IXüíf^/\l

COMMODITY STABILIZATION SERVICE

UNITED STATES DEPARTMENT OF AGRICULTURE

COMPILATION

OF

STATUTES RELATING

TO

Soil Conservation, Marketing Quotas and Allotments,

Soil Bank, Crop Insurance, Sugar Payments and

Quotas, Price Support, Commodity Credit Corporation,

and Related Statutes

AS OF JANUARY 1, 1957

euR'r-;^ si; '^0

^ FEB6-1357 ^.

Ü. 8. l;l.rAUÏ:vSEfiï OF <kU!^!CULTllf(£

COMPILED UNDER THE DIRECTION

OF THE GENERAL COUNSEL

AGRICULTURE HANDBOOK NO. 113
COMMODITY STABILIZATION SERVICE

UNITED STATES DEPARTMENT OF AGRICULTURE

COMPILATION

OF

STATUTES RELATING

TO

Soil Conservation, Marketing Quotas and Allotments,

Soil Bank, Crop Insurance, Sugar Payments and

Quotas, Price Support, Commodity Credit Corporation,

and Related Statutes

AS OF JANUARY 1, 1957

COMPILED UNDER THE DIRECTION

OF THE GENERAL COUNSEL

AGRICULTURE HANDBOOK NO- 113

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

Washington 25, D. G. - Price 70 cent«
Prefatory Nptè

This is a compilation of the provisions of the several acts in effect

on January 1,1957. Complete citations to the United States Statutes

at Large and detailed explanation of amendments to certain provisions

have been omitted. Certain provisions of law which were applicable

to prior years or crops, but have not been repealed by the Congress,

have been omitted from this compilation. Part VII of the compilation,

containing apropriation items for the fiscal years 1956 and 1957,

supplements the appropriation items for the fiscal years 1937 to 1953,

inclusive, appearing in compilation^i issued as of July 1, 1945, and

January 1, 1953^

Citations to the United States Code at the end of sections and

subsections are to the 1952 edition of the Code and Supplement III

thereto.

The statutes contained in this compilation are subject to the provisions of Reorganization Plan ISTo. 2 of 1953 (18 F. R. 3219, 67 Stat.

633, 5 U. S. C. 133Z-15,1952 Ed. Supp. Ill), prepared by the President and transmitted to the Senate and House of Eepresentatives on

March 25,1953, pursuant to the provisions of the Eeorganization Act

of 1949 (5 U. S. C. 133z to 133z-5). The plan transfers to the Secretary of Agriculture all functions not then vested in him of all other

officers and of all agencies and employees of the Department of Agriculture, except functions vested by thé Administrative Procedure Act

in hearing examiners employed by the Department and functions of

the corporations of the Department, the Boards of Directors and

officers of such corporations, the Advisory Board of the Commodity

Credit Corporation and the Farm Credit Administration.

NOTE.—This Handbook is a revision of and supersedes Agriculture Handbook

No. 79, entitled "CompUation of Statutes Relating to Soil Conservation, Marketing Quotas and Allotments, Crop Insurance, Sugar Payments and Quotas, Price

Support, Commodity Credit Corporation, and Related Statutes as of January 1,

1955."
CONTENTS

PART I. SOIL CONSERVATION AND DOMESTIC

ALLOTMENT ACT, AS AMENDED

Page

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 non-Government-controlled lands --— 2

Section 4. Cooperation of governmental agencies, personnel, and supplies- 2

Section 5. Establishment of "Soil Conservation Service"_ .-- 2

Section 6. Appropriation authorized 3

Public Law 412, 78th Congress. Sec. 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 690, 83d Congress. Sec. 503. No limitation upon the number

of terms of members of county committees^ — ^- 8

Public Law 12, 79th Congress. Effect of production of war crops, or

military service, on allotments ^-- 9

Naval stores conservation program — -^—_— 13

Section 9. Surveys, investigations, and reports -- 13

Section 10. **Agricultural commodity" defined 13

Section 11. Availability of funds.- . 13

Section 12. Expansion of markets and crop insurance advance 14

Section 13. Execution of powers of Secretary by Production and Marketing Administration 14

Section 14. Finality of payments..-. 15

Section 15. Appropriation authorization and allocating of funds. ... 15

Section 16. Limitation on obligations incurred -— 16

Section 17. Scope of Act and definition of "State" 18

PART II. AGRICULTURAL ADJUSTMENT ACT

OF 1938, AS AMENDED

Section 1. Short title-..—-- _.. .. 20

Section 2. Declaration of policy.--. .- 20

TITLE II. ADJUSTMENTS IN FREIGHT RATES, NEW USES

AND MARKETS, AND DISPOSITION OF SURPLUSES

Section 201. Adjustments in freight rates for farm products. 20

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

research laboratories) 21

TITLE III. LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES

SUBTITLE A. DEFINITIONS, PARITY PAYMENTS, AND

CONSUMER SAFEGUARDS

Section 301. Definitions - -.-— \. -- 22

Agricultural Marketing Agreement Act of 1937. Sees. 2 and 8e. — 24

Public Law 897, 80th Congress. Parity and parity prices-,---_. 25

m
IV CONTENTS

PART II. AGKICULTURAL ADJUSTMENT ACT OF 1938, AS

AMENDED—Continued

TITLE III. LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES—Continued

SUBTITLE A. DEFINITIONS, PARITY PAYMENTS, AND

CONSUMER SAFEGUARDS—Continued

Page

Public Law 272, 81st Congress. Standard grade of cotton for parity price

purposes^— -_«-. _. 25

Section 302. (Repealed) --_->—-_ 31

Section 303. Parity payments. 31

Section 304. Consumer safeguards -___ 32

SUBTITLE B. MARKETING QUOTAS

PABT I. MARKETING QUOTAS—TOBACCO

Section 311. Legislative finding, tobacco. ^ - ^-- 32

Section 312. National tobacco marketing quota and referendum 33

Section 313. Apportionment of tobacco marketing quota and acreage

allotments : _. - 35

Public Law 276, 78th Congress. Minimum farm acreage allotment, Burley

tobacco 35

Section 314. Penalties, tobacco. 40

Public Law 528, 82d Congress. Minimum farm acreage allotment, Burley

tobacco - 35

PART II. ACREAGE ALLOTMENTS—CORN

Section 321. Legislative finding, corn - 41

Section 326. Adjustment of farm marketing quotas, corn 42

Section 327. Proclamations of commercial corn-producing area 43

Section 328. Acreage allotment, corn«____«^ 43

Section 329. Apportionment of acreage allotment, corn __»— 43

PART III. MARKETING QUOTAS—WHEAT

Section 331. Legislative findings, wheat 44

Section 332. Proclamations of supplies and allotments, wheat 45

Section 333. National acreage allotment, wheat _-—^--- 45

Public Law 117, 83d Congress. Sec. 4. Minimum acreage of wheat for 1954

and last date for holding 1954 referendum 45

Section 334. Apportionment of national acreage allotment, wheat ___ 45

Public Law 12, 79th Congress. Effect of production of war crops, or

military service, on allotments -— 46

Public Law 690, 83d Congress. Summer fallow crop rotation „>-...- 48

Section 335. Marketing quotas, wheat 49

Public Law 74, 77th Congress. Marketing quotas and farm marketing

excess, wheat 50

Section 336. Referendum, wheat 52

Section 337. Adjustment and suspension of quotas, wheat—_.. _ 52

Section 338. Transfer of quotas, wheat -— 53

Section 339. Penalties, wheat (repealed) _ 53

PART IV. MARKETING QUOTAS—COTTON

Section 341. Legislative findings, cotton __. 53

Section 342. National marketing quota, cotton --- 54

Section 343. Referendum, cotton__; 55

Section 344. Apportionment of national acreage allotment to States and

counties, and establishment of farm allotments, cotton <_^_^_-- 55
CONTENTS V

PART II. AGRICULTURAL ADJUSTMENT ACT OF 1938, AS

AMENDED—Continued

TITLE III. LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES—Continued

SUBTITLE B. MARKETING QUOTAS—continued

PART IV. MARKETING QUOTAS—COTTON—Continued Page

Public Law 540, 84th Congress (70 Stat. 188). For 1956 crop apportionment of allotment to small farms—.^ _- 59

Public Law 28, 81st Congress. Cotton acreages and yields in 1949 excluded

from future allotment and yield computations - - 59

Section 345. Farm marketing quotas and farm marketing excess, cotton» _ . 63

Section 346. Penalties, cotton ^Q

Sektion 347. Long-staple cotton «3

Section 348. Repealed. _ ^^

PART V. MARKETING QUOTAS—RICE

Section 351. Legislative finding, rice_ 64

Section 352. National acreage allotment, rice 65

Section 353. Apportionment of national acreage allotment, rice 65

Section 354. Proclamation of rice marketing quotas and conducting

referendum ^^

Section 355. Farm marketing quota and farm marketing excess, rice 69

Section 356. Penalties and storage, rice 69

PART VI. MARKETING QUOTAS—PEANUTS

Section 357. Legislative findings, peanuts» -. 70

Section 358. Proclamation of national quota, conducting referendum, and

establishing acreage allotments, peanuts _ _ 71

Section 359. Marketing penalties, peanuts 74

SUBTITLE C. ADMINISTRATIVE PROVISIONS

PART I. PUBLICATION AND REVIEW OF QUOTAS

Section 361. Application of provisions for publication and review of quotas. 77

Section 362. Publication and notice of quota 77

Section 363. Review by review committee..- 77

Section 364. Review committee 78

Section 365. Institution of proceedings 78

Section 366. Court review 78

Section 367. Stay of proceedings and exclusive jurisdiction 79

Section 368. Effect of increase on other quotas _-_^- 79

PART II. ADJUSTMENT OF QUOTAS AND ENFORCEMENT

Section 371. General adjustment of quotas 79

Section 372. Payment, collection and refund of penalties 80

Section 373. Reports and records 80

Section 374. Measurement of farms and report of plantings 81

Section 375. Regulations 82

Section 376. Court jurisdiction 82

Section 377. Preservation of unused acreage allotments 82

SUBTITLE D. RICE CERTIFICATES

Section 380a. Legislative findings _ 82

Section 380b. Effective date and termination 83

Section 380c. Rice primary market quota 83
VI CONTENTS

PART IL AGRICin.TUEAL dlDJüSTMENT AOr OF 1938, AS

AMENDED—Continued

TITLE III. LOANS, PARITY PAYMENTS^ CONSUMER SAFETGUARDS, MARKETING QUOTA$, AND MARKETING CERTIFICATES—Continued

SUBTITLE D. RICE CERTIFICATE—Continued

Page

Section 380d. Apportionment of primary market quota 83

Section 380e. Review of primary market quota- « 83

Section 380f. Price support. > ~ 84

Section 380g. Certificates ___. -->>^-____-_> 84

Section 380h. Inventory adjustment payments 84

Section 380i. Rice set-aside > — -«_>-.__--_.:. 85

Section 380j. Exemptions ^^ 85

Section 380k. Processing restrictions -»^..IIII 85

Section 3801. Import restrictions _____>>> ._ 85

Section 380m. Regulations III 86

Section 380n. Civil penalties H 86

Section 380o. Reports and records 86

Section 380p. Definitions I i_-__> 86

SUBTITLE E. MISCELLANEOUS PROVISIONS AND APPROPRIATIONS

PART I. MISCELLANEOUS

Section 383. Insurance of cotton and reconcentration of cotton^__>___.__ 87

Public Law 660, 75th Congress. Reconcentration of cotton 87

Section 384. Report of benefit payments (repealed) . 88

Section 385. Finality of farmers' payments and loans .____^ 88

Section 386. Exemption from laws prohibiting interest of members of

Congress in contracts ^ 88

Section 387. Photographic reproductions and maps ._ 88

Section 388. Utilization of local agencies 88

Section 389. Personnel .-___ 89

Section 390. Separability 89

PART II. APPROPRIATIONS AND ADMINISTRATIVE EXPENSES

Section 391. Authorization for appropriations and advances for crop

insurance .__ 90

Section 392. Administrative expenses ^_. 90

Section 393. Allotment of appropriations ^ _____ 91

PART III. SOIL BANK ACT

Section 101. Short title. 93

Section 102. Declaration of policy 93

SUBTITLE A. ACREAGE RESERVE PROGRAM

Section 103. Terms and conditions _,.___ 94

Section 104. Extent of participation in program 95

Section 105. Compensation of producers ^ ^__ 95

Section 106. Effect on acreage allotments and quotas__^ ... 96
CONTENTS VII

PART III. SOIL BANK ACT—Continued

Section 107.

Section 108.

Section 109.

Section 110.

Section 111.

Section 112.

Section 113.

Section 114.

Section 115.

Section 116.

Section 117.

Section 118.

Section 119.

Section 120.

Section 121.

Section 122.

Section 123.

Section 124.

Section 125.

Section 126.

SUBTITLE B. CONSERVATION RESERVE PROGRAM

Page

Terms and conditions 97

Conservation reserve goal_ ^ 99

Authorized period of contracts and expenditures 100

Termination and modification of contracts 100

Conservation materials and services 100

Effect on other programs 101

Geographical applicability - 101

SUBTITLE C. GENERAL PROVISIONS

Compliance with acreage allotments ^-- 101

Reapportionment prohibited 102

Certificate of claimant « 102

utilization of local and State committees^ 102

Utilization of other agencies,- 102

Utilization of land use capability data_._ 102

Financing ^ ... 103

Finalitjr of determinations^ - 103

Protection of tenants and sharecroppers 103

Penalty for grazing or harvesting ; 104

Regulations >._ -. 104

Production on government lands prohibited „ 104

Pooling of conservation reserve land ^^^ 104

PART IV. FEDERAL CROP INSURANCE ACT, AS AMENDED

Section 501. Short title 106

Section 502. Declaration of purpose 106

Section 503. Creation of "Federal Crop Insurance Corporation"... __. 106

Section 504. Capital stock __. 106

Section 505. Management of Corporation „____^ 106

Section 506. General powers ^ 107

Section 507. Personnel 108

Section 508. Crop insurance. .. . 109

Section 509. Indemnities exempt from levy 111

Section 510. Deposit of funds . . 111

Section 511. Tax exemption __. 112

Section 512. Fiscal agent of Government 112

Section 513. Accounting by Corporation 112

Section 514. Crimes and offenses . 112

Section 515. Advisory committee 112

Section 516. Appropriations and regulations 113

Section 517. Separability 113

Section 518. ''Agricultural commodity" defined. : 113

Section 519. Right to amend 113

Criminal provisions applicable to Federal Crop Insurance Corporation 113

PART V. SUGAR ACT OF 1948, AS AMENDED

Section 1. Short title . 117

Section 101. Definitions 117

Section 201. Annual estimate of consumption in continental United

States.^ _>_. _. 119

Section 202, Proration of quotas 119

Section 203. Consumption estimates and quotas for Hawaii and Puerto

Rico _ _ 122

Section 204. Proration of quota deficits 122

Section 205. Allotments of quotas or prorations ... 123

Section 206. Quotas for the calendar year 1948 125

Section 207. Amount of quota to be filled by direct-consumption sugar.. 125
vni CONTENTS

PART V. SUGAR ACT OF 1948, AS AMENDED—Continued

Section 208. Ifiquid sugar quotas 126

Section 209. Prohibited acts _. I.IIIIIII 126

Section 210. Determinations in terms of raw value íí^íl'' 127

Section 211. Exportation of sugar.^ -----I-IIIIIII 127

Section 212. Inapplicability of quota provisions _ IIIIII 127

Section 301. Conditions for payments to producers I 128

Section 302. Establishment of proportionate shares for farms. _ 111111111 129

Section 303. Acreage abandonment and crop deficiency payments I 130

Section 304. Computation of payments and persons eligible for payments.I 130

Section 305. Use of local committees and other agencies 131

Section 306. Finality of determinations.«_ Ill 131

Section 307. Areas in which payments may be made III 131

Section 401. Personnel and expenditures . I.IIIII 132

Section 402. Authorized annual appropriation III 132

Section 403. Secretary to issue regulations and determinations-....LUI 132

Section 404. Jurisdiction of courts to enforce Act __ 132

Section 405. Penalties 133

Section 406. Obtaining of information by Secretary I_ 133

Section 407. Prohibition against speculation by members of department. 133

Section 408, Suspension of quotas or payments ^___ 133

Section 409. Surveys, and investigations, and hearings 134

Section 410. Surveys and investigations, generally. 134

Section 411. Secretary authorized to issue regulations 134

Section 412. Termination of Act. . 134

Section 413. Effective date of Act 134

INTERNAL REVENUE CODE-^-CHAPTER 37—SUGAR

Section 4501. Imposition of tax 135

Section 4502. Definitions 136

Section 4503. Exemptions for sugar manufactured for home consumption. 136

Section 4504. Import tax imposed as tariff duty 137

Section 6412. Floor stocks refunds . . 137

Section 6418. Livestock feed, distillation of alcohol, and exportation refunds 137

Section 6511. Limitations on credit or refund 138

Section 7240. Penalty for oflScials investing or speculating in sugar 138

PART VI. PRICE SUPPORT, EXPORT, AND SURPLUS

REMOVAL

SUBPART A. LEGAL HISTORY AND CHARTER OF COMMODITY CREDIT

CORPORATION

Legal history of Commodity Credit Corporation 139

Commodity Credit Corporation Charter Act 141

Section 1. Short title _ 141

Section 2. Creation and purposes ^ 141

Section 3. Offices 141

Section 4. General powers 141

Section 5. Specific powers 144

Section 6. Existing statutes applicable to the Corporation 145

Section 7. Capital stock 145

Section 8. Use of funds by Corporation.___« 145

Section 9. Board of directors and advisory board 145

Section 10. Personnel of Corporation--.« . 146

Section 11. Cooperation with other Governmental agencies 146

Section 12. Utilization of associations and trade facilities 147

Section 13. Records, annual report. ._ 147

Section 14. Interest of Members of Congress 147

Section 15. Crimes and offenses 147

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

Delaware Corporation 148

Section 17. Dissolution of Delaware Corporation_. 149

Section 18. Effective date of Act 149

Section 19. Release of Innocent Purchasers of Converted Goods 149
CONTENTS IX

Part VI. PRICE SUPPORT, EXPORT, AND SURPLUS

REMOVAL—Continued

SUBPART B. PRICE SUPPORT

Page

Agricultural Act of 1949, as amended 151

Section 1. Short title 151

TITLE I. BASIC AGRICULTURAL COMMODITIES

Section 101. Price support for basic agricultural commodities. _^ 151

Act of July 28, 1945. Sec. 2. Level of price support for fire-cured,

dark air-cured, and Virginia sun-cured tobacco 153

Agricultural Act of 1956. Sec. 308. Acreage requirements for price

support on corn and other feed grains 154

TITLE II. DESIGNATED NONBASIC AGRICULTURAL COMMODITIES

Section 201. Price support for designated nonbasic agricultural commodities 155

Section 202. Increasing the utilization of dairy products 155

Agricultural Act of 1954. Sec. 204. Milk and dairy products 156

Section 203. Price support for cottonseed and soybeans _- 157

TITLE III—OTHER NONBASIC AGRICULTURAL COMMODITIES

Section 301. Price support for other nonbasic agricultural commodities . 157

Section 302. Levels of price support, other nonbasic agricultural commodities 157

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

nonbasic agricultural commodity « 158

TITLE IV. MISCELLANEOUS

Section 401. Factors to be considered in supporting prices, compliance

by producers, and date to be used in determining level of price

support-- 158

Section 402. Price support at increased level 159

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

factors . 159

Act of August 29, 1949. Sec. 3 (a). Standard grade for cotton---- 159

Section 404. Utilization of services and facilities of Commodity Credit

Corporation in section 32 and school lunch programs - 159

Section 405. Nonrecourse loans 160

Section 406. Advance announcement of price-support level 160

Section 407. Restrictions on sales by Commodity Credit Corporation- 160

Act of April 6^ 1949. Sec. 2. Furnishing feed and seed in major

disasters 161

Act of September 30, 1950. Providing assistance in major disasters.- 162

Section 408. Definitions -- 163

Section 412. Determinations by the Secretary 165

Section 413. When price support provisions effective 165

Section 414. Repeal of section 302 of Agricultural Adjustment Act of

1938 1 „. 165

Section 416. Disposition of commodities to prevent waste 165

Section 417. Loans to construct storage structures 166

Section 420. Price support for cottonseed 167
X CONTENTS

Part VI. PRICE SUPPORT, EXPORT, AND SURPLUS

REMOVAL—Continued

SUBPART B. PRICE SUPPORT—Continued

Page

Agricultural Act of 1954 ., ______.;__ 168

TITLE I. SET ASIDE OP AGRICULTURAL COMMODITIES

Section 101. Commodity set-aside 168

Section 102. Maximum value of set-aside _____»_-____ 168

Section 103. Disposition of set-aside .. 168

Section 104. Rotation of stocks ; ^_______-__ 169

Section 105. Exclusion of set-aside from carry-over. .- — 169

Section 106. Records and accounts. ; 170

Section 107. Payment for commodities transferred to stockpile 170

TITLE VI. AGRICULTURAL ATTACHÉS

Section 601. Acquiring information regarding competition and demand for agricultural products -_ 170

TITLE VII. NATIONAL WOOL ACT OF 1954

Section 701. Short title 171

Section 702. Policy of Congress 171

Section 703. Price support for wool and mohair 171

Section 704. Payments as a means of price support _j_ 172

Section 705. Appropriation to cover payments 172

Section 706. Adjustments for grade and other factors and determinations by Secretary 173

Section 707. Marketing year___ 173

Section 708. Advertising and sales promotion programs.___________ 173

Section 709. Amendments to section 201 of the Agricultural Act of

1949 174

GENERAL FISCAL STATUTES

Act of March 8, 1938, as amended 175

Section 1. Appraisal of assets and liabilities __^ 175

Section 2. Excess net worth_______ ______ _ ___________ 175

Section 4. Borrowing power______ ___^ 176

Sections. Taxation^ 177

Act of July 16, 1943. Sec. 3. Federal Reserve Banks as fiscal agents. __ 177

DISPOSITION OF COMMODITIES

Act of July 3, 1956. Grain for migratory waterfowl 178

Act of July 16, 1943. Sec. 4. Reimbursement by other agencies. ______ 179

Act of August 11, 1939. Sale to foreign governments____- __ 179

Agricultural Act of 1956 _______.___..___._ 180

TITLE II.—SURPLUS DISPOSAL

Section 201. Program of orderly liquidation..___ 180

Section 202. Extra-long staple cotton ___ _______ 180

Section 203. Export sales program for cotton _ _____ — _ 181

: Section 204. Agreements limiting imports ____ 181

Section 205. Appropriation to supplement section 32 funds-_ 182

Section 206. Transfer of bartered materials to supplemental stockpile. 182

Section 207. Surplus disposal administrator 182

Section 208. Payment of ocean freight 182

Section 209. Commission to recommend legislation providing for in- 0

Ä creased industrial use of agricultural products 182

Section 210. Donation to penal and correctional institutions 183

Section 211. Federal irrigation, drainage, and flood-control projects— 184
CONTENTS XI

Part VI. PKICE SUPPORT/EXPORT, AND SURPLUS

REMOVAL—Continued

SUBPART B. PRICE SUPPORT—Continued

LOANS AND ADVANCES TO DEPARTMENTAL AGENCIES

Pajsre

Agricultural Adjustment Act of 1938, as amended. Sec. 391 (c). Crop

insurance premium advances and advances for purchases of conservation

materials 185

Department of Agriculture Appropriation Act, 1950. Classing or grading

agricultural commodities for producers obtaining price support 185

Department of Agriculture Appropriation Act, 1952. Classing or grading

agricultural commodities _,_> 185

Department of Agriculture Appropriation Act, 1957. Foot-and-mouth

and other contagious diseases of animals and poultry 185

Agricultural Act of 1954. Sec. 204. Brucellosis eradication 186

MISCELLANEOUS COMMODITY CREDIT CORPORATION STATUTES

Department of Agriculture and Farm Credit Administration Appropriation

Act, 1955. Administrative expense limitation ; . 187

Act of June 30, 1949, as amended. Sec. 602. Exemption from Federal

Property and Administrative Services Act ^. 187

Department of Agriculture Organic Act of 1944. Sec. 402. Reimbursement of procurement costs 187

Internal Revenue Code of 1954. Sees. 77 and 1016. Treatment of"commodity credit loans for income tax purposes 188

Agricultural Adjustment Act of 1938. Sec. 383. Insurance of cotton and

reconcentration of cotton__ 188

Taft Anti-Inflation Law. Sec. 7. Stimulation of foreign productioñ_IIII 188

Other Principal Statutes Applicable to Commodity Credit Corporation».. 189

SUBPART C—-EXPORT AND SURPLUS REMOVAL

Agricultural Trade Development and Assistance Act of 1954 190

Section 1. Short title 190

Section 2. Policy of Congress. ._. "H 190

TITLE I. SALES FOR FOREIGN CURRENCY

Section 101. Sale of surplus commodities for foreign currencies 191

Section 102. Use of Commodity Credit Corporation stocks and funds. 191

Section 103. Appropriation to reimburse Commodity Credit Corporation ____ ,.^^ __... 192

Section 104. Use of foreign currencies ^^.._._. 192

Section 105. Deposit of foreign currencies-._.. 194

Section Í06. Definition of surplus agricultural commodities . _ ^ _ . _ 194

Section 107. Definition of friendly nation... _.__ 194

Section 108. Report to Congress..... I94

Section 109. Expiration date...... _ . I94

TITLE 11. FAMINE RELIEF AND OTHER ASSISTANCE

Section 201. Transfer of Commodity Credit Corporation surplus

commodities to friendly nations-... 194

Section 202. Transfers on a grant basis _._^ IIII 195

Section 203. Limitation on value of commodities transferred 195

Section 204. Expiration date__ ^_^ ^ ^-.__ 195
XII CONTENTS

PART VI. PKICE SUPPORT, EXPORT, AND SURPLUS

REMOVAL—Continued

SUBPART G—EXPORT AND SURPLUS REMOVAL—Continued

Agricultural Trade Development and Assistance Act of 1954—Continued

TITLE III. GENERAL PROVISIONS

Pag«

Section 303. Barter for other commodities _ 195

Section 304. Assisting friendly countries to be independent of trade

with the U. S. S. R . _. 196

Section 305. Identification of packages 196

Section 32 and related statutes:

Section 32 of Public Law 320, 74th Cong 197

Act of June 28, 1937, as amended. Purchase of commodities for

utilization under section 32 ^ 198

Agricultural Act of 1949. Sec. 404. Utilization of Commod'ity

Credit Corporation in section 32 and school lunch programs. 199

Act of August 11,1939. Purchase and distribution of fishery products. 199

Act of August 9, 1955. Wheat flour and corn meal 200

International Wheat Agreement Act of 1949- 202

Section 1. Short title 202

Section 2. Making wheat and flour available under the International Wheat Agreement 202

Section 3. Other action and issuance of rules and regulations 203

Act of August 1, 1953. Sec. 2. References to International Wheat

Agreement deemed to include revised agreement 205

Act of August 3, 1956. Sec. 2. References to International Wheat

Agreement deemed to include 1956 agreement 205

Part VII. APPLICABLE APPROPRIATIONS

Fiscal year 1956:

Agricultural conservation program service 206

School lunch program 208

Agricultural adjustment programs 208

Sugar Act program 208

Federal Crop Insurance Corporation I_II 208

TITLE II. CORPORATIONS

Federal Crop Insurance Corporation 208

Commodity Credit Corporation:

Restoration of capital impairment __. 209

Limitation on administrative expenses __. 209

TITLE III. SPECIAL ACTIVITIES

Research on strategic and critical agricultural materials 209

Repayment to Commodity Credit Corporation for eradication of

foot-and-mouth and other contagious diseases of animals and

poultry ^ 209

International Wheat Agreement 210

Reimbursement to Commodity Credit Corporation for transfer of

wheat to Pakistan . 210

Reimbursement to Commodity Credit Corporation for emergency feed

assistance 210

Reimbursement to Commodity Credit Corporation for emergency

famine relief to friendly peoples . 210

Fiscal year 1957:

Agricultural Conservation Program Service . 210

School Lunch Program 212

Agricultural Adjustment Programs I 212

Sugar Act Program _ 212

Federal Crop Insurance Corporation^. 212
CONTENTS Xni

PAKT VII. APPLICABLE APPROPEIATIONS—Continued

Fiscal year 1956—Continued

TITLE II. CORPORATIONS

Page

Federal Crop Insurance Corporation 212

Commodity Credit Corporation:

Restoration of capital impairment 213

Limitation on administrative expenses.— ~- 213

TITLE III. SPECIAL ACTIVITIES

Research on strategic and critical agricultural materials 213

Reimbursements to Commodity Credit Corporation for advances for

animal disease eradication activities«. 213

Reimbursement to Commodity Credit Corporation for advances for

grading and classing activities 214

Special commodity disposal programs ---- 214

TITLE V. GENERAL PROVISIONS

Section 501. Purchase of motor vehicles 214

Section 502. Employment of aliens 214

Section 503. Options to purchase land - 214

Section 504. Predicting prices of cotton 214

Section 505. Purchase of twine 215

Section 506. Contracting _ ---r- 215

Section 507. Expenditure of funds for publicity with respect to legislation 215

Section 508. Advisory committees to assist in research 215

Short title - - - -— 215

Part VIII. MISCELLANEOUS LAWS

Agricultural Marketing Agreement Act of 1937, reenacting, amending, and

supplementing the Agricultural Adjustment Act, as amended 216

Section 1. Reenactment of provisions of Agricultural Adjustment Act. 216

(a) Section 1. Declaration of emergency 216

(b) Section 2. Declaration of policy 217

(c) Section 8a (5), (6), (7), (8), and (9). Violations and enforcement -— 217

Section 8b. Marketing agreements 218

Section 8c. Orders 218

(1) Orders- - 218

(2) Commodities to which applicable 219

(3) Notice and hearing 219

(4) Finding and issuance of order 219

(5) Terms—milk and its products 219

(6) Terms—other commodities. 221

(7) Terms common to all orders 223

(8) Orders with marketing agreement 224

(9) Orders with or without marketing agreement 224

( 10) Manner of regulation and applicability 225

(11) Regional application 226

(12) Cooperative association representation 226

(13) Retailer and producer exemption 226

(14) Violation of order 226

( 15) Petition by handler and review 227

(16) Termination of orders and marketing agreements— 227

(17) Provisions applicable to amendments__ 228

(18) Milkprices 228

(19) Producer referendum 229

(f) Section 8d. Books and records 229

(g) Section 8e. Restrictions on imported commodities 230

(h) Section 10 (a), (b), (2), (c), (f), (g), (h), and (i). Miscellaneous 231

(d)

(e)
XIV CONTENTS

PAKT VIII. MISCELLANEOUS LAWS—Continued

Agricultural Ma^eting Agreement Act of 1937, etc.—Continued

Section 1—Continued p^^^

(i) Section 12 (a) and (c). Appropriation and administrative

expenses 234

(j> Section 14. Separability of provisions_'>III111111111 ' " ' " " ' 234

(k) Section 22. Imports .___>__ 235

Trade Agreements Extension Act of 195L__.. ""' "' 236

Section 2. Amendments to Agricultural Adjustment Act._____ """" 238

bection 3. Arbitration of disputes concerning milk " 238

Section 4. Agreements, etc., unaffected» _._ 239

Section 5. Taxes under Agricultural Adjustment Act: provisions unaffected '^ OQQ

Section 6. Short title _~ "* """ """" 239

National School Lunch Act: "~~' "' "

Section 1. Short title 240

Section 2. Declaration of policy IIIIIIIIIII '""" " 240

Section 3. Appropriations authorized IIIIIII 240

Section 4. Apportionments to States IIII 240

Sections. Nonfood assistance HI 241

Section 6. Direct federal expenditures 241

Section 7. Payments to States _-IIIIII"""""^~'" 242

Section 8. State disbursement to schools I_IIIIIIIIIIIII~ ' 243

Section 9. Nutritional and other program requíremeñtsVII" 243

Section 10. Nonprofit private schools ^_ _ 243

4. ^/ÍÍ^^^ ^ ^* ^^^^®^l^^^o"s provisions and definitionsVril I" "^ 244

Act of December 20, 1944—compromising, adjusting, or canceling debts«. 245

Index .. 94.7
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

powers. , ^

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.

Section 16 (b) was enacted August 7,1956 (70 Stat. 1115), to provide

specifically for a conservation program in the States of the Great

Plains. 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 31,1958.
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 amd House of Representatives of the

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

recognized that the wastage 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

1

412526—57 2
2 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

(b) On any other lands, upon obtaining proper consent or the

necessary rights or interests in such lands. (16 U. S. C. 590b)

BENEFITS FOE 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 eight 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 rentin 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

out the provisions of this Act. (16 TJ. S. C. 590d)

ESTABLISHMENT OF SOIL CONSERVATION SERVICE

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

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 sec1 Functions of SoU Conservation Service in Department of Agriculture 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 fteorganizatlon Plan No.

IV, Sec. 6, efieective June 30, 1940, 5 F. R. 2421, 54 Stat. 1235, 5 U. S. C. 133t (Note).
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 3

tiens 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 alloted to said organization shall be

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 thatthere 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 U. S. C.

590e)

APPROPRIATION AUTHORIZED

SEO. 6. There are hereby authorized to be appropriated for thé

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 U. 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 five-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 effectuate the purposes

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

the production of supplies of foods and fibers suiBcient to maintain

normal domestic human consumption as determined by the Secretary

from the records of domestic human consumption in the years 1920
4 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

to 1929, inclusive, taking into consideration increased population,

q[uantities 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 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.a590g(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. (16U.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. (16 U. S. C. 590g (c) )

REQUIREMENTS OF STATE PLANS

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

(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 hj 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 Ü. S. 0. ö90g (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
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 5

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

a furtherance of such accomplishment as may reasonably be

achieved through the action of such State. (16 U. S. 0.590g (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

year) as he finds necessary to carry out such 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 in 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 m 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 U. S. C. 590g (f) )

APPORTIONMENT OF FUNDS FOR StTCCiaEDING 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. ö90g (g) )

AUTHORITY OF SECRETARY TO MAKE PAYMENTS OR GRANTS OF AID

DIRECÎTLY TO FARMERS

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

7 (a) during the i)eriod 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
6 SOIL eONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

tlie 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, 1959, except with

respect to farming operations commenced m 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 31,1958,

except with respect to payments or grants in connection with farming

operations carried out prior to January 1, 1959. During the period

prior to January 1, 1959, the Secretary shall carry out the purposes

specified in section 7 (a) through State action as rapidly as adequate

State laws are enacted and satisfactory State plans are submitted

JSTotwithstanding the foregoing provisions of this section and section 7,

the provisions of this section with respect to the State, county, and

local committees of farmers shall continue in full force and effect for

purposes other than the administration of State plans. (16 U. S. C.

590h (a))

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 with 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 any 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. Clauses (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
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 7

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 committe 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 Agricultural 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 iterests 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 existiiig

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

marketing and distribution ; shall not have power to accjuire 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. Eules and

regulations governing payments or grants under this subsection shall

be as simple and direct as possible, and, wherever 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, or who render services to the Secretary in delivering to producers approved conservation materials, for the carrying

out, by the producers, of soil-building or soil-conserving practices
8 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

approved by the Secretary. The price at which purchase orders for

any conservation materials or services are filled may be limited to a

fair price fixed in accordance with regulations prescribed 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 oi 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. 0. ö90h (b) )

[PUBLIC LAW 690, 83d Confess.—* * * SEC. 503. Nothing contained in section 8 (b) of the Soil Conservation and Domestic Allotment Act, as amended, or in any other provision of law, shall be

construed to authorize the Secretary of Agriculture to impose any

limitations upon the number of terms for which members of county

committees established under such section may be reelected. (16

Ü. S. C. 590h-3)]

[PUBLIC LAW 979, 84th Congress.—Payments of grants under sections 7 to 17 of the Soil Conservation and Domestic Allotment Act,

as amended, may be conditioned upon the utilization of land with

respectto which such payments or grants are to be made in conformity

with farming practices which will encourage and provide for soilbuilding 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 such Act, for the respective States.

(August 3,1956,70 Stat. 1033)]

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

ten 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 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
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 9

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, 79th 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 allotpient 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) (Eepealedby53Stat.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

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 jrears 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.
10 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

(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.

(16Ü.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

such 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 orilj) 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 complied

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

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 defined 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.
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 11

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 provision 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 XJ. 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 making of such payments for each year an

amount sufficient to permit the increases herein specified to be made

withip 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 payment shall be increased by 40

per centum ;

(2) More than $20 but not more than $40, the payment shall

be increased by $8, plus 20 per centum of 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.
12 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

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

which shall be used to calculate the 40-, 20-, and lO-per-centum mcreases 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 such payments. [See further payment limitations contained in Department of Agriculture Appropriation Acts,

fiscal years 1954 and 1955, pages 172,175, of this compilation.]

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

who comply with 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. Persons who carry

out conservation practices on federally owned noncropland which

directly conserve or benefit nearby or adjoining privately owned lands

of such persons and who maintain and use such Federal land under

agreement with the Federal agency having jurisdiction thereof and

who comply with the terms and conditions of the agricultural conservation program formulated pursuant to sections 7 to 17 of this Act,

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

such 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 orsharecroppers, 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 xmder such subsection

that would otherwise be made to the landlord shall not hereafter cerate to increase any such payment or grant to such landlord. Such

limitations shall not apply if on investigation the local committee

finds that the change is justified and approves such change m relationship or reduction. Such action of local committeesshall be subject

to approval or disapproval by State committees. (16 XJ. S. O. 590h

(f))

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
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 13

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 coimty committee. Such assignmentshallinclude the statementthatthe assi^mentis 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 paymentto the farmer is made without regard

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

£ÑAVAL 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 in 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)J

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. 590i)

DEFINITION OF AGRICULTURAIi 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. (16U. S. 0. 590])

AVAILABILITY OF FUNDS

SEC. 11. All funds available for carrying outthis Act shall be available for allotmentto the bureaus and offices of the Department of Agriculture and for transfer to such other agencies of the Federal or State

Governments, or to local public agencies, 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 :

Provided further^ Thatthe Secretary may make such payments in ad-
14 BÖHi CONSERVATION AHB DOMESTIC ALLOTMENT ACT, AS AMENDED

vanee of determination of performance : Provided further^ That the

transfer of funds for services of technicians in formulating and carrying out agricultural conservation programs, from allotments for agricultural conservation payments within a State, shall be subject to such

limitations and conditions as may be provided in appropriation or

other law. Funds so transferred may be placed in a single account

for each State. ( 16 XT. S. C. 590k)

EXPANSION OF MARKETS EOR AGRICULTURAL COMMODITIES AND ADVANCING

FUNDS TO FEDERAL CRO:p INSURANCE CORPORATION

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

powers conferred in this section will tend to carry out the 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 pa5^ment 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 MABKETTNG

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 piirposes the provisions of law applicable to the appointment

and compensation of persons employed by the Production and MarketingAdministration shall apply. (16XJ. S.C.590m)
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 15

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

hereof5 when officially determined in conformity with rules or regulations prescribed by the Secretary of Agriculture, shall be reviewable

only by the Secretary of Agriculture. Payments to claimants under

sections 7 to 17, inclusive, of this Act maj^ be made upon the certificate

of the claimant, which certificate shall be in such form as the Secretary

of Agriculture 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. (16 U.S. C.590n)

APPROPRIATIONS AUTHORIZATIONS 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.

The funds available 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 the 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 ten 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

prices of 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

ten 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 aA^erage prices for the

preceding ten 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
16 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

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. Notwithstanding the foregoing provisions of this section and the provisions

of section 7 (g), programs of soil building practices and soil- and

water-conserving practices shall be based on a distribution of the funds

available for j)ayments 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

by more than 15 per centum from the distribution of such funds for

the next preceding program year. In carrying out such programs,

the Secretary shall give particular consideration to conservation problems on farm lands diverted from crops under acreage allotment programs and to the maintenance of a proper balance between soil conserving and soil depleting crops on the farm. (16 U. S. C. 590o)

LIMITATION ON OBLIGATIONS INCURRED

SEC. 16. (a) 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. 590p)

(b) Notwithstanding any other provision of law—

(1) the Secretary is authorized, within the amounts of such

appropriations as may be provided therefor, to enter into contracts of not to exceed ten years with producers in the Great Plains

area determined by him to have control for the contract period

of the farms or ranches covered thereby. Such contracts shall be

designed to assist farm and ranch operators to make, in orderly

progression over a period of years, changes in their cropping systems and land uses which are needed to conserve the soil and water

resources of their farms and ranches and to install the soil and

water conservation measures needed under such changed systems

and uses. Such contracts shall be in effect during the period ending not later than December 31, 1971, on farms and ranches in

counties in the Great Plains area of the States of Colorado, Kansas, Montana, Nebraska, New Mexico, North Dakota, Oklahoma,

South Dakota, Texas, and Wyoming, designated by the Secretary

as susceptible to serious wind erosion by reason of their soil types,

terrain, and climatic and other factors. The producer shall

furnish to the Secretary a plan of farming operations which incorporates such soil and water conservation practices and principles as may be determined by him to be practicable for maximum

mitigation of climatic hazards of the area in which the farm is

located, and which outlines a schedule of proposed changes in

cropping systems and land use and of the conservation measures

which are to be carried out on the farm or ranch during the contract period to protect the farm or ranch from erosion and deterioration by natural causes. Under the contract the producer shall

agree—

(i) to effectuate the plan for his farm or ranch substantially in accordance with the schedule outlined therein unless
SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED 17

any requirement thereof is waived or modified by the Secretary pursuant to paragraph (3) of this subsection;

(ii) to forfeit all rights to further payments or grants

under the contract and refund to the United States all payments or grants received thereunder upon his violation of the

contract at any stage during the time he has control of the

farm if the Secretary determines that such violation is of

such a nature as to warrant termination of the contract, or

to make refunds or accept such payment adjustments as the

Secretary may deem appropriate if he determines that the

producer's violation does not warrant termination of the contract;

(iii) upon transfer of his right and interest in the farm

or ranch during the contract period to forfeit all rights to

further payments or grants under the contract and refund

to the United States all payments or grants received thereunder unless the transferee of the farm or ranch agrees with

the Secretary to assume all obligations of the contract;

(iv) not to adopt any practice specified by the Secretary

in the contract as a practice which would tend to defeat the

purposes of the contract;

(v) to such additional provisions as the Secretary determines are desirable and includes in the contract to effectuate

the purposes of the program or to facilitate the practical

administration of the program.

In return for such agreement by the producer the Secretary

shall agree to share the cost of carrying out those conservation

practices set forth in the contract for which he determines that

cost-sharing is appropriate and in the public interest. The portion of such cost (including labor) to be shared shall be that

part which the Secretary determines is necessary and appropriate

to effectuate the physical installation of the conservation measures

under the contract ;

(2) the Secretary ma^^ terminate any contract with a producer

by mutual agreement with the producer if the Secretary determines that such termination would b'C in the public interest, and

may agree to such modification of contracts previously entered

into as he may determine to be desirable to carry out the purposes

of the program or facilitate the practical administration thereof ;

(3) insofar as the acreage of cropland on any farm enter into

the determination of acreage allotments and marketing quotas

under the Agricultural Adjustment Act of 1938, as amended, the

cropland acreage on the farm shall not be decreased during the

period of any contract entered into under this subsection by reason

of any action taken for the purpose of carrying out such contract ;

(4) the acreage on any farm which is determined under regulations of the Secretary to have been diverted from the production of any commodity subject to acreage allotments or marketing

quotas in order to carry out the contract entered into under the

program shall be considered acreage devoted to the commodity

for the purposes of establishing future State, county, and farm

acreage allotments under the Agricultural Adjustment Act of

1938, as amended;

412526—57 3
18 SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT, AS AMENDED

(5) in applying the provisions of paragraph (6) of Public

Law 74, Seventy-seventh Congress (7 U. S. C. 1340 (6) ), relating

to the reduction of storage amount of wheat, any acreage diverted

from the production of wheat under the program carried out

under this subsection shall be regarded as wheat acreage ;

(6) the Secretary shall utilize the technical services of agencies

of the Department of Agriculture in determining the scope and

provisions of any plan and the acceptability of the plan for effectuating the purposes of the program. In addition the Secretary

shall take into consideration programs of State and local agencies, including soil conservation districts, having for their purposes the objectives of maximum soil and water conservation ;

(7) there is hereby authorized to be appropriated without

fiscal year limitations, such sums as may be necessary to carry

out this subsection : Pro'vided^ That the total cost of the program

(excluding administrative costs) shall not exceed $150,000,000,

and for any program year payments shall not exceed $25,000,000.

The funds made available for the program under this subsection

may be expended without regard to the maximum payment limitation and small payment increases required under section 8 (e) of

this Act, and may be distributed among States without regard

to distribution of funds formulas of section 15 of this Act. The

program authorized under this subsection shall be in addition to,

and not in substitution of, other programs in such area authorized by this or any other Act. (16U. S. C. 590p)

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 Eico 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 Agricultural Act of 1954 repealed

the authority for marketing quotas for corn, but authority for corn

acreage allotments was retained.

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 TroppyN. La Sara Farmers Gin Go. (113 F. 2d

350), and as to wheat in the case Wichard v. Filburn (317 U. S. 111).

19
PART n

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

coEomerce and for other puri>oses.

Be it enacted ly the Senate and House of Représentatives of the

united States of America in Congress assemhled^ Thdit this act may

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

1281).

DECLARATION OF POLICY

SEC. 2. It is 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, ajid rebuilding the

farm and ranee 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 CONSEEVATION 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 FEEIGHT EATES, NEW USES

AND MAEKETS, AND DISPOSITION OF SUEPLUSES

ADJUSTMENTS IN FKEIGHT RATES FOR FARM PRODUCTS

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

complaint to the Interstate Commerce Commission with respect to

20
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 21

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

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. 0.1291 (a))

AGRIOULTUKAL ADJUSTMENT ACT OF 1938, AS AMENDED

(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, tariffs, 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 and

development shall be devoted primarily to those farm commodities

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

and byproducts. (7U.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 XJ. S. C. 1292 (c) )
22 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

(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. (7 U. S. C. 1292 (d) )

(e) The 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.C. 1292(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.

(7U.S.C. 1292(g))

TITLE III—LOANS, PAEITY PAYMENTS, CONSUMER

SAFEGUARDS, MARKETING QUOTAS, AND

MARKETING CERTIFICATES

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 ten-year j)eriod 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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 23

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

of prices received by farmers for agricultural commodities during

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

agricultural commodities during the period January 1910 to December

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

shall include wartime subsidy payments made to producers under

programs designed to maintain maximum prices established under

the Emergency Price Control Act of 1942.

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

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

wages paid hired farm labor, interest on farm indebtedness secured

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

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

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

December 1914, inclusive.

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

m 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 aricultural commmodity, 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

parity price for any agricultural commodity as of any date shall be—

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

the effective date of the Agricultural Act of 1948, less

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

by the number of full calendar years (not counting 1956 in the

case of basic agricultural commodities) which, as of such date,

have elapsed after January 1, 1949, in the case of nonbasic agricultural commodities, and after January 1, 1955, in the case of

the basic agricultural commodities. The Secretary shall make

a thorough study of possible methods of improving the parity

formula and report thereon, with specific recommendations, including drafts of necessary legislation to carry out such recommendations, to Congress not later than January 31, 1957.

(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

mterested producers shall, hold public hearings to determine the

proper relationship between the parity price of such commodity and

the parity prices of other agricultural commodities. Within sixty

days after commencing such hearing the Secretary shall complete such

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

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

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

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

durmg the six-year period beginning January 1, 1950, shall not be
24 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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

enactment of the Agricultural Act of 1949.

[Prior to enactment of the Agricultural Acts of 1948 and 1949, the

term "parity" was defined in sec. 301 (a) of the Agricultural Adjustment Act of 1938, as amended, as follows: "Tarity,' 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 August 1919-July 1929 base period shall be used m

allocating any funds appropriated prior to September 1, 1940^" ^

(52Stat.38,54Stat.l210).] ^ o ^ T. •

[Agricultural Marketing Agreement Act of 1937, bee. 2. it is

hereby declared to be the policy of Congress—

(1) Through the exercise of the powers conferred upon the Secretary of Agriculture under this title, to establish and maintain^ such

orderly marketing conditions for agricultural commodities in interstate commerce as will establish prices to farmers at a level that will

give agricultural commodities a purchasing power with respect to

articles that farmers buy, equivalent to the purchasing power of agricultural commodities in the base period. The base period m the case

of all agricultural commodities except tobacco and potatoes shall be

the pre-war period, August 1909-July 1914. In the case of tobacco

and potatoes, the base period shall be the postwar period, August 1919-

July 1929 ; and, in the case of all commodities for which the base period

is the prewar period, August 1909 to July 1914, will also reflect current

interest payments per acre on farm indebtdness secured by real estate

and tax payments per acreon farm real estate, as contrasted with such

interest payments and tax payments during the base period. (48 Stat.

32 ; 49 Stat. 750,782 ; 50 Stat. 247 ; 7 U. S. C. 602) 1

$ * * * * * *

[SEC 8e. In connection with the making of any marketing agreement or the issuance of any order, if the Secretary finds and proclaims

that, as to any commodity specified in such marketing agreement or

order, the purchasing power during the base period specified for such

commodity in section 2 of this title cannot be satisfactorily determined

from available statistics of the Department of Agriculture, the base

period, for the purposes of such marketing agTeement or order, shall

be the postwar period, August 1919-July 1929, or all that portion

thereof for which the Secretary finds and proclaims that the purchasiFor Maryland tobacco the base period is August 1936 to July 1941. (62 Stat. 1248).
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 25

ing power of such commodity can be satisfactorily determined from

available statistics of the Department of Agriculture. (49 Stat. 762,

60 Stat. 246, 7 U. S. C. 608e)t|

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

agriculture which will provide the farm operator and his family with

a standard of living equivalent to those afforded persons dependent

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

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

which bears the same relationship to parity income from agriculture

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

the preceding ten calendar years bears to the average gross income

from agriculture for such ten calendar years.

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

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

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

Columbia or Puerto Eico, 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 Eico.

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

Columbia and Puerto Eico.

(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. ^^^v^^

(9) The term "corn" means field corn. (7 tJ. S. C. 1301 (a), Public

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

[PuBiiio LAW 897, 80th Congress—SEC. 302 (f). All references in

other laws toil) 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

Ü.S.C. 1301a)]

[PUBLIC LAW 272, 81st 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. 0.1301b)]
26 AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED

(b) DEFINITIONS APPLICABLE TO ONE OE MOEE 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 determines would be harvested as grain from such acreage if all the corn on

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

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

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

that such actual production is substantially below normal, the local

committee, in accordance with regulations of the Secretary, shall weigh

representative samples of ear corn taken from the acreage involved,

make proper deductions for moisture content, and determine the

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

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

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

such number of acres.

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

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

which weighs seventy pounds, and in the case of shelled corn, means

that amount of shelled corn including not to exceed 16^/^ per centum

of moisture content, which weighs fifty-six pounds.

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

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

in the United States at the beginning of such marketing year, not

including any quantity which was produced in the United States during the calendar year then current.

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

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

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

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

[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

Ajgricultural 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 oí 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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 27

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 [of the 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 ten calendar years immediately preceding the

calendar year for which such area is determined, after adjustment

for abnormal weather conditions, is four hundred and fifty bushels or

more per farm and four bushels or more for each acre of farm land in

the county.

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

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

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

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

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

and an average of atleast four bushels for each acre of farm land in the

county or in the minor civil division, as the case may be, he shall cause

immediate investigation to be made to determine such fact. If, upon

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

rninor 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 com 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

^aooi^"^^^^^"^ ^^^^^ "^'^^^ ^ f^* *^® Agricultural Adjustment Act of

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

they are used.

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

including farmers' ^tock peanuts, shelled peanuts, cleaned peanuts.
28 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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

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

date specified below :

Corn, October 1-September âO ;

Cotton, August 1-July 31 ;

Kice, August 1-July 31 ;

Tobacco (flue-cured),July 1, June30;

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

Wheat, July 1-June 30. ^^ ^^^ ^

[Peanuts, August 1-July 31 (see Sec. 359 (a), p. 66).] • ^ , ,,

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

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

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

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

average yield is used in any computation authorized in this 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 o± acres o±

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

such number of acres. ^ . i ^ i

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

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

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

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

for the marketing year for which normal supply is being determined,

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

and exports used in computing normal supply: 15 per centum m

the case of corn; 10 per centum in the case of rice; 20 per centum

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

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

as he may deem necessary.

[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 (0) 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, 1952 ed., Supplement I.]

(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 years

exports as an allowance for a normal carry-over.

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

be the estimated domestic consumption of cotton for the marketing

year for which such normal supply is being determined, plus the estimated exports of cotton for such marketing year, plus 30 per centum

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

carry-over. . i i»

(11) (A) "Normal year's domestic consumption,'] m the case oí

corn and wheat, shall be the yearly average quantity of the com-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 29

modity, wherever produced, that was consumed in the united States

during the ten marketing years immediately preceding the marketmg

year in which such consumption is determined, adjusted for current

trendsin such consumption. , . , j» xi.

(B) "Normal years domestic consumption," m the case ot cotton

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

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

during the ten marketing years immediately preceding the marketing

year in which such consumption is determined, adjusted for current

trends in such consumption. .

(C) "Normal year's domestic consumption," in the case ot 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 m which

such consumption is determined, adjusted for current trends in such

consumption.

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

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

the five marketing years) immediately preceding the marketing year

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

such exports.

(13) (A) "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 in the case of wheat, or the five

calendar years in the case of corn, immediately preceding the year m

which such normal yield is determined, adjusted for abnormal weather

conditions and, in the case of wheat, for 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 in the case of wheat, or

the five calendar years in the case of corn, 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 in

the case of wheat, or the 5 years in the case of corn, 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 year

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

yield for such year, determined in accordance with regulations issued

by the Secretary, shall be used as the actual yield for such year. In

applying such subparagraphs, if, on account of drought, flood, insect

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

any year of such ten-year period or five-year period, as the case may be,

is less than 75 per centum of the average (computed without regard to

such year) such year shall be eliminated in calculating the normal

yield per acre.

(D) "Normal yield" for any county, in the case of rice, shall be the

average yield per acre of rice for the county during the five calendar
30 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

years immediately preceding the year for which such normal yield is

determined, adjusted for abnormal weather conditions and for trends

in yields. If for any such year data are not available, or there is no

actual yield, an appraised yield for such year, determined in accordance with regulations issued by the Secretary, taking into consideration the yields obtained in surrounding counties during such year and

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

actual yield for such year.

(E) "Normal yield" for any farm, in the case of rice, shall be the

average yield per acre of rice for the farm during the five calendar

years immediately preceding the year for which such normal yield is

determined, adjusted for abnormal weather conditions and for trends

in yields. If for any such year the data are not available or there is

no actual yield, then the normal yield for the farm shall be appraised

in accordance with regulations issued by the Secretary, taking into

consideration abnormal weather conditions, trends in yields, the

normal yield for the county, the yields obtained on adjacent farms

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

(F) In applying subparagraphs (D) and (E), if on account of

drought, flood, insect pests, plant disease, or other uncontrollable

natural cause, the yield for any year of such five-year period is less

than 75 per centum of the average, 75 per centum of such average shall

be substituted therefor in calculating the normal yield per acre. If,

on account of abnormally favorable weather conditions, the yield for

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

average, 125 per centum of such average shall be substituted therefor

in calculating the normal yield per acre.

(G) "Normal yield" for any farm, in the case of corn, 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 wheat, but not in the case of

corn, cotton, or peanuts, for trends in yields, during the ten calendar

3^ears in the case of wheat, and five calendar years in the case of corn,

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

Announcement Numbered 118 of the Bureau of Agricultural Economics of the Department:
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 31

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

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

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

Virginia sun-cured tobacco, comprising type 37;

Burley tobacco, comprising type 31 ;

Maryland tobacco, comprising type 32 ;

Cigar-filler and cigar-binder tobacco, comprising types 42, 43, 44,

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

Cigar-filler tobacco, comprising type 41.

The provisions of this 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

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))

(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) )

(d) In making any determination under this Act or under the Agricultural Act of 1949 with respect to the carryover of any agricultural

commodity, the Secretary shall exclude from such determination the

stocks of any commodity acquired pursuant to, or under the authority

of, the Strategic and Critical Materials Stock Piling Act (60 Stat.

596). (7U.S.C.1301 (d))

SEO. 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
32 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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, oe 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. 0.

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 Act it shall be the duty of the Secretary to give due

regard to the maintenance of a continuous and stable supply of agricultural commodities from domestic production adequate to meet

consumer demand at prices fair to both producers and consumers.

(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

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. (T 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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 33

therein, (2) disrupting the orderly marketing pf such commodity

therein, (3) reducing the price for such commodity with consequent

iniury and destruction of interstate and foreign commerce m 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. b. Ü. loll (o))

(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 m such

commodity and its products, and the operation of the provisions o±

this Part becomes necessary and appropriate m order to promote,

foster, and maintain an orderly flow of such supply m interstate and

foreign commerce. (7 U. S. 0. 1311 (c) )

NATIONAL MARKETING QUOTA

SEO. 312. (a) The Secretary shall, not later than December 1 of

any marketing year with respect to flue-cured tobacco, and February

1 of any marketing year with respect to other kinds of tobacco, proclaim a national marketing quota for any kind of tobacco for each of

the next three succeeding marketing years whenever he determines

with respect to such kind of tobacco— ^

(1) that a national marketing quota has not previously been

proclaimed and the total supply as of the beginning of such marketing year exceeds the reserve supply level therefor ;

(2) that such marketing year is the last year of three consecutive years for which marketing quotas previously proclaimed will

be in effect; . .

(3) that amendments have been made m provisions tor establishing farm acreage allotments which will cause material revision

of such allotments before the end of the period for which quotas

are in effect; or i . i <. i

(4) that a marketing quota previously proclaimed ±or such

marketing year is not in effect because of disapproval by producers

in a referendum held pursuant to subsection (c) : Provided^ That

if such producers have disapproved national marketing quotas

in referenda held in three successive years subsequent to 1952,

thereafter a national marketing quota shall not be proclaimed

hereunder which would be in effect for any marketing year within

the three-year period for which national marketing quotas previously proclaimed were disapproved by producers in a referendum,

unless prior to November 10 of the marketing year one-fourth or

more of the farmers engaged in the production of the crop of

tobacco harvested in the calendar year in which such marketing

year begins petition the Secretary, in accordance with such regulations as he may prescribe, to proclaim a national marketing

quota for each of the next three succeeding marketing years.

(7U. S.O. 1312 (a))

(b) The Secretary shall also determine and announce, not later than

the first day of December with respect to flue-cured tobacco and not

later than the first day of February with respect to other kinds of

tobacco, the amount of the national marketing quota proclaimed

412526—57 4
34 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

pursuant to subsection (a) which is in effect for the next marketing

year in terms of the total quantity of tobacco which may be marketed

which will make available during such marketing year a supply of

tobacco equal to the reserve supply level. The amount of the national marketing quota so announced may, not later than the following

March 1, be increased by not more than 20 per centum if the Secretary determines that such increase is necessary in order to meet market

demands or to avoid undue restrictions of marketings in adjusting

the total supply to the reserve supply level. (7 U. S. C. 1312 (b) )

^ (c) Within thirty days after the proclamation of national marketing quotas under subsection (a), the Secretary shall conduct a referendum of farmers engaged in the production of the crop of tobacco

harvested immediately prior to the holding of the referendum to determine whether such farmers are in favor of or opposed to such

quotas^ for the next three succeeding marketing years. If more than

one-third of the farmers voting oppose the national marketing quotas,

such results shall be proclaimed by the Secretary and the national

marketing quotas so proclaimed shall not be in effect but such results

shall m no wise affect or limit the subsequent proclamation and submission to a referendum, as otherwise provided in this section, of a

national marketing quota. (7 TJ. S. C. 1312 (c) )

[PUBLIC LAW 21, 84th Congress.—* * * That notwithstanding an>

other provision of law—

(1) The Secretary of Agriculture shall, within ten days after

enactment of this Act, redetermine the national marketing quota

for burley tobacco for the 1955-1956 marketing year on the basis

of the latest available statistics of the Federal Government, apportion such quota among States, convert the State quotas to State

acreage allotments, and allot the same among farms pursuant to

and in accordance with applicable provisions of law : Provided^

That burley tobacco marketing quotas and acreage allotments

heretofore established for the 1955-1956 marketing year shall not

be effective, but the preliminary burley tobacco acreage allotment

for any farm determined under section 725.616 of the burley and

flue-cured tobacco marketing quota regulations, 1955-1956 marketing year, issued by the Secretary of Agriculture (19 Federal

Register 3549), shall not be reduced by more than 25 per centum

(except for reductions under section 725.619 of said regulations) ;

(2) Burley tobacco farm acreage allotments of seven-tenths

of an acre or less heretofore determined for the 1955-1956 marketing year when redetermined pursuant to paragraph (1) of this

Act may be reduced but not more than one-tenth acre: Provided,

however, That no allotment of five-tenths of an acre or less shall

be reduced under this section;

(3) Within twenty days after the issuance of the proclamation

of the national marketing quota for burley tobacco for the 1955-

1956 marketing year as redetermined pursuant to paragraph (1)

of this Act, the Secretary of Agriculture shall conduct a referendum of farmers who were engaged in the production of the

1954 crop of burley tobacco to determine whether such farmers

are in favor of or opposed to such redetermined quota. If more
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 35

than one-third of the farmers voting in the referendum oppose

such redetermined quota, the Secretary of Agriculture shall,

within thirty days after the date of the referendum,^ proclaim

the result of the referendum and (1) no quota for burley tobacco

for the 1955-1956 marketing year shall be effective thereafter,

and (2) no price support shall be made available on the 1955 crop

of burley tobacco. (March 31, 1955, 69 Stat. 23)]

APPORTIONMENT OP 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 five-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 allotments. (7 U. S. C. 1313 (a) )

ÇPuBLio LAW 276, 78th Congress.—* * * notwithstanding the provisions of section 313 (a) of the Agricultural Adjustment Act of

1938, as amended, the burley tobacco acreage allotment which would

otherwise be established for any farm having a burley 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, 58 Stat.

136)]

[PuBLiö LAW 528,82d Congress.—* * * notwithstanding any other

provision of law, effective for the 1956 and subsequent crops of

burley tobacco, 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) fivetenths of an acre, or (3) 10 per centum of the cropland: Provided^

however^ That no allotment of seven-tenths of an acre or less shall

be reduced more than one-tenth of an acre in any one year. The

additional acreage required under this 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 (7 U. S. C. 1315)] ^

(b) The Secretary shall provide, through the local committees, for

the allotment of the marketing quota for any State among the farms

a Public Law 528, 82d Cong., was amended by Public Law 21, 84th Cong. (60 Stat. 24).
36 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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: Pro'vided^ That, except for farms

on which for the first time in five years tobacco is produced to be marketed in the marketing year for which the quota is effective, the marketing quota for any farm shall not be less than the smaller of either

(1) three thousand two hundred pounds, in the case of flue-cured tobacco, and two thousand four hundred pounds, in the case of other

kinds of tobacco, or (2) the average tobacco production for the farm

during the preceding three years, plus the average normal production

of any tobacco acreage diverted under agricultural adjustment and

conservation programs during such preceding three years. (7 U. 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 five years tobacco is produced to be

marketed in the year for which the quota is effective and (2) for

further increase of allotments to small farms pursuant to the proviso

in (Subsection (b) of this section on the basis of the following: Land,

labor, and equipment available for the production of tobacco; 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 five years shall not exceed 75 per centum

of the farm marketing quotas established pursuant to subsection (b)

of this section for farms which are similar with respect to the following: Land, labor, and equipment available for the production of

tobacco, crop-rotation practices, and the soil and other physical factors

affecting the production of tobacco. (7 U. S. C. 1313 (c) )

[PUBLIC LAW 425—84th Congress.— * * * That, notwithstanding

any other provision of law and the proclamation by the Secretary of

Agriculture of a national marketing quota for hurley tobacco for the

1956-1957 marketing year pursuant to section 312 of the Agricultural Adjustment Act of 1938, as amended, and the State and farm

acreage allotments established pursuant thereto, the 1956 State acreage allotments of hurley tobacco proclaimed by the Secretary of

Agriculture (20 Federal Eegister 8845) shall be increased so as to

result in a State adjustment factor for each State under section

725.717 of the hurley and flue-cured tobacco marketing quota regulations, 1956-1957 marketing year, issued by the Secretary of Agriculture (20 Federal Eegister 4571), equal to 1.0, and all 1956 farm

acreage allotments of hurley tobacco shall be redetermined on the

basis of such State adjustment factor. The production from the

increased acreage required by this resolution shall be in addition

to the national marketing quota for the 1956-1957 marketing year.

(March 2,1956, 70 Stat. 34)jj
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 37

[PUBLIC LAW 426—Sith Congress.— * * * That, notwithstanding

any other provision of law and the proclamation by the Secretary of

Agriculture of a national marketing quota for fire-cured and dark

air-cured tobacco for the 1956-1957 marketing year pursuant to section 312 of the Agricultural Adjustment Act of 1938, as amended,

and the State and farm acreage allotments established pursuant

thereto, the 1956 State acreage allotments of fire-cured and dark aircured tobacco proclaimed by the Secretary of Agriculture (20 Federal

Eegister 8846) shall be increased so as to result in a State adjustment

factor for each State under section 726.717 of the fire-cured, dark

air-cured and Virginia sun-cured tobacco marketing quota relations, 1956-1957 marketing year, issued by the Secretary of Agriculture (20 Federal Eegister 6066), equal to 1.0, and all 1956 farm

acreage allotments of fire-cured and dark air-cured tobacco shall be

redetermined on the basis of such State adjustment factor. The

production from the increased acreage required by this resolution

shall be in addition to the national marketing quota for the 1956-1957

marketing year. (March 2,1956, 70 Stat. 34)]

£PuBLio LAW 427—84th Congress.— * * * That, notwithstanding

any other provision of law and the proclamation by the Secretary of

Agriculture of a national marketing quota for Maryland tobacco for

the 1956-1957 marketing year pursuant to section 312 of the Agricultural Adjustment Act of 1938, as amended, and the State and farm

acreage allotments established pursuant thereto, the 1956 State acreage allotments of Maryland tobacco proclaimed hj the Secretary of

Agriculture (20 Federal Eegister 8847) shall be increased sor as to

result in a State adjustment factor for each State under section

727.717 of the Maryland tobacco marketing quota regulations, 1956-

1957 marketing year, issued by the Secretary of Agriculture (20

Federal Eegister 6069), equal to 1.0, and all 1956 farm acreage allotments of Maryland tobacco shall be redetermined on the basis of such

State adjustment factor. The production from the increased acreage

required by this resolution shall be in addition to the national marketing quota for the 1956-1957 marketing year. (March 2, 1956, 70

Stat. 35)]

(d) Farm marketing quotas may be transferred only in such manner

and subject to such conditions as the Secretary may prescribe by

regulations. (7U.S.ai313 (d))

(e) In case of flue-cured tobacco, the national quota for 1938 is

increased by a number of pounds required to provide for each State in

addition to the State poundage allotment a poundage not in excess of

4 per centum of the allotment which shall be apportioned in amounts

which the Secretary determines to be fair and reasonable to farms in

the State receiving allotments under 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

flue-cured tobacco shall receive a minimum State poundage allotment

of flue-cured tobacco equal to the average national yield for the preceding five years of five hundred acres of such tobacco. (7 U. S. C.

1313(e))
38 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

(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 five 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 ba«is 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 pursuant to 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 five years. Any acreage of tobacco harvested in excess of the farm acreage allotment for

the year 1955, or any subsequent crop shall not be taken into account

in establishing State and farm acreage allotments. Except for farms

last mentioned or a farm operated, controlled, or directed by a

person who also operates, controls, or directs another farm on which

tobacco is produced, the farm-acreage allotment shall be increased by

the smaller of (1) 20 per centum of such allotment or (2) the percentage by which the normal yield of such allotment (as determined

through the local committees in accordance with regulations prescribed

by the Secretary) is less than three thousand two hundred pounds, in

the case of flue-cured tobacco, and two thousand four hundred pounds

in the case of other kinds of tobacco : Provided^ That the normal yield

of the estimated number of acres so added to farm acreage allotments

in any State shall be considered as a part of the State marketing quota

in applying the proviso in subsection (a). The actual production of

the acreage allotment established for a farm pursuant to this subsection shall be the amount of the farm marketing quota. If any amount

of tobacco shall be marketed as having been produced on the acreage

allotment for any farm which in fact was produced on a different farm,

the acreage allotments next established for both such farms shall be

reduced by that percentage which such amount was of the respective

farm marketing quota, except that such reduction for any such farm

shall not be made if the Secretary through the local committees finds

that no person connected with such farm caused, aided, or acquiesced

in such marketing ; and if proof of the disposition of any amount of

tobacco is not furnished as required by the Secretary, or if any producer on the farm files, or aids or acquiesces in the filing of, any false

report with respect to the acreage of tobacco grown on the farm

required by regulations issued pursuant to thiö Act, the acreage allotment next established for the farm on which such tobacco is produced

shall be reduced by a percentage similarly computed. (7 XT. S. 0.

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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 39

farms owned by him for each of the five 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 five 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 fwther^ That the 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. 1313 (h) )

(i) Notwithstanding any other provision of this Act, wheneyer

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

pursuantto section 312 of this Act. The increase in acreage under this

subsection shall not be considered in establishing future State or farm

acreage allotments. (7 U. S. C. 1313 (i) )

(j) In establishing farm acreage allotments for burley tobacco

crops for the years 1956, 1957, and 1958 the acreage allotment for

any farm which has not been retired from agricultural production

shall not be reduced below the acreage allotment which would otherwise be established because the harvested acreage was less than the

allotted acreage unless the acreage harvested was less than 50 per

centum of the allotted acreage in each of the preceding five years,
40 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

in which event it shall not be reduced for such reason to less than

the largest acreage harvested in any year in such five-year period.^

(7XJ.S.Ç.1313(j))

(j) [sic] The production of tobacco on a farm in 1955 or any subsequent year for which no farm acreage allotment was established shall

not make the farm eligible for an allotment as an old farm under subsections (b) and (g) hereof: Provided^ however^ That by reason of

such production the farm need not be considered as ineligible for a

new farm allotment under subsections (c) and (g) hereof, but such

production shall not be deemed past tobacco experience for any

producer on the farm.^ (7 U. S. C. 1313 (j ) )

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 75 ^ per centum of the average market

price (calculated to the nearest whole cent) for such kind of tobacco

for the immediately preceding marketing year. Such penalty shall

be paid by the person who acquired such tobacco from the producer

but an amount equivalent to the penalty may be deducted by the buyer

from the price paid to the producer in case such tobacco is marketed

by sale; or, if the tobacco is marketed by the producer through a

warehouseman or other agent, such penalty shall be paid by such warehouseman or agent who may deduct an amount equivalent to the penalty from the price paid to the producer : Promded^ 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 execess 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 itis marketed prior to the date on which such

marketing year begins. (7 TJ. S. 0.1314 (a) )

»Subsec. (j) to sec. 313 was added by Public Law 351, 84th Cong. (69 Stat. 670).

*Subsec. (j) to sec. 313 was added by Public Law 361, 84th Cong. (69 Stat. 684). To

correct the error in paragraph designation requires congressional action.

•'Penalty rate of 75 percent effective July 1, 1955, on flue-cured tobacco, and after

October 1, 1955, on all other kinds of tobacco (69 Stat. 24).
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 41

(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 pursuant to this section shall be deposited in a special deposit

account with the Treasurer of the United States until the end of the

marketing year next succeeding that in which the funds are collected,

and upon certification by the Secretary there shall be paid out of such

special deposit account to persons designated by the Secretary the

amount by which the penalty collected exceeds the amount of penalty

due upon tobacco marketed in excess of the farm marketing quota for

any farm. Such special account shall be administered by the Secretary, and the basis for, the amount of, and the person entitled to receive

a payment from such account, when determined in accordance with

reflations prescribed by the Secretary, shall be final and conclusive.

(7U.S.C.13M(b))

PART II—^ACREAGE ALLOTMENTS—CORN

LEGISLATIVE FINDING

SEC. 321. Com is a basic source of food for the Nation, and corn

produced in the commercial corn-producing area moves almost wholly

m 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 com, livestock, and livestock products. When

abnormally excessive supplies exist, transportation facilities in interstate and foreign commerce are overtaxed, and the handling and processing facilities through which the flow of interstate and foreign commerce in corn, livestock, and livestock products is directed become

acutely congested. Abnormally deficient supplies result in substantial decreases in livestock production and in an inadequate flow of

livestock and livestock products in interstate and foreign commerce,

with the consequence of unreasonably high prices to consumers.

Violent fluctuations from year to year in the available supply of

corn disrupt the balance between the supply of livestock and livestock

products moving in interstate and foreign commerce and the supply

of corn available for feeding. When available supplies of corn are

excessive, corn prices are low and farmers overexpand livestock production in order to find outlets for corn. Such expansion, together

with the relative scarcity and high price of corn, forces farmers to

market abnormally excessive supplies of livestock in interstate commerce at sacrifice prices, endangering the financial stability of producers, and overtaxing handling and processing facilities through

which the flow of interstate and foreign commerce in livestock and

livestock products is directed. Such excessive marketings deplete

livestock on farms, and livestock marketed in interstate and foreign

commerce consequently becomes abnormally low, with resultant high

prices to consumers and danger to the financial stability of persons
42 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 com which is transported from the regions where produced to the regions where livestock

is fattened for market in interstate and foreign commerce.

Substantially all the corn moving in interstate commerce, substantially all the corn fed to livestock transported in interstate commerce

for fattening, and substantially all the corn fed to livestock marketed

in interstate and foreign commerce, is produced in the commercial

corn-producing area. Substantially all the corn produced in the commercial corn-producing area, with the exception of a comparatively

small amount used for farm consumption, is either sold or transported

in interstate commerce, or is fed to livestock transported in interstate

commerce for feeding, or is fed to livestock marketed in interstate and

foreign commerce. Almost all the corn produced outside the commercial corn-producing area is either consumed, or is fed to livestock

which is consumed, in the State in which such corn is produced.

The conditions affecting the production and marketing of corn and

the livestock products of corn are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of disparities between the supplies of livestock

moving in interstate and foreign commerce and the supply of corn

available for feeding, and provide for orderly marketing of corn in

interstate and foreign commerce and livestock and livestock products

in interstate and foreign commerce.

The national public interest requires that the burdens on interstate

and foreign commerce above described be removed by the exercise of

Federal power. By reason of the administrative and physical impracticability of regulating the movement of livestock and livestock

products in interstate and foreign commerce and the inadequacy of any

such regulation to remove such burdens, such power can be feasilDly

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 XJ. S. U. 1321)

FARM MARKETING QUOTAS

SECS. 322 to 325, which related to marketing quotas for corn, were

repealed by 68 Stat. 902.

ADJUSTMENT OF FARM MARKETING QUOTAS

[SEC. 326 below repealed by 68 Stat. 902 insofar as applicable to

corn; (b) and (c) below are still applicable to wheat. See paragraph

(6), Public Law 74, 77th Congress, on p. 45.]
AGRICULTURAL ADJUSTMENT ACT OF 193», AS AMENDED 43

SEC. 326. (a) Whenever in any county or other area the Secretary

finds thatthe 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 tue 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 U. 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))

PROCLAMATION OF COMMERCIAL CORN-PRODUCING AKEA

SEC. 327. Not later than February 1 of each calendar year, the Secretary shall ascertain and proclaim the commercial corn-producing

area(7U.S.C.1327)

ACREAGE ALIX)TMENT

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 five calendar

years immediately preceding such calendar year, adjusted for abnormal weather conditions, 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 corn-producing area and

corn 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 (7U.S.C. 1328)

APPORTIONME1SÎT 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 five 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) )
44 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

(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 ^T\^HEAT

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 farmers,

is sold on the country-wide market and, as wheat or flour, flows almost

entirely through instrumentalities of interstate and foreign commerce

from producers to consumers.

Abnormally excessive and abnormally deficient supplies of wheat

on the country-wide market acutely and directly affect, burden, and

obstruct interstate and foreign commerce. Abnormally excessive

supplies overtax the facilities of interstate and foreign transportation,

congest terminal markets and milling centers in the flow of wheat

from producers to consumers, depress the price of wheat in interstate

and foreign commerce, and otherwise disrupt the orderly marketing

of such commodity in such commerce. Abnormally deficient supplies

result in an inadequate flow of wheat and its products in interstate

and foreign commerce with consequent injurious effects to the instrumentalities of such commerce and with excessive increases in the prices

of wheat and its products in interstate and foreign commerce.

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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 45

such commodity exists are necessary in order to maintain an orderly

flow of wheat in interstate and foreign commerce under such conditions. (7U.S.C.1331)

PROCLAMATIONS OF SUPPLIES AND ALLOTMENTS

SEC. 332. Not later than May 15 of each calendar year the Secretary shall ascertain and proclaim the national acreage allotment for

the crop of wheat produced in the next succeeding calendar year.

(7 U.S. 0.1332)

NATIONAL ACREAGE ALLOTMENT

SEC. 333. The national acreage allotment for any croi> 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 fifty-five million acres. (7 U. S. G. 1333)

[PUBLIC LAW 117, 83d Congress—* * * SEC. 4. Notwithstanding

any other provision of law (a) the national acreage allotment for

the 1954 crop of wheat shall not be less than sixty-two million acres ;

and (b) the referendum with respect to the 1954 crop of wheat may

be held as late as August 15,1953.]

APPORTIONMENT OE NATIONAL ACREAGE ALLOTMENT

SEC. 334. (a) The national acreage allotment for wheat, less a reserve of not to exceed one per centum thereof for apportionment as

provided in this subsection, shall be apportioned by the Secretary

among the several States on the basis of the acreage seeded for the

production of wheat during the ten calendar years immediately preceding the calendar year in which the national acreage allotment is

determined ^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. The reserve acreage set aside herein for

apportionment hj the Secretary shall be used to make allotments to

counties, in addition to the county allotments made under subsection

(b) of this section, on the basis of the relative needs of counties for

additional allotment because of reclamation and other new areas coming into the production of wheat during the ten calendar years ending

with the calendar year in which the national acreage allotment is

proclaimed. (7U.S.C.1334 (a))

(b) The State acreage allotment for wheat, less a reserve of not to

exceed 3 per centum thereof for apportionment as provided in

subsection (c) of this section, shall be apportioned by the Secretary

among the counties in the State, on the basis of the acreage seeded

for the production of wheat during the ten calendar years immedi-
46 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

ately 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 in acreage during such period and for the promotion of soil-conservation

practices. (7 XT. 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 past acreage of wheat tillable acres, crop-rotation practices, type of soil, and topography. Not more than 3 per centum

o± the btate allotment shall be apportioned to farms on which wheat

has not been planted during any of the three marketing years imme-

^}^^^^yV^<^^dmg the marketing year in which the allotment is made.

(7 TJ. S. C. 1334 (c) )

[PUBLIC LAW 12, 79th 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 thatthe 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 1950 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) )

(e) ^ Notwithstanding any other provision of this Act, the Secretary

shall increase the farm marketing quotas and acreage allotments for

the 1956 crop of wheat for farms located in counties in the States of

North Dakota, Minnesota, Montana, South Dakota, and California,

designated by the Secretary as counties which (1) are capable of pro-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 47

ducing durum wheat (class II) and (2) have produced such wheat for

commercial food products during one or more of the five years 1951

through 1955. The increase in the wheat acreage allotment tor any

farm thall be conditioned upon the production of durum wheat (class

II) on such increased acreage. The increased allotment shall be determined by adding to the allotment established without regard to this

subsection (hereinafter referred to as the "original allotment ) an

acreage equal to two times the acreage by which the original allotment

exceeds the 1956 acreage on the farm of classes of wheat other than

durum wheat (class II) (hereinafter referred to as "other wheat ),

but such increased allotment shall not exceed the smaller o± the cropland on the farm well suited to wheat or the wheat acreage on the

farm- Provided^ That for the purposes of this subsection (1) the

original allotment for each farm shall be not less than fifteen acres

and (2) varieties of class II (durum wheat) known as "Golden Ball

and "Peliss" shall be regarded as "other wheat". Notwithstanding any

other provision of this subsection, no acreage allotment shall be increased under this subsection for any farm on which the producer

knowingly devotes to the production of other wheat an acreage m

excess of the acreage allotment established without regard to this

subsection (and particularly without regard to clause (1) of the foregoing proviso). T . 1 1 XT • 1. The increases in wheat acreage allotments authorized by this subsection shall be in addition to the National, State, and county wheat

acreage allotments, and the acreage of durum wheat (class II) on such

increased allotments shall not be considered in establishing future

State, county and farm acreage allotments.

The provisions of paragraph (6) of Public Law 74, Seventy-seventh

Congress (7 XJ. S. C. 1340 (6)), and section 326 (b) of this Act, relating to the reduction of the storage amount of wheat shall apply to the

allotment for the farm established without regard to this subsection

and not to the increased allotment under this subsection. (7 U. S. C.

(f) Any part of any 1955, 1956, or 1957 farm wheat acreage allotment on which wheat will not be planted and whi<îh is voluntarily surrendered to the county committee shall be deducted from the allotment

to such farm and may be reapportioned by the county committee to

other farms in the same county receiving allotments in amounts determined by the county committee to be fair and reasonable on the basis

of past acreage of wheat tillable acres, crop rotation practices, type of

soil, and topography. If all of the allotted acreage voluntarily surrendered is not needed in the county, the county committee may surrender the excess acreage to the State committee to be used for the same

purposes as the State acreage reserve under subsection (c) of this

section. Any allotment transferred under this provision shall be

regarded for the purposes of subsection (c) of this section as having

been planted on the farm from which transferred rather than on the

farm to which transferred, except that this shall not operate to make

the farm from which the allotment was transferred eligible for an

allotment as having wheat planted thereon during the three-year base

period : Provided^ That notwithstanding any other provisions of law,

any part of any 1955, 1956, or 1957 farm acreage allotment may be

permanently released in writing to the county committee by the owner
48 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

and operator of the farm, and reapportioned as provided herein.

Acreage surrendered, reapportioned under this subsection, and planted

shall be credited to the State and county in determining future acreage

allotments. (7U. S. C. 1334: (f))

(g) If the county committee determines that any producer is prevented from seeding wheat for harvest as grain in his usual planting

season because of unfavorable weather conditions, and the operator

of the farm notifies the county committee not later than December 1

in any area where only winter wheat is grown, or June 1 in the spring

wheat area (including an area where both spring and winter wheat are

grown), that he does not intend to seed his full wheat allotment for

the crop year because of the unfavorable weather conditions, the entire farm wheat allotment for such year shall be regarded as wheat

acreage for the purposes of establishing future State, county, and

farm acreage allotments: Provided^ That if any producer on a farm

obtains a reduction in the storage amount of any previous crop of

wheat by reason of underplanting the farm wheat acreage allotment

pursuant to paragraph (6) of Public Law 74, Seventy-seventh Congress (7 U. S. C. 1340 (6) ), or by reason of producing less than the

normal production of the farm wheat acreage allotment pursuant to

section 326 (b) of this Act, this provision may not be made applicable

to such farm with respect to the crop of wheat for which the farm

acreage allotment was established. (T U. S. C. 1334 (g) )

[PUBLIC LAW 690, 83d Congress.—* * * Notwithstanding any other

provision of law, in areas where a summer fallow crop rotation of

wheat is a common practice the 1955 wheat acreage allotment for any

farm on which such rotation was practiced with respect to the 1952

and 1953 crops of wheat shall not be less than 50 per centum of (1)

the average acreage planted for the production of wheat for the

calendar years 1952 and 1953 plus (2) the average of the acreage summer fallowed during the calendar year 1951 for the seeding of wheat

for 1952 and the acreage summer fallowed during the calendar year

of 1952 for the seeding of wheat for 1953, adjusted in the same ratio

as the national average seedings for the production of wheat during

the calendar years 1952 and 1953 bears to the national acreage allotment for wheat for the 1955 crop, taking into consideration the adjustments made for crop rotation practices pursuant to the regulations pertaining to farm acreage allotments for the 1955 crop of wheat

issued by the Secretary : Provided^ That, except for farms on which

at least 90 per centum of the acreage seeded for the production of

wheat for the calendar years 1952 and 1953 was seeded on land which

was summer fallowed during the years 1951 and 1952, respectively,

and for which a definite and regular alternate wheat and summer

fallow crop rotation practice has been determined under the aforesaid regulations, the acreage determined under this section to which

the national adjustment factor is applied shall not exceed 50 per

centum of the cropland on the farm well suited for the production of

wheat : Provided fv/rther^ That no acreage shall be included under

(1) or (2) which the Secretarjr, by appropriate regulations, determines will become an undue erosion hazard under continued farming :

Provided further^ That the acreage determined under this section to

which the national adjustment factor is applied shall not exceed six
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 49

hundred and forty acres, with the acres in excess of six hundred and

forty acres, if any, to be adjusted by the adjustment factor for the

county. To the extent that the allotment to 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. (7 Ü. S. C. 1334a)3

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 centum ; 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 May 15 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

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. (7U. 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 which 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

412526—57 5
50 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 XJ. S. O. 1335 (c))

ÇPuBLio LAW 74, 77th 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 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 on wheat shall be 45 per

centum of the parity price per bushel of wheat as of May 1 of the

calendar year in which the crop is harvested.

(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

penalty or of storage, it is shown to the satisfaction of the Secretary

that the 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»

6 Sec. 313 of Public Law 690, 83d Cong., provides that this law shall no longer be applicable to corn.
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 51

(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 com or wheat shall not be applicable to any farm on which the acreage planted to the commodity is not

in excess of fifteen 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 fifteen acres

or the acreage allotment for the farm, whichever is larger. Itthe acreage of the commodity harvested on any such nonallotment farm is in

excess of fifteen 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 fifteen 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

for home consumption without reducing the payment with respect to

the farm under the then current agricultural conservation program :

Promded further^ That 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.

(9) (Not applicable to wheat.)
52 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

(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 Secretarj^. 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

less than two hundred bushels. (7 U. S. C. 1335 (d) )

(e) If, for any marketing year, the acreage allotment for wheat

for any State is twenty-five thousand acres or less, the Secretary, in

order to promote eiScient administration of this Act and the Agricultural Act of 1949, may designate such State as outside the commercial

wheat-producing area for such marketing year. No farm marketing

quota or acreage allotment with respect to wheat under this title

shall be applicable in such marketing year to any farm in any State

so designated; and no acreage allotment in any other State shall be

increased by reason of such designation. Notice of any such designation shall be published in the Federal Register. (T TJ. S. C. 1335 (e) )

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. (7U.S.C. 1336)

ADJUSTMENT AND SUSPENSION OF QUOTA

SEC. 337. (a) If the total supply as proclaimed by the Secretary

within forty-five days after the beginning of the marketing year is less

' The last date for holding the referendum on the 1954 crop was extended to August 15,

1953, by sec. 4 of Public Law 117, 83d Cong,
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 53

than that specified in the proclamation by the Secretary under section

335 (a), then the national marketing quota specified m the proclamation under such section shall be increased accordingly. (7 U. b. O.

1SS7 (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 oí

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. (7U. S. C.1338)

PENALTIES

SEC. 339. (Eepealedby 67 Stat. 151)

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. . i. •

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 m interstate and foreign commerce and cause disparity in prices of cotton and

industrial products moving in interstate and foreign commerce with

consequent diminution of the volume of such commerce in industrial

products.

The conditions affecting the production and marketing of cotton are

such that, without Federal assistance, farmers, individually or in

cooperation, cannot effectively prevent the recurrence of excessive

supplies of cotton and fluctuations in supplies, cannot prevent indiscriminate dumping of excessive supplies on the Nation-wide and
54 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

foreign markets, cannot maintain normal carry-overs of cotton, and

cannot provide for the orderly marketing of cotton in interstate and

roreign commerce.

It IS in the interest of the general welfare thatinterstate and foreign

commerce m cotton be protected from the burdens caused by the

marketmg of excessive supplies of cotton in such commerce, that a

supply of cotton be mamtamed 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.

(7 U. ib. G. 1341)

NATIONAL MARKETING QUOTA

SEC. 342. Whenever during any calendar year the Secretary determines thatthe total supply of cotton for the marketing year beginning

m 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 m effect for the crop of cotton produced in the next

calendar year. The Secretary shall also determine and specify in such

proclamation the amount of the national marketing quota in terms of

the number of bales of cotton (standard bales of five hundred pounds

gross weight) adequate, together with (1) the estimated carry-over at

the beginning of the marketing year which begins in the next calendar

year and (2) the estimated imports during such marketing year, to

make available a normal supply of cotton. The national marketing

quota for any year shall be not less than ten million bales or one 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 : Pro^ided^ That the national

marketing quota for 1950 shall be not less than the number of bales

required to provide a national acreage allotment of twenty-one million

acres. Such proclamation shall be made not later than October 15 of

the calendar year in which such determination is made. Notwithstanding the foregoing provisions of this section, the national marketing

quota for cotton for 1957 and 1958 shall be not less than the number

of bales required to provide a national acreage allotment for 1957 and

1958 equal to the national acreage allotment for 1956 : Provided^ That

if the acreage allotment for any State for 1957 or 1958 is less than its

allotment for the preceding year by more than 1 per centum, such State

allotment shall be increased so that the reduction shall not exceed 1

per centum per annum, and the acreage required for such increase shall

be in addition to the national acreage allotment for such year. Additional acreage apportioned to a State for 1957 or 1958 under the foregoing proviso shall not be taken into account in establishing: future

State allotments. (7 U. S. C. 1342)
AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 55

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 in the calendar year in which the referendum is held, to determine whether such farmers are in favor of or

opposed to the quota so proclaimed: Promded, That if marketing

quotas are proclaimed for the 1950 crop, farmers eligible to vote m 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 withm thirty

days after the date of such referendum. (7 U. S. C. 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 five yearsimmediately 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 five calendar years immediately preceding

the calendar year in which the national marketing quota is proclaimed,

with adjustments for abnormal weather conditions during such period :

Promded^ 2 hat there is herehy established a national acreage reserve

consisting of one hundred thousand acres which shall he in addition to

the national acreage allotment; and such reserve shall he apportioned

to the States on the hasis of their needs for additional acreage for estahlishing mininmm farm allotments vmder suhsection (/) (1), as determined hy the Secretary without regard to State and county acreage

reserves {except that the amount apportioned to Nevada shall he one

thousand acres), and the additional acreage so apportioned to the State

shall he apportioned to the counties on the same hasis and added to the

county acreage allotment for apportionment to farms pursuant to subsection (/) of this section {except that no part of such additional

acreage shall he used to increase the county reserve above 15 per

centum of the county allotment determined without regard to such

additional acreage). Additional acreage apportioned to a State for

any year under the foregoing proviso shall not he taken into account

in establishing future State acreage allotments. Needs for additional

acreage under the foregoing proviso and under the last proviso in subsection (e) shall he determined as though allotments were first com-
56 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

futed without regard to subsection (/) (i). [The portion in italics is

effective only with respect to the 1957 and 1958 crops.] (7 U. S. C.

1344(b))

ic) (Applicable only to the 1950 and 1951 crops of cotton.)

(d) (Applicable only to the 1952 crop of cotton.)

(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 one million acres and less than

half its 1943 allotment) which shall be used to make adjustments in

county allotments for trends in acreage, for counties adversely affected

by abnormal conditions affecting plantings, or for small or new farms,

or to correct inequities in farm allotments and to prevent hardship :

Provided further^ That if the additional acreage cdlocated to a State

under the proviso in subsection (&) is less than the requirements as

determined hy the Secretary for establishing mAnimmn farm> allotments for the State under subsection (/) (i), the acreage reserved

by the State com/mittee u/nder this subsection shall not be less tha/n the

smcdler of (1) the remmning acreage so determjmed to be required for

establishing minimum farm, allotments or (ß) 3 per centum of the

State acreage allotment; and the acreage which the State com/ndttee

is required to reserve under this proviso shall be allocated to counties

on^ the basis of their needs for additional acreage for establishing

mim^immn farm allotments under subsection (/) (i), and added to

the cou/nty acreage allotment for apportionment to farms pursua/nt

to subsection (/) of this section {except that no part of such additional acreage shall be used to increase the cou/nty reserve above 15

per centunh of the cou/nty allotment determined voithout regard to

such additional acreages), [The portion in italics is effective only

with respect to the 1950 and 1958 crops.] (7 U. 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 one of the three years immediately preceding the

year for which such allotment is determined on the following basis:

{1) Insofar as such acreage is available^ there shall be allotted the

smaller of the following: {A) four acres; or (B) the highest number

of acres planted to cotton in any year of such three-yea/r period,

[The portion in italics is effective only with respect to the 1957 and

1958 crops.]

(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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 57

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, Seventy-ninth Congress) to cotton during any of the preceding

three years, the acreage allotment for such farm shall not exceed such

largest acreage so planted (and regarded as planted under Public

Law 12, Seventy-ninth Congress) in any such year.

(3) The county committee may reserve not in excess of 15 per

centum of the comity allotment * * * which, in addition to tha

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, Seventyninth Congress) during any of the three calendar years immediately

preceding the year for which the allotment is made, on the basis of

land, labor, and equipment available for the production of cotton,

crop-rotation practices, and the soil and other physical facilities affecting the production of cotton; and (B) making adjustments of the

farm acreage allotments established under paragraphs (1) and (2)

of this subsection so as to establish allotments which are fair and

reasonable in relation to the factors set forth in this i)aragraph and

abnormal conditions of production on such farms, or in makmg adjustments in farm acreage allotments to correct inequities and to prevent hardships: 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 fifteen acres may be made under other provisions of this subsection.

(4) Any part of the acreage allotted for 1950 to individual farms

in any county under the provisions of this section which will not be

planted to cotton and which is voluntarily surrendered to the county

committee shall be deducted from the allotments to such farms and

may be reapportioned by the county committee to other farms in the

same county receiving allotments to the extent necessary to provide

such farms with the allotments authorized under paragraph (5) of

this subsection. If any acreage remains after providing such^ allotments, it may be apportioned in amounts determined by the county

committee to be fair and reasonable to other farms in the same county

receiving allotments which the county committee determines are inadequate and not representative in view of their past production of cotton

and to new farms in such county. No allotment shall be made, or

increased, by reason of this paragraph to an acreage in excess of 40

per centum of the acreage on the farm which is tilled annually or in

regular rotation, as determined under regulations prescribed by the

Secretary. Any transfer of allotment under this paragraph shall not

operate to reduce the allotment for any subsequent year for the farm

from which acreage is transferred, except in accordance with para-
58 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

graph (1) (B) and the proviso in paragraph (2) of this subsectioiji :

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 paragraj)h and

reallocated pursuant to applications filed in accordance with tliè

provisions of paragraph (5) of this section shall be credited to the

State and county in determining acreage allotments.

(5) Notwithstanding any other provision of law and without reducing any farm acreage allotment determined pursuant to the foregoing

provisions of this subsection, each farm acreage allotment for 1950

shall be increased by such amount as may be necessary to provide an

allotment equal to the larger of 65 per centum of the average acreage

planted to cotton (or regarded as planted to cotton under the provisions of Public Law 12, Seventy-ninth Congress) on the farm in 1946,

1947, and 1948, or 45 per centum of the highest acreage planted to

cotton (or regarded as planted to cotton under Public Law 12, Seventyninth Congress) on the farm in any one of such three yeais; 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 aiiy 1950 farm

acreage allotment shall be made pursuant to this paragraph only upon

application in writing by the owner or operator of the farm within

such reasonable period of time (in no event less than fifteen days)

as may be prescribed by the Secretary. The additional acreage required to be allotted to farms under this paragraph shall be in addition

to the county, State, and national acreage allotments and the production from such acreage shall be in addition to the national marketing

quota. The additional acreage authorized by this paragraph shall

not be taken into account in establishing future State, county, and

farm acreage allotments.

(6) Notwithstanding the provisions of paragraph {2) of this suJ)-

section^ if the county committee recommends such action and the Secretary determines that such action will result in a niore equitable

distribution of the county allotment among farms in the county^ the

remainder of the county acreage allotment (after 'tnahÍ7ig allotments

as provided in paragraph (1) of this subsection) shall be allotted to

farms other than farms to which an allotment has been made under

paragraph (i) {B) of this subsection so that the allotment to each

farm under this paragraph together with the amount of the allotment

of such farm under paragraph (1) (A) of this subsection shall be a

prescribed percentage (which percentage shall be the same for all such

farms in the county) of the average acreage planted to cotton on the

farm during the three years immediately preceding the year for which

such allotment is determined^ adjusted as may be necessary for abnormal conditions affecting plantings duHng su^h three-year period:

Provided^ That the county committee may in its discretio7i limit any

farm acreage allotment established under the provisions of this paragraph for any year to an acreage not m excess of 60 per centum of the

cropland on the farm^ as determined pursuant to the provisions of

paragraphic) of this subsection: Provided further^ That any part of
AGRICULTUKAL ADJUSTMENT ACT OF 1938, AS AMENDED 59

the county acreage allotment not apportioned under this paragraph ly_

reason of the initial application of such Super centum limitation shall

he added to the county acreage reserve under paragraph (S) of thw

sulsection and shall le available for the purpose specified therein.

If the county acreage allotment is apportioned among the tarms oí

the county in accordance with the provisions of this paragraph, the

acreage reserved under paragraph (3) of this subsection may be used

to make adjustments so as to establish allotments which are tair and

reasonable to farms receiving allotments under this paragraph m

relation to the factors set forth in paragraph (3). [The portion m

italics is effective only with respect to the 1957 and 1958 crops.J

(7U. S. C. 13M (f))

TPuBLio LAW 540, Séth Congress.—For the 1956 crop, an acreage

in each State equal to the acreage allotted in such State which the

Secretary determines will not be planted, placed in the acreage reserve

or conservation reserA^e, or considered as planted under section 377

of the Agricultural Adjustment Act of 1938, as amended, may be

apportioned by the Secretary among farms in such State having allotments of less than the smaller of the following: (1) four acres, or

(2) the highest number of acres planted to cotton in any of the years

1953, 1954, and 1955. (May 28, 1956, 70 Stat. 188).]

(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, including

types, kinds, and productivity of the soil so as to prevent discrimination among the administrative areas of the county.

(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 one 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 Ü. S. C. 1344 (g) )

[PUBLIC LAW 28, 81st 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.

(7U.S.C. 1344a)3

(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 agriculturarproduction
60 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 : Promded^ That no allotment shall be established for any such farm unless application therefor

is filed within three years after acquisition of such farm by the applicant or within three years after the enactment of this Act, whichever

period is longer : And 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 into 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. In any county in which a major

flood-control reservoir constructed by the United States Government

shall have been located wholly or in part, acreage allotments for the

production of cotton on the lands within such reservoir, which lands,

because of permanent or perennial flooding occasioned by the construction of such reservoir, shall be unfit for further cotton production,

may be reallocated, within the discretion of the county committee,

to other lands within the county as will in the opinion of said committee best serve the public interest. (7 U. 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. (7U. 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

U.S.ai344(j))

(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)

four thousand acres or (B) the highest acreage planted to cotton in

any one of the three calendar years immediately preceding the year for

which the allotment is made. (7 U. S. C. 1344 (k) )

(1) (This subsection relating to war crops under Public Law 12,

Seventy-ninth Congress, does not apply to the 1955 and succeeding

crops of cotton.) (7 U. S. 0.1344 (1) )

im) Notwithstanding any other provision of law—

(1) The national acreage allotment established under subsection

(a) of this section for the 1954 crop of cotton shall be increased to

twenty-one million acres and apportioned to the States in the same

manner in which the national acreage allotment heretofore established
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 61

for 1954 was apportioned to the States. In addition to such increased

national acreage allotment, and in order to provide equitable adjustments in 1954 farm acreage allotments, (A) three hundred and fifteen

thousand additional acres shall be prorated as follows: one-half to the

States of Arizona, California, and New Mexico, and one-half to the

other States (excluding those Avhich received a minimum allotment

under subsection (k) of this section), the proration of each half being

made to the States participating therein on the basis of their respective shares of the increased national acreage allotment, and (B) such

additional acreage shall be added as may be required to provide each

State a total allotment under subsection (b) of this section and the

provisions of this paragraph of not less than 66 per centum of the

acreage planted to cotton in the State in 1952. The additional acreage made available to States under clause (B) of the preceding sentence shall not be taken into account in establishing future State

acreage allotments. The additional acreage made available to States

under the provisions of this paragraph (1) shall be apportioned to

counties on the basis of their respective shares of the State acreage

allotment heretofore apportioned pursuant to subsection (e) of this

section, and the additional acreage shall be apportioned to farms pursuant to the provisions of subsection (f) of this section: Provided^

That, if the county committee determines that such action will result

in a more equitable distribution of the additional county allotment

among farms in the county, the additional acreage shall be apportioned by the county committee to farms so as to provide each farm

with an allotment equal to the larger of 65 per centum of the average

acreage planted to cotton on the farm in 1951, 1952, and 1953 (as determined by the county committee in establishing allotments under

subsection (f) of this section) or 40 per centum of the highest acreage

planted to cotton on the farm in any one of such three years as so

determined : Provided^ That the State committee in each State shall

limit such increase based on the system of farming, soil, crop-rotation

practices, and other physical factors affecting production in such

State, to an acreage not in excess of 50 per centum of the cropland on

the farm, as determined under regulations heretofore prescribed by

the Secretary. If the additional acreage is insufficient to meet the

total of the farm increases so computed, such farm increases shall be

reduced pro rata to the additional acreage available to the county ; if

the additional acreage available to the county is in excess of the total

of the farm increases so computed the acreage remaining after making

such increases shall be allotted to farms pursuant to the provisions of

subsection (f) (3). Ñotwithtanding the foregoing provisions of this

paragraph, if the State committee determines that such action will result in a more equitable distribution of the additional acreage made

available to the State under this paragraph (1) it shall apportion such

additional allotment directly to farms so as to provide each farm

with an allotment equal to the larger of 65 per centum of the average

acreage planted to cotton on the farm in 1951, 1952, and 1953 (as determined by the county committee in establishing allotments under

subsection (f) of this section) or 40 per centum of the highest acreage

planted to cotton on the farm in any one of such three years as so determined: Provided^ That the State committee in each State shall

limit such increase based on the system of farming, soil, crop-rotation
62 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

practices, and other phj^sical factors affecting production in such

State, to an acreage not in excess of 50 per centum of the cropland

on the farm, as determined under regulations heretofore prescribed

by the Secretary : Provided^ That if the State total of the farm increases so computed exceeds the additional acreage made available to

the State under this paragraph, such farm increases shall be reduced

pro rata to the additional acreage available to the State. Any acreage

unallotted to farms because of the limitations contained in the preceding sentence shall be apportioned by the State committee to counties

on the basis of past acreages planted to cotton and shall be used by

county committees for adjustments in farm allotments on the basis

of one or more of the following : The past acreage of cotton on the

farm, the percentage of cropland heretofore determined under subsection (f) (2) of this section, and the factors enumerated in subsection

(f) (3) of this section. Before apportioning such unallotted acreage

to counties as provided in the foregoing sentence, the State committee

may, if it determines that such action is required to provide equitable

allotments within the State, apportion such unallotted acreage directly

to farms to the extent required to provide each farm with the minimum

allotment described in subsection (f) (1) of this section. Any part

of the county allotment heretofore established for the 1954 crop which

was not apportioned to farms because of the limitation contained in

the proviso in subsection (f) (2) of this section shall be available to

the State committee and used as provided above for apportionment

of unallotted acreage to farms. The provisions of this subsection, except paragraph (2), shall not apply to extra long staple cotton covered

by section 347 of this Act.

(2) Any part of any farm cotton acreage allotment on which cotton will not be planted and which is voluntarily surrendered to the

county committee shall be deducted from the allotment to such farm

and may be reapportioned by the county committee to other farms

in the same county receiving allotmeiits in amounts determined by

the county committee to be fair and reasonable on the basis of past

acreage of cotton, land, labor, equipment available for the production

of cotton, crop rotation practices, and soil and other physical facilities

affecting the production of cotton. If all of the allotted acreage voluntarily surrendered is not needed in the county, the county committee may surrender the excess acreage to the State committee to be

used for the same purposes as the State acreage reserve under subsection (e) of this section. Any allotment transferred under this

provision shall be regarded for the purposes of subsection (f) of this

section as having been planted on the farm from which transferred

rather than on the farm to which transferred, except that this shall

not operate to make the farm from which the allotment was transferred eligible for an allotment as having cotton planted thereon during the three-year base period : Provided^ That notwithstanding any

other provisions of law, any part of any farm acreage allotment may

be permanently released in writing to the county committee by the

owner and operator of the farm, and reapportioned as provided

herein. Acreage surrendered, reapportioned under this paragraph,

and planted shall be credited to the State and county in determining

future acreage allotments. The provisions of this paragraph shall

apply also to extra long staple cotton covered by section 347 of this

Act.
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 63

(3) Notwithstanding any other provision of this section or other

provision of law, the acreage allotted to any State for 1954 under the

provisions of subsection (b) of this section and the provisions of paraOTaph (1) of this subsection which is less than one hundred thousand

acres but more than thirty thousand acres shall be increased by an

acreage equal to 15 per centum of the acreage allotted to it prior to

the enactment of this subsection. Such acreage shall be used by the

State committee as a reserve to make equitable adjustments m 1954:

farm acreage allotments on the basis of land, labor, equipment available for the production of cotton, crop-rotation practices, past acreages of cotton, soil, and other physical factors affecting the production

of cotton. (7 U. S. C. 1344 (m) )

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

such actual production to the satisfaction of the Secretary. (7

Ü. 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 m

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 U. 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 the Part shall not apply to extra long staple cotton which
64 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

is produced from pure strain varieties of the Barbadense species, or

and 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. 0. 1347 (a) )

(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 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 marketing quota for cotton described in subsection (a) for any year shall

not be less than the larger of thirty thousand 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) )

(c) All provisions of this Act, except section 342, subsection (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, açply to marketing quotas and acreage allotments authorized by

this section : Provided^ That the 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. (7 U. S. C. 1347 (c) )

(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 one and one-half inches or more in

length. (7U.S.C. 1347 (d))

(e) The exemptions authorized by subsections (a) and (d) of this

section shall not apply unless (1) the cotton is ginned on a roller-type

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. (7 17. S. C. 1347 (e))

INELIGIBILITY FOR PAYMENTS

SEO. 348. Eepealed by Public Law 42, 84th Congress, (69 Stat. 65)

PART V—^MARKETING QUOTAS—^RICE

LEGISLATIVE TTISTDING

SEC. 351. (a) The marketing of rice constitutes one of the great

basic industries of the United States with ramifying activities which
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 65

directly affect interstate and foreign commerce at every point, and

stable conditions therein are necessary to the general welfare. Eice

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, 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 TJ. 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 3^ear, to make available a supply for the marketing

year commencing in such calendar year not less than the normal supply : Provided^ however^ That for 1956 no national acreage allotment

shall be established which is less than 85 per centum of the final allotment established for the immediately preceding year. Such national

acreage allotment shall be proclaimed not later than December 31 of

each year. (7 U. S. C. 1352)

APPORTIONMENT OF NATIONAL ACREAGE ALLOTMENT

SEO. 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

412526—57- 6
66 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 five-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

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 one-half 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 U. 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 in the

State by the producer on the farm taking into consideration the acreage allotments previously established in the State 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. ISTot 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 five 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 five 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 pre-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 67

viously 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 tlie 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;

(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.

In determining the past production of rice by producers on a

farm for the purpose of establishing farm acreage allotments for

the 1956 and subsequent crops, the acreage of rice on the farm for

any year for which farm acreage allotments were in effect shall be

divided among the producers thereon in the proportion in which

they contributed to the farm acreage allotment.

(3) Each of the State acreage allotments for 1955 heretofore

proclaimed by the Secretary shall be increased by 2 per centum

or by such greater acreage as may be necessary to provide such

State with an allotment equal to its 1950 allotment. In any State

having county acreage allotments for 1955 (i) the increase in

the State allotment shall be apportioned among counties in the

State on the same basis as the State allotment was heretofore

apportioned among the counties, but without regard to adjustments for trends in acreage, and (ii) the 1955 allotment for any

county in which the 1950-1954 average planted plus diverted

acreage of rice, adjusted for trends in acreage, exceeds the 1945-

1949 average planted acreage of rice, similarly adjusted, by more

than 2 per centum shall then be further increased by such additional acreage as may be necessary to provide such county with

an allotment equal to its 1950 allotment. The increases in the

county acreage allotments and the increases in the State allotments, where county allotments are not determined, shall be used

to establish farm acreage allotments which are fair and reasonable

in relation, to the applicable allotment factors specified in subsection (b) of this section and to correct inequities and prevent

hardships.

(4) The reserve acreage made available for 1955 in any State

for apportionment to farms operated by persons who have not

produced rice during the preceding five years or on which rice

has not been planted in the preceding five years shall not be less

than five hundred acres; and the additional acreage necessary

to provide such minimum reserve acreages shall be in addition

to the National and State acreage allotments.

(5) Each of the State acreage allotments for 1956 heretofore

proclaimed by the Secretary, after adding thereto any acreage

apportioned to farms in the State from the reserve acreage set

aside pursuant to subsection (a) of this section, shall be increased

by such amount as may be necessary to provide such State with
68 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

an allotment of not less than 85 per; centum of its final allotment

established for 1955. Any additional acreage required to provide such minimum allotment shall be additional to the national

acreage allotment. In any State having county acreage allotments for 1956, the increase in the State allotment shall be apportioned among counties in the State on the same basis as the State

allotment was heretofore apportioned among the counties, but

without regard to adjustments for trends in acreage.

(6) The national acreage allotments of rice for 1957 and 1958

shall be not less than the national acreage allotment for 1956,

including any acreage allotted under paragraph (5) of this subsection, and such national allotments for 195? and 1958 shall be

apportioned among the States in the same proportion that they

shared in the total acreage allotted in 1956. (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 U. S. C. 1353 (d) )

. (e) Any part of the farm rice acreage allotment on which rice will

not be planted and which is voluntarily surrendered to the county

committee shall be deducted from the allotment to such farm and may

be reapportioned by the countj 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 the past production

of rice by the producers on the farm or the past production of rice on

the farm, as the case may be; acreage allotments previously established

for the farm or for the producers on the farm, as the case may be ;

abnormal conditions affecting acreage; land, labor, water, and equipment available for the production of rice; crop-rotation practices;

and the soil and other physical factors affecting the production of rice.

Any allotment surrendered under this provision shall be regarded for

the purposes of subsection (b) of this section as having been planted on

the farm from which surrendered, except that this shall not operate to

make the farm from which the allotment was surrendered eligible for

an allotment as having rice planted thereon, or to make any producer

thereon eligible for an allotment as having produced rice, during the

five-year base period. (7 Ü. S. C. 1353 (e) )

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 that 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 thirty 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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 69

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 than 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 XJ. 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 betwen the amount of the

penalty computed upon the farm marketing excess before such adjustment 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 U. S. 0. 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 marketed by the producer shall be subject to the penalty provided

by this section and a lien on the entire croc 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 ayoided 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
70 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 pursuant to 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 IT. S. C.

1356(g))

PART VI MARKETING QUOTAS—^PEANUTS

LEGISLAITVE FINDINGS

SEC. 357. The production, marketing, and processing of peanuts

and peanut products employs a large number of persons and is of

Rational 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 i)roducing 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 marketed 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, it is imperative that the market-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 71

ing 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

SEO. 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 five 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 five years

preceding the year in which the quota is proclaimed, with such adjustments as may be found necessary to correct for trends in yields a^nd

for abnormal conditions of production affecting yields in such five

years : Provided^ Thatthe 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

one million six hundred and ten thousand acres, and that the national

marketing quota established for any subsequent year shall be a quantity of peanuts suiEcient to provide a national acreage allotment of not

lees than that established for the crop produced in the calendar vear

IMl. (7U.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

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 thirty 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 two million one hundred thousand acres, or (b) the State's share of two million one
72 AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED

hundred thousand acres apportioned to States on the basis of the

average acreage harvested for nuts in each State in the five 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) JSTotwithstanding 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 preceding five years, adjusted for

trends in yields and abnormal conditions of production affecting

yields in such five 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 three 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

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 three 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;

crop-rotation 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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 73

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) ) «

(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 five 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

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))

(f) Not more than one 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 three

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(f))

(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 three-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,

8 Sec. 2 of Public Law 17, 82d Cong. (65 Stat. 29), amended this subsection by "changing

the second sentence * * *." Sec. 1358 (d) of Title 7, U. S. Code, 1952 ed,, carries only

the amended second sentence. The complete subsection is given above.
74: AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 five 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: Promded, 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

identification of peanuts produced on or marketed from such farm.

(T U. 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 75 per

centum of the support price for peanuts for the markeing 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

thé 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,

in accordance with regulations prescribed by the Secretary, to be

penalties 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 cal-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 75

endar 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

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. (7XJ.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 U. S. C. 1359 (c) )

(d) The person liable for payment or collection of the penalty provided by this section shall be liable also for interest thereon at the rate

of 6 per centum per annum from the date the penalty becomes due

until the date of payment of such penalty. (7 U. S. C. 1359 (d) )

(e) Until the amount of the penalty provided by this section is

paid, a lien on the crop of peanuts with respect to which such penalty

is incurred, and on any subsequent crop of peanuts subject to marketing quotas in which the person liable for payment of the penalty has an

interest shall be in effect in favor of the United States. (7 XJ. S. C.

1359 (e))

[Subsections (f), (g), (h), and (i) of this section were repealed

by Public Law 285, Eighty-second Congress, approved March 28,1952

(ßß 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 de-

» Repeal of these subsections shall not affect rights or obligations arising under marketing-quota or price-support operations with respect to 1951 or prior crops of peanuts.

(66 Stat. 27).
76 AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED

signed to establish new uses for peanuts and peanut products or expand markets for peanuts and peanuts products.

(g) If the total acreage of peanuts picked or threshed on the

farm does not exceed the total acreage of peanuts picked or threshed

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 (ii) 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

price 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

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

agencies or selling such peanuts to approved peanut buyers, and such

sales to approved buyers shall have the same effect, with respect to

avoidance of the marketing penalty aiid 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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 77

not more than $1,000 or imprisoned for not more than one year, or

both, for each and every offense. Operations under this subsection

shall be carried on under regulations prescribed by the Secretary.

(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.

(i) The jjrovisions 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.]

SUBTITLE C—ADMINISTRATIVE PROVISIONS

PART I—^PUBLICATION AND REVIEW OF QUOTAS

APPLICATION OF PART

SEC. 361. This Part shall apply to the publication and review of

farm marketing quotas established for tobacco, com, wheat, cotton,

peanuts, and rice, established under subtitle B. (7 U. S. C. 1361)

PUBLICATION AlSfD NOTICE OF QUOTA

SEC. 362. All acreage allotments, and the farm marketing quotas

established for farms in a countj^ or other local administrative area

shall, in accordance with regulations of the Secretary, be made and

kept freely available for public inspection in such county or other

local administrative area. An additional copy of this information

shall be kept available in the office of the county agricultural extension

agent or with the chairman of the local committee. Notice of the

farm marketing quota of his farm shall be mailed to the farmer.

Notice of the farm acreage allotment established for each farm shown

by the records of the county committee to be entitled to such allotment shall insofar as practicable be mailed to the farm operator in

sufficient time to be received prior to the date of the referendum.

(7 U. S. C. 1362)

REVIEW BY REVIEW COMMITTEE

SEC. 363. Any farmer who is dissatisfied with his farm marketing

quota may, within fifteen days after mailing to him of notice as provided in section 362, have such quota reviewed by a local review committee composed of three farmers from the same or nearby counties

appointed by the Secretary. Such committee shall not include any

member of the local committee which determined the farm acreage

allotment, the normal yield, or the farm marketing quota for such

jfarm. Unless application for review is made within such period, the

original determination of the farm marketing quota shall be final.

(7 U.S. 0.1363)
78 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 the Soil

Conservatipn and Domestic Allotment Act, as amended. The members of the review committee shall not be entitled to receive compensation for more than thirty days in any one year. (7 U. S. C. 136Í)

INSTITUTION OF PROCEEDINGS

SEC. 365. If the farmer is dissatisfied with the determination of the

review committee, he may, within fifteen days after a notice of such

determination is mailed to him by registered mail, file a bill in equity

against thé 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.

(7Ü.S.C.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

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 committee pursuant to direction of the

court. The court shall affirm the review committee's determination,

or modified determination, if the court determines that the same is in

accordance with law. If the court determines thatsuch 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 Ü. S. C. 1366)
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 79

STAY OF PROCEEDINGS AND EXCLUSIVE JURISDICTION

SEO. 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 Fart shall be exclusive. No court of the United

States or of any State shall have jurisdiction to pass upon the legal

validity of any such determination except in a proceeding under this

Part. (7U.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 thereoi

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 toba.cco 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 inmiediate investigation to be made with

respect thereto. In the course of such investigation due notice and

opportunity for hearing shall be given to interested persons. If upon

the basis of such investigation the Secretary finds the existence of such

fact, he shall proclaim the same forthwith. He shall also in such

proclamation specify such increa.se 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 TJ. S. 0.1371 (a))

(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 acreage allotment for corn or aaiy national marketing

quota or acreage allotment for wheat, cotton, rice, peanuts, or tobacco

should be increased or terminated, he shall cause an immedia,te investigation to be made to determine whether the increase or termination

is necessary in order to effect 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 or allotme^t shall be

increased, orshall terminate, as the case may be. (7 Ü. S. C. 1371 (b) )

(c) In case any national marketing quota or acreage allotment for

any commodity is increased under this section, each farm marketing

quota or acreage allotment for the commodity shall be increased in the

same ratio. (7 U. S. C. 1371 (c) )

(d) (Eepealed by 68 Stat. 905.)
80 AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED

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 U.S.C. 1372(b)) _ ,, , .,^ ,^ ^ , .,,.

(c) Whenever, pursuant to a claim filed with the Secretary within

two years after payment to him of any penalty collected from any

person pursuant to this Act, the Secretary finds that such penalty was

erroneously, illegally, or wrongfully collected and that 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

The Secretary is authorized to prescribe regulations governing the

filing of such claims and the determination of such refunds. (7

U S C 1372 fc) )

(d) Ño penalty shall 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.

t7 U.S.C. 1372(d))

REPORTS AND RECORDS

SEC. 373. (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 redrymg, prizing, or

stemming tobacco for producers, all brokers and dealers m 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-threshmg 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
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 81

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 deakr 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 may 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

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 OE EARMS 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 IT. 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

41252Ô—57—7
82 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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. (7 XJ. S. 0.1374 (b) )

(c) Ifthe acreage determined to be planted to any basic agricultural

commodity on the farm is in excess of the farm acreage allotment, the

Secretary shall by appropriate regulations provide for a reasonable

time prior to harvest within which such planted acreage may be

adjusted to the farm acreage allotment. (7 U. S. C. 1374 (c) )

REOULATIONS

SEC. 375. (a) The Secretary shall provide by regulations iot 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 IJ. 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 tlie

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)

PRESERVATION OF UNUSED ACREAGE ALLOTMENTS

SEC. 377. In any case in which, during any year within the period

1956 to 1959, inclusive, for which acreage planted to such commodity

on any farm is less than the acreage allotment for such farm, the

entire acreage allotment for such farm shall be considered for purposes of future State, county, and farm acreage allotments to have

been planted to such commodity in such year, but only if the owner or

operator of such farm notifies the county committee prior to the

sixtieth day preceding the beginning of the marketing year for such

commodity of his desire to preserve such allotment. This section

shall not be applicable in any case in Avhich the amount of the commodity required to be stored to postpone or avoid payment of penalty

has been reduced because the allotment was not fully planted. Nothing herein shall be construed to permit the allotment to any other

farm of the acreage with respect to which notice is given under this

section. (7U.S.0.1377)

SUBTITLE D—RICE CERTIFICATES

LEGISLATIVE FINDINGS

SEC. 380a. The movement of rice from producer to consumer is preponderantly in interstate and foreign commerce, and the small quan-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 83

tity of rice which does not move in interstate or foreign commerce affects such commerce. In order to provide an adequate and balanced

flow of rice in interstate and foreign commece and to assure consumers

an adequate and steady supply of rice at fair prices it is necessary

to regulate all commerce in rice in the manner provided in this subtitle.

These findings are supplemental to and in addition to the findings

contained in section 351 of this Act. (7 U. S. C. 1380a)

EFFECTIVE DATE AND TERMINATION

SEC. 380b. Sections 380c through 380g (c) shall be effective beginning with the first crop of rice, subsequent to the 1956 crop and prior

to the 1959 crop, for which the Secretary determines and proclaims

thatthe initiation of a program under this subtitle is administratively

feasible and in the best interests of rice producers and the United

States. Unless extended by law, the provisions of this subtitle shall

not apply to rice of any crop following the second crop for which a

program is in effect under sections 380c and 380g (c). (7 U. S. 0.

1380b)

RICE PRIMARY MARKET QUOTA

SEC. 380C. Not later than December 31 of each year, the Secretary

shall determine and proclaim the primary market quota for rice for

the marketing year beginning in the next calendar year. The j)rimary

market quota shall be the number of hundredweights of rice (on

a rough rice basis) which the Secretary determines will be consumed in

the United States (including its Territories and possessions and the

Commonwealth of Puerto Eico) or exported to Cuba, during such

marketing year. In making this determination the Secretary shall

consider the historical consumption in these markets of rice produced

in the United States and any expected enlargement in such consumption predicated upon population trends, increased per capita consumption, and other relevant factors. (7 U. S. C. 1380c)

APPORTIONMENT OF PRIMARY MARKET QUOTA

SEC. 380d. (a) The primary market quota for rice shall be apportioned by the Secretary among the several States on the basis of the

average yield per acre of rice in each State during the three years

immediately preceding the year for which the quota is proclaimed

(or in the case of the apportionment for 1957, during the two years

preceding such year) multiplied by the acreage allotment of such

State for such year. (7 U. S. C. 1380d (a) )

(b) The State primary market quota shall be apportioned by the

Secretary among farms on the basis of the acreage allotment established for each farm multiplied by the normal yield per acre for the

farm. (7 U. S. C. 1380d (b) )

REVIEW OF PRIMARY MARKET QUOTA

SEC. 380e. Notice of the primary market quota shall be mailed to

the operator of the farm to which such quota applies. The farm

operator may have such quota reviewed in accordance with the provisions of sections 363 to 368, inclusive, of this Act. (7 U. S. C. 1380e)
84 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

PRICE SUPPORT

SEC 380f. (a) Notwithstanding any other provision of law, the

Commodity Credit Corporation snail make price support available to

cooperators through loans, purchases, or other operations on any crop

of rice for which a program is in effect under sections 380c through

380g (c) at such level, not less than 50 per centum or more than 90

per centum of the parity price therefor, as the Secretary determines

will not discourage or prevent the exportation of rice produced in

the United States. (7 U. S. C. 1380f (a) )

(b) Section 101 of the Agricultural Act of 1949, as amended, shall

not apply to price support made available on rice of any crop to

which this section is applicable, but all the other provisions of such

Act, to the extent not inconsistent with this subtitle, shall apply to

price support operations carried out under this section. (7 U. S. C.

1380f (b))

CERTIFICATES

SEC. 380g. (a) The Secretary of Agriculture shall for each marketing year issue certificates to cooperators for a quantity of rice equal

to the primary marketing quota for the farm for such marketing year,

but not exceeding the normal yield of the acreage planted to rice on

the farm. The certificate shall have the value specified in subsection

(e) of this section. (7 U. S. C. 1380g (a) )

(b) The landlord, tenants, and sharecroppers on the farm shall

share in the certificates issued with respect to the farm in the same

proportion as they share in the rice produced on the farm or the proceeds therefrom. (7 U. S. C. 1380g (b) )

(c) The provisions of section 385 of this Act shall be applicable

to certificates issued to producers under this section. (7 U. S. C.

1380g(c))

(d) The Commodity Credit Corporation shall issue and sell certificates to persons engaged in the processing of rough rice or the importing of processed rice. Each such certificate shall be sold for an

amount equal to the value thereof, as specified in subsection (e) of

this section. (7 U. S. C. 1380g (d) )

(e) The value of each certificate issued iinder this section shall

be equal to the difference between 90 per centum of the parity price

of rice as of the beginning of the marketing year for which the

certificate is issued and the level of price support for rice which is in

effect during such marketing year, calculated to the nearest cent,

multiplied by the quantity of rice for which the certificate is issued.

Any certificates not used to cover the processing of rice or the importation of processed rice pursuant to sections 380k and 380Z of this Act

shall be redeemed by the Commodity Credit Corporation at the value

thereof. (7 U. S. C. 1380g (e) )

INVENTORY ADJUSTMENT PAYMENTS

SEC. 380h. To facilitate the transition from the price support program currently in effect to the program provided for in this subtitle,

the Commodity Credit Corporation shall make inventory adjustment

payments to all persons owning rough rice located in the continental

United States as of the beginning of the marketing year for the first

crop of rice for whi(^h a program is in effect under sections 380c
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 85

through 380g (c) : Provided^ however^ That such payments shall not

be made with respect to rice of such crop^ imported rice, or rice

acquired from Commodity Credit Corporation. The amount of such

payment per hundredweight shall be the amount by which the estimated average price paid producers during the marketing year for

the preceding crop exceeds the estimated average support price for

the first crop for which a program is made effective. There are

hereby authorized to be appropriated such sums as may be necessary

to make payment to Commodity Credit Corporation for expenditures

pursuant to this section. (7 U. S. C. 1380h)

RIOE SET-ASIDE

SEC. 380i. All rough and processed rice in the inventories of Commodity Credit Corporation as of sixty days after the beginning of

the marketing year for the first crop for which a program is in effect

under sections 380c through 380g (c), not exceeding twenty million

hundredweight of rough rice or its equivalent in processed rice may

be transferred to and be made a part of the commodity set-aside of

rice established pursuant to section 101 of the Agricultural Act

of 1954. (7 U. S. C. 1380Í)

EXEMPTIONS

SEC. 380j. The provisions of this subtitle shall not apply to nonirrigated rice produced on any farm on which the acreage planted to

nonirrigated rice does not exceed three acres, and the provisions of

sections 380c through 380g (c) shall not apply to rice produced in

Puerto Eico or Hawaii. (7 U. S. C. 1380j )

PROCESSING RESTRICTIONS

SEC. 380k. (a) Each person who on or after the beginning of the

marketing year for the first crop for which a program is in effect

under sections 380c through 380g (c), engages in the processing of

rough rice in the United States shall, upon processing any quantity of

rough rice, acquire certificates issued under section 380g of this Act

in an amount sufficientto cover such quantity of rough rice. (7 U. S. C.

1380k (a))

(b) The requirements of subsection (a) of this section shall not

be applicable to the processing in Puerto Eico or Hawaii of rough

rice grown in Puerto Eico or Hawaii, respectively. (7 U. S. C. 1380k

(b))

(c) Upon the exportation from the United States to any country

other than Cuba of any processed rice with respectto which certificates

were acquired in accordance with the requirements of subsection (a)

of this section or section 3801, the Commodity Credit Corporation

shall pay to the exporter an amount equal to the value of the certificates tor the rough rice equivalent of such processed rice. (7 U. S. C.

1380k (c))

IMPORT RESTRICTIONS

SEC. 3801. Each person who, on or after the beginning of the marketing year for the first crop for which a program is in effect under
86 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

sections 380c through 380g (c), imports processed rice into the United

States shall acquire certificates issued under section 380g of this Act

covering the rough rice equivalent of such processed rice. (7 U. S. O

REGULATIONS

SEC. 380m. The Secretary shall prescribe regulations governing

the issuance, redemption, acquisition, use, transfer, and dispositioil

of certificates hereunder. (7 U. S. 0.1380m)

CIVIL PENALTIES

SEC. 380n. Any person who violates or attempts to violate, or who

participates or aids in the violation of, any of the provisions of sections 380k or 3801 of this Act, or regulations prescribed by the Secretary for the enforcement of such provisions, shall forfeit to the United

States a sum equal to three times the market value, at the time of the

commission of such act, of the product involved in such violation.

Such forfeiture shall be recoverable in a civil suit brought in the name

of the United States. (7 U. S. C. 1380n)

REPORTS AND RECORDS

SEC. 380O. (a) The provisions of section 373 (a) of this Act shall

apply to all persons, except rice producers, who are subject to the

provisions of this subtitle, except that any such person failing to make

any report or keep any record as required by this section 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

$2,000 for each such violation. (7 U. S. C. 1380o (a) )

(b) The provisions of section 373 (b) of the Act shall apply to

all rice farmers who are subject to the provisions of this siibtitle.

{7U.S.C. 13800(b))

DEFINITIONS

SEC. 380p. For the purposes of this subtitle—

(a) "cooperator" shall have the same meaning as under the

Agricultural Act of 1949, as amended.

(b) "processing of rough rice" means subjecting rough rice for

the first time to any process which removes the husk or hull from

the rice and results in the production of processed rice.

(c) "processed rice" means any rice from which the husk or

hull has been removed and includes, but is not limited to—

whole grain rice,

second head milled rice,

screenings milled rice,

brewers milled rice,

undermilled rice or unpolished rice,

brown rice,

converted rice, malekized rice or parboiled rice, and

vitaminized rice or enriched rice.

(d) "United States" means the several States, the Territories of

Hawaii and Alaska, the District of Columbia, and the Commonwealth of Puerto Eico.
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 87

(e) "exporter" means the consignor named in the bill of lading

under which the processed rice is exported: Provided^ howemr^

That any other person may be considered to be the exporter if

the consignor named in the bill of lading waives his claim in

favor of such other person*

(f) "rough rice equivalent" means the quantity of rough rice

normally used (as determined by the Secretary of Agriculture)

in the production of a particular quantity of processed rice, but

shall not be more than one hundred pounds of rough rice for

each sixty-eight pounds of processed rice.

(g) "import" means to enter, or withdraw from warehouse, for

consumption. (YU. S.C. 1380p)

SUBTITLE E—MISCELLANEOUS PROVISIONS AND APPROPRIATIONS

PART I—MISCELLANEOUS

COTTON PRICE ADJUSTMENT PATMENTS

SEC. 381. (a) (Applicable only to 1937 crop of cotton.)

(b) (Applicableonly to 1937 crop of cotton.)

(c) (Eepealed by 62 Stat. 1255.)

SEC, 382. (Applicableonly 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 written consent of the producer or borrower. (7 U. S. C. 1383 (b) )

[Public Law 660, 75th 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. Notwithstandmg 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, as 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 cases

where there is congestion and lack of storage facilities, and the local

warehouse certifies such fact and requests the Commodity Credit
88 AGRIOULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

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 warehouse, 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)]

REPORT OF BENEFITS

SEC. 384. (Eepealed 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 officially 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 Goyernment. 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 Revised Statutes

(TJ. 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)). (7U.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
AGRICULTURAL ADJUSTMENT ACT OF 193 8, AS AMENDED 89

service, and other approved agencies, and to recognition and encouragement of cooperative asociations, 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))

(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. All 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.

(7U.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 U. 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 it is 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 be 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. (7Ü.S. C. 1390)

10 The functions of the Agricultural Adjustment Administration were transferred to the

Secretary of Agriculture by 1946 Reorganization Plan No. 3 (60 Stat. 1100,11 F. R. 7877),

and delegated by him to the Commodity Stabilization Service (19 F. R. 77).
90 AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED

PART II—APPROPRIATIONS AND ADMINISTRATIVE EXPENSES

APPROPRIATIONS

SEO. 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

to any amount made available pursuant to section 15 of the Soil Conservation and Domestic Allotment Act, as amended. (7 U. S. Ö. 1391

(a))

(h) (Applicable only to fiscal year 1938.)

(c) During each fiscal year, beginning v^ith 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 which 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 tho-n 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. (7U. 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, countj^^ 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

hj the Secretary to be required by the Agricultural Adjustment Administration for administrative expenses in carrying otit or coopérât-
AGRICULTURAL ADJUSTMENT ACT OF 1938, AS AMENDED 91

ing 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 including 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,

unless otherwise provided by appropriation or other law. 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 Agricultural

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 j^ear for carrying out the purposes of

said Acts, unless otherwise provided by appropriation or other law.

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 conspicuous

place in the area within which they are employed. (7 U. 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 PAETICIPATION TRUST

CERTIFICATES

[The provisions of this title have not been repealed but are no longer

applicable (7 U. S. C. 1401-1407.]
SOIL BANK ACT

EXPLANATORY NOTE

The Soil Bank Act, which was enacted as title I of the Agricultural

Act of 1956 (70 Stat. 188), authorized assistance to farmers to divert

a portion of their cropland from the production of excessive supplies

of agricultural commodities, and to carry out a program of soil, water,

forest, and wildlife conservation.

92
PART III

SOIL BANK ACT

SHORT TITLE

SEC. 101. This title may be cited as the "Soil Bank Act".^

DECLARATION OF POLICY

SEC 102. The Congress hereby finds thatthe production of excessive

supplies of agricultural commodities depresses the prices and income

of farm families; constitutes improper land use and brings about soil

erosion, depletion of soil fertility, and too rapid release of water

from lands where it falls, thereby adversely affecting the national

welfare, impairing the productive facilities necessary tor a continuous

and stable supply of agricultural commodities, and endangering an

adequate supply of water for agricultural and nonagricultural use;

overtaxes the facilities of interstate and foreign transportation; congests terminal markets and handling and processing centers m the üow

of commodities from producers to consumers; depresses prices m

interstate and foreign commerce; disrupts the orderly marketing ot

commodities in such commerce; and otherwise affects, burdens, and

obstructs interstate and foreign commerce. It is m the interest o±

the o-eneral welfare that the soil and water resources of the JNation

be not wasted and depleted in the production of such burdensome

surpluses and that interstate and foreign commerce m agricultural

commodities be protected from excessive supphes. It is hereby declared to be the policy of the Congress and the purposes of this title

to protect and increase farm income, to protect the national soil,

water, and forest and wildlife resources from waste and depletion, to

protect interstate and foreign commerce from the burdens and obstructions which result from the utilization of farmland for the production

of excessive supplies of agricultural commodities, and to provide for

the conservation of such resources and an adequate, balanced, and

orderly flow of such agricultural commodities in interstate and foreign

commerce. To effectuate the policy of Congress and the purposes of

this title programs are herein authorized to assist farmers to divert

a portion of their cropland from the production of excessive supplies

of agricultural commodities, and to carry out a program of soil, water,

forest and wildlife conservation. The activities authorized under

this title are supplementary to the acreage allotments and marketing

quotas authorized under the Agricultural Adjustment Act of 1938,

as amended, and together with such acreage allotments and marketing

quotas, constitute an over-all program to prevent excessive supphes of

agricultural commodities from burdening and obstructing interstate

and foreign commerce. (7 U. S. C. 1801)

1 This section is codified in United States Code as a note to 7 U. S. C. 1801.

93
94 SOIL BANK ACT

SUBTITLE A—^ACREAGE RESERVE PROGRAM

TERMS AND CONDITIONS

SEC. 103. (a) Notwithstanding any other provision of law, the

Secretary of Agriculture (hereinafter referred to as the "Secretary")

is authorized and directed to formulate and carry out an acreage

reserve program for the 1956, 1957, 1958, and 1959 crops of wheat,

cotton, corn produced in the commercial corn-producing area, peanuts,

rice, flue-cured tobacco, hurley tobacco, Maryland tobacco, dark aircured tobacco, fire-cured tobacco, Viriginia sun-cured tobacco, cigar

binder tobacco types 51, 52, 54, and 55, Ohio cigar filler tobacco types

42, 43, and 44, resî)ectively (hereinafter referred to as "the commodity"), under which producers shall be compensated for reducing

their acreages of the commodity below their farm acreage allotments or

their farm base acreages, whichever may be applicable. To be eligible

for such compensation the producer (1) shall reduce his acreage of the

commodity below his farm acreage allotment or farm base acreage,

whichever may be applicable, within such limits as the Secretary may

prescribe, (2) shall specifically designate the acreage so withdrawn

from the production of such commodity (hereinafter referred to as

the "reserve acreage"), and (3) shall not harvest any crop from, or

graze, the reserve acreage unless the Secretary, after certification by

the Governor of the State in which such acreage is situated of the

need for grazing on such acreage, determines that it is necessary

to permit grazing thereon in order to alleviate damage, hardship, or

suffering caused by severe drought, flood, or other natural disaster,

and consents to such grazing. Reserve acreage of a commodity may

include acreage whether or not planted to the production of the

1956 crop of the commodity prior to the announcement of the acreage

reserve program for the 1956 crop if the crop thereon, if any, shall

be plowed under or otherwise physically incorporated into the soil,

or clipped, mowed, or cut to prevent maturing so that the reduction

in acreage of the commodity below the acreage allotment occurs not

later than 21 days after the enactment of this title, or by such later

date as may be fixed by the Secretary. The reserve acreage shall be

in addition to any acreage devoted to the conservation reserve program authorized under subtitle B of this title. The acreage reserve

pro-am may include such terms and conditions, in addition to those

specifically provided for herein, including provisions relating to control of noxious weeds on the reserve acreage, as the Secretary determines are desirable to effectuate the purposes of this title and to

facilitate the practical administration of the acreage reserve program.

Before any producer is entitled to receive any compensation for

participating in the acreage reserve program, he must first enter into

a contract with the Secretary, which contract, in addition to such

other terms and conditions as may be prescribed by the Secretary,

shall contain provisions by which such producer shall agree :

(i) In the event that the Secretary determines that there has been a

violation of the contract at any stage during the time such producer

has control of the farm and that such violation is of such a substantial

nature as to warrant termination of the contract, to forfeit all rights

to payments or grants under the contract, and to refund to the United

States all payments and grants received by him thereunder : Provided^
SOIL BANK ACT 95

howevery Thüt the provisions of Section 107 (d) shall apply to the

termination of any contract hereunder.

(ii) In the event that the Secretary determines that there has been a

violation of the contract but that such violation is of such a nature as

not to warrant termination of the contract, to accept such payment^adjustments, forfeit such benefits, and make such refunds to the United

States of payments and benefits received by him, under the contract,

as the Secretary may determine to be appropriate. (7 U. S. C.

1821(a)) (b) (1) There is hereby established for 1956 and for each year tor

which an acreage reserve program is in effect for corn a total base

acreage of corn for the commercial corn-producing area proclaimed under section 327 of the Agricultural Adjustment Act of 1938, as

amended, of fifty-one million acres. The total base acreage of corn for

the commercial corn-producing area shall be apportioned by the Secretary among the counties in such area on the basis of the acreage of corn

in such counties during the five calendar years immediately preceding

the calendar year in which the apportionment is made (plus, in applicable years, the acreage diverted under previous agricultural adjustment, conservation, and soil bank programs), with adjustments for

abnormal weather conditions, 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 base acreage that would

otherwise be apportioned to the county. The base acreage for the

county shall be apportioned by the Secretary, through the local committees, among the farms within the county on the basis of past

acreage of corn (planted and diverted), tillable acreage crop-rotation

practices, types of soil, and topography.

(2) This subsection (b) shall become inoperative after 1956 if in the

referendum conducted pursuant to section 308 (b),^ producers do not

vote in favor of the program provided in subsection (c) of such section.

(7 U.S.C. 1821(b))

EXTENT or PARTICIPATION IN PROGRAM

SEC. 104. For purposes of the acreage reserve program the Secretary

shall establish a national reserve acreage goal for the 1956,1957,1958,

and 1959 crops of each commodity specified in section 103 (a). The

limits within which individual farms may participate in the acreage

reserve program shall be established in such manner as the Secretary

determines is reasonably calculated to achieve the national reserve acreage goal and give producers a fair and equitable opportunity to participate in the acreage reserve program, taking into consideration their

acreage allotments or farm base acreages, whichever may be applicable, the supply and demand conditions for different classes, grades,

and qualities of the commodity, and such other factors as he deems

appropriate. (7 U. S. C. 1822)

COMPENSATION OE PRODUCERS

SEC. 105. (a) Producers shall be compensated for participating in

the acreage reserve program through the issuance of negotiable cer2 p. 154.
96 SOIL BANK ACT

tificates which the Commodity Credit Corporation shall redeem in

accordance with regulations prescribed by the Secretary (1) in cash

upon presentation by the producer or by any holder in due course or

(2) at the option of the producer in the case of certificates issued with

respect to grains and upon presentation by him, in grains (such grains

to be valued by the Secretary at such levels as he determines will not

materially impair the market price for such grain yet will, to the

maximum extent practicable encourage acceptance of payment in

grains in lieu of cash) : Provided^ That disposition of quantities of

stocks hereunder in any one year shall be limited to not more than

two-thirds of such quantities of such commodities as the Secretary

determines would be a reasonable estimate of what would have been

produced for marketing during such marketing year on the acreage

withheld from production under the provisions of this title: And

provided further^ That such stocks shall not be released prior to the

end of the normal harvesting season for the particular commodity

being released. Compensation under this section shall be at such rate

or rates as the Secretary determines will provide producers with a

fair and reasonable return for reducing their acreage of the commodity, taking into consideration the loss of production of the commodity on the reserve acreage, any savings in cost which result from

not planting the commodity on the reserve acreage, and the incentive

necessary to achieve the reserve acreage goal. The Secretary shall

make an adjustment in yields for drought, flood, or other abnormal

conditions in estimating the loss of production for purposes of establishing rates of compensation. The rates of payment offered under

this section shall be such as to encourage producers to imderplant their

allotments more than one year. Commodities delivered to producers

in redemption of such certificates shall not be eligible for tender to

Commodity Credit Corporation under the price support program.

(7U.S.C.1823(a))

(b) Compensation shall be paid to any producer for participating

in the acreage reserve program for any year including 1956 when the

Secretary has ascertained that such producer has complied with the

acreage reduction requirements*of such program for such year. (7

U.S.C. 1823(b))

(c) The total compensation paid producers for participating in the

acreage reserve program with respect to any year's crops shall not

exceed $750,000,000, and with respect to any commodity for any year

shall not exceed the amount shown below : Wheat, $375,000,000 ; cotton,

$300,000,000; corn in the commercial corn-producing area, $300,000,-

000; peanuts, $7,000,000; rice, $23,000,000; and tobacco, $45,000,000.

The total amount available for the acreage reserve program for any

year's crops shall be apportioned among the various commodities on

the basis of the amounts required to achieve the reserve acreage goal

for each commodity established under section 104. (7 U. S. C.

1823 (c))

EFFECT 03Sr ACREAGE ALLOTMENTS AND QUOTAS

SEC. 106. (a) In the future establishment of State, county, and farm

acreage allotments under the Agricultural Adjustment Act of 1938, as

amended, or base acreages under this title, reserve acreages applicable

to any commodity shall be credited to the State, county, and farm as
SOIL BANK ACT 97

though such acreage had actually been devoted to the production of the

commodity. (7 U. S. C. 1824 (a) )

(b) In applying the provisions of paragraph (6) of Public Law 74,

Seventy-seventh Congress (7 U. S. C. 1340 (6) ), and sections 326 (b)

and 356 (g) of the Agricultural Adjustment Act of 1938, as amended

(7 TJ. S. C. 1326 (b), 1356 (g) ), relating to reduction of the storage

amounts of wheat and rice, the reserve acreage of the commodity on

any farm shall be regarded as wheat acreage or rice acreage, as the

case may be, on the farm. (7 U. S. G. 1824 (b) )

SUBTITLE B—CONSERVATION KESERVE PROGRAM

TERMS AND CONDITIONS

SEC. 107. (a) To effectuate the purposes of this title the Secretary

is hereby authorized to enter into contracts for periods of not less

than three years with producers determined by him to have control

for the contract period of the farms covered by the contract wherein

the producer shall agree :

(1) To establish and maintain for the contract period protective

vegetative cover (including but not limited to grass and trees), water

storage facilities, or other soil-, water-, wildlife-, or forest-conserving

uses on a specifically designated acreage of land on the farm regularly

used in the production of crops (including crops, such as tame hay,

alfalfa, and clovers, which do not require annual tillage).

(2) To devote to conserving crops or uses, or allow to remain idle,

throughoutthe contract period an acreage of the remaining land on the

farm which is not less than the acreage normally devoted only to conserving crops or uses or normally allowed to remain idle on such remaining acreage.

(3) Not to harvest any crop from the acreage established in protective vegetative cover, excepting timber (in accordance with sound

forestry management) and wildlife or other natural products of such

acreage which do not increase supplies of feed for domestic animals.

(4) Not to graze any acreage established in protective vegetative

cover prior to Januaiy 1,1959, or such later date as may be provided

in the contract, except pursuant to the provisions of section 103 (a)

(3) hereof; and if such acreage is grazed at the end of such period, to

graze such acreage during the remainder of the period covered by the

contract in accordance with sound pasture management.

(5) Not to adopt any practice, or divert lands on the farm from

conservation, woods, grazing, or other use, to any use specified by the

Secretary in the contract as a practice or use which would tend to

defeat the purposes of the contract.

(6) (A) In the event that the Secretary determines that there has

been a violation of the contract (including the prohibition of grazing

on conservation acreages) at any stage during the time such producer

has control of the farm and that such violation is of such a substantial

nature as to warrant termination of the contract, to forfeit all rights

to payments or grants under the contract, and to refund to the United

States all payments and grants received by him thereunder.

(B) In the event that the Secretary determines that there has been

a violation of the contract but that such violation is of such a nature

412526—57 -8
98 SOIL BANK ACT

as iiot to warrant termination of the contract, to accept such payment

adjustments, forfeit such benefits, and make such refundsto the United

States of payments and benefits received by him, under the contract,

as the Secretary may determine to be appropriate.

(7) To such additional provisions as the Secretary determines are

desirable and includes in the contract to effectuate the purposes of

this title and to facilitate the practical administration of the conservation reserve program, including provisions relating to control of

noxious weeds. (7U. S. C. 1831 (a))

(b) In return for such agreement by the producer the Secretary

shall agree:

(1) To bear such part of the cost (including labor) of establishing

and maintaining vegetative cover or water storage facilities, or other

soil-, water-, wildlife-, or forest-conserving uses, on the designated

acreage as the Secretary determines to be necessary to effectuate the

purposes of this title, but not to exceed a maximum amount per acre

or facility prescribed by the Secretary for the county or area in which

the farm is situated ; and

(2) To make an annual payment to the producer for the term of

the contract upon determination that he has fulfilled the provisions

of the contract entitling him to such payment. The rate or rates of

the annual payment to be provided for in the contracts shall be established on such basis as the Secretary determines will provide producers

with a fair and reasonable annual return on the land established in

protective vegetative cover or water storage facilities, or other soil-,

water-, wildlife-, or forest-coiiserving uses, taking into consideration

the value of the land for the production of commodities customarily

grown on such kind of land in the county or area, the prevailing rates

for cash rentals for similar land in the county or area, the incentive

necessary to obtain contracts covering sufficient acreage for the substantial accomplishment of the purposes of the conservation reserve

program, and such other factors as he deems appropriate. Such rate

or rates may be determined on an individual farm basis, a county or

area basis, orsuch other basis as the Secretary determines will facilitate

the practical administration of the program. (7 U. S. C. 1831 (b) )

(c) In determining the lands in any area to be covered by contracts

entered into under this section, the Secretary may use advertising and

bid procedure if he determines that such action will contribute to the

effective and equitable administration of the conservation reserve

program. (7 U. S. 0.1831 (c) )

(d) A contract shall not be terminated under paragraph (6) of

subsection (a) unless the nature of the violation is such as to defeat

or substantially impair the purposes of the contract. Whenever the

State committee believes that there has been a violation which would

warrant termination of a contract, the producer shall be given written

notice thereof by registered mail or personal service, and the producer

shall, if he requests such an opportunitjr within thirty days after the

delivery or service of such notice, be giten an opportunity to show

cause, in an informal proceeding iDcfore the county committee under

regulations promulgated by the Secretary, why the contract should not

be terminated. If the producer does not request an opportunity to

show cause why the contract should not be terminated within such

thirty-day period, the determination of the State committee made in
SOIL BANK ACT 99

accordance with regulations of the Secretary shall be final and conclusive. If the producer within such thirty-day period requests an

opportunity to show cause why the contract should not be terminated,

the county committee, at the conclusion of the proceeding, shall submit

a report, including its recommendations, to the State committee for

a determination, on the basis of such report and such other information as is available to the State committee, as to whether there has

been a violation which would warrant termination of the contract.

The producer shall be accorded the right, in accordance with regulations promulgated by the Secretary, to appear before the State committee in connection with the State committee's determination of the

issue. The producer shall be given written notice by registered mail

or personal service of the State committee's determination. If the

producer feels aggrieved by such determination, he may obtain judicial

review of such determination by filing a complaint with the United

States district court for the district in which the land covered by the

contract is located, within ninety days after the delivery or service of

notice of such determination, requesting the court to set aside such

determination. Service of process in such action shall l^e made in

accordance with the rule for service of process upon the United States

prescribed by the Eules of Civil Procedure for the United States

District Courts. The copy of the summons and complaint required

to be delivered to the officer or agency whose order is being attacked

shall be sent to the chairman of the State committee. The action in

the United States district court shall be a trial de novo to determine

whether there has been a violation which would warrant termination

of the contract. If the producer does not seek judicial review of the

State committee's determination within the ninety-day period allowed

therefor, the State committee's determination shall be final and conclusive. The terms "county committee" and "State committee" as used

herein refer to the county and State committees established under

section 8 of the Soil Conservation and Domestic Allotment Act, as

amended. (7 U. S. C. 1831 (d))

CONSERVATION RESERVE GOAL

SEC. 108. (a) The Secretary shall not later than February 1 of each

year determine and announce the national conservation reserve goal

for such year. Such ^oal shall be that percentage which the Secretary

determines it is practicable to cover by contracts during such year of

the number of acres, if any, by which (1) the acreage used for the

production of agricultural commodities during the year preceding

the year for which such determination is made, plus any acreage then

in the acreage or conservation reserve program or retired from production as a result of acreage allotments or marketing quotas, exceeds

(2) the acreage needed during the year for which such determination

is made for the production of agricultural commodities for domestic

consumption and export and an adequate allowance for carryover.

As soon as practicable after the enactment of this title the Secretary

shall determine the national conservation acreage ffoal for 1956. (7

Ü.S.C.1832(a)) V

(b) In distributing the national acreage goal among the various

States and major crop production regions, the Secretary shall give due
100 SOIL BANK ACT

regard to the respective needs of the various States and regions for

flood control, drought control, and other conservation benefits; the

desires of producers in particular States or regions to participate in the

conservation program; the diversion of acreage from crops under

acreage allotments or marketing quotas; and the need to assure adequate production of agricultural commodities and products not in surplus and to discourage the production of agricultural commodities and

products in surplus. (7 U. S. C. 1832 (b) )

( c) The Secretary shall transmitto the Congress on or before March

15 of each year a report of the scope of the conservation reserve program for the preceding year and the basis for participation in such

program in the various States and major crop production regions of

the country. (7 U. S. C. 1832 (c) )

AUTHORIZED PERIOD OF CONTRACTS AND EXPENDITURES

SEC. 109. (a) The Secretary is authorized to formulate and announce programs under this subtitle B and to enter into contracts

thereunder with producers during the five-year period 1956-1960 to

be carried out during the period ending not later than December 31,

1969, except that contracts for the establishment of tree cover may

continue until December 31,1974. (7 U. S. C. 1833 (a) )

(b) The period covered by any contract shall not exceed ten years,

except that contracts for the establishment of tree cover may extend

for 15 years. (7 U. S. C. 1833 (b) )

(c) In carrying out the conservation reserve |)rogram, the Secretary

shall not enter into contracts with producers which would require payments to producers, including the cost of materials and services, in

excess of $450,000,000 in any calendar year. (7 U. S. C. 1833 (c) )

TERMINATION AND MODIFICATION OF CONTRACTS

SEC. 110. (a) The Secretary may terminate any contract with a

producer by mutual agreement with the j)roducer if the Secretary

determines that such termination would be in the public interest. (7

U.S.C.1834(a))

(b) The Secretary may agree to such modification of contracts

previously entered into as he may determine to be desirable to carry

out the purposes of this title and to facilitate the practical administration of the conservation reserve program. (7 U. S. C. 1834 (b) )

CONSERVATION MATERIALS AND SERVICES

SEC. 111. (a) The Secretary may purchase or produce conservation

materials and services and make such materials and services available

to producers under the conservation reserve program to aid them in

establishing vegetative cover or water storage facilities, or other soil-,

water-, wildlife-, or forest-conserving uses, under contracts authorized

by this subtitle B, may reimburse any Federal, State, or local government agency for conservation materials and services furnished by such

agency, and may pay expenses necessary in making such materials,

and services available, including all or part of the costs incident to

the delivery, application, or installation of materials and services.

(7 U. S. C. 1835 (a))
SOIL BANK ACT 101

(b) Notwithstanding any other provision of law, in making conservation materials and services available to producers hereunder, the

Secretary may make payments, in advance of determmation ot performance by the producers, to persons who fill purchase orders covering approved conservation materials or who render services to the

Secretary in furnishing to producers approved conservation materials

or services for the establishment by the producers of vegetative cover

or water storage facilities, or other soil-, water-, wildlife-, or torestconserving uses, under contracts authorized by this subtitle B. The

price at which purchase orders for any conservation material or service are filled may be limited, if the Secretary determines that it is

necessary in the interest of producers and the Government, to a fair

price fixed in accordance with regulations prescribed by the Secretary.

(7 U. S. C. 1835 (b))

EFFECT ON OTHER PROGRAMS

SEC. 112. Notwithstanding any other provision of law—

(1) insofar as the acreage of cropland on any farm enters into

the determination of acreage allotments and marketing quotas

under the Agricultural Adjustment Act of 1938, as amended, the

cropland acreage on the farm shall not be deemed to be decreased

during the period of any contract entered into under the conservation reserve program by reason of the establishment and maintenance of vegetative cover or water storage facilities, or other

soil-, water-, wildlife-, or forest-conserving uses, under such contract; and

(2) the acreage on any farm which is determined under regulations of the Secretary to have been diverted from the production

of any commodity in order to carry out the contract entered into

under the conservation reserve program shall be considered acreage devoted to the commodity for the purposes of establishing

future State, county, and farm acreage allotments under the

Agricultural Adjustment Act of 1938, as amended, and base acreages under this Act. (7 U. S. C. 1836)

GEOGRAPHICAL. APPLICABILITY

SEC. 113. This subtitle B shall apply to the continental United

States, and, if the Secretary determines itto be in the national interest,

to one or more of the Territories of Alaska and Hawaii, the Commonwealth of Puerto Eico, and the Virgin Islands, and as used m this

subtitle B, the term "State" includes Alaska, Hawaii, Puerto Eico, and

the Virgin Islands. (7 U. S. C. 1837)

SUBTITLE C—GENERAL PROVISIONS

COMPLIANCE WITH ACREAGE ALLOTMENTS

SEC. 114. No person shall be eligible for payments or compensation

under this title with respect to any farm for any year in which (1)

the acreage of any basic agricultural commodity other than wheat or

corn on the farm exceeds the farm acreage allotment for the commodity under title III of the Agricultural Adjustment Act of 1938,
102 SOIL BANK ACT

as amended, or (2) the wheat acreage on the farm exceeds the larger

of the farm wheat acreage allotment under such title or fifteen acres,

or (3) the corn acreage on the farm, in the case of a farm in the

commercial corn-producing area, exceeds the farm base acreage for

corn or the farm acreage allotment, whichever is in effect. For the

purpose of thissection, a producer shall not be deemed to have exceeded

his farm acreage allotment or farm base acreage, unless such producer knowingly exceeded such allotment or base acreage andj in the

case of wheat, unless such producer knowingly exceeded the farm

acreage allotment or fifteen acres, whichever is larger. (7 XJ. S. C.

1802) ^

REAPPORTIOKMENT PROHIBITED

SEC. 115. NO acreage diverted from the production of any commodity subject to acreage allotments as a result of participation in

the acreage reserve or conservation reserve programs shall be reapportioned or allotted to any other farm. (7 XJ. S. 0. 1803)

CERTIFICATE OF CLAIMANT

SEC. 116. Subject to the provisions of section 105 (b), payment or

compensation authorized by this title may be made upon the certificate of the claimant, in such form, as the Secretary may prescribe,

that he has complied with all requirements for such payment and

that the statements and information contained in the application for

payment are correct and true, to the best of his knowledge and belief.

(7Ü.S.C.1804) ^

UTILIZATION OF LOCAL AND STATE COMMITTEES

SEC. 117. In administering this title in the continental United

States, the Secretary shall utilize the services of local, county, and

State committees established under section 8 of the Soil Conservation and Domestic Allotment Act, as amended. (7 IT. S. 0.1805)

UTILIZATION OF OTHER AGENCIES

SEC. 118. With respect to conservation aspects of any program under thistitle, the Secretary shall consult with the soil-conservation districts. State foresters. State game and fish agencies, land-grant colleges,

and other appropriate agencies of State governments, and with the

Fish and Wildlife Service, in the formulation of program provisions

at the State and county levels. The technical resources of the Soil

Conservation Service, the Forest Service, the land-grant colleges, the

State foresters, State game and fish agencies, the Fish and Wildlife

Service, and other appropriate technical services shall be utilized, so

far as practicable, to assure coordination of conservation activities and

a solid technical foundation for the program. (7 U. S. C. 1806)

UTILIZATION OF LAND USE CAPABILITY DATA

SEC. 119. In administering thistitle the Secretary shall utilize to the

fullest practicable extent land use capability data, including capability
SOIL BANK ACT 103

surveys as developed by the Soil Conservation Service, and shall carry

forward to completion as rapidly as possible the basic land inventory

of the Nation. (7 Ü. S. C. 1807)

EINANGING

SEO. 120. (a) The Secretary is authorized to utilize the facilities,

services, authorities, and funds of the Gommodity Credit Corporation

in discharging his functions and responsibilities under this title, including payment of costs of administration for the programs authorized under this title: Provided^ That the Secretarjr shall, prior to

February 1,1957, or such earlier date as may be practicable, submit to

the Congress a full program of all operations under this title which

will require the making of expenditures during the fiscal year ending

June 30, 1958; and, after June 30, 1957, the Commodity Credit Corporation shall not make any expenditures for carrying out the purposes of this title unless the Corporation has received funds to cover

such expenditures from appropriations made to carry out the purposes of this title. There are hereby authorized to be appropriated

such sums as may be necessary to carry out the purposes of this title,

including such amounts as may be required to make payments to the

Corporation for its actual costs incurred or to be incurred under this

section. (7U.S.C.1808(a))

(b) All funds available for carrying out the purposes of this title

shall be available for transfer to such agencies of the Federal or State

governments as the Secretary may request to cooperate or assist in

carrying out this title ; and for technical assistance in formulating and

carrying out the programs authorized by this title. The Secretary

may make such payments in advance of determination of performance. (7 U.S.C. 1808(b))

FINALITY OF DETERMINATIONS

SEO. 121. The facts constituting the basis for any payment or compensation, or the amount thereof, authorized to be made under this

title, when officially determined in conformity with applicable regulations prescribed by the Secretary, shall be final and conclusive and

shall not be reviewable by any other officer or agency of the Government. In case any producer who is entitled to any payment or compensation dies, becomes incompetent, or disappears before receiving

such payment or compensation, or is succeeded by another who renders

or completes the required performance, the payment or compensation

shall, without regard to any other provisions of law, be made as the

Secretary may determine to be fair and reasonable in all the circumstances and so provide by regulations. (7 U. S. C. 1809)

PROTECTION OF TENANTS AND SHARECROPPERS

SEC. 122. In the formulation and administration of programs under

this title, the Secretary shall provide adequate safeguards to protect

the interests of tenants and sharecroppers, including provision for

sharing, on a fair and equitable basis, in payments or compensation

under this title, and including such provision as may be necessary to
104 SOIL BANK ACT

prevent them from being forced off the farm. Applications to participate in any such program shall specify the basis on which the landlord,

tenants, and sharecroppers are to share in such payments or compensation, and no contract under any sucJi program shall be entered into

unless such basis is approved by the county committee and incorporated into the contract. The standards prescribed by the Secretary

for the guidance of county committees in determining whether any

such basis shall be approved shall include the requirement that consideration be given to the respective contributions which would have

been made by the landlord, tenants, and sharecroppers in the production of the crops which would have been produced on the acreage

diverted from production under the contract and the basis on which

they would have shared in such crops or the proceeds thereof. (7

U.S.C. 1810)

PENALTY FOR GRAZING OR HARVESTING

SEC. 123. Any producer who knowingly and willfully grazes or

harvests any crop from any acreage in violation of a contract entered

into under section 103 or 107 shall be subject to a civil penalty equal

to 50 per centum of the compensation payable for compliance with

such contract for the year in which the violation occurs. Such penalty shall be in addition to any amounts required to be forfeited or

refunded under the provisions of such contract, and shall be recoverable in a civil suit brought in the name of the United States. (7

U.S.C. 1811)

REGULATIONS

SEC. 124, The Secretary shall prescribe such regulations as he determines necessary to carry out the provisions of this title. (7 U, S. C.

1812)

PRODUCTION ON GOVERNMENT LANDS PROHIBITED

SEC. 125. The President shall, with respect to farmlands now or

hereafter owned by the Federal Government, restrict insofar as practicable the leasing of such lands for the production of price supported

crops in surplus supply. Nothing contained in this section shall

prevent the production of such crops on national wildlife refuges

under cooperative permits where such production is necessary to maintain satisfactory wildlife populations, especially of waterfowl for

beneficial use. (7 U.S.C. 1813)

POOLING or CONSERVATION RESERVE LAND

SEC. 126. Whenever management of family farms or optimum land

use will be aided, the Secretary of Agriculture is authorized to permit

farmers to pool their rights to participate jointly in the conservation

reserve program on property other than their home farms. (7 U. S. C.

1814)
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. Y2), 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

through 1953 and to operate more efficiently the experimental program

initiated by the 1947 legislation (63 Stat. 663). A 1953 amendment

permits continued expansion by authorizing insurance in 100 additional counties each year (67 Stat. 575).

105
PART IV

FEDERAL CROP INSURANCE ACT, AS AMENDED

SHORT TITLE AND APPLICATION OF OTHER PROVISIONS

SEO. 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

fcerm "Act" wherever it appears in such titles shall not be construed

to include this title.i (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 U. 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 corj)orate 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 Ü. S. C. 1504 (b) )

(c) Receipts 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 Federal Crop Insurance Act was enacted as title V of the Agricultural Adjustment

Act of 1038.

106
FEDERAL CROP INSURANCE ACT, AS AMENDED 107

the general supervision of the Secretary of Agriculture. The Board

shall consist of the manager of the Corporation, two other persons

employed 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 oíñce

at the pleasure of the Secretary of Agriculture, who shall not, himselt,

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 m office shall

constitute a quorum for the transaction of the business of the Board.

(7U.S.C.1505 (b)) ^ 1 n . .1.

(c) The Directors of the Corporation who are employed m 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 exceeed $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 U. 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 U. S. C. 1506 (c) )

(d) subject to the provisions of section 508 (c), may sue and be

sued in its corporate name in anjr 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 : Pro'vided^

That no attachment, injunction, garnishment, or other similar process,

mesne or final, shall be issued against the Corporation or its property ;

(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))
108 FEDERAL CROP INSURANCE ACT, AS AMENDED

(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;

(7 U.S. a 1506(f))

(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, officials, and employees thereof in carrying out the provisions

of thistitle ; (7 U. S. C. 1506 (g) )

(h) may conduct researches, surveys, and investigations relatmg

to crop insurance and shall assemble data for the purpose of establishing sound actuarial bases for insurance on agricultural commodities; (7 U.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 officers 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. (7 U. 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

l3e included in the insurance premiums provided for in this title. (7

U.S.C. 1507(c))
FEDERAL CROP INSURANCE ACT, AS AMENDED 109

(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

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 office

or agency. (7U. S. C. 1507 (d) ) .. . ^ .

(e) In carrying out the provisions of this title the Board may, m

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 m 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, flax, 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). Beginning with crops planted for harvest in 1954, crop insurance may

be offered each year in not to exceed 100 counties in addition to the

number of counties in which such insurance was offered in the

preceding year. In determining the new counties in which such insurance is to be offered and the commodities to be insured, the Corporation shall take into consideration the demand of farmers for such

insurance, the extent to which such insurance is available to commercial producers of insured commodities, and the anticipated risk of

loss to the Corporation. Eeinsurance for private insurance companies shall be limited to not to exceed twenty 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
no FEDERAL CROP INSUEANCE ACT, AS AMENDED

subject to the same conditions, may be fair and just: Provided^ That

if 75 per centum of the average yield represents generally more protection than the investment in the crop m any area, taking 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 ñled covering at least two hundred farms

or one-third 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, except that insurance may be

provided for producers on farms situated in a local producing area

bordering on a county with a crop-insurance program. 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 manner,

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: Promded^

That no suit on such claim shall be allowed under this section unless

the same shall have been brought within one year after the date when
FEDERAL CROP INSURANCE ACT, AS AMENDED 111

notice of denial of the claim is mailed to and received by the claimant.

(7 U.S. a 1508(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 provision, however, that, insofar as practicable, the Corporation shall

purchase the agricultural commodity only at the rate and to a total

amount equal to 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 and to prevent deterioration : Provided^ 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, and 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 PROM LEVY

SEO. 509. Claims for indemnities 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 Eeserve banks are hereby authorized and di-
112 FEDERAL CROP INSURANCE ACT, AS AMENDED

rected to act as depositories, custodians, and fiscal agents for the Corporation in the performance of its powers conferred by this title.

(7U.S.C.1Ö10)

TAX EXEMPTIONS

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)

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. 0.1512)

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 OFFENCES

SEC. 514. (Subsections (a) through (e) repealed by 62 Stat. 859.)

(See criminal provisions beginning on p. 113.)

(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 actu-
FEDERAL CROP INSURANCE ACT, AS AMENDED 113

ally employed and actual necessary traveling and subsistence expenses,

or a per diem allowance in lieu thereof. (7 U. 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 begmnmg 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 m connection

with the purchase, transportation, handling, or sale of the agricultural

commodity and the direct cost of loss adjusters for crop inspections and

loss adjustments may be considered by the Corporation as being nonadministrative or nonoperating expenses. The Corporation is authorized to use premium income for administrative and operating costs

within limits prescribed in applicable appropriations. (7 U. S. C.

1016(a)) . , .-, . 1

(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 affect the validity of other sections or parts of sections of thistitle. (7 U. S. C. 1517)

SEC. 518. "Agricultural commodity," as used m 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. (7U. 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 far cooperatives or any lending, mortgage, insurance, credit or savings and loan corporation or association authorized

412526—57 9
114 FEDERAL CROP INSURANCE ACT, AS AMENDED

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, snail be fined

not more than $5,000 or imprisoned not more than five 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 one 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, anjr regional agricultural credit corporation, or any bank for cooperatives,

shall be fined not more than $5,000 or imprisoned not more than five

years, or both ; but if the value of such fjroperty does not exceed $100,

he shall be fined not more than $1,000 or imprisoned not more than one

year, or both. (18 U. S. C. 658)

Whoever, being an officer, agent or employee of or connected in any

capacity with the ßeconstruetion 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^nstitution 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 five 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

inñuencing in any way the action of the Eeconstruction Finance Corporation, Farm Credit Administration, Federal Crop Insurance Corportion. 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
FEDERAL CROP INSURANCE ACT, AS AMENDED 115

Corporation holds stock, or of any regional agricultural credit corporation established pursuant to law, or of the National Agricultural Credit

Corporation, a Federal Home Loan Bank, the Federal Home Loan

Baii Board, the Home Owners' Loan Corporation, a Federal havings and Loan Association, a Federal land bank, a lomt-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

two years, or both. (18U.S.C. 1014) .. . ,, ^ • • , ,• Whoever, while acting in any official capacity m 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 m 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 two years, or both. (18 TJ. S. C. 1903)
SUGAR ACT OF 1948, AS AMENDED

EXPLANATORY NOTE

The first statute authorizing the imposition of sugar quotas oh all

áreas 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,

apf)roVed 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 payments to producers, who were also processors

and who have paid to other producers fair prices for sugar beets or

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. The constitutional

validity of the quota provisions of the Sugar Act of 1948 has been

upheld in the case of Secretary ofAgriculture v. Central Roig Refining

Company et al. (338 U. S. 604). The act was amended in 1951 (65

Stat. 318) and in 1956 (70 Stat. 217).

116
PART V

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 ly 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 purpose of this Act, except title V—

(a) The term "person" means an individual, partnership, corporation, or association. (7 U. 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 (exclusive of liquid

sugar from foreign countries having liquid sugar quotas), whether or

not principally of crystalline structure, which are to be further refined

or improved in quality to produce any sugars principally of crystalline structure or liquid sugar. (7 U. S. C. 1101 (d) )

(e) The term "direct-consumption sugar" means any sugars principally of crysalline structure and any liquid sugar (exclusive of liquid

sugar from foreign countries having liquid sugar quotas), which are

not to be further refined or 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. (7U.S.C.1101 (f))

^The provisions of the act are set forth as amended by Public I^aw 140, 82d Cong.,

approved September 1, 1951, and as further amended by Public Law 545, 84th Cong.,

2d sess., approved May 29, 1956. E?feective date : Sec. 22 of Public Lavsr 545, 84th Cong.,

2d sess. provides, "Except as othervt^ise provided, the amendments made hereby shall

become effective as of January 1, 1956, except that sections 1 through 4 [amendments of

paragraphs d, e, i, and n of section 101 of the Act] shall become effective upon publication

in the Federal Register of regulations implementing such sections, or six months after

the date of enactment of this act, whichever is earlier." (7 Ü. S. C 1101, note)

117
118 SUGAR ACT OF 1948, AS AMENDED

(g) Sugars in dry amorphous form shall be considered to be principally of crystalline structure. (7 U. S. C. 1101 (g) )

(h) The "raw value" of any quantity of sugars means its equivalent

in terms of ordinary commercial raw sugar testing ninety-six 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 ninety-two 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 ninety-two

sugar degrees by the polariscope, by multiplying the number of

pounds thereof by 0.93 ;

(3) For sugar, derived from sugarcane and testing more than

ninety-two sugar degrees by the polariscope, by multiplying the

number of pounds thereof 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 ninety-two degrees;

(4) For sugar and liquid sugar, testing less than ninety-two

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

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 Eico, 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. 0.1101 (1) )
SUGAR ACT OF 1948, AS AMENDED 119

(m) The term "Secretary" means the Secretary of Agriculture.

^^(n) The term 'ï) be further refined or improved in quality" means

to be subiected substatially to the processes of (1) affination or de±-

ecation, (2) clarification, and (3) further purification by adsorption or crystallization. The Secretary is authorized, after such hearing and upon such notice as he may by regulations prescribe, to determine whether specific processes to which sugars are subjected are

sufficient to meet the requirements of this paragraph (n) andwhetber

sugars of specific qualities are raw sugar within the meaning ot paragraph (d) of this section, or direct-consumption sugar within the

mealing of paragraph (e) of this section. (7 U. S. C. 1101 (n) )

TITLE II—QUOTA PROVISIONS

ANNUAL ESTIMATE OF CONSUMPTION IN CONTINENTAL UNTTED STATES

Sec 201. The Secretary shall determine for each calendar year,

beginning with the calendar year 1948, the amount of suga-r needed

to meet the requirements of consumers in the continental United

States; such determinations shall be made during the month ot December in each year for the succeeding calendar year (m the case

of the calendar year 1948, during the first ten 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 dirert-consumption

sugar distributed for consumption, as indicated by official statistics

of the Department of Agriculture, during the twelve-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 m 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 makmg 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 rœult

from such determination and the general cost of living m the United

States as compared with the relationship between pnces at whigesale

for refined sugar and the general cost of living m the United States

obtaining during 1947-1949 as indicated by the Consumers' Price

Index as published by the Bureau of Labor Statistics of the Department of Labor. (7U.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 con-
120 SUGAR ACT OF 1948, AS AMENDED

sumers, the Secretary shall establish quotas, or revise existing quotas—

(a) (1) For domestic sugar-producing areas by apportioning

among such areas four million four hundred and forty-four thousand

short tons, raw value, as follows :

Arpa Short tons,

-^^^^ raw value.

Domestic beet sugar .___ _^ _ _____ _ i goO 0Ó0

Mainland cane sugar "_I _2 I '50o!o0O

Hawaii _ _____ ___ ^ _ 1 052,000

Puerto Rico l 080 000

Virgin Islands . , 12 000

(2) To the above total of four million four hundred forty-four

thousand short tons, raw value, there shall be added an amount equal

to 55 per centum of the amount by which the Secretary's determination of requirements of consumers in the continental United States

for the calendar year exceeds eight million three hundred and fifty

thousand short tons, raw value. Such additional amount shall be apportioned among and added to the quotas established under paragraph

(1) of this subsection for such domestic sugar-producing areas, respectively, as follows: (A) The first one hundred sixty-five thousand

short tons, raw value, or any part thereof, by which quotas for the

domestic areas are so increased shall be apportioned 51.5 per centum

to the domestic beet sugar area and 48.5 per centum to the mainland

cane sugar area; (B) the next twenty thousand short tons, raw vàlué^

or any part thereof, by which such quotas are so increased shall be

apportioned to Puerto Eico; (C) the next three thousand short tons,

raw value, or any part thereof, by which such quotas are so increased

shall be apportioned to the Virgin Islands; (D) any additional

amount shall be apportioned on the basis of the quotas established

m paragraph (1) of this subsection as adjusted by subparagraphs

(A , (B), and (C) of this paragraph (2). (7 U. S. C. 1112 (a) )

(b) For the Eepublic of the Philippines, in the amount of nine

hundred and fifty-two thousand short tons of sugar as specified in

section 211 of the Philippine Trade Act of 1946. (7 U. S. C. 1112 (b) )

^ (c) (1) For the calendar year 1956, for foreign countries other than

the Eepublic 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 _ 9ß

Foreign countries other than Cuba and the Republic of the Philippines -T 4

Ninety-five per centum of the quota for foreign countries other

than Cuba and the Eepublic 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 two 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 one per centum of

the quota for foreign countries other than Cuba and the Eepublic

of the Philippines.
SUGAR ACT OF 1948, AS AMENDED 121

(2) For the calendar year 1957 and for each subsequent calendar

year, for foreign countries other than the Republic of the Philippines,

(A) by prorating to Cuba 96 per centum and to other foreign countries 4 per centum of the amount of sugar, raw value, by which eight

million three hundred and fifty thousand shorttons, raw value, or such

lesser amount as determined pursuant to section 201 exceeds the sum of

four million four hundred and forty-four thousand short tons, raw

value, and the quota established pursuant to subsection (b) of this

section; and (B) by prorating 45 per centum of the amount of sugar,

raw^ value, by which the amount determined pursuant to section 201

exceeds the sum of eight million three hundred and fifty thousand

shorttons, raw value, as follows :

Country Per centum

Cuba 29. 59

Peru 4. 33

Dominican RepubUc 4. 95

Mexico ^ 5.10

Other countries 1. 03

45.00

The above proration of 1.03 per centum to foreign countries other than

Cuba, the Eepublic of the Philippines, Peru, the Dominican Eepublic,

and Mexico shall be apportioned to such other countries whose average

entries within the quotas during 1953 and 1954 exceeded one thousand

short tons, raw value, on the basis of the average entries within the

quotas from each such country for the years 1951,1952,1953, and 1954.

(3) For the calendar year 1957 and for each subsequent calendar

year, the proration of 4 per centum under paragraph (2) (A) of this

subsection for foreign countries other than Cuba and the Eepublic of

the Philippines shall be apportioned, first, by assigning to each such

foreign country whose average entries within the quotas during the

years 1953 and 1954 were less than one thousand short tons, raw value,

a proration equal to its average entries within the quotas during 1953

and 1954; second, by assigning to each such foreign country whose

average entries within the quotas during 1953 and 1954 were not less

than one thousand nor more than two thousand short tons, raw value,

a proration of three thousand short tons, raw value ; third, by assigning to each foreign country whose average entries within the quotas

during 1953 and 1954 were more than two thousand and less than three

thousand short tons, raw value, a proration equal to the average entries

from each such country within the quotas during 1953 and 1954, plus

two thousand short tons, raw value; fourth, by assigning to each

JEoreign country whose average entries within the quotas during 1953

and 1954 were not less than three thousand nor more than ten thousand

short tons, raw value, a proration equal to the average entries from

each such country within the quotas during 1953 and 1954 ; and, fifth,

by prorating the balance of such proration to such foreign countries

whose average entries within the quotas during 1953 and 1954 exceeded

ten thousand short tons, raw value, on the basis of the average entries

within the quotas from each such country for the years 1951, 1952,

1953, and 1954. (7U. S. C. 1112 (c) ) _

(d) Notwithstanding the other provisions of this title II, the minimum quota established for Cuba, including increases resulting from
122 SUGAR ACT OF 1948, AS AMENDED

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 seven million four hundred thousand short tons or less ; and

(2) two million one hundred and sixteen thousand short tons,

when the amount of sugar determined under section 201 is more

than seven million four hundred thousand 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) )

(e) Whenever in any year any foreign country with a quota or

proration thereof of more than ten thousand short tons fails to fill such

quota or proration by more than 10 per centum and at any time during

such year the world price of sugar exceeds the domestic price, the

quota or proration thereof for such country for subsequent years shall

be reduced by an amount equal to the amount by which such country

failed to fill its quota or proration thereof, unless the Secretary finds

that such failure was due to crop disaster or force majeure or finds

that such reduction would be contrary to the objectives of this Act.

Any reduction hereunder shall be prorated in the same manner as

deficits are prorated under section 204. (7 Ü. S. C. 1112 (e) )

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 Kico, 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 OF QUOTA DEFICITS

SEC. 204. (a) The Secretary shall from time to time determine

whether, 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

basis of the quotas then in efiect : Provided^ That any deficit in any

domestic sugar-producing area occurring by reason of inability to

market that part of the quota for such area allotted under the provisions of section 202 (a) (2) shall first be prorated to other domestic

areas on the basis of the quotas then in effect. If the Secretary finds

that the 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 pro-
SUGAR ACT OF 1948, AS AMENDED 123

rating an amount of sugar equal to the deficit so determined, as

follows:

ToCuba, 96 per centum; and -, .n T^ .V . .i

To foreign coimtries other than Cuba and the Republic oí the

Philippines, 4 per centum. . , ' . r^ u A

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 dehcit.

Whenever the Secretary finds that any area will be unable to nil 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 nil

such deficit; except that in the case of proration of any such deficit m

any domestic sugar-producing area occurring by reason of inability to

market that part of the quota for such area allotted under and by

reason of section 202 (a) (2), the Secretary shall apportion the unfilled amount on such basis and to such other domestic areas as he

determines is required to fill such deficit, and if he finds that no

domestic area will be able to supply such unfilled amount, he shall add

itto the quota for Cuba. (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 ñlled

on September 1 of the calendar year, he may apportion such unñlled

amount on such basis and to such countries as he determines is required

to fillsuch 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. (7

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 flow 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 alloting 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 marketin 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
124 SUGAR ACT OF 1948, AS AMENDED

from sugar beets or sugarcane to which proprotionate 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. In making such allotments,

the Secretary may also take into consideration and make due allowance

for the adverse effect of drought, storm, flood, freeze, disease, insects, or

other similar abnormal and uncontrollable conditions seriously and

broadly affecting any general area served by the factory or factories of

such person. The Secretary may also, upon such hearing and notice

as he may by regulations prescribe, revise or amend any such allotment

upon the 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

IT. S.C. 1115(b)).

(c) Such appeal shall be taken by filing with said court, within

twenty 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 shaH 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 Washinp--

ton. The Secretary shall thereupon, and in any event not later than

ten days from the date of such service upon him, mail or otherwise

dehver 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 oflice of the

Secretary m the city of Washington. Within thirty days after the

falmg of said appeal the Secretary shall file with the courtthe 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

use nÍ5 rST^^ delivered a copy of said notice of appeal. (7

(d) Within thirty 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

Sl^iÄ^fi.'^'^^ P^'.T^ ""^ '^^y^^^ ^* * ^ ^^Pî^s ^f said notice and statement, both 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
SUGAR ACT OF 1948, AS AMENDED 125

complained of shall be considered an interested party. (7 U. S. C.

^ (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 pi the

court: Provided, however. 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 itshall clearly

appear that the findings of the Secretary are arbitrary or capricious.

The court's judgment shall be final, subject, however, to review by

the Supreme Court of the United States, 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 (e) )

(f) The court may, in its discretion, enter judgment for costs m

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. (7XJ.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 ten 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 twenty-nine thousand six hundred and

sixteen shorttons, raw value, of the quota for Hawaii for any calendar

year, plus an amount equal to the same percentage of twenty-nine

thousand six hundred and sixteen short tons, raw^ value, that the

increase in the quota for Hawaii under section 202 is of one million

fifty-two thousand short tons, raw value, may be filled by directconsumption sugar. (7 U. S. C. 1117 (a) )

{b ) Not more than one hundred and twenty-six thousand and thirtythree short tons, raw value, of the quota for Puerto Rico for any

calendar year may be filled by direct-consumption sugar which shall

be principally of crystalline structure, plus an amount equal to the same

percentage of one hundred twenty-six thousand and thirty-three short

tons, raw value, that the increase in the quota for Puerto Eico under

section 202 is of one million eighty thousand short tons, raw value,

which latter amount may be filled by direct-consumption sugar

whether or not principally of crystalline structure. (7 U. 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 fifty-six thousand short tons of sugar of the

quota for the Eepublic 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 three hundred and seventy-five thousand short

tons, raw value, of the quota for Cuba for any calendar year may be

filled by direct-consumption sugar. (7U. S. C. 1117 (e) )
126 SUGAR ACT OF 1948, AS AMENDED

(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 of the quotas established pursuant to this section, and the enforcement provisions of title II applicable thereto, shall continue in eifect 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) (1) For the calendar year 1956, 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.

(2) For the calendar year 1957 and each subsequent calendar year,

the quota for foreign countries other than Cuba and the Eepublic of

the Philippines may be filled by direct-consumption sugar to the extent

of 1.36 per centum of the amount of sugar determined f)ursuant to

section 201 less the sum of the quotas established in subsections (a) and

(b) of section 202: Provided^ That such limitation shall not apply to

countries receiving prorations under section 202 (c) of seven thousand

short tons or less. The direct-consumption portion of such quota

which is subject to the 1.36 per centum limitation referred to above

shall be prorated to countries which receive prorations under section

202 (c) of more than seven thousand short tons on the basis of average

imports of direct-consumption sugar within the quota for the years

1951,1952,1953, and 1954. (7 U. S. C. 1117 (h) )

LIQUID SUGAR 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 V^Test Indies 300, 000

Other foreign countries . 0

(7 U. S. C. 1118)

PROHIBITED ACTS

SEC. 209. All persons are hereby prohibited—

(a) From bringing or importing into the continental United States

from the Territory of Hawaii, Puerto Eico, 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) )
SUGAR ACT OF 1948, AS AMENDED 127

(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

Eico, 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. (7 U. 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 su^ar, except thatimported

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))

EXFORTATIOlSr 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 j)roration 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 equivalent

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 U. 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^ That 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 ten short tons, raw value, of sugar or liquid sugar imported from

any foreign country, other than Cuba and the Eepublic of the Philip-
128 SUGAR ACT OF 1948, AS AMENDED

pines, in any calendar year; (2) the first ten short tons, raw value,

of sugar or liquid sugar imported from any foreign country, other

than Cuba and the Republic of the Philippines, in any calendar year

for religious, sacramental, educational, or experimental purposes;

(3) liquid sugar imî)orted 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 one and one-tenth 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 PROVISIONS

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 fourteen years shall have been

eniployed 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 fourteen and sixteen 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 eight hours in any one

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 paynients, notwithstanding a failure to comply with the conditions provided in this subsection, but the i)ayments made with respect to any

crop shall be subject to a deduction of $10 for each child for each

day, or a portion of a day, during which such child was employed or

permitted to work contrary to the foregoing provisions of this subsection. (7U. S.C. 1131 (a))

(b) That there shall not have been marketed (or processed), except

for livestock feed, or for the production of livestock feed, as determined

by the Secretary, 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))
SUGAR ACT OF 1948, AS AMENDED 129

(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 m

full for all such work, and shall have been paid wages therefor at rates

Dot 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^ however^ 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. 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 from such crop normally would be marketed. (7 XJ. 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) within

the proportionate share 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 and of the

producers in any local producing area whose past production has been

adversely, seriously, and generally affected by drought, storm, flood,

freeze, disease, insects, or other similar abnormal and uncontrollable

conditions. For the purposes of establishing proportionate shares

412526—57 10
130 SUGAR ACT OF 1948, AS AMENDED

hereunder and in order to encourage wise use of land resources, foster

greater diversification of agricultural production, and promote the

conservation of soil and water resources in Puerto Rico, the Secretary,

on application of any owner of a farm in Puerto Rico, is hereby

authorized, whenever he determines it to be in the public interest and

to facilitate the sale or rental of land for other prodxictive purposes, to

transfer the sugarcane production record for any parcel or parcels of

land in Puerto Rico owned by the applicant to any other parcel or

parcels of land owned by such applicant in Puerto Rico. (7 U. S. C.

(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 U. 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. (7U.S.a 1133) ^'

COMPUTATION OF PAYMENTS AND PERSONS ELIGIBIJE 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.

(7U.S.C.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 U. 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 :
SUGAR ACT OF 1948, AS AMENDED 131

That portion of the quantity of sugar and liquid sugar which is

included within the following intervals of short tons, raw value:

Reduction in the tase rate

0/ payment per hundredweight of auch portion

350 to 700 ^^'^l

700 to 1,000 • «^

1,000 to 1,500 • ^^

1,500 to 3,000 • ;^K

3,000 to 6,000 — • ^i^

6,000 to 12,000 • on^

12,000 to 30,000 • ÎT^

More than 30,000 * ^"

(7 U.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 apphcation 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 mcompentency 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 in 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) )

USE 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 or 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.

(7U.S.C.1137)
132 SUGAR ACT OF 1948, AS AMENDED

TITLE IV—GENEEAL PEOVISIONS

EXPENDITURES BY SECRETARY

SEC. 401. For the purposes of this Act, the Secretary may 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. (7U.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 Act the

funds necessary to make the payments provided for in title III of

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))

(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 in carrying

out the provisions of this Act. (7 U. S. C. 1152 (b) )

(c) The funds made available for the purpose of enabling the Secretary 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 or not more than $100 for each such violation. (7 U. S. C. 1153

(a))

(b) Each determination issued by the Secretary in 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, any
SUGAR ACT OF 1948, AS AMENDED 133

of the remedies or penalties existing at law or in equity, (7 TJ. S. C*

1154)

CIVIL PENALTIES

SEC. 405. (a) 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 imports

into the continental United States direct-consmnption 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, (1) of that quantity

of sugar or liquid sugar by which any quota, proration, or allotment

is exceeded, or (2) 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 (a) )

(b) Any person whose sugar processing operations otherwise meet

the requirements of section 101 (n) and who subjects to such processes

sugar imported or brought into the continental United States under a

declaration that it is raw sugar but which sugar subsequently is determined to be of direct-consumption quality, shall forfeit to the

United States a sum equal to 1 cent per pound for each pound, raw

value, of such sugar in excess of that part of the direct-consumption

portion of the applicable quota or proration or allotment thereof

remaining unfilled at the time of such determination, which forfeiture

shall be recoverable in a civil suit brought in the name of the United

States. (7 U.S. C. 1155(b))

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 IJ. 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 fine^ not more than $10,000 or imprisoned

not more than two years, or both. The provisions of this section shall

not apply to persons whose services are obtained pursuant to section

305. (7U.S.C.1157)

SUSPENSION OF QUOTAS

SEC. 408. Whenever pursuant to the provisions of this Actthe President finds and ^proclaims that a national economic or other emergency
134 SUGAR ACT OF 1948, AS AMENDED

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 hearings, 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 U. S. C. 1160)

SEC. 411. The Secretary is authorized to issue such regulations as

may be necessary to carry out article 7 of the International Sugar

Agreement for the Eegulation of the Production and Marketing of

Sugar (ratified by and with the advice and consent of the United

States Senate on April 29, 1954), restricting importations of sugar

into the United States from foreign countries not participating in

such agreement, or to carry out the corresponding provisions of any

such future agreements ratified by and with the advice and consent of

the United States Senate. (7U.S.C.1161)

TERMINATION OF ACT

SEC. 412. The powers vested in the Secretary under this Act shall

terminate on December 31, 1960, except that the Secretary shall have

power to make payments under title III under programs applicable to

the crop year 1960 and previous crop years. (7 U. S. C. 1101, Note)

EFFECTIVE DATE

SEC. 413. The provisions 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
SUGAR ACT OF 1948, AS AMENDED 135

December 31,1947, except that the Secretary shall have power to make

payments under title III of that Act under programs thereunder applical3le to the crop year 1947 and previous crop years. (7 U. S. C.

1101, Note)

EXCISE TAXES WITH RESPECT TO SUGAE^

INTERNAL REVENUE CODE OF 1954

CHAPTER 37

Subchapter A—Sugar

SEC. 4501. IMPOSITION OF TAX.

(a) GENERAL.—^There is hereby imposed upon manufactured sugar

manufactured in the United States, a tax, to be paid by the manufacturer atthe 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 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.

The manufacturer shall 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 months 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.4ö01(a))

(b) IMPORT TAX.—In addition to any other tax or duty imposed

by law, there is hereby imposed, under such regulations as the Secretary or his delegate shall prescribe, a tax upon articles imported or

broughtinto 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.4501 (b))

2 Only those provisions of the Internal Revenue Code of 1954 which became effective

January 1, 1955, and subsequent amendments which deal directly with sugar are included.

See title 26 of the United States Code for general definitions, time and place for filing

returns and paying taxes, interest, abatements, credits, refunds, etc.
136 SUGAR ACT OF 1948, AS AMENDED

(c) TERMINATION OF TAX.—No tax shall be imposed under this subchapter on the manufacture, use, or importation of sugar or articles

composed in chief value of sugar after June 30, 1961. Notwithstanding the provisions of subsection (a) or (b), no tax shall be imposed

under this subchapter with respect to unsold sugar held by a manufacturer on June 30, 1961, 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 subsection (b) has been

paid and which, on June 30, 1961, 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 Secretary or his delegate, an amount equal to the tax

paid with respect to such sugar or articles composed in chief value

of sugar. (26 U. S. C. 4501 (c) )

SEC. 4502. DEFINITIONS.

For the purposes of this subchapter—

(1) MANUFACTURER.—^Auy pcrson 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 4501 ( a ), the manufacturer of manufactured sugar and, as such, liable for the tax

under section 4501 (a) wâth respect thereto.

(2) PERSON.—The term "person" means an individual partnership, corporation, or association.

(3) 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 m the product) equal to more than 6

per centum of the total soluble solids and except also sirup of cane

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, centrifugarsugar, clarified sugar, turbinado sugar, plantation white sugar, muscovado sugar, refiners' soft sugar, invert

sugar mush, raw sugar, sirups, molasses, and sugar mixtures.

(4) TOTAL SUGARS.—The term "total sugars" means the total

amount of the sucrose and of the reducing or invert sugars.

(5) 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 Eico. (26 U. S. C. 4502)

SEC. 4503. EXEMPTIONS FOR SUGAR MANUFACTURED FOR HOME CONSUMPTION.

No tax shall be required to be paid under sec. 4501 (a) upon the

manufacture of manufactured sugar by or for the producer of the
SUGAR ACT OF 1948, AS AMENDED 137

sugar beets or sugarcane from which such manufactured sugar was

derived, for consumption by the producer's own family, employees,

or household. (26 U. S. C. 4503)

SEC. 4504. IMPORT TAX IMPOSED AS TARIFF DUTY.

The tax imposed by section 4501 (b) shall be levied, assessed, collected, and paid in the same manner as a duty imposed by the Tariff

Act of 1930 (46 Stat. 590 ; 19 TJ. S. C, chapter 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 provisions; 46 Stat. 701; 48 Stat. 943; 19 U. S. C.

1336, 1351) such tax shall not be considered a duty or import restriction, and except that no preference with res][)ect to such tax shall be

accorded any articles imported or brought into the United States,

and except that such tax may be subject to refunds as a tax under

the provisions of section 6418 (a). (26 U. S. C. 4504)

CHAPTER 65—ABATEMENTS, CREDITS, AND REFUNDS

SEC. 6412. FLOOR STOCKS REFUNDS.

(d) SUGAR.—^^Vith respect to any sugar or articles composed in

chief value of sugar upon which tax imposed under section 4501 (b)

has been paid and which, on June 30, 1961, 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 Secretary or his delegate, an amount equal

to the tax paid with respect to such sugar or articles composed in

chief value of sugar. (26 U. S. C. 6412 (d) )

SEC. 6418. SUGAR.

(a) USE AS LIVESTOCK FEED OR FOR DISTILLATION OF ALCOHOL.—

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 Secretary

or his delegate to the person so using such manufactured sugar, or

article manufactured therefrom, the amount of any tax paid under

section 4501 with respect thereto. (26 U. S. C. 6418 (a) )

(b) EXPORTATION.—Upon the exportation from the United States

to a foreign country, or 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 4501 (a) has been paid, the amount of such tax shall be

paid by the Secretary or his delegate 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 article exported, if the consignor waives any
138 SUGAR ACT OF 1948, AS AMENDED

claim thereto in favor of such shipper or manufacturer; except 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 4501 (b) has been or is to be

claimed under any provisions of law made applicable by section 4504.

Í26 U. S. C. 6418 (b))

CHAPTER 66—LIMITATIONS

SEC. 6511. LIMITATIONS ON CREDIT OR REFUND.

na H« * * * *

(e) SPECIAL RULES IN CASE OF MANUFACTURED SUGAR.—

(1) USE AS LIVESTOCK FEED OR FOR DISTILLATION OF ALCOHOL.—

No payment shall be allowed under section 6418 (a) unless within

2 years after the right to such payment has accrued a claim therefor is filed by the person entitled thereto.

(2) EXPORTATION.—No payment shall be allowed under section

6418 (b) unless within 2 years after the right to such payment

has accrued a claim therefor is filed by the person entitled thereto.

(26U.S.C.6511 (e))

CHAPTER 75—CRIMES, OTHER OFFENSES, AND

FORFEITURES

SEC 7240. OFFICIALS INVESTING OR SPECULATING IN SUGAR.

Any person, while acting in an official capacity in the administration

of subchapter A of chapter 37, relating to manufactured sugar, who

invests or speculates in sugar or liquid sugar, contracts relating thereto, or the stock or membershij) interests of any association or corporation engaged in the production or manufacture of sugar or liquid

sugar, shall be dismissed from office or discharged from employment

and shall be guilty of a felony and, upon conviction thereof, be fined

not more than $10,000, or imprisoned not more than 2 years, or both.

(26U.S.C.7240)
PART VI

PRICE SUPPORT, EXPORT AND SURPLUS REMOVAL

SUBPART A—LEGAL HISTORY AND CHARTER OF COMMODITY CREDIT

CORPORATION

LEGAL HISTORY OF COMMODITY CREDIT 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. 7l3a), the Corporation's capitalization was increased to $100,000,000, the additional

$97,000,000 of the Corporation's stock being acquired by the Eeconstruction Finance Corporation. By section 3 of the act of March 8,

1938 (15 U. S. C. 713a-3) j the Secretary of Agriculture, the Governor

of the Farm Credit Administration, and the Eeconstruction 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 Corporatit)n, 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

139
140 PRICE SUPPORT, EXPORT AND SURPLUS REMOVAL

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

Credit Corporation was incorporated as a Federal corporation by the

Commodity Credit Corporation Charter Act (p. 141) (P. L. 806, SOth

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 the 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.
COMMODITY CREDIT CORPORATION CHARTER ACT ^

AN ACT

To Provide a Federal Charter for the Commodity Credit Corporation

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

United States of America m Congress assembled^ That this Act may

be cited as the "Commodity Credit Corporation Charter Act." (15

Ü.S.C. 714 note)

SEC. 2. CREATION AKD PTJUPOSES.—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"). (15U.S.C.714)

SEC. 3. OFFICES.—The Corporation may establish offices in such

place or places as it may deem necessary or desirable in the conduct of

its business. (15U.S. C.7l4a)

SEC. 4. GENERAL POWERS.—The Corporation—

(a) Shall have succession in its corporate name. (15 U. S. C.

714b (a))

(b) May adopt, alter, and use a corporate seal, which shall be

judiciallynoticed. (15 XJ. 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

oi any Territory or possession, shall have exclusive original jurisdiction, without regard to the amount in controversy,^of all suits brought

by or against the Corporation : Fromded^T\i2X 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. ISTo suit by or against the Corporation shall

be allowed unless (1) it shall have been brought within six 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

J Approved June 29, 1948, Public Law 806, 80tli Con??., 62 Stat. 1070; 15 U. S. C. 714.

2 Prior to areendment by the act-of June 7, 1949, Public Law 85, 81st Cong., 63 Stat. 154,

the balance of the sentonce read "direction and control of its Board of Directors."

3 This phrase was added by the act of June 7, 1949,

141
142 COMMODITY CREDIT CORPORATION CHARTER ACT

or beyond the seas at the time the right accrued, the suit shall have

been brought within three years after the disability shall have ceased

or within six 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 deJEendant'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

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, T9th 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 oased 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. 714b (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. 7l4b (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

*This and the preceding sentence were substituted by the act of June 7, 1949, Public

I<aw 85, 81st Cong., 63 Stat. 154, for the sentence reading "No suit by or against the Goxporation shall be allowed unless it shall have been brought within four years after the right

Rccrued on which suit Is brought." ^^ « ^«.«

6 The balance of the sentence was added by the act of June 7,1949.

8 The balance of subsection (h) was substituted for previous language by the act of

June 7. 1949.
COMMODITY CREDIT CORPORATION CHARTER ACT 143

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 hj the Corporation for the purpose of acquiring real

property, or any interest therein, in order to provide storage facilities

tor 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 storag^e facilities shall be constructed or purchased except with

funds specifically provided by Congress for that purpose : And provided fv/rther^ That nothing contained in this subsectipn (h) 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^ That

to 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

stimulate 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 Commodity 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 trans-

' See Section 417 of the Agricultural Act of 1949 relating to loans by the Banks for

Cooperatives to cooperative associations to finance construction of structures for storage

of agricultural commodities if Commodity Credit Corporation has agreed to lease or

giiarantee utilization of 75 percent of the storage space.

* See also sec. 303 of the Agricultural Trade Development and Assistance Act of 1954,

sec. 103 of the Agricultural Act of 1954, and sec. 206 of the Agricultural Act of 1956,

relating to barters and exchanges of agricultural commodities owned by Commodity Credit Corporation.

I "Department of Defense" substituted for "National Military Establishment" by the

act of August 10, 1949, Public Law 216, 81st Cong., 63 Stat. 578, 591. Under Reorganization Plan No. 3 of 1953 (18 F. R. 3375), this authority was transferred to the Director of the Office of Defense Mobilization.
144 COMMODITY CREDIT CORPORATION CHARTER ACT

ferred 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 thé 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. (15U.S.C.7l4b (h) )

(i) May borrow money subject to any provision of law applicable

to the Corporation : Provided^ Thatthe 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 $14,500,000,000.^^

The Corporation shall at all times reserve a sufficient amount of its

authorized borrowing power which, 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. (15U. S. C.714b (j))

(k) Shall have authority to make final and conclusive settlement

and adjustment of any claims by or against the Corporation or the

accounts of itsfiscal officers. ( 15 U. S. C. 7l4b (k) )

(1) May make such loans and advances of its funds as are necessary

in the conduct of its business. ( 15 U. S. C. 714b (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 conservation 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 U. S. C. 7l4b (m) )

SEC. 5. SPECIFIC POWERS.—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

(31U. 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

10 This function was transferred to the Administrator of General Services by sec. 102 of

the act of June 30, 1949, Public Law 152, 81st Cong., 63 Stat. 380; 5 U. S. C. 630a.

" Borrowing power increased from $4,750,000,000 to $6,750,000,000 by the act of June

28, 1950, Public Law 579, 81st Cong., 64 Stat. 261 ; to $8,500,000,000 by the act of March

20, 1954, Public Law 312, 83d Cong., 68 Stat. 30 ; to $10,000,000,000 by the act of August

31, 1954, Public Law 754, 83d Cong., 6S Stat. 1047 ; to $12,000,000,000 by the act of

August 11, 1955, Public Law 344, 84th Cong., 69 Stat. 634 ; and to $14,500,000,000 by

the act of August 1, 1956. Public Law 864, 84th Cong., 70 Stat. 783.
COMMODITY CREDIT CORPORATION CHARTER ACT 145

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) Carrjr 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)). (15U. S.C.714d)

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 United States Treasury on the

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 (U. 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. 714e)

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

otiierwise acquired by it. (15 U. S. C. 7l4f)

SEC. 9. DIRECTORS, 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 general supervision 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

412526—57 11
14Í5 COMMODITY CREDIT CORPORATION CHARTER ACT

receive compensation at such rate not in excess of the maximum then

payable under the [CLASSIIT:CATION^ 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. (15 U. S. C. 714g (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 at the call of the Secretary, who

shall requireit to meet not less often than once each ninety 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 commg 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 [Classification Act of

1949] ^^ (15U.S.C.714h)^^

SEC. 11. COOPERATION WITH OTHER GOVERNMENTAL AGENCIES.—

The Corporation may, with the consent of the agency concerned, accept aiid utilize, on a compensated or uncompjensated 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

transfeir to stich 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, with

the consent of the Corporatioii, be utilized on a reimbursable basis

by any agency of the Federal Government, including any bureau, office.

^ As originally enacted, sees. 9 and 10 referred to the Classification Act of 192S, as

amended, which was repealed and superseded by the Glassification Act of 1949 (approved

October 28, 1949, Public Law 429, 81st Cong., 63 Stat. 954 ; 5 U. S. C. 1071).

13 The provisions of this section were substituted for the previous provisions by the act

of June 7, 1949, Public Law 85, 81st Gong., 63 Stat. 154, 155.

"The provisions of this section were substituted for the previous provisions by the

act of June 7,1949, Public I^aw 85, 81st Cong., 63 Stat. 154, 156.
COMMODITY CREDIT CORPORATION CHARTER ACT 147

administration, or other agency of the Department of Agricnlture, in

the performance of any part or all of the functions of such agency.

(15U.S.C.714Í) rrx. T. rr.

SEC. 12. UTILIZATION OF ASSOCIATIONS AND THADE FACILITIES.—ine

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.

(15U. S. C.714J) ....

SEC. 13. EECORDS; ANNUAL EEPORT.—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.—^The 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. 714Z)

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 the 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 five years, or both. (15

U.S.a714m (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,

whether belonging to the Corporation or pledged, or otherwise entrusted to it; or (ii) 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 five

years, or both. (15 U. S. Ö. 714m (b))
148 COMMODITY CREDIT CORPORATION CHARTER ACT

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, or any property

mortgaged or pledged as security for any promissory note, or other

evidence of indebtedness, which the Corporation has guaranteed or is

obligated to purchase upon tender, shall, upon conviction thereof, if

such property be of an amount or value in excess of $500, be punished

by a fine of not more than $10,000 or by imprisonment for not more

than five years, or both, and, if such property be of an amount or value

of $500 or less, be punished by a fine of not more than $1,000 or by

imprisonment for not more than one year, or both. (15 U. S. C.

714m (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: Provided^ 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 Ü. 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) No 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 one year, or both. (15 TJ. S. C.

7ltoi(f))-

SEC. 16. TRANSFER OF ASSETS OF COMMODITY CREDIT CORPORATION,

A DELAWARE CORPORATION.—^The assets, funds, property, and records

^ 15 Substituted for original provisions of this subsection by the act of August 1, 1956, Public Law 864, 84th Cong., 70 Stat. 783.

"Subsec. (f) added by the act of June 7, 1949, Public Law 85, 81st Cong., 63 Stat. 154, 157.
COMMODITY CREDIT CORPORATION CHARTER ACT 149

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 Coi-poration. (15

U. S. C. 7l4n)

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. (15Ü. S.C.TMö)^^

SEC. 18. EFFECTIVE DATE.—This Act shall take effect as of midnight

June 30,1948. ( 15 U. S. C. 714 note)

SEC. 19. EELEASE OF INNOCENT PURCHASERS OF CONVERTED GOODS.—

A buyer in the ordinary course of business of fungible goods heretofore

or hereafter sold and physically delivered by a warehouseman or

other dealer who was regularly engaged in the business of buying and

selling such goods shall take or be deemed to have taken such goods

free of any claim, existing or hereafter arising, by Commodity Credit

Corporation, based on the want of authority in the seller to sell such

goods, provided the buyer purchased such goods for value in good faith

and did not know or have reason to know of any defect in the seller's

authority to sell such goods. To be entitled to relief under this section a buyer must assert as an affirmative defense and establish by a

preponderance of the evidence the facts necessary to entitle him to

such relief. (15U. S. C. 7l4p)^«

" The Delaware Corporation was dissolved under the laws of the State of Delaware,

effective 9 a. m,, September 15, 1948.

18 See. 19 added by Public Law 43, 84th Cong., 69 Stat. 65.
SUBPART B—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. 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; 7 U. S. C. 1359) (providing

for loans on peanuts).

The Act of May 26, 1941, as amended (55 Stat. 203, 55 Stat. 860;

7 U. S. C. 1330, 1340) (providing for loans on basic commodities

through the 1946 crop).

Section 4 of the Act of July 1, 1941, as amended (55 Stat. 498, 56

Stat. 768; 15 U. S. C. 713a-8) (the so-called "Steagall amendment",

which provided that if the Secretary of Agriculture issued an announcement requesting the expansion of production of a non-basic

agricultural commodity, he should provide price support on such

commodity for two years afterWorld War II).

Section 8 of the Stabilization Act of 1942, as amended (56 Stat. 767,

58 Stat.'643, 58 Stat. 784; 50 tJ. S. C. App. 968) (providing for loans

on basic commodities for two years after World War II).

The Act of July 28, 1945 (59 Stat. 506; 7 U. S. C, 1312 note) (set

forth on p. 153 of this compilation, providing for loans on tobacco).

The Act of August 5,1947, as amended (61 Stat. 769, 6^ Stat. 1248 ;

15 U. S. C. 7l3a-8 note) (providing for price support on wool).

Much of this legislation expired with the termination of the wartime emergency and was succeeded by the Agricultural Act of 1948 (62

Stat. 1247). The Agricultural Act of 1949 (p. 151) (7 U. S. C. 1421)

superseded or repealed prior legislation, effective for the 1950 and

subsequent crop years. The Agricultural Act of 1954 (p. 168) and the

Agricultural Act of 1956 (p. 180) made significant changes in the 1949

Act,

Throughout the periods discussed, the Commodity Credit Corporation has been the chief instrumentality in making price support available to producers. Export and surplus removal programs operated

under Section 32 of Public Law 320, 74th Congress (p. 197), are also

utilized as a means of price support.

150
AGRICULTURAL ACT OF 1949/ AS AMENDED

AN ACT

To stabilize prices of agricultural commodities.

Be it enacted ly the Senate and Home of Representatives of the

united States of America in Congress assembled^ That this Act may

be cited as the "Agricultural Act of 1949." (7 U. S. C. 1421 note)

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

le 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 SS

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 8S

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))

1 Approved October 31, 1949, Public Law 439, 81st Gong,, 63 Stat. 1051.

1Ö1
152 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

he not less than the

following percentage of

the parity price:

Not more than 108_ 90

More than 108 but not more than 110 89

More than 110 but not more than 112 88

More than 112 but not more than 114 87

More than 114 but not more than 116 86

More than 116 but not more than 118 85

More than 118 but not more than 120 84

More than 120 but not more than 122 ^- 83

More than 122 but not more than 124 82

More than 124 but not more than 125 81

More than 125 but not more than 126 80

More than 126 but not more than 127 —- 79

More than 127 but not more than 128 : 78

More than 128 but not more than 129 77

More than 129 but not more than 130 76

More than 130 75

(7U.S.C.1441 (b))

(c) For tobacco, if marketing quotas are in effect, the level of support shall be 90 percentum 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 supportto 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 i^er

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 cornproducing area ;

(5) price support may be made available to noncooperators at

such levels, not m excess of the level of price support to cooperators, as the Secretary determines will facilitate the effective operation of the program.

(6) Except as provided in subsection (c) and section 402, the

level of support to cooperators shall be not more than 90 per

centum and not less than 82^^ per centum of the parity price for

the 1955 crop of any basic agricultural commodity with respect

to which producers have not disapproved marketing quotas;
AGRICULTURAL ACT OF 1949, AS AMENDED 153

within such limits, the minimum level of support shall be fixed

as provided in subsections (a) and (b) of this section.^ ^

(7) Where a State is designated under section 335 (e) of the

Agricultural Adjustment Act of 1938, as amended, as outside the

commercial wheat-producing area for any crop of wheat, the level

of price support for wheat to cooperators in such State for such

crop of wheat shall be 75 per centum of the level of price support

to cooperators in the commercial wheat-producing area. (7

U.S.C.1441(d))^ , ' . ^

(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.

(7Ü.S.C.lMl(e))

[LOANS ON TOBACCO—Act of July 28, 1945—Sec. 2. Notwithstanding 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,

m 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., 59 Stat. 506 ;

7U.S.C.1312note)]

(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, notwithstanding any of the foregoing provisions of section 101 of this Act, the level of support to

cooperators for the 1955 and each subsequent crop of extra long

staple cotton, if producers have not disapproved marketing quotas

therefor, shall be the minimum level specified in section 101 (b) of

this Act for the supply percentage for extra long staple cotton as of

the beginning of the marketing year for the crop. 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. (7 Ü. S. C.

1441 (f))^

2 Prior to amendment by subsec. 201 (a) of the Agricultural Act of 1954, par. (6)

(added by the act of July 17, 1952, Public Law 585, 82d Cong., 66 Stat. 758, 759) read:

"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."

»Par. (7) added by subsec. 201 (b) of the Agricultural Act of 1954. ^

*The balance of the sentence was substituted for the previous language by sec. 202

of the Agricultural Act of 1954. ^ ' ^

5 Subsec. (f) added by the act of July 17, 1952, Public Law 585, 82d Cong., 66 Stat. 758,

759.
154 AGRICULTURAL ACT OF 1949, AS AMENDED

[ACREAGE REQUIREMENTS FOR PRICE SUPPORT ON CORN AND OTHER FEED

GRAINS—AGRICULTURAL ACT OF 1956—SEC. 308. (a) Notwithstanding

any other provision of law, whenever base acreages are in effect for

corn,* the Secretary shall require, as a condition of eligibility for price

support on corn, that the producer (1) devote an acreage of cropland

(tilled m normal rotation), at the option of the producer, to either the

acreage reserve program for corn or the conservation reserve program,

equal to 15 per centum of such producer's farm base acreage for corn,

and (2) not exceed such farm base acreage for corn : Pro'vided^ That

price support may be made available to any producer who does not

meetthe foregoing requirements at such level, not in excess of the level

of price support to producers who meet such requirements, as the

Secretary determines will facilitate the effective operation of the price

support program. Corn acreage allotments shall not be effective for

the 1956 crop.

(b) Not later than December 15, 1956, the Secretary shall conduct

a referendum of producers of corn in 1956 in the commercial cornproducing area to determine whether such producers favor a pricesupport program as provided in subsection (c) of this section for the

1957 and subsequent crops in lieu of acreage allotments as provided in

the Agricultural Adjustment Act of 1938, as amended, and price support as provided in section 101 of the Agricultural Act of 1949, as

amended.

(c) Notwithstanding any other provision of law, if two-thirds or

more of the producers voting in the referendum conducted pursuant

to subsection (b) hereof favor a price-support program as provided

in this subsection (c), no acreage allotment of corn shall b-e established for the commercial corn-producing area for any county, or for

any farm, with respect to the 1957 and subsequent crops, and price

support made available for such crops by Commodity Credit Corporation shall be at such level as the Secretary determines will assist producers in marketing corn in the normal channels of trade but not

encourage the uneconomic production of corn.

(d) Notwithstanding any other provision of law, (1) the level of

price support for the 1956 crop of grain sorghums, barley, rye, and

oats, respectively, shall be 76 per centum of the parity price for the

commodity as of May 1,1956, (2) the level of price support for corn

produced outside the commercial corn-producing area, for any crop

for which base acreages are in effect (except as provided in (3) below),

shall be 82i/^ per centum of the level of price support for corn in the

commercial corn-producing area to producers complying with acreage

limitations, and (3) if price support is made available for the 1957

crop of corn in the commercial corn-producing area to producers not

complying with acreage limitations, price support shall be made available for the 1957 crop of grain sorghums, barley, rye, oats, and corn

produced outside the commercial corn-producing area, respectively,

at a level, not less than 70 per centum of the parity price as of the

beginning of the marketing year, determined by the Secretary to be

fair and reasonable in relation to the level at which price support is

made available for corn in the commercial corn-producing area to

producers not complying with acreage limitations, taking into consid-

*See sec. 103 (b) of the SoU Bank Act (p. 95).
AGRICULTURAL ACT OF 1949, AS AMENDED 155

eration the normal price relationships between such commodity and

corn in the commercial area, the feed value of such commodity m relation to corn, the supply of such commodity in relation to the demand

therefor, and the ability to dispose of stocks of such commodity

acquired through price support programs.]

TITLE II—DESIGNATED NONBASIC AGKICULTUEAL

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 ^ tung nuts, honey,^ milk, butterfat, and the products of

milk and butterfat as follows :

(b) The price of tung nuts and honey,^ 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 necesary in order to assure an adequate supply. Such price support shall be provided through loans

on, or purchases of, milk and the products of milk and butterfat, and

for the period ending March 31,1956, surplus stocks of dairy products

owned by the Commodity Credit Corporation may be disposed of by

any methods determined necessary by the Secretary. For the period

beginning September 1,1954, and ending June 30, 1955, not to exceed

$50,000,000, and for the fiscal year ending June 30,1956, not to exceed

$60,000,000, and for each of the two fiscal years in the period beginning

July 1,1956, and ending June 30,1958, not to exceed $75,000,000, of the

funds of the Commodity Credit Corporation shall be used to increase

the consumption of fluid milk by children in (1) nonprofit schools of

high-school grade and under; and in (2) nonprofit nursery schools,

child-care centers, settlement houses, summer camps, and similar nonprofit institutions devoted to the care and training of children. (7

TJ. S. C. 1M6)«

SEC. 202. As a means of increasing the utilization of dairy products,

(including for purposes of this section, milk) upon the certification

by the Administrator of Veterans' Affairs or b}- the Secretary of the

Army, acting for the military departments Uiuder the Department of

Defense's Single Service Purchase Assignment for Subsistence, or

their duly authorized representatives that the usual quantities of dairy

products have been purchased in the normal channels of trade—

« Sec. 709 of the Agricultural Act of 1954 (p. 174) amended this section by deleting the

reference to wool in the first sentence and repealed subsec. (a), which provided for price

support on wool, effective April 1, 1955. Beginning on that date, price support on wool

has been made available under Title VII—^National Wool Act of 1954 of the Agricultural

Act of 1954, p. 171 of this compilation.

7 Sec. 203 of the Agricultural Act of 1954 (p. 168) amended this section by deleting

references to potatoes in the first sentence and in subsection (b) and also repealed section

5 of the act of March 31, 1950, which prohibited price support on Irish potatoes unless

marketing quotas were in effect.

The provisions of subsec. (c) were substituted for the previous provisions by sec. 204

(b) of the Agricultural Act of 1954. The last sentence was substituted by the act of

July 20, 1956, Public I/ftW T52, 84th Cong., 70 Stat. 596, for the previous provision.
156 AGRICULTURAL ACT OF 1949, AS AMENDED

(a) The Commodity Credit Corporation imtil December 31, 1958,^

shall make available to the Administrator of Veterans' Affairs at

warehouses where dairy products are stored, such dairy products acquired under price-support programs as the Administrator certifies

that he requires in order to provide butter and cheese and other dairy

products as a part of the ration in hospitals under his jurisdiction.

The Administrator shall report monthly to the Committees on Agriculture of the Senate and House of Eepresentatives and the Secretary

of Agriculture the amount of dairy products used undecr this

subsection.

(b) The Commodity Credit Corporation until December 31, 1958,^

shall make available to the Secretary of the Army, at warehouses

where dairy products are stored, such dairy products acquired under

price-support programs as the Secretary of the Army or his duly

authorized representative certifies can be utilized in order to provide

additional butter and cheese and other dairy products as a part of the

ration of the Army, Navy, or Air Force, and as a part of the ration in

hospitals under the jurisdiction of the Department of Defense. The

Secretary of the Army shall report every six months to the Committees

on Agriculture of the Senate and the House of Representatives and

the Secretary of Agriculture the amount of dairy products used under

this subsection.

(c) Dairy products made available under this section shall be made

available without charge, except that the Secretary of the Army or the

Administrator of Veterans' Affairs shall pay the Commodity Credit

Corporation the costs of packaging incurred in making such products

so available.

(d) The obligation of the Commodity Credit Corporation to make

dairy products available pursuant to the above shall be limited to dairy

products acquired by the Corporation through price-support operations and not disposed of under provisions (1) and (2) of section 416

of this Act, as amended. (7 XJ. S. C. 1446a) ^^

[MILK AND DAIRY PRODUCTS—Agricultural Act of 1954—Sec. 204.

(a) The production and use of abundant supplies of high quality

milk and dairy products are essential to the health and general welfare

of the Nation ; a dependable domestic source of supply of these foods

in the form of high grade dairy herds and modern sanitary dairy

equipment is important to the national defense ; and an economically

sound dairy industry affects beneficially the economy of the country as

a whole. It is the policy of Congress to assure a stabilized annual

production of adequate supplies or milk and dairy products; to promote the increased use of these essential foods; to improve the domestic

source of supply of milk and butterfat by encouraging dairy farmers

to develop efficient production units consisting of high-grade, diseasefree cattle and modern sanitary equipment; and to stabilize the economy of dairy farmers at a level which will provide a fair return for

their labor and investment when compared with the cost of things that

farmers buy. (7 U. S. C. 1446b)

» "1958" substituted for "1956" by the act of April 2, 1956, Public I^^w 465, 84th Cong., 70 Stat. 86, 87.

^0 Sec. 202 added bj s^c, .204 (d) of the Agricultural Act of 1954.
ÀoniCtTLTtJiaAL ACT OlP 1949, AS AMENDED 15?

[(c) In order to prevent the accumulation of excessive inventories

of dairy products the Secretary of Agriculture shall undertake domestic disposal programs under authorities granted in the Agricultural

Adjustment Act of 1938 and the Agricultural Act of 1949, as amended,

or as otherwise authorized by law. (7 U. S. C. 144:6c) ]

SEC. 203. Whenever the price of either cottonseed or soybeans is

supported under this Act, the price of the other shall be supported at

such level as the Secretary determines will cause them to compete on

equal terms on the market.^^

TITLE III—OTHER NONBASIC AGEICULTURAL

COMMODITIES

SEC. 301. The Secretary is authorized to make available through

loans, purchases, or other operations price support to producers for

any nonbasic agricultural commodity not designated in title II at a

level not in excess of 90 per centum of the parity price for the commodity. (7 U.S. 0.1447)

SEC. 302. Without restricting price support to those commodities

for which a marketing quota or marketing agreement or order program

is in effect, price support shall, insofar as 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

he 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 : 7ß

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

programs and consideration of the other factors specified in section

401 (b), determines that such lower level is desirable and proper.

(7U. S.O. 1448)

11 Sec. 203 added by sec. 601 of the Agricultural Act of 1956.
158 AGRICULTURAL ACT OF 1949, AS AMENDED

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. 4Ô1. (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

in determining, in the case of 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 to 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.^^ In administering any program for diverted acres the Secretary may make his regulations apElicable on an appropriate geographical basis. Such regulations shall

e administered (1) m semiarid or other areas where good husbandry

requires maintenance of a prudent feed reserve in such manner as to

permit, to the extent so required by good husbandry, the production

of forage crops for storage and subsequent use either on the farm or

in feeding operations of the farm operator, and (2) in areas declared

to be disaster areas by the President under Public Law 875, Eightyfirst Congress, in such manner as will most quickly restore the normal

pattern of their agriculture. (7 XJ. S. C. 1421 (c) )

'2 Balance of subsection added bj^ sec. 206 of the Agricultural Act of 1954.
AGRICULTURAL ACT OF 1949, AS AMENDED 159

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) )

PROCESSOR PROGRAMS

(e) Whenever any price support or surplus removal operation for

any agricultural commodity is carried out through purchases from or

loans or payments to processors, the Secretary shall, to the extent

practicable, obtain from the processors such assurances as he deems

adequate that the producers of the agricultural commodity involved

have received or will receive maximum benefits from the price support

or surplus removal operation. (7 XJ. S. C. 1421 (e) )^^

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 agricultural 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 U. 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 made 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 seven-eighths-mch cotton shall be the standard

grade for purposes of parity and price support. (7 TJ. S. C. 1423)

[STANDARD GRADE FOR COTTON—Act of August 29,1949—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. (P. L. 272, 81st Cong., 63 Stat. 670, 676; 7 XJ. S. C.

1301)3

UTILIZATION OF SERVICES AND FACILITIES OF OCC

SEC. 404. The Secretary, in carrying out programs under section

32 of Public Law Numbered 320, Seventy-fourth Congress, approved

3^ Subseç. (e) added by sec. 207 of the Agricultural Act of 1954.
160 AGRICULTURAL ACT OF 1949, AS AMENDED

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 TJ. S. C. 1424)

NONRECOURSE LOANS

SEO. 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 IJ. S. C. 1425)

ADVANCE ANNOUNCEMENT

SEC. 40.6. 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 price support when determined, is less than the level so announced. (7 U. S. C.

1426)

RESTRICTIONS ON SALES BY CCC

SEC. 407. The Commodity Credit Corporation may sell any farm

commodity owned or controlled bv 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
AGRICULTURAL ACT OF 1949, AS AMENDED 161

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.

Notwithstanding the foregoing, the Corporation, on such terms and

conditions as the Secretary may deem in the public interest, shall make

available any farm commodity or product thereof owned or controlled

by it for use in relieving distress (1) in any area in the United States

declared by the President to be an acute distress area because of unemployment or other economic cause if the President finds that such

use will not displace or interfere with normal marketing of agricultural commodities and (2) in connection with any major disaster

determined by the President to warrant assistance by the Federal

Government under Public Law 875, Eighty-first Congress, as amended

(42 U. S. C. 1855). Except on a reimbursable basis, the Corporation

shall not bear any costs in connection with making such commodity

available beyond the cost of the commodities to the Corporation in

store and the handling and transportation costs in making delivery

of the commodity to designated agencies at one or more central locations in each State.^^ Nor shall the foregoing restrictions apply to

sales of commodities the disposition of which is desirable in the interest of the effective and efficient conduct of the Corporation's operations because of the small quantities involved, or because of age,

location or questionable continued storability, but such sales shall be

offset by such purchases of commodities as the Corporation determines

are necessary to prevent such sales from substantially impairing any

price-support program, but in no event shall the purchase price exceed

the then current support price for such commodities.^^ For the

purposes of this section, sales for export shall not only include sales

made on condition that the identical commodities sold be exported, but

shall also include sales made on condition that commodities of the

same kind and of comparable value or quantity be exported, either

in raw or processed form.^^ (7 U. S. C. 1427)

[Act of April 6, 1949—Sec. 2. * * *

(d) The Secretary is authorized in connection with any major

disaster determined by the President to warrant assistance by the

Federal Government under Public Law 875, Eighty-first Congress (42

TJ. S. C. 1855), as amended, to furnish to established farmers, ranchers, or stockmen feed for livestock or seeds for planting for such

period or periods of time and under such terms and conditions as the

Secretary may determine to be required by the nature and effect of

the disaster. The Secretary may utilize the personnel, facilities,

property, and funds of any agency of the United States Department

of Agriculture, including Commodity Credit Corporation, for carrying out these functions and shall reimburse the agencies so utilized

for the value of any commodities furnished which are not paid for

by the farmers or ranchmen, and for costs and administrative ex1* The two precedini? sentences were added by sec. 301 of the Agricultural Trade Development and Assistance Act of 1954 (p. 190). oo^ r. ao

15 This sentence was added by the act of July 29, 1954, Public Law 554, 83d Cong., 68

18 This 'sentence was added by the act of January 28, 1956, Public Law 395, 84th Cong.,,

70 Stat. 6.

412526—57 ^12
162 AGRICULTURAL ACT OF 1949, AS AMENDED

penses necessary in performing such functions. (P. L. 38, 81st Cong.,

63 Stat. 43, as amended by the Act of July 14, 1953, P. L. 115, 83d

Cong., 67 Stat. 149 ; 12 U. S. C 1148a-2)]

[Act of September 30, 1950—Sec. 2. As used in this Act, the following terms shall be construed as follows unless a contrary intent appears from the context:

(a) "Major disaster" means any flood, drought, fire, hurricane,

earthquake, storm, or other catastrophe in any part of the United

States which, in the determination of the President, is or threatens

to be of sufficient severity and magnitude to warrant disaster assistance by the Federal Government to supplement the efforts and available resources of States and local governments in alleviating the damage, hardship, or suffering caused thereby, and respecting which the

governor of any State (or the Board of Commissioners of the District of Columbia) in which such catastrophe may occur or threaten

certifies the need for disaster assistance under this Act, and shall give

assurance of expenditure of a reasonable amount of the funds of the

government of such State, local governments therein, or other agencies, for the same or similar purposes with respect to such catastrophe ;

(b) "United States" includes the District of Columbia, Alaska,

Hawaii, Puerto Eico, and the Virgin Islands;

(c) "State" means any State in the United States, Alaska, Hawaii,

Puerto Eico, and the Virgin Islands.

(d) "Governor" means the chief executive of any State;

(e) "Local government" means any county, city, village, town, district, or other political subdivision of any State, or the District of

Columbia;

(f) "Federal agency" means any department, independent establishment. Government corporation, or other agency of the executive

branch of the Federal Government, excepting, however, the American

National Eed Cross. ^ (42 U. S. C. 1855a)

SEC. 3. In any major disaster. Federal agencies are hereby authorized when directed by the President to provide assistance (a) by utilizing or lending with or without compensation therefor, to States

and local governments their equipment, supplies, facilities, personnel,

and other resources, other than the extension of credit under the authority of any Act; * * * (c) by donating or lending equipment and

supplies, determined under then existing law to be surplus to the

needs and responsibilities of the Federal Government, to States for

use or distribution by them for the purposes of the Act including the

restoration of public facilities damaged or destroyed in such major

disaster and essential rehabilitation of individuals in need as the result of such major disaster; * * * The authority conferred by this

Act, and any funds provided hereunder shall be supplementary to,

and not in substitution for, nor in limitation of, any other authority

conferred or funds provided auider any other law. Any funds received by Federal agencies as reimbursement for services or supplies

furnished under the authority of this section shall be deposited to the

credit of the appropriation or appropriations currently available for

such services or supplies. The Federal Government shall not be liable

for any claim based upon the exercise or performance or the failure

to exercise or perform a discretionary function or duty on the part

of a Federal agency or an employee of the Government in carrying
AGRICULTURAL ACT OF 1949, AS AMENDED 163

out the provisions of this section. (P. L. 875, 81st Cong., 64 Stat.

1109 ; as amended by the Act of July 17, 1953, P. L. 134, 83d Cong.,

67 Stat. 180; 42 U. S. C. 1855b)]

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 or wheatto a producer

outside the commercial corn-producing or wheat-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) )^®

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) )

1^ The words "or wheat" and "or wheat-producing" were added by sec. 209 of the Agricultural Act of 1954.

18 See sec. 374 (c) of the Agricultural Adjustment Act of 1938 as to adjusting planted

acreage.
164 AGHICÜLTÜRAL ACT OP 1Ô49, AÖ AMENDED

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) )

CARRY-OVER ^^

(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) ) ^o

NORMAL SUPPLY ^^

(h) "Normal 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) )

MARKETING YEAR ^^

(i) "Marketing year" for any nonbasic agricultural commodity

means any period determined by the Secretary during which 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 OP 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(i))

" See sec. 301 (b) of the Agricultural Adjustment Act of 1938 for definitions applicable

to basic commodities.

20 See also sec. 105 of the Agricultural Act of 1954 excluding set-aside commodities in

the computation of ''carrj^-over. '
AGRICULTURAL ACT OF 1949, AS AMENDED 165

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 TJ. S. C. 7l3a-4) relating to the borrowing

power of Commodity Credit Corporation. This act appears in this

subpart, on p. 175.]

SEC. 411. [This section contains an amendment to section 32 of

Public Law 320, 74th Congress. This statute appears in subpart C

of this part VI, on p. 197.]

DETERMINATIONS BT 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)

WHEN PRICE SUPPORT PROVISIONS EFFECTIVE

SEC. 413. This Act shall not be effective with respect to price support operations for any agricultural commodity for any marketing

year or season commencing prior to January 1, 1950, except to the

extent that the Secretary of Agriculture shall, without reducing price

support theretofore undertaken or announced, elect to apply the provisions of this Act. (7 U. S. C. 1430)

REPEAL OF PREVIOUS LEGISLATION

SEC. 414. Section 302 of the Agricultural Adjustment Act of 1938, as

amended, and any provision of law in conñict with the provisions of

this Act are hereby repealed. (7 U. S. C; 1421 note)

SEC. 415. [This section contains provisions relating to the effective

date of certain provisions of 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 commodities acquired

through price-support operations by the Commodity Credit Corporation before they can be disposed of in normal domestic channels without impairment of the price-support program or sold abroad at

competitive world prices, the Commodity Credit Corporation is authorized, on such terms and under such regulations as the Secretary may

deem in the public interest: (1) upon application, to make such commodities available to any Federal agencer for use in making payment

for commodities not produced in the United States; (2) to barter or

exchange such commodities for strategic or other materials as authorized by law; (3) in the case of food commodities to donate such commodities to the Bureau of Indian Affairs and to such State, Federal, or

private agency or agencies as may be designated by the proper State

or Federal authority and approved by the Secretary, for use in the

United States in nonprofit school-lunch programs, in the assistance

of needy persons, and in charitable institutions, including hospitals,

to the extentthat needy persons are served ; and (4) to donate any such
166 AGRICULTURAL ACT OF 1949, AS AMENDED

food commodities in excess of anticipated disi)osition under (1), (2),

and (3) above to nonprofit voluntary agencies registered with the

Committee on Voluntary Foreign Aid of the Foreign Operations Administration or other appropriate department or agency of the Federal Government and intergovernmental organizations for use in the

assistance of needy persons outside the United States. In the case of

(3) and (4) above the Secretary shall obtain such assurance as he

deems necessary thatthe recipients thereof will not diminish their normal expenditures for food by reason of such donation. In order to

facilitate the appropriate disposal of such commodities, the Secretary

may from time to time estimate and announce the quantity of such

commodities which he anticipates will become available for distribution under (3) and (4) above. The Commodity Credit Corporation

may pay, with respect to commodities disposed of under this section,

reprocessing, packaging, transporting, handling, and other charges

accruing up to the time of their delivery to a Federal agency or to the

designated State or private agency, in the case of commodities made

available for use within the United States, or their delivery free alongside ship or free on board export carrier at point of export, in the case

of commodities made available for use outside the United States, In

addition, in the case of food commodities disposed of under this

section, the Commodity Credit Corporation may pay the cost of

processing such commodities into a form suitable for home or institutional use, such processing to be accomplished through private trade

facilities to the greatest extent possible. For the purpose of this section the terms "State" and "United States" include the IDistrict of

Columbia and any Territory or possession of the United States.

(7 U.S.C. 1431)21

SEC. 417. (a) Section 41 of the Farm Credit Act of 1933 (U. S. C,

title 12, sec. 1134c) is amended by adding at the end thereof the following :

"îfotwithstanding any limitations or conditions imposed by law, but

subject to the availability of funds, each Bank for Cooperatives shall

have power and authority to make separate loans to cooperative associations as defined in the Agricultural Marketing Act, as amended, for

the purpose of financing the construction of structures for the storage

of agricultural commodities (other than structures to provide refrigerated cold storage or structures in areas in which existing privately

owned storage facilities for the commodity concerned are adequate) in

amounts up to a maximum of 80 per centum of the cost of such structures, as approved by the Bank for Cooperatives to whom application

is made for the loan : Provided^ Thatthe cooperative association which

has applied for any loan shall have furnished to the Bank for Cooperatives an appropriate commitment from the Commodity Credit Corporation that the Commodity Credit Corporation will lease or guarantee

utilization of not less than 75 per centum of the storage space contained in such structures when completed for a period of at least

three years if such structures are not additions to existing structures,

21 The provisions of this section were substituted for the previous provisions by sec. 302

of the Agricultural Trade Development and Assistance Act of 1954. See also sec. 805 of

that act (p. 196), providing for the identification of stocks disposed of under sec, 416 as

being furnished by the people of the United States. The next to the last sentence of this

section was added by the Agricultural Act of 1956, Public Law 540, 84th Cong., 70 Stat.

203. See also sec. 210 of the Agricultural Act of 1956 as to donations to penal institutions.
AGRICULTURAL ACT OF 1949, AS AMENDED 167

or two years if such structures are additions to existing structures."

(b) Section 34 of the Farm Credit Act of 1933 (Ü. S. C, title 12,

sec. 1134] ) is amended by adding at the end thereof the following :

"Notwithstanding any limitations or conditions imposed by law,

but subject to the availability of funds, the Central Bank for Cooperatives shall have power and authority to make separate loans to

cooperative associations as defined in the Agricultural Marketing Act,

as amended, for the purpose of financing the construction of structures

for the storage of agricultural commodities (other than structures to

provide refrigerated cold storage or structures located in areas in

which existing privately owned storage facilities for the commodity

concerned are adequate) in amounts up to a maximum of 80 per

centum of the cost of such structures, as approved by such bank : Promded^ Thatthe cooperative association which has applied for any loan

shall have furnished to such bank an appropriate commitment from

the Commodity Credit Corporation that the Commodity Credit Corporation will lease or guarantee utilization of not less than 75 per

centum of the storage space contained in such structures when completed for a period of at least three years if such structures are not

additions to existing structures, or two years if such structures are

additions to existing structures." ^^

SECS. 418 and 419. [Tliese sections contain amendments to the Agricultural Adjustment Act of 1938. These amendments are included

in that act as it appears in this compilation.]

PRICE SUPPORT FOR COTTONSEED

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. (7 U. S. C. 1432) ^3

22 See also sec. 4 (h) of the Commodity Credit Corporation Charter Act (p. 142), which

provides for loans by the Corporation to grain growers to finance the construction or purchase of storage facilities.

23 This section was added by the act of July 17, 1952, Public Law 585, 82d Cong., 66 Stat.

758, 759.
AGRICULTURAL ACT OF 1954 ^

AN ACT

To provide for greater stability in agriculture ; to augment the marketing and

disposal of agricultural products ; and for other purposes.

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

united States of America in Congress assembled^

TITLE I—SET ASIDE OF AGEICULTUEAL COMMODITIES

SEC. 101. The Commodity Credit Corporation shall, as rapidly as

the Secretary of Agriculture shall determine to be practicable, set

aside withiji its inventories not more than the following maximum

quantities and not less than the following minimum quantities of agricultural commodities or products thereof heretofore or hereafter acquired by it from 1954 and prior years' crops and production in connection with its price support operations :

Maximum Minimum

Commodity , quantity quantity

Wheat (bushels) 500,000, 000 400,000,000

Upland cotton (bales) 4, 000, 000 3, 000, 000

Cottonseed oil (pounds) 500,000,000 0

Butter (pounds) 200,000,000 0

Nonfat dry milk solids (pounds) 300, 000, 000 0

Cheese (pounds) -._-._ 150,000,000 0

Such quantities shall be known as the "commodity set-aside". (7

U.S.C.174n

SEO. 102. Quantities of commodities shall not be included in the commodity set-aside which have an aggregate value in excess of $2,500,-

000,000. The value of the commodities placed in the commodity

set-aside, for the purpose of this section, shall be the Corporation's

investment in such commodities as of the date they are included in the

commodity set-aside, as determined by the Secretary. (7 U. S. C. 1742)

SEC. 103. (a) Such commodity set-aside shall be reduced by disposals made in accordance with the directions of the President as

follows :

(1) Donation, sale, or other disposition for disaster or other relief

purposes outside the United States pursuant to and subject to the limitations of title II of the Agricultural Trade Development and Assistance Act of 1954;

(2) Sale or barter (including barter for strategic materials) to

develop new or expanded markets for American agricultural commodities, including but not limited to disposition pursuant to and

subject to the limitations of title I of the Agricultural Trade Development and Assistance Act of 1954 ;

( 3 ) Donation to school-lunch programs ;

(4) Transfer to the national stockpile established pursuant to the

Act of June 7, 1939, as amended (50 IT. S. C. 98-98h), without reimbursement from funds appropriated for the purposes of that Act;

1 Approved August 28, 1954, Public Law 690, 83d Cong., 68 Stat. 897.
AGRICULTURAL ACT OF 1954 169

(5) Donation, sale, or other disposition for research, experimental,

or educational purposes;

(6) Donation, sale, or other disposition for disaster reliet purposes

in the United States or to meet any national emergency declared by

the President; and ^ ^ . i r

(7) Sale for unrestricted use to meet a need for increased supplies

at not less than 105 per centum of the parity price in the case ot agricultural commodities and a price reflecting 105 per centum ot the

parity price of the agricultural commodity in the case o± products

of agricultural commodities. /» .i. ^•

The President shall prescribe such terms and conditions tor the disposal of commodities in the commodity set-aside as he determines will

provide adequate safeguards against interference with normal marketings of the supplies of such commodities outside the commodity

set-aside. Strategic materials acquired by the Commodity Credit

Corporation under paragraph (2) of this subsection shall be transferred to the national stockpile established pursuant to the Act of

June 7, 1939, as amended, and the Commodity Credit Corporation

shall be reimbursed for the value of the commodities bartered for

such strategic materials from funds appropriated pursuant to section

8 of such Act of June 7, 1939, as amended. For the purpose of such

reimbursement, the value of any commodity so bartered shall be the

lower of the domestic market price or the Commodity Credit Corporation's investment therein as of the date of such barter, as determined

by the Secretary of Agriculture. (7 U. S. C. 1743 (a) )

(b) The quantity of any commodity in the commodity set-aside

shall be reduced to the extent that the Commodity Credit Corporation

inventory of such commodity is reduced, by natural or other cause

beyond the control of the Corporation, below the quantity then

charged to the commodity set-aside. (7 U. S. C. 1743 (b) )

SEC. 104. (a) The Corporation shall have authority to sell, without

regard to section 103 (a) (7) hereof, any commodity covered by the

commodity set-aside for the purpose of rotating stocks or consolidating inventories, any such sale to be offset by purchase of the same

commodity in a substantially equivalent quantity or of a substantially

equivalent value. (7 U. S. C. 1744 (a) )

(b) Dispositions pursuant to this title shall not be subject to the

pricing limitations of section 407 of the Agricultural Act of 1949, as

amended. (7 U. S. C. 1744 (b))

SEC. 105. The quantity of any commodity in the commodity setaside or transferred from the set-aside to the national stockpile established pursuant to the Act of June 7, 1939, as amended (50 U. S. C.

98-98h) shall be excluded from the computation of ''carryover" for

the purpose of determining the price support level for such commodity under the Agricultural Act of 1949, as amended, and related

legislation, but shall be included in the computation of total supplies

for purposes of acreage allotments and marketing quotas under the

Agricultural Adjustment Act of 1938, as amended, and related legislation. Until such time as the commodity set-aside has been completed, such quantity of the commodity as the Secretary shall determine between the maximum and minimum quantities specified in section 101 of this Act shall be excluded from the computations of

"carryover" for the purpose of determining the price support level,
170 AGRICULTURAL ACT OF 1954

but shall be included in the computation of total supplies for purposes of acreage allotments and marketing quotas, for the 1955 crop

of the commodity, notwithstanding that the quantity so excluded

may not have been acquired by the Corporation and included in the

commodity set-aside. (7 Ü. S. C. 1745)

SEC. 106. The Commodity Credit Corporation shall keep such records and accounts as may be necessary to show, for each commodity

set-aside, the initial and current composition, value (in accordance

with section 102), current investment, quantity disposed of, method

of disposition, and amounts received on disposition. (7 U. S. C.

1746)

SEC. 107. In order to make payment to the Commodity Credit Corporation for any commodities transferred to the national stockpile

pursuant to section 103 (a) (4) of this Act, there are hereby authorized to be appropriated amounts equal to the value of any commodities so transferred. The value of any commodity so transferred, for

the purpose of this section, shall be the lower of the domestic market

price or the Commodity Credit Corporation's investment therein as

of the date of transfer to the stockpile, as determined by the Secretar^'^

of Agriculture. (7 U. S. C. 1747)

TITLE II—AMENDMENTS TO AGRICULTURAL ACT OF

1949, AS AMENDED, AND RELATED LEGISLATION

[This title contains amendments to the Agricultural Act of 1949,

which are incorporated in that act as contained in this compilation,

and amendments to related legislation.]

TITLE III—AMENDMENTS TO AGRICULTURAL ADJUSTMENT ACT OF 1938, AND RELATED LEGISLATION

[This title contains amendments to the Agricultural Act of 1949

and the Agricultural Adjustment Act of 1938, which are incorporated

in those acts contained in this compilation, and amendments to related

legislation.]

TITLE IV—AMENDMENTS TO AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

[This title contains amendments to the Agricultural Marketing

Agreement Act of 1937, which are incorporated in that act as contained in this compilation.]

TITLE V—AMENDMENTS TO SOIL CONSERVATION AND

DOMESTIC ALLOTMENT ACT

[This title contains amendments to the Soil Conservation and

Domestic Allotment Act, which are incorporated in that act as contained in this compilation.]

TITLE VI—AGRICULTURAL ATTACHES

SEC. 601. For the purpose of encouraging and promoting the marketing of agricultural products of the United States and assisting

American farmers, processors, distributors, and exporters to adjust
AGRICULTURAL ACT OF 1954 171

their operations and practices to meet world conditions, the Secretary

of Agriculture shall acquire information regarding the competition

and demand for United States agricultural products, the marketing

and distribution of said products in foreign countries and shall be responsible for the interpretation and dissemination of such information

in the United States and shall make investigations abroad regarding

the factors affecting and influencing the export of United States agricultural products, and shall conduct abroad any other activities including the demonstration of standards of quality for American agricultural products for which the Department of Agriculture now has

or in the future may have such standards, as he deems necessary.

Nothing contained herein shall be construed as prohibiting the Department of Agriculture from conducting abroad any activity for which

authority now exists. (7 U. S. C. 1761)

SECS. 602 to 608. [These sections provide for the appointment of

agricultural attaches.]

TITLE VII—NATIONAL WOOL ACT OF 1954

SEO. 701. This title may be cited as the "National Wool Act of 1954."

SEO. 702. Itis hereby recognized that wool is an essential and strategic commodity which is not produced in quantities and grades in the

United States to meet the domestic needs and that the desired domestic

production of wool is impaired by the depressing effects of wide

fluctuations in the price of wool in the world markets. It is hereby

declared to be the policy of Congress, as a measure of national security

and in promotion of the general economic welfare, to encourage the

annual domestic production of approximately three hundred million

pounds of shorn wool, grease basis, at prices fair to both producers and

consumers in a manner which will have the least adverse effects upon

foreign trade. (7 U. S. C. 1781)

SEC. 703. The Secretary of Agriculture shall, through the Commodity Credit Corporation, support the prices of wool and mohair,

respectively, to the producers thereof by means of loans, purchases,

payments, or other operations. Such price support shall be limited to

wool and mohair marketed during the period beginning April 1,1955,

and ending March 31,1959. The support price for shorn wool shall be

at such incentive level as the Secretary, after consultation with producer representatives, and after taking into consideration prices paid

and other cost conditions affecting sheep production, determines to

be necessary in order to encourage an annual production consistent

with the declared policy of this title : Provided^ Thatthe support price

for shorn wool shall not exceed 110 per centum of the parity price

therefor. If the support price so determined does not exceed 90 per

centum of the parity price for shorn wool, the support price for shorn

wool shall be 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 an annual production of approximately

three hundred and sixty million pounds of shorn wool. The support

prices for pulled wool and for mohair shall be established at such

levels, in relationship to the support price for shorn wool, as the

Secretary determines will maintain normal marketing practices for

pulled wool, and as the Secretary shall determine is necessary to
172 AGEICULTÜRAL ACT OF 1954

maintain approximately the same percentage of parity for mohair as

for shorn wool. The deviation of mohair support prices shall not be

calculated so as to cause it to rise or fall more than 15 per centum

above or below the comparable percentage of parity at which shorn

wool is supported. Notwithstanding the foregoing, no price support

shall be made available, other than through payments, at a level in

excess of 90 per centum of the parity price for the commodity. The

Secretary shall, to the extent practicable, announce the support price

levels for wool and mohair sufficiently in advance of each marketing

year as will permit producers to plan their production for such

marketing yearv (7 TJ. S. C. 1782)

SEC. 704. If payments are utilized as a means of price support, the

payments shall be such as the Secretary of Agriculture determines to

be sufficient, when added to the national average price received by producers, to give producers a national average return for the commodity

equal to the support price level therefor : Provided^ That the total of

all such payments made under this Act shall not at any time exceed

an amount equal to 70 per centum of the accumulated totals, as of the

same date, of the gross receipts from specific duties (whether or not

such specific duties are parts of compound rates) collected on and

after January 1,1953, on all articles subject to duty under schedule 11

of the Tariff Act of 1930, as amended. The payments shall be made

upon wool and mohair marketed by the producers thereof, but any

wool or mohair produced prior to January 1, 1955, shall not be the

subject of payments. The payments shall be at such rates for the

niarketing year or periods thereof as the Secretary determines will

give producers the support price level as herein provided. Payments

to any producer need not be made if the Secretary determines tïiat the

amount of the payment to the producer or all producers is too small to

justify the cost of making such payments. The Secretary may make

the payment to producers through the marketing agency to or through

whom the producer marketed his wool or mohair : Provided^ That

such marketing agency agrees to receive and promptly distribute the

payments on behalf of such producers. 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 may determine to be fair and reasonable in all the circumstances

and provided by regulation. (7 U. S. C. 1783)

SEC. 705. For the purpose of reimbursing the Commodity Credit

Corporation for any expenditures made by it in connection with payments to producers under this title, there is hereby appropriated for

each fiscal year beginning with the fiscal year ending June 30, 1956,

an amount equal to the total of expenditures made by the Corporation

during the preceding fiscal year and to any amounts expended in prior

fiscal years not previously reimbursed : Pro'vided^ however^ That such

amounts appropriated for any fiscal ¡y^ear shall not exceed 70 per centum of the gross receipts from specific duties (whether or not such

specific duties are parts of compound rates) collected during the

period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year on all articles subject to duty under

schedule 11 of the Tariff Act of 1930, as amended. For the purposes of
AGRICULTURAL ACT OF 1954 173

the appraisal under the Act of March 8,1938, as amended (15 U. S. C.

7l3a-l), the Commodity Credit Corporation shall establish on its

books an account receivable in an amount equal to any amount expended by Commodity Credit Corporation in connection with payments pursuant to this title which has not been reimbursed from

appropriations made hereunder. (7 U. S. C. 1784)

SEC. 706. Except as otherwise provided in this title, the amounts,

terms, and conditions of the price support operations and the extent

to which such operations are carried out shall be determined or approved by the Secretary of Agriculture. The Secretary may, m determining support prices and rates of payment, make adjustments m

such p'rices or rates for differences in grade, quality, type, location,

and other factors to the extent he deems practicable and desirable.

Determinations by the Secretary under this title shall be final and

conclusive. The facts constituting the basis for any operation, payment, or amount thereof when officially determined in conformity

with applicable regulations prescribed by the Secretary shall be final

and conclusive and shall not be reviewable by any other officer or

agency of the Government. (7 U. S. C. 1785)

SEC. 707. The term "marketing year" as used in this title means the

twelve-month period beginning April 1 of each calendar year or, for

either wool or mohair, such other period, or periods for prescribed

areas, as the Secretary may determine to be desirable to effectuate the

purpose of this title. (7 U. S. C. 1786)

SEC. 708. The Secretary of Agriculture is authorized to enter into

agreements with, or to approve agreements entered into between,

marketing cooperatives, trade associations, or others engaged or

whose members are engaged in the handling of wool, mohair, sheep, or

goats or the products thereof for the purpose of developing and conducting on a National, State, or regional basis advertising and sales

promotion programs for wool, mohair, sheep, or goats or the products

thereof. Provision may be made in such agreement to obtain the funds

necessary to defray the expenses incurred thereunder through pro rata

deductions from the payments made under section 704 of this title to

producers within the production area he determines will be benefited

by the agreement and for the assignment and transfer of the amounts

so deducted to the person or agency designated in the agreement to

receive such amounts for expenditure in accordance with the terms and

conditions of the agreement. No agreement containing such a provision for defraying expenses through deductions shall become effective

untilthe Secretary determines that atleast two-thirds of the producers

who, during a representative period determined by the Secretary, have

been engaged, within the production area he determines will be benefited by the agreement, in the production for market of the commodity

specified therein approve or favor such agreement or that producers

who, during such representative period have produced at least twothirds of the volume of such commodity produced within the area

which will be benefited by such agreement, approve or favor such

agreement. Approval or disapproval by cooperative associations shall

be considered as approval or disapproval by the producers who are

members of, stockholders in, or under contract with such cooperative

association of producers. The Secretary may conduct a referendum

among producers to ascertain their approval or favor. The require-
174 AGRICULTURAL ACT OF 1954

ments of approval or favor shall be held to be complied with if twothirds of the total number of producers, or two-thirds of the total

volume of production, as the case may be, represented in such referendum, indicate their approval or favor. (7 U. S. C. 1787)

SEC. 709. Section 201 of the Agricultural Act of 1949 (7 U. S. G.,

sec. 1446) is amended effective April 1,1955, (i) by deleting from the

first sentence thereof the phrase "wool (including mohair)/' and (ii)

by deleting subsection (a) thereof relating to the support of wool and

mohair.

SEC. 710 [This section contains an amendment to the Commodity

Exchange Act.]
GENERAL FISCAL STATUTES

ACT OF MARCH 8, 1938/ AS AMENDED

AN ACT

To maintain unimpaired the capital of the Commodity Credit Corporation at

$100,000,000, and for other purposes.

Be it enacteà hy the Senate amd Home of Representatives of the

United States of América in Congress assembled, That as of the 30th

of June in each year and as soon as possible thereafter, beginning with

June 30, 1945, an appraisal of all of the assets and liabilities ot the

Commodity Credit Corporation for the purpose of determining the

net worth of the Commodity Credit Corporation shall be made by

the Secretary of the Treasury. The value of assets shall be determined on the basis of the cost of such assets to the Commodity Credit

Corporation,^ and a report of any such appraisal shall be submitted

to the President as soon as possible after it has been made.^ In the

event that any suoh appraisal shall establish that the net worth ot the

Commodity Credit Corporation is less than $100,000,000, the Secretary of the Treasury, on behalf of the United States, shall restore the

amount of such capital impairment by a contribution to the Commodity Credit Corporation in the amount of such impairment, i o

enable the Secretary of the Treasury to make such payment to the

Commodity Credit Corporation, there is hereby authorized to be

appropriated annually, commencing with the fiscal year 1938, out ot

any money in the Treasury not otherwise appropriated, an amount

equal to any capital impairment found to exist by virtue of any appraisal as provided herein. Such capital impairment shall be restored with appropriated funds as provided herein rather than

through the cancellation of notes.^ (15 U. S. C. 713a-l)^

EXCESS KET WORTH

SEC 2. In the event that any appraisal pursuant to section 1 of this

Act shall establish that the net worth of the Commodity Credit Corporation is in excess of $100,000,000, such excess shall as soon as

practicable after such appraisal, be deposited m the Treasury by the

Commodity Credit Corporation and shall be credited to miscellaneous

receipts. The Secretary of the Treasury is directed, as soon as practicable, to use any amount so deposited to retire an equivalent amount

^?SfÄI"o\''in^oi?'^^^^^^ average market price of ?"eh assets during

the lalt month of the fiscal year covered by the appraisal whichever is the lower, was

rtXted bv the act of March 20, 1954, Public Law 312, 83d Cong., 68 Stat., 30.

3 The pyceding provisions of this'section were substituted for the original provisions

by the act of April 12, 1945, Public Law 30, ^Oth Cong., 59' Stat. 50, 51. * This sentence was added by the act of March 20, 1954.

5 A nuAfo? appropriations from and payment to the Treasury have been made pursuant to this and the following section.

175
176 GENERAL FISCAL STATUTES

of the public debt, whioh amount shall be in addition to any other

amount required to be used for such purpose. (15 U. S. C. 7l3a-2)

SEC. 3. [This section provided for the transfer of stock of the Delaware corporation to the United States.]

BORROWING POWER

SEC. 4. With the approval of the Secretary of the Treasury, the

Commodity Credit Corporation is authorized to issue and have outstanding at any one time, bonds, notes, debentures, and other similar

obligations in an aggregate amount not exceeding $14,500,000,000.^

Such obligations shall be in such forms and denominations, shall have

such maturities, shall bear such rates of interest, shall be subject to

such terms and conditions, and shall be issued in such manner and sold

at such prices as may be prescribed by the Commodity Credit Corporation, with the approval of the Secretary of the Treasury. Such obligations shall be fully and unconditionally guaranteed both as to interest

and principal by the United States, and such guaranty shall be expressed on the face thereof, and such obligations shall be lawful investments and may be accepted as security for all fiduciary, trust, and

public funds the investment or deposit of which shall be under the

authority or control of the United States or any officer or officers

thereof. In the event that the Commodity Credit Corporation shall

be unable to pay upon demand, when due, the principal of, or interest

on, such obligations, the Secretary of the Treasury shall pay to the

holder the amount thereof which is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated,

and thereupon to the extent of the amount so paid the Secretary of

the Treasury shall succeed to all the rights of the holders of such

obligations. The Secretary of the Treasury, in his discretion, is authorized to purchase any obligations of the Commodity Credit Corporation issued hereunder, and for such purpose the Secretary of the

Treasury is authorized to use as a public-debt transaction the proceeds

from the sale of any securities hereafter issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may

be issued under such Act, as amended, are extended to include any

purchases of the Commodity Credit Corporation's obligations hereunder. The Secretary of tne Treasury may at any time sell any of

the obligations of the Commodity Credit Corporation acquired by

him under this section. All redemptions, purchases, and sales by the

Secretary of the Treasury of the obligations of the Commodity Credit

Corporation shall be treated as public-debt transactions of the United

States. No such obligations shall be issued in excess of the assets of

the Commodity Credit Corporation, including the assets to be obtained

from the proceeds of such obligations, but a failure to comply with this

provision shall not invalidate the obligations or the guaranty of the

same: Provided^ That this sentence shall not limit the authority of

the Corporation to issue obligations for the purpose of carrying out

its annual budget programs submitted to and approved by the Con-

« This amount has been increased a number of times and was increased from

$12,000,000,000 by the act of August 1, 1956, Public Law 864, 84th Cong., 70 Stat. 783.

See also sec. 4 (i) of the Commodity Credit Corporation Charter Act (p. 144) and the

Government Corporation Control Act (31 U. S. C. 841).
GENERAL FISCAL STATUTES 177

gress pursuant to the Government Corporation Control Act (31

U. S. C, 1946 edition, sec. 841) .^ The Commodity Credit Corporation

shall have power to purchase such obligations in the open market at

any time and at any price. (15 U. S. C. 7l3a-4)

TAXATION

SEC. 5. Bonds, notes, debentures, and other similar obligations issued by the Commodity Credit Corporation under the provisions of

this Act shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived

therefrom shall be exempt from Federal, State, municipal, and local

taxation (except surtaxes, estate, inheritance, and gift taxes). The

Commodity Credit Corporation, including its franchise, its capital,

reserves, and surplus, and its income shall be exempt from all taxation

now or hereafter imposed by the United States, by any Territory,

dependency, or possession thereof, or by any State, county, municipality, or local taxing authority; except that any real property of the

Commodity Credit Corporation shall be subjact to State, Territorial,

county, municipal, or local taxation to the same extent according to

its value as other real property is taxed. (15 U. S. C. 7l3a~5)^

FEDERAL RESERVE BANKS AS FISCAL AGENTS

Act of July 16, 1943—Sec. 3. The Federal Keserve Banks are

hereby authorized to act as depositaries, custodians, and fiscal agents

for the Commodity Credit Corporation. (P. L. 151, 78th Cong., 57

Stat.566;12U.S.C.395)

' Proviso added by sec. 410 of the Agricultural Act of 1949. «««..* ion

8 See act of February 19, 1941, 55 Stat. 7, 9, as amended March 28, 1942, 56 Stat. 189,

190, 31 Ü. S. C, sec. 742a, abolishing tax exemption for income from obligations issued or

guaranteed by the United States or any agency or instrumentality thereof.

412526—57 18
STATUTES RELATING TO DISPOSITION OF COMMODITIES

[See also: ^'^se

Section 407 of the Agricultural Act of 1949 (sales price limitation ; other

dispositions) 160

Section 202 of the Agricultural Act of 1949 (disposition of dairy products) - 155

Section 416 of the Agricultural Act of 1949, as amended (surplus disposition) , . _ 165

Title I of the Agricultural Act of 1954 (disposition of set-aside commodities) - — 168

The Agricultural Trade Development and Assistance Act of 1954 (surplus

disposition) . 190

Section 4 (h) of the Commodity Credit Corporation Charter Act (barter)- 142

Section 5 of the Commodity Credit Corporation Charter Act (sales) 144

Suhpart 0 of this Title VI (export and surplus removal).] _ 190

GRAIN FOR MIGRATORY WATERFOWL

ACT OF JULY 3, 1956*

AN ACT

To authorize the Secretary of the Interior to cooperate with Federal and nonFederal agencies in the prevention of waterfowl depredations, and for other

purposes.

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

united States of America in Congress assembled^ That, for the purpose of preventing crop damage by migratory waterfowl, the Commodity Credit Corporation shall make available to the Secretary of

the Interior such wheat, corn, or other grains, acquired through price

support operations and certified by the Commodity Credit Corporation to be available for purposes of this Act or in such condition

through spoilage or deterioration as not to be desirable for human

consumption, as the Secretary of the Interior shall requisition pursuant to section 2 hereof. With respect to any grain thus made

available, the Commodity Credit Corporation may pay packaging,

transporting, handling, and other charges up to the timo of delivery

to one or more designated locations in each State. (7 U. S. C. 442)

SEC. 2. Upon a finding by the Secretary of the Interior that any

area in the United States is threatened with damage to farmers' crops

by migratory waterfowl, whether or not during the open season for

such migratory waterfowl, the Secretary of the Interior is hereby

authorized and directed to requisition from the Commodity Credit

Corporation and to make available to Federal, State, or local governmental bodies or officials, or to private organizations or persons, such

grain acquired by the Commodity Credit Corporation through pricesupport operations in such quantities and subject to such regulations

as the Secretary determines will most effectively lure migratory waterfowl away from crop depredations and at the same time not expose

such migratory waterfowl to shooting over areas to which the waterfowl have been lured by such feeding programs. (7 U. S. C. 443)

* Public Law 654, 84th Cong., 70 Stat. 492.

178
GRAIN FOR MIGRATORY WATERFOWL 179

SEO. 3. With respect to all grain made available pursuant to section 2, the Commodity Credit Corporation shall be reimbursed by the

Secretary of the Interior for its expenses in packaging and transporting such grain for purposes of this Act. (7 U. S. C. 444)

SEC. 4. There are hereby authorized to be appropriated such sums as

may be necessary to reimburse the Commodity Credit Corporation for

its investment in the grain transferred pursuant to this Act. (7

SEC. 5. No grain shall be made available by the Commodity Credit

Corporation under this Act after the expiration of three years following its enactment. (7U.S.C.446)

REIMBURSEMENT BY OTHER AGENCIES

Act of July 16,1943—Sec. 4. Full reimbursement shall be made to

the Commodity Credit Corporation for services performed, losses sustained, operating costs incurred, or commodities purchased or dehvered

to or on behalf of the Lend-Lease Administration, the Army or Navy,

the Board of Economic Warfare, the Eeconstruction Finance Corporation, or any other Government agency, from the appropriate funds of

these agencies. (P. L. 151, 78th Cong., 57 Stat. 566; 15 U. S. C.

713a-9.)

SALE TO FOREIGN GOVERNMENTS

Act of August 11, 1939—Notwithstanding any other provision of

law, the Commodity Credit Corporation, with the approval of the

President, is authorized to sell surplus agricultural commodities, acquired by such Corporation through its loan operations, to foreign

governments on the condition that, except for rotation to prevent deterioration, such commodities shall be held in reserve by such governments for a period of not less than five years from the date of acquisition, and shall not be disposed of unless a war or war emergency results

in a serious interruption of normal suj)plies of such commodities:

Provided^ That under this joint resolution no concession below the

prevailing world market price for the unrestricted use of such commodities, as determined by the Secretary of Agriculture, shall be

granted, in consideration of the obligation assumed by such governments to hold such commodities in reserve as required hereinbefore, in

excess of a maximum amount equal to the average carrying charges, as

estimated by the Secretary of Agriculture, that would be incurred if

such commodities should be held for an additional eighteen months'

period by the Commodity Credit Corporation. In determining

specific cotton to be sold under this Act, the determination shall be

made by sampling and selection at the place where the cotton is stored

on the date oi signing any sales agreement or contract under this Act,

and no cotton shall be sold under any such sales agreement or contract

which, after such date, is transported to any other place and there

sampled and selected : Provided further^ That in case of a sale settlement must be made within sixty days after delivery and not more than

five hundred thousand bales of cotton shall be sold upon the terms and

conditions provided in this joint resolution. (Pub. Ees, 52, 76th

Cong., 53 Stat. 1418; 15 U. S. C. 713a-6.)
AGRICULTURAL ACT OF 1956*

TITLE II—SURPLUS DISPOSAL

PROGRAM OF ORDERLY LIQUIDATION

SEC. 201. (a) The Commodity Credit Corporation shall, as rapidly

as possible consistent with its existing authority, the operation of the

price support program, and orderly liquidation, dispose of all stocks

of agricultural commodities held by it.

(b) The Secretary shall submit to Congress within ninety days after

the enactment of this Act detailed programs, with recommendations

for any additional legislation needed to carry out such programs,

(1) for the disposition of surplus commodities as required by subsection (a) above; (2) for a food stamp plan or similar program for

distribution through States (including the District of Columbia, the

Territories, Puerto Eico and the Virgin Islands) and local units of

Government of future surplus production to needy persons in the

United States, its Territories, and possessions, so as to prevent the

accumulation of commodities in the hands of the Commodity Credit

Corporation ; and (3) for strategic stockpiling of foodstuffs and other

agricultural prducts (A) inside the United States and (B) outside

the United States as authorized in section 415 of the Mutual Security

Act of 1954. The Secretary shall report annually on his operations

under subsection (a) and such reports shall show—

(1) the quantities of surplus commodities on hand;

(2) the methods of disposition utilized and the quantities disposed of during the preceding twelve months ;

(3) the methods of disposition to be utilized and the estimated

quantities that can be disposed of during the succeeding twelve

months;

(4) a detailed program for the expansion of markets for surplus agricultural commodities through marketing and utilization

research and improvement of marketing facilities ; and

(5) recommendations for additional legislation necessary to

accomplish the purposes of this section. (7 U. S. C. 1851)

EXTRA-LOÎÎG STAPLE COTTON

SEC. 202. (a) Hereafter the quota for cotton having a staple length

of one and one-eighth inches or more, established September 20, 1939,

pursuant to section 22 of the Agricultural Adjustment Act of 1933,

as amended, shall apply to the same grades and staple lengths included

in the quota when such quota was initially established. Such quota

shall provide for cotton having a staple length of one and eleven-

* Approved May 28, 1956, Public Law 540, 84tli Cong., TO Stat. 188.

180
AGRICULTURAL ACT OF 1956 181

sixteenths inches and longer, and shall establish dates for the quota

year which will recognize and permit entry to conform to normal

marketing practices and requirements for such cotton.

(b) Beginning not later than August 1,1956, the Commodity Credit

Corporation is directed to sell for export at competitive world prices

its stocks of domestically produced extra long staple cotton on hand

on the date of enactment of this Act. The amount offered and the

price accepted by the Commodity Credit Corporation shall be such as

to dispose of such quantity in an orderly manner and within a reasonable period of time. (7 U. S. C. 1852)

EXPORT SALES PROGRAM FOR COTTON

SEC. 203. In furtherance of the current policy of the Commodity

Credit Corporation of offering surplus agricultural commodities for

sale for export at competitive world prices, the Commodity Credit

Corporation is directed to use its existing powers and authorities

immediately upon the enactment of this Act to encourage the export

of cotton by offering to make cotton available at prices not in excess

of the level of prices at which cottons of comparable qualities are

being offered in substantial quantity by other exporting countries and,

in any event, for the cotton marketing year beginning August 1,

1956, at prices not in excess of the minimum prices (plus carrying

charges, beginning October 1,1956, as established pursuant to Section

407 of the Agricultural Act of 1949) at which cottons of comparable

qualities were sold under the export program announced by the

United States Department of Agriculture on August 12, 1955. The

Commodity Credit Corporation may accept bids in excess of the maximum prices specified herein but shall not reject bids at such maximum

prices unless a higher bid is received for the same cotton. Cottons of

qualities not comparable to those of cottons sold under the program

announced on August 12, 1955, shall be offered at prices not in excess

of the maximum prices prescribed hereunder for cottons of qualities

comparable to those of cottons sold under such program, with appropriate adjustment for differences in quality. Such quantities^ of

cotton shall be sold as will reestablish and maintain the fair historical

share of the world market for United States cotton, said volume to be

determined by the Secretary of Agriculture. (7 U. S.. C. 1853)

AGREEMENTS LIMITING IMPORTS

SEC. 204. The President may, whenever he determines such action

appropriate, negotiate with representatives of foreign governments

in an effort to obtain agreements limiting the export from such countries and the importation into the United States of any agricultural

commodity or product manufactured therefrom or textiles or textile

products, and the President is authorized to issue regulations governing the entry or withdrawal from warehouse of any such commodity,

product, textiles, or textile products to carry out any such agreement. Nothing herein shall affect the authority provided under

section 22 of the Agricultural Adjustment Act (of 1933) as amended.

(7U.S.C.1854)
182 AGRICULTURAL ACT OF 1956

APPROPRIATION TO SUPPLEMENT SECTION 32 FUNDS

SEC. 205. There is hereby authorized to be appropriated for each

fiscal year, beginning with the fiscal year ending June 30,1957, the sum

of $500,000,000 to enable the Secretary of Agriculture to further carry

out the provisions of section 32, Public Law 320, Seventy-fourth

Congress, as amended (7 U. S. C. 612c), subject to all provisions of

law relating to the expenditure of funds appropriated by such section,

except that up to 50 per centum of such $500,000,000 may be devoted

during any fiscal year to any one agricultural commodity or the

productsthereof. (7U.S.C.1855)

TRANSFER OF BARTERED MATERIALS TO SUPPLEMENTAL STOCKPILE

SEC. 206. (a) Strategic and other materials acquired by the Commodity Credit Corporation as a result of barter or exchange of agricultural commodities or products, unless acquired for the national

stockpile established pursuant to the Strategic and Critical Materials

Stock Piling Act (50 U. S. C. 98-98h), or for other purposes shall

be transferred to the supplemental stockpile established by section

104 (b) of the Agricultural Trade Development and Assistance Act of

1954. (7U.S.C.1704)

(b)^ Strategic materials acquired by the Commodity Credit Corporation as a result of barter or exchange of agricultural commodities

or products may be entered, or withdrawn from warehouse, free of

duty.

(c) In order to reimburse the Commodity Credit Corporation for

materials transferred to the supplemental stockpile there are hereby

authorized to be appropriated amounts equal to the value of any

materials so transferred. The value of any such material for the

purpose of this subsection, shall be the lower of the domestic market

price or the Commodity Credit Corporation's investment therein as of

the date of such transfer, as determined by the Secretary of Agriculture. (7U.S.C.1856)

SURPLUS DISPOSAL ADMINISTRATOR

SEC. 207. The Secretary of Agriculture is authorized to appoint an

agricultural surplus disposal administrator, at a salary rate of not

exceeding $15,000 per annum, whose duties shall include such responsibility for activities of the Department, including those of the Commodity Credit Corporation, relating to the disposal of surplus agricultural commodities as the Secretary may direct. (7 TJ. S. C. 1857)

PAYMENT OF OCEAN FREIGHT

SEC. 208. [This section contains amendments to the Agricultural

Trade Development and Assistance Act of 1954, which are incorporated in that act as contained in this compilation.]

COMMISSION TO RECOMMEND LEGISLATION PROVIDING FOR INCREASED

INDUSTRIAL USE OF AGRICULTURAL PRODUCTS

SEC. 209. (a) (1) There is hereby established a bipartisan Commission on Increased Industrial Use of Agricultural Products here-
AGRICULTURAL ACT OF 1956 183

after referred to as "the Commission"). The Commission shall be

composed of five members, of whom not more than three shaii be

members of the same political party, to be appomted by the President

by and with the advice and consent of the Senate. In makmg such

appointments the President shall give due consideration to the interests of various segments of agriculture. One of the members so appointed shall be designated as Chairman by the President.

(2) Members of the Commission shall be paid compensation at the

rate of $50 per day and shall be reimbursed for necessary traveling

and other expenses incurred by them in the performance of their duties

as members of the Commission. . . i i> xi

(3) The Commission is authorized to appoint and hx the compensation, without regard to the civil-service laws and the Classüication Act of 1949, as amended, of an executive director and such chemists, ens-ineers, agriculturists, attorneys, and other assistants as it may

deem necessary. The Secretary of Agriculture is authorized to provide the Commission with necessary office space, and may detail, on a

reimbursable basis, any personnel of the Department of Agriculture

to assist the Commission in carrying out its work. , , ^ ^

(4) Upon request of the Commission, any other department or

agency of the Government having information or data needed by the

Commission in carrying out its duties under this section, shall make

such information or data available to the Commission for such purposes. The Commission shall take such steps as may be necessary to

protect against unauthorized disclosure any such information or data

which may be classified for security purposes. ^ ^^ ^

(5) Service of an individual as a member of the Commission or

employment of an individual by the Commission m a technical or

professional field, on a part-time or full-time basis, shall not be considered as service or employment bringing such individual wi^^^^

provisions of section 281,283, 284, 434 or 1914 of title 18 of the United

States Code, or section 190 of the Eevised Statutes (5 U. b. C. 99).

(b) It shall be the duty of the Commission to prepare and present

to the Congress, not later than June 15, 1957, the necessary recommendations which in its opinion will bring about the greatest practical

use for industrial purposes of agricultural products not needed tor

human or animal consumption, including; but not limited to, use m

the manufacture of rubber, industrial alcohol, motor fuels, plastics,

and other products. ^ . ^ i i ^4.

(c) There is hereby authorized to be appropriated such sum, not

to exceed $150,000, as may be necessary to enable the Commission to

carry out its functions.

(d) Upon submission of the recommendations referred to m subsection (b), the Commission shall cease to exist. (7 U. S. C. 1858)

DONATION TO PENAL AND CORRECTIONAL INSTITUTIONS

SEC 210. Notwithstanding any other limitations as to the disposal

of surplus commodities acquired through price support operations,

the Commodity Credit Corporation is authorized on such terms and

under such regulations as the Secretary of Agriculture may deem m

the public interest, and upon application, to donate food commodities

acquired through price support operations to Federal penal and cor-
184 AGRICULTURAL ACT OF 1956

rectional institutions, and to State correctional institutions for minors,

other than those in which food service is provided for inmates on a

fee, contract, or concession basis. (7 TJ. S. C. 1859)

FEDERAL IRRIGATION, DRAINAGE, AND FLOOD-CONTROL PROJECTS

SEC. 211. (a) For a period of three years from the date of enactment

of this Act, no agricultural commodity determined by the Secretary of

Agriculture in accordance with subsection (c) to be'in surplus supply

shall receive any crop loans or Federal farm payments or benefits if

grown on any newly irrigated or drained lands within any Federal

irrigation or drainage project hereafter authorized unless such lands

were used for the production of such commodity prior to the enactment of this Act,

(b) The Secretary of the Interior and the Secretary of Agriculture

shall cause to be included, in all irrigation, drainage,' or flood-control

contracts entered into with respect to Federal irrigation, drainage, or

flood-control projects hereafter authorized, such provisions as they

may deem necessary to provide for the enforcement of the provisions

of this section. For a period of three years from the date of enactment of this Act surplus crops grown on lands reclaimed by floodcontrol projects hereafter authorized and the lands so reclaimed shall

be ineligible for any benefits under the soil-bank provisions of this Act

and under price support legislation.

(c) On or before October 1 of each year, the Secretary of Agriculture shall determine and proclaim the agricultural cornmodities the

supplies of which are in excess of estimated requirements for domestic

consumption and export plus adequate reserves for emergencies. The

commodities so proclaimed shall be considered to be in surplus supply

for the purposes of this section during the succeeding crop year.

(d) For the purposes of this section the term "Federal irrigation

or drainage project" means any irrigation or drainao-e project subject

to the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 388,

and Acts amendatory thereof or supplementary thereto) in effect at

the date of the adoption of this amendment and any irrigation or

drainage project subject to the laws relating to irrigation and drainage administered by. the Department of Agriculture or the Secretary

of Agriculture. (7U. S. C.1860)

SEC. 212. [This section amended section 416 of the Agricultural Act

of 1949.]
LOANS AND ADVANCES TO DEPARTMENTAL AGENCIES

The Agricultural Adjustment Act of 1938, as amended—Sec. 391

(c) [This section (set out on p. 90 of this compilation) contains

authority for loans by Commodity Credit Corporation to the Secretary of Agriculture during each fiscal year of such sums, not to exceed

$50,000,000, as he estimates will be required to make crop insurance

premium advances and to make advances for the purchase of conservation materials from January 1 to June 30 of each year, with repayment (plus interest) to be made from appropriated funds.]

COST OF CLASSING OR GRADING

Department of Agriculture Appropriation Act, 1950—* * * On

and after June 29, 1949, appropriations available for classing or

grading any agricultural commodity without charge to the producers

thereof may be reimbursed from nonadministrative funds of the Commodity Credit Corporation for the cost of classing or grading any

such commodity for producers who obtain Commodity Credit Corporation price support. (June 29, 1949, P. L. 146, 81st Cong., 63 Stat.

324,344;7U. S.C.440.)

Department of Agriculture Appropriation Act, 1952—* * * Hereafter there may be transferred to appropriations available for classing

or grading any agricultural commodity without charge to the producers thereof such sums from nonadministrative funds of the Commodity Credit Corporation as may be necessary in addition to other

funds available for these purposes, such transfers to be reimbursed

from subsequent appropriations therefor. (Aug. 31, 1951, P. L. 135,

82nd Cong., 65 Stat. 225, 239 ; 7 U. S. C. 414a.)

FOOT-AND-MOUTH AND OTHER CONTAGIOUS DISEASES OF ANIMALS AND

POULTRY

Department of Agriculture and Farm Credit Administration Appropriation Act, 1957—* * *

Eradication activities : For expenses necessary in the arrest and

eradication of foot-and-mouth disease, rinderpest, contagious pleuropneumonia, or other contagious or infectious diseases of animals, or

European fowl pest and similar diseases in poultry, including the

payment of claims growing out of destruction of animals (including

poultry) affected by or exposed to, or of materials contaminated by or

exposed to, any such disease, when there has been compliance with all

lawful quarantine regulations, and for foot-and-mouth disease and

rinderpest programs undertaken pursuant to the provisions of the

Act of February 28, 1947, and the Act of May 29, 1884, as amended

(7 U. S. C. 391 ; 21XJ. S. C. 111-122), including expenses m accordance

with section 2 of said Act of February 28, 1947, the Secretary may

185
186 LOANS AND ADVANCES TO DEPARTMENTAL AGENCIES

transfer from other appropriations or funds available to the bureaus,

corporations, or agencies, of the Department, such sums as he may

deem necessary, but not to exceed $1,550,000 for eradication of vesicular exanthema of swine, to be available only in an emergency which

threatens the livestock or poultry industry of the country, and any

unexpended balances of funds transferred under this head in the next

preceding fiscal year shall be merged with such transferred amounts :

Provided^ That, except for payments made pursuant to said Act of

February 28,1947, the payment for animals may be made on appraisement based on the meat, egg-production, dairy, or breeding value, but

in case of appraisement based on breeding value no appraisement of

any animal shall exceed three times its meat, egg-production, or dairy

value and, except in case of an extraordinary emergency to be determined by the Secretary, the payment by the United States shall not

exceed one-half of any such appraisements : Pro'vided further^ That

this appropriation shall be subject to applicable provisions contained

in the item "Salaries and expenses. Agricultural Research Service".

Research: For expenses necessary for research authorized by the

Act of April 24, 1948 (21 U. S. C. 113a), $3,500,000. (June 4, 1956,

P. L. 554,84th Cong., 70 Stat. 229,230)

BRUCELLOSIS ERADICATION

Agricultural Act of 1954—Sec. 204, as amended * * *

(e) As a means of stabilizing the dairy industry and further suppressing and eradicating brucellosis in cattle, the Secretary is authorized to transfer not to exceed $17,000,000 for the fiscal year ending

June 30, 1956, and $20,000,000 for each of the fiscal years 1957 and

1958, from funds available to the Commodity Credit Corporation to

the appropriation item "Plant and Animal Disease and Pest Control"

in the Department of Agriculture Appropriation Act for such fiscal

year for the purpose of accelerating the brucellosis eradication program, for the purpose of increasing to not to exceed $50 per head of

cattle the amount of the indemnities paid by the Federal Government

for cattle destroyed because of brucellosis in connection with cooperative control and eradication programs for such disease in cattle entered

into by the Secretary under the authority of the Act of May 29, 1884,

as amended, for the purpose of increasing the number of such indemnities, and for the purpose of defraying any additional administrative

expenses in connection therewith. There are hereby authorized to be

appropriated such sums as may be necessary to reimburse the Commodity Credit Corporation for expenditures pursuant to this section.^

* The provisions of this section were substituted for the previous provisions by the

act of April 2, 1956, Public Law 465, 84th Cong., 70 Stat. 86.
MISCELLANEOUS COMMODITY CREDIT CORPORATION

STATUTES

ADMINISTRATIVE EXPENSE LIMITATION

rSee the Commodity Credit Corporation item in the Department

of Agriculture and Farm Credit Administration Appropriation Act,

1957, in Part VII hereof, and the similar items m previous appropriation acts. Section 104 of the Government Corporation Control Act

(approved Dec. 6,1945, P. L, 248, Y9th Cong., 59 Stat. 597 ; 31Ü. S. C.

84lf provides for enactment of necessary appropriations making

available corporate funds of each wholly owned Government corporation for administrative expenses or limiting the use thereof.]

EXEMPTION FROM FEDERAL PROPERTY AND ADMINISTRATTVE SERVICES ACT

Act of June 30,1949, as amended-Sec. 602 * * * Nothing in this

Act shall impair or affect any authority of-* * * (2) any executive

agency with respect to any phase (including, but not limited to, procurement, storage, transportation, processing, and disposal) of any

program conducted for purposes of resale, price support, grants to

farmers, stabilization, transfer to foreign governments, or foreign

aid, relief, or rehabilitation : Pw^é^eí?, That the agency carrying out

such program shall, to the maximum extent practicable, consistent with

the fulfillment of the purposes of the program and the effective and

efficient conduct of its business, coordinate its operations with the requirements of said chapters and the policies and regulations prescribed

pursuant thereto; * * *. i^^\^%}^t^ J>.^- ^^^ äff Ä's? Stat. 377, 401; Sept. 5, 1950, P. L. 754, 81st Cong., 64 Stat. 578, 583,

40U.S.C.474)

REIMBURSEMENT OP PROCUREMENT COSTS

Department of Agriculture Organic Act of 1944—Sec 402.

Applicable appropriations available to the War Food Administration^ current at the time services are rendered or payment theretor

is received may be reimbursed by nongovernmental agencies or foreign

governments (by advance credits or reimbursements) for_ the actual

or estimated costs, as determined by the War Food Administration,

incident to procuring agricultural commodities for s^i^h iiongovernmental agencies or foreign governments. (Sept. 21, 1944, r. -L.. 4^o,

78th Cong., 58 Stat. 734,738 ; 5 U. S. C. 569)

»The War Food Aamlnlstratlon was terminated by Executive Order No. 9|77^and Its

functions transferred to the Secretary of Agriculture (E, O, 9577, June 29, l»40, xu

F. E. 8087).

187
188 MISCELLANEOUS COMMODITY CREDIT CORPRATION STATUTES

TREATMENT OF COMMODITY CREDIT LOANS FOR INCOME TAX

PURPOSES

INTERNAL REVENUE CODE OF 19 54^

SEC. 77. COMMODITY CREDIT LOANS.

(a) ELECTION TO INCLUDE LOANS IN INCOME.—^Amounts received as

loans from the Commodity Credit Corporation shall, at the election

of the taxpayer, be considered as income and shall be included in gross

income for the taxable year in which received.

(b) EFFECT OF ELECTION ON ADJUSTMENTS FOR SUBSEQUENT

YEARS.—If a taxpayer exercises the election provided for in subsection (a) for any taxable year, then the method of computing income

so adopted shall be adhered to with respect to all subsequent taxable

years unless with the approval of the. Secretary or his delegate a

change to a different method is authorized.

SEC. 1016. ADJUSTMENTS TO BASIS.

(a) GENERAL KULE.—Proper adjustment in respect of the property

shall in all cases be made—

* 1» He :i( « Hi ii(

(8) in the case of property pledged to the Commodity Credit

Corporation, to the extent of the amount received as a loan from

the Commodity Credit Corporation and treated by the taxpayer

as income for the year in which received pursuant to section 77,

and to the extent of any deficiency on such loan with respect to

which the taxpayer has been relieved from liability ;

INSURANCE OF COTTON AND RECONÇENTRATION OP COTTON

[See section 383 of the Agricultural Adjustment Act of 1938 and

Public Law 660, Seventy-fifth Congress, both contained in Part II of

this compilation, p. 87.]

STIMULATION OF FOREIGN PRODUCTION

Taft Anti-Inflation Law—Sec. 7. Notwithstanding any other provision of law, in order to alleviate and prevent shortages in foods,

agricultural commodities, and products thereof, Commodity Credit

Corporation is authorized to carry out projects to stimuhite and increase the production of foods, agricultural commodities, and products

thereof, in non-European foreign countries. Such projects may include procurement, the making of advances and price guaranties, the

furnishing of technical information and assistance, the furnishing of

seed, fertilizer, machinery, equipment, and other materials, and such

other actions as are necessary or incident to the carrying out of such

projects : Provided^ That any such program is first submitted to Congress by the Secretary of Agriculture, and is not disapproved by concurrent resolution of Congress within sixty days thereafter. (Dec.

30, 1947, Public Law 395, 80th Cong., 61 Stat. 945, 947; 50 U. S. C.

App. 1917)

-^lï^^^® provisions of the Internal Revenue Code are derived from the act of June 29,

1939, Public Law 155, 76th Cong., 53 Stat. 862. 879, and the act of October 21, 1942, Public

Law 753, ilth Cong., 56 Stat. 798, 848. These acts also contained provisions as to

retroactive application of these provisions. See 26 U. S. C. 123 note.
MISCELLANEOUS COMMODITY ÔËEBîT ÔOËf^ËAflÔK SfAfÜTES ISO

OTHER PRINCIPAL STATUTES APPLICABLE TO COMMODITY CREDIT

CORPORATION

Government Corporation Control Act (Dec. 6,1945, P. L. 248, 79th

Cong., 59 Stat. 597 ; 31 U. S. C. 841 ).

Sections 222 and 1026 of the Criminal Code (June 25, 1948, P. L.

772,80th Cong., 62 Stat. 683, 696,755 ; 18 U. S. C. 222,1026) providing

penalties for acceptance of fees in connection with cancellation of farm

indebtedness.

Section 206 of the Technical Changes Act of 1953 (August 15,1953,

P. L. 287, 83d Cong., 67 Stat. 615, 620; 26 Ü. S. C. 124B) providing

for amortization deductions for grain storage facilities. [Regulations

were issued under this section by the Commissioner of Internal Revenue on Nov. 15, 1954, and were published in the Federal Register on

Nov. 19,1954,19 F. R. 7453.]

Act of July 11,1947 (P. L. 171, 8qth Cong., 61 Stat. 308; 31 U. S. C.

132), requiring the transfer of all original and substitute checks, which

have not been paid prior to the close of the fiscal year next following

the fiscal year in which issued, to a Treasury special-deposit account.

Section 9 (c) of the Act of August 2, 1946 (P. L. 600, 79th Cong.,

60 Stat. 806, 809), providing that the bid procedure set out in section

3709, Revised Statutes, as amended (41 U. S. C. 5), shall apply only

to the administrative transactions of wholly-owned government

corporations.

Independent Offices Appropriation Act, 1950 (Aug. 24, 1949, P. L.

266, 81st Cong., 63 Stat. 631, 662; 31 U. S. C.^ 870), authorizing corporations subject to the Government Corporation Control Act to consolidate into one or more accounts for banking and checking purposes

all cash, including amounts appropriated, from whatever source

derived.

Title II—General Provisions of the General Government Matters

Appropriation Act, 1957.
SUBPART C—EXPORT AND SURPLUS REMOVAL

[See also the following statutory provisions :

Page

Title I of the Agricultural Act of 1954 (set aside of agricultural commodities) 168

Title VI of the Agricultural Act of 1954 (acquiring information on foreign

demand for United States agricultural commodities) 170

Section 4 (h) of the Commodity Credit Corporation Charter Act (barter

of agricultural commodities for strategic and critical materials produced abroad) 143

Section 4Q7 of the Agricultural Act of 1949 (making farm commodities

available to relieve distress) 160

S'ection 416 of the Agricultural Act of 1949 (disposition of surplus commodities) 165

Title II of the Agricultural Act of 1956 (disposition of stocks of agricultural commodities) ] , . 180

AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE

ACT OF I95V AS AMENDED

AN ACT

To increase the consumption of United States agricultural commodities in foreign

countries, to improve the foreign relations 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 "Agricultural Trade Development and Assistance Act of

1954".

SEC. 2. It is hereby declared to be the policy of Congress to expand

international trade among the United States and friendly nations, to

facilitate the convertibility of currency, to promote the economic stability of American agriculture and the national welfare, to make maximum efficient use of surplus agricultural commodities in furtherance

of the foreign policy of the United States, and to stimulate and facilitate the expansion of foreign trade in agricultural commodities produced in the United States by providing a means whereby surplus

agricultural commodities in excess of the usual marketings of such

1 Approved July 10, 1954, Public Law 480, 83d Cong., 68 Stat. 454. See also sec. 402

of the Mutual Security Act of 1954, as amended (22 U. S. C, Supp. Ill, 1922), wliich

provides :

"SEC. 402. EARMARKING OP FUNDS.—Of the funds authorized to be made available pursuant to this Act for the fiscal year 1956, not less than $300,000,000, and for the fiscal year

1957 not to exceed $12,200,000 shall be used to finance the export and sale for foreign

currencies of surplus agricultural commodities or products thereof produced in the United

States, in addition to surplus agricultural commodities or products transferred pursuant to

the Agricultural Trade Development and Assistance Act of 1954, and in accordance with

the standards as to pricing and the use of private trade channels expressed in section 101

of said Act. Foreign currency proceeds accruing from such sales shall be used for the

purposes of this Act and with particular emphasis on the purposes of section 104 of the

Agricultural Trade Development and Assistance Act of 1954 which are in harmony with

the purposes of this Act. Notwithstanding section 1415 of the Supplemental Appropriation Act, 1953, or any other provision of law, the President may use or enter into agreements with friendly nations or organizations of nations to use for such purposes the

foreign currencies which accrue to the United States under this section."

190
AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT 191

commodities may be sold through private trade channels, and foreign

currencies accepted in payment therefor. It is further the policy to

use foreign currencies which accure to the United States under this

Act to expand international trade, to encourage economic development, to purchase strategic materials, to pay United States obligations

abroad, to promote collective strength, and to foster in other ways the

foreign policy of the United States. (7 U. S. C. 1691)

TITLE I—SALES FOE FOREIGN CUEEENOY^

SEC. 101. In furtherance of this policy, the President is authorized to

negotiate and carry out agreements with friendly nations or organizations of friendly nations to provide for the sale of surplus agricultural

commodities for foreign currencies. In negotiating such agreements

the President shall—

(a) take reasonable precautions to safeguard usual marketings

of the United States and to assure that sales under this Act will

not unduly disrupt world prices of agricultural commodities;

(b) take appropriate steps to assure that private trade channels

are used to the maximum extent practicable both with respect to

sales from privately owned stocks and from stocks owned by the

Commodity Credit Corporation ;

(c) give special consideration to utilizing the authority and

funds provided by this Act, in order to develop and expand continuous market demand abroad for agricultural commodities,

with appropriate emphasis on underdeveloped and new market

areas;

(d) seek and secure commitments from participating countries

that will prevent resale or transshipment to other countries, or

use for other than domestic purposes, of surplus agricultural commodities purchased under this Act, without specific approval of

the President; and

(e) afford any friendly nation the maximum opportunity to

purchase surplus agricultural commodities from the United

States, taking into consideration the opportunities to achieve the

declared policy of this Act and to make effective use of the foreign

currencies received to carry out the purposes of this Act. (7

U.S.C.1701)

SEC. 102. (a) For the purpose of carrying out agreements concluded

by the President hereunder, the Commodity Credit Corporation, in

accordance with regulations issued by the President pursuant to subsection (b) of this section, (1) shall make available for sale hereunder

to domestic exporters surplus agricultural commodities heretofore or

hereafter acquired by the Corporation in the administration of its

price-support operations, and (2) shall make funds available to

finance the sale and exportation of surplus agricultural commodities,

whether from private stocks or from stocks of the Commodity Credit

Corporation. In supplying such commodities to exporters under this

subsection the Commodity Credit Corporation shall not be subject to

the sales price restrictions in section 407 of the Agricultural Act of

2 Sec. 3 of Public Law 962, 84tli Cong., 70 Stat. 988, approved August 3, 1956, provides

that sales of fresh fruit and the products thereof under title I shall he exempt from the

requirements of the cargo preference laws.
192 AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT

1949, as amended. The commodity set-aside established for any commodity under section 101 of the Agricultural Act of 1954 (68 Stat.

897) shall be reduced by a quantity equal to the quantity of such

commodity financed hereunder which is exported from private stocks.^

(7U.S. C. 1702 (a))_

(b) In order to facilitate and maximize the use of private channels

of trade in carrying out agreements entered into pursuant to this Act,

the President may, under such regulations and subject to such safeguards as he deems appropriate, provide for the issuance of letters of

commitment against funds or guaranties of funds supplied by the

Commodity Credit Corporation and for this purpose accounts may be

established on the books of any department, agency, or establishment

of the Government, or on terms and conditions approved by the Secretary of the Treasury in banking institutions in the United States.

Such letters of commitment, when issued, shall constitute obligations

of the United States and moneys due or to become due thereunder shall

be assignable under the Assignment of Claims Act of 1940. Expenditures of funds which have been made available through accounts so

established shall be accounted for on standard documentation required

for expenditures of Government funds. (7 U. S. C. 1702 (b))

Sec. 103. (a) For the purpose of making payment to the Commodity Credit Corporation to the extent the Commodity Credit Corporation is not reimbursed under section 105 for commodities disposed of and costs incurred under titles I and II of this Act, there

are hereby authorized to be appropriated such sums as are equal to

(1) the Corporation's investment in commodities made available for

export under this title and title II of this Act, including processing,

packaging, transportation, and handling costs, (2) all costs incurred

by the Corporation in making funds available to finance the exportation of surplus agricultural commodities pursuant to this title and,

(3) all Commodity Credit Corporation funds expended for ocean

freight costs authorized under title II hereof for purposes of section

416 of the Agricultural Act of 1949, as amended.* Any funds or

other assets available to the Commodity Credit Corporation may

be used in advance of such appropriation or payments, for carrying

out the purposes of this Act. (7 U. S, C. 1703 (a) ) ^ ^

(b) Transactions shall not be carried out under this title which

wdll call for appropriations to reimburse the Commodity Credit Corporation, pursuant to subsection (a) of this section, in amounts in

excess of $3,000,000,000.^ This limitation shall not be apportioned

by year or by country, but shall be considered as an objective as well

as a limitation, to be reached as rapidly as possible so long as the

purposes of this Act can be achieved within the safeguards established.^

(7U. S.C.1703 (b))

SEC 104. Notwithstanding section 1415 of the Supplemental Appropriation Act, 1953, or any other provision of law, the President

8 Act of April 25, 1955, Public Law 25, 84th Cong., 69 Stat. 44, amended clause 2 by

removing requirements with respect to financing of sales from privately owned stocks and

added last sentence.

* Clause (3) added by sec. 208 (a) of Agricultural Act of 1956.

« This amount increased from $700,000,000 to $1,500,000,000 by Public Law 887, 84th

Cong., 69 Stat. 721, approved August 12, 1955, and to $3,000,000,000 by Public Law 962,

84th Cong., 70 Stat. 988, approved August 3, 1956.

«Last sentence added by Public Law 387, 84th Cong., 69 Stat. 721, approved August

12,1955.
AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT 193

may use or enter into agreements with friendly nations or organizations of nations to use the foreign currencies which accrue mider

this title for one or more of the following purposes :

(a) To help develop new markets for United States agricultural commodities on a mutually benefiting basis; . . ,

(b) To purchase or contract to purchase strategic and critical

materials, within the applicable terms of the Strategic and Critical Materials Stockpile Act, for a supplemental United States

stockpile or such materials as the President may determine from

time to time under contracts, including advance payment contracts, for supply extending over periods up to ten years. AH

strategic and critical materials acquired under authority of this

title shall be placed in the above named supplemental stockpile

and may be additional to the amounts acquired under authority

of the Strategic and Critical Materials Stockpile Act. Materials

so acquired shall be released from the supplemental stockpile

only under the provisions of section 3 of the Strategic and Critical Materials Stockpile Act;

(c) To procure military equipment, materials, facilities, and

services for the common defense ;

(d) For financing the purchase of goods or services for other

friendly countries ;

(e) For promoting balanced economic development and trade

among nations ;

(f) To pay United States obligations abroad;

(g) For loans to promote multilateral trade and economic development, made through established banking facilities of the

friendly nation from which the foreign currency was obtained

or in any other manner which the President may deem to be

appropriate. Strategic materials, services, or foreign currencies

may be accepted in payment of such loans ;

(h) For the financing of international educational exchange

activities under the programs authorized by section 32 (b) (2) of

the Surplus Property Act of 1944, as amended (50 U. S. C. App.

1641 (b) ). In the allocation of funds as among the various purposes set forth in this section, a special effort shall be made to

provide for the purposes of this subsection, including a particular

effort with regard to: (1) countries where adequate funds are

not available from other sources for such purposes, and (2)

countries where agreements can be negotiated to establish a fund

with the interest and principal available over a period of years

for such purposes ; ^

(i) For financing the translation, publication, and distribution of books and periodicals, including Government publications, abroad : Provided^ That not more than $5,000,000 may

be allocated for this purpose during any fiscal year; ^^

(j) For providing assistance to activities and projects authorized by section 203 of the United States Information and Educational Exchange Act of 1948, as amended (22 U. S. C. 1448),

7 Last sentence added by Mutual Security Act of 1956, Public Law 726, 84th Cong., 70

8 Subsection* added by Mutual Security Act of 1956, Public Law 726, 84th Cong., 70

Stat. 555, 565.

412526—57 14
194 AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT

but no foreign currencies which are available under the terms of

any agreement for appropriation for the general use of the

United States shall be used for the purposes of this subsection

(j) without appropriation therefor.^

Provided^ however^ That section 1415 of the Supplemental Appropriation Act, 1953, shall apply to all foreign currencies used for grants

under subsections^ (d) and (e) and for payment of United States

obligations involving grants under subsection (f) and to not less than

10 per centum of the foreign currencies which accrue under this title :

Provided^ however^ That the President is authorized to waive such

applicability of section 1415 in any case where he determines that it

would be inappropriate or inconsistent with the purposes of this title.

(7 U. S. C. 1T04)

SEC. 105. Foreign currencies received pursuant to this title shall be

deposited in a special account to the credit of the United States and

shall be used only pursuant to section 104 of this title, and any^ department or agency of the government using any of such currencies for a

purpose for which funds have been appropriated shall reimburse the

Commodity Credit Corporation in an amount equivalent to the dollar

value of the currencies used. (7 U. S. C. 1705)

SEC. 106. As used in this Act, "surplus agricultural commodity" shall

mean any agricultural commodity or product thereof, class, kind, type,

or other specification thereof, produced in the United States, either

privately or publicly owned, which is or may be reasonably expected

to be in excess of domestic requirements, adequate carryover, and

anticipated exports for dollars, as determined by the Secretary of

Agriculture. The Secretary of Agriculture is also authorized to

determine the nations with whom agreements shall be negotiated, and

to determine the commodities and quantities thereof which may be

included in the negotiations with each country after advising with

other agencies of Government affected and within broad policies laid

down by the President for implementing this Act.^^ (7 U. S. C. 1706)

SEC. 107. As used in this Act, "friendly nation" means any country

other than (1) the U. S. S. E., or (2) any nation or area dominated

or controlled by the foreign government or foreign organization controlling the world Communist movement. (7 U. S. C. 1707)

SEC. 108. The President shall make a report to Congress with respect

to the activities carried on under this Act at least once each six months

and at such other times as may be appropriate and such reports shall

include the dollar value, at the exchange rates in effect at the time of

the sale, of the foreign currency for which commodities exported pursuant to section 102 (a) hereof are sold. (7 U. S. C. 1708)

SEC. 109. No transactions shall be undertaken under authority of

this title afterJune 30,1957, except as required pursuant to agreements

theretofore entered into pursuant to this title. (7 U. S. C. 1709)

TITLE II—FAMINE EELIEF AND OTHER ASSISTANCE

SEC. 201. In order to enable the President to furnish emergency

assistance on behalf of the people of the United States to friendly

» Subsection added by Public Law 962, 84th Con?:., 70 Stat. 988, approved August 3, 1956.

10 Last sentence added by Public Law 887, 84th Cong., 69 Stat. 721, approved August

IJ!, 195o.
AGRICüLTtTRAL TRADE DEVELOPMENT AND ASSISTANCE ACT 195

peoples in meeting famine or other urgent or extraordinary^^ relief

requirements, the Commodity Credit Corporation shall make available

to the President out of its stocks such surplus agricultural commodities

(as defined in section 106 of title 1)=*^ as he may request, for transfer

(1) to any nation friendly to the United States in order to meet famine

or other urgent or extraordinary ^ relief requirements of such nation,

and (2) to friendly but needy populations without regard to the

friendliness of their government. (7 Ü. S. C. 1721)

SEC. 202. The President may authorize the transfer on a grant basis

of surplus agricultural commodities from Commodity Credit Corporation stocks to assist programs undertaken with friendly governments or

through voluntary relief agencies : Provided^ That the President shall

take reasonable precaution that such transiers will not displace or

interfere with sales which might otherwise be made. (7 U. S. C. 1722)

SEC. 203. Not more than $500,000,000 (including the Corporation's

investment in the commodities) shall be expended for all such transfers and for other costs authorized by this title. The President may

make such transfers through such agencies including intergovernmental organizations, in such manner, and upon such terms and conditions as he deems appropriate; he shall make use of the facilities of

voluntary relief agencies to the extent practicable. Such transfers

may include delivery f. o. b. vessels in United States ports and, upon

a determination by the President that it is necessary to accomplish

the purposes of this title or of section 416 of the Agricultural Act of

1949, as amended, ocean freight charges from United States ports

to designated ports of entry abroad may be paid from funds available

to carry out this title on commodities transferred pursuant hereto or

donated under said section 416. Funds required for ocean freight

costs authorized under this title may be transferred by the Commodity

Credit Corporation to such other Federal agency as may be designated

by the President.^^ (7 U. S. C. 1723)

SEC. 204. No programs of assistance shall be undertaken under the

authority of this title after June 80,1957. (7 U. S. C. 1724)

TITLE III—GENEEAL PROVISIONS

SEC. 301. [This section contains an amendment to section 407 of

the Agricultural Act of 1949 (p. 160), authorizing Commodity

Credit Corporation to make commodities available to relieve distress.]

SEC. 302. [This section contains a revision of section 416 of the

Agricultural Act of 1949 (p. 165), which authorizes various methods

of disposition by Commodity Credit Corporation of commodities in

surplus supply.]

SEC. 308. Whenever the Secretary has reason to believe that, in

addition to other authorized methods and means of disposing of

agricultural commodities owned by the Commodity Credit Corporation, there may be opportunity to protect the funds and assets of the

11 Words "or extraordinary" inserted by Public Law 962, 84th Cong., 70 Stat. OSS- approved August 3, 1956.

12 Requirement that delivery be made *'f. o. b. vessels in United-States ports" removed by sec. 208 (b) of Agricultural Act of 1956.

^3 Sec. 208 (c) of Agricultural Act of 1956 increased amount from $300,000,000 to

$500,000,000, provided for its use for other costs authorized by title II (including sec.

416 ocean freight costs), and added last two sentences.
196 AGRICULTURAL TRADE DEVELOPMENT AND ASÖISTANCE ACT

Commodity Credit Corporation by barter or exchange of such agricultural commodities for (a) strategic materials entailing less risk of

loss through deterioration or substantially less storage charges, or (b)

materials, goods or equipment required in connection with foreign

economic and military aid and assistance programs, or (c) materials

or equipment required in substantial quantities for offshore construction programs, he is hereby directed to use every practicable means,

in cooperation with other Government agencies, to arrange and make,

through private trade channels, such barters or exchanges or to utilize

the authority conferred on him by section 4 (h) of the Commodity

Credit Corporation Charter Act, as amended, to make such barters

or exchanges. Agencies of the United States Government procuring

such materials, goods or equipment are hereby directed to cooperate

with the Secretary in the disposal of surplus agricultural commodities

by means of barter or exchange. Strategic materials so acquired by

the Commodity Credit Corporation shall be considered as assets of the

Corporation and other agencies of the Government, in purchasing

strategic materials, shall purchase such materials from Commodity

Credit Corporation inventories to the extent available in fulfillment

of their requirements. The Secretary is also directed to assist,

through such means as are available to him, farmers' cooperatives in

effecting exchange of agricultural commodities in their possession for

strategic materials. (7 U. S. C. 1692)

SEC. 304. The President shall exercise the authority contained

herein (1) to assist friendly nations to be independent of trade with

the U. S. S. R. or nations dominated or controlled by the U. S. S. E.

for food, raw materials and markets, and (2) to assure that agricultural commodities sold or transferred hereunder do not result in

increased availability of those or like commodities to unfriendly

nations. (7U. S. C. 1693)

SEC. 305. All Commodity Credit Corporation stocks disposed of

under title II of this Act and section 416 of the Agricultural Act of

1949, as amended, shall be clearly identified by, as far as practical,

appropriate marking on each package or container as being furnished

by the people of the United States of America. (7 U. S. C. 1694)
Section 32 and Related Statutes

SECTION 32 OF PUBLIC LAW NO. 320, SEVENTY-FOURTH

CONGRESS ^

SEC. 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

section, the amount that may be devoteed, during any fiscal year after

1 The act of August 24, 1935, 49 Stat. 750, 774. Although this section has been amended

a number oí times, the ijnrposes of sec. 32—through payments or indemnities to encourage the exporation and domestic consumption of agricultural commodities and products

and to reestablish tai mers' purchasing power in connection with the normal production of

agricultural commodities—remain basically as originally enacted. Authority to encourage

consumption of agricultural commodities and products by their utilization among persons

in low-mcome groups was added by amendment of clause (2) in 1939 (53 Stat. 975).

Later amendments are noted below. Sec. 32 funds may be used (1) to purchase agricultural commodities nnd products and to donate them for relief purposes under the act

of June 28, 1937 (p. 199) and (2) to donate commodities to schools for utilization in school

lunch programs under the National School Lunch Act (p. 240. of this compilation).

,^ rr^^i.^9^ i^lJi\^ Agricultural Act of 1956. Public Law 540, 84th Cong., 70 Stat. 200

(7 L). b. C. 1855) authorized the appropriation for each fiscal year, beginning with the

hscal year euding .Tune 30, 1957, of $500,000,000 to enable the Secretary of Agriculture

to further carry out the provisions of sec. 32, subject to all provisions of law relating to

i!« i'An*nnn^î.'n^^^ funds appropiiatcd by such section, except that up to 50 percent of

the J;>00.000.q00 may be devoted during any fiscal year to any one agricultural commodity

or the products thereof.

197
198 SECTION 32 AND RELATED STATUTES

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 receiving price

support under 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. 712),

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) .^ (7 Ü. S. C. 612 (c) )

ACT OF JUNE 28, 1937, AS AMENDED «

AN ACT

To extend the time for purchase and distribution of surplus agricultural commodities for relief purposes and to continue the Federal Surplus Commodities

Corporation.

ße it enaoted ly the Senate and House of Representatives of the

united States of America in Congress assemhled^ Thsit in carrying out

the provisions of clause (2) of section 32 of the Act approved August

24,1935 (49 Stat. 774), as amended, the Secretary of Agriculture may

transfer to the Federal Surplus Commodities Corporation,^ which

Corporation is continued, until June 30, 1945, as an agency of the

United States under the direction of the Secretary of Agriculture,

such funds, appropriated by said section, as may be necessary for the

purpose of effectuating clause (2) of said section : Provided^ That such

transferred funds, together with other funds of the Corporation, may

be used for purchasing, exchanging, processing,^ distributing, disposing, transporting, storing, and handling of agricultural commodities

and products thereof and inspection costs, commissions, and other

incidental costs and expenses, without regard to the provisions of

existing law governing the expenditure of public funds and for administrative expenses, including rent, printing and binding, and the

employment of persons and means, in the District of Columbia and

elsewhere, such employment of persons to be in accordance with the

provisions of law applicable to the employment of persons by the

Agricultural Adjustment Administration.

3 The clause within the parentheses was substituted for "other than those designated in

title II of the Agricultural Act of 1949" by sec. 5 of the act of January 30, 1954, Public

Law 290, 83d Cong., 68 Stat. 4.

* This sentence was added by sec. 411 of the Agricultural Act of 1949. ^ ^^^^

5 This sentence was added by sec. 301 of the Agricultural Act of 1948, July 3, 1948,

Public Law 897, 80th Cong., 62 Stat. 1247, 1257. _^ „^^^ Ö Public Law 165, 75th Cong., 50 Stat. 323 ; February 16, 1938, Public Law 430, 75th

Cong., 52 Stat. 31, 38 ; June 27, 1942, Public Law 634, 77th Cong., 56 Stat. 461.

' The functions of the Federal Surplus Commodities Corporation have been transferred

to the Secretary of Agriculture (7 U. S. C. 612a, note) and the Corporation has been

dissolved.
SECTION 32 AND RELATED STATUTES 199

In carrying out clause (2) of section 32, the funds appropriated by

said section may be used for the purchase, without regard to the provisions of existing law governing the expenditure of public funds, of

agricultural commodities and products thereof, and such commodities,

as well as agricultural commodities and products thereof purchased

under the preceding paragraph of this section, may be donated for

relief purposes.

UTILIZATION or COMMODITY CKEDIT CORPORATION

Agricultural Act of 1949—Sec. 404. The Secretary, in carrying

out programs under section 32 of Public Law Numbered 320, Seventyfourth 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.

ACT OF AUGUST 11, 1939 «

AN ACT

To authorize the Federal Surplus Commodities Corporation to purchase and

distribute surplus products of the fishing industry.

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

united States of America in Congress asserribled^ That 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 :

Promded^ 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. The provisions of law relating to

tie 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)

SEO. 2. (a) The Secretary of Agriculture shall transfer to the

Secretary of the Interior each fiscal year, beginning with the fiscal

year commencing July 1, 1954, and ending on June 30, 1957, from

moneys made available to carry out the provisions of section 32 of such

Act of August 24,1935, an amount equal to 30 per centum of the gross

receipts from duties collected under the customs laws on fishery products (including fish, shellfish, moUusks, crustácea, aquatic plants and

animals, and any products thereof, including processed and manufactured products) 5 which shall be maintained in a separate fund and

8 Public Law 393, 76th Cong., 53 Stat. 1411.

»The functions of the Federal Surplus Commodities Corporation have been transferred

to the Secretary of Agriculture (7 U. S. C. 612a note) and the Cornoration has been

dissolved.
200 SECTION 32 AND RELATED STATUTES

used hj the Secretary of the Interior (1) to promote the free flow of

domestically produced fishery products in commerce by conducting a

fishery educational service and fishery technological, biological and

related research programs, the moneys so transferred to be also available for the purchase or other acquisition, construction, equipment,

operation, and maintenance of vessels or other facilities necessary for

conducting research as provided for in this section, and (2) to develop

and increase markets for fishery products of domestic origin and (3)

to conduct any biological, technological, or other research pertaining

to American fisheries.

(b) For the purposes of this section, any agency of the United

States, or any corporation wholly owned by the United States, is

authorized to transfer, without reimbursement or transfer of funds,

any vessels or equipment excess to its needs required by the Secretary

of the Interior for the activities, studies, and research authorized

herein.

(c) In carrying out the purposes and objectives of this section,

the Secretary of the Interior is directed as far as practicable to cooperate with other appropriate agencies of the Federal Government,

with State or local governmental agencies, private agencies, organizations, or individuals, having jurisdiction over or an interest in fish

or fishery commodities and he is authorized to appoint an advisory

committee of the American fisheries industry to advise him in the

formulation of policy, rules and regulations pertaining to requests

for assistance, and other matters.

(d) The Secretary of the Interior is further authorized to retransfer any of the funds notto exceed $1,500,000 to be made available under

this section to the Secretary of Agriculture to be used for the purposes

specified in section 1 of this Act, and only such funds as are thus transferred shall be used for the purposes specified in section 1 of this Act

with respectto domestically produced fishery products.

(e) The separate fund created for the use of the Secretary of

the Interior under section 2 (a) of this Act and the annual accruals

thereto shall be available for each year until expended by the

Secretary.

(f) The Secretary of the Interior shall make a report to the appropriate committees of Congress annually on the use of the separate

fund created under section 2 of this Act. (15 U. S. C. 7l3ç-3) ^«^

WHEAT FLOUR AND CORN MEAL

ACT OF AUGUST 9, 1955

The Secretary of Agriculture is hereby authorized upon specific

request of the Governor of any State during the period commencing

with the date of this Act and ending June 30,1957, to make available,

10 The provisions of this section were snbstitntpd for the original provisions by the act

of July 1, 1954, Public Law 466, 83cl Con.i?., 68 Stat 376. Subsection (e) was amended

by the act of August 8, 1956, 70 Stat. 1124. This Act also continued the authority for

the transfer* of funds to the Secretary of the Interior for fiscal years after June 30, 1957.
SECTION 32 AND RELATED STATUTES 201

pursuant to clause (2) of section 32 of the Act approved August 24,

1935 (7 Ü. S. C. 612c) for distribution by State agencies, other than

institutions and schools, directly to families and persons determined

by appropriate State or local public welfare agencies to be in need,

wheat flour and corn meal in such quantities as the Secretary of Agriculture determines can be effectively distributed and utilized within

such period without regard to the requirement contained in said section

32, that such funds be devoted principally to perishable nonbasic agricultural commodities and their products, but not more than $15,000,000

of such funds shall be devoted in any fiscal year to carrying out this

Act. Such flour and meal shall be made available by the Secretary

upon such conditions as he deems to be in the public interest, to such

State agency or agencies as may be designated by the proper State

authority and approved by the Secretary, and at one or more central

locations in such State. (Public Law 311, 84th Cong., 69 Stat. 608;

7U.S.C.612cnote^
INTERNATIONAL WHEAT AGREEMENT ACT OF 1949,^

AS AMENDED

AN ACT

To give effect to the International Wheat Agreement signed by the United States

and other countries relating to the stabilization of supplies and prices in the

international wheat market.

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

united States of America in Congress assembled^ That this Act shall

be known as the "International Wheat Agreement Act of 1949." (7

U. S. C. 1641 note)

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 and the agreement revising

and renewing the International Wheat Agreement for a period ending

July 31,1956, signed by Australia, Canada, France, the United States,

and certain wheat importing countries and the Agreement (International Wheat Agreement, 1956) further revising and renewing the

International Wheat Agreement for a period ending July 31, 1959,

signed by Argentina, Australia, Canada, France, Sweden, the United

States, 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 pursuant to section 32 of Public Law^ 320, Seventyfourth 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

1 Approved October 27, 1949, Public Law 421, 81st Cong., 63 Stat. 945. The original

International Wheat Agreement was a contractual arrangement between the governments

of 4 wheat-exporting countries and 42 wheat-importing countries involving the annual

trade of 580,916,690 bushels of wheat over a period of 4 yeajs beginning August 1/1949,

within a fixed range of prices. The agreement was ratified by the President wi^ the

advice and consent of the Senate (Ex. M, 81st Cong., 1st sess.K The International Wheat

Agreement Act of 1949 was implementing legislation authorizing the necessary action to

carry out the terms of this agreement. , ^ . , ^ „ », . .

The International Wheat Agreement was renewed for a period of 3 years beginning

August 1, 1953. The International Wheat Agreement, 1956, renewed the 1949 agreement

«irough July 31, 1959. It provides for the annual trade of 302,915,145 bushels of wheat

and has been ratified by 6 exporting and 39 importing countries up to this time. This

agreement was ratified by the President with the advice and consent of the Senate (Ex I,

84th Cong., 2d sess.). The International Wheat Agreement Act of 1949 has been amended

to authorize the necessary action to carry out the terms of the revised agreement.

2 The reference to the revised agreement was added by the act of August 1, 1953, Public

Law 180. 83d Cong., 67 Stat. 358. The reference to the second revision was added by the

act of August 3, 1956, Public Law 945, 84th Cong., 70 Stat. 966.

202
INTERNATIONAL WHEAT AGREEMENT ACT OF 1949 203

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 purchasesthereunder on and after August

1,1949, and up to and including June 30, 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 wheat-flour. 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

toit. (7U. 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. (7U. 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

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,

3 Sec. 112 (m) of the Economic Cooperation Act of 1948 (as added by the act of June 5,

1950, Public Law 535, 81st Cong., 67 Stat. 198, 200 ;, 22 Ü. S. C. 1510 (m) ) provides :,

**(m) Notwithstanding any other provision of law, the pricing provisions of section

112 (e) of this title and section 4 of the Act of July 16, 1943 (57 Stat. 566) shall not be

applicable to domestic wheat and wheat flour procured under this title or any other Act

providing for assistance or relief to foreign countries, supplied to countries which are

parties to the International Wheat Agreement of 1949 and credited to their guaranteed

purchases thereunder."

* Several appropriations have been made pursuant to this provision.
204 INTERNATIONAL WHEAT AGREEMENT ACT OF 1949

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 TJ. 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, as the 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-floui" 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 regulations thereunder, 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 or 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

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

» Sec. 607 (g) was repealed September 12. 1950, 64 Stat. 843.
INTERNATIONAL WHEAT AGREEMENT ACT OP 1949 205

Classification Act, at rates not in excess of $50 per diem. (7 U. S. C.

1642(h))

(i) The functions exercised under 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 3 and 10

thereof. (7U.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 (j))

[Act of August 1,1953—Sec. 2. Reference in any law to the International Wheat Agreement of 1949 shall be deemed to include the

agreement revising and renewing the International Wheat Agreement.

(P. L. 180,83d Cong., 67 Stat. 358; 7 U. S. C. 1641 note)]

[Act of August 3,1956—Sec. 2. Eeference in any law to the International Wheat Agreement of 1949 shall be deemed to include the

Agreement (International Wheat Agreement, 1956) revising and renewing the International Wheat Agreement for a period ending

July 31,1959.]
PART VII

APPLICABLE APPROPRIATIONS

FISCAL YEAR 1956

AGRICULTURAL CONSERVATION PROGRAM SERVICE

For necessary expenses 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; $214,500,000, 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

and Farm Credit Administration Appropriation Act 1955, carried

out during the period July 1, 1954, to December 31, 1955, inclusive:

Provided, That not to exceed $22,800,000 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 $4,320,000 shall be transferred

to the appropriation account, "Administrative expenses, section 392,

Agricultural Adjustment Act of 1938" : Provided ficrther, 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 Numbered 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 fv/rther, That such amount shall be available for salaries

and other administrative expenses in connection with the formulation

and administration of the 1956 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 accord206
APPLICABLE APPROPRIATIONS 207

anee 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 $1,500,

excCipt where the participants from two or more farms or ranches

join to carry out approved practices designed to conserve or improve

the agricultural resources of the community) ; 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 (16 Ü. S. C. 590h (b) ), for the

respective States: Provided further^ That not to exceed 5 per centum

of the allocation for the 1956 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 itstechnicians 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 for the 1956 program

$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 floodprevention work in approved watersheds : Provided further^ That in

carrying out the 1956 program the Secretary shall give particular consideration to the conservation problems on farmlands diverted from

crops under acreage-allotment programs: Provided further^ That such

amounts shall he available for the purchase of seeds, fertilizers, lime,

trees, or any other farming material, 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 Coder, 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.

[PUBLIC LAW 24, 84th Cong.—The funds appropriated under this

head m the Third Supplemental Appropriation Act, 1954, shall remain

available until December 31, 1955, to enable the Secretary of Agriculture to make payments to farmers who carry out emergency wind
208 APPLICABLE APPROPRIATIONS

erosion control measures under the 1955 agricultural conservation program, formulated under the Soil Conservation and Domestic Allotment Act, as amended, in counties designated by the Secretary o±

Agriculture as subject to damages by excessive wind erosion: f'rövided. That said funds may be expended without regard to the adjustments required under section 8 (e) of the Soil Conservation and

Domestic Allotment Act, as amended (16 U. S. C. 590h (e) ), and may

be distributed among States and individual farmers without regard

to any other provision of law : Provided further, That said funds may

be used to reimburse the emergency fund of the President authorized

by Public Law 875, Eighty-first Congress (42 U. S. C. 1855), for

such funds as have been allocated to the Secretary of ^f^^^}^^^^^

paymentsfor the specific purposes authorized herein. (April 22,195b,

69 Stat. 29).1

SCHOOL LUNCH PROGRAM

For necessary expenses to carry out the provisions of the National

School Lunch Act (42 U. S. C. 1751-1760), $83,236,197: PW^^^,

That no part of this appropriation shall be used for nonfood assistance undersection 5 ofsaid Act.

COMMODITY STABILIZATION SERVICE

AGRICULTURAL ADJUSTMENT PROGRAMS

For necessary expenses to formulate and carry out acreage allotment

and marketing quota programs pursuant to provisions of title ill

of the Agricultural Adjustment Act of 1938, as amended (7 U. b. O.

1301-1393), $39,000,000, of which not more than $6,000,000 shall be

transferred to the appropriation account "Administrative expenses,

section 392, Agricultural Adjustment Act of 1938".

SUGAR ACT PROGRAM

For necessary expenses to carry into effect the provisions of the

Sugar Act of 1948 (7 U. S. C. 1101-1160), $59,600,000, to remain

available until June 30 of the next succeeding fiscal year: Provided,

That expenditures (including transfers) from this ^VV^^^^^^tion ±ov

other than payments to sugar producers shall not exceed $1,575,000.

FEDERAL CROP INSURANCE CORPORATION

For operating and administrative expenses, $6,000,000.

TITLE II—COEPOEATIONS

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 m accord

with law, and to make such contracts and commitments without regard

to fiscal year limitations as provided by section 104 of the (jovernment Corporation Control Act, as amended, as may be necessary m

carrying out the programs set forth in the budget for the fiscal year

1956 for such corporation or agency, except as hereinafter provided:
API>LICABLE APPROPRIATIONS 209

Federal Crop Insurance Corporation: Provided^ That the direct

costs of loss adjusters for crop inspections and loss adjustments may

be considered as nonadministrative or nonoperating expenses: Provided further^ That not to exceed $1,500,000^ of administrative and

operating expenses may be paid from premium income.

COMMODITY CREDIT CORPORATION

RESTORATION OF CAPITAL IMPAIRMENT

To restore the capital impairment of the Commodity Credit Corporation determined by the appraisal of June 30, 1954, pursuant to

section 1 of the Act of March 8,1938, as amended (15 U. S. C. 7l3a-l),

$1,634,659.

LIMITATION ON ADMINISTRATIVE EXPENSES

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 $26,000,000

shall be available for administrative expenses of the Corporation:

Provided further, That $1,000,000 of this authorization shall be

available only to expand and strengthen the sales program of the Corporation pursuant to authority contained in the Corporation's charter :

Provided further, That $934,914 of this authorization shall be placed

in reserve to be apportioned pursuant to section 3679 of the Eevised

Statutes, as amended, for use only in such amounts and at such time

as may become necessary to carry out program operations : 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.

TITLE III—SPECIAL ACTIVITIES

EESEARCH ON STRATEGIC AND CRITICAL AGRICULTURAL MATERIALS

For expenses necessary to carry out section 7 (b) of the Strategic

and Critical Materials Stock Piling Act of July 23, 1946 (50 U. S. C.

98f), $300,000: Provided, That this appropriation shall be subject to

applicable provisions contained in the item "Salaries and expenses,

Agricultural Eesearch Service".

REPAYMENT TO COMMODITT CREDIT CORPORATION FOR ERADICATION OF

FOOT-AND-MOUTH AND OTHER CONTAGIOUS DISEASES OF ANIMALS AND

POULTRY

For reimbursement to Commodity Credit Corporation for sums

transferred to the appropriation "Eradication of foot-and-mouth and

other contagious diseases of animals and poultry", fiscal year 1954

(including interest thereon through June 30, 1955), pursuant to

authority contained under such head in the Department of Agriculture

Appropriation Act, 1954, $5,788,897.

412526—57 15
210 APPLICABLE APPROPRIATIONS

INTERNATIONAL WHEAT AGREEMENT

To discharge indebtedness of the Commodity Credit Corporation

to the Secretary of the Treasury for the net costs during the fiscal

year 1954 (including interest thereon through June 30, 1955) under

the International Wheat Agreement Act of 1949, as amended (7

Ü. S. C. 1641-1642), $57,378,551.

REIMBURSEMENT TO COMMODITY CREDIT CORPORATION FOR TRANSFER OF

WHEAT TO PAKISTAN

To reimburse the Commodity Credit Corporation for its investment

(including costs of handling, delivery, and interest through June 30,

1955) in wheat transferred to the Government of Pakistan under the

Act of June 25,1953 (67 Stat. 80), $69,385,831.

REIMBURSEMENT TO COMMODITY CREDIT CORPORATION FOR EMERGENCY

FEED ASSISTANCE

To reimburse the Commodity Credit Corporation for losses representing the difference between the value of feed furnished farmers and

stockmen in disaster areas and sales price received by the Corporation, $42,100,000.

REIMBURSEMENT TO COMMODITY CREDIT CORPORATION FOR EMERGENCY

FAMINE REUEF TO FRIENDLY PEOPLES

To reimburse the Commodity Credit Corporation for its investment

(including costs of handling, delivery, and interest through June 30,

1955) in commodities disposed of under the Act of August 7, 1953

(67 Stat. 476), $9,545,830. (Approved May 23,1956, Public Law 41,

84th Cong., 69 Stat. 51)

FISCAL YEAR 1957

AGRIOTJLTimAL CONSERVATION PROGRAM SERVICE

For necessary expenses to carry into effect the provisions of sections 7

to 17, inclusive, of thé 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; $227,500,000, 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 and Farm Credit Administration Appropriation

Act, 1956, carried out during the period July 1,1955, to December 31,

1956, inclusive : Provided^ That not to exceed $24,698,000 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 $4,773,800 shall be

transferred to the appropriation account "Administrative expenses,

section 392, Agricultural Adjustment Act of 1938" : Provided fur-
APPLICABLE APPROPKIATIONS 211

ther^ That payments to claimants herennder 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

Numbered 9069, of February 23,1942, shall be used to pay the salaries

or expenses of any regional information employees or any State information employees, butthis shall not preclude the answering of inquiries

or supplying of information at the coimty 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 1957 program of soil-building practices and soiland water-conserving practices, under the Act of February 29, 1936,

as amended (amountmg to $250,000,000, including administration, and

no participant shall receive more than $1,500, except where the participants from two or more farms or ranches join to carry out approved

practices designed to conserve or improve the agricultural resources

of the community) ; 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 (16 U. S. C. 590h (b)), for the respective States: Provided

further^ That not to exceed 5 per centum of the allocation for the 1957

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

fumds 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,

and in addition, on the recommendation of such county committee

and approval of the State committee, not to exceed 1 per centum may

be made available to any other Federal, State, or local public agency

for the same purpose and under the same conditions : Provided further^

That for the 1957 program $2,500,000 shall be available for technical

assistance in formulatmg 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 further^ That such amounts shall be available for the purchase of seeds, fertilizers, lime, trees, or any other farming material,

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 fur-
212 APPLICABLE APPROPRIATIONS

ther^ 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 currerit 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.

SCHOOL LUNCH PKOGRAM

For necessary expenses to carry out the provisions of the National

School Lunch Act (42 U. S. C. 1751-17G0), $100,000,000: Provided,

That no part of this appropriation shall be used for nonfood assistance under section 5 of said Act.

COMMODITY STABILIZATION SERVICE

AGRICULTURAL ADJUSTMENT PROGRAMS

For necessary expenses 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), $41,200,000, of which not more than $6,343,100

shall be transferred to the appropriation account "Administrative

expenses, section 392, Agricultural Adjustment Act of 1938".

SUGAR ACT PROGRAM

For necessary expenses to carry into effect the provisions of the

Sugar Act of 1948 (7 U. S. C. 1101-1160), $67,600,000, 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 $1,873,000.

FEDERAL CROP INSURANCE CORPORATION

For operating and administrative expenses, $6,210,000.

TITLE II—COEPOKATIONS

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

1957 for such corporation or agency, except as hereinafter provided :

Federal Crop Insurance Corporation: Provided, That the direct
APPLICABLE APPROPRIATIONS 213

costs of loss adjusters for crop inspections and loss adjustments may

be considered as nonadministrative or nonoperating expenses: Promded further, That not to exceed $2,000,000 of administrative and

operating expenses may be paid from premium income.

COMMODITY CREDIT CORPORATION

RESTORATION OF CAPITAL IMPAIRMENT

To restore the capital impairment of the Commodity Credit Corporation determined by the appraisal of June SO, 1955, pursuant to

section 1 of the Act of March 8,1938, as amended (15 U. S. C. 7l3a-l),

$929,287,178.

LIMITATION ON ADMINISTRATIVE EXPENSES

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 $31,000,000

shall be available for administrative expenses of the Corporation including uniforms, or allowances therefor, as authorized by the Act of

September 1, 1954 (5 U. S. C. 2131), as amended: Provided further,

That $1,000,000 of this authorization shall be available only to expand

and strengthen the sales program of the Corporation pursuant to

authority contained in the Corporation's charter : Provided further,

That not less than 7 per centum of this authorization shall be placed

in reserve to be apportioned pursuant to section 3679 of the Revised

Statutes, as amended, for use only in such amounts and at such time

as may become necessary to carry out program operations : 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.

TITLE III—SPECIAL ACTIVITIES

EESEARCH ON STRATEGIC AND CRITICAL AGRICULTURAL MATERIALS

For expenses necessary to carry out section 7 (b) of the Strategic

and Critical Materials Stock Piling Act of July 23, 1946 (50 U. S. C.

98f), $314,000 : Provided, That this appropriation shall be subject to

applicable provisions contained in the item "Salaries and expenses.

Agricultural Eesearch Service".

REIMBURSEMENTS TO COMMODITY CREDIT CORPORATION EOR ADVANCES FOR

ANIMAL DISEASE ERADICATION ACTIVITIES

To reimburse the Commodity Credit Corporation for authorized

transfers (including interest through June 30, 1956^ as follows: (1)

$1,269,330 for sums transferred to the appropriation "Foot-and-mouth
214 APPLICABLE APPROPRIATIONS

and other contagious diseases of animals and poultry", fiscal year 1955,

for eradication activities, pursuant to authority contained under such

head in the Department of Agriculture and Farm Credit Administration Appropriation Act, 1955, and (2) $11,791,624 for sums transferred to the appropriation "Salaries and expenses. Agricultural Eesearch Service", fiscal year 1955, for brucellosis eradication, pursuant

to section 204 (e) of the Act of August 28,1954 (7 U. S. C. 397).

REIMBURSEMENT TO COMMODITY CREDIT CORPORATION FOR ADVANCES FOR

GRADING AND CLASSING ACTIVITIES

For reimbursement to Commodity Credit Corporation for sums

transferred to the appropriation "Marketing research and service",

fiscal year 1955 (including interest thereon through June 30, 1956)^

pursuant to the Act of August 31,1951 (7 U. S. C. 414a), for grading

tobacco and classing cotton without charge to producers, as authorized by law (7 U. S. C, 473a, 511d), $367,740.

SPECIAL COMMODITY DISPOSAL PROGRAMS

To reimburse the Commodity Credit Corporation for authorized

costs (including interest through June 30, 1956), as follows: (1)

$101,130,155 under the International Wheat Agreement Act of 1949,

as amended (7 U. S. C. 1641-1642) ; (2) $88,628,927 for commodities

disposed of for emergency famine relief to friendly peoples pursuant

to title II of the Act of July 10, 1954 (7 U. S. C. 1691-1694) ; (3)

$67,477,228 for the sale of surplus agricultural commodities for foreign currencies pursuant to title I of the Act of July 10, 1954 (7

U. S. C. 1691-1694) ; and (4) $184,678 for the transfer of hay and

pasture seeds to Federal land-administering agencies under the Act of

July 26,1954 (68 Stat. 529).

TITLE V—GENEKAL PROVISIONS

SEC. 501. 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 645 passenger motor vehicles

of which 622 shall be 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. 502. Provisions of law prohibiting or restricting the employment of aliens shall not apply to employment under the appropriation for the Foreign Agricultural Service.

SEC'. 503. Of appropriations herein made which are available for

the purchase of lands, not to exceed $1 may be expended for each

option to purchase any particular tract or tracts of land.

SEC. 504. 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, comimission, 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.
APPLICABLE APPROPKIATIONS 215

SEC. 505. 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. 506. Not less than $1,500,000 of the appropriations of the

Department for research and service work authorized by the Act of

August 14, 1946 (7 U. S. C. 427, 1621-1629), and the Act of July 28,

1954 (Public Law 545), shall be available for contracting in accordance with said Acts.

SEC. 507. 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. 508. Appropriations of the Department available for research

and service work authorized by the Act of August 14,1946 (7 U. S. C.

427, 1621-1629) shall be available for expenses of any advisory committee established as provided in title III of said Act to assist in

effectuating the research and service work of the Department.

This Act may be cited as the "Department of Agriculture and Farm

Credit Administration Appropriation Act, 1957".

(Approved June 4,1956, Public Law 554, 84th Cong., 70 Stat. 229.)
PART VIII

MISCELLANEOUS LAWS

EXPLANATORY NOTE

Included in this part of the compilation are certain miscellaneous

laws which govern or affect certain programs and functions of several

agencies of the Department of Agriculture.

The Agricultural Marketing Agreement Act of 1937 reenacted and

amended certain provisions of the Agricultural Adjustment Act (of

1933), as amended, which related to marketing agreements and orders,

and which contained section 22 authorizing the imposition of quotas

and fees on agricultural commodities imported into the United States.

The National School Lunch Act provides for distribution of commodities to schools for utilization in the school-lunch program.

The act of December 20, 1944, authorizes the Secretary of Agriculture to compromise, adjust, or cancel certain debts of farmers to the

United States.

AGRICULTURAL MARKETING AGREEMENT ACT OF 1937,^

REENACTING, AMENDING, AND SUPPLEMENTING THE

AGRICULTURAL ADJUSTMENT ACT, AS AMENDED

AN ACT

To reenact and amend provisions of the A^ricuUnral Adjustment Act, as

amended, relating to marketing agreements and orders.

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

United States of America in Congress assembled^ That the following

provisions of the Agricultural Adjustment Act, as amended, not having been intended for the control of the production of agricultural

commodities, and having been intended to be effective irrespective of

thé validity of any other provision of that Act are expressly affirmed

and validated, and are reenacted without change except as provided

in section 2 :

(a) Section 1 (relating to the declaration of emergency) ;

DECLARATIOlsr

[It is hereby declared that the disruption of the orderly exchange of

commodities in interstate commerce impairs the purchasing power

1 Approved June 3, 1937, Public Law 137, 75th Con.?., 50 Stat. 246. This act reenacted

and apiended certain provisions of title I of the Agricultural Adjustment Act (of 1933),

as amended. These provisions (with all amendments up to this time) are set out in sec. 1

after the appropriate subsections. Amendments made by the Agricultural Act of 1948 and

subsequent legislation are noted below. Wherever reference is made to "this title'' in the

act, the reference is to title I of the 1933 act. The applicable sections are 7 U. S. C. 601-

608, 608a, 608b, 608c, 608d-612, 613, 614-619, 620, 623, 624.

2ia
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 217

of farmers and destroys the value of agricultural assets which

support the national credit structure and that these conditions aüect

transactions in agricultural commodities with a national public interest, and burden and obstruct the normal channels of interstate

commerce. (7 U. S. C. 601)]

(b) Section 2 (relating to declaration of policy) ;

DECLARATION OF POLICY

rSEC. 2. Itis hereby declared to be the policy of Congress—

(1) Through the exercise of the powers conferred upon the becretary of Agriculture under this title, to establish and maintain such

orderly marketing conditions for agricultural commodities m interstate commerce as will establish, as the prices to farmers, parity prices

as defined by section 301 (a) (1) of the Agricultural Adjustment Act

of 1938.2 , , , . .

(2) To protect the interest of the consumer by (a) approaching

the level of prices which it is declared to be the policy of Congress

to establish in subsection (1) of this section by gradual correction

of the current level at as rapid a rate as the Secretary ot Agriculture

deems to be in the public interest and feasible in view of the current

consumptive demand in domestic and foreign markets, and (b) aiithorizing no action under this title which has for its purpose the

maintenance of prices to farmers above the level which it is declared

to be the policy of Congress to establish in subsection (1) of this

(3) Through the exercise of the power conferred upon the Secretary of Agriculture under this title, to establish and maintain such

minimum standards of quality and maturity and such grading and

inspection requirements for agricultural commodities enumerated m

section 8c (2), other than milk and its products, in interstate commerce

as will effectuate such orderly marketing of such agricultural commodities as will be in the public interest.

(4) Through the exercise of the power conferred upon the Secretary of Agriculture under this title, to establish and maintain such

orderly marketing conditions for any agricultural commodity enuraerated in section 8c (2) as will provide, in the interests of producers

and consumers, an orderly flow of the supply thereof to market

throughout its normal marketing season to avoid unreasonable fluctuations in supplies and prices. (7 U. S. C. 602)3 ^

(c) Section 8a (5), (6), (7), (8), and (9) (relating to violations

and enforcement) ;

[SEC. 8a (5) Any person willfully exceeding any quota or allotment

fixed for him under this title by the Secretary of Agriculture, and

any other person knowingly participating, or aiding, in the exceeding

of said quota or allotment, shall forfeit to the United States a sum

equal to three times the current market value of such excess, which

forfeiture shall be recoverable in a civil suit brought in the name

of the United States.

2 Amended by sec. 302 of the Agricultural Act of 1948 (July 3, 1948, Public Law 897,

80th Cong., 62 Stat. 1247) to refer to parity prices as defined in the Agricultural Adjustment Act of 1938. .„. ^ ^, * , ,0. 1*4. 4> te^KA 3 Subsec. (4) added by sec. 401 of the Agricultural Act of 1954.
218 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

(6) 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 any order, regulation, or agreement, heretofore or hereafter made or issued pursuant to this title,

in any proceeding now pending or hereafter brought in said courts.

(7) Upon the request of the Secretary of Agriculture, it shall be

the duty of the several district attorneys of the United States, in

their respective districts, under the directions of the Attorney General, to institute proceedings to enforce the remedies and to collect

the forfeitures provided for in, or pursuant to, this title. Whenever

the Secretary, or such officer or employee of the Department of

Agriculture as he may designate for the purpose, has reason to believe that any handler has violated, or is violating, the provisions of

any order or amendment thereto issued pursuant to this title, the

Secretary shall have power to institute an investigation and, after

due notice to such handler, to conduct a hearing in order to determine the facts for the purpose of referring the matter to the Attorney

General for appropriate action,

(8) The remedies provided for in this section shall be in addition

to, and not exclusive of, any of the remedies or penalties provided

for elsewhere in this title or now or hereafter existing at law or in

equity.

(9) The term "person" as used in this title includes an individual,

partnership, corporation, association, and any other business unit.

(7 U S. C. 608a)l

( d) Section 8b (relating to marketing agreements) ;

[SEC. 8b. In order to effectuate the declared policy of this title,

the Secretary of Agriculture shall have the power, after due notice

and opportunity for hearing, to enter into marketing agreements

with processors, producers, associations of producers, and others

engaged in the handling of any agricultural commodity or product

thereof, only with respect to such handling as is in the current of

interstate or foreign commerce or which directly burdens, obstructs,

or affects, interstate or foreign commerce in such commodity or

product thereof. The making of any such agreement shall not be

held to be in violation of any of the antitrust laws of the United

States, and any such agreement shall be deemed to be lawful: Provided^ That no such agreement shall remain in force after the termination of this Act. (7U.S.a608b)]

(e) Section 8c (relating to orders) ;

ORDERS

[SEC. 8C. (1) The Secretary -of Agriculture shall, subject to the

provisions of this section, issue, and from time to time amend, orders

applicable to processors, associations of producers, and others engaged in the handling of any agricultural commodity or product

thereof specified in subsection (2) of this section. Such persons are

referred to in this title as "handlers." Such orders shall regulate,

in the manner hereinafter in this section provided, only such handling

of such agricultural commodity, or product thereof, as is in the current of interstate or foreign commerce, or which directly burdens.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 219

obstructs, or affects, interstate or foreign commerce in such commodity

or product thereof.

COMMODITIES TO WHICH APPLICABLE

(2) Orders issued pursuant to this section shall be applicable only

to the following agricultural commodities and the products thereof

(except canned or frozen grapefruit, the products of naval stores, and

the products of honeybees), or to any regional, or market classification

of any such commodity or product: Milk, fruits (including filberts,

almonds,* pecans and walnuts but not including apples, other than

apples produced in the States of Washington, Oregon, and Idaho, and

not including fruits, other than olives and grapefruit, for canning or

freezing), tobacco, vegetables (not including vegetables, other than

asparagus, for canning or freezing), soybeans, hops, honeybees and

naval stores as included in the Naval Stores Act and standards established thereunder (including refined or partially refined oleoresin) :

Promded^ That no order issued pursuant to this section shall be effective as to any grapefruit for canning or freezing unless the Secretary

of Agriculture determines, in addition to other findings and determinations required by this Act, that the issuance of such order is approved

or favored by the processors who, during a representative period

determined by the Secretary, have been engaged in canning or freezing such commodity for market and have canned or frozen for market

more than 50 per centum of the total volume of such commodity

canned or frozen for market during such representative period.^

NOTICE AND HEARING

(3) Whenever the Secretary of Agriculture has reason to believe

that the issuance of an order will tend to effectuate the declared policy of this title with respect to any commodity or product thereof

specified in subsection (2) of this section, he shall give due notice of

and an opportunity for a hearing upon a proposed order.

EINDING AND ISSUANCE OF ORDER

(4) After such notice and opportunity for hearing, the Secretary

of Agriculture shall issue an order if he finds, and sets forth in such

order, upon the evidence introduced at such hearing (in addition to

such other findings as may be specifically required by this section)

that the issuance of such order and all of the terms and conditions

thereof will tend to effectuate the declared policy of this title with

respect to such commodity.

TERMS—MILK AND ITS PRODUCTS

(5) In the case of milk and its products, orders issued pursuant

to this section shall contain one or more of the following terms and

conditions, and (except as provided in subsection (7) ) no others:

* The words "filberts, almonds" were added by the act of June 29, 1949, Public Law 139. 81st Cong., 63 Stat. 282.

s The provisions of subsec. (2) were substituted for the previous provisions by sec. 401

of the Agricultural Act of 1954.
220 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

(A) Classifying milk in accordance with the form in which or the

purpose for which it is used, and fixing, or providing a method for

fixing, minimum prices for each such use classification which all

handlers shall pay, and the time when payments shall be made for

milk purchased from producers or associations of producers. Such

prices shall be uniform as to all handlers, subject only to adjustments for (1) volume, market, and production differentials customarily applied by the handlers subject to such order, (2) the grade

or quality of the milk purchased, and (3) the locations at which

delivery of such milk, or any use classification thereof, is made to

such handlers,

(B) Providing:

(i) for the payment to all producers and associations of producers delivermg milk to the same handler of uniform prices

for all milk delivered by them : Provided^ That, except m the

case of orders covering milk products only, such provision is

approved or favored by at least three-fourths of the producers

who, during a representative period determined by the Secretary

of Agriculture, have been engaged in the production for market

of milk covered in such order or by producers who, during such

representative period, have produced at least three-fourths of

the volume of such milk produced for market during such period; the approval required hereunder shall be separate and

apart from any other approval or disapproval provided for by

this section ; or

(ii) for the payment to all producers and associations of producers delivering milk to all handlers of uniform prices for all

milk so delivered, irrespective of the uses made of such milk by

the individual handler to whom it is delivered ;

subject, in either case, only to adjustments for (a) volume, market,

and production differentials customarily applied l3y the handlers subject to such order, (b) the grade or quality of the milk delivered,

(c) the locations at which delivery of such milk is made, and (d)

a further adjustment, equitably to apportion the total value of the

milk purchased by any handler, or by all handlers, among producers

and associations of producers, on the basis of their marketings of

milk during a representative period of time.

(C) In order to accomplish the purposes set forth in paragraphs

(A) and (B) of this subsection (5), providing a method for making

adjustments in payments, as among handlers (including producers

who are also handlers), to the end that the total sums paid by each

handler shall equal the value of the milk purchased by him at the

prices fixed in accordance with paragraph (A) hereof.

(D) Providing that, in the case of all milk purchased by handlers

from any producer who did not regularly sell milk during a period

of 30 days next preceding the effective date of such order for consumption in the area covered thereby, payments to such producer, for

the period beginning with the first regular delivery by such porducer and continuing until the end of two full calendar months following the first day of the next succeeding calendar month, shall be

made at the price for the lowest use classification specified in such

order, subject to the adjustments specified in paragraph (B) of this

subsection (5).
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 221

(E) Providing (i) except as to producers for whom such services

are being rendered by a cooperative marketing association, qualified

as provided in paragraph (F) of this subsection (5), for market information to producers and for the verification of weights, sampling,

and testing of milk purchased from producers, and for making appropriate deductions therefor from payments to producers, and (ii) tor

assurance of, and security for, the payment by handlers tor milk

purchased. . . _ in

(F) Nothing contained in this subsection (5) is intended or shall

be construed to prevent a cooperative marketing association qualiñed

under the provisions of the Act of Congress of February 18, 1922, as

amended, known as the "Capper-Volstead Act," engaged m making

collective sales or marketing of milk or its products for the producers

thereof, from blending the net proceeds of all its sales in all markets

in all use classifications, and making distribution thereof to its producers in accordance with the contract between the association and

its producers : Provided, That it shall not sell milk or its products to

any handler for use or consumption in any market at prices less than

the prices fixed pursuant to paragraph (A) of this subsection (5) for

such milk. -n 1 •

(G) No marketing agreement or order applicable to milk and its

products in any marketing area shall prohibit or in any manner limit,

in the case of the products of milk, the marketing in that area of any

milk or productthereof produced in any production area in the United

States.

TERMS OTHER CX)MMODITIES

(6) In the case of the agricultural commodities and the products thereof, other than milk and its products, specified in subsection

(2) orders issued pursuant to this section shall contain one or more of

the following terms and conditions, and (except as provided in subsection (7)), no others:^ ...

(A) Limiting, or providing methods for the limitation of, the

total quantity of any such commodity or product, or of any grade,

size, or quality thereof, produced during any specified period or

periods, which may be marketed in or transported to any or all markets in the current of interstate or foreign commerce or so as directly

to burden, obstruct, or affect interstate or foreign commerce in such

commodity or product thereof, during any specified period or periods

by all handlers thereof.

(B) Allotting, or providing methods for allotting, the amount

of such commodity or product, or any grade, size, or quality thereof,

which each handler may purchase from or handle on behalf of any

and all producers thereof, during any specified period or periods,

under a uniform rule based upon the amounts sold by such producers

in such prior period as the Secretary determines to be representative,

or upon the current quantities available for sale by such producers, or

both, to the end that the total quantity thereof to be purchased, or

handled during any specified period or periods shall be apportioned

equitably among producers.

« The provisions of this paragraph were substituted for the previous provisions by sec.

401 of the Agricultural Act of 1954.
222 AGKICULTURAL MARKETING AGREEMENT ACT OF 193 7

(C) Allotting, or providing methods for allotting, the amount of

any such commodity or product, or any grade, size, or quality thereof,

which each handler may market in or transport to any or all markets

in the current of interstate or foreign commerce or so as directly to

burden, obstruct, or affect interstate or foreign commerce in such

commodity or product thereof, under a uniform rule based upon the

amounts which each such handler has available for current shipment,

or upon the amounts shipped by each such handler in such prior period as the Secretary determines to be representative, or both, to the

end that the total quantity of such commodity or product, or any

grade, size, or quality thereof, to be marketed in or transported to any

or all markets in the current of interstate or foreign commerce or so

as directly to burden, obstruct, or affect interstate or foreign commerce

in such commodity or product thereof, during any specified period or

periods shall be equitably apportioned among all of the handlers

thereof.

(D) Determining, or providing methods for determining, the existence and extent of the surplus of any such commodity or product,

or of any grade, size, or quality thereof, and providing for the control

and disposition of such surplus, and for equalizing the burden of such

surplus elimination or control among the producers and handlers

thereof.

(E) Establishing or providing for the establishment of reserve

pools of any such commodity or product, or of any grade, size, or

quality thereof, and providing for the equitable distribution of the

net return derived from the sale thereof among the persons beneficially interested therein.

(F) Eequiring or providing for the requirement of inspection of

any such commodity or product produced during specified periods

and marketed by handlers.

(G) In the case of hops and their products, in addition to, or in

lieu of, the foregoing terms and conditions, orders may contain one or

more of the following :

(i) Limiting, or providing methods for the limitation of, the total

quantity thereof, or of any grade, type, or variety thereof, produced

during any specified period or periods, which all handlers may handle

in the current of or so as directly to burden, obstruct, or affect interstate or foreign commerce in hops or any product thereof.

(ii) Apportioning, or providing methods for apportioning, the

total quantity of hops of the production of the then current calendar year permited to be handled equitably among all producers in

the production area to which the order applies upon the basis of one

or inore or a combination of the following : The total quantity of hops

available or estimated will become available for market by each

producer from his production during such period; the normal production of the acreage of hops operated by each producer during such

period upon the basis of the number of acres of hops in production,

and the average yield of that acreage during such period as the Secretary determines to be representative, with adjustments determined

by the Secretary to be proper for age of plantings or abnormal conditions affecting yield ; such normal production or historical record of

any acreage for which data as to yield of hops are not available or

which had no yield during such period shall be determined by the
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 223

Secretary on the basis of the yields of other acreage of hops of similar

characteristics as to productivity, subject to adjustment as just provided for.

(iii) Allotting, or providing methods for allotting, the quantity of

hops which any handler may handle so that the allotment fixed for

that handler shall be limited to the quantity of hops apportioned

under preceding section (ii) to each respective producer of hops; such

allotment shall constitute an allotment fixed for that handler within

the meaning of subsection (5) of section 8a of this title (U. S. C, 1940

edition, title 7, sec. 608a).

(H) providing a method for fixing the size, capacity, weight,

dimensions, or pack of the container, or containers, which may be

used in the packaging, transportation, sale, shipment, or handling

of any fresh or dried fruits, vegetables, or tree nuts : Provided^ however^ That no action taken hereunder shall conflict with the Standard

Containers Act of 1916 (15 XJ. S. 0. 251-256) and the Standard Containers Act of 1928 (15 U. S. C. 257-257Í) ; '

(I) establishing or providing for the establishment of marketing

research and development projects designed to assist, improve, or

promote the marketing, distribution, and consumption of any such

commodity or product, the expense of such projects to be paid from

funds collected pursuant to the marketing order.^

TERMS COMMON TO ALL ORDERS

(7) In the case of the agricultural commodities and the products

thereof specified in subsection (2) orders shall contain one or more

of the following terms and conditions :

(A) Prohibiting unfair methods of competition and unfair trade

practices in the handling thereof.

(B) Providing that (except for milk and cream to be sold for

consumption in fluid form) such commodity or product thereof,,

or any grade, size, or quality thereof shall be sold by the handlers

thereof only at prices filed by such handlers in the manner provided

in such order.

(C) Providing for the selection by the Secretary of Agriculture,

or a method for the selection, of an agency or agencies and defining

their powers and duties, which shall include only the powers:

(i) To administer such order in accordance with its terms and

provisions;

(ii) To make rules and regulations to effectuate the terms and

provisions of such order;

(iii) To receive, investigate, and report to the Secretary of Agriculture complaints of violations of ouch order; and

(iv) To recommend to the Secretary of Agriculture amendments

to such order.

No person acting as a member of an agency established pursuant to

this paragraph (C) shall be deemed to be acting in an official capacity,

within the meaning of section 10 (g) of this title, unless such person

receives compensation for his personal services from funds of the

United States. There shall be included in the membership of any

^Pars. (H) and (I) were added by sec. 401 of the AgricuUural Act of 1954.
224 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

agency selected to administer a marketing order applicable to grapefruit for canning or freezing one or more representatives of processors

of the commodity specified in such order.^

(D) Incidental to, and not inconsistent with, the terms and conditions specified in subsections (5), (6) and (7) and necessary to

effectuate the other provisions of such order.

[ORDERS WITH MARKETING AGREEMENT

(8) Except as provided in subsection (9) of this section, no order

issued pursuant to this section shall become effective until the handlers (excluding cooperative associations of producers who are not

engaged in processing, distributing, or shipping the commodity or

product thereof covered by such order) of not less than 50 per centum

of the volume of the commodity or product thereof covered by such

order which is produced or marketed within the production or marketing area defined in such order have signed a marketing agreement, entered into pursuant to section 8b of this title, which regulates the

handling of such comomdity or product in the same manner as such

order, except that as to citrus fruits produced in any area producing

what is known as California citrus fruits no order issued pursuant to

this subsection (8) shall become effective until the handlers of not less

than 80 per centum of the volume of such commodity or product

thereof covered by such order have signed such a marketing agreement : Provided^ That no order issued pursuant to this subsection shall

be effective unless the Secretary of Agriculture determines that the

issuance of such order is approved or favored :

(A) By at least two-thirds of the producers who (except that as

to citrus fruits produced in any area producing what is known as

California citrus fruits said order must be approved or favored by

three-fourths of the producers), during a representative period determined by the Secretary, have been engaged, within the production

area specified in such marketing agreement or order, in the production for market, of the commodity specified therein, or who, during

such representative period, have been engaged in the production of

such commodity for sale in the marketing area specified in such marketing agreement, or order, or

(B) By producers who, during such representative period, have

produced for market at least two-thirds of the volume of such commodity produced for market within the production area specified in

such marketing agreement or order, or who, during such representative period, have produced at least two-thirds of the volume of such

commodity sold within the marketing area specified in such marketing

agreement or order.

ORDERS WITH OR WITHOUT MARKETING AGREEMENT

(9) Any order issued pursuant to this section shall become effective in the event that, notwithstanding the refusal or failure of handlers (excluding cooperative associations of producers who are not

engaged in processing, distributing, or shipping the commodity or

« This sentence was added by sec. 401 of the Agricultural Act of 1954.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 225

product thereof covered by sucli order) of more than 50 per centum

of the volume of the comniodity or product thereof (except that as to

citrus fruits prduced in any area producing what is known as California citrus fruits said per centum shall be 80 per centum) covered by

such order which is produced or marketed within the production or

marketing area defined in such order to sign a marketing agreement

relating to such commodity or product thereof, on which a hearing has

been held, the Secretary of Agriculture, with the approval of the

President,^ determines:

(A) That the refusal or failure to sign a marketing agreement

(upon which a hearing has been held) by the handlers (excluding

cooperative associations of producers who are not engaged in processing, distributing, or shipping the commodity or product thereof

covered by such order) of more than 50 per centum of the volume

of the commodity or product thereof (except that as to citrus fruits

produced in any area producing what is known as California citrus

fruits said per centum shall be 80 per centum) specified therein which

is produced or marketed within the production or marketing area

specified therein tends to prevent the effectuation of the declared policy

of this title with respect to such commodity or product, and

(B) That the issuance of such order is the only practical means

of advancing the interests of the producers of such commodity pursuant to the declared policy, and is approved or favored :

(i) By at least two-thirds of the producers (except that as to citrus

fruits produced in any area producing what is knowm as California

citrus fruits said order must be approved or favored by three-fourths

of the producers) who, during a representative period determined

by the Secretary, have been engaged, within the production area

specified in such marketing agreement or order, in the production

for market of the commodity specified therein, or who, during such

representative period, have been engaged in the production of such

commodity for sale in the marketing area specified in such marketing

agreement, or order, or

(ii) By producers who, during such representative period, have

produced for market at least two-thirds of the volume of such commodity produced for market within the production area specified in

such marketing agreement or order, or who, during such representative period, have produced at least two-thirds of the volume of such

commodity sold within the marketing area specified in such marketing

agreement order.

MANNER OF REGULATION AND APPLICABILITY

(10) No order shall be issued under this section unless it regulates

the handling of the commodity or product covered thereby in the

same manner as, and is made applicable only to persons in the respective classes of industrial or commercial activity specified in, a marketing agreement upon which a hearing has been held. No order shall

be issued under this title prohibiting, regulating, or restricting the

advertising of any commodity or product covered thereby, nor shall

any marketing agreement contain any provision prohibiting, regulatÖ 1947 Reorganization Plan No. 1 abolished this function of the President.

412526—57 16
226 AGRICULTURAL MARKETING AGREEMENT ACT OF 193 7

ing, or restricting the advertising of any commodity or product

covered by such marketing agreement.

REGIONAL APPLICATION

(11) (A) No order shall be issued under this section which is applicable to all production areas or marketing areas, or both, of any

commodity or product thereof unless the Secretary finds that the

issuance of several orders applicable to the respective regional production areas or regional marketing areas, or both, as the case may

be, of the commodity or product would not effectively carry out the

declared policy of this title.

(B) Except in the case of milk and its products, orders issued

under this section shall be limited in their application to the smallest

regional production areas or regional marketing areas, or both, as

the case may be, which the Secretary finds practicable, consistently

with carrying out such declared policy.

(C) All orders issued under this section which are applicable to

the same commodity or product thereof shall, so far as practicable,

prescribe such different terms, applicable to different production

areas and marketing areas, as the Secretary finds necessary to give

due recognition to the differences in production and marketing of

such commodity or product in such areas.

COOPERATIVE ASSOCIATION REPRESENTATION

(12) Whenever, pursuant to the provisions of this section, the

Secretary is required to determine the approval or disapproval of

producers with respect to the issuance of any order, or any term or

condition thereof, or the termination thereof, the Secretary skall

consider the approval or disapproval by any cooperative association

of producers, bona fide engaged in marketing the commodity or

product thereof covered by such order, or in rendering services for or

advancing the interests of the producers of such commodity, as the

approval or disapproval of the producers who are members of, stockholders in, or under contract with, such cooperative association of

producers.

RETAILER AND PRODUCER EXEMPTION

(13) (A) No order issued under subsection (9) of this section

shall be applicable to any x)erson who sells agricultural commodities

or products thereof at retail in his capacity as such retailer, except

to a retailer in his capacity as a retailer of milk and its products.

(B) No order issued under this title shall be applicable to any

producer in his capacity as a producer.

VIOLATION OF ORDER

(14) Any handler subject to an order issued under this section, or

any officer, director, agent, or employee of such handler, who violates

any provision of such order (other than a provision calling for payment of a pro rata share of expenses) shall, on conviction, be fined

not less than $50 or more than $500 for each such violation, and each

day during which such violation continues shall be deemed a sepa-
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 227

rate violation: Promded^ That if the court finds that a petition

pursuant to subsection (15) of this section was filed and prosecuted

by the defendant in good faith and not for delay, no penalty shall

be imposed under this subsection for such violations as occurred between the date upon which the defendant's petition was filed with

the Secretary, and the date upon which notice of the Secretary's

ruling thereon was given to the defendant in accordance with regulations prescribed pursuant to subsection (15).

PETITION BY HANDLER AND REVIEW

(15) (A) Any handler subject to an order may file a written petition with the Secretary of Agriculture, stating that any such order or

any provision of any such order or any obligation imposed in connection therewith is not in accordance with law and praying for a modification thereof or to be exempted therefrom. He shall thereupon be

given an opportunity for a hearing upon such petition, in accordance

with regulations made by the Secretary of Agriculture, with the

approval of the President. After such hearing, the Secretary shall

make a ruling upon the prayer of such petition which shall be final,

if in accordance with law.

(B) The District Courts of the United States ^° in any district in

which such handler is an inhabitant, or has his principal place of business, are hereby vested with jurisdiction in equity to review such

ruling, provided a bill in equity for that purpose is filed within twenty

days from the date of the entry of such ruling. Service of process in

such proceedings may be had upon the Secretary by delivering to him

a copy of the bill of complaint. If the court determines that such

ruling is not in accordance with law, it shall remand such proceedings

to the Secretary with directions either (1) to make such ruling as the

court shall determine to be in accordance with law, or (2) to take such

further proceedings as, in its opinion, the law requires. The pendency

of proceedings instituted pursuant to this subsection (15) shall not

impede, hinder, or delay the United States or the Secretary of Agriculture from obtaining relief pursuant to section 8a (6) of this title.

Any proceedings brought pursuant to section 8a (6) of this title (except where*brought by way of counterclaim in proceedings instituted

pursuantto this subsection (15) shall abate whenever a final decree has

been rendered in proceedings between the same parties, and covering

the same subject matter, instituted pursuant to this subsection (15).

TERMINATION OF ORDERS AND MARKETING AGREEMENTS

(16) (A) The Secretary of Agriculture shall, whenever he finds

that any order issued under this section, or any provision thereof,

obstructs or does not tend to effectuate the declared policy of this title,

terminate or suspend the operation of such order or such provision

thereof.

(B) The Secretary shall terminate any marketing agreement entered into under section 8b, or order issued under this section, at the

10 The reference to the district court of the United States for the District of Columbia

has been deleted as superfluous. See 28 U. S. C. 88, 132a.
228 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

end of the then current marketing period for such commodity, specified in such marketing agreement or order, whenever he finds that

such termination is favored by a majority of the producers who, during a representative period determined by the Secretary, have been

engaged in the production for market of the commodity specified in

such marketing agreement or order, within the production area specified in such marketing agreement or order, or who, during such representative period, have been engaged in the production of such

commodity for sale within the marketing area specified in such marketing agreement or order : Provided^ That such majority have, during

such representative period, produced for market more than 50 per

centum of the volume of such commodity produced for market within

the production area specified in such marketing agreement or order, or

have, during such representative period, produced more than 50 per

centum of the volume of such commodity sold in the marketing area

specified in such marketing agreement or order, but such termination

shall be effective only if announced on or before such date (prior to

the end of the then current marketing period) as may be specified in

such marketing agreement or order.

(C) The termination or suspension of any order or amendment

thereto or provision thereof, shall not be considered an order within

the meaning of this section.

PROVISIONS APPLICABLE TO AMENDMENTS

(17) The provisions of this section, section 8d,^^ applicable to

orders shall be applicable to amendments to orders : Provided^ That

notice of a hearing upon a proposed amendment to any order issued

pursuant to section 8c, given not less than three days prior to the date

fixed for such hearing, shall be deemed due notice thereof.

MILK PRICES

(18) The Secretary of Agriculture, prior to prescribing any term in

any marketing agreement or order, or amendment thereto, relating

to milk or its products, if such term is to fix minimum prices to be

paid to producers or associations of producers, or prior'to modifying the price fixed in any such term, shall ascertain the parity

prices of such commodities. The prices which it is declared to be

the policy of Congress to establish in section 2 of this title shall,

for the purposes of such agreement, order, or amendment, be

adjusted to reflect the price of feeds, the available supplies of

feeds, and other economic conditions which affect market supply

and demand for milk or its products in the marketing area to which

the contemplated marketing agreement, order, or amendment relates.

Whenever the Secretary finds, upon the basis of the evidence adduced

at the hearing required by section 8b or 8c, as the case may be, that

the parity prices of such commodities are not reasonable in view of

the price of feeds, the available supplies of feeds, and other economic

conditions which affect market supply and demand for milk and its

products in the marketing area to which the contemplated agreement,

11 The reference to the old sec. 8e (repealed) was deleted by 302 of the Agricultural Act

of 1948 (July 3, 1948, Public Law 897, 80th Cong., 62 Stat. 1247).
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 229

order, or amendment relates, he shall fix snch prices as he finds will

reflect such factors, insure a sufficient quantity of pure and wholesome

milk, and be in the public interest. Thereafter, as the Secretary finds

necessary on account of changed circumstances, he shall, after due

notice and opportunity for hearing, make adjustments in such prices.^^

PRODUCER REFERENDUM

(19) For the purpose of ascertaining whether the issuance of an

order is approved or favored by producers, as required under the

applicable provisions of this title, the Secretary may conduct a referendum among producers. The requirements of approval or favor

under any such provision shall be held to be complied with if, of

the total'number or producers, or the total volume of production,

as the case may be, represented in such referendum, the percentage

approving or favoring is equal to or in excess of the percentage required under such provision. Nothing in this subsection shall be

construed as limiting representation by cooperative associations as

provided in subsection (12). (7 U. S. C. 608c.) J

(f) Section 8d (relating to books and records) ;

BOOKS AND RECORDS

[SEC. 8d. (1) All parties to any marketing agreement, and all handlers subject to an order, shall severally, from time to time, upon the

request of the Secretary, furnish him with such information as he

finds to be necessary to enable him to ascertain and determine the

extent to which such agreement or order has been carried out or

has effectuated the declared policy of this title, and with such information as he finds to be necessary to determine whether or not there

has been any abuse of the privilege of exemptions from the antitrust laws. Such information shall be furnished in accordance with

forms of reports to be prescribed by the Secretary. For the purpose

of ascertaining the correctness of any report made to the Secretary

pursuant to this subsection, or for the purpose of obtaining the information required in any such report, where it has been requested

and has not been furnished, the Secretary is hereby authorized to

examine such books, papers, records, copies of income-tax reports,

accounts, correspondence, contracts, documents, or memoranda, as he

deems relevant and which are within the control (1) of any such

party to such marketing agreement, or any such handler, from whom

such report was requested or (2) of any person having, either directly or indirectly, actual or legal control of or over such party or

such handler or (3) of any subsidiary of any such party, handler,

or person.

(2) Notwithstanding the provisions of section 7, all information

furnished to or acquired by the Secretary of Agriculture pursuant

to this section shall be kept confidential by all officers and employees

of the Department of Agriculture and only such information so

furnished or acquired as the Secretary deems relevant shall be disclosed by them, and then only in a suit or administrative hearing

12 The provisions of this section were substituted for the previous provisions by sec. 302

of the Agricultural Act of 1948 (July 3, 1948, Public Law 897, 80th Con^., S2 Stat. 1247).
230 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

brought at the direction, or upon the request, of the Secretary of

Agriculture, or to which he or any ofiicer of the United States is a

party, and involving the marketing agreement or order with reference to which the information so to be disclosed was furnished or

acquired. Nothing in this section shall be deemed to prohibit (A)

the issuance of general statements based upon the reports of a number of parties to a marketing agreement or of handlers subject to an

order, which statements do not identify the information furnished

by any person, or (B) the publication by direction of the Secretary

of the name of any person violating any marketing agreement or

any order, together with a statement of the particular provisions of

the marketing agreement or order violated by such person. Any

such officer or employee violating the provisions of this section shall

upon conviction be subject to a fine or not more than $1,000 or to

imprisonment for not more than one year, or to both, and shall be

removed from office. (7 U. S. C. 608d)J

(g) Section 8e;^^

RESTRICTIONS ON IMPORTED COMMODITIES

£SEC. 8e.^* Notwithstanding any other provision of law, whenever

a marketing order issued hj the Secretary of Agriculture pursuant to

section 8c of this Act contains any terms or conditions regulating the

grade, size, quality, or maturity of tomatoes, avocados, mangoes, limes,

grapefruit, green peppers, Irish potatoes, cucumbers, or eggplants produced in the United States the importation into the United States of

any such commodity during the period of time such order is in effect

shall be prohibited unless it complies with the grade, size, quality, and

maturity provisions of such order or comparable restrictions promulgated hereunder : Provided^ That this prohibition shall not apply to

such commodities when shipped into continental United States from

the Commonwealth of Puerto Eico or any Territory or possession of

the United States where this Act has force and effect : Provided further^ That whenever two or more such marketing orders regulating

the same agricultural commodity produced in different areas of the

United States are concurrently in effect, the importation into the

United States of any such commodity shall be prohibited unless it

complies with the grade, size, quality, and maturity provisions of the

order which, as determined by the Secretary of Agriculture, regulaies

the commodity produced in the area with which the imported comnxodity is in most direct competition. Such prohibition shall not become effective until after the giving of such notice as the Secretary of

Agriculture determines reasonable, which shall not be less than three

days. In determining the amount of notice that is reasonable in the

case of tomatoes the Secretary of Agriculture shall give due consideration to the time required for their transportation and entry into the

united States after picking. Whenever the Secretary of Agriculture

^3 The original provisions of this section were repealed by sec. 302 of the Agricultural Act

"Added by sec. 401 (e) of the Agricultural Act of 1954, approved August 28, 1954,

Public Law 690, 83d Cong., 68 Stat 897, 907. The word "mangoes" was inserted by sec. 3

of the act of August 31, 1954, Public Law 754, 83d Cong., 68 Stat. 1047. This Department

issued regulations under sec. 8e on November 24, 1954 (19 F. R. 7707).
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 231

finds that the application of the restrictions under a marketing order

to an imported commodity is not practicable because of variations in

characteristics between the domestic and imported commodity he shall

establish with respectto the imported commodity such grade, size, quality, and maturity restrictions by varieties, types, or other classifications as he finds will be equivalent or comparable to those imposed upon

the domestic commodity under such order. The Secretary of Agriculture may promulgate such rules and regulations as he deems necessary, to carry out the provisions of this section. Any person who

violates any provision of this section or of any rule, regulation, or

order promulgated hereunder shall be subject to a forfeiture in the

amount prescribed^in section 8a (5) or, upon conviction, a penalty in

the amount prescribed in section 8c (14) of the Act, or to both such

forfeiture and penalty. (8 U. S. C. 608e-l) 3

(h) Section 10 (a), (b) (2), (c), (f), (g), (h), and (i) (miscellaneous provisions) ;

MISCELLANEOUS

[SEC. 10. (a) The Secretary of Agriculture may appoint such officers

and employees, subject to the provisions of the Classification Act

of 1949 ^^ and Acts amendatory thereof, and such experts as are necessary to execute the functions vested in him by this title; and the

Secretary may make such appointments without regard to the civil

service laws or regulations: Provided^ That no salary in excess of

$10,000 per annum shall be paid to any officer, employee, or expert of

the Agricultural Adjustment Administration, which the Secretary

shall establish in the Department of Agriculture for the administration

of the functions vested in him by this title : And provided further^

That the State Administrator appointed to administer this Act in

each State shall be appointed by the President, by and with the

advice and consent of the Senate. Title II of the Act entitled "An

Actto maintain the credit of the United States Government", approved

March 20,1933, to the extent that it provides for the impoundment of

appropriations on account of reductions in compensation, shall not

operate to require such impoundment under appropriations contained

in this Act.

(b) (1) The Secretary of Agriculture is authorized to establish,

for the more effective administration of the functions vested in him by

this title. State and local committees, or associations of producers,

and to permit cooperative associations of producers, when in his judgment they are qualified to do so, to act as agents of their members and

patrons in connection with the distribution of payments authorized to

be made under section 8. The Secretary, in the administration of this

title shall accord such recognition and encouragement to producerowned 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.

(2) (i) Each order relating to milk and its products issued by the

Secretary under this title shall provide that each handler subject

^ '•1949" substituted for *'1923" by the act of October 28, 1949, 63 Stat. 972.
232 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

thereto shall pay to any authority or agency established under such

order such handler's pro rata share (as approved by the Secretary)

of such expenses as the Secretary may find will necessarily be incurred

by such authority or agency, during any period specified by him, for

the maintenance and functioning of such authority or agency, other

than expenses incurred in receiving, handling, holding, or disposing o±

any quantity of milk or products thereof received, handled, held, or

disposed of by such authority or agency for the benefit or account

of persons other than handlers subject to such order. The pro rata

share of the expenses payable by a cooperative association ot producers shall be computed on the basis of the quantity of milk or product

thereof covered by such order which is distributed, processed, or

shipped by such cooperative association of producers.

(ii) Each order relating to any other commodity or product

issued by the Secretary under this title shall provide that each

handler subject thereto shall pay to any authority or agency established under such order such handler's pro rata share (as approved

by the Secretary) of such expenses as the Secretary may find are

reasonable and are likely to be incurred by such authority or agency,

during any period specified by him, for such purposes as the Secretary may, pursuant to such order, determine to be appropriate, and

for the maintenance and functioning of such authority or agency,

other than expenses incurred in receiving, handling, holding, or

disposing of any quantity of a commodity received, handled, held, or

disposed of by such authority or agency for the benefit or account of

persons other than handlers subject to such order. The pro rata share

of the expenses payable by a cooperative association of producers

shall be computed on the basis of the quantity of the agricultural

commodity or product thereof covered by such order which is distributed, processed, or shipped by such cooperative association ol

producers. The payment of assessments for the maintenance and

functioning of such authoritv or agency, as provided for herein, may

be required under a marketing agreement or marketing order throughout the period the marketing agreement or order is m effect and irrespective of whether particular provisions thereof are suspended or

become inoperative. ^ ^. ^ ^ _ ^

(iii) Any authority or agencv established under an order may

maintain in its own name, or in the name of its members, a suit

as-ahist any handler subject to an order for the collection ot such

handler's pro rata share of expenses. The several district courts

of the United States are hereby vested with jurisdiction to entertain such suits regardless of the amount in controversy.

(c) The Secretary of Agriculture is authorized, with the approval

of the President, to make such regulations with the force and effect

of law as may be necessary to carry out the powers vested m him by

this title. Anv violation of any regulation shall be subject to such

penaltv, not inWess of $100, as may be provided therein.

(f) ^The provisions of this title shall be applicable to the United

States and its possessions, except the Philippine Islands,^ the Virgin

Islands, American Samoa, the Canal Zone, and the island ot (ruam ;

except that, in the case of sugar beets and surgarcane, the President,

if he finds it necessary in order to effectuate the declared policy ot

this Act, is authorized by proclamation to make the provisions ot this
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 233

title applicable to the Philippine Islands, the Virgin Islands, American Samoa, the Canal Zone, and/or the island of Guam.

(g) No person shall, while acting in any official capacity m the

administration of this title, speculate, directly or indirectly, m any

agricultural commodity or product thereof, to which this title applies, 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. Any person

violating this subsection shall upon conviction thereof be fined not

more than $10,000 or imprisoned not m^ore than two years, or both.

(h) For the efficient administration of the provisions of part 2 of

this title, the provisions, including penalties, of sections 8, 9, and 10

of the Federal Trade Commission Act, approved September 26,1914,

are made applicable to the jurisdiction, powers, and duties of the

Secretary in administering the provisions of this title and to any

person subject to the provisions of this title, whether or not a corporation. Hearings authorized or required under this title shall be conducted by the Secretary of Agriculture or such officer or employee of

the Department as he may designate for the purpose. The Secretary

may report any violation of any agreement entered into under part 2

of this title to the Attorney General of the United States, who shall

cause appropriate proceedings to enforce such agreement to be commenced and prosecuted in the proper courts of the United States without delay.

(i) The Secretary of Agriculture upon the request of the duly constituted authorities of any State is directed, in order to effectuate

the declared policy of this title and in order to obtain uniformity in

the formulation, administration, and enforcement of Federal and

State programs relating to the regulation of the handling of agricultural commodities or products thereof, to confer with and hold

joint hearings with the duly constituted authorities of any State,

and is authorized to cooperate with such authorities; to accept and

utilize, with the consent of the State, such State and local officers and

employees as may be necessary ; to avail himself of the records and

facilities of such authorities; to issue orders (subject to the provisions

of section 8c) complementary to orders or other regulations issued by

such authorities; and to make available to such State authorities the

records and facilities of the Department of Agriculture: Provided^

That information furnished to the Secretary of Agriculture pursuant to section 8d (1) hereof shall be made available only to the extent

that such information is relevant to transactions within the regulatory

jurisdiction of such authorities, and then only upon a written agreement by such authorities that the information so furnished shall be

kept confidential by them in a manner similar to that required of

Federal officers and' employees under the provisions of section 8d (2)

hereof.

(j) The term "interstate or foreign commerce" means commerce

between any State, Territory, or possession, or the District of Columbia, and any place outside thereof; or between points within the same

State, Territory, or possession, or the District of Columbia, but

through any place outside thereof; or within any Territory or possession, or the District of Columbia. For the purpose of this Act (but

in nowise limiting the foregoing definition) a marketing transaction
234 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

in respect to an agricultural commodity or the product thereof shall

be considered in interstate or foreign commerce if such commodity or

product is part of that current of interstate or foreign commerce usual

in the handling of the commodity or product whereby they, or either

of them, are sent from one State to end their transit, after purchase,

in another, including all cases where purchase or sale is either for

shipment to another State or for the processing within the State and

the shipment outside the State of the products so processed. Agricultural commodities or products thereof normally^ in such current of

interstate or foreign commerce shall not be considered out of such

current through resort being had to any means or device intended to

remove transactions in respect thereto from the provisions of this Act.

As used herein the word "State" includes Territory, the District of

Columbia, possession of the united States, and foreign nations.^^

(7U.S.C.610)1

(i) Section 12 (a) and (c) (relating to appropriation and expense) ;

APPROPRIATION

[SEC. 12. (a) There is hereby appropriated, out of any money in

the Treasury not otherwise appropriated, the sum of $100,000,000 to

be available to the Secretary of Agriculture for administrative expenses under this title and for payments authorized to be made under

section 8. Such sum shall remain available until expended.

To enable the Secretary of Agriculture to finance, under such

terms and conditions as he may prescribe, surplus reductions with

respect to the dairy- and beef-cattle industries, and to carr;^ out any

of the purposes described in subsections (a) and (b) of this section

(12) and to support and balance the markets for the dairy and beef

cattle industries, there is authorized to be appropriated, out of any

money in the Treasury not otherwise appropriated, the sum of $200,-

000,000 ; Provided^^ That not more than 60 per centum of such amount

shall be used for either of such industries.

(c) The administrative expenses provided for under this section

shall include, among others, expenditures for personal services and

rent in the District of Columbia and elsewhere, for law books and

books of reference, for contract stenographic reporting services, and

for printing and paper in addition to allotments under the existing

law. The Secretary of Agriculture shall transfer to the Treasury

Department, and is authorized to transfer to other agencies, out of

funds available for administrative expenses under this title, such

sums as are required to pay administrative expenses incurred and

refunds made by such department or agencies in the administration

of this title. (7U. S.C.612)]

(j) Section 14 (relating to separability) ;

SEPAKABILIT:^ OF PROVISIONS

[SEC. 14. If any provision of this title is declared unconstitutional,

or the applicability thereof to any person, circumstance, or commodity

is held invalid the validity of the remainder of this title and the apw Par. (j) added by sec. 2 (i) of the 1937 act.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 235

plicability thereof to other persons, circumstances, or commodities

shall not be affected thereby. (7 U. S. C. 714)]

(k) Section 22 (relating to imports) ;

[IMPORTS ^^

[SEC. 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 numbered 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 any 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

withdrawn 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

subsection (a) of this section, or reduce substantially the amount of

any product j)rocessed 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 proc1'^ See also sec. 202 (a) and 204 of the Agricultural Act of 1956, Sec. 22 was added by

Public Law 320, 74th Cong., approved August 24, 1935 (49 Stat. 773). As originally

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 Adiustment Act of 1933. Sec. 22 has been amended several times and was revised in its

entirety by sec. 3 of the Agricultural Act of 1948 (62 Stat. 1247) and again by sec, S of

the act of June 28, 1950 (64 Stat. 261). 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 sec. 22.

In addition, the Secretary of Agriculture is charged with the responsibility of determining

the need for emergency action under sec. 22 with respect to perishable agricultural commodities. Presidential Executive Order No. 7233, dated November 23, 1935, contains the

regulations governing investigations under this section. For statement of the policies and

procedures of the Department of Agriculture in discharging its responsibilities under sec.

22. see 17 F. E, 8287 (September 16, 1,952)
236 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

lamation 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 w^as 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.

In any case where the Secretary of Agriculture determines and

reports to the President with regard to any article or articles that a

condition exists requiring emergency treatment, the President may

take immediate action under this section without awaiting the recommendations of the Tariff Commission, such action to continue in

effect pending the report and recommendations of the Tariff Commission and action thereon by the President.^^ (7 TJ. 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 numbered 320, Seventy-fourth Congress, approved August 24,1935, as amended, as duties

imposed by the Tariff Act of 1930, but such fees shall not 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 be final. (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.^^

(7Ü. S.C.624 (f))]

[TRADE AGREEMENTS EXTENSION ACT OF 1951,^ AS AMENDED

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 Eepresentatives, upon its own motion, or upon application

1» Paragraph added by sec. 104 of the Trade Agreements Extension Act of 1953, Public

Law 215, 83d Cong., 67 Stat. 472.

18 The provisions of this subsec. (f) were substituted for the original provisions by sec.

8 (b) of the Trade Agreements Extension Act of 1951, approved June 16, 1951, Public

Law 50, 82d Cong., 65 Stat. 72, 75.

«> June 16, 1951, Public Law 50, 82d Cong., 65 Stat. 72, 74, 75.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 237

of any interested party, the United States Tariff Commission shall

promptly make an investigation and make a report thereon not later

than nine months ^i 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 of 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 Kepresentatives,

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 cart, 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

products, it shall recommend to the Presidentthe withdrawal or modification of the concession, its suspension in whole or in part, or the

establishmeent of import quotas, to the extent and for the time necessary to prevent or remedy such injury. Within sixty 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 ox

the Senate and the Committee on Ways and Means of the House of

Eepresentatives 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 market 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.

If the President does not take such action within sixty 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

21 "Nine months" substituted for "one year" by the act of August 7, 1953, Public Law

215, 83d Cong., 67 Stat. 472.
238 AGRICULTURAL MARKETING AGREEMENT ACT OF 1937

should be withdrawn or modified or a quota established, it shall make

and publish a report stating its findings and conclusions. (19 U. S. C.

1364)

SEO. 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 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 in any event not more than 25 calendar

days after the submission of the case to the Tariff Commission. (19

U.S.C. 1365)3

AMENDMENTS TO AGRICULTURAL ADJUSTMENT ACT

SEC. 2. The following provisions, reenacted in section 1 of this act,

are amended as follows r^^

ARBITRATION OF DISPUTES CONCERNING MILK

SEC. 3. (a) The Secretary of Agriculture, or such officer or employee of the Department of Agriculture as may be designated

by him, upon written application of any cooperative association,

incorporated or otherwise, which is in good faith owned or controlled

by producers or organizations thereof, of milk or its products, and

which is bona fide engaged in collective processing or preparing

for market or handling or marketing (in the current of interstate

or foreign commerce, as defined by paragraph (i) of section 2 of

this act), milk or its products, may mediate and, with the consent

of all parties, shall arbitrate if the Secretary has reason to believe

that the declared policy of the Agricultural Adjustment Act, as

amended, would be effectuated thereby, bona fide disputes, between

such associations and the purchasers or handlers or processors or

distributors of milk or.its products, as to terms and conditions of

the sale of milk or its products. The power to arbitrate under this

section shall apply only to such subjects of the term or condition in

dispute as could be regulated under the provisions of the Agricultural

Adjustment Act, as amended, relating to orders for milk and its

products.

(b) Meetings held pursuant to this section shall be conducted subject to such rules and regulations as the Secretary may prescribe.

(c) No award or agreement resulting from any such arbitration or

mediation shall be effective unless and until approved by the Secretary of Agriculture, or such officer or employee of the Department of

22Subsecs. (a) to (j) inclusive, of sec. 2 of the Agricultural Marketing Agreement Act

of Í937 are incorporated in the preceding text and in the footnotes.
AGRICULTURAL MARKETING AGREEMENT ACT OF 1937 239

Agriculture as may h& designated by him, and shall not be approved

if it permits any unlawful trade practice or any unfair method of

competition.

(d) No meeting so held and no award or agreement so approved

shall be deemed to be in violation of any of the antitrust laws of the

United States. (7 U. S. C. 671)

AGREEMENTS, ETC., UNAFFECTED

SEC. 4. (a) Nothing in this act shall be construed as invalidating

any marketing agreement, license, or order, or any regulation relating

to, or any provision of, or any act of the Secretary of Agriculture in

connection with, any such agreement, license, or order which has been

executed, issued, approved, or done under the Agricultural Adjustment Act, or any amendment thereof, but such marketing agreements,

licenses, orders, regulations, provisions, and acts are hereby expressly

ratified, legalized, and confirmed.

(b) Any program in effect under the Agricultural Adjustment Act,

as reenacted and amended by this Act, on the effective date of section

302 of the Agricultural Act of 1948 shall continue in effect without the

necessity for any amendatory action relative to such program, but

any such program shall be continued in operation by the Secretary

of Agriculture only to establish and maintain such orderly marketing

conditions as will tend to effectuate the declared purpose set out in

section 2 or 8c (18) of the Agricultural Adjustment Act, as reenacted

and amended by this Act.^^ (7 U. S. C. 672)

TAXES UNDER AGRICULTURAL ADJUSTMENT ACT ; PROVISIONS UNAFFECTED

SEC. 5. No processing taxes or compensating taxes shall be levied

or collected under the Agricultural Adjustment Act, as amended.

Except as provided in the preceding sentence, nothing in this act shall

be construed as affecting provisions of the Agricultural Adjustment

Act, as amended, other than those enumerated in section 1. The provisions so enumerated shall apply in accordance with their terms (as

amended by this act) to the provisions of the Agricultural Adjustment

Act, this act, and other provisions of law to which they have been

heretofore made applicable. (7 U. S. C. 673)

SHORT TITLE

SEC. 6. This act may be cited as the "Agricultural Marketing Agreement Act of 1937." (7 U. S. C. 674 note)

28 Sec. 302 of the Agricultural Act of 1948 (62 Stat. 1247) inserted the subsection designation (a) and added subsec. (b).
NATIONAL SCHOOL LUNCH ACT^

AN ACT

To provide assistance to the States in the establishment, maintenance, operation,

and expansion of school-lunch programs, and for other purposes.

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

united States of Américain Congress assembled^ That this Act may

be cited as the "National School Lunch Act." (42 U. S. C. 1751 note)

DECLARATION OF POLICY

SEC. 2. It is hereby declared to be the policy of Congress, as a

measure of national security, to safeguard the health and well-being

of the Nation's children and to encourage the domestic consumption

of nutritious agricultural commodities and other food, by assisting

the States, through grants-in-aid and other means, in providing an

adequate supply of foods and other facilities for the establishment,

maintenance, operation, and expansion of nonprofit school-lunch

programs. (42U. S. C. 1751)

APPROPRIATIONS AUTHORIZED

SEC. 8. For each fiscal year, beginning with the fiscal year ending

June 30, 1947, there is hereby authorized to be appropriated, out of

money in the Treasury not otherwise appropriated, such sums as may

be necessary to enable the Secretary of Agriculture (hereinafter referred to as "the Secretary") to carry out the provisions of this Act.

(42U.S.C.1752)

APPORTIONMENTS TO STATES

SEC. 4. The sums appropriated for any fiscal year pursuant to the

authorization contained in section 3 of this Act, excluding the sum

specified in section 5, shall be available to the Secretary for supplying, during such fiscal year, agricultural commodities and other foods

for the school-lunch program in accordance with the provisions of

this Act. The Secretary shall apportion among the States during

each fiscal year not less than 75 per centum of the aforesaid funds

made available for such year for supplying agricultural commodities

and other foods under the provisions of this Act. The total of such

apportionments of funds for use in Puerto Rico, Guam, and the

Virgin Islands shall not exceed 3 per centum of the funds appropriated for agricultural commodities and other foods for the schoollunch program; except that in the case of the first apportionments

1 June 4, 1946, Public Law 396, 79tli Cong., 60 Stat. 230, 231, 233. See also sec. 201 (c)

(relating to use of Commodity Credit Corporatio^T funds to increase milk consumption in

schools) (p. 155) and sec. 404 (relating to utilizing Commodity Credit Corporation in

carrying out school lunch programs) (p. 150) of the Agricultural Act of 1949. Commodities set aside under title I of the Agricultural Act of 1954 (p. 168) may be donated to

school-lunch programs pursuant to sec. 103 of that act.

240
NATIONAL SCHOOL LUNCH ACT 241

of funds from any annual or supplemental appropriation (and only

in such case), the apportionment for Puerto Rico, the apportionment

for Guam, and the apportionment for the Virgin Islands, shall be

notless than that amount which will result in an allotment per child of

school age equal to the allotment per child of school age in the State

(other than Puerto Eico, Guam, and the Virgin Islands) having the

lowest per capita income among the States participating in such first

apportionments.^ Apportionment among the States shall be made on

the basis of two factors: (1) The number of school children in the

State and (2) the need for assistance in the State as indicated by the

relation of the per capita income in the United States to the per

capita income in the State. The amount of the initial apportionment

to any State shall be determined by the following method: First,

determine an index for the State by multiplying factors (1) and (2) ;

second, divide this index by the sum of the indices for all the States;

and, finally, apply the figure thus obtained to the total funds to be

apportioned. For the purpose of this section, the number of school

children in the State shall be the number of children therein between

the ages of five and seventeen, inclusive; such figures and per capita

income figures shall be the latest figures certified by the Department

of Commerce. For the purposes of this Act, "school" means any public or nonprofit private school of high-school grade or under and, with

respect to Puerto Rico, shall also include nonprofit child-care centers

certified as such by the Governor of Puerto Rico. If any State cannot

utilize all funds so apportioned to it, or if additional funds are available under this Act for apportionment among the States, the Secretary shall make further apportionments to the remaining States in

the same manner. (42 U. S. C. 1753)

NONFOOD ASSISTANCE

SEC 5. Of the sums appropriated for any fiscal year pursuant to

the authorization contained in section 3 of this Act, $10,000,000 shall

be available to the Secretary for the purpose of providing, during

such fiscal year, nonfood assistance for the school-lunch program

pursuant to the provisions of this Act. The Secretary shall apportion among the States during each fiscal year the aforesaid sum of

$10,000,000, and such apportionment among the States shall be on

the basis of the factors, and in accordance with the standards, set

forth in section 4 with respect to the apportionment for agricultural

commodities and other foods. Apportionments of funds for use in

Puerto Rico, Guam, and the Virgin Islands for nonfood assistance

shall be determined subject to the provisions of the third sentence of

section 4.3 (42 U. S. C. 1754)

DIRECT FEDERAL EXPENDITURES

SEC. 6. The funds appropriated for any fiscal year for carrying out

the provisions of this Act, less not to exceed 31^ per centum thereof

hereby made available to the Secretary for his administrative expenses

and less the amount apportioned by him pursuant to sections 4, 5,

2 The two preceding sentences were substituted for the original provisions by the act of

July 12, 1952, Public Law 518, 82d Cong., 66 Stat. 591.

3 This sentence was substituted to£ thj original provision by the act of July 12, 1952, suprt^.

412526—57 17
242 NATIONAL SCHOOL LUNCH ACT

and 10, shall be available to the Secretary during such year for direct

expenditure by him for agricultural commodities and other foods to

be distributed among the States and schools participating in the

school-lunch program under this Act in accordance with the needs as

determined by the local school authorities. The provisioiis of law

contained in the proviso of the Act of June 28, 1937 (50 Stat. 323),

facilitating operations wtih respect to the purchase and disposition

of surplus agricultural commodities under section 32 of the Act

approved August 24, 1935 (49 Stat. 774), as amended, shall, to the

extent not inconsistent with the provisions of this Act, also be applicable to expenditures of funds by the Secretary under this Act. (42

U.S.C.1755)

PAYMENTS TO STATES

SEC. 7. Funds apportioned to any State pursuant to section 4 or 5

during any fiscal year shall be available for payment to such State

for disbursement by the State educational agency, in accordance with

such agreements not inconsistent with the provisions of this Act, as

may be entered into by the Secretary and such State educational

agency, for the purpose of assisting schools of that State during such

fiscal year, in supplying (1) agricultural commodities and other foods

for consumption by children and (2) nonfood assistance in furtherance of the school-lunch program authorized under this Act. Such

payments to any State in any fiscal year during the period 1947 to

1950, inclusive, shall be made upon condition that each dollar thereof

will be matched during such year by $1 from sources within the State

determined by the Secretary to have been expended in connection

with the school-lunch program under this Act. Such payments in

any fiscal year during the period 1951 to 1955, inclusive, shall be made

upon condition that each dollar thereof will be so matched by one and

one-half dollars; and for any fiscal year thereafter, such payments

shall be made upon condition that each dollar will be so matched by

$3. In the case of any State whose per capita income is less than the

per capita income of the United States, the matching required for

any fiscal year shall be decreased by the percentage which the State

per capita income is below the per capita income of the United States.

For the purpose of determining whether the matching requirements

of this section and section 10, respectively, have been met, the reasonable value of donated services, supplies, facilities, and equipment as

certified, respectively, by the State educational agency and in case of

schools receiving funds pursuant to section 10, by such schools (but

not the cost or value of land, of the acquisition, consti'uction, or alteration of buildings of commodities donated by the Secretary, or of

Federal contributions), may be regarded as funds from sources within

the State expended in connection with the school-lunch program.

The Secretary shall certify to the Secretary of the Treasury from

time to time the amounts to be paid to any State under this section

and the time or times such amounts are to be paid; and the Secretary

of the Treasury shall pay to the State at the time or times fixed by

the Secretary the amounts so certified. (42 U. S. C. 1756)

STATE DISBURSEMENT TO SCHOOLS

SEC. 8. Funds paid to any State during any fiscal year pursuant to

section 4 or 5 shall be disbursed by the State educational agency, in
NATIONAL SCHOOL LUNCH ACT 243

accordance with such agreementg approved by the Secretary as may

be entered into by such State agency and the schools in the State, to

those schools in the State which the State educational agency, taking

into account need and attendance, determines are eligible to participate in the school-lunch program. Such disbursement to any school

shall be made only for the purpose of reimbursing it for the cost of

obtaining agricultural commodities and other foods for consumption

by children in the school-lunch program and nonfood assistance in

connection with such program. Such food costs may include, in addition to the purchase price of agricultural commodities and other

foods,^ the cost of processing, distributing, transporting, storing, or

handling thereof. In no event shall such disbursement for food to

any school for any fiscal year exceed an amount determined by multiplying the number of lunches served in the school in the school-lunch

program under this Act during such year by the maximum Federal

food-cost contribution rate for the State, for the type of lunch served,

as prescribed by the Secretary. (42 U. S. C. 1757)

NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

SEC. 9. Lunches served by schools participating in the school-lunch

program under this Act shall meet minimum nutritional requirements prescribed by the Secretary on the basis of tested nutritional

research. Such meals shall be served without cost or at a reduced

cost to children who are determined by local school authorities to be

unable to pay the full cost of the lunch. No physical segregation of

or other discrimination against any child shall be made by the school

because of his inability to pay. School-lunch programs under this

Act shall be operated on a nonprofit basis. Each school shall, insofar

as practicable, utilize in its lunch program commodities designated

from time to time by the Secretary as being in abundance, either

nationally or in the school area, or commodities donated by the Secretary. Commodities purchased under the authority of section 32 of

the Act of August 24,1935 (49 Stat. 774), as amended, may be donated

b3^ the Secretary to schools, in accordance with the needs as deter^

mined by local school authorities, for utilization in the school-lunch

program under this Act as well as to other schools carrying out nonprofit school-lunch programs and institutions authorized to receive

such commodities. (42 TJ. S. C. 1758)

NONPROFIT PRIVATE SCHOOLS

SEC. 10. If, in any State, the State educational agency is not permitted by law to disburse the funds paid to it under this Act to nonprofit private schools in the State, or is not permitted by law to

match Federal funds made available for use by such nonprofit private

schools, the Secretary shall withhold from the funds apportioned to

any such State under sections 4 and 5 of this Act the same proportion

of the funds as the number of children between the ages of five and

seventeen, inclusive, attending nonprofit private schools within the

State is of the total number of persons of those ages within the

State attending school. ^ The Secretary shall disburse the funds so

withheld directly to the nonprofit private schools within said State

for the same pui'poses and subject to the same conditions as are
244 NATIONAL SCHOOL LUNCH ACT

authorized or required with respect to the disbursements to schools

within the State by the State educational agency, including the

requirement that any such payment or payments shall be matched,

in the proportion specified in section 7 for such State, by funds from

sources within the State expended by nonprofit private schools within

the State participating in the school-lunch program under this Act.

Such fimds shall not be considered a part of the funds constituting

the matching funds under the terms of section 7. (42 U. S. C. 1759)

MISCELLANEOUS PROVISIONS AND DEFINITIONS

SEC. 11. (a) States, State educational agencies, and schools participating in the school-lunch program under this Act shall keep such

accounts and records as may be necessary to enable the Secretary to

determine whether the provisions of this Act are being complied with.

Such accounts and records shall at all times be available for inspection

and audit by representatives of the Secretary and shall be preserved

for such period of time, not in excess of five years, as the Secretary

determines is necessary.

(b) The Secretary shall incorporate, in his agreements with the

State educational agencies, the express requirements under this Act

with respect to the operation of the school-lunch program under.this

Act insofar as they may be applicable and such other provisions as in

his opinion are reasonably necessary or appropriate to effectuate the

purposes of this Act.

(c) In carrying out the provisions of this Act, neither the Secretary nor the State shall impose any requirement with respect to teaching personnel, curriculum, instruction, methods of instruction, and

materials of instruction in any school. If a State maintains separate

schools for minority and for majority races, no funds made available

pursuant to this Act shall be paid or disbursed to it unless a just and

equitable distribution is made within the State, for the benefit of such

minority races, of funds paid to it under this Act.

(d) For the purposes of this Act—

(1) "State" includes any of the forty-eight States, the District of

Columbia, Hawaii, Alaska, Puerto Eico, Guam, and the Virgin

Islands.^

(2) "State educational agency" means, as the State legislature may

determine, (a) the chief State school officer (such as the State superintendent of public instruction, commissioner of education, or similar

officer), or (b) a board of education controlling the State department

of education; except that in the District of Columbia it shall mean

the Board of Education, and except that for the period ending June

30, 1948, "State educational agency" may mean any agency or agencies within the State designated by the Governor to carry out the

functions herein required of a State educational agency.

(3) "Nonprofit private school" means any private school exempt

from income tax under section 101 (6) of the Internal Eevenue Code,

as amended.

(4) "Nonfood assistance" means equipment used on school premises

in storing, preparing, or serving food for school children. (42 TJ. S. 0.

1760)

* This sentence was substituted for the original provision by the act of July 12, 1952,

supra.
COMPROMISING, ADJUSTING, OR CANCELING DEBTS 245

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

e:^tended to farmers under the provisions of the several Acts of Congress or programs enumerated in section 2: Provided^ That the

Secretary finds, after such investigation as he deems sufficient to establish the facts, that (1) said indebtedness has been due and payable

for five years or more ; (2) the debtor is unable to pay said indebtedness

in full and has no reasonable prospect of being able to 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 officers or employees of the Department of Asjriculture as he may desisTiate. (12

U. S. C. 1150)

SEC. 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

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 Public Eesolution numbered

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

412526—57 18
246 COMPROMISING, ADJUSTING, OR CANCELING DEBTS

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 Resettlement 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 (4-9 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 numbered 80) ; June 21, 1938 (52 Stat. 809) ;

June 30,1939 (53 Stat. 927) ; June 26, 1940 (Public Resolution numbered 88) ; flood-restoration 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 Uorporation ; and

crop-insurance 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

U. S. C. 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 out this Act. (12 Ü.S.C. 1150b)

SEC. 4. [Kepealed, 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

Paee

Acreage allotments. See Corn, Peanuts, Rice, Tobacco, Wheat.

Acreage Reserve Program. See Soil Bank Act.

Actual production. See Production.

Adjustment of marketing quotas 77-79

Administrative areas 6, 59, 77

Administrative expenditures:

Agricultural Adjustment Act of 1938 90-91

Commodity Credit Corporation Charter Act 144, 145

Compromising, adjusting or canceling debts. 246

Federal Crop Insurance Act 106, 108

International Wheat Agreement Act of 1949 -. 204

Soil Conservation and Domestic Allotment Act 2, 13, 89

Sugar Act of 1948 . .-__ 132

Administrative expenses, deduction of, from payments 13, 89, 91

Administrative Procedure Act, functions excluded from..- 205

Advances:

Administrative expenses of committees 89

Agricultural conservation program 6, 90

Commodity Credit Corporation ^ 90, 114

Crop insurance premiums 13

Advances to departmental agencies:

Brucellosis eradication 186

Classing and grading 185

Foot and mouth disease 185

Advertising and sales promotion programs, wool, mohair, sheep, and goats > 173

Advisory committee, crop insurance 112

Aerial photographs, availability of 88

Agricultural Act of 1949, see also Price support 151-167

Agricultural Act of 1954 . 168-174

Agricultural Act of 1956:

Title I—Soil Bank Act 92

Title 11—Surplus Disposal 180

Title V—Certificate Program for Rice 82

Agricultural Adjustment Act (of 1933). See Agricultural Marketing

Agreement Act of 1937.

Agricultural Adjustment Act of 1938 20-91

Agricultural commodities, products and byproducts:

Base period for prices 21-25

Expenditure to encourage exportation 180, 190, 197

Promotion of sale by Secretary of Commerce»»^ 21

Research into uses and markets 21

Stimulation of use 21

Transportation charges, parties to complaints ._ 20

Agricultural commodity, denned-^ 13,113

Basic - __ 163

Nonbasic 163

Agricultiu-al conservation program » 3-18

Administration by Secretary 5

Agricultural experiment stations, production exempt from penalty 80

Agricultural Extension Service. See Extension Service.

Agricultural Marketing Agreement Act of 1937. See Marketing Agreements and orders.

Agricultural Surplus Disposal Administrator 182

Agricultural Trade Development and Assistance Act of 1954 __ 190-196

247
248 INDEX

Appropriation authorizations: l*aff«

Commodity Credit Corporation capital impairment 175

Grain for waterfowl 178

Public Law 480 dispositions 192

Sales for foreign currency 192

Section 32, supplemental 182

Transfers to supplemental stockpile 182

Allocation of funds to:

Bureaus and offices of the Department for—

Agricultural adjustment 91

Federal crop insurance 107--108

Price support operations 146

Soil conservation 13

Sugar -- 132

Commodities 15

Research laboratories 21

Secretary of Commerce 22

States 4-5

Appointment of officers and employees:

Agricultural Adjustment Act of 1938 -- 88-89

Commodity Credit Corporation 146

Federal Crop Insurance Corporation 107-108

Soil Conservation and Domestic Allotment Act 2, 14, 89

Sugar Act of 1948 132

Appropriation, authorization and limitation of, for Soil Conservation and

Domestic Allotment Act 3, 14-15

Appropriation Act, fiscal years 1956-57:

Agricultural Adjustment Act of 1938—

Acreage allotments and marketing quotas 208

Limitation of funds transferred to Section 392 _ 208

Agricultural production programs 206

Commodity Credit Corporation _. 209, 210, 213, 214

Conservation and use of agricultural land resources—

Administrative expense funds for 1956-57 agricultural conservation program 206, 210

Allocation of funds for most needed practices 206, 210

Allocation of 1956-57 program funds among States 207, 211

Certificate of performance by claimant 206, 210

Conservation materials and services 206, 210

Exhibits, preparation and display 206, 210

Formation of 1956-57 program—

Distribution of funds among States -- 206, 210

Limitation on amount of payment to participants 207, 211

Funds available for 1956-57 program 206, 210

Information employees, prohibition against 207, 212

Political activity prohibited 207, 212

Prohibition against influencing legislation _ 207, 212

Soil Conservation Service, utilization of 207, 212

State committees to determine and approve practices — 207,212

Federal Crop Insurance Corporation— 208, 212

General provisions—

Aliens, employment of 214

Automobiles 214

Cotton, prohibition against price predictions 214

Funds for contracts relating to research____« 215

Lands, limitation on option to purchase 214

Legislation, prohibition against acts influencing .-- 215

Twine, prohibition against purchase of_-_ 215

International wheat agreement 210, 214

Sugar Act 208, 212

Annual appropriations:

Acreage allotments and marketing quotas, fiscal year—

1956 208

1957 — 212

Agricultural adjustment programs, fiscal year—

1956 208

1957 212
INDEX 249

Annual appropriations—Continued ^age

Agricultural Adjustment Act of 1938, fiscal year—

1956_- 208

1957 212

Commodity Credit Corporation, fiscal year—

1956 209

1957 213

Conservation and use of agricultural land resources (Sees. 7-17, Soil

Conservation and Domestic Allotment Act), fiscal year—

1956 206

1957_. 210

Federal Crop Insurance Corporation, fiscal year—

1956 208

1957 212

General provisions of 1957 fiscal year act 214

International wheat agreement, fiscal year—

1956 210

1957_J 214

School lunch program 208, 212

Sugar Act of 1948 fiscal year—

1956- 208

1957 212

Assignment, agricultural conservation program payments 12

Assistance to friendly nations 194

Barter or exchange of agricultural commodities:

Charter provision 143

Duty free entry of strategic commodities 182

For specified programs 196

For strategic commodities ^ 143, 182

For use in programs 196

To develop new markets 168

Transfer of commodities to—

National stockpile 168,169

Supplemental stockpile 182

Out of set-aside 168

Base, period for prices ; 3

Barden amendment 38, 46, 73

Bushel, defined 26

Butter:

Price support __^ 155

Set-aside 168

Buyer, collection and payment of penalty by 40, 42, 53, 74, 80

Cancellation of debts 245

Carriers, common, records and reports required of 80

Carry-over, defined:

Corn, cotton, peanuts, rice, tobacco, wheat 26

Effect of set-aside 169

Nonbasic agricultural commodity 164

Cheese, set-aside 168

Classification Act of 1949 2, 108

Commission on increased industrial use of agricultural products 182

Commercial corn-producing area, defined 27

Committees, local, county, and State:

Estabhshment 6-7

Expenses 13,90-91

Functions and utilization for—

Agricultural adjustment 22-23,

35-36, 44, 48, 55-63, 65, 72-74, 82, 83-85

Commodity credit 147

Federal crop insurance 107-108

Soil conservation 9-10, 12

Sugar 131

Names and compensation of members and employees 91

Committee, review. See Review committee.

Commodity Credit Corporation Charter Act, see also Commodity Credit

Corporation 141
250 INDEX

Commodity Credit Corporation. See also Price support. Paee

Acquisition of plants and facilities 143

Administrative expenses 187, 209, 213

Advances for crop insurance premiums 90

Advances to Department agencies 185

Allotment of funds to other agencies 146

Appraisal of assets 175

Annual report - 147

Board of directors.. 145

Advisory board 145

Borrowing authority 144, 176

Bylaws, adoption of 142

Capital impairment, restoration 175

Capital stock.._ — 145

Claims, authority to adjust and settle 144

Cold storage facilities -— 143

Contracts and agreements . 142

Cooperation with other agencies 1 146

Corporate powers 141, 144

Counterclaims 142

Creation and purposes 141

Crimes and offenses 147

Disposition of agricultural commodities. See Sales by CCC. 145,

155, 160, 165, 178-84

Migratory waterfowl -- 178

Processing, payment of costs 166

Dissolution of Delaware corporation 149

Exchange of commodities for foreign products. -. 143, 168, 182

Exemption from legal process 141

Expansion and development of markets 145, 168, 190

Expenditures, authority to determine ^- 144

Exportation of surplus commodities 191

Exporting agricultural commodities — 145

Federal Property and Administrative Services Act, exemption from.. 187

Federal Reserve Banks, use of _- — 177

Federal Tort Claims Act applicable 142

Free use of mails 142

General powers ^ 141

Insurance on cotton 87

Interest of Members of Congress 147

Jurisdiction of courts 141

Legal history of 139

Limitation on actions 141

Loans and advances, authority to make 144

Loans to Department agencies 185

Loans, income tax on 188

Location of offices 141

Making available surplus agricultural commodities 191, 194

Munitions Board, Department of Defense 143

National School Lunch Act 240

Personnel 146

Powers - 141,144

Purposes. 141

Procuring agricultural commodities 144

Reconcentration of cotton 87

Regulations and rules, authority to adopt 142

Reimbursement by other agencies. See Reimbursement to CCC.

Removal or disposition of surplus commodities 145

Reports to Congress. See Reports by CCC to Congress.

Research, restrictions on 144

Restrictions on acquisition of real and personal property 142

Right to intervene in proceedings 141

Rights, privileges and immunities of, same as United States 142

Sales. See Sales by CCC.

Set-offs 142

Specific powers -— 144

Statutes applicable to Corporation 145

Stimulating foreign production 188
INDEX 251

Commodity Credit Corporation—Continued Page

Storage facility loans to grain producers. 143

Strategic and Critical Materials Stock Piling Act 143, 168, 182

Suits _-_._ - .. 141

Summary of legal history of Corporation 139

Supporting prices of agricultural commodities_- 144

Taxation _-.-_ 177

Transfer of assets of Delaware corporation 148

Use of funds and other assets 145

Utilization of associations and trade facilities 145

Utilization of usual trade channels, etc 142, 143, 145

Commodity set-aside. See Set-aside.

Conditions for receiving payment or grant of aid 2, 6-7, 9, 64, 128

Confidential records and reports 80

Congress, interest of members in contracts with the Government 88, 134, 147

Conservation materials and services, see also Grants of aid 7

Consumer safeguards 32

Consumption, normal domestic human 3

Consumption, normal yearns domestic:

Defined—

Corn, cotton, tobacco, wheat 28

Rice 28

Converted goods 149

Cooperation, for soil conservation:

Government agencies 2

States : __^ 4

Cooperative associations, recognition and encouragement of 7, 21

Cooperator, defined 163

Corn:

Acreage allotments and marketing quotas 41-44

Acreage allotment for commercial area—

Amount of 43

Apportionment to counties 43

Apportionment of county allotment to farms 43

When proclaimed 43

Acreage allotments under Soil Conservation and Domestic Allotment

Act 8-9

Appeal relating to farm quota and allotment, see also Review of farm

marketing quota and acreage allotment 77-78

Definitions—

Actual production 26

Bushel ^^_._ 26

Carryover 26

Commercial corn-producing area . 27

Cooperator _ 163

Corn 27

Farm consumption 27

Farm marketing excess 42

Farm marketing quota 42

Market, marketed, for market 27

Marketing year 27

Normal production 28

Normal supply 28

Normal year's domestic consumption :__ 28

Normal year's exports 29

Normal yield 29

Reserve supply level ^__ 30

Total supply 31

Crop insurance. See Crop insurance.

Farm acreage allotments 43

Notice of farm acreage allotment 77

Farm marketing excess—

Application for adjustment of storage amount 42

Adjustment in amount of 42

Disposition of corn delivered to Secretary 42

Failure to deliver or store 42
252 INDEX

Corn—Continued ^®^®

Farm Marketing Excess—Continued

Nonallotment farms ji

Producer subject to penalty on -,-""""

Reduction of stored amount by underplantmg or producmg

subnormal crop ^^

Regarded as available for marketing _ ^^

Regulations governing delivery or storage -- ^z

Farm marketing quotas— ^

Amount of farm quota ^^

Conditions requiring proclamation of ^^

Effect of termination ^^

Exemption of farms producing 300 bushels 4-á

Exemption of farms planting 15 acres or less 4^

Increase or termination '^^j *^

Notice of farm marketing quota ___ __ *J^

Termination of, on basis of September crop estimate 4J

When proclaimed. > __|5

Identification of marketings _ »^ «^

Increase or termination of quotas and allottments - - öz, 4t^, / y

Loans. See Price support.

Acreage requirement for price support |0^

Price support on AI-49

Legislative finding CI-Q9

Measurement of farms ^^ ^^

Parity payments ^^

Penalties— ^^

Application for adjustment of Jo

Buyer to collect and pay ^5

Depletion of stored excess corn Jn

Exemption of corn marketed by experiment stations _ »u

Exemption of nonallotment .^..«x«xx... farms 42

Lien for, on entire crop ,----í-IT----,- ^o Marketings subject to, until excess stored or delivered 4^

Nonallotment farms ;^

Payment of, upon failure to deliver or store excess corn 4^

Producer subject to penalty.^ ^^

Rate of penalty __--. _ 4^

Refund of penalty ^^' %

When due ^"^

Proclamations— .0

Acreage allotment for United States 4ó

Commercial corn-producing area - |n

Increase or termination of marketing quotas t »-0^

Marketing quotas r~""x"; T~~ li. Normal supply, reserve supply level, total supply 40

Referendum results ^^

Referendum— .9

Effect of results ||

Notice^of^fam' quota and allotment mailed prior to referendum. 77

Proclamation of results J^

When conducted ^ ^9

Regulations issuance by Secretary - - - Q^IT

Reports and records required of buyers, warehousemen and others«-- 80-^1

Data confidential f-'-^'-'—f-f^S^ Review of farm quota and allotment, see also Review oí íarm

marketing quota and acreage allotment ' ' '^

Acreage allotments and marketing quotas (American upland cotton)- 53-64

Acreage planted, effect of, on agricultural conservation program

payment 01 co Adjustment of acreage planted to cotton »-L 0^
INDEX 253

Cotton—Continued Page

Acreage allotments and marketing quotas—Continued

Administrative areas 58

Appeal relating to farm quota and allotment, see also Review of

farm marketing quota and acreage allotment 77-79

County acreage allotments—•

Adjustments in 56

Apportionment to old cotton farms 56

County cropland factor 57

Reserves for adjustments and new farms 56

Crop insurance. See Crop insurance.

Loans. See Price support.

Classification of . 185

Exportsales 181

Extra long staple. See Extra-long staple cotton.

Insurance on 111

Predicting prices 214

Price support on 152

Reconcentration of 87, 188

Sales for export 187

Set-aside 168

Standard grade 159

Definitions—

Actual production 26

Carryover 26

Farm marketing excess 63

Market, marketed, for market 27

Marketing year , 28

National average yield 28

Normal production 28

Normal supply 28

Normal year's domestic consumption 28

Normal year's exports 29

Normal yield, county and farm 29

Parity 22

Total supply 31

Excess acreage excluded from allotment calculations 59

Exclusion of acreage and yield data for 1949 , 59

Farm acreage allotments—

Adjustments in old farm allotments 56

Adjustments in allotments for small farms 56

Apportionment of county allotment to old farms 56

Farms acquired for governmental use 60

Farms returned to agricultural production from governmental use . 60

Minimum farm allotments for 1956-57 60

Minimum, for old farms 56

New Farms 56

Release and reapportionment of 1956-57 farm allotments 57-58

Farm marketing excess—

Adjustment in amount of 63

Amount of farm marketing excess 63

Producer subject to penalty on 63

Regarded as available for marketing 63

Farm marketing quotas—

Amount of farm quota _^ 63

Increase or termination 79

Identification of marketings 81-82

Legislative findings 53-54

Long staple cotton:

Applicability of provisions of Act relating to acreage allotments and marketing quotas for cotton 63-64

Exemption of, from acreage allotments and marketing quotas

for American Upland cotton 63-64

Loans. See Price support.
254 INDEX

Cotton—Continued

Crop insurance—Continued.

National marketing quota— Page

Amount 63-64

Minimum national quota ~_ "_ 63-64

When proclaimed ~""I 63-64

Rate of penalty I__IIIII 64

Varieties of long staple cotton "llíí 64

Measurement of farms -..l.l.li" 81

National acreage allotment—

Amount of 55

Apportionment to States:

For 1950 and 1951 _ _ 55

For 1952. II-III"I"IIIII]I 56

For 1953 and subsequent years 55

When proclaimed.- IÍÍ1Í 55

National marketing quota—

Amount of. 54

Conditions requiring proclamation of 54

Minimum national marketing quota I_^ 54

When proclaimed I" 54

Parity payments III"! 31-32

Penalties—

Buyer to collect and pay__ 80

Exemption of marketings by experiment stations 80

Interest on unpaid penalty 63

Lien for, on entire crop 63

Long staple cotton exemption I_I 63-64

Producer subject to 63

Rate of penalty 63

Refund of penalty..i I 63,80

Proclamations—

Increase or termination of marketing quotas 79

National acreage allotment 55-56

National marketing quota 54

Referendum results 55-56

Referendum—

Effect of results 55

Eligible voters. 55

Notice of farm quota and allotment mailed prior to referendum. _ 77

Proclamation of results 55-56

When conducted 55

Regulations, issuance by Secretary.. 82

Reports and records 80-81

Availability of data on allotments and quotas 59-60

Data confidential 80-81

Information required of ginners, buyers and others 80-81

Review of farm quota and allotment, see also Review of farm marketing

quota and acreage allotment 77-79

Standard grade of cotton for parity and price support 25, 159

State acreage allotments—

Apportionments to counties 56

Minimum State allotment 60

Reserve for adjustments and new farms 56

War crops and service, credit for 57

Cottonseed, price support 167

Cottonseed oil, set-aside. 168

County agricultural extension agent 6-7

County committee, election of 6-7

County committee, secretary to 6-7

County convention, election of delegates to . 6-7

Court:

Jurisdiction. _. . 82, 107, 110, 132, 141, 204

Review—

Marketing quotas 78

Sugar allotments 124-125

Crop insurance. See also Federal Crop Insurance Corporation.

Advances to producers 14

Agricultural commodities defined 113

Amount of insurance coverage 109
INDEX 255

Crop insurance—Continued ^^^®

Applications for, number required 110

Claims for losses 110

Corn 109

Cotton 109

Cottonseed HI

Counties, number in which insurance to be offered 109

Criminal provisions applicable 113

Crops insured 109

Declaration of purpose 106

Failure to reseed to same crop or to follow good farming practices- 109-110

Flax 109

Indemnities free from levy HI

Interest of Members of Congress 112

Investment insurance 109-110

Jurisdiction of courts on claims 109-110

Limitations on basis of risk involved 109-110

Minimum amount of participation 109-110

Multiple crop insurance 109-110

Premiums 109-110

Neglect or malfeasance of producer 109-110

Reinsurance for private companies 109

Risks insured against 109

Tobacco 109

Wheat - 109

Cropland:

Government owned, payments to 12

Leasing by government 104

Dairy products:

Congressional policy.- 156

Domestic disposal 157

Donations 155

Price support 155

Set-aside of butter 168

Data, latest available to be used 31

Death, incompetency, or disappearance, person entitled to payment 88, 131

Debts, compromising, adjusting or canceling—

Applicable statutes and programs 245

Appropriation authorization 246

Conditions under which action authorized 245

Regulations, issuance by Secretary 245

Declaration of policy. Agricultural Adjustment Act of 1938^'. 20

Deficiency, loan collateral, liability for 160

Definitions:

Actual production 26,42,49-52

Adjusted base price 22

Affect interstate and foreign commerce 25

Agricultural commodity 13, 113

Basic agricultural commodity 163

Bushel 26

Carry-over ^ 26, 164

Commercial corn-producing area 27

Cooperator 163

Corn - 27

Department 25

Direct-consumption sugar 117

Farm consumption 27

Farm marketing excess 42, 49, 63, 68

Farm marketing quota 33, 42, 49, 63, 68, 72

Friendly nations 194

Interstate and foreign commerce 25

Liquid sugar _ 117

Long staple cotton 63

Manufactured sugar 136

Manufacturer, sugar. 136

Market, marketed, marketing 27

Marketing year 28,164
256 INDEX

Page

Definitions—Continued

National average yield 28

Nonbasic agricultural commodity 163

Normal production 28

Normal supply 28

Normal year's domestic consumption „ 29

Normal year's exports 29

Normal yield 29

Parity, prior to Agricultural Act of 1949 1 22

Parity, income 25

Parity index 25

Parity price_ 25

Peanuts _ _ 76

Person 25, ÍÍ7, 136, 205

Producer, sugar 118

Quota, sugar 118

Raw sugar 117

Raw value, sugar 118

Reserve supply level 30

Secretary 25, 119

State 25, 162, 166

Storable commodities 163

Sugar _ 117

Sugars 117

Supply percentage 163

Surplus agricultural committees 194

Tobacco___ 30-31

Total sugar content 118

Total sugars 136

Total supply 31, 164

Transitional parity price ^ 25

united States 25, 166

Demonstrational projects 1

Deposit of funds:

Crop insurance 111

Excise tax, sugar 135

Marketing penalties 40, 74, 80

Photographic reproductions 88

Determinations, sugar 119-120, 126-130

Disappearance, death, or incompetency, person entitled to payment 88, 131

Disaster relief:

Feed 161

Equipment, supplies 162

Disposition of surplus agricultural commodities 145, 155, 160, 165, 178-84

District attorneys, enforcement of Sugar Act by 82, 132

District courts, jurisdiction of 82, 107, 109, 132, 141, 204

Diverted acreage:

Corn..__ 9,43

Rice 65-67

Tobacco 35-40

Wheat ^ 9,45-49

Domestic markets, expansion of, for agricultural commodities 14, 21, 145, 197

Donation:

For disaster relief 161

For research or education 169

Generally 165, 199

Of dairy products 155

To penal institutions 183

To school lunch program. 243

Donation of set-aside commodities:

Disaster relief in U. S.__ 169

Foreign disaster relief 168

Research or educational purposes 169

School lunch 168

Drainage projects . 184

Educational exchange, financing of international 193

Election of local and county committees 6
INDEX 257

Page

Eligibility to vote in committee elections - 6

Enforcement of Agricultural Adjustment Act of 1938 82

Expansion of international trade__ 190

Export and surplus removal 190

Export, sales for—

Cotton 181

Extra-long staple cotton__ 180

Extension Service 88, 131

County agent 6> 12

State director 6-7

Extra-long staple cotton:

Export sales 181

Import quota -- 180

Price support 153

Sales for export 181

Facts constituting basis for agricultural conservation program payment,

sugar or parity payment, loan, or price support, conclusiveness of._ 14. 88, 131

Fair prices for conservation materials and services 7

Famine relief:

CCC surplus commodities for 194

Marking, as from U. S _- .- 196

Farm, definition of, for purposes of sugar payments 129

Farm marketing excess:

Corn - 42

Cotton - 55-63

Rice 65-68

Wheat 49

Farm marketing quotas. See Corn, Cotton, Peanuts, Rice, Tobacco,

Wheat.

Farms, small. Provisions relating to 7, 35-37, 42, 49, 55, 74, 130

Federal Crop Insurance Act 105-115

Federal Crop Insurance Corporation:

Accounting by 112

Actions on claims 110

Advances by CCC for payment of premiums 90

Advisory committee : 112

Allotment of funds to bureaus, offices, and agencies 108

Annual reports. 112

Appropriation, authorization for administrative costs 113

Appropriations for fiscal years 1947-1953. See Appropriations.

Audit of accounts by General Accounting Office 112

Board of Directors... 106

By laws, adoption of 107

Capital stock . . 106

Claims I'or losses 110

Compensation, injured employees.. 108

Corporate powers 107-108

Corporate seal < 107

Court action, by and against 107

Creation. _.^ 106

Crimes and offenses 113-115

Deposit of funds 111

Employees to furnish bonds 108

Exemption from legal process _-. 107

Exemption from taxation . 112

Expenditures, authority to determine 108

Fiscal agent of Government 112

Free use of mails 107

Funds, deposit and investment 111

General powers of Corporation 107

Incidental powers . 107

Indemnities, payment of.^ . 109

Location, principal office _- -— 106

Management. .- 106

Manager 106
258 INDEX

Pag«

Federal Corp Insurance Corporation—Continued

Non-administrative and nonoperating expenses 113

Oiffset purchases and sales „ 109

Personnel 108

Premium rates. _ - 109-110

Premium reserves 109-110

Premiums, collection or payment of 109-110

Publication of list of indemnities paid 109-110

Purchase, handling, and sale of agricultural commodities 109-110

Purpose of Act _„ 106

Regulations 107, 113

Report to Congress 109-110

Research, surveys, and investigations 108

Right to amend Act 113

Separability 113

Tax exemption 112

Utilization:

Cooperative associations 108

Local committees or associations 108

Federal Property and Administrative Services Act 187

Feed for livestock 161

Feed grains, acreage requirements for price support 154

Fees, import 197, 235

Finality of determinations 15, 23, 88, 108, 131, 165, 197

Financing exports of surplus commodities 191

Fines and forfeitures:

Agricultural Adjustment Act of 1938 81

Commodity Credit Corporation 147

Federal Crop Insurance Corporation 114

International Wheat Agreement 204

Sugar Act __ 132

Fish and fish products, surpluses of 199

Flood control projects 184

Food stamp plan, legislative directive 180

Foreign currency, sales for under Public Law 480:

Deposit of currency in special account 194

Report to Congress 194

Use of currency 192

Foreign governments, sales to 179

Foreign markets, expansion of 14, 190

Foreign production, stimulation of 188

Freight, ocean, payment of 208, 192, 195

Freight rates, adjustment of 20

Friendly nations:

Assistance to_>_ _ 196

Sales to, for foreign currency 191

Goats:

Advertising and sales promotion programs 173

Price support on mohair 171

Government-owned cropland, payments on__ 12

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 12

Grants to agricultural producers, conditions of payment 9

Great Plains convervation program 16

Hearings:

Adjustment of marketing quotas 79

Imports 235

Parity prices 22

Price support level 159

Review committee 77

Sugar 123,133-134

House of Representatives, Committee on Ways and Means 236, 237
INDEX 259

Page

Imports quotas and fees under Section 22 of Agricultural Adjustment Act

of 1933 235

Agreements with foreign governments. _ -• 181

Extra-long staple cotton 180

Imports and exports:

Farm commodities, investigation of cause of reduction of exports 22

President's authority under Section 22 of Agricultural Adjustment

Act of 1933 - 235

See also Sugar.

Incompetency, death, or disappearance, person entitled to payment 88, 131

Income tax, on CCC loans 188

Industrial Use Commission 182

Innocent purchasers of converted goods 149

Insurance on cotton 111

Intergovernmental organizations, use of 195

International Wheat Agreement, 1956 —_ 205

International Wheat Agreement Act of 1949 , 202

Appropriation authorization : 204

Fines and forfeitures 204

Jurisdiction of courts 204

Person, defined 205

Regulations and rules, issuance by President 203

Utilization of Commodity Credit Corporation 202

Interstate Commerce Commission:

Department of Agriculture, cooperation 20-21

Farm products, prosecution of complaints by Secretary of Agriculture. 21

Hearings before . 21

Investigations 1, 10, 12, 22, 27, 79, 108, 134, 235

Irrigation, drainage, and flood control projects 184

Landlords, tenants, or sharecroppers 7, 10-11, 39, 129

Laws, miscellaneous 216

Letters of commitment, sales for foreign currency 192

Limitations, payments under agricultural conservation program 11-12

Livestock and poultry producers, protection of income of 10

Livestock feed, sugar 137

Loans, on agricultural commodities. See Price support.

Loans, income tax on CCC 188

Loans, irrigation, drainage projects— _ 184

Local administrative areas 6, 59, 88

Local and county committees. See Committees.

Long staple cotton. See Cotton.

Manufacturers, sugar tax — 135-137

Maps, furnished to governmental agencies 88

Market, marketing, or marketed, definition of 27

Marketing agreements and orders:

Anti-trust laws, exemption from. 218

Blended milk prices .-.. 221

Books, keeping of 229

Commerce, interstate or foreign, defined 233

Commodities for which orders may be issued ^- 219

Confidential information, penalties 229

Cooperation with State authorities 233

Forfeitures... . 217

Fruit and vegetable orders 221

Generally 216

Hearing on order .^ 219

Marketing agreements ..! 218, 224

Marketing control:

Commodities other than milk and its products, methods 221

Milk and its products, methods. 219

Marketing order, issuance .-. 219

Marketing policy. 217

Milk marketing orders 219

Milk order prices : .. 228

Milk programs 219, 228

Notice of proposed order 219
260 INDEX

Marketing agreements and orders—Continued Page

Orders:

Agreement, conformation to _ _ 219

Authority to issue IIIIIII_II_ 218

Commodities other than milk or its products, terms of."/-"ÍÍ. 221

Cooperative, approval of, as approval of producer _ 226

Marketing agreement, with 224

Marketing agreement, with or without I_IIII_III 224

Milk or its products l.íll.í 219

Producer and processor, approval of IIIII"II 224, 225

Referendum for approving ~_ ' 229

Regional basis, applicability on . IIIIII__II~ 226

Terms and conditions of 219, 221

Penalties for violation of order «I_I_IIIII 226* 232

Petition by handler, court review of Secretary's ruling_~_IIIIII_III__ ' 227

Petition by handler for modification of order or exemption _ _ 227

Policy _ 217

Products covered by _ _ ¿18 219

Purposes of program IIIIIIIIII.IIII ' 217

Records, keeping of ^^_IIIIIIIII ^"~I 229

Termination of "ll"'!'"" I 227

Violation of orders IIII "~ ¿26 232

Marketing penalties. /See Penalties. " " '

Marketing percentage, corn 42

Marketing quotas:

Adjustment of quotas and enforcement 79-80 87

Commodities subject to— " '

Corn _ 41-44

Cotton li"lili^lililí 53-64

Peanuts _ 70-77

Rice IIIIIIIIII 64-70

iobacco 32-41

Wheat _ -IIIIIIIIIIIIIIIIIII 44-53

Keview of farm marketing quotas by review committees 77-78

Marketing quotas, transfer of __ 33 53

Marketing year: '

Corn 28

Cotton _ _ 28

Peanuts IIIII_IIII~_ 28

Rice _III_III_IIIiri~r"' 28

Tobacco _ 28

Wheat IIII.IIIIIIIIIIIIII 28

Wool and mohair lllllllllllll 173

Measurement of farms IIIIIIIIIIIIIIIIIII 81-82

Members of Congress, statutes as to interest not" applicabielllllIIIII11 88, 112

Migratory waterfowl, grain for ^ . _ 178

Military equipment, etc., procurement of _ _ 193

Miscellaneous laws __' _ 2I6

Mohair:

Advertising and sales promotion programs 173

Marketing year 173

Price support IIIIIIIIIIIIIIIIII 171

Mosaics, furnished to governmental agencies- " I'I'II 88

Multilateral trade loans I93

National acreage allotment:

Cotton 55

Peanuts __, III11 I 71

Rice __. IIIIIIIIIIIIIIIIIIIIIII 65

Wheat . 45

National School Lunch Act. See School lunch programi

National average yield. See Yield.

National Industrial Recovery Act 2

National Marketing quota :

Cotton, >_ 54

Peanuts IIIIIIIIIII_IIIIIII_III_IIII 71

Tobacco I _ IIIIII.III „ _ 33

Wheat I_II^IIII_II_I_I_I„I_IIII 49
INDEX 261

National stockpile. See Stockpile. ^^s®

National Wool Act of 1954. See Wool.

Naval stores conservation program 13

New farms:

Cotton 56

Peanuts "^3

Rice..- 66

Sugar 130

Tobacco 35-36

Wheat 45-46

New or expanded markets 14, 168, 190

Nonallotment farms, corn, wheat 42, 51

Noncooperator, price support 152

Nonfat dry milk solids, set-aside 168

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 77

Nursery stock, appropriation authorized . 3

Obligations, limitation of, for agricultural conservation 16

Officers and employees, appointment and compensation. See Appointment of officers and employees.

Oil, crushing peanuts for 76

Parity, definition of (prior to Agricultural Act of 1949) 22

Parity (Agricultural Act of 1949):

Cottorij standard grade for purposes of 25

Definitions—

Adjusted base price 22

Parity index 23

Finality of determinations of prices and indices 23

Parity price—

Determination of 22

Wartime subsidy payments included 22-23

Hearings on revision 23

Minimum, for 6 years beginning Jan. 1, 1950 24

References to, meaning of 23

Parity payments. 31

Payments:

Agricultural conservation program 5-14

Exceeding cotton acreage allotment 64

Assignment of 12

Cropland owned by United States 12

Division of, between landlords, tenants and sharecroppers 11

Finality of determinations 15

Naval stores conservation program 13

Parity 23

Producers displaced by war effort 11

Small, increase in 11-12

Soil Conservation and Domestic Allotment Act 1-18

Sugar 116-138

Ten-thousand-dollar limitation. 12

Peanuts:

Acreage allotments and marketing quotasAppeal of farm quota and allotment, see also Review of farm

marketing quota and acreage allotment 77-79

County acreage allotments ^ 72-73

Definitions—

Actual production 26

Carry-over 26

Market, marketed, for market. 27

Marketing year 28

Normal supply 28

Normal yield, county and farm 29-30

Peanuts 75

Total supply 31

412526—57 19
262 INDEX

Peanuts—Continued ^»^o

Acreage allotments and marketing quotas—Continued

Excess acreage excluded from future allotment calculations 72-73

Exemption of farms harvesting one acre or less 75

Farm acreage allotments—

Additional acreage for types in short supply 72

Apportionment of county allotment to old farms _ 72-73

Apportionment of State allotment to old farms 72

Farms acquired by Government under eminent domain

powers -- 73

New farms 73

Reduction in, for violation 74

Release and reapportionment of farm allotments 73

Farm marketing quotas—

Amount of farm quota 71

Marketing prior to beginning of marketing year subject to^« 74

Identification of marketings 74, 81

Legislative findings. 70

National acreage allotment—

Amount of -r^ 71

Apportionment to the States 72

Conversion of national quota to 71

Minimum national acreage allotment 71

Reserve for new farms - 73

National marketing quota—

Amount 71

Conversion to national acreage allotment 71

Minimum national marketing quota 71

Proclamation of 71

Penalties, penalty—

Buyer to pay 74

Buyer and producer jointly and severally liable for 74

Deposit of penalties -- 74, 80

Failure to account for disposition of peanuts 75

False identification 75

Marketing in excess of farm quota, subject to 75

Misuse of marketing card 75

Payment of penalty by producer 75

Percent excess method of collecting 75

Rate of penalty 75

Refund of - 75, 80

No refunds based on peanuts used for seed or home

consumption , 75

Price support on 152

Proclamations—

Increase or termination of marketing quotas 79

National marketing quota 71

Results of referendum.-. 71

Referendum—

Effect of results 71

Eligible voters— 71

Proclamation of results - 71

When conducted 71

Regulations, issuance by Secretary 82

Release and reapportionment of farm acreage allotments .— 73

Reports and records 80

Data confidential — 80

Review of farm quota and allotment, see also Review of farm

marketing quota and acreage allotment 77-79

State acreage allotment—

Apportionment to old farms 72-73

Apportionment to counties 73

Increase in, for types of peanuts in short supply 72

War crops and service, credit for 73

Penal and correctional institutions, donation to 183
INDEX 263

Penalty, marketing: . ^^^®

Exemption of crops marketed by experiment stations,^: 80

Payment, collection, and refund of penalties, see also Corn, cotton,

peanuts, rice, tobacco, wheat - --- 80

Rate of penaltyCorn..-.:- 42

Cotton-._ ^- 63

Peanuts 74

Rice 69

Tobacco - 40

Wheat 49, 53

Perishable agricultural commodity i. 158, 198, 238

Person, defined...- -- 25, 117, 136,205

Personnel:

Agricultural Adjustment Administration. 89

Commodity Credit Corporation 146

Federal Crop Insurance Corporation 108

International Wheat Agreement Act. 204

Production and Marketing Administration.. 89

Soil Conservation Service — 2

Sugar Act - -— - - 131-132

Photographic reproductions, mosaics, and maps, furnishing of, to governmental agencies and others 88

Policies and purposes:

Agricultural Adjustment Act of 1938 20

Commodity Credit Corporation Charter Act 141

Federal Crop Insurance Act 106

Soil Conservation and Domestic Allotment Act.. 1, 3, 20

Practices, agricultural conservation program, see also Appropriation Act,

1956-57 fiscal year 5-12

Price support:

Acreage requirements for corn, feed grains 154

Amount, terms, and conditions 158

Commodity Credit Corporation—

Authority to sell commodities.. 160

Disposition of commodities deteriorating or spoiling 160, 165

Restrictions on sales 160

Sales policies 160

Secretary to provide price support through 158

Utilization of, in Section 32 programs 159

Conditional on—

Marketing quota, marketing agreement or order program 157

Cottonseed 157, 167

DefinitionsBasic agricultural commodity 163

Carryover, nonbasic agricultural commodity 164

Cooperator 163

Marketing year >. 29, 164

Nonbasic agricultural commodity ^ 163

Normal supply, nonbasic agricultural commodity 164

Storable commodities 163

Supply percentage.- 163

Terms defined in Agricultural Adjustment Act of 1938 164

Total supply, nonbasic agricultural commodity 164

Eligibility for price support—

Compliance with allotments, goals, practices, quotas 158

Exclusion of set-aside from computation of carryover 169

Factors governing availability of price support 158

Finality of determinations 88, 165

Irrigation projects 184

Level of price support—

Adjustment for grade, location, etc 159

Cotton, Middling seven-eighths inch, standard grade. 25, 159

Advance announcement of 160

Basic agricultural commodities—

Corn, rice, and wheat 151, 159, 160

Corn outside commercial area 152
264 INDEX

Page

Price support—Continued

Level offprice support—Continued

Basiclagricultural commodities—Continued

Cotton and peanuts 151, 152, 153, 159, 160

Long staple cotton 151, 153^ 159 I^Q

Noncooperators _ _ _ 152

Tobacco _ ---'-'Í5Í,"Í52,"Í59, 160

Fire-cured, dark air-cured, and Virginia sun-cured tobacco 153

Designated nonbasic agricultural commodities— -

Honey I55 15g

Milk (whole), butterfat, and|products I _ " 155,' 159

Potatoes (Irish) I55, I59

Tung nuts _ . _ I55, 159

Wool (mcludmg mohair) I55, 171

Factors considered in determining "__ 'l58

Increasing, after public hearing I_I_I_II 159

Nonrecourse loans ~~" IQQ

Other nonbasic agricultural commodities I 157

Parity prices used in determining I59

Potatoes (Irish), no price support unless quotas in effect 155

Producer's liability for deficiencies, etc 160

Ileconcentrating and insuring cotton 87, 188

Processor programs___ ~~_ ' 159

Proclamations:

Imports . 235

Marketing quotas—

Corn 42, 43, 79

Cotton _ 54,79

Peanuts 71,79

Rice "" 65,'79

Sugar 133

Tobacco __ 33 79

Wheat ~_~_" 45^79

Procurement costs, reimbursement for 187

Producers, small, protection of 7

Production and Marketing Administration:

Delegation of powers to 14

Organization of 89

Production:

Actual—

Corn 26, 42

Cotton 26

Peanuts 26

Rice 26

Wheat 26,42

Normal—

Corn 28

Cotton 28

Rice 28

Wheat 28

Proportionate shares, sugar _ _ 129

Public Law 320, 74th Cong. Section 32 197

Public Law 165, 75th Cong. Purchase and distribution of surplus agricultural commodities for relief purposes 198

Public Law 442, 75th Cong. To maintain unimpaired capital of the

Commodity Credit Corporation 175

Public Law 660, 75th Cong. Reconcentration of cotton by Commodity

Credit Corporation.. 87, 188

Public Law 393, 76th Cong. Diversion of fish and fish products 199

Public Law 74, 77th Cong. Corn and wheat quota and allotment amendments. 42

Public Law 276, 78th Cong. Burley tobacco minimum allotment of one

acre 35
INDEX 265

Page

Public Law 412, 78th Cong. Sale of supplies, etc., by Soil Conservation

Service 3

Public Law 12, 79th Cong. War crop and service credit- 9, 46, 57

Public Law 396, 79th Cong. National School Lunch Act 240

Public Law 806, 80th Cong. Commodity Credit Corporation Charter Act__ 141

Public Law 897, 80th Cong. References to parity and prices in laws other

than Agricultural Adjustment Act of 1938 25

Public Law 28, 81st Cong. Cotton acreages and yields in 1949 excluded _ 59

Public Law 272, 81st Cong. Cotton, peanuts, and wheat quota and

acreagejallotment amendments 25

Public Law 421, 81st Cong. International Wheat Agreement Act of 1949- _ 202

Public Law 439, 81st Cong. Agricultural Act of 1949 151

Public Law 471, 81st Cong. No price support on potatoes unless quotas

in effect 155

Public Law 50, 82d Cong. Action by the President under Section 22 236

Public Law 528, 82d Cong. Burley tobacco minimum allotment of

seven-tenths acre, etc 35

Public Law 117, 83d Cong. Wheat national acreage allotment for 1954

crop 45

Public Law 480, 83d Cong. Agricultural Trade Development and Assistance Act of 1954 . 190

Public Law 690, 83d Cong. Agricultural Act of 1954 168

Public Law 21, 84th Cong. Redetermination of national marketing quota

for burley tobacco 34

Public Law 311, 84th Cong. Wheat flour and corn meal 200

Public Law 425, 84th Cong. Burley tobacco acreage allotment 36

Public Law 426, 84th Cong. Fire-cured and dark air-cured tobacco acreage allotment 37

Public Law 427, 84th Cong. Maryland tobacco acreage allotment 37

Public Law 540, 84th Cong. Agricultural Act of 1956 __„ 93, 180

Pubhc Law 554, 84th Cong. Department of Agriculture and Farm Credit

Administration Appropriation Act, 1957 210

Public Law 654, 84th Cong. Grain for migratory waterfowl 178

Public Law 979, 84th Cong. Soil Conservation and Domestic Allotment

Act 8

Public Law 480 190

Publication and review of farm marketing quota 77

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 10

Reconcentration of cotton 87, 188

Records, availability of Department 80, 133

Records and reports—

Agricultural Adjustment Act of 1938 80

Agricultural conservation operations, report to Congress 13

Commodity Credit Corporation, annual report 147

Federal Crop Insurance Corporation 112

International Wheat Agreement 203

Sugar Act of 1948 133

Referendum:

Commodities to which applicable—

Corn.. 42

Cotton 55

Peanuts 71

Rice 68-69

Tobacco 35

Wheat 52

Wool 173

Notice of farm quota and allotment mailed prior to referendum. 77

Refunds:

Marketing quota penalties 40, 42, 49, 63, 68-69, 74, 80

Taxes on sugar ; 135
266 INDEX

Regional research laboratories: l*age

Establishment and maintenance 21

Report to Congress of activities 21-22

Regulations:

Acreage allotments and marketing quotas 82

Agricultural conservation 8,10

Committees, selection and functions 7

Commodity Credit Corporation 142

Corn 10, 42, 80-82

Cotton _ _ -- 80-82

Crop insurance 107, 113

Debts, compromising, adjusting, or canceling 245

International Wheat Agreement 203

Peanuts 74,80-82

Rice 80-82

Soil conservation 2

Sugar 130, 132,135

Tobacco _ 40,80-82

Wheat - 10,49,80-82

Reimbursement to CCC:

By other agencies for services 179

Dairy products ^ 156

Disaster and distress relief 161,162

Grain for waterfowl 179

Payments to wool producers 172

Public Law 480 exports 192

Procurement costs 187

Transfers to stock pile 144,169, 170

Use of personnel and facilities by other agencies 146

Reports. See Records and reports.

Reports by CCC to Congress:

Agricultural Trade Development and Assistance Act 194

Annual report 147

Disposal of CCC stocks 180

Public Law 480 sales 194

Reserve supply level. See Supply.

Restrictions on land use. See Practices.

Review committee, appointment and compensation of members 77

Review of farm marketing quota and acreage allotment:

Application for review - 77

Publication and notice of farm quota and allotment 77

Review by court of review committee determination _ 78

Review of payments or grants only by Secretary 14

Rice:

Acreage allotments and marketing quotas—

Appeal of farm quota and allotment, see also Review of farm marketing quota and acreage allotment 77-78

County acreage allotments—

Apportionment to old farms 65-66

Definitions—

Actual production 26

Carry-over ^ 26

Market, marketed, for market — 27

Marketing year 28

Normal production --_ 28

Normal supply 28

Normal year's domestic consumption 28

Normal year's exports 29

Normal yield 29

Total supply 31

Exemptions—

Farms planting 3 acres or less to nonirrigated rice 68

Rice produced outside continental United States 68

Excess acreage excluded in future allotment calculations 68

Farm acreage allotments—

Allotments for new farms 67

Allotments for new producers 67
INDEX 267

Rice—Continued

Acreage allotments and marketing quotas—Continued

Farm acreage allotments—Continued l'âge

Established on basis of producer's rice history 67

Established on basis of rice history on farm 67

National reserve for adjustments in, for old and new farms. _ 66-67

Farm marketing excess—

Adjustment in amount of 69-70

Definition of 69

Disposition of rice delivered to Department 69-70

Producer subject to penalty on 69

Reduction of stored amount by underplanting or producing

sub-normal crop ^ 69-70

Regarded as available for marketing 69-70

Regulations governing delivery or storage 69-70

Representative grades to be stored unless otherwise provided« 69-70

Substitution of rice in storage 69-70

Farm marketing quotas—

Amount of farm quota 69

Increase or termination 79

Identification of marketings 81-82

Legislative findings 64

Marketings quotas—

Conditions requiring proclamation of 69

When proclaimed 69

IVÏeasurement of farms 81

National acreage allotment—

Amount of 65

Apportionment among States 65

Reserve acreage for old and new farms 65-66

When proclaimed 65-66

Penalties, penalty—

Depletion of stored excess rice 69-70

Exemption of rice marketed by experiment stations 80

Interest on unpaid penalty. 69

Lien for, on entire crop 69

Marketings subject to, until excess stored or delivered 69

Producer subject to penalty 69

Rate of penalty _ 69

Refund of 69-70, 80

When due 69-70

Proclamations ^ 65

Referendum—

Effects of results . 68

Eligible voters-- _ 68

Proclamation of results.-. 68

When conducted 68

Regulations, issuance by Secretary 69-70, 80

Reports and records 80

Data confidential 80

Review of farm quota and allotment, see also Review of farm

marketing quota and acreage allotment 77

State acreage allotments—

Apportionment to farms of old producers ^ 65-66

Apportionment to old farms 65-66

Establishment and adjustment of county allotments 65-66

Reserves for new farms and newjproducers 65-66

Rice certificates 82-87

Apportionment of primary market quota 83

Certificates 84

Civil Penalties 86

Definitions 86

Effective date and termination 83

Exemptions 85

Import restriétions 85

Inventory adjustment payments 84

Legislative findings 82
268 INDEX

Rice certificates—Continued ^ l*a&e.

Price support 1 84

Processing restrictions 85

Regulations 86

Reports and records 86

Review of primary market quota 83

Rice primary market quota 83

Rice set-aside 85

Sales by CGC:

Cotton for export 181

Extra long staple cotton for export 181

Financing exportation of surplus agricultural commodities.-- 191

For disaster relief 169

For export - 161, 180, 181

For foreign currency 191

For research or educational purposes 169

Legislative directive 180

Need for increased supplies 169

Sales price 160, 169, 191

Rotation of set-aside 169

To foreign Governments 179

Surplus agricultural commodities for export 191

To reduce set-aside 168

Section 32 _.— 159, 199

School lunch program:

Accounts and records 244

Administrative expenses 241

Agreements between States and schools 242

Agreements with States 242

Apportionments 240

Appropriations 208, 212, 240

Certification to Treasury of payments to States 242

Direct distribution 241

Disbursements to schools 242

Food costs defined 243

Imposition of teaching requirenáents prohibited 244

Matching funds _ 242

Minority races 244

Nonfood assistance 241

Nonfood assistance defined 244

Nonprofit private school defined 244

Nutritional requirements 243

Private schools 243

Program requirements 244

Records 244

Restrictions on public fund expenditures not applicable 242

School defined 241

Section 32 commodities to schools 242

State defined - --- 244

State educational agency defined 244

Secretary of Agriculture, defined 25, 119

Secretary of Commerce, prom.otion of sale of farm commodities by 22

Section 32 of Pub. Law 320, 74th Cong., see also Appropriations 197

Advance payments to Commodity Credit Corporation. 160, 199

Availability of funds 197

Distribution of fish products 199

Domestic consumption, encouragement of 197

Exportation, encouragem.entfof 197

Finality of Secretary's determinations — 197

Limitation on funds for a commodity 197

Purchasing power, reestablishment of farmers' 197

Supplemental appropriation - 182

Utilization of Commodity Credit Corporation.- 199

Wheat flour and corn meal 200

Section 22 of the Agricultural Adjustro,ent Act (of 1933) 235

Senate of the United States, Committee on Finance 236, 237
INDEX 269

Separability of provisions: i*age

Agricultural Adjustment Act of 1938 89

Federal Crop Insurance Act 113

Set-aside of agricultural commodities 168-170

Butter . - 168

Carryover, exclusion from 169

Cheese-- 168

Cottonseed oil 168

Creation of 168

Disposal of 168

Maximum and minimum quantities 168

Maximum value 168

Nonfat dry milk solids 168

"Reduction in by:

Donation, sale, barter, etc ^-._ 168-169

Natural or other causes _- 169

Public Law 480 exports 168

Records and accounts 170

Rotation .__ 169

Transfer to the national stockpile 169

Transfer of strategic commodities to stockpile 169

Upland cotton 168

Wheat-. 168

Settlement of indebtedness 245

Sharecroppers. See Landlords, tenants, or sharecroppers.

Sheep :

Advertising and sales promotion 173

Price support on wool 171

Small farms and small producers 7, 35-36, 49-52, 55-63, 74-77

Small payments, increase of_— 92-104

Soil Bank Act

Declaration of policy 93

Acreage reserve program 94

Compensation of producers 95

Effect on acreage allotments and quotas 96

Extent of participation in program 95

Conservation reserve program__ 97

Authorized period of contracts and expenditures 100

Conservation reserve goal 99

Effect on other programs 101

Geographical applicability 101

Termination and modifications of contracts 100

Terms and conditions 97

General provisions 101

Certificate of claimant 102

Compliance with acreage allotments 101

Finality of determination 103

Financing 103

Penalty for grazing or harvesting . 104

Pooling of conservation reserve land 104

Protection of tenants and sharecroppers 103

Reapportionment prohibited 102

Regulations 104

Utilization of land use capability data 102

Utilization of local and State committees 102

Utilization of other agencies 102

Soil-building practices. See Practices.

Soil Conservation and Domestic Allotment Act 1-18

Acreage allotments and normal yields i 7-9

Appropriations for fiscal years 1956-57, see also Appropriation Act,

1956-57 fiscal years 206

Availability of funds 13

Conservation materials and services 7

Naval Stores Conservation program 13

Payments or grants of aid 5-15

Policies and purposes 1,3

Scope of Act 18

State plans 4-5
270 INDEX

Soil Conservation Service: ' Page

Establishment, powers and duties 2

Authority to sell supplies, materials, and equipment to other Government activities- . -. , 3

Soil-depleting practices. /See Practices,

Soybeans, price support on 157

Special deposit account 80

Peanuts . . 74

Tobacco __ ___ _> 40

State, defined 18, 25

State committee 6-7

State plans 4-5

Statistics, latest available to be used 31

Statistics, use of official . 119

Steagall amendment. >« . 150

Stockpile:

Exclusion from carryover 169

Payment for transfer to . 170

Transfer of bartered commodities to 143, 182

Transfer of set-aside to 169

Stockpiling of agricultural products 180

Storage amount:

Corn ^ . 42

Rice . 69

Wheat „->.-.- 49-50

Strategic and Critical Materials Stock Piling Act-__ 143, 169, 182

Strategic materials:

Appropriation for research 209, 213

Barter for 143, 195-196

Entry free of duty _.. . 182

Purchase by other agencies 196

Purchase under Public Law 480 193

Transfer to stockpile 143,169, 193

Transfer to supplemental stockpile 182, 193

Strategic stockpiling of agricultural commodities 180

Sugar Act of 1948:

Appropriation authorization 132

Appropriations for fiscal years 1956-57. See Appropriations.

Civil penalties for violation of Act 133

Definitions—

Direct-consumption sugar.. 117

Including, include 118

Liquid sugar ^ 117

Manufactured sugar ..._ 136

Manufacturer 136

Person . 117,136

Producer 118

Quota , ___-.._ 118

Raw sugar , 117

Raw value \.: 118

Secretary 119

Sugar 117

Sugars ^._ . 117

Total sugar content 118

Total sugars 136

United States. 136

District attorneys of United States to enforce 132

Effective date of Act ._ 134

Expenditures by Secretary 132

Finality of determinations... 131

Fines and forfeitures 133

Information to be furnished Secretary. 133

Investments and business interests by ofíicials prohibited 133

Jurisdiction of courts 123-124, 132

National economic or other emergency, existence of, as basis for suspending quotas 133
INDEX 271

Sugar Act of 1948—Continued I'age

Payments—

Abandonment of planted acreage, as basis for 130

Adherent planters 130

Application for , 131

Appropriation authorization for ,__ 132

Areas in which payment provisions applicable 131

Base rate of payment 130

Calculation of .__ 130

Compliance with provisions relating to—_

Child labor 128

Proportionate share for farm 129

Wages and wage rates 129

Conditions in respect to 128-129

Crop deficiencies of harvested acreage, as basis for 130

Death, disappearance or incompetency 131

Designation of payee by producers-.. 131

Establishment of proportionate shares for farms 129

Farm, to be defined by Secretary. 129

Finality of determination with respect to 131

New and small producers 129-130

Tenants and sharecroppers 129-130

Utilization of local committees and other agencies 131

Proportionate shares , 131

Quotas:

Allotments of quotas or prorations—

Appeal of allotment-— 124

Basis for allotments 123

Hearings 123

Area quotas—

Cuba. 120

Domestic beet sugar 120

Mainland cane sugar 120

Hawaii 120

Other foreign countries 120

Puerto Rico 120

Republic of Philippines... _ . 120

Virgin Islands 120

Consumption estimates, determination of, for—

Continental United States ^ 119

Hawaii and Puerto Rico 119

Deficits, proration of quota 119-120

Entry of Virgin Islands duty-free sugar... 127

Exemptions from quota provisions 127

Exportation of sugar from United States—

Credit to country of origin 127

Entry of sugar under bond 127

Expressed in terms of raw value 127

Filling quotas with direct-consumption sugar—

Cuba.. 125-126

Hawaii 126

Other foreign countries . 126

Puerto Rico 125

Republic of the Philippines 125

Virgin Islands 125

Suspension of direct-consumption portions of quotas 126

Liquid sugar, inclusion in determinations 126

Liquid sugar quotas—

Cuba 126

Dominican Republic 126

British West Indies 126

Local consumption quotas for Hawaii and Puerto Rico 126

Prohibited acts 126

Secretary to establish or revise existing quotas 119

Regulations, determinations and orders, issuance by Secretary 132

Publication in Federal Register 132

Surveys and investigations 134

Information on individual operations confidential 134
272 INDEX

Sugar Act of 1948—Continued Page

Suspension of quotas I33

Taxes, excise (provisions of Internal Revenue Code)—

Applicability of other laws 136

Collection 136

Definitions 136

Distillation lililí 137

Effective date of law llllll 134

Exemption H 136

Exportation "~ 137

Filing of return and payment of tax III" 137

Import compensating tax I35

Interest added for nonpayment 135

Investments and business interests by officials prohibited __ 138

Livestock feed 137

Manufactured sugar 136

Filing return and payment I 136

Personal consumption.» ; I35

Manufacturers 136

Payment district where payable 135

Rate, manufactured sugar 135

Refunds 137

Rules and regulations as to collection 134

Termination of Sugar Act 134

Supplemental stockpile:

Transfer of bartered commodities to 182, 193

Purchase for, under Public Law 480 193

Reimbursement to CCC 182

Supply:

Normal—

Corn, cotton, peanuts, rice, tobacco, wheat 28

Nonbasic commodity 164

Reserve level, corn and tobacco _ 30-

TotalCorn, peanuts, rice, wheat . 31

Cotton.. 31

Nonbasic commodity . 164

Tobacco. 31

Surplus commodities, disposition of _. 180

Surplus disposal, CCC ^ 180, 191, 195, 196

Appointment of administrator . 182

Legislative directive 180

Report to Congress ._ 180

Surveys and investigations 1, 12, 22, 108, 133

Suspension of quotas. See Termination of quotas.

Tariff Act of 1930 127, 236

Tariff Commission, United States 235,238

Taxation. See Federal Crop Insurance Act and Sugar Act of 1948.

Tenants. See Landlords, tenants, or sharecroppers.

Ten-thousand-dollar limitation on payments 12

Termination or suspension of quotas 35

Territorial application of acts:

Soil Bank Act 102

Soil Conservation and Domestic Allotment Act . .18

Sugar Act of 1948 131

Tobacco:

Acreage allotments and marketing quotas—

Appeal relating to farm quota and allotment, see also Review of

farm marketing quota and acreage allotment 77

Definitions—

Carryover 26

Market, marketed, for market 27

Marketing year 28

Normal supply ... 28

Normal year's domestic consumption 28

Normal year's exports 29

Parity 22

Reserve supply level. 30
INDEX 273

Tobacco—Continued ^^^^

Acreage allotments and marketing quotas—Continued

Definitions—Continued

Tobacco 30

Totalsupply - 31

Diverted acreage 35

Farm acreage allotments—

Apportionment of State allotment to old farms ^___ 35-39

Farms acquired for national-defense purposes 38

Increases in, for small farms. _ _ 37-39

Increases in, for types in short supply 38-39

Minimum, for Burley farms 35

New farms 37-39

Notice of farm acreage allotment _ 77

Reduction in, for violation 38-39

Farm marketing quotas—

Amount of farm quota when farm allotments established 38-39

Apportionment of State quota to old tobacco farms 35-38

Increase in, for small farms 37-39

Increase in, for types in short supply 38-39

Increase or termination ; 79

New farms 37-39

Notice of farm marketing quota 77

Transfer of 38-39

Identification of marketings 39-40

Legislative finding 32

National marketing quota—

Amount of 33

Apportionment to States — 35

Increase in, under specified conditions._ _ 35

Reserve for new and small farms 35

When proclaimed 33

Penalties, penalty—

Carryover tobacco 40

Deposit of penalties 40, 80

Disposing of excess tobacco to avoid 40

Exemption of tobacco marketed by experiment stations 80

Failure to account for disposition of tobacco 40

False identification 40

Marketings outside United States 40

Marketings prior to beginning of marketing year 40

Marketings subject to penalty 40

Misuse of marketing card 40

Payment of, by buyer, warehouseman, agent . —_— 40

Rate of penalty 40

Refund of penalty 40, 80

Proclamations 33, 79

Referendum—

Effect of results 34

Eligible voters- 34

Notice of farm quota and allotment mailed prior to

referendum 77

Proclamation of results 34

When conducted 34

Regulations, issuance by Secretary 82

Reports and records 80

Data confidential 80

Review of farm quota and allotment, see also Review of farm

marketing quota and acreage allotment 77

State acreage allotment—

Apportionment to old farms 35

Conversion of State quota to 35

State marketing quota—

Apportionment to old farms 35

Conversion of, to State acreage allotment 36

Minimum, for flue-cured tobacco 37

Reserve for new and small farms 36-37

State poundage allotment 38
274 INDEX

Tobacco—Continued Page

Legislative finding 32

Loans. Sfie Price support.

Parity payments« _ 32

Total supply. See Supply.

Transfer of quotas:

Tobacco _ 35

Wheat _.__ ~ 53

unfriendly Nations IIIII 196

united States, definition of I 25

Utilization of State and local agencies _ 4, 6-7, 13, 88, Í08,~Í31, 146

Vendors of conservation materials and services 7

Voluntary action by producers for land conservation . I 3

Voluntary relief agencies, use of 195

Wage rates, sugar _ 128

War crops and service, effect on acreage allotments 8, 45, 55, 57

Water conservation 6

Wheat:

Acreage allotments and marketing quotas—

Acreage allotments under Soil Conservation and Domestic

Allotment Act 8-9

Appeal relating to farm quota and allotment, see also Review of

farm marketing quota and acreage allotment.— _ 77

County acreage allotments—

Apportionment to old farms 47

Reserve for new farms 45

Definitions—

Actual production.- 26

Carryover 26

Farm marketing excess . 50

Market, marketed, for market _ 27

Marketing year 28

National average yield _ _. 28

Normal production 28

Normal supply 28

Normal year's domestic consumption . 28

Normal year's exports _- 29

Normal yield, county and farm ._ 29

Total supply _ 31

Farm acreage allotments—

Apportionment of county allotment to old farms 45

Farms acquired for national defense purposes 46

New farms 46

Notice of farm acreage allotment 77

Farm marketing excess—

Adjustment in amount of 50-51

Application for adjustment of stored amount 50-51

Christmas amendment 52

Definition of 50

Disposition of wheat delivered to Secretary 51

Failure to deliver or store 51

Nonallotment farms 51-52

Producer subject to penalty on 50

Reduction of stored amount by underplanting or producing

subnormal crop 51

Regarded as available for marketing 49

Regulations governing delivery or storage 50

Farm marketing quotas—

Amount of farm quota 49

Effect of termination 43

Exemption of farms producing less than 200 bushels 52

Exemption of farms planting 15 acres or less 5l

Increase or termination 52

Notice of farm marketing quota 77

Transfer of quotas 53

Identification of marketings _. 81
INDEX 275

Wheat—Continued Pas«

Acreage allotments and marketing quotas—Continued

Legislative findings 44

Measurement of farms 81

National acreage allotment—

Amount of 45

Apportionment to States 45

Minimum, for any year 45

National marketing quota—

Amount of 49

Conditions requiring proclamation of 49

Increase or termination 52, 79

When proclaimed 45

Penalties, penalty—

Application for adjustment of 50-52

Buyer to collect and pay 51

Depletion of stored excess wheat 51

Exemption of nonallotment farms 51

Exemption of wheat marketed by experiment stations. 80

Lien for, on entire crop 51

Marketings subject to, until excess stored or delivered 51

Nonallotment farms 51

Payment of, upon failure to deliver or store excess wheat 51

Producer subject to penalty 49-50

Rate of penalty 50

Refund of penalty.» -_- - __ __ 50,80

When due 50

Proclamations—

National acreage allotment 45

National marketing quota 49

Normal supply and total supply 45

Referendum results 52

Referendum—

Effect of results... 52

Eligible voters „ 52

Notice of farm quota and allotment mailed prior to .. 77

Proclamation of results . _ 52

When conducted 52

Regulations, issuance by Secretary 82

Reports and records . 80-81

Data confidential \ 81

Review of farm quota and allotment, see also Review of farm

marketing quota and acreage allotment 77-79

State acreage allotments 45

Apportionment to counties 46

War crops and service, credit for^ 46

Loans. See Price support.

Parity payments 31

Set-aside. 168

Wool:

Advertising and sales promotion programs 173

Congressional policy 171

Disposition in case of death, incompetency 172

Marketing year 173

Payments 172

Price support 171

Yield:

National average, cotton and wheat 28

Normal—

Corn 9,29

Cotton 29

Peanuts 29

Rice 29

Wheat 9,29

tf. S. GOVERNMENT PRINTING OFFICE« 1957