediate family of a person who was the legal owner of not

less than 40 per centum of the crop at the time such work was performed. The Secretary is authorized to make payments, notwithstanding a failure to comply with the conditions provided in this

subsection, but the payments made with respect to any crop shall be

subject to a deduction of $10 for each child for each day, or a portion
98 SUGAR ACT OF 1948, AS AMENDED

of a day, during which such child was employed or permitted to

work contrary to the foregoing provisions of this subsection (7 Ù.

S. C. 1131 (a)).

(b) That there shall not have been marketed (or processed) an

amount (in terms of planted acreage, weight, or recoverable sugar

content) of sugar beets or sugarcane grown on the farm and used

for the production of sugar or liquid sugar to be marketed in, or so as

to compete with or otherwise directly affect interstate or foreign commerce, in excess of the proportionate share for the farm, as determined

by the Secretary pursuant to the provisions of section 302, of the total

quantity of sugar beets or sugarcane required to be processed to enable the area in which such sugar beets or sugarcane are produced to

meet the quota (and provide a normal carry-over inventory) as estimated by the Secretary for such area for the calendar year during

which the larger part of the sugar or liquid sugar from such crop normally would be marketed (7 U. S. C. 1131 (b) ).

(c) (1) That all persons employed on the farm in the production,

cultivation, or harvesting of sugar beets or sugarcane with respect to

which an application for payment is made shall have been paid in

full for all such work, and shall have been paid wages therefor at rates

not less than those that may be determined by the Secretary to be

fair and reasonable after investigation and due notice and opportunity

for public hearing ; and in making such determinations the Secretary

shall take into consideration the standards therefor formerly established by him under the Agricultural Adjustment Act, as amended,

and the differences in conditions among various producing areas:

Provided^ hoioever^ That a payment which would be payable except

for the foregoing provisions of this subparagraph may be made, as

the Secretary may determine, in such manner that the laborer will receive an amount, insofar as, such payment will suffice, equal to the

amount of the accrued unpaid wages for such work, and that the producer will receive the remainder, if any, of such payment.

(2) That the producer on the farm who is also, directly or indirectly a processor of sugar beets or sugarcane, as may be determined

by the Secretary shall have paid, or contracted to pay under either

purchase or toll agreements, for any sugar beets or sugarcane grown

by other producers and processed by him at rates not less than those

that may be determined by the Secretary to be fair and reasonable after

investigation and due notice and opportunity for public hearing (7

U. S. C. 1131 (c)).

ESTABLISHMENT OF PROPORTIONATE SHARES FOR FARMS

SEC. 302. (a) The amount of sugar or liquid sugar with respect to

which payment may be made shall be the amount of sugar or liquid

sugar commercially recoverable, as determined by the Secretary, from

the sugar beets or sugarcane grown on the farm and marketed (or

processed by the producer) not in excess of the proportionate share

for the farm, as determined by the Secretary, of the quantity of sugar

beets or sugarcane for the extraction of sugar or liquid sugar required

to be processed to enable the producing area in which the crop of sugar

beets or sugarcane is grown to meet the quota (and provide a normal

carry-over inventory) estimated by the Secretary for such area for

the calendar year during which the larger part of the sugar or liquid
SUGAR ACT OF 1948, AS AMENDED 99

sugar from such crop normally would be marketed (7 U. S. C.

1132 (a)). _

(b) In determining the proportionate shares with respect to a farm,

the Secretary may take into consideration the past production on the

farm of sugar beets and sugarcane marketed (or processed) for the

extraction of sugar or liquid sugar and the ability to produce such

sugar beets or sugarcane, and the Secretary shall, insofar as practicable, protect the interests of new producers and small producers and

the interests of producers who are cash tenants, share tenants, adherent

planters, or share croppers (V U. S. C. 1132 (b) ).

(c) Payments shall be effective with respect to sugar or liquid sugar

commercially recoverable from sugar beets and sugarcane grown on a

farm commencing with the crop year 1948 (7 IT. S. C. 1132 (c) ).

ACREAGE ABANDONMENT AND CROP DEFICIENCY PAYMENTS

SEC. 303. In addition to the amount of sugar or liquid sugar with

respect to which payments are authorized under subsection (a) of

section 302, the Secretary is also authorized to make payments, on the

conditions provided in section 301, with respect to bona fide abandonment of planted acreage and crop deficiencies of harvested acreage,

resulting from drought, flood, storm, freeze, disease, or insects, which

cause such damage to all or a substantial part of the crop of sugar beets

or sugarcane in the same factory district (as established by the Secretary), county, parish, municipality, or local producing area, as determined in accordance with regulations issued by the Secretary, on the

following quantities of sugar or liquid sugar : ( 1 ) With respect to such

bona fide ^abandonment of each planted acre of sugar beets or sugarcane, one-third of the normal yield of commercially recoverable sugar

or liquid sugar per acre for the farm, as determined by the Secretary ;

and (2) with respect to such crop deficiencies of harvested acreage of

sugar beets or sugarcane, the excess of 80 per centum of the normal

yield of commercially recoverable sugar or liquid sugar for such

acreage for the farm, as determined by the Secretary, over the actual

yield (7 Ü.S.C. 1133).

COMPUTATION OF PAYMENTS AND PERSONS ELIGIBLE FOR PAYMENTS

SEC 304. (a) The amount of the base rate of payment shall be 80

cents per hundred pounds of sugar or liquid sugar, raw value (7

U.S. a 1134 (a)).

(b) All payments shall be calculated with respect to a farm which,

for the purposes of this Act, shall be a farming unit as determined in

accordance with regulations issued by the Secretary, and in making

such determinations, the Secretary shall take into consideration the

use of common work stock, equipment, labor, management, and other

pertinent factors (7 Ü. S. C. 1134 (b) ).

(c) The total payment with respect to a farm shall be the product

of the base rate specified in subsection (a) of this section multiplied

by the amount of sugar and liquid sugar, raw value, with respect to

which payment is to be made, except that reduction shall be made

from such total payment in accordance with the following scale of

reductions:
100 SUGAR ACT OF 1948. AS AMENDED

That portion of the quantity of sugar and liquid sugar which is

inckided within the following intervals of short tons, raw value :

Reduction in the hase rate

of payment per hundredweight of such portion

350 to 700 . $0. 05

700 to 1,000 .10

1,000 to 1,500 .20

1,500 to 3,000 . 25

3,000 to 6,000 .275

6,000 to 12,000 - .30

12,000 to 30,000 . 325

More than 30,000 .50

(7U.S. C.1134 (c)).

(d) Application for payment shall be made by, and payments shall

be made to, the producer or, in the event of his death, disappearance,

or incompetency, his legal representative, or heirs : Provided^ however^

That all producers on the farm shall signify in the application for

payment the percentage of the total payment with respect to the farm

to be made to each producer : And provided further, That payments

may be made, (1) in the event of the death, disappearance, or incompetency of a producer, to such beneficiary as the producer may designate in the application for payment; (2) to one producer of a group

of two or more producers, provided all producers on the farm designate such producer m the application for payment as sole recipient

for their benefit of the payment with respect to the farm; or (3) to a

person who is not a producer, provided such person controls the land

included within the farm with respect to which the application for

payment is made and is designated by the sole producer (or all producers) on the farm, as sole recipient for his or their benefit, of the

payment with respect to the farm (7 U. S. C. 1134 (d) ).

USB OF LOCAL COMMITTEES AND OTHER AGENCIES

SEC. 305. In carrying out the provisions of titles II and III of this

Act, the Secretary is authorized to utilize local committees of sugar

beet or sugarcane producers, State and county agricultural conservation committees, or the Agricultural Extension Service and other

agencies, and the Secretary may prescribe that all or a part of the

expenses of such committees may be deducted from the payments

herein authorized (7 U. S. C. 1135).

FINALITY OF DETERMINATIONS

SEC. 306. The facts constituting the basis for any payment, or the

amount thereof authorized to be made under this title, officially determined in conformity with rules or regulations prescribed by the Secretary, shall be reviewable only by the Secretary, and his determinations

with respect thereto shall be final and conclusive (7 U. S. C. 1136).

APPLICABILITY OF TITLE III

SEC. 307. This title shall apply to the continental united States,

the Territory of Hawaii, Puerto Rico, and the Virgin Islands (7 Ü.

S. C. 1137).
SUGAR ACT/OF 194 8, AS AMENDED 101

TITLE IV—GENERAL PROVISIONS

EXPENDITURES BY SECRETARY

SEC. 401. For the purposes of this Act, the Secretary m^j make such

expenditures as he deems necessary to carry out the provisions of this

Act including personal services and rents in the District of Columbia

and elsewhere (7 U. S. C. 1151).

APPROPRIATIONS AND AVAILABILITY OF FUNDS

SEC. 402. (a) There is hereby authorized to be appropriated for

each fiscal year for the purposes and administration of this Ad: the

funds necessary to make the payments provided for m title III ot

this Act and such other amounts as the Congress determines to be necessary for such fiscal year to carry out the other provisions of the

Act(7U.S.C.1152(a)). . , . . . i n i. n ^.^

(b) All funds available for carrying out this Act shall be available

for allotment to the bureaus and offices of the Department of Agriculture and for transfer to such other agencies of the Federal Government as the Secretary may request to cooperate or assist m carrying

outthe provisions of this Act (7U.S.C.1152 (b)).

(c) The funds made available for the purpose of enabling the becretary to carry into effect the provisions of the Sugar Act of 1937,

as amended, during the fiscal year 1948 are also hereby made available to the Secretary for purposes of administration of the provisions

of this Act during the fiscal year 1948 (7 U. S. C. 1152 (c) ).

REGULATIONS AND DETERMINATIONS

SEC. 403. (a) The Secretary is authorized to make such orders or

regulations, which shall have the force and effect of law, as may be

necessary to carry out the powers vested in him by this Act. Any

person knowingly violating any order or regulation of the Secretary

issued pursuant to this Act shall, upon conviction, be punished by a

fine of not more than $100 for each such violation (7 U. S. C 1153 (a) ).

(b) Each determination issued by the Secretary m connection

with quotas and deficits under title II or payments under title III

of this Act shall be promptly published in the Federal Eegister and

shall be accompanied by a statement of the bases and considerations

upon which such determination was made (7 U. S. C. 1153 (b) ).

JURISDICTION OF COURTS

SEC. 404. The several district courts of the United States are hereby

vested with jurisdiction specifically to enforce, and to prevent and

restrain any person from violating, the provisions of this Act or of

any order or regulation made or issued pursuant to this Act. If and

when the Secretary shall so request, it shall be the duty of the several

district attorneys of the united States, in their respective districts,

to institute proceedings to enforce the remedies and to collect the

penalties and forfeitures provided for in this Act. The remedies provided for in this Act shall be in addition to, and not exclusive of, aii}^

of the remedies or penalties existing at law or in equity (7 U. S. C.

1154).
102 SUGAR ACT OF 1948, AS AMENDED

CIVIL PENALTIES

SEC. 405. Any person who knowingly violates, or attempts to violate, or who knowingly participates or aids in the violation of, any

of the provisions of section 209, or any person who brings or imx:)orts

into the continental United States direct-consumption sugar after

the quantities specified in section 207 have been filled, shall forfeit

to the United States the sum equal to three times the market value,

at the time of the commission of any such act, (a) of that quantity

of sugar or liquid sugar by which any quota, proration, or allotment

is exceeded, or (b) of that quantity brought or imported into the

continental United States after the quantities specified in section 207

have been filled, which forfeiture shall be recoverable in a civil suit

brought in the name of the United States (7 U. S. C. 1155).

FURNISHING INFORMATION TO SECRETARY

SEC. 406. All persons engaged in the manufacturing, marketing, or

transportation or industrial use of sugar or liquid sugar, and having

information which the Secretary deems necessary to enable him to

administer the provisions of this Act, shall, upon the request of the

Secretary, furnish him with such information. Any person willfully

failing or refusing to furnish such information or furnishing willfully

any false information, shall upon conviction be subject to a penalty

of not more than $1,000 for each such violation (7 U. S. C. 1156).

SUGAR INVESTMENTS BY OFFICIALS PROHIBITED

SEC 407. No person shall, while acting in any official capacity in the

administration of this Act, invest or speculate in sugar or liquid sugar,

contracts relating thereto, or the stock or membership interests of any

association or corporation engaged in the production or manufacturing of sugar or liquid sugar. Any person violating this section shall

upon conviction thereof be fined not more than $10,000 or imprisoned

not more than 2 years, or both (7 U. S. C. 1157).

SUSPENSION OF QUOTAS

SEC 408. Whenever pursuantto the provisions of this Act the President finds and proclaims that a national economic or other emergency

exists with respect to sugar or liquid sugar, he shall by proclamation

suspend the operation, except as provided in section 207 of this Act, of

all the provisions of title II above, and, thereafter, the operation of

such title shall continue in suspense until the President finds and proclaims that the facts which occasioned such suspension no longer exist.

The Secretary shall make such investigations and reports thereon to

the President as may be necessary to aid him in carrying out the provisions of this section (7 U. S. C. 1158).

SURVEYS AND INVESTIGATIONS

SEC 409. Whenever the Secretary determines that such action is

necessary to effectuate the purposes of this Act, he is authorized, if first

requested by persons constituting or representing^ a substantial proportion of the persons affected in any one of the five domestic sugarproducing areas, to make for such area surveys and investigations to

the extent he deems necessary, including the holding of public hear-
SUGAR ACT OF 1948, AS AMENDED 103

ings, and to make recommendations with respect to (a) the terms and

conditions of contracts between the producers and processors of sugar

beets and sugarcane in such area and (b) the terms and conditions of

contracts between laborers and producers of sugar beets and sugarcane

in such area. In carrying out the provisions of this section, information shall not be made public with respect to the individual operations

of any processor, producer, or laborer (7 U. S. C. 1159).

SEC. 410. The Secretary is authorized to conduct surveys, investigations, and research relating to the conditions and factors affecting the

methods of accomplishing most effectively the purposes of this Act

and for the benefit of agriculture generally in any area. Notwithstanding any provision of existing law, the Secretary is authorized to

make public such information as he deems necessary to carry out the

provisions of this Act (7 Ü. S. C. 1160).

TERMINATION OF ACT

SEC. 411. The powers vested in the Secretary under this Act shall

terminate on December 31,1956, except that the Secretary shall have

power to make payments under title III under programs applicable to

the crop year 1956 and previous crop years (7 U. S. C. 1101, Note).

EFFECTIVE DATE

SEC. 412. The j)rovisions of this Act, except where an earlier effective date is provided for herein, shall become effective January 1,

1948. As provided in section 513 of the Sugar Act of 1937, the

powers vested in the Secretary under that Act shall terminate on

December 31,1947, except that the Secretary shall have power to make

payments under title III of that Act under programs thereunder applicable to the crop year 1947 and previous crop years (7 U. S. C.

1101, Note).

EXCISE TAXES WITH EESPECT TO SUGAE^

CHAPTER 32—SUGAR

SUBCHAPTER A—MANUFACTURE

SEC. 3490. TAX.

(a) RATE.-—Upon manufactured sugar manufactured in the

United States, there shall be levied, collected and paid a tax, to be

paid by the manufacturer at the following rates :

(1) On all manufactured sugar testing by the polariscope

92 sugar degrees, 0.465 cent per pound, and for each additional

sugar degree shown by the polariscope test, 0.00875 cent per

pound additional, and fractions of a degree in proportion ;

(2) On all manufactured sugar testing by the polariscope less

than 92 sugar degrees, 0.5144 cent per pound of the total sugars

therein (26 U. S. C. 3490 (a) ).

(b) EXEMPTION.—No tax shall be required to be paid upon

the manufacture of manufactured sugar by, or for, the producer of

the sugar beets or sugarcane from which such manufactured sugar

• The tax provisions are taken from chapter 32 of the Internal Bevenue Code.

224946 «—52 8
104 SUGAR ACT OF 1948. AS AMENDED

was derived, for consumption by the producer's own family, employees,

or household (26 U. S. C. 3490 (b) ).

SEC. 3491. EETUENS AND PAYMENT OF TAX.

(a) EETURNS.—The manufacturer shall file on the last day of

each month a return and pay the tax with respect to manufactured

sugar, (1) which has been sold, or used in the production of other

articles, by the manufacturer during the preceding month (if the

tax has not already been paid), and (2) which has not been so sold

or used within 12 nionths ending during the preceding calendar month,

after it was manufactured (if the tax has not already been paid).

For the purpose of determining whether sugar has been sold or

used within 12 months after it was manufactured sugar shall be

considered to have been sold or used in the order in which it was

manufactured (26 U. S. C. 3491 (a) ).

(b) PAYMENT OF TAX.—Except as otherwise provided, the

taxes imposed by this chapter shall be collected by the Bureau of Internal Revenue under the direction of the Secretary. Such taxes shall

be paid into the Treasury of the United States (26 U. S. C. 3491 (b) ).

(c) PLACE FOR FILING RETURN AND PAYMENT OF

TAX.—Any person required, pursuant to the provisions of this section

and section 3492, to file a return may be required to file such return

with and pay the tax shown to be due thereon to the collector for the

district in which the manufacturing was done or the liability incurred

(26U.S. 0.3491 (c)).

SEC. 3492. PERSONS CLASSED AS MANUFACTURERS.

Any person who acquires any sugar which is to be manufactured

into manufactured sugar but who, without further refining or otherwise improving it in quality, sells such sugar as manufactured sugar

or uses such sugar as manufactured sugar in the production of other

articles for sale shall be considered for the purposes of section 3490

and 3491 the manufacturer of manufactured sugar and, as such, liable

for the tax under section 3490 with respect thereto (26 U. S. C. 3492).

SEC. 3493. EXPORTATION.

(a) REFUND OF TAX PAID.—Upon the exportation from the

United States to a foreign country, or the shipment from the united

States to any possession of the United States except Puerto Rico, of

any manufactured sugar, or any article manufactured wholly or partly

from manufactured sugar, with respect to which tax under the provisions of section 3490 has been paid, the amount of such tax shall be

paid by the Commissioner of Internal Revenue to the consignor named

in the bill of lading under which the article was exported or shipped

to a possession, or to the shipper, or to the manufacturer of the manufactured sugar or of the articles exported, if the consignor waives any

claim thereto in favor of such shipper or manufacturer : Provided^

That no such payment shall be allowed with respect to any manufactured sugar, or article, upon which, through substitution or otherwise,

a drawback of any tax paid under section 3500 has been or is to be

claimed under any provisions of law made applicable by section 3501

(26 U. S. C. 3493 (a)).

(b) PERIOD FOR FILING REFUND CLAIM.-No payment

shall be allowed under this section unless within 2 years after the right

to such payment has accrued a claim therefor is'filed by the person

entitled thereto (26 U. S. C. 3493 (b) ).
SUGAR ACT OF 1948, AS AMENDED 105

SEC. 3494. USE AS LIVESTOCK FEED OE FOE DISTILLATION OF ALCOHOL.

(a) EEFUND OF TAX PAID.—Upon the use of any manufactured sugar, or article manufactured therefrom, as livestock feed, or in

the production of livestock feed, or for the distillation of alcohol, there

shall be paid by the Commissioner to the person so using such manufactured sugar, or article manufactured therefrom, the amount of any

tax paid under section 3490 with respect thereto (26 U. S. C. 3494 (a) ).

(b) PEEIOD FOE FILING EEFUND CLAIM.—No payment

shall be allowed under this section unless within 1 year after the right

to such payment has accrued a claim therefor is filed by the person

entitled thereto (26 U. S. C. 3494 (b) ).

SEC. 3495. ADDITION TO TAX IN CASE OF NONPAYMENT.

If the tax is not paid when due there shall be added as part of the

tax interest at 6 per centum per annum from the date the tax became

due until the date of payment (26 U. S. C. 3495).

SEC. 3496. OTHEE LAWS APPLICABLE.

All provisions of law, including penalties, applicable with respect

to the taxes imposed under subchapter A of chapter 29, shall, insofar

as applicable and not inconsistent with the provisions of this chapter,

be applicable in respect to the tax imposed by section 3490 (26

U.S.C. 3496).

SEC. 3497. EEGULATIONS.

The Commissioner, with the approval of the Secretary, shall prescribe such rules and regulations as may be necessary to carry out all

provisions of this chapter, except Subchapter B (26 U. S. C. 3497).

SEC. 3498. EFFECTIVE DATE OF SUBCHAPTEE.

This subchapter shall take effect on the first day of that calendar

month occurring next after the enactment of this title (26 U. S. C.

3498).

SUBCHAPTER B—IMPORTATION

SEC. 3500, EATE OF TAX.

In addition to any other tax or duty imposed by law, there shall

be imposed, under such regulations as the Commissioner of Customs

shall prescribe, with the approval of the Secretary, a tax upon articles

imported or brought into the United States as follows :

(1) On all manufactured sugar testing by the polariscope 92

sugar degrees, 0.465 cent per pound, and for each additional

sugar degree shown by the polariscopic test, 0.00875 cent per

pound additional, and fractions of a degree in proportion ;

(2) On all manufactured sugar testing by the polariscope

less than 92 sugar degrees 0.5144 cent per pound of the total

sugars therein ;

(3) On all articles composed in chief value of manufactured

sugar 0.5144 cent per pound of the total sugars therein (26 U. S. C.

3500).

SEC. 3501. ASSESSMENT AND PAYMENT.

Such tax shall be levied, assessed, collected, and paid in the same

manner as a duty imposed by the Tariff Act of 1930, 46 Stat. 590, 672

(U. S.C Title 19, ch. 4) and shall be treated for the purposes of all

provisions of law relating to the customs revenue as a duty imposed by such Act, except that for the purposes of sections 336 and

350 of such Act (the so-called flexible-tariff and trade-agreements
106 SUGAR ACT OF 1948, AS AMENDED

provisions) such, tax shall not be considered a duty or import restriction, and except that no preference with respect to such tax shall

be accorded any articles imported or brought into the United States

(26U. S.C.3501).

SUBCHAPTER C—GENERAL PROVISIONS

SEC. 3506. PENALTY FOR OFFICIALS INVESTING OR

SPECULATING IN SUGAR.

No person shall, while acting in any official capacity in the administration of this chapter, invest or speculate in sugar or liquid sugar,

contracts relating thereto, or the stock or membership interests of

any association or corporation engaged in the production or manufacturing of sugar or liquid sugar. Any person violating this section

shall upon conviction thereof be fined not more than $10,000 or

imprisoned not more than 2 years, or both (26 U. S. C. 3506).

SEC. 3507. DEFINITIONS.

For the purposes of this chapter—

(a) PERSON.—The term "person" means an individual, partnership, corporation, or association (26 U. S. C. 3507 (a) ).

(b) MANUFACTURED SUGAR.—The term "manufactured

sugar" means any sugar derived from sugar beets or sugarcane, which

is not to be, and which shall not be, further refined or otherwise improved in quality ; except sugar in liquid form which contains nonsugar solids (excluding any foreign substance that may have been

added or developed in the product) equal to more than 6 per centum

of the total soluble solids, and except also sirup of caiie juice produced

from sugarcane grown in continental United States.

The grades or types of sugar within the meaning of this definition

shall include, but shall not be limited to, granulated sugar, lump sugar,

cube sugar, powdered sugar, sugar in the form of blocks, cones, or

molded shapes, confectioners' sugar, washed sugar, centrifugal sugar,

clarified sugar, turbinado sugar, plantation white sugar, moscovado

sugar, refiners' soft sugar, invert sugar mush, raw sugar, sirups, molasses, and sugar mixtures (26 U. S. C. 3507 (b) ).

(c) TOTAL SUGARS.—The term "total sugars" means the total

amount of the sucrose (Clerget) and of the reducing or invert sugars.

The total sugars contained in any grade or type of manufactured sugar

shall be ascertained in the manner prescribed in paragraphs 758, 759,

762, and 763 of the United States Customs Regulations (1931 edition)

(26 U.S.C. 3507(c)).

(d) UNITED STATES.—The term "United States" shall be

deemed to include the States, the Territories of Hawaii and Alaska,

the District of Columbia, and Puerto Rico (26 U. S. C. 3507 (d) ).

SEC. 3508. TERMINATION OF TAXES.

No tax shall be imposed under this chapter on the manufacture, use,

or importation of sugar or articles composed in chief value of sugar

after June 30, 1957. Notwithstanding the provisions of section 3490

or 3500, no tax shall be imposed under this chapter with respect to

unsold sugar held by a manufacturer on June 30,1957, or with respect

to sugar or articles composed in chief value of sugar held in customs

custody or control on such date.

With respect to any sugar or articles composed in chief value of

sugar upon which tax imposed under section 3500 has been paid and
SUGAR ACT OF 1948, AS AMENDED 107

which, on June 30, 1957, are held by the importer and intended for

sale or other disposition, there shall be refunded (without interest)

to such importer, subject to such regulations as may be prescribed by

the Commissioner of Customs with the approval of the Secretary, an

amount equal to the tax paid with respect to such sugar or articles

composed in chief value of sugar (26 U. S. C. 3508).
PRICE SUPPORT

EXPLANATORY NOTE

Price support directly to producers was first made available in

1933 by loans to cotton and corn producers by the Commodity Credit

Corporation, which was incorporated on October 17, 1933, under the

laws of Delaware in accordance with Executive Order No. 6340. In

the Agricultural Adjustment Act of 1938 (52 Stat. 31), the Congress

enacted the first comprehensive legislation dealing with price support.

Additional legislation thereafter included the act of April 3, 1941

(55 Stat 90), the act of May 26, 1941 (55 Stat. 203), the act of July

1,1941 (the so-called "Steagall Amendment," 55 Stat. 498), the Stabilization Act of 1942 (56 Stat. 767), the act of July 28, 1945 (59 Stat.

506), and the act of August 5, 1947 (61 Stat. 769). Much of this

legislation expired with the termination of the war-time emergency

and was succeeded by the Agricultural Act of 1948 (62 Stat. f247).

The Agricultural Act of 1949 (7 U. S. C. § 1421) superseded or repealed prior legislation, effective for the 1950 and subsequent crop

years. Throughout the periods discussed, the Commodity Credit

Corporation has been the chief instrumentality in making price support available to producers. In 1948 a Federal Charter (15 U. S. C.

§ 714) for the Commodity Credit Corporation was granted and replaced its Delaware charter.^ Another means of effecting price support is through operations under section 32 of the act of August 24,

1935, as amended (7 U. S. C. § 612c).

^ See p. 127 for a legal history of the Commodity Credit Corporation.

108
PART V

PRICE SUPPORT

AGRICULTURAL ACT OF 1949, AS AMENDED

AN ACT

To stabilize prices of agricultural commodities.

Be it enacted hy the Senate and House of Bepresentatives of the

united States of America in Congress assembled^ That this Act may

be cited as the "Agricultural Act of 1949."

TITLE I—BASIC AGEICULTUEAL COMMODITIES

SEC. 101. The Secretary of Agriculture (hereinafter called the

"Secretary") is authorized and directed to make available through

loans, purchases, or other operations, price support to cooperators for

any crop of any basic agricultural commodity, if producers have not

disapproved marketing quotas for such crop, at a level not in excess

of 90 per centum of the parity price of the commodity nor less than

the level provided in subsections (a), (b),and (c) as follows:

(a) For tobacco (except as otherwise provided herein), corn, wheat,

and rice, if the supply percentage as of the beginning of the marketing

year is :

The level of support shall

be not less than the

following percentage of

the parity price:

Not more than 102 ^-. 90

More than 102 but not more than 104 89

More than 104 but not more than 106 88

More than 106 but not more than 108 87

More than 108 but not more than 110 ^- 86

More than 110 but not more than 112 85

More than 112 but not more than 114 ^ 84

More than 114 but not more than 116 83

More than 116 but not more than 118 82

More than 118 but not more than 120 81

More than 120 but not more than 122 _— 80

More than 122 but not more than 124 79

More than 124 but not more than 126 78

More than 126 but not more than 128 77

More than 128 but not more than 130 76

More than 130 75

(7U.S.C.1441 (a)),

109
lio AGRICULTURAL ACT OF 1949, AS AMENDED

(b) For cotton and peanuts, if the supply percentage as of the beginning of the marketing year is :

The level of support shall

be not less than the

folloiring percentage of

the parity price:

Not more than 108 90

More than 108 bnt not more than 110 89

More than 110 but not more than 112 _ 88

More than 112 but not more than 114-___ 87

More than 114 but not more than 116 ^ 86

More than 116 but not more than 118 85

More than 118 but not more than 120 84

More than 120 but not more than 122 83

More than 122 but not more than 124 82

More than 124 but not more than 125 81

More than 125 but not more than 126 80

More than 126 but not more than 127 ^ 79

More than 127 but not more than 128 78

More than 128 but not more than 129 77

More than 129 but not more than ISO— 76

More than 130 75

(7U. S.C. 1441 (b)).

(c) For tobacco, if marketing quotas are in effect, the level of support shall be 90 per centum of the parity price (7 U. S. C. 1441 (c) ).

(d) Notwithstanding the foregoing provisions of this section—

(1) if producers have not disapproved marketing quotas for

such crop, the level of support to cooperators shall be 90 per

centum of the parity price for the 1950 crop of any basic agricultural commodity for which marketing quotas or acreage allotments are in effect;

(2) if producers have not disapproved marketing quotas for

such crop, the level of support to cooperators shall be not less than

80 per centum of the parity price for the 1951 crop of any basic

agricultural commodity for which marketing quotas or acreage

allotments are in effect ;

(3) the level of price support to cooperators for any crop of

a basic agricultural commodity, except tobacco, for which marketing quotas have been disapproved by producers shall be 50 per

centum of the parity price of such commodity ; and no price support shall be made available for any crop of tobacco for which

marketing quotas have been disapproved by producers;

(4) the level of price support for corn to cooperators outside

the commercial corn-producing area shall be 75 per centum of the

level of price support to cooperators in the commercial corn-producing area;

(5) price support may be made available to noncooperators at

such levels, not in excess of the level of price support to cooperators, as the Secretary determines will facilitate the effective operation of the program.

(6) the level of support of cooperators shall be 90 per centum

of the parity price for the 1953 and 1954 crops of any basic agricultural commodity with respect to which producers have not

disapproved marketing quotas (7 U. S. C. 1441 (d), Public Law

585, 82d Cong., approved July 17, 1952, m Stat. 759).

(e) Notwithstanding any of the provisions of this Act, section 2

of the Act of July 28, 1945 (59 Stat. 506) shall continue in effect

(7 U. S.C. 1441 (e)).
AGRICULTURAL ACT OF 1949, AS AMENDED 111

[LOANS ON TOBACCO—Act of July 28,1945.—Sec. 2. Notwitlistanding any other provision of law, the Commodity Credit Corporation is

authorized and directed, beginning with the 1945 crop, to make available upon any crop of fire-cured, dark air-cured and Virginia suncured tobacco, if producers have not disapproved marketing quotas

for such tobacco for the marketing year beginning with the calendar

year in which such crop is harvested, loans or other price support at,

in the case of fire-cured tobacco, 75 per centum of the loan rate for

burley tobacco for the corresponding crop and, in the case of dark

air-cured and Virginia sun-cured tobacco, at 66% per centum of such

burley tobacco loan rate (Public Law 163, 79th Cong., 7 U. S. C. 1312

Note).]

(f) The provisions of this Act relating to price support for cotton

shall apply severally to (1) American upland cotton and (2) extra

long staple cotton described, in subsection (a) and ginned as required

by subsection (e) of section 347 of the Agricultural Adjustment Act

of 1938, as amended, except that the level of price support which

shall be made available to cooperators for extra long staple cotton of

the 1953 crop if producers have not disapproved marketing quotas

therefor shall be at a level bearing the same relationship to the level

of price support determined for American upland cotton as the average farm price for extra long staple cotton during the period 1936-42,

inclusive, bore to such price for American upland cotton. Disapproval by producers of the quota proclaimed under such section 347

shall place into effect the provisions of section 101 (d) (3) of this Act

with respect to the extra long staple cotton described in subsection

(a) of such section 347. Nothing contained herein shall affect the authority of the Secretary under section 402 to make support available

for extra long staple cotton in accordance with such section 402 (Public Law 585, 82d Cong., approved July 17, 1952, 66 Stat. 759).

[DEFENSE PEODUCTION ACT or 1950.—Sec. 402 (d) (3) * * *

Nothing contained in this Act shall be construed to modify, repeal,

supersede, or affect the provisions of either (1) the Agricultural Act

of 1949, except that under any price support program announced

while this title is in effect the level of support to cooperators shall be

90 per centum of the parity price, or such higher level as may be established under section 402 of that Act, for any crop of any basic agricultural commodity with respect to which producers have not disapproved marketing quotas * * * (50 tl. S. C. app. 2102, Public

Law 429, 82d Cong., approved June 30, 1952, 66 Stat. 298).]

TITLE II—DESIGNATED NONBASIC AGßlCÜLTUKAL

COMMODITIES

SEC. 201. The Secretary is authorized and directed to make available (without regard to the provisions of title III) price support to

producers for wool (including mohair), tung nuts, honey, Irish potatoes, milk, butterfat, and the products of milk and butterfat as

follows :

(a) The price of wool (including mohair) shall be supported

through loans, purchases, or other operations at such level, not in excess of 90 per centum nor less than 60 per centum of the parity price

therefor, as the Secretary determines necessary in order to encourage
112 AGRICULTURAL ACT OF 1949, AS AMENDED

an annual production of approximately 360,000,000 pounds of shorn

wool ;

(b) The price of tung nuts, honey, and early, intermediate, and

late Irish potatoes, respectively, shall be supported through loans,

purchases, or other operations at a level not in excess of 90 per centum

nor less than 60 per centum of the parity price therefor ;

(c) The price of whole milk, butterfat, and the products of such

commodities, respectively, shall be supported at such level not in

excess of 90 per centum nor less than 75 per centum of the parity price

therefor as the Secretary determines necessary in order to assure an

adequate supply. Such price support shall be provided through loans

on, or purchases of, the products of milk and butterfat (T Ü. S. C.

1446).

[PUBLIC LAW 471, Eighty-first Congress * * * Sec. 5. For

the crop year of 1951 and thereaiter no price support shall be made

available for any Irish potatoes unless marketing quotas are in effect

with respect to such potatoes (7 U. S. C. 1450) .J

TITLE III—OTHER NONBASIC AGHICULTUKAL

COMMODITIES

SEC. 301. The Secretary is authorized to make available through

loans, purchases, or ether operations price support to producers for

any nonbasic agricultural commodity not designated m title II at a

level not in excess of 90 per centum of the parity price for the commodity (7 U. S. C. 141-7).

SEC. 302. Without restricting price support to those commodities

for which a marketing quota or marketing agreement or order program is in etfect, price support shall, insofar ab feasible, be made

available to producers of any storable nonbasic agricultural commodity for which such a program is in effect and who are complying

with such program. The level of such support shall not be in excess

of 90 per centum of the parity price of such commodity nor less than

the level provided in the following table :

If the supply percentage as of the beginning of the marketing

year is:

The level of support shall

be not les» than the

foïloicing percentage of

the parity price:

Not more than 102 90

More than 102 but not more than 104 89

More than 104 but not more than 106 88

More than 106 but not more than lOî?- ^7

More than 108 but not more than 110— 86

More than 110 but not more than 112 85

More than 112 but not more than 114 84

More than 114 but not more than 116 '. 83

More than 116 but not more than 118 82

More than 118 but not more than 120 81

More than 120 but not more than 122 80

More than 122 but not more than 124 79

More than 124 but not more than 126 78

More than 126 but not more than 128 77

More than 128 but not more than 130 76

More than 130 75

Provided^ That the level of price support may be less than the minimum level provided in the foregoing table if the Secretary, after

examination of the availability of funds for mandatory price support
AGRICULTURAL ACT OF 1949, AS AMENDED 113

programs and consideration of the other factors specified in section

401 (b), determines that such lower level is desirable and proper

(7U.S. a 1448). ^ ^ .

SEC. 303. In determining the level of price support for any nonbasic

agricultural commodity under this title, particular consideration shall

be given to the levels at which the prices of competing agricultural

commodities are being supported (7 U. S. C. 1449).

TITLE IV—MISCELLANEOUS

SUPPORT THROUGH CGC

SEC. 401. (a) The Secretary shall provide the price support authorized or required herein through the Commodity Credit Corporation

and other means available to him (7 U. S. C. 1421 (a) ).

FACTORS

(b) Except as otherwise provided in this Act, the amounts, terms,

and conditions of price support operations and the extent to which

such operations are carried out, shall be determined or approved by

the Secretary. The following factors shall be taken into consideration

m determining, in the case oí any commodity for which price support

is discretionary, whether a price-support operation shall be undertaken and the level of such support and, in the case of any commodity

for which price support is mandatory, the level of support in excess of

the minimum level prescribed for such commodity: (1) the supply of

the commodity in relation tc the demand therefor, (2) the price levels

at which other commodities are being supported and, in the case of

feed grains, the feed values of such grains in relation to corn, (3) the

availability of funds, (4) the perishability of the commodity, (5) the

importance of the commodity to agriculture and the national economy,

(6) the ability to dispose of stocks acquired through a price-support

operation, (7) the need for offsetting temporary losses of export

markets, and (8) the ability and willingness of producers to keep supplies in line with demand (7 U. S. C. 1421 (b) ).

COMPLIANCE WITH ACREAGE ALLOTMENTS, GOALS, AND MARKETING

PRACTICES

(c) Compliance by the producer with acreage allotments, production goals and marketing practices (including marketing quotas when

authorized by law), prescribed by the Secretary, may be required as a

condition of eligibility for price support (7 U. S. C. 1421 (c)).

DETERMINATION OF SUPPORT LEVEL

(d) The level of price support for any commodity shall be determined upon the basis of its parity price as of the beginning of the

marketing year or season in the case of any commodity marketed on a

marketing year or season basis and as of January 1 in the case of any

other commodity (7 U. S. C. 1421 (d) ).

SUPPORT AT INCREASED LEVEL

SEC 402. Notwithstanding any other provision of this Act, price

support at a level in excess of the maximum level of price support

otherwise prescribed in this Act may be made available for any agri-
114 AGRICULTURAL ACT OF 1949; AS AMENDED

cultural commodity if the Secretary determines, after a public hearing of which reasonable notice has been given, that price support at

such increased level is necessary in order to prevent or alleviate a shortage in the supply of any agricultural commodity essential to the national welfare or in order to increase or maintain the production of

any agricultural commodity in the interest of national security. The

Secretary's determination and the record of the hearing shall be available to the public (7 Ü. S. C. 1422).

ADJUSTMENTS FOR GRADE, ETC.

SEC. 403. Appropriate adjustments may be made in the support

price for any commodity for differences in grade, type, staple, quality,

location, and other factors. Such adjustments shall, so far as practicable, be pciade in such manner that the average support price for

such commodity will, on the basis of the anticipated incidence of such

factors, be equal to the level of support determined as provided in

this Act. Middling yg-îi^ch cotton shall be the standard grade for

purposes of parity and price support (7 Ü. S. C. 1423).

UTILIZATION OF SERVICES AND FACILITIES OF CCC

SEC. 404. The Secretary, in carrying out programs under section

32 of Public Law No. 320, Seventy-fourth Congress, approved

August 24, 1935, as amended, and section 6 of the National School

Lunch Act may utilize the services and facilities of the Commodity

Credit Corporation (including but not limited to procurement by

contract), and make advance payments to it (7 Ü. S. C. 1424).

NONRECOURSE LOANS

SEC. 405. No producer shall be personally liable for any deficiency

arising from the sale of the collateral securing any loan made under

authority of this Act unless such loan was obtained through fraudulent representations by the producer. This provision shall not, however, be construed to prevent the Commodity Credit Corporation or

the Secretary from requiring producers to assume liability for deficiencies in the grade, quality, or quantity of commodities stored on

the farm or delivered by them, for failure properly to care for and

preserve commodities, or for failure or refusal to deliver commodities

in accordance with the requirements of the program (7 U. S. C. 1425).

ADVANCE ANNOUNCEMENT

SEC. 406. The Secretary shall, insofar as practicable, announce

the level of price support for field crops in advance of the planting

season and for other agricultural commodities in advance of the

beginning of the marketing year or season (January 1 in the case

of commodities not marketed on a marketing year or season basis),

but the level of price support so announced shall not exceed the estimated maximum level of price support specified in this Act, based

upon the latest information and statistics available to the Secretary

when such level of price support is announced ; and the level of price

support so announced shall not be reduced if the maximum level of
AGRICULTURAL ACT OF 1949, AS AMENDED 115

price support when determined, is less than the level so announced

(7U. S. C. M26).

^ RESTRICTIONS ON SALES BY CCC

SEC. 407. The Commodity Credit Corporation may sell any farm

commodity owned or controlled by it at any price not prohibited by

this section. In determining sales policies for basic agricultural

commodities or storable nonbasic commodities, the Corporation should

give consideration to the establishing of such policies with respect to

prices, terms, and conditions as it determines will not discourage or

deter manufacturers, processors, and dealers from acquiring and carrying normal inventories of the commodity of the current crop. The

Corporation shall not sell any basic agricultural commodity or storable nonbasic commodity at less than 5 per centum above the current

support price for such commodity, plus reasonable carrying charges.

The foregoing restrictions shall not apply to (A) sales for new or byproduct uses; (B) sales of peanuts and oilseeds for the extraction of

oil; (C) sales for seed or feed if such sales will not substantially impair

any price-support program; (D) sales of commodities which have

substantially deteriorated in quality or as to which there is a danger of

loss or waste through deterioration or spoilage; (E) sales for the purpose of establishing claims arising out of contract or against persons

who have committed fraud, misrepresentation, or other wrongful acts

with respect to the commodity; (F) sales for export; (G) sales of

wool; and (H) sales for other than primary uses (7 U. S. C. 1427).

DEFINITIONS

SEC. 408. For the purposes of this Act—

STORABLE COMMODITIES

(a) A commodity shall be considered storable upon determination

by the Secretary that, in normal trade practice, it is stored for substantial periods of time and that it can be stored under the pricesupport program without excessive loss through deterioration or

spoilage or without excessive cost for storage for such periods as

will permit its disposition without substantial impairment of the

effectiveness of the price-support program (7 U. S. C. 1428 (a)).

COOPERATOR

(b) A "cooperator" with respect to any basic agricultural commodity shall be a producer on whose farm the acreage planted to the

commodity does not exceed the farm acreage allotment for the commodity under title III of the Agricultural Adjustment Act of 1938, as

amended, or in the case of price support for corn to a producer outside

the commercial corn-producing area, a producer who complies with

conditions of eligibility prescribed by the Secretary. For the purpose of this subsection, a producer shall not be deemed to have exceeded his farm acreage allotment unless such producer knowingly

exceeded such allotment (7 U. S. C. 1428 (b) ).
116 AGRICULTURAL ACT OF 1949, AS AMENDED

BASIC AGRICULTURAL COMMODITY

(c) A "basic agricultural commodity" shall mean corn, cotton, peanuts, rice, tobacco, and wheat, respectively (7 U. S. C. 1428 (c) ).

NONBASIC AGRICULTURAL COMMODITY

(d) A "nonbasic agricultural commodity" shall mean any agricultural commodity other than a basic agricultural commodity (7 U. S, C.

1428 (d)).

SUPPLY PERCENTAGE

(e) The "supply percentage" as to any commodity shall be the percentage which the estimated total supply is of the normal supply as

determined by the Secretary from the latest available statistics of the

Department of Agriculture as of the beginning of the marketing year

for the commodity (7 U. S. C. 1428 (e) ).

TOTAL SUPPLY

(f) "Total supply" of any nonbasic agricultural commodity for any

marketing year shall be the carry-over at the beginning of such marketing year, plus the estimated production of the commodity in the

United States during the calendar year in which such marketing year

begins and the estimated imports of the commodity into the United

States during such marketing year (7 U. S. C. 1428 (f) )•

CARRYOVER

(g) "Carry-over" of any nonbasic agricultural commodity for any

marketing year shall be the quantity of the commodity on hand in the

United States at the beginning of such marketing year, not including

any part of the crop or production of such commodity which was produced in the United States during the calendar year then current. The

carry-over of any such commodity may also include the quantity of

such commodity in processed form on hand in the United States at the

beginning of such marketing year, if the Secretary determines that

the inclusion of such processed quantity of the commodity is necessary to effectuate the purposes of this Act (7 U. S. C. 1428 (g) ).

NORMAL SUPPLY

(h) "JN'ormal supply" of any nonbasic agricultural commodity for

any marketing year shall be (1) the estimated domestic consumption

of the commodity for the marketing year for which such normal supply is being determined, plus (2) the estimated exports of the commodity for such marketing year, plus (3) an allowance for carry-over.

The allowance for carry-over shall be the average carry-over of the

commodity for the five marketing years immediately preceding the

marketing year in which such normal supply is determined, adjusted

for surpluses or deficiencies caused by abnormal conditions, changes in

marketing conditions, or the operation of any agricultural program.

In determining normal supply, the Secretary shall make such adjustments for current trends in consumption and for unusual conditions

as he may deem necessary (7 U. S. C. 1428 (h) ).
AGRICULTURAL ACT OF 1949, AS AMENDED 117

MARKETING YEAR

(i) ''Marketing year" for any nonbasic agricultural commodity

means any period determined by the Secretary during whicli substantially all of a crop or production of such commodity is normally marketed by the producers thereof (7 U. S. C. 1428 (i) ).

TERMS DEFINED IN AGRICULTURAL ADJUSTMENT ACT OF 1938

(j) Any term defined in the Agricultural Adjustment Act of 1938,

shall have the same meaning when used in this Act (7 U. S. C.

1428 (j)).

SEC. 409. [This section contains amendments to the ' Agricultural

Adjustment Act of 1938. These amendments are included in that

act, as it appears in this compilation.]

SEC. 410. [This section contains an amendment to section 4 of the

act of March 8, 1938 (15 U. S. C. 7l3a-4) relating to the borrowing

power of the Commodity Credit Corporation.]

SEC. 411. [This section contains an amendment to section 32 of the

act of August 24, 1935 (7 U. S. C. 612c). This act appears in part

VII of this compilation.]

DETERMINATIONS BY SECRETARY

SEC. 412. Determinations made by the Secretary under this Act

shall be final and conclusive : Provided^ That the scope and nature of

such determinations shall not be inconsistent with the provisions of

the Commodity Credit Corporation Charter Act (7 U. S. C. 1429).

SECS. 413 to 415. [These sections contain provisions relating to the

effective date of certain provisions of the Agricultural Act of 1949

and the Agricultural Act of 1948, as well as amendments to the Agricultural Act of 1948 and the Agricultural Adjustment Act of 1938.

The amendments to the Agricultural Adjustment Act of 1938 are included in that act as it appears in this compilation.]

SEC. 416. In order to prevent the waste of food commodities acquired through price support operations which are found to be in

danger of loss through deterioration or spoilage before they can be

disposed of in normal domestic channels without impairment of the

price support program, the Secretary of Agriculture and the Commodity Credit Corporation are authorized, upon application by the

Munitions Board or any other Federal agency and on such terms and

under such regulations as may be deemed in the public interest, to

make such commodities available to any such agency for use in making

payment for commodities not produced in the united States. Any

such commodities which are not disposed of pursuant to the foregoing

' sentence may be made available by the Secretary and the Commodity

Credit Corporation at the point of storage at no cost, save handling

and transportation costs incurred in making delivery from the point

of storage, as follows in the order of priority set forth : First, to schoollunch programs; and to the Bureau of Indian Affairs and Federal,

State, and local public welfare organizations for the assistance of

needy Indians and other needy persons; second, to private welfare

organizations for the assistance of needy persons within the United

States; third, to private welfare organizations for the assistance of

needy persons outside the united States (7 Ü. S. C. 1431).
118 AGRICULTURAL ACT OF 1949, AS AMENDED

SEC. 417. [This section contains amendments to sections 34 and 41

of the Farm Credit Act of 1933, as amended, relating to financing

storage construction (12 U. S. C. 1134j, 1134c).]

SECS. 418 and 419. [These sections contain amendments to the Agricultural Adjustment Act of 1938. These amendments are included

in that act as it appears in this compilation.]

SEC. 420. Any price support program in effect on cottonseed or any

of its products shall be extended to the same seed and products of the

cottons defined under section 347 (a) of the Agricultural Adjustment

Act of 1938, as amended (Public Law 585, 82d Cong., approved July

17,1952, 66 Stat. 759).
COMMODITY CREDIT CORPORATION CHARTER ACT 119

COMMODITY CREDIT CORPORATION CHARTER ACT

AN ACT

To provide a Federal Charter for the Commodity Credit Corporation.

Be it enacted iy the Senate and House of Representatives of the

united States of America in Congress assembled^ That this Act may

be cited as the "Commodity Credit Corporation Charter Act."

SEC. 2. CREATIGlSr AND PUEPOSES.—For the purpose of stabilizing, supporting, and protecting farm income and prices, of assisting in the maintenance of balanced and adequate supplies of agricultural commodities, products thereof, foods, feeds, and fibers (hereinafter collectively referred to as "agricultural commodities"), and of

facilitating the orderly distribution of agricultural commodities, there

is hereby created a body corporate to be known as Commodity Credit

Corporation (hereinafter referred to as the "Corporation"), which

shall be an agency and instrumentality of the United States, within

the Department of Agriculture, subject to the general supervision and

direction of the Secretary of Agriculture (hereinafter referred to as

the "Secretary") (15 U. S. C. 714).

SEC. 3. OFFICES.—The Corporation may establish ofEces in such

place or places as it may deem necessary or desirable in the conduct

of its business (15 U. S. C. 7l4a).

SEC. 4. GENERAL POWEES.—The Corporation—

(a) Shall have succession in its corporate name (15 U. S. C. 7l4b

(a)).

(b) May adopt, alter, and use a corporate seal, which shall be

judicially noticed ( 15 U. S. C. 714b (b) ).

(c) May sue and be sued, but no attachment, injunction, garnishment or other similar process, mesne or final, shall be issued against

the Corporation or its property. The district courts of the United

States, including the district courts of the District of Columbia and

of any Territory or possession, shall have exclusive original jurisdiction, without regard to the amount in controversy, of all suits brought

JDy or against the Corporation : Prom^eá, That the Corporation may

intervene in any court in any suit, action, or proceeding in which it has

an interest. Any suit against the Corporation shall be brought in the

District of Columbia, or in the district wherein the plaintiff resides

or is engaged in business. No suit by or against the Corporation shall

be allowed unless (1) it shall have been brought within 6 years after

the right accrued on which suit is brought, or (2) in the event that

the person bringing such suit shall have been under legal disability

or beyond the seas at the time the right accrued, the suit shall have

been brought within 3 years after the disability shall have ceased or

within 6 years after the right accrued on which suit is brought,

whichever period is longer. The defendant in any suit by or against

the Corporation may plead, by way of set-off or counterclaim, any

cause of action, whether arising out of the same transaction or not,

which would otherwise be barred by such limitation if the claim upon

which the defendant's cause of action is based had not been barred

prior to the date that the plaintiff's cause of action arose : Provided^

That the defendant shall not be awarded a judgment on any such

224946»—52- 9
120 COMMODITY CREDIT CORPORATION CHARTER ACT

set-off or counterclaim for any amount in excess of the amount of the

plaintiff's claim established in the suit. All suits against the Corporation shall be tried by the court without a jury. Notwithstanding

any other provision of this Act, the Federal Tort Claims Act (Public

Law 601, 79th Cong.) shall be applicable to the Corporation. Any

suit by or against the United States as the real party in interest based

upon any claim by or against the Corporation shall be subject to the

provisions of this subsection (c) to the same extent as though such

suit were by or against the Corporation, except that (1) any such

suit against the United States based upon any claim of the type

enumerated in title 28, section 1491, of the United States Code, may be

brought in the United States Court of Claims, and (2) no such suit

against the United States may be brought in a district court unless

such suit might, without regard to the provisions of this Act, be

brought in such court (15 U. S. C. 714b (c) ).

(d) May adopt, amend, and repeal bylaws, rules, and regulations

governing the manner in which its business may be, conducted and the

powers vested in it may be exercised (15 U. S. C. 7l4b (d) ).

(e) Shall have all the rights, privileges, and immunities of the

United States with respect to the right to priority of payment with

respect to debts due from insolvent, deceased, or bankrupt debtors.

The Corporation may assert such rights, privileges, and immunities in

any suit, action, or proceeding (15 U. S. C. 714b (e) ).

(f) Shall be entitled to the use of the United States mails in the

same manner and upon the same conditions as the executive departments of the Federal Government (15 U. S. C. 7l4b (f) ).

(g) May enter into and carry out such contracts or agreements as

are necessary in the conduct of its business. State and local regulatory laws or rules shall not be applicable with respect to contracts or

agreements of the Corporation or the parties thereto to the extent that

such contracts or agreements provide that such laws or rules shall

not be applicable, or to the extent that such laws or rules are inconsistent with such contracts or agreements (15 U. S. C. 714b (g) ).

(h) May contract for the use, in accordance with the usual customs

of trade and commerce, of plants and facilities for the physical handling, storage, processing, servicing, and transportation of the agricultural commodities subject to its control. The Corporation shall have

power to acquire personal property necessary to the conduct of its

business but shall not have power to acquire real property or any

interest therein except that it may (a) rent or lease office space necessary for the conduct of its business and (b) acquire real property

or any interest therein for the purpose of providing storage adequate

to carry out effectively and efficiently any of the Corporation's programs, or of securing or discharging obligations owing to the Corporation, or of otherwise protecting the financial interests of the

Corporation : Provided^ That the authority contained in this subsection

(h) shall not be utilized by the Corporation for the purpose of acquiring real property, or any interest therein, in order to provide

storage facilities for any commodity unless the Corporation determines

that existing privately owned storage facilities for such commodity

in the area concerned are not adequate : Provided further^ That no refrigerated cold storage facilities shall be constructed or purchased

except with funds specifically provided by Congress for that purpose :

A'^d (provided further^ That nothing contained in this subsection (h)
COMMODITY CREDIT CORPORATION CHARTER ACT 121

shall limit the duty of the Corporation, to the maximum extent practicable consistent with the fulfillment of the Corporation's purposes

and the effective and efficient conduct of its business, to utilize the usual

and customary channels, facilities, and arrangements of trade and

commerce in the warehousing of commodities : And provided further,

Thatto encourage the storage of grain on farms, where it can be stored

at the lowest cost, the Corporation shall make loans to grain growers

needing storage facilities when such growers shall apply to the Corporation for financing the construction or purchase of suitable storage,

and these loans shall be deducted from the proceeds of price support

loans or purchase agreements made between the Corporation and the

growers. Notwithstanding any other provision of law, the Commodity Credit Corporation is authorized, upon terms and conditions

prescribed or approved by the Secretary of Agriculture, to accept

strategic and critical materials produced abroad in exchange for agricultural commodities acquired by the Corporation. Insofar as practicable, in effecting such exchange of goods, normal commercial trade

channels shall be utilized and priority shall be given to commodities

easily storable and those which serve as prime incentive goods to

stimidate production of critical and strategic materials. The determination of the quantities and qualities of such materials which

are desirable for stock piling and the determination of which materials

are strategic and critical shall be made in the manner prescribed by

section 2 of the Strategic and Critical Materials Stock Piling Act

(60 Stat. 596). Strategic and critical materials acquired by C<)mmodity Credit Corporation in exchange for agricultural commodities

shall, to the extent approved by the Munitions Board of the Department of Defense, be transferred to the stock pile provided for by the

Strategic and Critical Materials Stock Piling Act ; and when transferred to the stock pile the Commodity Credit Corporation shall be

reimbursed for the strategic and critical materials so transferred to

the stock pile from the funds made available for the purpose of the

Strategic and Critical Materials Stock Piling Act, in an amount equal

to the fair market value, as determined by the Secretary of the Treasury, of the material transferred to the stock pile. Nothing contained

herein shall limit the authority of the Commodity Credit Corporation

to acquire, hold, or dispose of such quantity of strategic and critical

materials as it deems advisable in carrying out its functions and

protecting its assets (15 U. S. C. 714b (h) ).

(i) May borrow money subject to any provision of law applicable

to the Corporation : Provided^ That the total of all money borrowed by

the Corporation, other than trust deposits and advances received on

sales, shall not at any time exceed in the aggregate $6,750,000,000.

The Corporation shall at all times reserve a sufficient amount of its

authorized borrowing power w^hich, together with other funds available to the Corporation, will enable it to purchase, In accordance with

its contracts with lending agencies, notes, or other obligations evidencing loans made by such agencies under the Corporation's programs

(15U. S.C.7l4b (i)).

(j ) Shall determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred,

allowed, and paid (15 Ü. S. C. 714b ( j ) ).
122 COMMODITY CREDIT CORPORATION CHARTER ACT

(k) Shall have authority to make final and conclusive settlement

and adjustment of any claims by or against the Corporation or the accounts of its fiscal officers (15 U. S. C. 714b (k) ).

(1) May make such loans and advances of its funds as are necessary

in the conduct of its business (15 U. S. C. 7l4b (1) ).

(m) Shall have such powers as may be necessary or appropriate for

the exercise of the powers specifically vested in the Corporation, and

all such incidental powers as are customary in corporations generally ;

but any research financed by the Corporation shall relate to the con- ,

servation or disposal of commodities owned or controlled by the Corporation and shall be conducted in collaboration with research agencies

of the Department of Agriculture (15 Ü. S. C. 7l4b (m) ).

SEC. 5. SPECIFIC POWEES.—In the fulfillment of its purposes

and in carrying out its annual budget programs submitted to and approved by the Congress pursuant to the Government Corporation

Control Act (31 U. S. C, 1940 edition, Supp. V, 841), the Corporation

is authorized to use its general powers only to^—

(a) Support the prices of agricultural commodities through loans,

purchases, payments, and other operations.

(b) Make available materials and facilities required in connection

with the production and marketing of agricultural commodities.

(c) Procure agricultural commodities for sale to other Government

agencies, foreign governments, and domestic, foreign, or international

relief or rehabilitation agencies, and to meet domestic requirements,

(d) Eemove and dispose of or aid in the removal or disposition

of surplus agricultural commodities.

(e) Increase the domestic consumption of agricultural commodities

by expanding or aiding in the expansion of domestic markets or by

developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities.

(f) Export or cause to be exported, or aid in the development of

foreign markets for, agricultural commodities.

(g) Carry out such other operations as the Congress may specifically authorize or provide for.

In the Corporation's purchasing and selling operations with respect

to agricultural commodities (except sales to other Government agencies), and in the warehousing, transporting, processing, or handling

of agricultural commodities, the Corporation shall, to the maximum

extent practicable consistent with the fulfillment of the Corporation's

purposes and the effective and efficient conduct of its business, utilize

the usual and customary channels, facilities, and arrangements of trade

and commerce (15 U. S. C. 714c).

SEC. 6. EXISTING STATUTES APPLICABLE TO THE CORPORATION.—The Federal statutes applicable to Commodity Credit

Corporation, a Delaware corporation, shall be applicable to the Corporation. Commodity Credit Corporation, a Delaware corporation,

shall cease to be an agency of the United States as provided in section

7 (a) of the Act of January 31, 1935, as amended (15 U. S. C, 1940

edition, Supp. V, 713 (a)J (15 U. S. C. 7l4d).

SEC. 7. CAPITAL STOCK.—The Corporation shall have a capital

stock of $100,000,000 which shall be subscribed by the United States.

Such subscription shall be deemed to be fully paid by the transfer of

assets to the Corporation pursuant to section 16 of this Act. The

Corporation shall pay interest to the Utiited States Treasury on. the
COMMODITY CREDIT CORPORATION CHARTER ACT 123

amount of its capital stock, and on the amount of the obligations of

the Corporation purchased by the Secretary of the Treasury pursuant

to the Act of March 8,1938 (tl. S. C, title 15, sec. 713a~4), as amended,

at such rates as may be determined by the Secretary of the Treasury

to be appropriate in view of the terms for which such amounts are

made available to the Corporation (15 U. S. C. 7l4e).

SEC. 8. FUNDS.—The Corporation is authorized to use in the conduct of its business all its funds and other assets, including capital and

net earnings therefrom, and all funds and other assets which have

been or may hereafter be transferred or allocated to, borrowed by, or

otherwise acquired by it (15 XJ. S. C. 7l4f).

SEC 9. DIEECTORS, ADVISORY BOARD: (a) The management of the Corporation shall be vested in a board of directors (hereinafter referred to as the "Board"), subject to the generalsupervision

and direction of the Secretary. The Secretary shall be an ex officio

director and shall serve as Chairman of the Board. The Board shall

consist of six members (in addition to the Secretary), who shall be

appointed by the President by and with the advice and consent of the

Senate. In addition to their duties as members of the Board, such

appointed members shall perform such other duties as may be prescribed by the Secretary. Each appointed member of the Board shall

receive compensation at such rate not in excess of the maximum then

payable under the [CLASSIFICATION ACT OF 1949], as may be fixed by

the Secretary, except that any such member who holds another office

or position under the Federal Government the compensation for which

exceeds such rate may elect to receive compensation at the rate provided for such other office or position in lieu of the compensation

provided by this section. A majority of the directors shall constitute

a quorum of the Board and action shall be taken only by a majority

vote of those present (15U. S. C.7l4g (a)).

(b) In addition to the Board of Directors there shall be an advisory

board reflecting broad agricultural and business experience in its

membership and consisting of five members who shall be appointed by

the President, and who shall serve at the pleasure of the President.

Not more than three of such members shall belong to the same political

party. The advisory board shall meet atthe call of the Secretary, who

shall require it to meet not less often than once each 90 days ; shall

survey the general policies of the Corporation, including its policies

in connection with the purchase, storage, and sale of commodities,

. and the operation of lending and price-support programs ; and shall

advise the Secretary with respect thereto. Members of the advisory

board shall receive for their services as members compensation of not

to exceed $50 per diem when actually engaged in the performance of

their duties as such, together with their necessary traveling expenses

while going to and coming from meetings (15 U. S. C. 7l4g (b) ).

SEC. 10. PERSONNEL OF CORPORATION.—The Secretary

shall appoint such officers and employees as may be necessary for the

conduct of the business of the Corporation, define their authority and

duties, delegate to them such of the powers vested in the Corporation

as he may determine, require that such of them as he may designate be

bonded and fix the penalties therefor. The Corporation may pay the

premium of any bond or bonds. With the exception of experts, appointments shall be made pursuant to the civil service laws and the
124 COMMODITY CREDIT CORPORATION CHARTER ACT

rClassification Act of 1949], (Ö U. S. C, 1946 edition, 661) (15 U. S. C.

7141i).

SEC. 11. COOPERATION WITH OTHER GOVERNMENTAL

AGENCIES.—The Corporation may, with the consent of the agency

concerned, accept and utilize, on a compensated or uncompensated

basis, the officers, employees, services, facilities, and information of

any agency of the Federal Government, including any bureau, office,

administration, or other agency of the Department of Agriculture, and

of any State, the District of Columbia, any Territory or possession,

or any political subdivision thereof. The Corporation may allot to

any bureau, office, administration, or other agency of the Department

of Agriculture or transfer to such other agencies as it may request to

assist it in the conduct of its business any of the funds available to it

for administrative expenses. The personnel and facilities of the

Corporation may, v^ith the consent of the Corporation, be utilized on a

reimbursable basis by any agency of the Federal Government, including any bureau, office, administration, or other agency of the Department of Agriculture, in the performance of any part or all of the

functions of such agency ( 15 U. S. C. 7l4i).

SEC. 12. UTILIZATION OF ASSOCIATIONS AND TRADE

FACILITIES.—The Corporation may, in the conduct of its business,

utilize on a contract or fee basis, committees or associations of producers, producer-owned and producer-controlled cooperative associations, and trade facilities (15 U. S. C. Tl4j).

SEC. 13. RECORDS; ANNUAL REPORT.—The Corporation

shall at all times maintain complete and accurate books of account

and shall file annually with the Secretary of Agriculture a complete

report as to the business of the Corporation, a copy of which shall be

forwarded by the Secretary of Agriculture to the President for transmission to the Congress (15 U. S. C. 714k).

SEC. 14. INTEREST OF MEMBERS OF THE CONGRESS.—

Thé provisions of section 1 of the Act of February 27,1877, as amended

(41 U. S. C, 1940 edition, 22), shall apply to all contracts or agreements of the Corporation, except contracts or agreements of a kind

which the Corporation may enter into with farmers participating in a

program of the Corporation (15 U. S. C. 7141).

SEC. 15. CRIMES AND OFFENSES.—

FALSE STATEMENTS ; OVERVALUATION OF SECURITIES

(a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of influencing

in any way the action of tl;ie Corporation, or for the purpose of obtaining for himself or another, money, property, or anything of value,

under this Act, or under any other Act applicable to the Corporation,

shall, upon conviction thereof, be punished by a fine of not more than

$10,000 or by imprisonment by not more than 5 years, or both (15

U.S.C.7l4m(a)).

EMBEZZLEMENT, AND SO FORTH: FALSE ENTRIES: FRAUDULENT ISSUE OF

OBLIGATIONS OF CORPORATION

(b) Whoever, being connected in any capacity with the Corporation

or any of its programs, (i) embezzles, abstracts, purloins, or willfully

misapplies any money, funds, securities, or other things of value.
COMMODITY CREDIT CORPORATION CHARTER ACT 125

wlietlier belonging to the Corporation or pledged or otherwise entrusted to it; or (li) with intent to defraud the Corporation, or any

other body, politic or corporate, or any individual, or to deceive any

officer, auditor, or examiner of the Corporation, makes any false

entry in any book, report, or statement of, or to, the Corporation,

or draws any order, or issues, puts forth or assigns any note or other

obligation or draft, mortgage, judgment, or decree thereof; or (iii)

with intent to defraud the Corporation, participates or shares in,

or receives directly or indirectly any money, profit, property, or benefits through any transaction, loan, commission, contract, or any other

act of the Corporation, shall, upon conviction thereof, be punished

by a fine of not more than $10,000 or by imprisonment for not more

than 5 years, or both (15 U. S. C. 714m (b) ).

LARCENY; CONVERSION OF PROPERTY

(c) Whoever shall willfully steal, conceal, remove, dispose of, or

convert to his own use or to that of another any property owned or

held by, or mortgaged or pledged to, the Corporation, shall, upon

conviction thereof, be punished by a fine of not more than $10,000

or by imprisonment for not more than 5 years, or both (15 U. S. C.

n4:m(c)).

CONSPIRACY TO COMMIT OFFENSE

(d) Whoever conspires with another to accomplish any of the acts

made unlawful by the preceding provisions of this section shall, upon

conviction thereof, be subject to the same fine or imprisonment, or

both, as is applicable in the case of conviction for doing such unlawful

acts (15U.S.C.714m (d)).

GENERAL STATUTES APPLICABLE

(e) All the general penal statutes relating to crimes and offenses

against the United States shall apply with respect to the Corporation, its property, money, contracts and agreements, employees, and

operations : Promded^ That such general penal statutes shall not apply

to the extent that they relate to crimes and offenses punishable under

subsections (a), (b), (c), and (d) of this section: Provided further^

That sections 114 and 115 of the Act of March 4, 1909, as amended

(18 U, S. C, 1940 edition, 204, 205), shall not apply to contracts or

agreements of a kind which the Corporation may enter into with

farmers participating in a program of the Corporation (15 U. S. C.

714m (e)).

USE OF WORDS "COMMODITY CREDIT CORPORATION"

(f) JS'o individual, association, partnership, or corporation shall

use the words "Commodity Credit Corporation" or any combination

of the same, as the name or a part thereof under which he or it shall

do or purport to do business. Every individual, partnership, association, or corporation violating this prohibition shall be guilty of

a misdemeanor and shall be punished by a fine of not more than $1,000

or by imprisonment for not more than 1 year, or both (15 U. S. C.

714m (f))
126 COMMODITY CREDIT CORPORATION CHARTER ACT

SEC. 16. TRANSFEE OF ASSETS OF COMMODITY CEEDIT

CORPORATION, A DELAWARE CORPORATION.—The assets,

funds, property, and records of Commodity Credit Corporation, a

Delaware corporation, are hereby transferred to the Corporation,

The rights, privileges, and powers, and the duties and liabilities of

Commodity Credit Corporation, a Delaware corporation, in respect to

any contract, agreement, loan, account, or other obligation shall become the rights, privileges, and powers, and the duties and liabilities,

respectively, of the Corporation. The enforceable claims of or

against Commodity Credit Corporation, a Delaware corporation, shall

become the claims of or against, and may be enforced by or against,

the Corporation: Provided^ That nothing in this Act shall limit or

extend any period of limitation otherwise applicable to such claims

against the Corporation (15 U. S. C. 714n).

SEC 17. DISSOLUTION OF DELAWARE CORPORATION.—

The Secretary of Agriculture, representing the United States as the

sole owner of the capital stock of Commodity Credit Corporation, a

Delaware corporation, is hereby authorized and directed to institute

or cause to be instituted such proceedings as are required for the dissolution of said Corporation under the laws of the State of Delaware.

The costs of such dissolution of said Corporation shall be borne,by

the Corporation (15 U. S. C. 714ö).

SEO. 18. EFFECTIVE DATE.—This Act shall take effect as of

midnight June 30,1948 (15 U. S. C. 714 Note).
COMMODITY CREDIT CORPORATION 127

COMMODITY CREDIT CORPORATION

SUMMARY: LEGAL HISTORY OF THE CORPORATION

The Commodity Credit Corporation was created on October 17,

1933, under the laws of the State of Delaware pursuant to Executive

Order No. 6340, dated October 16, 1933, issued by virtue of the authority vested in the President by section 2 (a) of the National Industrial Recovery Act of June 16, 1933 (48 Stat. 195). The act of

January 31, 1935, directed that the Corporation should "continue

until April 1, 1937, or such earlier date as may be fixed by the President by Executive Order, to be an agency of the united States." The

Corporation was continued until June 30, 1948, as an agency of the

united States by successive amendments to the act of January 31,

1935 (15 U. S. C. 713). By section 401 of the President's reorganization plan No. I (5 U. S. C. 133t, note), effective July 1,1939, the Corporation was made a part of the United States Department of Agriculture, and its operations were placed under the supervision and control of the Secretary of Agriculture.

The Commodity Credit Corporation was originally capitalized for

$3,000,000 subscribed by the Secretary of Agriculture and the Governor

of the Farm Credit Administration. The funds for such subscription were derived from the appropriation authorized by section 220

of the National Industrial Recovery Act (48 Stat. 210) and made by

the Fourth Deficiency Act, fiscal year 1933 (48 Stat. 274). In accordance with the act of April 10, 1936 (15 U. S. C. 713a), the Corporation's capitalization was increased to $100,000,000, the additional

$97,000,000 of the Corporation's stock being acquired by the Reconstruction Finance Corporation. By section 3 of the act of March 8,

1938 (15 U. S. C. 713a-3), the Secretary of Agriculture, the Governor

of the Farm Credit Administration, and the Reconstruction Finance

Corporation were directed to transfer the ownership of the stock of

the Corporation to the United States. That section also provided

that all rights of the United States arising out of the ownership of

such stock should be exercised by the President of the United States

or by such officers or agencies as he might designate. Executive Order

No. 8219, issued August 7, 1939 (4 F. R. 3565), transferred to the

Secretary of Agriculture the authority to exercise on behalf of the

United States all rights arising out of the ownership of the stock of

the Commodity Credit Corporation.

The Delaware charter of the Commodity Credit Corporation authorized the Corporation, among other things, to engage in buying,

selling, lending, and other activities with respect to agricultural commodities, products thereof, and related facilities. These charter

powers enabled the Corporation to engage in extensive operations for

the purpose of increasing production, stabilizing prices, assuring adequate supplies, and facilitating the efficient distribution of agricultural commodities, foods, feeds and fibers. Many of the Corporation's operations were carried out in response to specific congressional

mandates. In carrying out its operations, the Corporation was also

subject to certain specific limitations placed upon it by the Congress.

Section 304 (b) of the Government Corporation Control Act (31

U. S. C. 869) required that wholly-owned Government corporations

incorporated under State law be reincorporated by Act of the Congress in order to continue as agencies or instrumentalities of the

United States after June 30, 1948. Accordingly, the Commodity
128 COMMODITY CREDIT CORPORATION

Credit Corporation was incorporated as a Federal corporation by the

Commodity Credit Corporation Charter Act (Public Law 806, 80th

Cong., 62 Stat. 1070), effective as of midnight, June 30, 1948. Pursuant to the Charter Act and by appropriate action of the boards of

directors of the Delaware and the Federal corporations, all the assets,

funds, property and records of the Delaware corporation were transferred to the Federal corporation, and the rights and duties and liabilities of the Delaware corporation were assumed by the Federal

corporation.

The Charter Act also directed the dissolution of the Delaware corporation, and the Commodity Credit Corporation, a Delaware corporation, was dissolved under the laws of the State of Delaware, effective as of 9 a. m., September 15,1948.

The Charter Act incorporated the Federal corporation for substantially th3 same purposes which the Delaware corporation had served,

and made applicable to the Federal corporation the statutes which

had been applicable to the Delaware corporation.
PART VI

APPLICABLE APPROPRIATIONS

FISCAL YEAR 1947

CONSERVATION AND USE OF AGRICULTURAL LAND RESOURCES

For all expenses necessary to enable the Secretary to carry into

eifect the provisions of sections 7 to ,17, inclusive, of the Soil Conservation and Domestic Allotment Act, approved February 29, 1936, as

amended (16 U. S. C. 590g-590q), and the provisions of the Agricultural Adjustment Act of 1938, as amended (7 U. S. C. 1281-1407)

(except the provisions of sees. 201, 202, 303, 381, and 383 and the provisions of titles IV and V), including personal services in the District

of Columbia and elsewhere ; not to exceed $6,000 for the preparation

and display of exhibits, including such displays at State, interstate,

and international fairs within the United States; purchase of law-

•books, books of reference, periodicals; $259,246,000, together with

$42,500,000 of the unobligated balances for the fiscal years 1944,1945,

and 1946 of the funds appropriated by section 32 of the Act entitled

"An Act to amend the Agricultural Adjustment Act, and for other

purposes," approved August 24, 1935 (7 U. S. C. 612 (c)) ; in all,

$301,746,000, to remain available until December 31, 1947, for compliance with programs under said provisions of the Agricultural

Adjustment Act of 1938, as amended, and the Act of February 29,

1936, as amended, pursuant to the provisions of the 1946 programs

carried out during the period July 1, 1945, to December 31, 1946, inclusive, and, in addition, $12,500,000 for making additional payments

on an acreage and pound basis for harvesting seeds of grasses and

legumes determined by the Secretary to be necessary for an adequate

supply of such seeds; in all, $314,246,000: Provided^ That not to

exceed $27,942,888 of the total sum provided under this head shall be

available during the current fiscal year, for salaries and other administrative expenses for carrying out such programs, the cost of aerial

photographs, however, not to be charged to such limitation; but not

more than $7,886,480 shall be transferred to the appropriation account,

"Administrative expenses, section 392, Agricultural Adjustment Act

of 1938": Provided further^ That none of the funds herein appropriated or made available for the functions assigned to the Agricultural Adjustment Agency pursuant to the Executive order (No. 9069)

of February 23, 1942, shall be used to pay the salaries or expenses of

any regional information employees or any State or county information employees, but this shall not preclude the answering of inquiries

or supplying of information to individual farmers : Provided further^

That such amount shall be available for salaries and other administrative expenses in connection with the formulation and administration of the 1947 programs (amounting to $300,000,000, including

129
130 APPLICABLE APPROPRIATIONS

administration]) of soil-building practices and soil- and water-conservation practices, under the Act of February 29, 1936, as amended,

and programs under the Agricultural Adjustment Act of 1938, as

amended; but the payments or grants under such program shall be

conditioned upon the utilization of land with respect to which such

payments or grants are to be made, in conformity with farming practices which will encourage and provide for soil-building and soil- and

water-conserving practices in the most practical and effective manner

and adapted to conditions in the several States, as determined and

approved by the State agricultural conservation committee for the

respective States: Provided further^ That the Secretary, may, in his

discretion, from time to time transfer to the General Accounting Office

such sums as may be necessary to pay administrative expenses of the

General Accounting Office in auditing payments under this item:

Provided further^ That such amount shall be available for the purchase of seeds, fertilizers, lime, trees, or any other farming materials,

or any soil-terracing services, and making grants thereof to agricultural producers to aid them in carrying out farming practices approved by the Secretary in the 1946, 1947, and 1948 programs under

said Act of February 29,1936, as amended : Provided^ however^ That

the Secretary of Agriculture is authorized and directed to make payments to farmers who complied with the terms and conditions of the

agricultural conservation programs, formulated pursuant to sections

7 to 17, inclusive, of the Soil Conservation and Domestic Allotment

Act, as amended, if the Secretary determines that, because of induction into the armed forces of the United States, such farmers failed

to file, or were prevented from filing, applications for payment under

any such program during the period the applicable appropriation

for such program was available for obligation, such payments to

be made out of the unobligated balance of the appropriation, "Conservation and use of agricultural land resources," in the Department

of Agriculture Appropriation Act, 1946 : Provided further^ That an

application for payment on the prescribed form is filed by any such

farmer (or the person entitled to payment in case of death, disappearance, or incompetency of the farmer under regulations issued pursuant to section 385 of the Agricultural Adjustment Act of 1938, as

amended (7 U. S. C, 1940 edition, 1385) ) within 1 year from the date

of his discharge from the armed forces, or by December 31, 1946,

whichever is later : Provided further^ That no part of any funds available to the Department, or any bureau, office, corporation, or other

agency constituting a part of such Department shall be used in the

current fiscal year for the payment of salary or travel expenses of

any person who has been convicted of violating the Act entitled "An

Act to prevent pernicious political activities," approved August 2,

1939, as amended, or who has been found in accordance with the provisions of section 6 of the Act of July 11, 1919 (18 U. S. C. 201), to

have violated or attempted to violate such section which prohibits the

use of Federal appropriations for the payment of personal services

or other expenses designed to influence in any manner a Member of

Congress to favor or oppose any legislation or appropriation by Congress except upon request of any Member or through the proper official

channels (XJ. S. Dept. of Agriculture Appropriation Act, 1947, 60

Stat.288).
APPLICABLE APPROPRIATIONS 131

SUGAR ACT

To enable the Secretary to carry into effect the provisions, other than

those specifically relating to the Philippine Islands, of the Sugar Act

of 1937, approved September 1, 1937, as amended (7 U. S. C. 1100-

1183), including the employment of persons and means, in the District

of Columbia and elsewhere, as authorized by said Act, $53,500,000, to

remain available until June 30,1948 (Department of Agriculture Appropriation Act, 194:7, 60 Stat. 289).

EXPORTATION AND DOMESTIC CONSUMPTION OF AGRICULTURAL

COMMODITIES

To enable the Secretary to further carry out the provisions of section 32, as amended, of the Act entitled "An Act to amend the Agricultural Adjustment Act, and for other purposes," approved August

24, 1935 (7 U. S. C. 612 (c)), and subject to all provisions of law

relating to the expenditure of funds appropriated by such section 32,

there is hereby reappropriated for the fiscal year 1947 the unobligated

balances of the funds made available for the purposes of such section

32 for the fiscal years 1944, 1945, and 1946, less $42,500,000, which is

appropriated herein for "Conservation and use of agricultural land

resources." Such sums shall be in addition to, and not in substitution

for, other appropriations made by or for the purposes of such section

32 : Provided^ That not exceeding $75,000,000 of the funds appropriated by and pursuant to such section 32 may also be used during the

fiscal year 1947, without regard to the 25 per centum limitation contained in said section 32, to carry out the purposes and provisions of

the National School Lunch Act, approved June 4, 1946 (Public Law

396), such amount to be exclusive of funds expended in accordance

with the last sentence of section 9 of the National School Lunch Act

(Department of Agriculture Appropriation Act,,1947, 60 Stat. 289).

FEDERAL CROP INSURANCE CORPORATION

Operating expenses: For operating and administrative expenses,

$7,340,000, including not to exceed $700 for newspapers (Government

Corporations Appropriations Act, 1947, 60 Stat. 587).

COMMODITY CREDIT CORPORATION

Commodity Credit Corporation: Nothing in this Act shall be so

construed as to prevent the Commodity Credit Corporation from

carrying out any activity or any program authorized by law : Provided^ That not to exceed $8,760,000 shall be available for administrative expenses of the Corporation, including not to exceed $400 for

periodicals, maps, and newspapers, and not to exceed $30,000 for

penalty mail: Provided further^ That all necessary expenses (including legal and special services performed on a contract or fee basis, but

not including other personal services) in connection with the acquisition, operation, maintenance, improvement, or disposition of any real

or personal property belonging to the Corporation or in which it has

an interest, including expenses of collections of pledged collateral,

shall be considered as nonadministrative expenses for the purposes

hereof : Provided further^ That the Secretary of the Treasury is hereby
132 APPLICABLE APPROPRIATIONS

authorized and directed to discharge $921,456,561 of the indebtednesè

of the Commodity Credit Corporation to the Secretary of the Treasviry

by canceling notes in such amount issued by the Corporation to the

Secretary of the Treasury pursuant to section 4 of the Act of March 8,

1938, as amended (15 U. S. C. 713a-4) (Government Corporations Appropriations Act, 1947, 60 Stat. 593).

FISCAL YEAR 1948

CONSERVATION AND USE OF AGRICULTURAL LAND RESOURCES

For expenses necessary to enable the Secretary to carry into effect

the provisions of sections 7 to 17, inclusive, of the Soil Conservation

and Domestic Allotment Act, approved February 29,1936, as amended

(16 U. S. C. 590g-590q), and the provisions of the Agricultural Adjustment Act of 1938, as amended (7 U. S. C. 1281-1407) (except the

provisions of sections 201, 202, 303, 381, and 383 and the provisions of

titles IV and V), including personal services in the District of Columbia; not to exceed $6,000 for the preparation and display of

exhiföts, including such displays at State, interstate, and international

fairs within the United States; $228,000,000, to remain available until

December 31, 1948, for compliance with programs under said provisions of the Agricultural Adjustment Act of 1938, as amended, and

the Act of February 29, 1936, as amended, pursuant to the provisions

of the 1947 programs carried out during the period July 1, 1946, to

December 31,1947, inclusive : Provided^ That not to exceed $24,500,000

of the total sum provided under this head shall be available during the

current fiscal year, for salaries and other administrative expenses for

carrying out such programs, including the peanut-marketing quota

program, the cost of aerial photographs, however, not to be charged

to such limitation; but not more than $7,080,813 shall be transferred

to the appropriation account, "Administrative expenses, section 392,

Agricultural Adjustment Act of 1938": Provided further^ That payments to claimants hereunder may be made upon the*certificate of the

claimant, which certificate shall be in such form as the Secretary may

prescribe, that he has carried out the conservation practice or practices

and has complied with all other requirements as conditions for such

payments and that the statements and information contained in the

application for payment are correct and true, to the best of his

knowledge and belief, under the penalties of the Act of March 4,1909,

as amended (18 U. S. C. 80) : Provided further^ That none of the

funds herein appropriated or made available for the functions assigned to the Agricultural Adjustment Agency pursuant to the

Executive Order No. 9069, of February 23, 1942, shall be used to pay

the salaries or expenses of any regional information employees or any

State or county information employees, but this shall not preclude the

answering of inquiries or supplying of information to individual

farmers : Provided further^ That such amount shall be available for

salaries and other administrative expenses in connection with the

formulation and administration of the 1948 programs (amounting to

$150,000,000, including administration, and formulated on the basis

of a distribution of the funds available for payments and grants

among the several States in accordance with their conservation needs

as determined by the Secretary : Provided further^ That the proportion allocated to any State shall not be reduced more than 15 per
APPLICABLE APPROPRIATIONS 133

centum from the 1946 distribution and that no participant shall receive

more than $500) of soil-building practices and soil- and waterconservation practices, under the Act of February 29,1936, as amended,

and programs under the Agricultural Adjustment Act of 1938, as

amended ; but the payments or grants under such program shall be

conditioned upon the utilization of land with respect to which such

payments or grants are to be made, in conformity with farming practices which will encourage and provide for soil-building and soil- and

water-conserving practices in the most practical and effective manner

and adapted to conditions in the several States, as determined and

approved by the State committee appointed pursuant to section 8 (b)

of the Soil Conservation and Domestic Allotment Act, as amended for

the respective States : Provided further^ That the Secretary may,^ in

his discretion, from time to time transfer to the General Accounting

OiEce such sums as may be necessary to pay administrative expenses

of said Office in auditing payments under this item : Provided further^

That such amounts shall be available for the purchase of seeds,

fertilizers, lime, trees, or any other farming materials, or any soilterracing services, and making grants thereof to agricultural producers to aid them in carrying out farming practices approved by the

Secretary under programs provided for herein: Provided further^

That the Secretary is authorized and directed to make payments to

farmers who complied with the terms and conditions of the agricultural conservation programs, formulated pur.^uant to sections 7 to IT,

inclusive, of the Soil Conservation and DoMestic Allotment Act, as

amended, if the Secretary determines that, because of induction into

the armed forces of the United States, such farmers failed to file,

or were prevented from filing, applications ïor payment under any

such program during the period the applicable appropriation for such

program was available for obligation, such payments to be made out

of the unobligated balance of the appropriation, "Conservation and

use of agricultural land resources," in the Department of Agriculture

Appropriation Act, 1946 : Provided further^ That an application for

payment on the prescribed form is filed by any such farmer (or the

person entitled to payment in case of death, disappearance, or incompetency of the farmer under regulations issued pursuant to section 385

of the Agricultural Adjustment Act of 1938, as amended (7 U. S. C,

1940 edition, 1385) ) within 1 year from the date of his discharge from

the armed forces, or by December 31, 1947, whichever is later: And

provided further^ That no part of any funds available to the Department, or any bureau, office, corporation, or other agency constituting

a part of such Department shall be used in the current fiscal year for

the payment of salary or travel expenses of any person who has been

convicted of violating the Act entitled "An Act to prevent pernicious

political activities," approved August 2,1939, as amended, or who has

been found in accordance with the provisions of section 6 of the Act of

July 11,1919 (18 U. S. C. 201), to have violated or attempted to violate

such section which prohibits the use of Federal appropriations for

the payment of personal services or other expenses designed to influence in any manner a Member of Congress to favor or oppose any

legislation or appropriation by Congress except upon request of any

Member or through the proper official channels (Department of

Agriculture Appropriation Act, 1948,61 Stat. 541 ).
134 APPLICABLE APPROPRIATIONS

SUGAR ACT

To enable the Secretary to carry into effect the provisions, other

than those specifically relating to the Philippine Islands, of the Sugar

Act of 1937, as amended (7 U. S. C. 1100-1183), including personal

services in the District of Columbia, $55,000,000, to remain available

until June 30, 1949: Provided^ That expenditures (including transfers) from this appropriation for other than payments to sugar producers shall not exceed $1,326,115 (Department of Agriculture Appropriation Act, 1948, 61 Stat. 543),

FEDERAL CROP INSURANCE ACT

The following sums are appropriated, out of any money in the

Treasury not otherwise appropriated, for the Federal Crop Insurance

Corporation for the current fiscal year, namely \

Operating expenses: For operating and administrative expenses,

$5,000^000, including not to exceed $700 for newspapers.

Subscriptions to capital stock, Federal Crop Insurance Corporation: To enable the Secretary of the Treasury to subscribe and pay

for capital stock of the Federal Crop Insurance Corporation, as provided m section 504 of the Federal Crop Insurance Act (7 U; S. C,

1504), $10,000,000 (Department of Agriculture Appropriation Act,

1948,61Stat.549).

FEDERAL CROP INSURANCE CORPORATION AND COMMODITY CREDIT

CORPORATION

The following corporations are hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to each such corporation and in accord with law, and to make such

contracts and commitments without regard to fiscal year limitations

as provided by section 104 of the Government Corporation Control

Act, as may be necessary to carry out the programs set forth in the

budget for the current fiscal year for each such corporation, except as

hereinafter provided:

Commodity Credit Corporation: Nothing in this Act shall be so

construed as to prevent the Commodity Credit Corporation from carrying out any activity or any program authorized by law : Promded^

That not to exceed $8,450,000 shall be available for administrative

expenses of the Corporation, including not to exceed $400 for periodicals, maps, and newspapers, and not to exceed $30,000 for penalty

mail: Provided further^ That all necessary expenses (including legal

and special services performed on a contract or fee basis, but not including other personal services) in connection with the acquisition,

operation, maintenance, improvement, or disposition of any real or

personal property belonging to the Corporation or in which it has an

interest, including expenses of collections of pledged collateral, shall

be considered as nonadministrative expenses for the purposes hereof.

Federal Crop Insurance Corporation : Provided^ That no part of the

simis appropriated in section 201 of this title shall be used for any

crop insurance operations other than the continuation of the trial crop

insurance program, as authorized, and expenses necessary in the liquidation of insurance contracts on the 1947 and prior crops of wheat,

cotton^ and flax : Provided further^ That none of the funds herein appropriated shall be used to insure any 1948 or subsequent crop except
APPLICABLE APPROPRMTIONS 135

wheat in not to exceed 633 counties and flax in not to exceed 87 counties, in accordance with section 508 (a) (1) of the Federal Crop Insurance Act, as amended, and five additional crops in 1948 under the

provisions of section 508 (a) (2) of said Act, as amended, including

corn and tobacco in not to exceed 50 counties each and cotton in not

to exceed 56 counties, unless otherwise provided by legislation (Department of Agriculture Appropriation Act, 1948, 61 Stat. 550).

EXPORTATION AND DOMESTIC CONSUMPTION OF AGRICULTURAL

COMMODITIES

Notwithstanding any other provision of section 32, Public Law No.

320, Seventy-fourth Congress, approved August 24,1935, as amended

(7 U. S. C, 1940 edition, 612 (c) ), not more than $44,000,000 shall be

available during the fiscal year ending June 30,1948, for use in effectuating the purposes of that Act. To enable the Secretary to carry out

the provisions of the National School Lunch Act of June 4,1946 (Public Law 396), there is hereby made available $65,000,000 of the funds

appropriated for the fiscal year 1948 by section 32 of the Act approved

August 24, 1935 (7 U. S. C. 612 (c)), such amount to be without regard to the 25 per centum limitation contained in said section 32, and

to be exclusive of funds expended in accordance with the last sentence

of section 9 of the National School Lunch Act: Providedy That no

part of such funds shall be used for nonfood assistance under section 5

of said Act. The remainder of the fund appropriated by said Act for

the fiscal year 1948 is hereby rescinded effective July 1,1947, and shall

be carried to the surplus fund and covered into the Treasury immediately thereafter (Department of Agriculture Appropriation Act,

1948,61 Stat. 550).

FISCAL YEAR 1949

CONSERVATION AND USE OF AGRICULTURAL LAND RESOURCES

For expenses necessary to enable the Secretary to carry into effect

the provisions of sections 7 to 17, inclusive, of the Soil Conservation

and Domestic Allotment Act, approved February 29,1936, as amended

(16 U. S. C. 590g-590q), and the provisions of the Agricultural Adjustment Act of 1938, as amended (7 U. S. C. 1281-1407) (except the

provisions of sections 201, 202, 303, 381, and 383 and the provisions of

tilles IV and V), including personal services in the District of Columbia ; not to exceed $6,000 for the preparation and display of exhibits,

including such displays at State, interstate, and international fairs

within the United States; $150,000,000, to remain available until

December 31, 1949, for compliance with programs under said provisions of the Agricultural Adjustment Act of 1938, as amended, and

the Act of February 29,1936, as amended, pursuant to the provisions of

\h.^ 1948 programs carried out during the period July 1, 1947, to

December 31, 1948, inclusive : Provided^ That not to exceed $24,500,-

000 of the total sum provided under this head shall be available during

the current fiscal year, for salaries and other administrative expenses

for carrying out such programs, including the tobacco and peanutmarketing quota programs, the cost of aerial photographs, however,

not to be charged to such limitation ; but not more than $7,000,000 shall

be transferred to the appropriation account, "Administrative expenses,

section 392, Agricultural Adjustment Act of 1938" : Provided further^

224946—52 10
136 APPLICABLE APPROPRIATIONS

That payments to claimants heremider may be made upon the certificate of the claimant, which certificate shall be in such form as the Secretary may prescribe, that he has carried out the conservation practice

or practices and has complied with all other requirements as conditions for such payments and that the statements and information contained in the application for payment are correct and true, to the best

of his knowledge and belief, under the penalties of the Act of March 4,

1909, as amended (18 U. S. C. 80) : Provided further, That none of the

funds herein appropriated or made available for the functions assigned to the Agricultural Adjustment Agency pursuant to the Executive Order No. 9069, of February 23, 1942, shall be used to pay the

salaries or expenses of any regional information employees or any

State or county information employees, but this shall not preclude the

answering of inquiries or supplying of information to individual farmers : Provided further, That such amount shall be available for salaries

and other administrative expenses in connection with the formulation

and administration of the 1949 programs (amounting to $262,500,000,

including administration, and formulated on the basis of a distribution

of the funds available for payments and grants among the several

States in accordance with their conservation needs as determined by

the Secretary : Provided further, That the proportion allocated to any

State shall not be reduced more than 15 per centum from the 1946 distribution and that no participant shall receive more than $750) of soilbuilding practices and soil- and water-conservation practices, under

the Act of February 29, 1936, as amended, and programs under the

Agricultural Adjustment Act of 1938, as amended; but the payments

or grants under such program shall be conditioned upon the utilization

of land with respect to which such payments or grants are to be made,

in conformity with farming practices which will encourage and provide for soil-building and soil- and water-conserving practices in the

most practical and effective manner and adapted to conditions in the

several States, as determined and approved by the State committee

appointed pursuant to section 8 (b) of the Soil Conservation and

Domestic Allotment Act, as amended for the respective States : Provided further, That the Secretary may, in his discretion, from time to

time transfer to the General Accounting Office such sums as may be

necessary to pay administrative expenses of said Office in auditing

payments under this item : Provided further. That such amounts shall

be available for the purchase of seeds, fertilizers, lime, trees, or any

other farming materials, or any soil-terracing services, and making

frants thereof to agricultural producers to aid them in carrying out

arming practices approved by the Secretary under programs provided for herein : Provided further, That the Secretary is authorized

and directed to make payments to farmers who complied with the

terms and conditions of the agricultural conservation programs, formulated pursuant to sections 7 to 17, inclusive, of the Soil Conservation

and Domestic Allotment Act, as amended, if the Secretary determines that, because of induction into the armed forces of the United

States, such farmers failed to file, or were prevented from filing, applications for payment under any such program during the period the

applicable appropriation for such program was available for obligation, such payments to be made out of the unobligated balance of the

appropriation, "Conservation and use of agricultural land resources,"
APPLICABLE APPROPRIATIONS 137

in the Department of Agriculture Appropriation Act, 1946 : Provided

further^ That an application for payment on the prescribed form is

filed by any such farmer (or the person entitled to payment in case of

death, disappearance, or incoihpetency of the farmer under regulations

issued pursuant to section 385 of the Agricultural Adjustment Act of

1938, as amended (T U. S.C, 1940 edition, 1385) ) within 1 year from

the date of his discharge from the armed forces, or by December 31,

1948, whichever is later : And provided further^ That no part of any

funds available to the Department, or any bureau, office, corporation,

or other agency constituting a part of such Department shall be used

in the current fiscal year for the payment of salary or travel expenses

of any person who has been convicted of violating the Act entitled ''An

Act to prevent pernicious political activities," approved August 2,

1939, as amended, or who has been found in accordance with the provisions of section 6 of the Act of July 11,1919 (18 U. S. C. 201), to have

violated or attempted to violate such section which prohibits the use of

Federal appropriations for the payment of personal services or other

expenses designed to influence in any manner a Member of Congress

to favor or oppose any legislation or appropriation by Congress except

upon request of any Member or through the proper official channels

(Department of Agriculture Appropriation Act, 1949, 62 Stat. 525).

SUGAR ACT

To enable the Secretary to carry into effect the provisions of the

Sugar Act of 1948, approved August 8, 1947 (Public Law 388), including such amount as is required to complete payments under the

Sugar Act of 193T, as amended (7 U. S. C. 1100-1183), $72,000,000, to

remain available until June 30, 1950: Provided^ That expenditures

(including transfers) from this appropriation for other than payments to sugar producers shall not exceed $1,385,545 (Department of

Agriculture Appropriation Act, 1949, 62 Stat. 526).

EXPORTATION AND DOMESTIC CONSUMPTION OF AGRICULTURAL

COMMODITIES

Not to exceed $500,000 of the appropriation made available by section 32 of the Act of August 24, 1935 (7 U. S. C. 612 (c) ), shall be

used to pay any subsidy, benefit, or indemnity to manufacturers of or

dealers in insulation products (Department of Agriculture Appropriation Act, 1949, 62 Stat. 526).

FEDERAL CROP INSURANCE ACT

The following sums are appropriated, out of any money in the

Treasury not otherwise appropriated, for the Federal Crop Insurance

Corporation for the current fiscal year, namely :

Operating expenses: For operating and administrative expenses,

$3,725,000, including not to exceed $700 for newspapers, together with

the unobligated balance of the appropriation for this purpose for fiscal

year 1948 which shall be available to complete the orderly liquidation

of the 1947 and prior crop year programs (Department of Agriculture

Appropriation Act, 1949, 62 Stat. 531).
138 APPLICABLE APPROPRIATIONS

COMMODITY CREDIT CORPORATION

The following corporations are hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to each such corporation and in accord with law, and to make such

contracts and commitments without regard to fiscalyear limitations

as provided by section 104 of the Government Corporation Control

Act, as may be necessary to carry out the programs set forth iii the

budget for the current fiscal year for each such corporation, except as

hereinafter provided :

Commodity Credit Corporation : Nothing in this Act shall be so

construed as to prevent the Commodity Credit Corporation from

carrying out any activity or any program authorized by law : Provided^

That not to exceed $7,575,000 shall be available for administrative

expenses of the Corporation, including not to exceed $400 for periodicals, maps, and newspapers : Provided further^ That all necessary expenses (including legal and special services performed on a contract

or fee basis, but not including other personal services) in connection

with the acquisition, operation, maintenance, improvement, or disposition of any real or personal property belonging to the Corporation

or in which it has an interest, including expenses^of collections of

pledged collateral, shall be considered as nonadministrative expenses

for the purposes hereof (Department of Agriculture Appropriation

Act, 1949, 62 Stat. 531).

FISCAL YEAR 1950

CONSERVATION AND USB OF AGRICULTURAL LAND RESOURCES

To enable the Secretary to carry into effect the provisions of sections

7 to 17, inclusive, of the Soil Conservation and Domestic Allotment

Act, approved February 29,1936, as amended (16 U. S. C. 590g-590q),

including personal services in the District of Columbia; not to exceed

$6,000 for the preparation and display of exhibits, including such

displays at State, interstate, and international fairs within the United

States; and for the replacement of one passenger motor vehicle for

use of the Production and Marketing Administration; $257,043,439,

to remain available until December 31 of the next succeeding fiscal

year for compliance with the program of soil-building practices and

soil- and water-conserving practices authorized under this head in

the Department of Agriculture Appropriation Act, 1949, carried out

during the period July 1, 1948, to December 31, 1949, inclusive:

Provtaed^ That not to exceed $25,846,439 of the total sum provided

under this head shall be available during the current fiscal year for

salaries and other administrative expenses for carrying out such program, the cost of aerial photographs, however, not to be charged to

such limitation 5 but not more than $5,200,000 shall be transferred to

the appropriation account, "Administrative expenses, section 392,

Agricultural Adjustment Act of 1938" : Provided further^ That payments to claimants hereunder may be made upon the certificate of the

claimant, which certificate shall be in such form as the Secretary may

prescribe, that he has carried out the conservation practice or practices and has complied with all other requirements as conditions for

such payments and that the statements and information contained in

the application for payment are correct and true, to the best of his

knowledge and belief, under the penalties of title 18, united States
APPLICABLE APPROPRIATIONS 139

Code: Provided further^ That none of the funds herein appropriated

or made available for the functions assigned to the Agricultural

Adjustment Agency pursuant to the Executive Order No. 9069, of

February 23, 1942, shall be used to pay the salaries or expenses of

any regional information employees or any State information employees, but this shall not preclude the answering of inquiries or

supplying of information at the county level to individual farmers :

Provided further^ That such amount shall be available for salaries

and other administrative expenses in connection with the formulation

and administration of the 1950 program of soil-building practices and

soil- and water-conserving practices, under the Act of February 29,

1936, as amended (amounting to $300,000,000, of which not to exceed

$15,000,000 may be used for acreage allotments and marketing quotas,

including administration, and formulated on the basis of a distribution of the funds available for payments and grants among the several

States in accordance with their conservation needs as determined by

the Secretary, except that the proportion allocated to any State shall

not be reduced more than 15 per centum from the 1946 distribution,

and no participant shall receive more than $2,500) ; but the payments

or grants under such programs shall be conditioned upon the utilization of land with respect to which such payments or grants are to be

made in conformity with farming practices which will encourage and

provide for soil-building and soil- and water-conserving practices

in the most practical and effective manner and adapted to conditions

in the several States, as determined and approved by the State committees appointed pursuant to section 8 (b) of the Soil Conservation

and Domestic Allotment Act, as amended, for the respective States :

Provided further^ That the Secretary may, in his discretion, from

time to time transfer to the General Accounting OiBce such sums as

may be necessary to pay administrative expenses of said office in

auditing payments under this head: Provided further^ That the

county agricultural conservation committee in any county with the

approval of the State committee may allot not to exceed 5 per centum

of its allocation for the agricultural conservation program to the

Soil Conservation Service for services of its technicians in formulating and carrying out the agricultural conservation program and the

funds so alloted shall be utilized by the Soil Conservation Service for

technical and ocher assistance in such county : Provided further^ That

such amounts shall be available for the purchase of seeds, fertilizers,

lime, trees, or any other farming materials, or any soil-terracing services, and making grants thereof to agricultural producers to aid them

in carrying out farming practices approved by the Secretary

under programs provided for herein : Provided further^ That no

part of any funds available to the Department, or any bureau, office,

corporation, or other agency constituting a part of such Department,

shall be used in the current fiscal year for the payment of salary or

travel expenses of any person who has been convicted of violating

the Act entitled "An Act to prevent pernicious political activities,"

approved August 2, 1939, as amended, or who has'been found in accordance with the provisions of title 18, United States Code, section

1913, to have violated or attempted to violate such section which prohibits the use of Federal appropriations for the payment of personal

services or other expenses designed to influence in any manner a
140 APPLICABLE APPROPRIATIONS

Member of Congress to favor or oppose any legislation or appropriation by Congress except upon request of any Member or through the

proper official channels (Department of Agriculture Appropriation

Act, 1950, 63 Stat. 341).

ACREAGE ALLOTMENTS AND MARKETING QUOTAS

To enable the Secretary to formulate and carry out acreage allotment and marketing quota programs pursuant to the provisions of

title III of the Agricultural Adjustment Act of 1938, as amended (7

U. S. C. 1301-1393), including personal services in the District of

Columbia, $30,150,774, of which not more than $5,270,000 shall be

transferred to the appropriation account "Administrative expenses,

section 392, Agricultural Adjustment Act of 1938" (Department of

Agriculture Appropriation Act, 1950, 63 Stat. 343).

SUGAR ACT

To enable the Secretary to carry into effect the provisions of the

Sugar Act of 1948 (7 U. S. C. 1101-1160), $60,000,000, to remain

available until June 30 of the next succeeding fiscal year : Promded^

That expenditures (including transfers) from this appropriation for

other than payments to sugar producers shall not exceed $1,493,723

(Department of Agriculture Appropriation Act, 1950, 63 Stat. 343).

EXPORTATION AND DOMESTIC CONSUMPTION OF AGRICULTURAL

COMMODITIES

Not to exceed $150,000 of the appropriation made available by section 32 of the Act of August 24, 1935 (7 U. S. C. 612 (c)), shall be

used to pay any subsidy, benefit, or indemnity to manufacturers of

or dealers in insulation products (Department of Agriculture Appropriation Act, 1950, 63 Stat. 343).

FEDERAL CROP INSURANCE ACT

Operating expenses: For operating and administrative expenses,

and not to exceed $700 for newspapers, $4,054,000 (Department of

Agriculture Appropriation Act, 1950, 63 Stat. 346).

FEDERAL CROP INSURANCE CORPORATION AND COMMODITY CREDIT

CORPORATION

The following corporations and agencies, respectively, are hereby

authorized to make such expenditures, within the limits of funds and

borrowing authority available to each such corporation or agency and

in accord with law, and to make such contracts and commitments

without regard to fiscal year limitations as provided by section 104

of the Government Corporation Control Act, as amended, as may be

necessary in carrying out the programs set forth in the Budget for

the fiscal year 1950 for each such corporation or agency, except as

hereinafter provided:

Federal Crop Insurance Corporation.

Commodity Credit Corporation: Nothing in this Act shall be so

construed as to prevent the Commodity Credit Corporation from

carrying out any activity or any program authorized by law : Provided, That not to exceed $12,000,000 shall be available for adminis-
APPLICABLE APPROPRIATIONS 141

trative expenses of the Corporation and notto exceed $400 for periodicals, maps, and newspapers : Provided further^ That all necessary expenses (including legal and special services performed on a contract

or fee basis, but not including other personal services) in connection

with the acquisition, operation, maintenance, improvement, or disposition of any real or personal property belonging to the Corporation

or in which it has an interest, including expenses of collections of

pledged collateral, shall be considered as nonadministrative expenses

for the purposes hereof (Department of Agriculture Appropriation

Act, 1950, 63 Stat. 346).

FISCAL YEAR 1951

CONSERVATION AND USB OF AGRICULTURAL LAND RESOURCES

To enable the Secretary to carry into effect the provisions of sections 7 to 17, inclusive, of the Soil Conservation and Domestic Allotment Act, approved February 29,1936, as amended (16 U. S. C. 590g590q), including not to exceed $6,000 for the preparation and^display

of exhibits, including such displays at State, interstate, and international fairs within the United States; $282,500,000, to remain available until December 31 of the next succeeding fiscal year for compliance with the program of soil-building practices and soil- and

water-conserving practices authorized under this head in the Department of Agriculture Appropriation Act, 1950, carried out during

the period July 1, 1949, to December 31, 1950, inclusive : Provided^

That not to exceed $25,500,000 of the total sum provided under this

head shall be available during the current fiscal year for salaries and

other administrative expenses for carrying out such program, the

cost of aerial photographs, however, not to be charged to such limitation; but not more than $5,000,000 shall be transferred to the appropriation account, "Administrative expenses, section 392, Agricultural Adjustment Act of l^^^S"^^ \ Provided further^ That payments to

claimants hereunder may be made upon the certificate of the claimant,

which certificate shall be in such form as the Secretary may prescribe^

that he has carried out the conservation practice or practices and has

complied with all other requirements as conditions for such payments

and that the statements and information contained in the application

for payment are correct and true, to the best of his knowledge and

belief, under the penalties of title 18, United States Code : Provided

further^ That none of the funds herein appropriated or made available

for the functions assigned to the Agricultural Adjustment Agency

pursuant to the Executive Order No. 9069, of February 23, 1942,

shall be used to pay the salaries or expenses of any regional information employees or any State information employees, but this shall

not preclude the answering of inquiries or supplying of information

at the county level to individual farmers: Provided further^ That

such amount shall be available for salaries and other administrative

expenses in connection with the formulation and administration of

the 1951 program of soil-building practices and soil- and waterconserving practices, under the Act of February 29, 1936, as amended

(amounting to $285,000,000, including administration, and formulated

on the basis of a distribution of the funds available for payments

and grants among the several States in accordance with their conservation needs as determined by the Secretary, except that the pro-
142 APPLICABLE APPROPRIATIONS

portion allocated to any State shall not be reduced more than 15

per centum from the distribution for the next preceding program

year, and no participant shall receive more than $2,500j ; but the

payments or grants under such programs shall be conditioned upon

the utilization of land with respect to which such payments or grants

are to be made in conformity with farming practices which will

encourage and provide for soil-building and soil- and water-conserving

practices in tíie most practical and effective manner and adapted to

conditions in the several States, as determined and approved by the

State committees appointed pursuant to section 8 (b) of the Soil

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

590h (b)), for the respective States: Provided further^ That not to

exceed 5 per centum of the allocation for the agricultural conservation program for any county may be allotted with the approval of

the State committee to the Soil Conservation Service for services

of its technicians in formulating and carrying out the agricultural

conservation program and the funds so allotted shall not be utilized

by the Soil Conservation Service for any purpose other than technical and other assistance in such county : Provided /t¿rz5Aer, That such

amounts shall be available for the purchase of seeds, fertilizers, lime,

trees, or any other farming materials, or any soil-terracing services,

and making grants thereof to agricultural producers to aid them

in carrying out farming practices approved .by the Secretary under

programs provided for herein : Provided further^ That no part of

any funds available to the Department, or any bureau, office, corporation, or other agency constituting a part of such Department, shall

be used in the current fiscal year for the payment of salary or travel

expenses of any person who has been convicted of violating the Act

entitled "An Act to prevent pernicious political activities," approved

August 2, 1939, as amended, or who has been found in accordance

with the provisions of title 18, United States Code, section 1913,

to have violated or attempted to violate such section which prohibits

the use of Federal appropriations for the payment of personal services

or other expenses designed to influence in ^any manner a Member

of Congress to favor or oppose any legislation or appropriation by

Congress except upon request of any Member or through the proper

official channels (Department of Agriculture Appropriation Act,

1951,64Stat. 670).

ACREAGE ALLOTMENTS AND MARKETING QUOTAS

To enable the Secretary to formulate and carry out acreage allotment and marketing quota programs pursuant to the provisions

of title III of the Agricultural Adjustment Act of 1938, as amended

(7 U. S. C. 1301-1393), $32,300,000, of which not more than $5,500,000

shall be transferred to the appropriation account "Administrative

expenses, section 392, Agricultural Adjustment Act of 1938": Provided^ That $4,000,000 of this appropriation shall be placed in reserve

pending determination by the Secretary as to necessity of marketing

quotas on the 1951 crops of wheat, corn, and rice, to be released in

such amounts and at such times as determined by the Bureau of the

Budget to be necessary in connection with such marketing quotas

(Department of Agriculture Appropriation Act, 1951, 64 Stat. 671).
APPLICABLE APPROPRIATIONS 143

SUGAR ACT

To enable the Secretary to carry into effect the provisions of the

Su^ar Act of 1948 (7 Ü. S. C. 1101-1160), $63,750,000, to remain

available until June 30 of the next succeeding fiscal year : Provided^

That expenditures (including transfers) from this appropriation for

other than payments to sugar producers shall not exceed $1,500,000

(Department of Agriculture Appropriation Act, 1951, 64 Stat. 611).

FEDERAL CROP INSURANCE ACT

For operating and administrative expenses, $7,204^000 (Department

of Agriculture Appropriation Act, 1951, 64 Stat. 673).

The following corporations and agencies are hereby authorized

to make such expenditures, within the limits of funds and borrowing

authority available to each such corporation or agency and in accord

with law, and to make such contracts and commitments without

regard to fiscal year limitations as provided by section 104 of the

Government Corporation Control Act, as amended, as may be necessary in carrying out the programs set forth in the Budget for the

fiscal year 1951 for such corporation or agency, except as hereinafter

provided :

Federal Crop Insurance Corporation (Department of Agriculture

Appropriation Act, 1951, 64 Stat. 677).

COMMODITY CREDIT CORPORATION

The following corporations and agencies are hereby authorized

to make such expenditures, within the limits of funds and borrowing

authority availaole to each such corporation or agency and in accord

with law, and to make su<îh contracts and commitments without regard

to fiscal year limitations as provided by section 104 of the Government

Corporation Control Act, as amended, as may be necessary in carrying out the programs set forth in the Budget for the fiscal year

1951 for such corporation or agency, except as hereinafter provided:

Commodity Credit Corporation : Nothing in this chapter shall be

so construed as to prevent the Commodity Credit Corporation from

carrying out any activity or any program authorized by law: Providedy That not to exceed $16,350,000 shall be available for administrative expenses of the Corporation : Provided further^ That all

necessary expenses (including legal and special services performed on

a contract or fee basis, but not including other personal services)

in connection with the acquisition, operation, maintenance, improvement, or disposition of any real or personal property belonging to

the Corporation or in which it has an interest, including expenses

of collections of pledged collateral, shall be considered as nonadministrative expenses for the purposes hereof: Provided further^ That

the Secretary of the Treasury is hereby authorized and directed to

discharge $66,698,457 of the indebtedness of the Commodity Credit

Corporation to the Secretary of the Treasury by canceling notes in

such amount issued by the Corporation to the Secretary of the Treasury pursuant to section 4 of the Act of March 8, 1938, as amended

(15 Ü. S. C. 713a--4) (Department of Agriculture Appropriation Act,

1951, 64 Stat. 677).
144 APPLICABLE APPROPRIATIONS

FISCAL YEAR 1952

CONSERVATION AND USE OF AGRICULTURAL LAND RESOURCES

To enable the Secretary to carry into effect the provisions of sections 7 to 17, inclusive, of the Soil Conservation and Domestic Allotment Act, approved February 29,1936, as amended (16 U. S. C. 590g590q), including not to exceed $6,000 for the preparation and display

of exhibits, including such displays at State, interstate, and international fairs within the United States ; $260,000,000, to remain available

until December 31 of the next succeeding fiscal year for compliance

with the program of soil-building practices and soil- and water-conserving practices authorized under this head in the Department of

Agriculture Appropriation Act, 1951, carried out during the period

July 1, 1950, to December 31, 1951, inclusive : Provided^ That not to

exceed $25,250,000 of the total sum provided under this head shall be

available during the current fiscal year for salaries and other administrative expenses for carrying out such program, the cost of aerial

photographs, however, not to be charged to such limitation; but not

more than $4,966,000 shall be transferred to the appropriation account,

"Administrative expenses, section 392, Agricultural Adjustment Act

of 1938": Provided further^ That payments to claimants hereunder

may be made upon the certificate of the claimant, which certificate

shall be in such form as the Secretary may prescribe, that he has carried out the conservation practice or practices and has complied with

all other requirements as conditions for such payments and that the

statements and information contained in the application for payment

are correct and true, to the best of his knowledge and belief, under

the penalties of title 18, United States Code : Provided further^ That

none of the funds herein appropriated or made available for the functions assigned to the Agricultural Adjustment Agency pursuant to

the Executive Order No. 9069, of February 23, 1942, shall be used to

pay the salaries or expenses of any regional information employees or

any State information employees, but this shall not preclude the

answering of inquiries or supplying of information at the county level

to individual farmers : Provided further^ That such amount shall be

available for salaries and other administrative expenses in connection

with the formulation and administration of the 1952 program of soilbuilding practices and soil- and water-conserving practices, under the

Act of Februar}^ 29, 1936, as amended (amounting to $256,500,000,

including administration, and formulated on the basis of a distribution of the funds available for payments and grants among the several

States in accordance with their conservation needs as determined by

the Secretary, except that the proportion allocated to any State shall

not be reduced more than 15 per centum from the distribution for the

next preceding program year, and no participant shall receive more

than $2,500) ; but the payments or grants under such programs shall

be conditioned upon the utilization of land with respect to which such

payments or grants are to be made in conformity with farming practices which will encourage and provide for soil-building and soiland water-conserving practices in the most practical and effective manner and adapted to conditions in the several States, as determined and

approved by the State committees appointed pursuant to section 8 (b)

of the Soil Conservation and Domestic Allotment Act, as amended
APPLICABLE APPROPRIATIONS 145

(16 U. S. C. 59OI1 (b)), for the respective States: Provided further^

That not to exceed 5 per centum of the allocation for the agricultural

conservation program for any county may, on the recommendation of

such county committee and approval of the State committee, be withheld and allotted to the Soil Conservation Service for services of its

technicians in formulating and carrying out the agricultural conservation program in the participating counties, and the funds so allotted

may be placed in a single account for each State, and shall not be

utilized by the Soil Conservation Service for any purpose other than

technical and other assistance in such counties: Provided further^

That such amounts shall be available for the purchase of seeds, fertilizers, lime, trees, or any other farming materials, or any soil-terracing services, and making grants thereof to agricultural producers to

aid them in carrying out farming practices approved by the Secretary under programs provided for herein : Provided further^ That no

part of any funds available to the Department, or any bureau, ofíice,

corporation, or other agency constituting a part of such Department,

shall be used in the current fiscal year for the payment of salary or

travel expenses of any person who has been convicted of violating

the Act entitled "An Act to prevent pernicious political activities," approved August 2, 1939, as amended, or who has been found in accordance with the provisions of title 18, United States Code, section 1913,

to have violated or attempted to violate such section which prohibits

the use of Federal appropriations for the payment of personal services or other expenses designed to influence in any manner a Member

of Congress to favor or oppose any legislation or appropriation by

Congress except upon request of any Member or through the proper

official channels (Department of Agriculture Appropriation Act, 1952,

65 Stat. 236).

AGRICULTURAL PRODUCTION PROGRAMS

To enable the Secretary to formulate and carry out acreage allotment and marketing quota programs pursuant to provisions of title

III of the Agricultural Adjustment Act of 1938, as amended (7

Ü. S. C. 1301-1393), including the measurement of the acreage planted

to cotton on the farms whether or not marketing quotas are in effect,

providing that not more than $1,000,000 shall be available for this

purpose, and to provide assistance in obtaining equipment, materials,

and facilities necessary to attain needed production of agricultural

commodities, $10,000,000, of which not more than $2,800,000 shall be

transferred to the appropriation account "Administrative expenses,

section 392, Agricultural Adjustment Act of 1938" (Department of

Agriculture Appropriation Act, 1952, 65 Stat. 238).

SUGAR ACT

To enable the Secretary to carry into effect the provisions of the

Sugar Act of 1948 (7 U. S. C. 1101-1160), $70,000,000, to remain

available until June 30 of the next succeeding fiscal year : Provided^

That expenditures (including transfers) from this appropriation for

other than payments to sugar producers shall not exceed $1,500,000

(Department of Agriculture Appropriation Act, 1952 (65 Stat. 238).
146 APPLICABLE APPROPRIATIONS

INTERNATIONAL WHEAT AGREEMENT

To disehargo indebtedness of the Commodity Credit Corporation

to the Secretary of the Treasury for the net costs during the fiscal year

1950 under the International Wheat Agreement Act of 1949 (7 U. S. C.

1641-1642), $76,808,000 (Department of Agriculture Appropriation

Act, 1952, 65 Stat. 244).

FEDERAL CROP INSURANCE ACT

For operating and administrative expenses, $7,949,911 (Department of Agriculture Appropriation Act, 1952, 65 Stat. 239).

FEDERAL CROP INSURANCE CORPORATION AND COMMODITY CREDIT

CORPORATION

The following corporations and agencies are hereby authorized to

make such expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accord with

law, and to make such contracts and commitments without regard to

ñscal year limitations as provided by section 104 of the Government

Corporation Control Act, as amended, as may be necessary in carrying

out the programs set forth in the budget for the fiscal year 1952 for

such corporation or agency, except as hereinafter provided:

Federal Crop Insurance Corporation.

Commodity Credit Corporation : Nothing in this Act shall be so construed as to preventthe Commodity Credit Corporation from carrying

out any activity or any program authorized by law : Provided^ That

not to exceed $16,500,000 (and the amount in the last proviso in this

paragraph is increased to $2,500,000) shall be available for administrative expenses of the Corporation : Provided further^ That all necessary expenses (including legal and special services performed on a

contract or fee basis, but not including other personal services) in connection with the acquisition, operation, maintenance, improvement, or

disposition of any real or personal property belonging to the Corporation or in which it has an interest, including expenses of collections

of pledged collateral, shall be considered as nonadministrative expenses for the purposes hereof : Provided fv/rther^ That the Secretary

of the Treasury is hereby authorized and directed to discharge indebtedness of the Commodity Credit Corporation to the Secretary of

the Treasury by canceling notes issued by the Corporation to the Secretary of the Treasury in the amount of the capital impairment determined by the appraisal of June 30, 1950 (but not to exceed $427,-

000,000), pursuant to sections 1 and 4 of the Act of March 8,1938, as

amended (15 TJ. S. C. 7l3a-l, 4) : Provided further, That $1,000,000

of this appropriation shall be placed in reserve, to be apportioned for

use pursuant to section 3679 of the Revised Statutes, as amended, only

in such amounts and at such times as may become necessary due to the

existence of substantial surpluses of the basic commodities requiring

mandatory price support (Department of Agriculture Appropriation

Act, 1952, 65 Stat. 244).
APPLICABLE APPROPRIATIONS 147

FISCAL YEAR 1953

CONSERVATION AND USE OF AGRICULTURAL LAND RESOURCES

To enable the Secretary to carry into effect the provisions of sections

7 to 17, inclusive, of the Soil Conservation and Domestic Allotment

Act, approved February 29,1936, as amended (16 U. S. C. 590g-590q),

including not to exceed $6,000 for the preparation and display of

exhibits, including such displays at State, interstate, and international

fairs within the United States; $251,754,142, to remain available until

December 31 of the next succeeding fiscal year for compliance with

the program of soil-building practices and soil- and water-conserving

practices authorized under this head in the Department of Agriculture

Appropriation Act, 1952, carried out during the period July 1, 1951,

to December 31, 1952, inclusive, of which amount $2,500,000 shall be

available for technical assistance in formulating and carrying out

agricultural conservation practices and $1,000,000 shall be available

for conservation practices related directly to flood prevention work

in approved watersheds : Provided^ That not to exceed $26,754,142 of

the total sum provided under this head shall be available during the

current fiscal year for salaries and other administrative expenses for

carrying out such program, the cost of aerial photographs, however,

not to be charged to such limitation; but not more than $4,966,000

shall be transferred to the appropriation account, "Administrative

expenses, section 392, Agricultural Adjustment Act of 1938": Provided further^ That payments to claimants hereunder may be made

upon the certificate of the claimant, which certificate shall be in such

form as the Secretary may prescribe, that he has carried out the conservation practice or practices and has complied with all other requirements as conditions for such payments and that the statements

and information contained in the application for payment are correct

and true, to the best of his knowledge and belief, under the penalties

of title 18, United States Code : Provided further^ That none of the

funds herein appropriated or made available for the functions assigned

to the Agricultural Adjustment Agency pursuant to the Executive

Order No. 9069, of February 23,1942, shall be used to pay the salaries

or expenses of any regional information employees or any State

information employees, but this shall not preclude the answering of

inquiries or supplying of information at the county level to individual

farmers : Provided further^ That such amount shall be available for

salaries and other administrative expenses in connection with the

formulation and administration of the 1953 program of soil-building

practices and soil- and water-conserving practices, under the Act of

February 29,1936, as amended (amounting to $250,000,000, including

administration, and formulated on the basis of a distribution of the

funds available for payments and grants among the several States in

accordance with their conservation needs as determined by the Secretary, except that the proportion allocated to any State shall not be

reduced more than 15 per centum from the distribution for the next

preceding program year, and no participant shall receive more than

$2,500) ; fout the payments or grants under such programs shall be
148 APPLICABLE APPROPRIATIONS

conditioned upon the utilization of land with respect to which such

payments or grants are to be made in conformity with farming practices which will encourage and provide for soil-building and soil- and

water-conserving practices in the most practical and effective manner

and adapted to conditions in the several States, as determined and

approved by the State committees appointed pursuant to section 8

(b) of the Soil Conservation and Domestic Allotment Act, as amended

(16 U. S. C. 590h (b)), for the respective States: Provided further^

That not to exceed 5 per centum of the allocation for the agricultural

conservation program for any county may, on the recommendation

of such county committee and approval of the State Committee, be

withheld and allotted to the Soil Conservation Service for services

of its technicians in formulating and carrying out the agricultural

conservation program in the participating counties, and the funds

so allotted may be placed in a single account for each State, and shall

not be utilized by the Soil Conservation Service for any purpose other

than technical and other assistance in such counties : Provided further^

That notto exceed 2i/^ per centum of the allocation for the agricultural

conservation program for any State may be utilized in determining

the most needed conservation practices on individual farms for which

Federal assistance shall be given : Provided further^ That such amounts

shall be available for the purchase of seeds, fertilizers, lime, trees, or

any other farming materials, or any soil-terracing services, and making grants thereof to agricultural producers to aid them in carrying

out farming practices approved by the Secretary under programs

provided for herein : Provided further^ That no part of any funds

available to the Department, or any bureau, office, corporation, or

other agency constituting a part of such Department, shall be used

in the current fiscal year for the payment of salary or travel expenses

of any person who has been convicted of violating the Act entitled

"An Act to prevent pernicious political activities," approved August

2, 1939, as amended, or who has been found in accordance with the

provisions of title 18, United States Code, section 1913, to have violated or attempted to violate such section which prohibits the use of

Federal appropriations for the payment of personal services or other

expenses designed to influence in any manner a Member of Congress

to favor or oppose any legislation or appropriation by Congress

except upon request of any Member or through the proper official

channels (Department of Agriculture Appropriation Act, 1953, Public Law 451, 82d Cong., approved July 5,1952, 66 Stat. 346).

AGRICULTURAL PRODUCTION PROGRAMS

To enable the Secretary to formulate and carry out acreage allotment and marketing quota programs pursuant to provisions of title

III of the Agricultural Adjustment Act of 1938, as amended (7

U. S. C. 1301-1393), and to provide assistance in obtaining equipment,

materials, and facilities necessary to attain needed production of

agricultural commodities, $10,000,000, of which not more than $3,000,-

000 shall be transferred to the appropriation account "Administrative

expenses, section 392, Agricultural Adjustment Act of 1938." (Department of Agriculture Appropriation Act, 1953, Public Law 451,

82d Cong., approved July 5,1952,66 Stat. 348).
APPLICABLE APPROPRIATIONS 149

SUGAR ACT

To enable the Secretary to carry into effect the provisions of the

Sugar Act of 1948 (7 U. S. C. 1101-1160), $65,000,000, to remain

available until June 30 of the next succeeding fiscal year : Provided^

That expenditures (including transfers) from this appropriation for

other than payments to sugar producers shall not exceed $1,500;000

(Department of Agriculture Appropriation Act, 1953, Public Law

451, 82d Cong., approved July 5, 1952, 66 Stat. 348).

INTERNATIONAL WHEAT AGREEMENT

The Secretary of the Treasury is hereby authorized and directed to

discharge indebtedness of the Commodity Credit Corporation to the

Secretary of the Treasury by cancelling nptes issued by the Corporation to the Secretary of the Treasury in the amount of $182,162,250

for the net costs during the fiscal year 1951 under the International

Wheat Agreement Act of 1949 (7 Ü. S. C. 1641-1642) (Department

of Agriculture Appropriation Act, 1953, Public Law 451, 82d Cong.,

approved July 5,1952, 66 Stat. 355).

FEDERAL CROP INSURANCE CORPORATION

For operating and administrative expenses, $8,500,000 (Department

of Agriculture Appropriation Act, 1953, Public Law 451, 82d Cong.,

approved July 5,1952,66 Stat. 349 ).

FEDERAL CROP INSURANCE CORPORATION AND COMMODITY CREDIT

CORPORATION

The following corporations and agencies are hereby authorized to

make such expenditures, within the limits of funds and borrowing

authority available to each such corporation or agency and in accord

with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended, as may be necessary

in carrying out the programs set forth in the budget for the fiscal year

1953 for such corporation or agency, except as hereinafter provided :

Federal Crop Insurance Corporation.

Commodity Credit Corporation: Nothing in this Act shall be so

construed as to prevent the Commodity Credit Corporation from

carrying out any activity or any program authorized by law: Proyided^^ That not to exceed $16,500,000 shall be available for administrative expenses of the Corporation: Provided further^ That all

necessary expenses (including legal and special services performed

on a contract or fee basis, but not including other personal services)

in connection with the acquisition, operation, maintenance, improvement, or disposition of any real or personal property belonging to the

Corporation or in which it has an interest, including expenses of

collections of pledged collateral, shall be considered as nonadministrative expenses for the purposes hereof (Department of Agriculture

Appropriation Act, 1953, Public Law 451, 82d Cong., approved July 5,

1952, 66 Stat. 353).
150 APPLICABLE APPROPRMTIONS

GENERAL PROVISIONS OF THE APPROPRIATION ACT, FISCAL YEAR 195 3 ^

SEC. 401. Within the unit limit of cost fixed by law, the lump-sum

appropriations and authorizations made for the Department under

this Act shall be available for the purchase, in addition to those

specifically provided for, of not to exceed 400 passenger motor vehicles for replacement only, and for the hire of such vehicles, necessary

in the conduct of the work of the Department outside the District of

Columbia.

SEC. 402. Provisions of law prohibiting or restricting the employment of aliens shall not apply to (1) the temporary employment of

translators when competent citizen translators are not available; (2)

employment iri cases of emergency of persons in the field service of

the Department for periods of not more than sixty days; and (3)

employment under the appropriation for the Office of Foreign Agricultural Eclations.

SEC. 403. Of appropriations herein made which are available for

the purchase of lands, notto exceed $1 may be expended for each option

to purchase any particular tract or tracts of land.

SEC. 404. No part of the funds appropriated by this Act shall be

used for the payment of any officer or employee of the Department

who, as such officer or employee, or on behalf of the Department or any

division, commission, or bureau thereof, issues, or causes to be issued,

any prediction, oral or written, or forecast, except as to damage threatened or caused by insects and pests, with respect to future prices of

cotton or the trend of same.

SEC. 405. Except to provide materials required in or incident to

research or experimental work where no suitable domestic product is

available, no part of the funds appropriated by this Act shall be expended in the purchase of twine manufactured from commodities or

materials produced outside of the United States.

SEC. 406. Not less than $575,000 shall be available for contracts in

accordance with section 10 (a) of the Act of August 14,1946 (7 XJ. S. C.

427i) from appropriations herein made for the Bureau of Agricultural Economics; Bureau of Animal Industry; Bureau of Dairy Industry ; Bureau of Plant Industry, Soils, and Agricultural Engineering; Bureau of Entomology and Plant Quarantine; Bureau of

Agricultural and Industrial Chemistry; Bureau of Human Nutrition

and Home Economics ; and the Forest Service.

SEC. 407. No part of any appropriation contained in this Act, or of

the funds available for expenditure by any corporation included in

this Act, shall be used to pay the salary or wages of any person who

engages m a strike against the Government of the United States or

who is a member of an organization of Government employees that

asserts the right to strike against the Government of the United States,

or who advocates, or is a member of an organization that advocates,

the overthrow of the Government of the United States by force or

violence : Provided, That for the purposes hereof an affidavit shall be

considered prima facie evidence that the person making the affidavit

has not contrary to the provisions of this section engaged in a strike

against the Government of the United States, is not a member of an

*Eacli of the Department of Agriculture appropriations acts for the fiscal

years 1947 to 1952, inclusive, contained general provisions similar to the general

provisions of the 1Ô53 fiscal year act
APPLICABLE APPROPKIATIONS 151

organization of Government employees that asserts the right to strike

against the Government of the United States, or that such person does

not advocate, and is not a member of an organization that advocates,

the overthrow of the Government of the United States by force or

violence : Provided further^ That any person who engages in a strike

against the Government of the United States or who is a member of an

organization of Government employees that asserts the right to strike

against the Government of the United States, or who advocates, or

who is a member of an organization that advocates, the overthrow of

the Government of the United States by force or violence and accepts

employment the salary or wages for which are paid from any appropriation or fund contained in this Act shall be guilty of a felony and,

upon conviction, shall be fined not more than $1,000 or imprisoned for

not more than 1 year, or both : Provided further^ That the above penalty clause shall be in addition to, and not in substitution for, any other

provisions of existing law: Promded further^ That nothing in this

section shall be construed to require an affidavit from any person employed for less than 60 days for sudden emergency work involving the

loss of human life or destruction of property, the payment of salary

or wages may be made to such persons from applicable appropriations

for services rendered in such emergency without execution of the

affidavit contemplated by this section.

SEC. 408. No part of any appropriation contained in this Act or of

the funds available for expenditure by any corporation or agency

included in this Act shall be used for publicity or propaganda purposes to support or defeat legislation pending before the Congress.

SEC. 409. Except for the car officially assigned to the Secretary

of Agriculture, no part of any appropriation contained in this Actshall

be used to pay the compensation of any civilian employee of the Government whose principal duties consist of acting as chauffeur of any

Government-owned passenger motor vehicle (other than a bus or

ambulance), unless such appropriation is specifically authorized to be

used for paying the compensation of employees performing such

duties.

SEC. 410. No part of any appropriation or authorization contained

in this Act shall be used to pay the compensation of any incumbent

appointed to any civil office or position which may become vacant

during the fiscal year beginning on July 1, 1952 : Provided^ That this

inhibition shall not apply to—

(a) not to exceed 25 per centum of all vacancies;

(b) positions filled from within the department;

(c) offices or positions required by law to be filled by appointment

of the President by and with the advice and consent of the Senate ;

(d) seasonal and casual workers ;

( e^ employees in grades CPC 1, 2, and 3 ;

(f) employees working in field activities;

(g) employees paid from funds for research ;

in) employees of the crop and livestock reporting service;

(i) employees paid from funds of the Federal Intermediate Credit

Banks, Production Credit Corporations, and the Farm Credit Administration except the portion thereof provided by direct appropriation from the General Fund of the Treasury ;

(j) employees paid from funds for marketing services;

224946*
152 APPLICABLE APPROPRIATIONS

(k) employees of the Eural Electrification Administration ;

(1) employees of the Soil Conservation Service;

(m) employees of meat inspection and other regulatory services;

(n) ^employees of the Forest Service :

Provided further^ That when the total number of personnel subject

to this section has been reduced to 90 per centum of the total provided

for in the budget estimates for 1958, such limitation may cease to apply

and said 90 per centum shall become a ceiling for employment during

the fiscal year 1953, and if exceeded at any time during fiscal year

1953 this provision shall again become operative. ^

SEC. 411. (a) No part of the money appropriated by this Act to

any department, agency, or corporation which is in excess of 90 per

centum of the amount required to pay the compensation of all persons the budget estimates for personal services heretofore submitted

to the Congress for the fiscal year 1953 contemplated would be employed by such department, agency, or corporation during such fiscal

year iii the performance of—

(1) functions performed by a person designated as an information specialist, information and editorial specialist, publications and information coordinator, press relations officer or

counsel, photographer, radio expert, television expert, motion

picture expert, or publicity expert, or designated by any similar

title, or

(2) functions performed by persons who assist persons performing the functions described in (1) in drafting,^ preparing,

editing, typing, duplicating, or disseminating public information, publications or releases, radio or television scripts, magazine articles, photographs, motion pictures, and similar material,

shall be available to pay the compensation of persons performing

the functions described in (1) or (2), and the total amount of each

appropriation, any part of which is available for such purpose, is

hereby reduced by an amount equal to 10 per centum of the amount

requested in such budget estimates for such purpose.

(b) This section shall not apply to personnel engaged in the preparation and distribution of technical agricultural publications and

farmers bulletins, and the Agriculture Yearbook, the reporting and

dissemination of the results of research and investigations, the preparation and distribution of information on the protection of natural

resources against fire, insects, and disease, the preparation and broadcasting of the "Farm and Home Hour" and similar individual or

network radio and television programs, and other work required

to carry out the duties and responsibilities of the Department imposed

by law other than work intended primarily for press, radio and television services, and popular publications.

SEC. 412. Of the total amount made available in this Act for personal services above basic rates of the civilian personnel, for transportation of things (other than mail), and for travel of civilian

employees, the Secretary is authorized and directed on or before

September 1, 1952, to cover into the surplus funda of the Treasury,

or return to the capital funds affected, sums equal to 10 per centum

of the amounts included in the Budget estimates for such purposes,

less an amount representing thexeduction, if any, between the amount

requested for such purpose in the Budget estimates and the amount
APPLICABLE APPROPRIATIONS l53

appropriated herein for such purpose: Provided^ That this section

shall not apply to—

1. employees working in field activities;

2. employees paid from funds for research ;

3. employees of the crop and livestock reporting service ;

4. the administrative expense limitations for Federal intermediate

credit banks and for production credit corporations, or to the appropriation for the Farm Credit Administration except the portion

thereof provided by direct appropriation from the General Fund of

the Treasury ;

5. employees paid from funds for marketing services;

6. employees of the Kural Electrification Administration ;

7. employees of the Soil Conservation Service ;

8. employees of meat inspection and other regulatory services;

9. employees of the Forest Service (Department of Agriculture

Appropriation Act, 1953, Public Law 451, 82d Cong., approved July

5,1952,66Stat. 355).
MISCELLANEOUS LAWS

EXPLANATORY NOTE

Included in this part of the compilation are four miscellaneous laws

which govern or affect certain programs and functions of several

agencies of the Department of Agriculture.

Section 22 of the Agricultural Adjustment Act of 1933 authorizes

the imposition of quotas and fees on agricultural commodities imported into the United States.

Section 32 of Public Law 320, Seventy-fourth Congress, provides

funds for encouraging the exportation and domestic consumption of

agricultural commodities and for reestablishing farmers' purchasing

power.

The International Wheat Agreement Act of 1949 is implementing

legislation with respect to an agreement between 46 countries relating

to the annual sale and purchase of nearly 600 million bushels of wheat.

The act of December 20, 1944, authorizes the Secretary of Agriculture to compromise, adjust, or cancel certain debts of farmers to the

United States.

154
PART VII

MISCELLANEOUS LAWS

SECTION 22 OF THE AGRICULTURAL ADJUSTMENT ACT (OF 1933), AS

REENACTED AND AMENDED—IMPORTS *

SEO. 22. (a) Whenever the Secretary of Agriculture has reason to

believe that any article or articles are being or are practically certain

to be imported into the United States under such conditions and in

such quantities as to render or tend to render ineffective, or materially

interfere with, any program or operation undertaken under this title

or the Soil Conservation and Domestic Allotment Act, as amended, or

section 32, Public Law ISTo. 320, Seventy-fourth Congress, approved

August 24,1935, as amended, or any loan, purchase, or other program

or operation undertaken by the Department of Agriculture, or any

agency operating under its direction, with respect to any agricultural

commodity or product thereof, or to reduce substantially the amount

of aiiy product processed in the United States from any agricultural

commodity or product thereof with respect to which any such program or operation is being undertaken, he shall so advise the President,

and, if the President agrees that there is reason for such belief, the

President shall cause an immediate investigation to be made by the

United States Tariff Commission, which shall give precedence to investigations under this section to determine such facts. Such investigation shall be made after due notice and opportunity for hearing to

interested parties, and shall be conducted subject to such regulations

as the President shall specify (7 U. S. C. 624 (a) ).

(b) If, on the basis of such investigation and report to him of findings and recommendations made in connection therewith, the President finds the existence of such facts, he shall by proclamation impose

such fees not in excess of 50 per centum ad valorem or such quantitative

limitations on any article or articles which may be entered, or with-

* Section 22 was added to the Agricultural Adjustment Act of 1933 by Public

Law 320, Seventy-fourth Congress, approved August 24,1935 (49 Stat. 773). As

originaUy enacted this section authorized the President to restrict the importations of any agricultural commodity or product whenever he found, after investigation by the Tariff Commission and on the basis of its findings and recommendations made pursuant thereto, that such importations were adversely affecting

programs or operations under the Agricultural Adjustment Act of 1933. Section

22 has been amended several times and the President is now authorized to impose quantitative restrictions (quotas) and fees on any agricultural commodity

or product whenever he finds, pursuant to appropriate proceedings by the Tariff

Commission, that imports of such commodity or product adversely affect or

seriously threaten any program or operation undertaken by the Department of

Agriculture. The Secretary of Agriculture has the responsibility of advising

the President regarding the need for action under section 22. In addition, the

Secretary of Agriculture is charged with the responsibility of determining the

need for emergency action under section 22 with respect to perishable agricultural

commodities.

155,
156 MISCELLANEOUS LAWS

drawn from warehouse, for consumption as he finds and declares

shown by such investigation to be necessary in order that the entry of

such article or articles will not render or tend to render ineffective, or

materially interfere with, any program or operation referred to in

siibsection (a) of this section, or reduce substantially the amount of

any product processed in the United States from any such agricultural commodity or product thereof with respect to which any such

program or operation is being undertaken : Provided^ That no proclamation under this section shall impose any limitation on the total

quantity of any article or articles which may be entered, or withdrawn from warehouse, for consumption which reduces such permissible total quantity to proportionately less than 50 per centum of the

total quantity of such article or articles which was entered, or withdrawn from warehouse, for consumption during a representative

period as determined by the President : And provided further^ That in

designating any article or articles, the President may describe them by

physical qualities, value, use, or upon such other bases as he shall determine (7 U. S.C. 624 (b) ).

(c) The fees and limitations imposed by the President by proclamation under this section and any revocation, suspension, or modification thereof, shall become effective on such date as shall be therein

specified, and such fees shall be treated for administrative purposes

and for the purposes of section 32 of Public Law No. 320, Seventyfourth Congress, approved August 24, 1935, as amended, as duties

imposed by the Tariff Act of 1930, but such fees shall net be considered

as duties for the purpose of granting any preferential concession under

any international obligation of the United States (7 U. S. C. 624 (c) ).

(d) After investigation, report, finding, and declaration in the

manner provided in the case of a proclamation issued pursuant to subsection (b) of this section, any proclamation or provision of such proclamation may be suspended or terminated by the President whenever

he finds and proclaims that the circumstances requiring the proclamation or provision thereof no longer exist or may be modified by the

President whenever he finds and proclaims that changed circumstances

require such modification to carry out the purposes of this section (7

U.S.C. 624(d)),

( e) Any decision of the President as to facts under this section shall

befinal (7 U.S.C. 624(e)).

(f) No trade agreement or other international agreement heretofore or hereafter entered into by the United States shall be applied in a

manner inconsistent with the requirements of this section (7 U. S. C.

624 (f)).

[PUBLIC LAW 50, Eighty-second Congress. * * * SEC. 8. (a).

In any case where the Secretary of Agriculture determines and reports to the President and to the Tariff Commission with regard to

any agricultural commodity that due to the perishability of the commodity^ a condition exists requiring emergency treatment, the Tariff

Commission shall make an immediate investigation under the provisions of section 22 of the Agricultural Adjustment Act, as amended,

or under the provisions of section 7 of this Act to determine the facts

and make recommendations to the President for such relief under

those provisions as may be appropriate. The President may take immediate action however, without awaiting the recommendations of the

Tariff Commission if in his judgment the emergency requires such
MISCELLANEOUS LAWS 157

action. In any case the report and findings of the Tariff Commission

and the decision of the President shall be made at the earliest possible

date and in any event not more than 25 calendar days after the submission of the case to the Tariff Commission.

^ H: ^ ^ ^ :¥ ^

[SEC. 7. (a). Upon the request of the President, upon resolution of

either House of Congress, upon resolution of either the Committee

on Finance of the Senate or the Committee on Ways and Means of the

House of Representatives, upon its own motion, or upon application

of any interested party, the United States Tariff Commission shall

promptly make an investigation and make a report thereon not later

than one year after the application is made to determine whether any

product upon which a concession has been granted under a trade

agreement is, as a result, in whole or in part, of the duty or other

customs treatment reflecting such concession, being imported into the

united States in such increased quantities, either actual or relative,

as to cause or threaten serious injury to the domestic industry producing like or directly competitive products.

in the course oi any such investigation, whenever it finds evidence

of serious injury or threat of serious injury or whenever so directed

by resolution of either the Committee on Finance of the Senate or

the Committee on Ways and Means of the House of Eepresentatives,

the Tariff Commission shall hold hearings giving reasonable public

notice thereof and shall afford reasonable opportunity for interested

Earties to be present, to produce evidence, and to be heard at such

earings.

Should the Tariff Commission find, as the result of its investigation and hearings, that a product on which a concession has been

granted is, as a result, in whole or in part, of the duty or other customs

treatment reflecting such concession, being imported in such increased

quantities, either actual or relative, as to cause or threaten serious injury to the domestic industry producing like or directly competitive

Eroducts, it shall recommend to the President the withdrawal or modication of the concession, its suspension in whole or in part, or the

establishment of import quotas, to the extent and for the time necessary to prevent or remedy such injury. Within 60 days, or sooner if

the President has taken action under subsection (c) of this section,

the Tariff Commission shall transmit to the Committee on Finance of

the Senate and the Committee on Ways and Means of the House of

Kepresentatives an exact copy of its report and recommendations to

the President.

(b) In arriving at a determination in the foregoing procedure the

Tariff Commission, without excluding other factors, shall take into

consideration a downward trend of production, employment, prices,

profits, or wages in the domestic industry concerned, or a decline in

sales, an increase in imports, either actual or relative to domestic production, a higher or growing inventory, or a decline in the proportion

of the domestic rnarket supplied by domestic producers.

(c) Upon receipt of the Tariff Commission's report of its investigation and hearings, the President may make such adjustments in

the rates of duty, impose such quotas, or make such other modifications as are found and reported by the Commission to be necessary to

prevent or remedy serious injury to the respective domestic industry.
1SÍ8 MISCELLANEOUS LAWS

If tlie^OPresident does not take such action within 60 days he shall

immediately submit a report to the Committee on Ways and Means

of the House and to the Committee on Finance of the Senate stating

why he has not made such adjustments or modifications, or imposed

such quotas.

(d) When in the judgment of the Tariff Commission no sufficient

reason exists for a recommendation to the President that a concession

should be withdrawn or modified or a quota established, it shall make

and publish a report stating its findings and conclusions (Trade

Agreements Extension Act of 1951, 65 Stat. 74).]

SECTION 32 OF PUBLIC LAW NO. 320, SEVENTY-FOURTH CONGRESS'

SEG. 32. There is hereby appropriated for each fiscal year beginning with the fiscal year ending June 30, 1936 an amount equal to

30 per centum of the gross receipts from duties collected under the

customs laws during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year. Such sums

shall be maintained in a separate fund and shall be used by the Secretary of Agriculture only to (1) encourage the exportation of agricultural commodities and products thereof by the payment of benefits

in connection with the exportation thereof or of indemnities for losses

incurred in connection with such exportation or by payments to producers in connection with the production of that part of any agricultural commodity required for domestic consumption; (2) encourage

the domestic consumption of such commodities or products by diverting them, by the payment of benefits or indemnities or by other means,

from the normal channels of trade and commerce or by increasing

their utilization through benefits, indemnities, donations or by other

means, among persons in low-income groups as determined by the

Secretary of Agriculture; and (3) reestablish farmers' purchasing

power by making payments in connection with the normal production

of any agricultural commodity for domestic consumption. Determinations by the Secretary as to what constitutes diversion and what

constitutes normal channels of trade and commerce and what constitutes normal production for domestic consumption shall be final.

The sums appropriated under this section shall be expended for such

one or more of the above-specified purposes, and at such times, in such

manner, and in such amounts as the Secretary of Agriculture finds will

effectuate substantial accomplishment of any one or more of the purposes of this section. Notwithstanding any other provision of this

'Basically, the purposes of section 32—through payments or indemnities to

encourage the exportation and domestic consumption of agricultural commodities

and products and to reestablish farmers* purchasing power in connection with

the normal production of agricultural commodities—-remain as originally enacted

in 1935 (49 Stat. 774). Authority to encourage consumption of Agricultural

commodities and products by their utilization among persons in low-income

groups was added by amendment of clause (2) in 1939 (53 Stat. 975). The

Agricultural Act of 1948 (62 Stat. 1257) amended the section to remove fiscal

year restrictions from the expenditure of up to $300,000,000 of funds remaining

unexpended at the end of any fiscal year. The Agricultural Act of 1949 (63 Stat.

1057) required use of section 32 funds principally for certain perishable nonbasic

agricultural commodities and their products. Section 32 funds may be' used

(1) to purchase agricultural commodities and products and to donate them for

relief purposes (15 U. S. C, sec. 713c) ; and (2) to donate commodities to schools

for utilization in the National SchooV Lunch Program (42 U. S. C, sec. 1758).
MISCELLANEOUS LAWS 159

section, the amount that may be devoted, during any fiscal year after

June 30, 1939, to any one agricultural commodity or the products

thereof in such fiscal year, shall not exceed 25 per centum of the funds

available under this section for such fiscal year. The sums appropriated under this section shall be devoted principally to perishable

nonbasic agricultural commodities (other than those designated in title

II of the Agricultural Act of 1949) and their products. The sums

appropriated under this section shall, notwithstanding the provisions

of any other law, continue to remain available for the purposes of this

section until expended; but any excess of the amount remaining unexpended at the end of any fiscal year over $300,000,000 shall, in the

same manner as though it had been appropriated for the service of

such fiscal year, be subject to the provisions of section 3690 of the

Revised Statutes (U. S. C, title 31, sec. Y12), and section 5 of the Act

entitled "An Act making appropriations for the legislative, executive,

and judicial expenses of the Government for the year ending.June

thirtieth, eighteen hundred and seventy-five and for other purposes

(U.S.C., title 31, sec. 713)" (rU.S.C.612 (c)).

[PtJBLic LAW 393, Seventy-sixth Congress. SEC. 1. Any part of

the funds not to exceed $1,500,000 per year, transferred by the Secretary of Agriculture to the Federal Surplus Commodities Corporation created under and to carry out the provisions of section 32 of the

Act of August 24,1935 (49 Stat. 774), as amended, may also be used by

such Corporation for the purpose of diverting surplus fishery products

(including fish, shellfish, moUusks, and crustácea) from the normal

channels of trade and commerce by acquiring them and providing for

their distribution through Federal, State, and private relief channels :

Provided^ That none of the funds made available to the Federal Surplus Commodities Corporation under this Act shall be used to purchase

any of the commodities designated in this Act which may have been

produced in any foreign country. TJie provisions of law relating to

the acquisition of materials or supplies for the United States shall

not apply to the acquisition of commodities under this Act (15 U. S. C.

713C-2).

SEC. 2. (a) From the fund authorized to be transferred by section 1

hereof, the Secretary of Agriculture is authorized to transfer to the

Secretary of the Interior sums as follows to be maintained in a separate fund, $75,000, which shall be used by the Secretary of the Interior

to promote the free flow of domestically produced fishery products in

commerce by conducting a fishery educational service ; and $100,000,

which shall be used by the Secretary of the Interior to develop and increase markets for fishery products of domestic origin (15 U. S. C.

7130-3).] 7

INTERNATIONAL WHEAT AGREEMENT ACT OF 1949 »

SEC. 1. This act shall be known as the "International Wheat Agreement Act of 1949."

'The International Wheat Agreement is a contractual arrangement between

the governments of four wheat-exporting countries and some 42 wheat-importing

countries involving the annual trade of 580,916,690 bushels of wheat, over a

period of 4 years beginning August 1, 1949, within a fixed range of prices. The

agreement was ratified by the President with the advice and consent of the

Senate (Executive M, 81st Cong., 1st sess.). The International Wheat Agreement Act of 1949 is implementing legislation authorizing the necessary action

to carry out the terms of this treaty.
IßO IVaSCELLANEOüS LAWS

SEC. 2. The President is hereby authorized, acting through the

Commodity Credit Corporation, to make available or cause to be made

available, notwithstanding the provisions of any other law, such quantities of wheat and wheat-flour and at such prices as are necessary to

exercise the rights, obtain the benefits, and fulfill the obligations of

the United States under the International Wheat Agreement of 1949

signed by Australia, Canada, France, the United States, and Uruguay,

and certain wheat importing countries (hereinafter called "International Wheat Agreement"). Nothing herein shall be construed to

preclude the Secretary of Agriculture, in carrying out programs to

encourage the exportation of agricultural commodities and products

thereof pursuantto section 32 of Public Law 320, Seventy-fourth Congress, as amended, from utilizing funds available for such programs

in such manner as, either separately or jointly with the Commodity

Credit Corporation, to exercise the rights, obtain the benefits, and

fulfill all or any part of the obligations of the United States under the

International Wheat Agreement or to preclude the Commodity Credit

Corporation in otherwise carrying out wheat and wheat-flour export

programs as authorized by law. Nothing contained herein shall

limit the duty of the Commodity Credit Corporation to the maximum

extent practicable consistent with the fulfillment of the Corporation's

purposes and the effective and efficient conduct of its business to

utilize the usual and customary channels, facilities, and arrangements

of trade and commerce in making available or causing to be made

available wheat and wheat-flour hereunder. The pricing provisions

of section 112 (e) of the Economic Cooperation Act of 1948 and

section 4 of the Act of July 16,1943 (57 Stat. 566), shall not be applicable to domestic wheat and wheat-flour supplied to countries which

are parties to the International Wheat Agreement and credited to

their guaranteed purchases thereunder on and after August 1, 1949,

and up to and including June 3Q, 1950. Where prices in excess of the

International Wheat Agreement prices have been paid for such wheat

and wheat-flour financed by the Economic Cooperation Administration on or after August 1,1949, and up to and including June 30,1950,

the Secretary of Agriculture or Commodity Credit Corporation is authorized to reimburse the Economic Cooperation Administration for

such excess amounts. Funds realized from such reimbursement shall

revert to the respective appropriation or appropriations from which

funds were expended for the procurement of such wheat and wheatflour. There are hereby authorized to be appropriated such sums as

may be necessary to make payments to the Commodity Credit Corporation of its estimated or actual net costs of carrying out its functions

hereunder. The Commodity Credit Corporation is hereby authorized

in carrying out its functions hereunder to utilize, in advance of such

appropriations or payments, any assets available to it (7 U. S. C.

1641).

SEC. 3. (a) The President is hereby further authorized to take

such other action, including prohibiting or restricting the importation

or exportation of wheat or wheat-flour and to issue such rules or regulations which shall have the force and effect of law, as may be necessary in his judgmentin the implementation of the International Wheat

Agreement (7 U. S. C. 1642 (a) ).

(b) All persons exporting or importing wheat or wheat-flour or

selling wheat or wheat-flour for export shall report to the President
MISCELLANEOUS LAWS 161

such information as he may from time to time require and keep such

records as he finds to be necessary to enable him to carry out the purposes of this Act. Such information shall be reported and such records shall be kept in accordance with such regulations as the President

may prescribe. For the purposes of ascertaining the correctness of

any report made or record kept, or of obtaining information required

to be furnished in any report, but not so furnished, the President is

hereby authorized to examine such books, papers, records, accounts,

correspondence, contracts, documents, and memoranda as are relevant

to transactions under the International Wheat Agreement and are

within the control of any such person (7 U. S. C. 1642 (b) ).

(c) Any person failing to make any report or keep any record as

required by or pursuant to this section 3, or making any false report

or record or knowingly violating any rule or regulation of the President issued pursuant to this section 3 shall be deemed guilty of a

misdemeanor and upon conviction thereof shall be subject to a fine

of not more than $1,000 for each violation (7 U. S. C. 1642 (c) ).

(d) Any person who knowingly and willfully exports wheat or

wheat-flour from the United States, or who knowingly and willfully

imports wheat or wheat-flour into the United States for consumption

therein, in excess of the quantity of wheat or wheat-flour permitted

to be exported or imported, asthe case may be, under regulations issued

by the President shall forfeit to the United States a sum equal to two

times the market value at the time of the commission of any such

act, of the quantity of wheat or wheat-flour by which any such exportation or importation exceeds the authorized amount which forfeiture shall be recoverable in a civil suit brought in the name of the

United States (7 U. S. C. 1642 (d) ).

(e) The district courts of the United States and the District Court

of the United States for the District of Columbia shall have jurisdiction of violations of this Act or the rules and regulationsthereunder,

and of all suits in equity and actions at law brought to enforce any

liability or duty created by this Act or the rules and regulations thereunder. Any criminal proceeding may be brought in the district

wherein any act or transaction constituting the violation occurred.

Any suit pr action to enforce any liability «or duty created by this,

Act or rules and regulations thereunder, or to enjoin any violation of

such Act or rules and regulations, may be brought in any such district

wherein the defendant is found or is a resident or transacts business.

The remedies, fines, and forfeitures provided for in this Act shall be

in addition to, and not exclusive of, any of the remedies, fines, and

forfeitures under existing law (7 U. S. C. 1642 (e) ).

(f) Any power, authority, or discretion conferred on the President

by this Act may be exercised through such department, agency, or

officer of the Government as the President may direct, and shall be

exercised in conformity with such rules or regulations as he may

prescribe (7 U. S. C. 1642 (f) ).

(g) There are hereby authorized to be appropriated such sums as

may be necessary to carry out the provisions of this section, including

the necessary expenses and contributions of the United States in connection with the administration of the International Wheat Agreement

(7U. S.C. 1642 (g)).^

(h) Funds appropriated under authority of this Act may be used

for the purchase or hire of passenger motor vehicles, for printing and
162 MISCELLANEOUS LAWS

binding, for rent and personal services in the District of Columbia

and elsewhere without regard to the limitation contained in section

607 (g) of the Federal Employees Pay Act of 1945, as amended,* and

for the employment of experts or consultants or organization thereof,

on a temporary basis, by contract or otherwise, without regard to the

Classification Act, at rates not in excess of $50 per diem (7 U. S. C.

1642 (h)).

(i) The functions exercised imder authority of this Act shall be

excluded from the operation of the Administrative Procedure Act

(60 Stat. 237) except as to the requirements of sections B and 10

thereof (7 U. S. C. 1642 (i) ).

(j) The term "person" as used in this section shall include the singular and the plural and any individual, partnership, corporation, association, or any other organized group of persons (7 U. S. C. 1642

(!))•

COMPROMISING, ADJUSTING, OR CANCELING DEBTS

ACT OF DECEMBER 20, 1944

The Secretary of Agriculture, hereinafter referred to as the Secretary, is hereby authorized and directed to compromise, adjust, or

cancel indebtedness arising from loans and payments made or credit

extended to farmers under the provisions of the several Acts of Congress or programs enumerated in section 2: Provided^ Thsit the

Secretary finds, after such investigation as he deems sujfficient to establish the facts, that (1) said indebtedness has been due and payable

for 5 years or more; (2) the debtor is unable to pay said indebtedness

in full and has no reasonable prospect of ¿>eing ablento do so; (3) the

debtor has acted in good faith in an effort to meet his obligation; and

(4) the principal amount of said indebtedness is not in excess of $1,000.

The Secretary is hereby further authorized at his discretion to cancel

and discharge indebtedness arising under said Acts of Congress or

programs when the amount of said indebtedness is less than $10, or

the debtor is deceased and there is no reasonable prospect of recovering from his estate, or his whereabouts has remained unknown for

two years and there is no reasonable prospect of obtaining collection,

or he has been discharged of the indebtedness in any proceeding under

the Act entitled "An Act to establish a uniform system of bankruptcy

throughout the United States." The compromises, adjustments, or

cancelations authorized by this section shall be effected through such

agencies, upon such terms and conditions, and subject to such regulations, as the Secretary may prescribe, and the Secretary may delegate

the exercise of any such powers and functions to such ofiicers or employees of the Department of Agriculture as he may designate (12

Ü. S.C.1150). ^ . ,^ ^

SEG. 2. The provisions of this Act shall apply to any indebtedness

of farmers arising from loans or payments made or credit extended

to them under any of the following Acts or programs: (a) July 1,

1918 (40 Stat. 635) ; March 3, 1921 (41 Stat. 1347) ; March 20, 1922

(42 Stat. 467) ; April 26, 1924 (43 Stat. 110) ; February 25, 1927

(44 Stat. 1245); February 28, 1927 (44 Stat., part II, 1251) ; February 25, 1929 (45 Stat. 1306), as amended May 17, 1929 (46 Stat.

3) ; March 3, 1930 (46 Stat. 78-79), as amended April 24, 1930 (46

* See. 607 (g) was repealed Sept. 12,1950,64 Stat. 843.
MISCELLANEOUS LAWS 163

Stat. 254) ; December 20, 1930 (46 Stat. 1032), as amended February

14,1931 (46 Stat. 1160) ; February 23,1931 (46 Stat. 1276) ; January

22, 1932 (47 Stat. 5) ; March 3, 1932 (47 Stat. 60) ; February 4, 1933

(47 Stat. 795) ; February 23, 1934 (48 Stat. 354) ; June 19, 1934 (48

Stat. 1056) ; February 20, 1935 (49 Stat. 28) ; March 21, 1935 (49

Stat. 50) ; April 8, 1935 (49 Stat. 115) (Executive Order No. 7305) ;

January 29, 1937 (50 Stat. 5) ; and February 4, 1938 (52 Stat. 27) ;

(b) Agricultural Adjustment Act (of 1933) ; Bankhead Cotton Act

of April 21, 1934, on account of the several cotton tax-exemption

certificate pools ; Jones-Connally Cattle Act of April 7, 1934; Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934;

Kerr Tobacco Act of June 28, 1934, and JPublic Resolution No. 76,

approved March 14, 1936; section 32 of the Act of August 24, 1935,

and related legislation; Supplemental Appropriation Act, fiscal year

1936 ; sections 7 to 17 of the Soil Conservation and Domestic Allotment Act; Sugar Act of 1937; sections 303 and 381 (a) of the Agricultural Adjustment Act of 1938 and related or subsequent legislation

authorizing parity or price adjustment payments ; title IV and title

V of the Agricultural Adjustment Act of 1938 and related legislation ;

any amendment to any of the foregoing Acts heretofore and any other

Act of Congress heretofore enacted authorizing payments to farmers

under programs administered through the Agricultural Adjustment

Agency ; (c) Loans made by or through the Eesettlement Administration or the Farm Security Administration out of funds appropriated

or made available by or pursuant to the following Acts : April 8,1935

(49 Stat. 115) ; June 22, 1936 (49 Stat. 1608) ; February 9, 1937 (50

Stat. 8) ; June 29, 1937 (50 Stat. 352) ; The Bankhead-Jones Farm

Tenant Act, July 22,1937 (50 Stat. 522 et seq.) ; the Water Facilities

Act of August 28,1937 (50 Stat. 869 et seq.) ; March 2,1938 (52 Stat.

83, Public Eesolution No. 80) ; June 21.1938 (52 Stat. 809) ; June 30,

1939 (53 Stat. 927) ; June 26,1940 (Public Eesolution No. 88) ; floodrestoration loans. Second Deficiency Appropriation Act, 1943 (57

Stat. 537, 542) ; and subsequent legislation appropriating or making

available funds for such loans; commodity loan, purchase, sale, and

other programs of the Commodity Credit Corporation; and cropinsurance programs formulated pursuant to title V of the Agricultural Adjustment Act of 1938 (the Federal Crop Insurance Act),

and any amendment or supplement thereto heretofore or hereafter

enacted. This Act shall also apply to any indebtedness of farmers

evidenced by notes or accounts receivable, title to which has been

acquired in the liquidation of loans to cooperative associations made

under the provisions of the Act of June 15, 1929 (46 Stat. 11) (12

Ü.S.G. 1150a),

SEC. 3. There is hereby authorized to be appropriated, out of any

money in the Treasury not otherwise appropriated, such amount

as may be necessary to enable the Secretary to carry out the provisions

of this Act, and the current and subsequent appropriations to enable

the Secretary to administer the respective Acts of Congress or programs to which the aforesaid payments or loans or extensions of

credit relate shall also be available for the administrative expenses

of carrying outthis Act (12 U. S. C. 1150 b).

SEC. 4. XR^P^aled, effective September 1, 1948, by 62 Stat. 862.

Provisions of this section are now covered by sections 222 and 1026

of Title 18, U. S. C]
INDEX

Page

Acreage allotments. See Corn, Cotton, Peanuts, Bice, Tobacco, Wheat.

Actual production. See Production,

Adjustment of marketing quotas 69-70

Administrative areas 6,62,74

Administrative expenditures:

Agricultural Adjustment Act of 1938 76-77

Commodity Credit Corporation Charter

Act- -— - 121-123

Compromising, adjusting or canceling debts 163

Federal Crop Insurance Act 81,85

International Wheat Agreement Act of 1949. 161

Soil Conservation and Domestic Allotment

Act - 2,12,76

Sugar Act of 1948— 101

Administrative expenses, deduction of, from

payments- - ----— 12,75,77

Administrative Procedure Act, functions excluded from. - - 162

Advances:

Administrative expenses of committees 75

Agricultural conservation program 7,76

Commodity Credit Corporation 76,114

Crop inisurance premiums 13,76

Advisory committee, crop insurance 85

Aerial photographs, availability of- 74

Agricultural Act of 1949, see also Price support. 108-

Agricultural Adjustment Act (of 1933):

Imports under Section 22 - — 155

Agricultural Adjustment Act of 1938 — 17-77

Agricultural commodities, products and byproducts:

Base period for prices— 18-21

Expenditure to encourage exportation. 158

Promotion of sale by Secretary of Commerce.--—— - 19

Research into uses and markets 18

Stimulation of use.a— - 18

Transportation charges, parties to complaints — 17

Agricultural commodity, defined * 12,86

Basic - 116

Nonbasic 116

Agricultural conservation program a—. 3-14

Administration by Secretary —. 6

Agricultural experiment stations, production

exempt from penalty 71

Agricultural Extension Service. See Extension Service.

Allocation of funds to:

Bureaus and oflBces of the Department for—

Agricultural adjustment 77

Federal crop insurance 81

Price support operations — 124

Soil conservation 12

Sugar— —— 101

Commodities - 14

Research laboratories 18

Secretary of Commerce — 19

States. - 4-5

Appointment of officers and employees:

Agricultural Adjustment Act of 1938 74-75

Commodity Credit Corporation 123

Federal Crop Insurance Corporation. 80-81

Soil Conservation and Domestic Allotment

, Act - - 2,13,76

Sugar Act of 1948.-. - 101

Appröpr^tion, authorization and limitation

of, for Soil Conservation and Domestic

Allotment Act .-. 3,13-14

Appropriation Act, 1953 fiscal year:

Agricultural Adjustment Act of 1938—

Acreage allotments and marketing quotas. 148

164

Page

Appropriation Act, 1953 fiscal year—Con.

Agricultural Adjustment Act oi 1938—Con.

Limitation on funds transferred to Section

392 148

Agricultural production programs.- 148

Commodity Credit Corporation 149

Conservation and use of agricultural land

resourcesAdministrative expense funds for 1952 agricultural conservation program.. _ 147

Allocation of funds for most needed practices 148

Allocation of 1953 program fimds among

States —- 147

Certificate of performance by claimant--_ 147

Conservation materials and services - 148

Exhibits, preparation and display. —.._— 147

Formulation of 1953 programDistribution of funds atoong States 147

Limitation on amount of payment to

participants.-— 147

Funds available for 1952 program. 147

Information employees, prohibition

against - 147

Political activity prohibited _ 148

Prohibition against influencing legislation — 148

Soil Conservation Service, utilization of.- 148

State committees to determine and approve practices - 148

Federal Crop Insurance Corporation 149

General provisionsAliens, employment of.. 150

Automobiles -— 150

Cotton, prohibition against price predictions 150

Funds for contracts relating to research— iso

Lands, limitation on option to purchase.- 150

Legislation, prohibition against acts influencing - - 151

Personnel, limitations on—

Chauffeurs — — 151

Information specialists 152

Reduction in funds.-. — 152

Striking and advocating overthrow of

Government, prohibition against, by

Government employees 150

Twine, prohibition against purchase of 150

International wheat agreement. — 149

Sugar Act 149

Appropriations:

Acreage allotments and marketing quotas,

fiscal year—

1950 - 140

1951 - , — 142

Agricultural production programs, fiscal

year—

1952 * 146

1953 - - 148

Agricultural Adjustment Act of 1938, fiscal

year—

1947 129

1948 - 132

1949 - 135

1950 140

1961 :- 142

1952— — 145

1953 148

Commodity Credit Corporation, fiscal

year—

1947 131-132

1948 134-135

1949 - 138

1950- - - — 140-141
HÍDEX 165

Page

Appropriations—Continued

Commodity Credit Corporation, fiscal

year—Continued

IftSl 143

1952 146

1953 - 149

Conservation and use of agricultural land resources (Sees. 7-17, Soil Conservation

and Domestic Allotment Act), fiscal

year—

1947 - 129-130

1948 — 132-133

1949 - 136-137

1950 138-140

1951 141-142

1952 144-145

1953 -— 147-148

Federal Crop Insurance Corporation, fiscal

year—

1947 131

1948 - — 134

1949 137

1950. - 140

1951 ,-— 143

1952. - 146

1953 - —- 149

General provisions of 1953 fiscal year act.- 150-153

International wheat agreement, fiscal year—

1952 146

1963.... u 149

Section 32 of Public Law 320, 74th Cong.,

Exportation and domestic consumption

of agricultural commodities, fiscal year—

1947 - 131

1948 135

1949 - 137

1950 - 140

Sugar Act of 1948, fiscal year—

1947 : 131

1948 134

1949 137

1950 _ 140

1951 143

1952 145

19,53 - 149

Assignment, agricultural conservation program payments 12

Base period for prices - 3,19-21

Bushel, defined 22

Buyer, collection and payment of penalty by_. 33,

38, 46, 65, 70

Cancellation of debts 162-163

Carriers, common, records and reports required of 71

Carry-over, defined:

Corn, cotton, peanut?, rice, tobacco, wheat— 22

Nonbasic agricultural commodity 116

Classification Act of 1949 2,81,124

Commercial corn-producing area, defined 22-23

Committees, local, county, and State:

Establishment 6-7

Expenses -^ 12,75-77

Functions and utilization for— "

Agricultural adjustment 21-22,

30-31, 40, 42, 46, 50-54, 58, 63-65, 72, 74-77

Commodity credit 124

Federal crop insurance 81

Soil conservation 8,11-12

Sugar— ^ 100

Names and compensation of members and

employees .__ 77

Committee, review. See Review committee.

Commodity Credit Corporation Charter Act,

see aUo Commodity Credit Corporation. 119-126

Commodity Credit Corporation. See also

Price support.

Acquisition of plants and facilities 120

Advances for crop insurance premiums 76

Allotment of funds to other agencies 124

Annual report 124

Board of directors _ 123

Advisory board 123

Borrowing authority 121

Bylaws, adoption of _ 120

Capital stock.__ 122

Claims, authority to adjust and settle 122

Cold storage facilities 120

Contracts and agreements 120

Page

Commodity Credit Corporation. See also

Price support—Continued

Cooperation with other agencies. 124

Corporate cowers 121-122

Counterclaims 119

Creation and purposes „_ 119

Crimes and offenses .____ 124-125

Dissolution of Delaware corporation 126

Exchange of commodities for foreign products 121

Exemption from legal process 119

Expansion and development of markets 122

Expenditures, authority to determine 121

Exporting agricultural commodities _. 122

Federal Tort Claims Act applicable 120

Free use of mails 120

General powers 119-122

Insurance on cotton __ . 73

Interest of Members of Congress.. 124

Jurisdiction of courts 119-120

Legal history of 127-128

Limitation on actions 119

Loans and advances, authority to make 122

Location of oflaces ._ 119

Munitions Board, Department of Defense.. 121

National School Lunch Act 114

Personnel 123-124

Procuring agricultural commodities. 122

Reconcentration of cotton 73

Regulations and rules, authority to adopt.> 120

Removal or disposition of surplus commodities 122

Research, restrictions on 122

Restrictions on acquisition of real and personal property 120

Right to intervene in proceedings 119

Rights, privileges and immunities of, same

as united States.. 120

Set-offs 119

Specific powers. ^ 122

Statutes applicable to Corporation 122

Storage facility loans to grain producers 121

Strategic and Critical Materials Stock Piling

Act ,-__ 121

Summary of legal history of Corporation. 127-128

Supporting prices of agricultural commodities... 122

Transfer of assets of Delaware corporation.. 126

Use of funds and other assets ..._ 123

Utilization of associations and trade facilities 124

Utilization of usual trade channels, etc... 120-122

Conditions for receiving payment or grant of

aid 2,6-7,9,56,97-98

Confidential records and reports _ _ 71,103

Congress, interest of members in contracts

with the Government 74,85

Conservation materials and services, see also

Grants of aid 7

Consumer safeguards 27

Consumption, normal domestic human 3

Consumption, normal year's domestic:

Defined—

Com, cotton, tobacco, wheat 24

Rice - 26

Cooperation, for soil conservation:

Government agencies 2

States _ 4

Cooperative associations, recognition and

encouragement of 7,18

Cooperator, defined 115

Corn:

Acreage allotments and marketing quotas.. 34-40

Acreage allotment for commercial areaAmount of_ 40

Apportionment to counties 40

Apportiorunent of county allotment to

farms _ 40

When proclaimed 40

Acreage allotments under Soil Conservation and Domestic Allotment Act 7-8

Appeal relating to farm quota and allotment, see also Review of farm marketing quota and acreage allotment... 67-69

DefinitionsActual production 21

Bushel- 22

Carry-over 22

Commercial corn-producing area 22-23
166 INDBX

Page

Com—Continued

Definitions—Continued

Oooperator. - 110,115

Com - - 21

Farai consumption ,. 23

Farai marketing excess- — 36

Faim marketing quota.- 36

Market, marketed, for market 23

Marketing year .. - 23

Normal production 24

Normal supply 24

Normal year's domestic consumption— 24

Normal year's exports - 25

Normal yield — - - 8,9,25,26

Reserve supply level- 26

Total supply 26

Farm acreage allotments 40

Notice of farm acreage allotment 68

Farm marketing excessApplication for adjustment of storage

amount.. _ 37

Adjustment in amount of _ 37

Dispositionofcorndeliveredto Secretary, 37

Failure to deliver or store 37

Nonallotment farms — 37-38

Producer subject to penalty on 37

Reduction of stored amount by underplantingor producing sub normal crop. 37

Regarded as available for marketrug 36-37

Regulations governing delivery or storage ,- 37

Farm marketing quotas—

Amount of farm quota — 36

Conditions requiring proclamation of 36

Effect of termination ..- 39

Exemption of farms producing 300

bushels.-- 36

Exemption of farms planting 15 acres or

less.— .-. 37-38

Increase or termination 36,69-70

Notice of farm marketing quota 68

Termination of, on basis of September

crop estimate - 36

When proclaimed 36

Identification of marketings 72

Increase or termination of quptas and

allotments 27,36,69-70

Legislative finding 34*-36

Measurement of farms - — 72

PenaltiesApplication for adjustment of. 37

Buyer to collect and pay — 38

Depletion of stored excess corn 37

Exemption of corn marketed by experi

inent stations.- 71

Exemption of nonallotment farms....— 37-38

Lien for, on entire crop .- 37

Marketmgs subject to, until excess

stored or delivered.., 38

Nonallotment farms 37-38

Payment of, upon failure to deliver or

store excess corn. 36-37

Producer subject to penalty 36-37

Rate of penalty 36

Refund of penalty 37,70

When due.. 36-38

Proclamations—

Acreage allotment for United States 40

Commercial corn-producing area- _ 39

Increase or termination of marketing

quotas 69-70

Marketing quotas 36

Normal supply, reserve supply level,

total supply 39

Referendum results 36-36

Referendum—

Effect of results 36

Eligible voters 35

Notice of farm quota and allotment

mailed prior to referendum 68

Proclamation of results , 36

When conducted..- 35

Regulations issuance by Secretary 37,72

Reports and records required of buyers,

warehousemen and others.., 71

Data confidential 71-72

Page

Corn—Continued

Review of farm quota and allotment*

see also Review of farm marketing

quota and acreage allotment... ^^.. 67-69

Crop insurance. See Crop insurance.

Loans. Sec Price support.

Parity payments *...—^.- 27

Cotton:

Acreage allotments and marketing quotas

(American upland cotton) _ 47-56

i Acreage planted, effect of, on agricultural

conservation program payment ^-— 56

Adjustment of acreage planted to cotton.. 72

Administrative areas 62

Appeal relating to farm quota and allotment, see also Review of farm marketing quota and acre age allotment 67-69

County acreage allottnents—

Adjustments in - 50

Apportionment to old cotton farms 50-51

County cropland factor 51

Reserves for adjustments and new

farms ^- 50-51

Definitions—

Actual production 22

Carryover 22

Farm marketing excess ._ 54

Market, marketed, for market 23

Marketing year ...« 23

National average yield . 24

Normal production ^........ 24

Normal supply _ 24

Normal year's domestic consumption 24-25

Normal year's exports 25

Normal yield, county and farm.,... 26,26

Parity - 19-21

Total supply _ 27

Excess acreage excluded from allotment

calculations .'_ 53

Exclusion of acreage and yield data for

1949 63

Farm acreage allotmentsAdjustments in. old farm allotments.. - _ 61

Adjustments in allotments for small

farms 51

Apportionment of county allotment to

old farms 60-51

Farms acquired for governmental use... 63

Farms returned to agricultural production from governmental use 63

Minimum farm allotments for 1950 52

Minimum, for old farms..... 50

New farms 61

Release and reapportiônment of 1950

farm allotments.- 51-52

Farm marketing excess—

Adjustment in amount of ._— 54

Amount of farm marketing excess.—.— 54

Producer subject to penalty on . 65

Regarded as available for marketing.,.. 66

Farm marketing quotasAmount of farm quota 64

Increase or termination 69-70

Identification of marketings.--,...-_^ 72

Legislative findings .,. 47-48

Measurement of farms —... 72

National acreage allotmentAmount of-_ — 49

Apportionment to States:

For 1950 and 1951 49-50

For 1952 50

For 1953 and subsequent years., 49

When proclaimed —. 49

National marketing quota—

Amount of-_ 48

Conditions requiring proclamation of... 48

Minimum national marketing quota 48

When proclaimed - 48

PenaltiesBuyer to collect and pay 70

Exemption of marketings by experiment

stations - 71

Interest on unpaid penalty 65

Lien for, on entire crop.-^ — 65

Long staple cotton exemption 66

Producer subject to . .— 65
INDEX 167

Page

Cotton—Continued

Penalties—Continued "

Rate of penalty ^ —„.. 66

Refund of penalty — 56,70

Proclamations—

Increase or termination of marketing

quotas. —- -— 69-70

National acreage allotment 49

National marketing quota 48

Referendum results.^ - 49

ReferendumEffect of results 49

Eligible voters 48

Notice of farm quota and allotment

mailed prior to referendum 68

Proclamation of results . 49

When conducted . 48

Regulations, issuance by Secretary . 72

Reports and records -_-. 71

Ayailabüity of data on allotments and

quotas, -- 53

Data confidential 71-72

Information required of ginners, buyers

and others 71

Review of farm quota and allotment, see

also Review of farm marketing quota

and acreage allotment 67-69

Standard grade of cotton for parity and

price support 21,114

State acreage allotments—

Apportionment to counties.- 60

Minimum State allotment 53

Reserve for adjustments and new farms. 50

War crops and service, credit for ._.. 49

Crop insurance. See Crop insurance.

Loans. See Price support.

Long staple cotton:

Applicability of provisions of Act relating to acreage allotments and marketing quotas for cotton 56

Exemption of, from acreage allotments

and marketing quotas for American

Upland cotton, 56'

Loans. See Price support.

National marketing quota—

Amoimt-.- -_--. 65-56

Minimum national quota 65-56

When proclaimed- ^-.. 66

Rate of penalty -- _ 66

Varieties of long staple cotton— _. 65

Parity payments — 27

County agricultural extension agent -. 6

County committee, election of _— 6

County committee, secretary to... 6

County convention, election of delegates to— 6

Court:

Jurisdiction— 72,80,83,101,119-120,161

ReviewMarketing quotas 68-69

Sugar allotments 94-95

Crop insurance. See also Federal Crop Insurance Corporation.

j^dvances to producers 13

Agricultural commodities defined 86

Amount of insurance coverage.. 82

Applications for, number required 83

Claims for losses .. .-.- -.

Corn...

Cotton - 82

Cottonseed 84

Counties, number in which insurance to be

offered .— 82

Criminal provisions applicable-, 86-87

Crops insured 82

Declaration of purpose - 79

Failure to reseed to same crop or to follow

good farming practices ..- 82-83

Flax _ 82

Indemnities free from levy 84

Interest of Members of Congress 85

Investment insurance 82-83

Jurisdiction of courts on claims 83

Limitations on basis of risk involved ._ 83

Minimum amount of participation 83

Multiple crop insurance. 82

Premiums _ _ 83

Neglect or malfeasance of producer - 83

Page

Crop insurance—Continued

Reinsurance for private companies. .->.. 82

Risks insured against 82

Tobacco— 82

Wheat - 82

Cropland, government owned, paiements to-- 11

Data, latest available to be used 27

Deatn, incompetency, or disappearance, person entitled to payment - - 74,100

Debts, compromising, adjusting or canceling—

Applicable statutes and programs 162-163

Appropriation authorization 163

Conditions under which action authorized- - 162

Regulations, issuance by Secretary — 162

Declaration of policy. Agricultural Adjustment Act of 1938 - 17

Deficiency, loan collateral, liabüity for 114

Definitions:

Actual production 21-22,36,44

Adjusted base price — 19

Affect interstate and foreign commerce 21

Agricultural commodity - 12,86

Basic agricultural commodity 116

Bushel 22

Carry-over - 22,116

Commercial corn-producing area 22-23

Cooperator > —— 115

Com. -. 21

Department - 21

Direct-consumption sugar 89

Farm consumption 23

Farm marketing excess. 36,44,54,59

Farm marketing quota 31,36,44,54,59,63

Interstate and foreign commerce 21

Liquid sugar.. ^^- — 89

Long staple cotton - — 55

Manufactured sugar -. 306

Manufacturer, sugar... - 104

Market, marketed, mai keting 23

Marketing year 23-24,117

National average yield 24

Nonbasic agricultural commodity - 116

Normal production - 24

Normal supply '. . 24,116

Normal year's domestic consumption.. 24r-25

Normal year's exports 25

Normal yield. 25-26

Parity, prior to Agricultural Act of 1949 20-21

Parity, income - 21

Parity index — 19

Parity price 19

Peanuts 66

Person. _ 21,89,106,162

Producer, sugar , 90

Quota, sugar - 90

Raw sugar 89

Raw value, sugar .—— 90

Reserve supply level. — - 26

Secretary —, 21,90

State - ->. 21

Storable commodities - 115

Sugar ——— 89

Sugars - 89

Supply percentage -.— 116

Tobacco 26

Total sugar content - - 90

Total sugars - 106

Total supply 26-27,116

Transitional parity price 20

United States - 21,106

Demonstrational projects _ — 1

Deposit of funds:

Orop insurance .,. 84

Excise tax, sugar - — 104

Marketing penalties 33,65,70

Photographic reproductions. _^-. 74

Determinations, sugar - 91-92,96-99

Disappearance, death, or incompetency, person entitled to payment ——— 74,100

District attorneys, enforcement of Sugar Act

by 72,101

District courts, jurisdiction of-. 72,80,83,101,119,161

Diverted acreage:

Corn .— 8,40

Rice - — 57

Tobacco 29-31

Wheat.-... — 8,42

22*946«—52- -12
1^ TÑt>-EX

Page

Domestic markets, expansion of, for agricultural commoditieé—— — 13,18,168

Election of local and county committees._._,_ 6

Eligibility to vote in committee elections..— 6

Enforcement of Agricultural Adjustment Act

of 1938.-_ .-— — 72

Extension Service —— — 74,100

County agent — 6,12

State director -—- 6-7

Facts constituting basis for agricultural conservation program payment, Sugar or parity

payment, loan, or price support, cönclüsiveness of. - 13,74,100

Fair prices for conservation materials and

services.—-- - — 7,

Farm, definition of, for purposes of sugar payments-—. -— 99

Farm marketing excess:

Corn......—.———— 36-37

Cotton -^ - - 54-55

Rice 5^0

Wheat-... -— 44-^5

Farm marketing quotas. See Com, Cotton,

Peanuts, Rice, Tobacco, Wheat.

Farms. small, provisions relating to 7,

29-31,36-37,45-46,50-51,66,99

Federal Crop Insurance Act.. 79-87

Federal Crop Insurance Corporation:

Accounting by ^5

Actions on claims - 83-84

Advances by CCC for payment of premiums 76

Advisory committee .-- 85

Allotment of funds to bureaus, oflBces, and

agencies 81-82

Annual reports - - 85

Appropriation, authorization for administrative costs .-— 85

Appropriations for fiscal years 1947-1953.

See Appropriations.

Audit of accounts by General Accounting

Office - 85

Board of Directors 79-80

By laws, adoption of 80

Capital stock - 79

Claims for losses.. - - 83

Compensation, injured employees 81

Corporate powers - 80-81

Corporate seal _ - 80

Court action, by and against 80

Creation . -.- - 79

Crimes and offenses 86-87

Deposit of funds - 84

Employees to furnish bonds. 81

Exemption from legal process— 80

Exemption from taxation. - 84

Expenditures, authority to determine 81

Fiscal agent of Government 86

Free use of mails... - 80

Fimds, deposit and investment 84

General powers of Corporation 80-81

Incidental powers 81

Indemnities, payment of 83

Location, principal office 79

Management. 79

Manager 79

Non-administrative and nonoperating expenses - 85

Offset purchases and sales 83-84

Personnel —— 81

Premium rates 83

Premium reserves —- 83

Premiums, collection or payment of._. ,83

Publication of list of indemnities paid 83

Purchase, handling, and sale of agricultural

commodities 83-84

Purpose of Act..- - 79

Regulations...— 80,86

Report to Congress 83

Research, surveys, and investigations ... 81

Right to amend Act — 86

Separability w - 86

Tax exemption - -— 84

Utilization:

Cooperative associations 81-82

Local committees or associations 81-82

Fees, import 155-158

Finality of determinations.. 13,20,74,81,100,117,158

Page

Fines and forfeitures:

Agricultural Adjustment Act of 1938 71

Commodity Credit Corporation.-....-..> 124-125

Federal Crop Insurance Corporation...*... 86-87

International Wheat Agreement.. _--_. 161

Sugar Act ...—. .. 101-102

Fish and fish products, surpluses of 159

Foreign markets, expansion of 13,158

Freight rates, adjustment of ...- 17-18

Government-owned cropland, payments on.- 11

Grants of aid:

Assignment of payments earned _ 12

Increase of small payments.-._.„..._...... 10-11

Review of basis for or amount of payment— 6,9-11

Ten-thousand-dollar limitation _. _ 11

Grants to agricultural producers, conditions

of payment 9

Hearings:

Adjustment of marketing quotas^— ^— 69

Imports - -.— 155

Parity prices 20

Price support level ..- 114

Review committee— _ 67-68

. Sugar 93-94,102-103

House of Representatives, Committee on

Ways and Means. _.. 157-158

Import quotas and fees under Section 22 of

Agricultural Adjustment Act of 1933..— 155-158

Imports and exports:

Farm commodities, investigation of cause

of reduction of exports 19

President's authority under Section 22 of

Agricultural Adjustment Act of 1933.. 155-158

See also Sugar.

Incompetency, death, or disappearance, person

entitled to payment -.-..._ 74,100

International Wheat Agreement Act of 1949. 159-162

Appropriation authorization... 161

Fines and forfeitures ._.. ..—.... 161

Jurisdiction of courts - . 161

Person, defined 162

. Regulations and rules, issuance by President ..— 160

Utilization of Commodity Credit Corporation 160

Interstate Commerce Commission:

Department of Agriculture, coopération^ 17-18

Farm products, prosecution of complaints

by Secretary of Agriculture *—... 17

Hearings before- — 18

Investigations — 1,

10,12,19,23,69-70,81,102-103,155-157

Landlords, tenants, or sharecroppers—7,10-11,32,99

Laws, miscellaneous _ _ 154-163

Livestock and poultry producers, protection

of income of 10

Livestock feed, sugar ...—.. 105

Loans on agricultural commodities. See Price

support.

Local administrative areas ..— 6,52,74

Local and county committees. See Committees.

Long staple cotton. See Cotton.

Manufacturers, sugar tax...... 103-107

Maps, furnished to governmental agencies 74

Market, marketing, or marketed, definition of. 23

Marketing penalties. See Penalties.

Marketing percentage, corn ^.-....- 38

Marketing quotas:

Adjustment of quotas and enforcement— 69-70,72

Commodities subject to—

Com 34r40

Cotton 47-56

Peanuts 61-67

Rice - - 56-60

Tobacco - 27-34

Wheat - . 40-47

Review of farm marketing quotas by review

committees . 67-69

Marketing quotas, transfer of. . 31,47

Marketing year:

Corn 23

Cotton 23

Peanuts - 65

Rice - 24

Tobacco 24

Wheat 24
INDEX 169

Page

Measurement of farms 72

Acreage planted to cotton in 1951.. 145

Members of Congress, statutes as to interest

not applicable _ _. 74,85

Miscellaneous laws - 154-163

Mosaics, furnished to governmental agencies.- 74

National acreage allotment:

Cotton. 49

Peanuts - - 61

Pice - — 57

Wheat. 41

National average yield. See Yield.

National Industrial Recovery Act 2

National Marketing quota:

Cotton _ 48

Peanuts 61

Tobacco 28

Wheat.... - -.— 43

Naval stores conservation program 12,14

New farms:

Cotton 50-51

Peanuts - 64

Rice 68

Sugar.. 99

Tobacco 30-31

Wheat 42

Nonallotment farms, corn, wheat 37,45

Noncooperator, price support » 110

Normal production. See Production.

Normal supply^ See Supply.

Normal year's domestic consumption. See

Consumption.

Normal year's exports. See Exports.

Normal yields. .See Yield.

Notice, farm marketing quota and acreage

allotment, mailed to farmer prior to referendum 67-68

Nursery stock, appropriation authorized 3

Obligations, limitation of, for agricultural conservation -. 14

OfiBcers and employees, appointment and compensation. See Appointment of oflBcers

and employees.

Oil, crushing peanuts for 66-67

Parity, definition of (prior to Agricultural Act

of 1949) 20-21

Parity (Agricultural Act of 1949):

Cotton, standard grade for purposes of. . 21

DefinitionsAdjusted base price 19

Parity index.,.. 19-20

Pinality of determinations of prices and

indices - 20

Parity price—

Determination of_. 19

Wartime subsidy paymentsincluded _- 19

Hearings on revision 20

Minimum, for 6 years beginning Jan. 1,

196D,„. 20

References to, meaning of...... . 21

Parity payments... - 27

Payments:

Agricultural conservation program - £-14

Exceeding cotton acreage allotment 66

Assignment of . 12

Cropland owned by United States 11

Division of, between landlords, tenants and

sharecroppers 10

Finality of determinations 13,100

Naval stores conservation program 12

Parity.. 27

Producers displaced by war effort ._. 10

Small, increase in _ 10-11

Soil Conservation and Domestic Allotment

Act &-14

Sugar.... 97-100

TeU'thousand-dollar limitation .* 10

Peanuts:

Acreage allotments and marketing quotas—

Appeal of farm quota and allotment, see

also Review of farm marketing quota

and acreage allotment 67-69

County acreage allotments - 63

Definitions—

Actual production ,. 22

Carry-over 22

Market, marketed, for market - - 23

Page

Peanuts—Continued

Acreage allotments and marketing

q 01 us—Continued

Definitions—Continued

Marketing year 65

Normal supply 24

Normal yield, county and farm 25,26

Peanuts 66

Total supply 26

Excess acreage excluded from future allotment calculations 63

Exemption of farms harvesting one acre or

less— - ,66

Farm acreage allotmentsAdditional acreage for types in short

supply... 62

Apportionment of county allotment to

old farms 63-64

Apportionment of State allotment to old

farms .'--.. 63

Farms acquired by Government under

eminent domain powers 64

New farms 64

Reduction in, for violation 65-66

Release and reapportionment of farm

allotments 64

Farm marketing quotas—

Amoimt of farm quota.— 63

Marketing prior to beginning of marketing year subject to 65

Identification of marketings 65, 72

Legislative fiaidings— —.. 61

National acreage allotmentAmount of _ .- 61

Apportionment to the States 62

Conversion of national quota to 61

Minimum national acreage allotment 61

Reserve for new farms . 64

National marketing quota—

Amount - 61

Conversion to national acreage allotment — 61

Minimum national marketing quota 61

Proclamation of .- 61

Penalties, penaltyBuyer to pay 65

Buyer and producer jointly and severally liable for 65

Deposit of penalties 65,70

Failure to account for disposition of

peanuts 65

False identification , 65

Marketing in excess of farm quota, subject to , 65

Misuse of marketing card 65

Payment of penalty by producer 65

Percent excess method of collecting - 65

Rate of penalty 65

Refund of 65,70-71

No refunds based on peanuts used for

seed or home consumption 66

ProclamationsIncrease or termination of marketing

quotas _--.- 69-70

National marketing quota. 61

Results of referendum 62

ReferendumEffect of results 62

Eligible voters 61-62

Proclamation of results 62

When conducted 61

Regulations, issuance by Secretary 72

Release and reapportionment of farm acreage allotments 64

Reports and records ._ 71

Data confidential 71-72

Review of farm quota and allotment, see

also Review of farm marketing quota

and acreage allotment. _- 67-69

State acreage alloiment—

Apportionment to old farms 63

Apportionment to counties 63-64

Increa3e in, for types of peanuts in

short supply 62

War crops and service, credit for - 63
170 INDEX

Page

penalty, marketing!

Exemption pf crops marketed by experiment stations ,- —-,--- 71

Payment, collection, and refund of penalties,

see also Com, cotton, peanuts, rice, tobacco, wheat- — Î 70-71

Rate of penaltyCorn..-_. — 36,38

Cotton — —».- 55

Peanuts.-.- - 65

Rice , 59

Tobacco 33

Wheat - 44,47

Perishable agricultural commodity^ 113,156,159

Person, defined - - 21,89,106,162

Personnel:

Agricultural Adjustment Administration.. _ 75.

Commodity Credit Corporation 123-124

Federal Crop Insurance Corporation 81

International Wheat Agreement Act 161-162

Production and Marketing Administration- 74-75

Soil Conservation Service — 2

Sugar Act — 100-101

Photographic reproductions, mosaics, and

maps, furnishing of, to governmental

• agencies and others - 74

Policies and purposes:

Agricultural Adjustment Act of 1938 17

Commodity Credit Corporation Charter

Act -, 119

Federal Crop Insurance Act—-— . 79

Soil Conservation and Domestic Allotment

Act-.— —- 1,3,17

Practices, agricultural conservation program,

see also Appropriation Act, 1953 fiscal year. 5-11

Price support:

Amount, terms, and conditions 113

Commodity Credit CorporationAuthority to sell commodities 115

Disposition of commodities deteriorating

or spoiling- 117

Restrictions on sales 115

Sales policies. 115

Secretary to provide price support

"through,--. 113

Utilization of, in Section 32 programs 114

Conditional onMarketing quota, marketing agreement or

order program 112

Cottonseed _ 118

DefinitionsBasic agricultural commodity. 116

Carry-over, nonbasic agricultural commodity.— - 116

Cooperator - - 115

Marketing year — 117

Nonbasic agricultural commodity 116

Normal supply, nonbasic agricultural

commodity 116

Storable commodities , — 115

Supply percentage. 116

Terms defined in Agricultural Adjustment Act of 1938 117

Total supply, nonbasic agricultural commodity 116

Eligibility for price supportCompliance with allotments, goals, practices, quotas .— 113

Factors governing availability of price support- - 113

Finality of determinations 74,117

Level of price support—

Adjustments for grade, location, etc.. 114

Cotton, Middling seven-eighths inch,

standard grade — - - 21,114

Advance announcement of -.— 114,115

Basic agricultural commoditiesCorn, rice, and whçat...,.-.^. 109-111,113-114

Com outside commercial area 110

Cotton and peanuts ...— 109-111,113-114

Long staple cotton 109-111,113-114

Noncooperators —.—..—.- 110

Tobacco ..—.- 109-111,113-114

Fire-cured, dark air^cured, and Virginia sun-cured tobacco — 111

Defense Production Act 111

Page

Price support—Continued

Level of price support—Continued

Designated nonbasic agricultural commoditiesHoney 111-114

Milk (whole), butterfat, and products. 111^114

Potatoes (Irish) .... ,. 111-114

Tung nuts ._ 111-114

wool (including mohair).._..._„_... 111-114

Factors considered in determining 113

Increasing, after public hearing-:...._.. 113:-114

Nonrecourse loans .-.—-...-..-_..-.. 114

Other nonbasic agricultural commodities 112-114

Parity prices used in determining.-- 113

Potatoes (Irish), no price support unless

quotas in efîect.,.--.-.-. 112

Producer's liability for deficiencies, etc., 114

Reconcentrating and insuring cotton.—.. 73

Proclamations:

Imports 155

Marketing quotas—

Com - 35-36,39-40,60-70

Cotton 48-49,6&-70

Peanuts- 61-62,69-70

Rice 57,59,69-70

Tobacco- u..- .- 28,29,69-70

Wheat. ..— 41,43,46

Sugar -—^ 102

Producers, small, protection of - 7,99

Production and Marketing Administration:

Delegation of powers to. 13

Organization of. ^ .— 75

Production:

ActualCora - 21-22,36

Cotton -_ 22

Peanuts _ 22

Rice 22

Wlieat 36

NormalCorn 24

Cotton 24

Rice. 24

Wheat.-^ ..— 24

Proportionate shares, sugar 98

Pub. Law 660, 76th Cong. Reconcentration

of cotton by Commodity Credit Corporation 73

Pub. Law 393, 76th Cong. Diversion of fish

and fish products 159

Pub. Law 74, 77th Cong, Cora and wheat

quota and allotment amendments 36,44

Pub. Law 276, 78th Cong. Burley tobacco

minimum allotment of one acre.. 30

Pub. Law 412, 78th Cong. Sale of supplies,

etc., by Soil Conservation Service 3

Pub. Law 12, 79th Cong. War crop and

service credit ,..8,42,49,64,63

Pub. Law 897, 80th Cong. References to

parifp and prices in laws other than

Agficultiiral Adjustment Act of 1938- 21

Pub. Law 28, 81st Cong. Cotton acreages

and yields in 1949 excluded 52-53

Pub. Law 272, 81st Cong. Cotton, peanuts,

and wheat quota and acreage allotment .

amendments 21,42

Pub. Law 471, 81st Cong. No price support

on potatoes unless quotas in effect.. - 112

Pub. Law 50, 82d Cong. Action by the

President under Section 22 _ 156

Pub. Law 528, 82d Cong. Burley tobacco

' minimum allotment of seven-tenths acre,

etc.- .^ _ 80

Publication and review of farm marketing

quoti-- _ -_. 67-69

Purchase agreements. See Price support,

purchase orders for conservation materials and

services , 7

Purchases. See Price support.

Purchases, advance, of conservation materials

and services -....-. — 7

Purchasing power, ratio of farm and nonfarm.- 3

Quotas. See Import quotas. Marketing quotas, and Sugar Act of 1948.

Rate of conservation payments 9-10
INDEX 171

Page

Records, availability of Department 71-72,102

Becords and reportsAgricultural Adjustment Act of 1938 71

Agricultural conservation operations, report

to Congress — 12

Commodity Credit Corporation, annual

report 124

Federal Crop Insurance Corporation 85

International Wheat Agreement. - 160-161

Sugar Act of 1948 - 102

Referendum:

Commodities to which applicableCorn 35

Cotton , 48

Peanuts 61

Rice - —— 69

Tobacco 29

Wheat—- - -"- 46

Notice of farm quota and allotment mailed

prior to referendum.. 68

Refunds:

Marketing quota penalties 33,

37,45,55,59-60,65,70

Taxes on sugar 104

Regional research laboratories:

Establishment and maintenance 18

Report to Congress of activities 18-19

Regulations:

Acreage allotments and marketing quotas.- 70-72

Agricultural conservation 7,9

Committees, selection and functions 7

Commodity Credit Corporation ^ 120

Com. - 9,37,70-72

Cotton - 70-72

Crop insurance.- - 80,86

Debts, compromising, adjusting, or canceling - 162

International Wheat Agreement 160-161

Peanuts ..- 65,70-72

Rice - 70-72

Soil conservation...- 2

Sugar. 99,101,105

Tobacco 33-34,70-72

Wheat 9,45,70-72

Reports. See Records and reports.

Reserve supply level. See Supply.

Restrictions on land use. See Practices.

Review committee, appointment and compensation of members - _ 68

Review of farm marketing quota aUd acreage

allotment:

Application for review 68

Publication and notice of farm quota and

allotment -— - 67-68

Review by court of review committee determination - 68-69

Review of payments or grants only by Secretary 13

Rice:

Acreage allotments and marketing quotasAppeal of farm quota and allotment, see

also Review of farm marketing quota

and acreage allotment _ .— 67-69

County acreage allotmentsApportionment to old farms 58

DefinitionsActual production... _ 22

Carry-over 22

Market, marketed, for market— 23

Marketing year 24

Normal production 24

Normal supply - 24

Normal year's domestic consumption. .. 25

Normal year's exports 25

Normal yield 25

Total supply 26

ExemptionsFarms planting 3 acres or less to nonirrigated rice -- — 59

Rice produced outside continental

United States 59

Excess acreage excluded in future allotment calculations 59

Farm acreage allotmentsAllotments for new farms 58

Allotments for new producers 58

Established on basis of producer's rice

history 68

Page

Rice—Continued

Acreage allotments and marketing

quotas—Continued

Farm acreage allotments—Continued

Established on basis of rice history on

farm 58

National reserve for adjustments in, for

old and new farms 57-58

Farm marketing excessAdjustment in amount of. 69-60

Deianition of 59

Disposition of rice delivered to Department— 60

Producer subject to penalty on 69

Reduction of stored amount by underplanting or producing sub-normal

crop - 60

Regarded as available for marketing 59

Regulations governing delivery or storage 60

Representative grades to be stored unless

otherwise provided 60

Substitution of rice In storage - 60

Farm marketing quotasAmount of farm quota 59

Increase or termination 69-70

Identiñcation of marketings 72

Legislative findings — i— 66-57

Marketing quotasConditionsrequiring proclamation of— 59

When proclaimed-- 69

Measurement of farms —— 72

National acreage allotmentAmount of 67

Apportionment among States..—..-—— 67

Reserve acreage for old and new farms..- 57-58

When proclaimed - 67

Penalties, penaltyDepletion of stored excess rice. 60

Exemption of rice marketed by experiment stations — 71

Interest on uni)aid penalty 60

Lien for, on entire crop - 60

Marketings subject to, until excess

stored or delivered 60

Producer subject to penalty 59

Rate of penalty 69

Refund of 69-60,70

When due 60

Proclamations 57,59,69-70

Referendum—

Effects of results 59

Eligible voters. - 69

Proclamation of results „ 59

When conducted 59

Regulations, issuance by Secretary 60.71

Reports and lecords 72

Data confidential 71-72

Review of farm quota and allotment, see

also Review of farm marketing quota

and acreage allotment 67-69

State acreage allotmentsApportionment to farms ofold producers. 58

Apportionment to old farms — 68

Establishment and adjustment of

county allotments.— 58-59

Reseives for new farms and new producers - 67-58

Secretary of Agriculture, defined 21,90

Secretary of Commerce, promotion of sale of

farm commodities by..— 19

Section 32 of Pub. Law 320, 74th Cong., see

also Appropriations —— 168-169

Advance paym.ents to Commodity Credit

Corporation ...- 114

Availability of funds 158-159

Distribution of fish products 159

Domestic consumption, encouragement of.. 158

Exportation, encouragement of — 168

Finality of Secretary's determinations. 168

Limitation on funds for a commodity 168-159

Purchasing power, reestabMshment of

farmers' —— 168

Utilization of Commodity Credit Corporation —. 114

Section 22 of the Agricultural Adjustment

Act (of 1933) - 166-168

Senate of the United States, Committee on

Finance 160-158
172 INDEX

Page

Separability of provisions:

ARricultural Adjustment Act of 1938 « 76

Federal Crop Insurance Act » 86

Settlement of indebtedness 162-163

Sharecroppers. See Landlords, tenants, or

sharecroppers.

Small farms and. small producers _ 7,

29-31,36-57,45-46,00-51,66,99

Small payments, increase of - 10-11

Soil-building practices. See Practices.

Soil Conservation and Domestic Allotment

Act 1-14

Acreage allotments and normal yields 7-9

Appropriations for fiscal years 1947-1953,

see also Appropriation Act, 1953 fiscal

year 129,132,135,138,141,144,147

Availability of funds 12

Conservation materials and services 7

Naval Stores Conservation program .. 12

Payments or grants of aid 5-14

Policies and purposes ——*——. 1,3

Scope of Act. — 14

State plans ...—.. 4-5

Soil Conservation Service:

Establishment, powers and duties.., 2

Authority to sell supplies, materials, and

equipment to other Government activities...- - -— * 3

Soil-depleting practices. ÄecPractices.

Special deposit account 70

Peanuts „ 66

Tobacco - 33-34

State, defined - 14,21

State committee 6-7

State plans - ^ - 4-5

Statistics, latest available to be used— - 27

Statistics, use of ofllcial 91

Storage amount:

Corn........... .— ——~ 36-38

Eice 59-60

Wheat - 44-46

Strategic and Critical Materials Stock Piling

j^Q^ __ ^ . . 121

Sugar Act of 1948': ' '

Appropriation authorization 101

Appropriations for fiscal years 1947-1953.

See Appropriations.

Civil penaltiesfor violation ofAct.... 102

Definitions—

Direct-consumption sugar — 89

Including, include — 90

Liquid sugar.. — 89

Manufactured sugar - 106

Manufacturer— — 104

Person... 89,106

Producer - 90

Quota 90

Kaw sugar 89

Raw value. — - ^0

Secretary - 90

Sugar — 89

Sugars - °y

Total sugar content - 90

• Total sugars - 106

United States - - 106

District attorneys of United States to

enforce - - 101

Effective date of Act.. v. 103

Expenditures by Secretary 100-101

Finality of determinations — 100

Fines and forfeitures 102

Information to be furnished Secretary 102

Investments and business interests by officials prohibited 102

Jurisdiction of courts •_ 94-95,101

National economic or other emergency,existence of, as basis for suspending quotas. „ 102

PaymentsAbandonment of planted acreage, as basis

for..... - 99

Adherent planters. - — 99

Application for. 100

Appropriation authorization for... - 101

Areas in which payment provisions applicable 100

Base rate of payment 99

Calculation of 100

Page

Sugar Act of 1948—Continued

Payments—Continued

Compliance with provisions relating to—

Chüd labor .....—...-.. 97-98

Proportionate share for farm.-.».^.-.—. 98-99

Wages and wage rates 98

Conditions in respect to ^ ..._ 97-100

Crop deficiencies of harvested acreage, as

basis for — 99

Death, disappearance or incompetency... 100

Designation of payee by producers—, 100

Establishment of proportionate shares for

farms - 98-99

Farm, to be defined by Secretary 99

Finality of determination with respect to. 100

New and small producers 99

Tenants and sharecroppers.. 99

Utilization of local committees and Other

agencies 100

Proportionate shares . 98-99

Quotas:

Allotments of quotas or prorations—

Appeal of allotment 94-95

Basis for allotments 93

Hearings 93

Area quotasCuba - ., 92

Domestic beet sugar .- 91

Mainland cane sugar - - 91

Hawaii. 91

Other foreign countries ^ 92

Puerto Rico — 91

Republic of-Philippines 91,92

Virgin Islands 91

Consumption estimates, determination of,

for—

Continental United States. - 91

Hawaii and Puerto Rico 92

Deficits, proration of quota , 92-93

Entry of Virgin Islands duty-lree sugar... 97

Exemptions from quota provisions 97

Exportation of sugar from United StatesCredit to country of origin 96-97

Entry of sugar under bond 96-97

Expressed in terms of raw value _ 96

Filling quotas with direct-consumption

sugarCuba 95

Hawaii 95

Other foreign countries 95

Puerto Rico ., 96

Republic of the Philippines 95

Virgin Islands - 95

Suspension of direct-consumption portions of quotas ._,_. 95

Liquid sugar, inclusion in determinations. 96

Liquid sugar quotas—

Cuba .-— 96

Dominican Republic — 96

British West Indies 96

Local consumption quotas for Hawaii and

Puerto Rico.— 92

Prohibited acts 96

Secretary to establish or revise existing

quotas ... - - 91

Regulations, determinations and orders,

issuance by Secretary — 101

Publication in Federal Register.-.. 101

Surveys and investigations 102-103

Information on individual operations

confidential 103

Suspension of quotas 102

Taxes, excise (provi::ions of Internal Revenue

Code)—

Applicability of other laws — 105

Collection 104

Definitions —— - 106

Distillation 105

Effective date of law — 105

Exemption - « 103

Exportation 104

Filing of return and payment of tax. 104

Import compensating tax .— 105-106

Interest added for nonpayment 105

Investments and business interests by

ofiScials prohibited ....—— 106

Livestock feed . ................... 105
INDEX 173

Page

Sugar Act of 1948—Continued

Taxes, excise (provisions of Internal Revenue Code)—Continued

Manufactured sugar — 103

Filing return and payment 104

Personal consumption 103-104

Manufacturers... 104

Payment; district where payable 104

Rate, manufactured sugar.— 103

Refunds 104

Rules and regulations as to collection . 105

Termination of Sugar Act - 103

Supply:

NormalCorn, cotton, peanuts, rice, tobacco,

wheat - - 24

Nonbasic commodity - 116

Reserve level, com and tobacco . 26

TotalCorn, peanuts, rice, wheat - 26

Cotton — 27

Nonbasic commodity - 116

Tobacco _ 26-27

Surveys and investigations 1,12,19,81.102-103

Suspension of quotas. See Termination of

quotas.

Tariff Act of 1930 —„ 96,156

Tariff Commission, United States 155-158

Taxation. See Federal Crop Insurance Act

and Sugar Act of 1948.

Tenants. See Landlords, tenants, or sharecroppers.

Ten-thousand-dollar limitation on payments.. 11

Termination or suspension of quotas— 27,

36,39, 45,47, 69-70,95,102

Territorial application of acts:

Soil Conservation and Domestic Allotment

Act.._ - 14

Sugar Act of 1948 „ 100

Tobacco:

Acreage allotments and marketing quotasAppeal relating to farm quota and allotment, sec dl8o Review of farm marketing quota and acreage allotment 67-69

DefinitionsCarry-over .— 22

Market, marketed, for market

Marketing year — 23-24

Normal supply 24

Normal year's domestic consumption—. 24-25

Normal year's exports 25

Parity 20-21

Reserve supply level -^ - 26

Tobacco 26

Total supply 26-27

Diverted acreage 2&-31

Farm acreage allotmentsApportionment of State allotment to old

farms _ _ 31

Farms acquired for national-defense purposes - 32

Increases in, for small farms 30-31

Increases in, for types in short supply.. 32-33

Minimum, for Burley farms 29-30

New farms 31

Notice of farm acreage allotment _— 67-68

Reduction in, for violation 31-32

Farm marketing quotasAmount of farm quota when farm allotments established 31

Apportionment of State quota to old

tobacco farms 30

Increase in, for small farms 30

Increase in, for types in short supply... 32-33

Increase or termination 69-70

New farms ^ 30-31

Notice of farm marketing quota 67-68

Transfer of 31

Identification of marketings 31,33,72

Legislative finding 27-^28

National marketing quotaAmount of 28-29

Apportionment to States 29

Increase in, under specified conditions.. 29

Reserve for new and small farms 30

When proclaimed —.—« 29

Page

Tobacco—Continued

Acreage allotments a.nd marketing

quotas—Continued

Penalties, penaltyCarry-over tobacco .--.-.-. 33

Deposit of penalties 33-34, 70

Disposing of excess tobacco to avoid 33

Exemption of tobacco marketed by experiment stations.- ^_--_._ 71

Failure to account for disposition of

tobacco 33

False identification ___. 33

Marketings outside United States 33

Marketings prior to beginning ofmarketing year _ 33

Marketings subject to penalty. 33

Misuse of marketing card 33

Payment of, by buyer, warehouseman,

agent 33

Rate of penalty 33

Refund of penalty 33,70

Proclamations. 28, 29, 69-70

ReferendumEffect of results 29

Eligible voters. _.._ 29

Notice of farm quota and allotment

mailed prior to referendum 67-68

Proclamation of results 29

When conducted.... 29

Regulations, issuance by Secretary 72

Reports and records 71

Data confidential... ^^_.. 71-72

Review of farm quota and allotment, see

also Review of farm marketing quota

and acreage allotment 67-69

State acreage allotment—

Apportionment to old farms 31

Conversion of State quota to 31

State marketing quotaApportionment to old farms. 30

Conversion of, to State acreage allotment 31

Minimum, for ñue-cured tobacco 31

Reserve for new and small farms. 30-31

State poundage allotment ._.. 31

Legislative finding 27

Loans. See Price support.

Parity payments - 27

Total supply. See Supply.

Transfer of quotas:

Tobacco 31

Wheat 47

United States, defijiition of 21

Utilization of State and local agencies 4,

6-7,12,74r-76,81-82,100,124

Vendors of conservation materials and services - 7

Voluntary action by producers for land con-

* servation 3

Wage rates, sugar 98

War crops and service, effect on acreage allotments 8,42-43,49,64,63

Water conservation ._- 6

Wheat:

Acreage allotments and marketing quotasAcreage allotments under Soil Conservation and Domestic Allotment Act 7-8

Appeal relatmg to farm quota and allotment, see also Review of farm marketing quota and acreage allotment 67-69

County acreage allotmentsApportionment to old farms. 42

Reserve for new farms 42

DefibQitions—

Actual production 44

Carry-over 22

Farm marketing excess 44

Market, marketed, for market 23

Marketing year... 23-24

National average yield - 24

Normal production . - 24

Normal supply. - 24

Normal year's domestic consumption— 24

Normal year's exports 25

Normal yield, county and farm 8-9,25-26

Total supply 26
174 INDEX

Page

W heat—Continued

Acreage allotments and marketing

quotas—Continued

Farm acreage allotments—

Apportionment of county allotment to

old farms ----- 42

Farms acquired for national defense

purposes *.,.- _— 43

Newfarms 42

Notice of farm acreage allotment — 67-68

Farm marketing excess—

Adjustment in amount of 44-46

Application for adjustment of stored

amount . 44-45

Christmas amendment 46

Definition of ^ .— 44

Disposition of wheat delivered to Secretary 46

Failure to deliver or store 45

Nonallotment farms .__ 45-46

Producer subject to penalty on 44

Réduction of stored amount by underplanting or producing subnormal

crop >._-^ w — 45

Begarded as available for marketing..... 44

Regulations governing delivery or

storage . .—. 46

Farm marketing quotasAmount of farm quota . ,.. 44

Effect of termination 39,45

Exemption of farms producing less than

¿OObushels 46

Exemption of farms planting 15 acres or

less 45

Increase or termination 47,69-70

Notice of farm marketing quota 67-68

Transfer of quotas 47

Identification of marketings , 72

Legislative findings— 40

Measurement of farms — 72

National acreage allotmentAmount of 41

Apportionment to States 41-42

Minimum, for any year 41

National marketing quotaAmount of 43-44

Conditionsrequiring proclamation of 43

Increase or termination.. 47,69-70

When proclaimed-.* ,. 43

Page

Wheat—Continued

Acreage allotments and marketing

quotas—Continued

Penalties, penaltyApplication for adjustment of. .^... 44-45

Buyer to collect and pay 46,70

Depletion of stored excess wheat.... 45

Exemption of nonallotment farms:..,..., 45

Exeniption of wheat marketed by experimentstations 71

Lien for, on entire crop...... 45

Marketings subject to, until excess

stored or delivered 46

Nonallotment farms 45

Payment of, upon failure to deliver or

store excess wheat 45

Producer subject to penalty........ 44

Rate of penalty , 44

Refund of penalty. 44-45,70

When due i.. 44-46

ProclamationsNational acreage allotment 41

National marketing quota 43

Normal supply and total supply 41

Referendum results .. 46

ReferendumEffect of results . . 46

Eligible voters -.-... 46

Notice of farm quota and allotment

mailed prior to 67-68

Proclamation of results 46

When conducted 46

Regulations, issuance by Secretary... 72

Reports and records -^.. »*— ... 71

Data confidential 71-72

Review of farm quota and allotment, see

also Review of farm marketing quota

and acreage allotment.. 67-69

State acreage allotments ..... 41-42

Apportionment to counties ... 42

War crops and service, credit for 42-43

Loans. See Price support.

Parity payments.. . ^..—.......... 27

Yield:

National average, cotton and wheat ... 24

NormalCorn 8-9,25-26

Cotton.... 25-26

Peanuts 25-26

Rice - - 25

Wheat 8-9,25-26

». S. eoVERVHENT FRIMTIH« OFFlCEt <»S|