No Net Cost Tobacco Program Act of 1982
PL 97-218 (H.R.6590), enacted 07/20/1982

PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 197 
Public Law 97-218 
97th Congress 
An Act 
To provide for the operation of the tobacco price support and production adjustment 
program in such a manner as to result in no net cost to taxpayers, to limit 
increases in the support price for tobacco, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "No Net Cost Tobacco 
Program Act of 1982". 
FINDINGS 
SEC. 2. Congress finds that— 
(1) in order to implement the intent of Congress, as expressed 
in the Agriculture and Food Act of 1981, that the tobacco price 
support and production adjustment program be carried out at 
no net cost to the taxpayer, other than administrative expenses 
common to the operation of all price support programs, it is 
necessary that producers of quota tobacco share equitably in 
l>elping to eliminate losses which may be incurred in carrying 
out the program; 
(2) producers of quota tobacco should be required, as a condi-
tion of receiving the benefits of price support for their tobacco, 
to contribute to a capital account to be established by each 
producer-owned marketing association through which price sup-
port advances are made available to producers; and 
(3) the account so established should be used by the associ-
ations exclusively for the purpose of achieving a no net cost 
tobacco program. 
TITLE I—MODIFICATION OF TOBACCO PRICE SUPPORT 
PROGRAM 
PRODUCER CONTRIBUTIONS TO NO NET COST TOBACCO FUND 
SEC. 101. Effective for the 1982 and subsequent crops of tobacco, 
the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is amended by 
inserting, following section 106, a new section 106A as follows: 
July 20, 1982 
[H.R. 6590] 
No Net Cost 
Tobacco 
Program 
Act of 1982. 
7 u s e 1281 note. 
7 u s e 1445-1 
note. 
7 u s e 1281 note. 
PRODUCER CONTRIBUTIONS TO NO NET COST TOBACCO FUND 
"SEC. 106A. (a) As used in the section— 
"(1) the term 'association' means a producer-owned coopera-
tive marketing association which has entered into a loan agree-
ment with the Corporation to make price support available to 
producers; 
Definitions. 
7 u s e 1445-1. 
96 STAT. 198 
PUBLIC LAW 97-218—JULY 20, 1982 
"(2) the term 'Corporation' means the Commodity Credit 
Corporation, an agency and instrumentaUty of the United 
States within the Department of Ajgriculture through which the 
Secretaiy makes price support available to producers; 
"(3) the term 'Fund' means the capital account to be estab-
lished within each association, which account shall be known as 
the 'No Net Cost Tobacco Fund'; 
"(4) the term 'to market' means to dispose of quota tobacco by 
voluntary or involuntary sale, barter, exchange, gift inter vivos, 
or consigning the tobacco to an association for a price support 
advance; 
"(5) the term 'net gains* means the amount by which total 
proceeds obtained from the sale by an association of a crop of 
quota tobacco pledged to the Corporation for price support loan 
exceeds the principal amount of the price support loan made by 
the Corporation to the association on such crop, plus interest 
and charges; and 
"(6) the term 'quota tobacco' means any kind of tobacco for 
which marketing quotas are in effect or for which marketing 
quotas are not disapproved by producei-s. 
Loan advances. 
"(b) The Secretary may carry out the tobacco price support pro-
gram through the Corporation and shall, except as otherwise pro-
vided by this section, continue to make price support available to 
producers through loans to associations that, under agreements with 
the Corporation, agree to make loan advances to producers. 
Fund, establish- 
"(c) Each association shall establish within the association a Fund. 
^^^^- 
The Fund shall be comprised of amounts contributed by producer-
members as provided in subsection (d). 
Price support 
"(d) The Secretary shall— 
eligibility. 
"(1) require— 
"(A) that— 
"(i) as a condition of eligibility for price support, each 
producer of each kind of quota tobacco (other than 
Burley quota tobacco with respect to the 1983 and 
subsequent crops) shall agree, with respect to all such 
kind of quota tobacco marketed by the producer from a 
farm, to contribute to the appropriate association, for 
deposit in the association's Fund, an amount deter-
mined from time to time by the association with the 
approval of the Secretary; and 
(ii) as a condition of eligibility for price support for 
any marketing year of any three-year period for which 
marketing quotas are in effect (other than the period 
applicable to the 1982 crop), each producer of Burley 
quota tobacco shall agree, not later than a date estab-
lished by the Secretary preceding the beginning of the 
first marketing year of such three-year period (or, in 
the case of a producer of Burley quota tobacco on a new 
farm or a producer of Burley quota tobacco succeeding 
another producer on a farm, before the beginning of 
the marketing year in which such new producer or 
such successor producer will first market Burley quota 
tobacco from the farm involved), to contribute in each 
of the marketing years in such three-year period (or, in 
the case of such new producer or such successor pro-
ducer, any remaining marketing year in such three-
year period), with respect to all Burley quota tobacco 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 199 
marketed by the producer, to the appropriate associ-
ation, for deposit in the association's Fund, an amount 
determined from time to time by the association with 
the approval of the Secretary; and 
"(B) that, upon making a contribution under subpara-
graph (A)— 
"(i) in the case of quota tobacco marketed other than 
by consignment to an association for a price support 
advance, the producer shall receive from the associ-
ation capital stock or, if the association does not issue 
such stock, a capital certificate having a par value or 
face amount, respectively, equal to the contribution; 
and 
"(ii) in the case of quota tobacco consigned by the 
producer to an association for a price support advance, 
the producer shall receive from the association a quali-
fied per unit retain certificate, as defined in section 
1388(h) of the Internal Revenue Code, having a face 
amount equal to the amount of the contribution and 
representing an interest in the association's Fund. 
The Secretary shall approve the amount of the contributions 
determined by an association from time to time under this 
paragraph only if the Secretary determines that such amount 
will result in accumulation of a Fund adequate to reimburse the 
Corporation for any net losses which the Corporation may 
sustain under its loan agreements with the association, based on 
reasonable estimates of the amounts which the Corporation will 
lend to the association under such agreements and the proceeds 
which will be realized from the sales of tobacco which are 
pledged to the Corporation by the association as security for 
loans; 
"(2) effective for the 1983 and subsequent crops, require that 
each owner and operator of any farm who, in conformity with 
the provisions of subtitle B, part I, of the Agricultural Adjust-
ment Act of 1938, leases all or any part of an acreage allotment 
or marketing quota for Flue-cured tobacco to make contribu-
tions, for deposit into the Fund established by the association 
which, under a loan agreement with the Corporation, makes 
price support available to producers of Flue-cured tobacco. The 
amount of such contribution for the quantity of tobacco of each 
crop represented by such lease shall be the same amount as the 
contribution for producers of Flue-cured tobacco of such crop 
determined and approved under paragraph (1). The Secretary 
shall require that such association, upon receiving such contri-
bution, issue to such owner and operator capital stock or, if the 
association does not issue such stock, a capital certificate 
having a par value or face amount, respectively, equal to the 
contribution; 
"(3) require that the Fund established by each association 
shall be kept and maintained separate from all other accounts 
of the association and shall be used exclusively, as prescribed by 
the Secretary, for the purpose of ensuring, insofar as practica-
ble, that the Corporation, under its loan agreements with the 
association with respect to 1982 and subsequent crops of quota 
tobacco, will suffer no net losses (including, but not limited to, 
recovery of the amount of loans extended to cover the overhead 
Capital stock 
or capital 
certificate. 
26 u s e 1388. 
Acreage 
allotment 
and marketing 
quota leases. 
7 u s e 1311. 
Capital stock 
or capital 
certificate. 
96 STAT. 200 
PUBLIC LAW 97-218—JULY 20, 1982 
Capital or net 
gain distri-
bution. 
Agreement, 
termination. 
15 u s e 714 note. 
Regulations. 
costs of the association), after any net gains are applied to net 
losses of the corporation under paragraph (5); 
"(4) permit an association to invest the monies in the Fund in 
such manner as the Secretary may approve, and require that 
the interest or other earnings on such investment shall become 
a part of the Fund; 
"(5) require that loan agreements between the Corporation 
and the association provide that the Corporation shall retain 
the net gains from each of the 1982 and subsequent crops of 
tobacco pledged by the association as security for price support 
loans, and that such net gains will be used for the purpose of (A) 
offsetting any losses sustained by the Corporation under its loan 
agreements with the association for any of the 1982 and subse-
quent crops of loan tobacco, or (B) reducing the outstanding 
balance of any price support loan made by the Corporation to 
the association under such agreements for 1982 and subsequent 
crops of tobacco, or for both such purposes; and 
"(6) provide, in loan agreements between the Corporation and 
an association, that if the Secretary determines that the 
amount in the Fund or the net gains referred to in paragraph (5) 
exceed the amounts necessary for the purposes specified in this 
section, such excess (A) in the case of an association making 
price support available to producers of quota tobacco other than 
Burley tobacco, will be released to the association by the Corpo-
ration and may be devoted to other purposes by the association, 
and (B) in the case of an association making price support 
available to producers of Burley quota tobacco, will be released 
to the association by the Corporation and may be distributed, as 
determined by the association, to the producer-members of the 
association as a capital distribution or net gain distribution. 
"(e) If any association which has entered into a loan agreement 
with the Corporation with respect to 1982 or subsequent crops of 
quota tobacco fails or refuses to comply with the provisions of this 
section, the regulations issued by the Secretary thereunder, or the 
terms of such agreement, the Secretary may terminate such agree-
ment or provide that no additional loan funds may be made avail-
able thereunder to the association. In such event, the Secretary 
shall make price support available to producers of the kind or kinds 
of tobacco, the price of which had been supported through loans to 
such association, through such other means as are authorized by 
this Act or the Commodity Credit Corporation Charter Act. 
"(f) If, under subsection (e), a loan agreement with an association 
is terminated, or if an association having a loan agreement with the 
Corporation is dissolved, merges with another association, or other-
wise ceases to operate, the Fund or the net gains referred to in 
subsection (d)(5) shall be applied or disposed of in such manner as 
the Secretary may approve or prescribe, except that they shall, to 
the extent necessary, first be applied or used for the purposes 
therefor prescribed in this section. 
"(g) The Secretary shall issue regulations necessary to carry out 
the provisions of this section.". 
ADJUSTMENT 
OF 
PRICE 
SUPPORT 
LEVEL 
OF 
TOBACCO 
SEC. 102. Effective for the 1982 and subsequent crops of tobacco, 
section 106 of the Agricultural Act of 1949 (7 U.S.C. 1445) is 
amended by adding at the end thereof new subsection (d) as follows: 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 201 
"(d) Notwithstanding the provisions of section 403, if the Secretary 
'
^ use 1423. 
determines that the supply of any grade of any kind of tobacco of a 
crop for which marketing quotas are in effect or are not disapproved 
by producers will likely be excessive, the Secretary, after prior 
consultation with the association through which price support for 
the grade and kind of tobacco is made available to producers, may 
reduce the support rate which would otherwise be established for 
such grade of tobacco after taking into consideration the effect such 
reduction may have on the supply and price of other grades of other 
kinds of quota tobacco: Provided, That the weighted average of the 
support rates for all eligible grades of such kind of tobacco shall, 
after such reduction, reflect not less than (1) 65 per centum of the 
increase in the support level for such kind of tobacco which would 
otherwise be established under this section, if the support level 
therefor is higher then the support level for the preceding crop, or 
(2) the support level for such kind of tobacco established under this 
section, if the support level therefor is not higher than the support 
level for the preceding crop. In determining whether the supply of 
any grade of any kind of tobacco of a crop will be excessive, the 
Secretary shall take into consideration the domestic supply, includ-
ing domestic inventories, the amount of such tobacco pledged as 
security for price support loans, and anticipated domestic and 
export demand, based on the maturity, uniformity and stalk position 
of such tobacco.". 
PENALTIES FOR MARKETING TOBACCO IN EXCESS OF MARKETING QUOTA 
AND FOR MARKETING CERTAIN TOBACCO THAT IS NOT EUGIBLE FOR 
PRICE SUPPORT 
SEC. 103. Effective for the 1983 and subsequent crops of tobacco, 
section 314 of the Agricultural Adjustment Act of 1938 is amended 
7 USC 1314. 
by amending the first sentence of subsection (a) to read as follows: 
"The marketing of (1) any kind of tobacco in excess of the marketing 
quota for the farm on which the tobacco is produced, or (2) any kind 
of tobacco that is not eligible for price support under the Agricul-
tural Act of 1949 because a producer on the farm has not agreed to 7 USC 1421 note. 
make contributions or pay assessments to the No Net Cost Tobacco 
Fund or the No Net Cost Tobacco Account as required by sections 
106A(d)(l) and 106(B)(d)(l) of that Act, if marketing quotas for that 
Ante, p. 197. 
kind of tobacco are in effect, shall be subject to a penalty of 75 per 
centum of the average market price (calculated to the nearest whole 
cent) for such kind of tobacco for the immediately preceding market-
ing year.". 
TITLE II—MODIFICATION OF FLUE-CURED TOBACCO 
MARKETING QUOTA SYSTEM 
LEASE AND SALE OF FLUE-CURED TOBACCO ACREAGE ALLOTMENTS AND 
MARKETING QUOTAS 
SEC. 201. (a) Section 316(a) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1314b(a)) is amended by— 
(1) inserting "(1)" after "(a)"; 
(2) inserting "shall permit the owner of any farm to which a 
Flue-cured tobacco acreage allotment or quota is assigned under 
this Act and" after "program,"; 
96 STAT. 202 
PUBLIC LAW 97-218—JULY 20, 1982 
Lease or 
transfer, 
filing with 
county 
committee. 
(3) inserting "Flue-cured," after "Burley,"; 
(4) inserting a comma before "to lease"; 
(5) adding at the end thereof the following new paragraph: 
"(2)(A) No legise of any Flue-cured tobacco allotment or quota 
assigned to a farm may be filed under subsection (c) of this section 
after June 15 of the crop year specified in such lease, except that the 
Secretary may allow a lease to be so filed after June 15 of such crop 
year if the Secretary determines that, as a result of flood, hail, wind, 
tornado, or other natural disaster— 
"(i) the county in which such farm is located has suffered a 
loss of not less than 10 per centum of the acreage of Flue-cured 
tobacco planted for harvest in such crop year; 
"(ii) the lessor involved has suffered a loss of not less than 10 
per centum of the acreage of Flue-cured tobacco planted for 
harvest on such farm in such crop year; and 
"(iii) such lease will not impair the effective operation of the 
tobacco marketing quota or price support program. 
If the Secretary makes such determination, then the Secretary may 
permit the lessor to lease all or any part of such allotment or quota 
to any other owner or operator of a farm in the same county or in an 
adjoining county within the same State for use in such county on a 
farm having a current Flue-cured tobacco allotment or quota. If 
permitted, such lease and transfer shall not be effective until a copy 
of such lease and a written statement described in subsection (c) of 
this section are filed with and determined by the county committee 
of such county to be in compliance with the provisions of this 
section. 
"(B) No agreement or arrangement may be made in connection 
with the making of any lease with respect to any Flue-cured tobacco 
allotment or quota under paragraph (1) of this subsection except— 
"(i) between the lessor and lessee; or 
"(ii) between the lessor or lessee and any attorney, trustee, 
bank, or other agent or representative, who regularly repre-
sents the lessor or lessee, as the case may be, in business 
transactions unrelated to the production or marketing of 
tobacco. 
"(C) No sublease or other transfer of such allotment or quota may 
be made by such lessee during the period of such lease."; and 
(6) amending the section heading for such section to read as 
follows: 
Lease or trans-
fer, filing 
with county 
committee. 
LEASE 
OR 
SALE 
OF 
ACREAGE 
ALLOTMENTS 
. 
(b) Section 316(c) of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1314b(c)) is amended by— 
(1) in the first sentence— 
(A) inserting "or sale and transfer" after "lease and 
transfer"; and 
(B) striking out "such lease" and inserting in lieu thereof 
"the lease or sale agreement, as the case may be,"; 
(2) striking out the second sentence and inserting in lieu 
thereof the following: "In the case of a lease and transfer of any 
Flue-cured tobacco allotment or quota for use with respect to 
any crop, such lease shall not be effective until, in addition to a 
copy of such lease, the lessor and lessee involved each file with 
such county committee a written statement certifying such 
compliance. If, after notice and an opportunity for a hearing. 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 203 
such county committee determines that such lessee knowingly 
made a false statement in such written statement, then such 
lessee shall be ineligible for price support for such crop under 
the Agricultural Act of 1949 with respect to the poundage of 
tobacco produced under such allotment or quota or, if such 
determination is made after such lessee received such price 
support, the Secretary, taking into consideration the recommen-
dation of such county committee and the amount of such pound-
age, shall reduce appropriately the poundage for which such 
lessee may receive price support with respect to the crop first 
marketed after such determination is made. If, after notice and 
an opportunity for a hearing, such county committee deter-
mines that such lessor knowingly made a false statement in 
such written statement, then the Flue-cured allotment or quota 
next established for the farm of such lessor shall be reduced by 
that percentage which the leased allotment or quota was of the 
respective Flue-cured marketing quota. Notice of any determi-
nation made by a county committee under the preceding provi-
sions shall be mailed, as soon as practicable, to the lessee or the 
lessor involved. If such lessee or such lessor is dissatisfied with 
such determination, then such lessee or such lessor may 
request, within fifteen days after notice of such determination is 
so mailed, a review of such determination by a local review 
committee under section 363 of this Act."; and 
(3) in the third sentence (as in effect before the amendment 
made by paragraph (2)) by— 
(A) inserting "by lease or sale" after "transferred"; and 
(B) striking out "lease and". 
(c) Section 316(e) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314b(e)) is amended by— 
(1) inserting "(1)" after "(e)"; 
(2) inserting "or sale" after "lease"; 
(3) inserting "or, in the case of Flue-cured tobacco, of the 
acreage of tillable cropland (as defined in paragraph (2)) in the 
farm" before the colon; and 
(4) adding at the end thereof the following new paragraph: 
"(2) For purposes of this section, the term 'tillable cropland' 
means cleared land that can be planted to crops without unusual 
cultivation or other preparation.". 
(d) Section 316 of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314b) is amended by striking out subsections (g), (h), and 
(i) and inserting in lieu thereof the following new subsections: 
"(gXD The Secretary shall permit the owner of any farm to which 
a Flue-cured tobacco allotment or quota is assigned to sell, for use on 
another farm in the same county, all or any part of such allotment 
or quota to any person who is or intends to become an active Flue-
cured tobacco producer. For purposes of this section, the term 'active 
Flue-cured tobacco producer' means any person who shared in the 
risk of producing a crop of Flue-cured tobacco in not less than one of 
the three years preceding the year involved, or any person who 
certifies to the Secretary, in such form and manner as the Secretary 
shall by regulation prescribe, his or her intent to become a Flue-
cured tobacco producer. 
"(2) For purposes of this section, a person shall be considered to 
have shared in the risk of producing a crop of Flue-cured tobacco 
if— 
7 u s e 1421 note. 
Review. 
7 u s e 1363. 
"Tillable 
cropland." 
Allotment or 
quota, sale. 
"Active Flue-
cured tobacco 
producer." 
96 STAT. 204 
PUBLIC LAW 97-218—JULY 20, 1982 
Noncompliance, 
penalty. 
Review. 
7 use 1363. 
"(A) the investment of such person in the production of such 
crop is not less than 20 per centum of the proceeds of the sale of 
such crop; 
"(B) the amount of such person's return on such investment is 
dependent solely on the sale price of such crop; and 
"(C) such person may not receive any of such return before 
the sale of such crop. 
Any person who owns any Flue-cured tobacco allotment or quota 
and leases such allotment or quota to another person for use in 
producing a crop shall be considered to have shared in the risk of 
producing such crop if, under the terms of such lease, subparagraphs 
(B) and (C) of this paragraph are satisfied with regard to such owner. 
"(h)(1) Any person who— 
"(A) acquires any Flue-cured tobacco acreage allotment or 
quota by purchase under subsection (g) of this section; and 
"(B) with respect to any crop of Flue-cured tobacco planted 
after the date of such acquisition, fails to share in the risk of 
producing tobacco under such allotment or quota in the manner 
specified in subsection (g)(2) of this section; 
shall sell such allotment or quota before the expiration of the 
eighteen-month period beginning on July 1 of the year in which 
such crop is planted, or such allotment or quota shall be subject to 
forfeiture under the procedure specified in paragraph (3) of this 
subsection. 
"(2) Any person who— 
"(A) acquires any Flue-cured tobacco acreage allotment or 
quota by purchase under subsection (g) of this section; and 
"(B) disposes of an acreage of tillable cropland (as defined in 
subsection (e)(2) of this section) which results in the total acre-
age of Flue-cured tobacco allotted to such person's farm exceed-
ing 50 per centum of the tillable cropland owned by such person; 
shgill, before July 1 of the year after the year of such disposal, take 
steps which will result in the total acreage of Flue-cured tobacco 
allotted to such farm not exceeding 50 per centum of the tillable 
cropland owned by such person. If such person fails to take such 
steps, then any such excess allotment or quota shall be subject to 
forfeiture under the procedure specified in paragraph (3) of this 
subsection. 
"(3)(A) If, after notice and an opportunity for a hearing, the 
appropriate county committee determines that any person know-
ingly failed to comply with paragraph (1) or (2) of this subsection, 
then such person shall forfeit to the Secretary the allotment or quota 
specified in such paragraph. Any allotment or quota so forfeited 
siiEill be reallocated by such county committee for use by active Flue-
cured tobacco producers (as defined in subsection (g)(1) of this 
section) in the county involved. 
"(B) Notice of such determination shall be mailed, as soon as 
practicable, to such person. If such person is dissatisfied with such 
determination, then such person may request, within fifteen days 
after notice of such determination is so mailed, a review of such 
determination by a local review committee under section 363 of this 
Act.". 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 205 
MANDATORY 
SALE 
OP 
CERTAIN 
FLUE-CURED 
TOBACCO 
ACREAGE 
ALLOTMENTS AND MARKETING QUOTAS HELD BEFORE ENACTMENT 
SEC 202. The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 
et seq.) is amended by inserting after section 316, a new section 
316A, as follows: 
MANDATORY SALE OF CERTAIN FLUE-CURED TOBACCO ACREAGE 
ALLOTMENTS AND MARKETING QUOTAS 
"SEC. 316A. (a) Any person (including, but not limited to, any 7 use I3i4b-i. 
governmental entity, public utility, educational institution, or reli-
gious institution, but not including any individual) which, on or 
after the date of the enactment of this section— 
"(1) owns a farm for which a Flue-cured acreage allotment or 
marketing quota is established under this Act; and 
"(2) is not significantly involved in the management or use of 
land for agricultural purposes; 
shall sell such allotment or quota in accordance with section 316(g) 
of this Act not later than December 1, 1983, or December 1 of the Ante, p. 203. 
year after the year in which the farm is acquired, whichever is later, 
or shall forfeit such allotment or quota under the procedure speci-
fied in subsection (c). 
"(b) Any person (including, but not limited to, any governmental 
entity, public utility, educational institution, or religious institution) 
who, on or after December 1, 1983, owns a farm for which the total 
acreage alloted for the production of Flue-cured tobacco under this 
Act exceeds 50 per centum of such farm's tillable cropland, as 
defined in section 316(eX2) of this Act, shall forfeit any acreage Ante, p. 203. 
allotment or marketing quota representing the excess under the 
procedure specified in subsection (c). In the case of any person who 
acquires a farm after December 1, 1983, the acreage allotment or 
marketing quota representing the excess shall not be subject to 
forfeiture until July 1 of the year after the year of acquisition. 
"(cXl) If, after notice and an opportunity for a hearing, the 
appropriate county committee determines that any person know-
ingly failed to comply with subsection (a) or (b), then the allotment 
or quota specified in such subsection shall be forfeited and shall be 
reallocated in the manner provided for in section 316(h)(3)(A) of this 
Act. 
"(2) Notice of such determination shall be mailed, as soon as 
practicable, to such person. If such person is dissatisfied with such Review. 
determination, then such person, within fifteen days after notice of 
such determination is so mailed, may request review of such deter-
mination under section 363 of this Act.". 
7 use 1863. 
Noncompliance, 
penalty. 
Ante, p. 203. 
PERIODIC ADJUSTMENT OF YIELD FACTOR FOR FLUE-CURED ACREAGE-
POUNDAGE QUOTAS 
SEC. 203. Section 317(a) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1314c) is amended by— 
(1) adding at the end of paragraph (2) the following: "Notwith-
standing the preceding sentence, in 1983, and at five-year inter-
vals thereafter, the national average yield goal for Flue-cured 
tobacco shall be adjusted by the Secretary to the past five years' 
moving national average yield."; 
96 STAT. 206 
PUBLIC LAW 97-218—JULY 20, 1982 
(2) adding at the end of paragraph (4) the following: "Notwith-
standing the preceding provisions of this subsection, in 1983, 
and at five-year intervals thereafter, farm acreage allotments 
for Flue-cured tobacco for farms in each county shall be 
adjusted by the Secretary to reflect the increases or decreases in 
the past five years' moving county average yield per acre, as 
determined by the Secretary on the basis of actual yields of 
farms in the county, or, if such information is not available, on 
such other data on yields as the Secretary may deem appropri-
ate."; and 
(3) adding at the end of paragraph (6)(A) the following: "Not-
withstanding the preceding provisions of this subsection, in 1983 
and at five-year intervals thereafter, preliminary farm yields 
for Flue-cured tobacco farms in each county shall be adjusted by 
the Secretary by the reciprocal of the factor computed in para-
graph (4) of this subsection to adjust farm acreage allotments to 
reflect increases or decreases in the past five years' moving 
county average yields.". 
EXEMPTION OP CERTAIN NONQUOTA TOBACCO FROM QUOTA 
RESTRICTIONS 
SEC. 204. Section 32003) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1314m))) is amended b y -
C
D striking out in paragraph (3) "and" at the end thereof; 
(2) striking out in paragraph (4) the period at the end thereof 
and inserting in lieu thereof "; and"; and 
(3) adding at the end thereof the following new paragraph: 
"(5) tobacco when it is nonquota tobacco and produced in a 
quota area in which the total of the acreage allotments for 
quota tobacco established for farms is less than twenty acres. 
7 use 1312. 
Notwithstanding the provisions of section 312(c) of this Act, 
producers of such nonquota tobacco shall not be eligible to vote 
in the first referendum for such nonquota tobacco conducted by 
the Secretary under such section after the effective date of this 
paragraph.". 
CONFORMING AMENDMENTS 
SEC. 205. (a) The fifth sentence of section 317(f) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1314c(f)) is amended by inserting 
"and sold" after "leased". 
(b) Section 703 of the Food and Agriculture Act of 1965 (7 U.S.C. 
1316) is amended by— 
(1) striking out "lease and" each place it appears; 
(2) striking out "lessee" each place it appears and inserting in 
lieu thereof transferee"; 
(3) striking out "lessor" each place it appears and inserting in 
lieu thereof transferor"; and 
(4) striking out "leased" each place it appears and inserting in 
lieu thereof transferred". 
LIEN FOR PAYMENT OF PENALTY; FALSE IDENTIFICATION OF TOBACCO 
SEC. 206. (a) Section 314 of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1314) is amended by adding a new subsection £is 
follows: 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 207 
"(c) Until the amount of the penalty provided by this section is 
paid, a lien on the tobacco with respect to which such penalty is 
incurred, and on any subsequent tobacco subject to marketing 
quotas in which the person liable for payment of the penalty has an 
interest, shall be in effect in favor of the United States for the 
amount of the penalty.". 
(b) Section 317 of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314c) is amended by adding a new subsection as follows: 
"(j) Notwithstanding any other provision of this section, if a 
producer falsely identifies tobacco as having been produced on or 
marketed from a farm, the quantity of tobacco so falsely identified 
shall be considered for purposes of establishing future farm market-
ing quotas, as having been produced on both the farm for which it 
was identified as having been produced and the farm of actual 
production, if known, or, as the case may be, shall be considered as 
actually marketed from the farm.", 
EFFECTIVE DATE 
SEC. 207. (a) Except as provided in subsection (b), this title shall 
take effect on the date of the enactment of this Act. 
(b) The amendments made by this title shall not apply to any lease 
of a Flue-cured tobacco acreage allotment or marketing quota 
entered into under the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1281 et seq.) before the date of the enactment of this Act. 
TITLE III—MISCELLANEOUS PROVISIONS RELATING TO 
BURLEY TOBACCO AND OTHER KINDS OF TOBACCO 
7 u s e 1314b 
note. 
MARKETING ASSESSMENTS TO NO NET COST TOBACCO ACCOUNT 
SEC. 301. Effective for the 1982 and subsequent crops of all kinds 
of tobacco except Flue-cured tobacco, the Agricultural Act of 1949 
(7 U.S.C. 1421 et seq.) is amended by inserting, following section 
106A (as added by section 101 of this Act), a new section 106B as 
follows: 
Ante, p. 197. 
MARKETING ASSESSMENTS TO NO NET COST TOBACCO ACCOUNT 
"SEC. 106B. (a) As used in this section— 
"(1) the term 'association' means a producer-owned coopera-
tive marketing association which has entered into a loan agree-
ment with the Corporation to make price support available to 
producers of a kind of tobacco, except that the term does not 
include such an association that has entered into such an 
agreement to make price support available to producers of Flue-
cured tobacco; 
"(2) the term 'Account' means an account established by and 
in the Corporation for an association, which account shall be 
known as the 'No Net Cost Tobacco Account'; 
"(3) the term 'to market' means to dispose of tobacco by 
voluntary or involuntary sale, barter, exchange, gift inter vivos, 
or consigning the tobacco to an association for a price support 
advance; 
"(4) the term 'net gains' means the amount by which total 
proceeds obtained from the sale by an association of a crop of a 
kind of tobacco pledged to the Corporation for price support 
Definitions. 
7 u s e 1445-2. 
96 STAT. 208 
PUBLIC LAW 97-218—JULY 20, 1982 
loan exceeds the principal amount of the price support loan 
made by the Corporation to the association on such crop, plus 
interest and charges; 
"(5) the term 'tobacco' means any kind of tobacco except Flue-
cured tobacco, as defined in section 301(bX15) of the Agricul-
tural Adjustment Act of 1938, for which marketing quotas are 
in effect or for which marketing quotas are not disapproved by 
producers; 
"(6) the term 'area', when used in connection with an associ-
ation, means the general geographical area in which farms of 
the producer-members of such association are located, as deter-
mined by the Secretary; and 
"(7) the term 'Corporation' shall have the meaning given to it 
Ante, p. 197. 
in section 106A(a)(2). 
"(b) Notwithstanding section 106A, the Secretary shall, upon the 
request of any association, and may, if the Secretary determines, 
after consultation with such association, that the accumulation of 
the No Net Cost Tobacco Fund for such association under section 
106A is, and is likely to remain, inadequate to reimburse the 
Corporation for net losses which the Corporation sustains under its 
loan agreement with such association— 
"(1) continue to make price support available to producers 
through such association in accordance with loan agreements 
entered into between the Corporation and such association; and 
No Net Cost 
"(2) establish and maintain in accordance with this section a 
Account 
^ ° ^®* ^°^* Tobacco Account for such association in lieu of the 
Establishment. 
No Net Cost Tobacco Fund established within such association 
under section 106A. 
"(c)(1) Any Account established for an association under subsec-
tion (b)(2) shall be established within the Corporation and shall be 
comprised of amounts paid by producers under subsection (d). 
"(2) Upon the establishment of an Account for an association, any 
amount in the No Net Cost Tobacco Fund established within such 
association under section 106A shall be applied or disposed of in 
such manner as the Secretary may approve or prescribe, except that 
such amount shall, to the extent necessary, first be applied or used 
for the purposes therefor prescribed in such section. 
"(d)(1) If an Account is established for an association under subsec-
tion (b)(2), then the Secretary shall require (in lieu of any require-
ment under section 106A(d)(l)) that each producer of the kind of 
tobacco involved whose farm is within such association's area shall, 
as a condition of eligibility for price support, agree, with respect to 
all of such kind of tobacco marketed by the producer from the farm, 
to pay to the Corporation, for deposit in such association's Account, 
marketing assessments as determined under paragraph (2) and 
collected under paragraph (3). 
"(2) For purposes of paragraph (1), the Secretary shall determine 
and adjust from time to time, in consultation with such association, 
the amount of the marketing assessment which shall be imposed, as 
a condition of eligibility for price support, on each pound of the kind 
of tobacco involved marketed by a producer from a farm within such 
association's area. Such amount shall be equal to an amount which, 
when collected, will result in an accumulation of an Account for 
such association adequate to reimburse the Corporation for any net 
losses which the Corporation may sustain under its loan agreements 
with such association, based on reasonable estimates of the amounts 
which the Corporation will lend to such association under such 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 209 
agreements and the proceeds which will be realized from the sales of 
the kind of tobacco involved which are pledged to the CJorporation by 
such association as security for loans. 
"(3)(A) Except as provided in subparagraph (B), any marketing 
assessment to be paid by a producer under paragraph (1) shall be 
collected from the person who acquired the tobacco involved from 
such producer but an amount equal to such assessment may be 
deducted by the purchaser from the price paid to such producer in 
case such tobacco is marketed by sede. 
"(B) If tobacco of the kind for which an Account is established is 
marketed by a producer through a warehouseman or other agent, 
then such assessment shall be collected from such warehouseman or 
agent who may deduct an amount equal to such assessment from the 
price paid to the producer. If tobacco of the kind for which an 
Account is established is marketed by a producer directly to any 
person outside the United States, such assessment shall be collected 
from the producer. 
"(e) Amounts deposited in an Account established for an associ-
ation shall be used by the Secretary for the purpose of ensuring, 
insofar as practicable, that the Corporation under its loan agree-
ments with such association will suffer, with respect to the crop 
involved, no net losses (including, but not limited to, recovery of the 
amount of loans extended to cover the overhead costs of the associ-
ation), after any net gains are applied to net losses of the Corpora-
tion pursuant to subsection (h). 
"(f) The Secretary shall provide, in any loan agreement between 
the Corporation and an association for which an Account has been 
established under subsection (b)(2), that if the Secretary determines 
that the amount in such Account or the net gains referred to in 
subsection (h) exceed the amounts necessary for the purposes of this 
section, then the Secretary, in consultation with such association, 
may suspend the payment and collection of marketing assessments 
under this section upon terms and conditions established by the 
Secretary. 
"(g) With respect to any association for which an Account is 
established under subsection (b)(2), if a loan agreement between the 
Corporation and such association is terminated, if such association 
is dissolved or merges with another association that has entered into 
a loan agreement with the Corporation to make price support 
available to producers of the kind of tobacco involved, or if such 
Account terminates by operation of law, then amounts in such 
Account and the net gains referred to in subsection (h) shall be 
applied to or disposed of in such manner as the Secretary may 
prescribe, except that they shall, to the extent necessary, first be 
applied to or used for the purposes therefor prescribed in this 
section. 
"(h) The provisions of section 106A(d)(5) relating to net gains shall Ante, p. 197. 
apply to any loan agreement between an association and the Corpo-
ration entered into upon or after the establishment of an Account 
for such association under subsection (b)(2). 
"(i) The Secretary shall issue regulations necessary to carry out Regulations. 
the provisions of this section.". 
96 STAT. 210 
PUBLIC LAW 97-218—JULY 20, 1982 
Ante, p. 205. 
7 u s e 1314b-2. 
Noncompliance, 
penalty. 
Review. 
7 u s e 1363. 
MANDATORY SALE OF CERTAIN BURLEY TOBACCO ACREAGE ALLOTMENTS 
AND MARKETING QUOTAS HELD BEFORE ENACTMENT 
SEC. 302. The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 
et seq.) is amended by adding after section 316A (as added by section 
202 of this Act), a new section 316B, as follows: 
"MANDATORY SALE OF CERTAIN BURLEY TOBACCO ACREAGE 
ALLOTMENTS AND MARKETING QUOTAS 
"SEC. 316B. (a) Any person (including, but not limited to, any 
governmental entity, public utility, educational institution, or reh-
gious institution, but not including any individual) which, on or 
after the date of the enactment of this section— 
"(1) owns a farm for which a Burley tobacco marketing quota 
is established under this Act; and 
"(2) is not significantly involved in the management or use of 
land for agricultural purposes; 
shall sell, not later than December 1, 1983, or December 1 of the 
year after the year in which the farm is acquired, whichever is later, 
such quota to an active Burley tobacco producer or any person who 
intends to become an active Burley tobacco producer, as defined by 
the Secretary, for use on another farm in the same county or shall 
forfeit such quota under the procedure specified in subsection (b). 
"(b)(1) If, after notice and an opportunity for a hearing, the county 
committee of the county referred to in subsection (a) determines 
that any person knowingly failed to comply with such subsection, 
then the quota specified in such subsection shall be forfeited and 
shall be reallocated by such county committee to other active Burley 
tobacco producers or those intending to become active Burley tobacco 
producers as defined by the Secretary, for use in such county. 
"(2) Notice of such determination shall be mailed, as soon as 
practicable, to such person. If such person is dissatisfied with such 
determination, then such person may request, within fifteen days 
after notice of such determination is so mailed, a review of such 
determination by a local review committee under section 363 of this 
Act. 
"(c)(1) Any person who— 
"(A) acquires any Burley tobacco marketing quota by pur-
chase under subsection (a) of this section; and 
"(B) with respect to any crop of Burley tobacco planted after 
the date of such acquisition, fails for the five-year period imme-
diately subsequent to the year of such acquisition to share in 
the risk of producing Burley tobacco under such allotment or 
quota in the manner specified in paragraph (2) of this subsec-
tion; 
shall sell such quota before the expiration of the eighteen-month 
period beginning on July 1 of the year in which such crop is planted, 
or such quota shall be subject to forfeiture under the procedures 
specified in paragraph (3) of this subsection. 
"(2) For purposes of this subsection, a person shall be considered to 
have shared in the risk of producing a crop of Burley tobacco if— 
"(A) the investment of such person in the production of such 
crop is not less than 20 per centum of the proceeds of the sale of 
such crop; 
"(B) the amount of such person's return on such investment is 
dependent solely on the sale price of such crop; and 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 211 
"(C) such person may not receive any of such return before 
the sale of such crop. 
"(3)(A) If, after notice and an opportunity for a hearing, the 
county committee of the county referred to in subsection (a) deter-
mines that any person knowingly failed to comply with this subsec-
tion, then the quota specified in this subsection shall be forfeited 
and shall be reallocated by such county committee for use by active 
Burley tobacco producers or those intending to become active Hurley 
tobacco producers, as defined by the Secretary, for use in such 
county. 
"(B) Notice of such determination shall be mailed, as soon as 
practicable, to such person. If such person is dissatisfied with such 
determination, then such person may request, within fifteen days 
after notice of such determination is so mailed, a review of such 
determination by a local review committee under section 363 of this 
Act". 
Review. 
7 u s e 1363. 
POUNDAGE QUOTAS FOR DARK AIR-CURED TOBACCO AND FOR FIRE-
CURED TOBACCO; MODIFICATION OF LEASING OF POUNDAGE QUOTAS 
FOR BURLEY TOBACCO 
SEC. 303. (a) Section 301(b)(15) of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1301(b)(15)) is amended by striking out the period at 
the end thereof and inserting in lieu thereof ": And provided 
further. That for purposes of section 319 of this title, types 22 and 23, 7 USC I3l4e. 
fire-cured tobacco shall be treated as one 'kind of tobacco'.". 
(b) Section 319(b) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314e(b)) is amended by— 
(1) in the first sentence, inserting "for burley tobacco" after 
"in effect"; 
(2) in the second sentence— 
(A) inserting "for burley tobacco" after "basis"; and 
(B) inserting "for burley tobacco" after "in effect"; 
(3) in the fourth sentence, striking out "such kind o f and 
inserting in lieu thereof "burley"; 
(4) in the proviso to the fifth sentence, inserting "for burley 
tobacco" after "determined"; and 
(5) striking out the subsection designation "(b)". 
(c) Section 319 of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314e) is amended by inserting before subsection (c) the 
following new subsection: 
"(b) Notwithstanding any other provision of law, the Secretary 
shall, not later than February 1, 1983, proclaim national marketing 
quotas for dark air-cured tobacco and for fire-cured tobacco, types 22 
and 23 (hereinafter in this section referred to as 'fire-cured tobacco') 
for the three marketing years beginning October 1, 1983, and deter-
mine and announce the amount of the marketing quota for dark air-
cured and for fire-cured tobacco for the marketing year beginning 
October 1, 1983, as provided in this section. Within thirty days Referendum. 
following such proclamation, the Secretary shall conduct a referen-
dum of the farmers engaged in the production of the 1982 crop of 
each of such kinds of tobacco to determine whether they favor or 
oppose the establishment of farm marketing quotas on a poundage 
basis for such kind of tobacco as provided in this section for the 
three marketing years beginning October 1, 1983, in lieu of quotas 
on an acreage basis in effect for the two marketing years beginning 
96 STAT. 212 
PUBLIC LAW 97-218—JULY 20, 1982 
Effective date. 
October 1,1983. If the Secretary determines that one-half or more of 
the farmers voting in such referendum approve marketing quotas on 
a poundage basis for such kind of tobacco, then marketing quotas as 
provided in this section shall be in effect for such kind of tobacco for 
the three marketing years beginning October 1,1983, and marketing 
quotas on an acreage basis shall cease to be in effect for such kind of 
tobacco for the two marketing years beginning on October 1,1983. If 
marketing quotas on a poundage basis are not approved for such 
kind of tobacco by at least one-half of the farmers voting in such 
referendum, then quotas on an acreage basis shall be in effect for 
such kind of tobacco for the two marketing years beginning October 
1,1983. 
"If marketing quotas on an acreage basis are in effect for any such 
kind of tobacco, if, for a period of not less than three marketing 
years, a referendum has not been held under this section to deter-
mine whether producers of such kind of tobacco favor marketing 
quotas on a poundage basis for such kind of tobacco, and if the 
Secretary, after conducting public hearings in the area in which 
such kind of tobacco is produced, ascertains that producers and 
other interested persons favor marketing quotas on a poundage 
basis for such kind of tobacco, then the Secretary shall, at the time 
of the next announcement of the amount of the national marketing 
quota, announce national marketing quotas for the next three suc-
Referendum. 
ceeding marketing years under this section. Within thirty days of 
such proclamation, the Secretary shall conduct a referendum of 
farmers engaged in the production of the most recent crop of such 
kind of tobacco to determine whether they favor the establishment 
of marketing quotas on a poundage basis for such kind of tobacco as 
provided in this section for the next three succeeding marketing 
years. If the Secretary determines that more than one-half of the 
farmers voting in such referendum approve marketing quotsis on a 
poundage basis under this section, then quotas on that basis shall be 
in effect for the next three succeeding marketing years and the 
marketing quotas on an acreage basis shall cease to be in effect at 
the beginning of such three-year period. If marketing quotas on a 
poundage basis are not approved by more than one-half of the 
farmers voting in such referendum, then the marketing quotas on 
an acreage basis shall continue in effect as theretofore proclaimed 
under this Act. 
"The Secretary shall determine and announce, not later than the 
February 1 preceding the second and third marketing years of any 
three-year period for which marketing quotas on a poundage basis 
are in effect for any such kind of tobacco under this section, the 
amount of the national marketing quota for such kind of tobacco for 
each of such years. If marketing quotas on a poundage basis have 
been made effective for such kind of tobacco under this section, then 
the Secretary shall, not later than February 1 of the last of three 
consecutive marketing years for which marketing quotas are in 
effect for such kind of tobacco under this section, proclaim a 
national marketing quota for such kind of tobacco for the next three 
Hearings. 
succeeding marketing years as provided in this section. The Sec-
retary shall conduct extensive hearings in the area in which such 
kind of tobacco is produced to ascertain whether producers favor 
marketing quotas on an acreage basis or on a poundage basis and 
shall proclaim the quota on the basis he determines most producers 
of such kind of tobacco favor. Within thirty days following such 
proclamation, the Secretary shall conduct a referendum in accord-
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 213 
ance with section 312(c) of the Act. If more than one-half of the 
^ USC 1312. 
farmers voting in such referendum oppose the national marketing 
quotas, then the Secretary shall announce the results and no mar-
keting quotas or price support shall be in effect for such kind of 
tobacco and the national marketing quota so proclaimed shall not be 
in effect for the next three succeeding marketing years. Thereafter 
the provisions of section 312 of the Act shall apply: Provided, That 
the national marketing quota and farm marketing quotas for such 
kind of tobacco shall be determined for such kind of tobacco as 
provided in this section.". 
(d) Section 319(c) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314e(c)) is amended by— 
(1) in the first sentence— 
(A) striking out "hurley tobacco" and inserting in lieu 
thereof "any kind of tobacco for which poundage quotas 
may be established"; and 
(B) inserting "of such kind of tobacco" after "amount" 
the first place it appears; 
(2) in the second sentence, striking out "Any" and inserting in 
lieu thereof "With respect to hurley tobacco, any"; and 
(3) in the third sentence— 
(A) inserting "for a kind of tobacco" after "in effect"; 
(B) inserting "with respect to such kind of tobacco" after 
"reserve" the first place it appears; 
(C) inserting "for such kind of tobacco" after "quota" the 
first place it appears; and 
(D) striking out "per centum of the" and inserting in lieu 
thereof "per centum of such". 
(e) Section 319(d) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314e(d)) is amended b y -
C
D in the first sentence— 
(A) inserting "for a kind of tobacco" after "proclaimed"; 
(B) striking out "a hurley tobacco acreage allotment" and 
inserting in lieu thereof "an acreage allotment for such 
kind of tobacco"; and 
(C) inserting ", in the case of hurley tobacco, and October 
1, 1982, in the case of dark air-cured tobacco and fire-cured 
tobacco" after "1970"; and 
(2) in the second sentence— 
(A) inserting ", in the case of burley tobacco, and the 1978 
crop year, in the case of dark air-cured tobacco and fire-
cured tobacco" after "crop year"; 
(B) striking out "burley tobacco" the first place it appears 
and inserting in lieu thereof "the kind of tobacco involved"; 
(C) striking out "burley tobacco" in each of the second, 
third, fourth, and fifth places it appears and inserting in 
lieu thereof "such kind of tobacco"; and 
(D) striking out the period at the end thereof and insert-
ing in lieu thereof ", in the case of burley tobacco, and three 
thousand pounds per acre, in the case of dark air-cured 
tobacco and fire-cured tobacco: And provided further, That, 
when a marketing quota program for dark air-cured 
tobacco or for fire-cured tobacco is first established under 
this section, farm yields so determined with respect to dark 
air-cured tobacco or fire-cured tobacco, as the case may be, 
shall be adjusted proportionately so that the weighted aver-
age of such farm yields is equal to the national average 
96 STAT. 214 
PUBLIC LAW 97-218—JULY 20, 1982 
yield goal for dark air-cured tobacco or fire-cured tobacco, 
as the case may be.". 
(£) Section 319(e) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314e(e)) is amended by— 
(1) inserting after the first sentence the following: "A prelimi-
nary farm marketing quota shall be determined for each farm 
for which a dark air-cured tobacco or fire-cured tobacco acreage 
allotment was established for the marketing year beginning 
October 1, 1982, by multiplying the farm yield determined 
under such subsection by the farm acreage allotment (prior to 
any such reduction) established for such farm for the marketing 
year beginning October 1,1982."; 
(2) in the third sentence (as in effect before the amendment 
made bv paragraph (1)), striking out "hurley tobacco marketing 
quotas and inserting in lieu thereof "marketing quotas for the 
kind of tobacco involved"; and 
(3) in the sixth sentence (as in effect before the amendment 
made by paragraph (1))— 
(A) striking out "hurley tobacco experience of the farm 
operator" and inserting in lieu thereof "experience of the 
farm operator with respect to the kind of tobacco involved"; 
and 
(B) striking out "production of hurley tobacco" each place 
it appears and inserting in lieu thereof "production of such 
kind of tobacco". 
(g) The first sentence of section 319(f) of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1314e(£)) is amended by— 
(1) inserting "for any kind of tobacco" after "in effect"; and 
(2) striking out "hurley tobacco" and inserting in lieu thereof 
"such kind of tobacco". 
(h) Section 319(g) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314e(g)) is amended by— 
(1) inserting "for any kind of tobacco" after "in effect"; 
(2) striking out "hurley tobacco" and inserting in lieu thereof 
"such kind of tobacco"; and 
(3) in the third proviso— 
(A) striking out "fifteen thousand pounds" and inserting 
in lieu thereof "thirty thousand pounds"; and 
(B) inserting "with respect to hurley tobacco" after "sec-
tion". 
(i) Section 319(i) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1314e(i)) is amended by— 
(1) in the proviso to paragraph (1), striking out "hurley 
tobacco" and inserting in lieu thereof "the kind of tobacco 
involved"; and 
(2) in paragraph (3), inserting "with respect to hurley tobacco" 
after "in effect". 
(j) The section heading for section 319 of the Agricultural Adjust-
7 use I3i4e. 
ment Act of 1938 (7 U.S.C. 1313e) is amended to read as follows: 
"FARM POUNDAGE QUOTAS FOR CERTAIN KINDS OF TOBACCO". 
CONFIDENTIAL DATA 
7 use 1373. 
SEC 304. Section 373(c) of the Agricultural Adjustment Act of 1938 
is amended by adding at the end thereof the following new sentence: 
"Nothing in this section shall be deemed to prohibit the issuance of 
PUBLIC LAW 97-218—JULY 20, 1982 
96 STAT. 215 
general statements based upon the reports of a number of parties 
which statements do not identify the information furnished by any 
person.". 
LONCMTERM GRAIN SALES AGREEMENT 
SEC. 305. (a) The Congress finds that— 
(1) talks to extend the long-term grain sales agreement 
between the Soviet Union and the United States were broken 
off in 1981 with no date set for resumption of these talks; 
(2) the Government of the Soviet Union for all practical 
purposes has ceased to purchase United States agricultural 
commodities since the breaking off of negotiations; 
(3) the lack of a long-term grain sales agreement may result 
in market instability, with the potential of disrupting the feed-
livestock relationship in the United States; 
(4) the lack of such an agreement may result in uncertainty 
among farmers as to the best planting decisions for the upcom-
ing crop year; 
(5) the lack of such an agreement has already led the Soviet 
Union to seek other sources of supplies at the expense of the 
American farmer; and 
(6) the lack of such an agreement means a drop in the export 
of agricultural commodities and continued severe difficulties 
with the balance of trade deficit of the United States. 
(b) It is the sense of the Congress that the President should 
immediately resume negotiations with the Government of the Soviet 
Union for the purpose of reaching an agreement to extend the 
duration of the existing long-term grain sales agreement and to 
require the purchase by the Government of the Soviet Union of a 
minimum amount of grain annually at a level not less than the level 
required by the existing long-term grain sales agreement. 
UMrrATION ON THE SALE OF TOBACCO FLOOR SWEEPINGS 
SEC. 306. The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 
et seq.) is amended by adding immediately after section 314 thereof 
the following new section: 
"SEC. 314A. (a) Effective for the 1982 and subsequent crops of 
tobacco, the marketing of floor sweepings of any kind of tobacco in 
excess of allowable floor sweepings shall be subject to a civil penalty 
of 150 per centum of the average market price (calculated to the 
nearest whole cent) for such kind of tobacco for the immediately 
preceding marketing year. Such penalty shall be paid by any person 
found by the Secretary to have marketed such floor sweepings in 
excess of the allowable amount. 
"
O
t
>
) The penalty provided for in subsection (a) shall be assessed by 
the Secretary only after the person alleged to have marketed floor 
sweepings in excess of allowable floor sweepings has been given 
notice and an opportunity for hearing and the Secretary has deter-
mined by decision incorporating the Secretary's findings of fact that 
a violation did occur and the amount of the penalty. 
"(c) The provisions of section 376 of this title shall apply to 
penalties under this section. 
"(d) As used in this section— 
Penalties. 
7 u s e 1314-1. 
7 u s e 1376. 
Definitions. 
97-200 O—84—pt. 1 
9 : QL3 
96 STAT. 216 
PUBLIC LAW 97-218—JULY 20, 1982 
"(1) the term 'floor sweepings' means the scraps or leaves of 
tobacco which accumulate on the warehouse floor in the regular 
course of business; and 
"(2) the term 'allowable floor sweepings' means the quantity 
of floor sweepings determined by multipljdng 0.24 per centum 
times the total flrst sales of tobacco at auction for the season for 
the warehouse involved.". 
TITLE IV—THE AGRICULTURAL STABILIZATION AND CON-
SERVATION COUNTY AND COMMUNITY COMMITTEE 
SYSTEM 
1
6 use 590h 
SEC. 401. Congress finds that agricultural stabilization and conser-
"o^- 
vation county and community committees have served, and should 
continue to serve, a vital function in implementing, at the local 
level, farm commodity, soil conservation, and related programs; and 
that, by assisting the United States Department of Agriculture to 
conduct such programs effectively, such committees provide sub-
stantial benefits to agriculture and the Nation. Congress further 
finds that the agricultural stabilization and conservation county and 
community committee system has developed, over the years, into a 
highly efficient mechanism for implementing such programs at the 
local level. Therefore, it is the sense of Congress that the Secretary 
of Agriculture should ensure that the structure and operations of 
the agricultural stabilization and conservation county and commu-
nity committees, as heretofore developed to enable such committees 
to meet the responsibilities assigned them under section 80)) of the 
1
6 use 590h. 
Soil Conservation and Domestic Allotment Act, and related statutes 
and regulations, be preserved and strengthened. 
Approved July 20,1982. 
LEGISLATIVE HISTORY—H.R. 6590: 
HOUSE REPORT No. 97-613 (eomm. on Agriculture). 
eONGRESSIONAL REOORD, Vol. 128 (1982): 
June 21, considered and passed House. 
July 14, considered and passed Senate, amended. 
July 15, House concurred in Senate amendments.