An Act to enact the Agricultural Act of 1956.
PL 84-540 (H.R.10875), enacted 05/28/1956

188 
May 28, 1956 
[H.R. 10875] 
PUBLIC LAW 640-MAY 28, 1956 
[TO S T A T . 
Public Law 540 
CHAPTER 327 
AN ACT 
To enact the Agricultural Act of 1936. 
Be it enacted hy the Senate and House of Representatives 
of the 
oM^se?^*"'"* ^^ 
United States of America in Congress assembled^ That this Act may 
be cited as the "Agricultural Act of 1956". 
TITLE I—SOIL BANK ACT 
SHORT TITLE 
Soil Bank Act. 
s^c. 101. This title may be cited as the "Soil Bank Act". 
DECLARATION OF POLICY 
SEC. 102. The Congress hereby finds that the 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 for 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; con-
gests terminal markets and handling and processing centers in the flow 
of commodities from producers to consumers; depresses prices in 
interstate and foreign commerce; disrupts the orderly marketing of 
commodities in such commerce; and otherwise affects, burdens, and 
obstructs interstate and foreign commerce. I t is in the interest of 
the general welfare that the soil and water resources of the Nation 
be not wasted and depleted in the production of such burdensome 
surpluses and that interstate and foreign commerce in agricultural 
commodities be protected from excessive supplies. 
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 vraste and depletion, to 
protect interstate and foreign commerce from the burdens and obstruc-
tions 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 supplies 
of agricultural commodities from burdening and obstructing inter-
state and foreign commerce. 
52 Stat. 31. 
7 u s e 1281. 
70 S T A T . ] 
PUBLIC LAW 640-MAY 28, 1966 
189 
SuBTiTi.E A—^ACREAGE RESERVE PROGRAM 
TERMS AND CONDITIONS 
SEC. 103. (a) Nothwithstanding 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, 1968, and 1959 crops of wheat, 
cotton, corn produced in the commercial corn-productng area, peanuts, 
rice, flue-cured tobacco, hurley tobacco, Maryland tobacco, dark air-
cured tobacco, fire-cured tobacco, Virginia sun-cured tobacco, cigar 
binder tobacco types 51, 52, 54, and 55, Ohio cigar filler tobacco types 
42, 43, and 44, respectively (hereinafter referred to as "the com-
modity"), 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 b}'^ 
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 oy 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-
gram may include such terms and conditions, in addition to those 
specifically provided for herein, including provisions relating to con-
trol of noxious weeds on the reserve acreage, as the Secretary deter-
mines 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 par- 
contract, 
ticipating 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 con-
tain 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 ^ a n t s received by him thereunder: Provided^ 
however, That the provisions of Section 107 (d) shall apply to the 
^*'*'' P* ^^^' 
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 ad-
190 
PUBLIC LAW 640-MAY 28, 1966 
[70 8T A T * 
Com. 
52 Stat. SI. 
7 u s e 1327. 
Post, 
p. 206. 
justmeiits, 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. 
(bj (1) There is hereby established for 1956 and for each year for 
which an acreage reserve program is in effect for corn a total base 
acreage of corn for the commercial corn-producing area proclaimed un-
der section 327 of the Agricultural Adjustment Act of 1938, as amend-
ed, 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 pratices: 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 other-
wise 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. 
EXTENT OF PARTICIPATION I N 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 acre-
age goal and give producers a fair and equitable opportunity to partici-
pate in the acreage reserve program, taking into consideration their 
acreage allotments or farm base acreages, whichever may be appli-
cable, the supply and demand conditions for different classes, grades, 
and qualities of the commodity, and such other factors as he deems 
appropriate. 
COMPENSATION OF PRODUCERS 
ufhfSe^if"* *'*'" 
SEC. 105. (a) Producers shall be compensated for participating in 
the acreage reserve program through the issuance of negotiable certifi-
cates 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 
70 STAT.] 
PUBLIC LAW 540-MAY 28, 1966 
191 
withheld from production under the provisions of this title: And pro-
vided 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 adjust-
ment 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 underplant their allotments 
more than one year. 
Commodities delivered to producers in redemp-
tion of such certificates shall not be eligible for tender to Commodity 
Credit Corporation under the price support program. 
(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. 
(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 commodi-
ties on the basis of the amounts required to achieve the reserve acreage 
goal for each commodity established under section 104. 
EFFECT ON 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 
pul^c^isVi. 
amended, or base acreages under this title, reserve acreages applicable 
to any commodity shall be credited to the State, county, and farm as 
though such acreage had actually been devoted to the production of 
the commodity. 
(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) 
" stat. 204. 
and 356 (g) of the Agricultural Adjustment Act of 1938, as amended 
|i |I"J' !ho 
(7 U. 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. 
SUBTITLE B—CONSERVATION EESERVE PROGRAM 
TERMS AND CONDITIONS 
SEC. 107. (a) To effectuate the purposes of this title the Secretary ^^^^J^''**^' *'°"" 
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 
192 
PUBLIC LAW 640-MAY 28, 1956 
[70 STAT. 
Ante, p. 189. 
A g r e e m e n t by 
Secretary. 
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, 
throughout the 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 January 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 
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) 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 con-
servation reserve program, including provisions relating to control of 
noxious weeds. 
(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 vegretative 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 estab-
lished 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-conserving uses, taking into consideration 
70 S T A T . ] 
PUBLIC LAW 540-MAY 28, 1956 
193 
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 sub-
stantial 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, or such other basis as the Secretary determines will facilitate 
the practical administration of the program. 
(c) In determining the lands in any area to be covered by contracts biA^''*'"'*"* *" 
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. 
(d) A contract shall not be terminated under paragraph (6) of coItea^ts^bJiausi 
subsection (a) unless the nature of the violation is such as to defeat of violations. 
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 opportunity^ within thirty days after the 
delivery or service of such notice, be given an opportunity to show 
cause, in an informal proceeding before 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 
accordance with regulations of the Secretary shall be final and con-
clusive. 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 informa-
tion 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 regula-
tions promulgated by the Secretary, to appear before the State com-
mittee 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 be made in 
accordance with the rule for service of process upon the United States 
E
rescribed by the Kules 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 con-
clusive. 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 
*l ?4*1' A
i
>
1
f 
• 
amended. 
' 
i6 use swh. 
69225 O - 57 -17 (Vol. 70) 
194 
PUBLIC LAW 540-MAY 28, 1966 
[70 STAT. 
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 goal shall be that percentage which the Secretary de-
termines 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 produc-
tion 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 consump-
tion and export and an adequate allowance for carryover. As soon as 
practicable after the enactment of this title the Secretary shall deter-
mine the national conservation acreage goal for 1956. 
(b) In distributing the national acreage goal among the various 
States and major crop production regions, the Secretary shall give due 
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 ade-
quate production of agricultural commodities and products not in sur-
plus and to discourage the production of agricultural commodities and 
products in surplus. 
(c) The Secretary shall transmit to the Congress on or before March 
15 of each year a report of the scope of the conservation reserve pro-
gram for the preceding year and the basis for participation in such 
program in the various States and major crop production regions of 
the country. 
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. 
(b) The period covered by any contract shall not exceed ten years, 
excejDt that contracts for the establishment of tree cover may extend 
for 15 years. 
(c) In carrying out the conservation reserve program, the Secretary 
shall not enter into contracts with producers which would require pay-
ments to producers, including the cost of materials and services, in 
excess of $450,000,000 in any calendar year. 
TERMINATION AND MODIFICATION OF CONTRACTS 
SEC. 110. (a) The Secretary may terminate any contract with a 
producer by mutual agreement with the producer if the Secretary 
determines that such termination would be in the public interest. 
(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 adminis-
tration of the conservation reserve program. 
Report to C o n-
gresst 
70 STAT.] 
PUBLIC LAW 640-MAY 28, 1966 
195 
CONSERVATION MATERIALS AND SERVICES 
SEC. 111. (a) The Secretary may purchase or produce conserva-
tion 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 con-
tracts 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. 
(b) Notwithstanding any other provision of law, in making conser-
vation materials and services available to producers hereunder, the 
Secretary may make payments, in advance of determination of per-
formance by the producers, to persons who fill purchase orders cover-
ing 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 forest-
conserving uses, under contracts authorized by this subtitle B. The 
price at which purchase orders for any conservation material or serv-
ice 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. 
E F F E C T O N OTHER PR0(JRAMS 
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 
7\j|*c**i28i. 
cropland acreage on the farm shall not be deemed to be decreased 
during the period of any contract entered into under the conser-
vation reserve program by reason of the establishment and main-
tenance of vegetative cover or water storage facilities, or other 
soil-, water-, wildlife-, or forest-conserving uses, under such con-
tract; and 
(2) the acreage on any farm which is determined under regula-
tions 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 acre-
age 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 
y^xfsc\Uu 
acreages under this Act. 
GEOGRAPHICAL APPLICABILIIT 
SEC. 113. This subtitle B shall apply to the continental United 
States, and, if the Secretary determines it to be in the national interest, 
to one or more of the Territories of Alaska and Hawaii, the Common-
wealth of Puerto Rico, and the Virgin Islands, and as used in this 
subtitle B, the term "State" includes Alaska, Hawaii, Puerto Rico, and 
the Virgin Islands. 
196 
PUBLIC LAW 640-MAY 28, 1966 
[TO STAT. 
SuBTiTi>E 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 com-
Poat, p. 208. 
modity under title I I I of the Agricultural Adjustment Act of 1938, 
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 this section, a producer shall not be deemed to have exceeded 
his farm acreage allotment or farm base acreage, unless such pro-
ducer knowingly exceeded such allotment or base acreage and, in the 
case of wheat, unless such producer knowingly exceeded the farm 
acreage allotment or fifteen acres, whichever is larger. 
REAPPORTIONMENT PROHIBITED 
SEC. 115. No acreage diverted from the production of any com-
modity subject to acreage allotments as a result of participation in 
the acreage reserve or conservation reserve programs shall be reap-
portioned or allotted to any other farm. 
CERTEFICATB OF CLAIMANT 
Ante, p. 191. 
gj,^, ^-^Q Subject to the provisions of section 105 (b), payment or 
compensation authorized by this title may be made upon the certifi-
cate 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. 
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 
f 
? fr^^ Jli^.?* 
State committees established under section 8 of the Soil Conserva-
tion and Domestic Allotment Act, as amended. 
UTILIZATION OF OTHER AGENCIES 
SEC. 118. With respect to conservation aspects of any program under 
this title, the Secretary shall consult with the soil-conservation dis-
tricts. State foresters. State game and fish agencies, land-grant col-
leges, and other appropriate agencies of State governments, and with 
the Fish and Wildlife Service, in the formulation of program provi-
sions 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. 
UTILIZATION OF LAND USE CAPABILITY DATA 
SEC. 119. In administering this title the Secretary shall utilize to the 
fullest practicable extent land use capability data, including capability 
16 use 590h. 
70 STAT.] 
PUBLIC LAW 540-MAY 28, 1966 
197 
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. 
FINANCING 
SEC. 120. (a) The Secretary is authorized to utilize the facilities, 
services, authorities, and funds of the Commodity Credit Corporation 
in discharging his functions and responsibilities under this title, in-
cluding payment of costs of administration for the programs author-
ized under this title: Provided^ That the Secretary 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 Cor-
poration shall not make any expenditures for carrying out the pur-
poses of this title unless the Corporation has received funds to cover 
such expenditures from appropriations made to carry out the pur-
poses of this title. 
There are hereby authorized to be appropriated 
such sums as may be necessary to carry out the purposes or 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. 
(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 mate such payments in advance of determination of performance. 
Report to C o n -
gress* 
Appropriations* 
Tr a n s fe r 
funds, etc. 
of 
FINALITY OF DETERMINATIONS 
SEC. 121. The facts constituting the basis for any paj^nent or com-
pensation, or the amount thereof, authorized to be made under this 
title, when officially determined in conformity with applicable regu-
lations prescribed by the Secretary, shall be final and conclusive and 
shall not be reviewable by any other officer or agency of the Govern-
ment. In case any producer who is entitled to any payment or com-
pensation 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 circum-
stances and so provide by regulations. 
PROTECTION OF TENANTS AND SHARECROPPERS 
SEC. 122. In the formulation and administration of programs under 
this title, the Secretary shair 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 
prevent them from being forced off the farm. Applications to partici-
pate in any such program shall specify the basis on which the landlord, 
tenants, and sharecroppers are to share in such payments or compen-
sation, and no contract under any such program shall be entered into 
unless such basis is approved by the county committee and incorpo-
rated 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 con-
sideration be given to the respective contributions which would have 
Ante, 
pp> 189f 
191. 
198 
PUBLIC LAW 640-MAY 28, 1966 
[ 70 STAT. 
been made by the landlord, tenants, and sharecroppers in the produc-
tion 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. 
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 pen-
alty shall be in addition to any amounts required to be forfeited or 
refunded under the provisions of such contract, and shall be recover-
able in a civil suit brought in the name of the United States. 
V 
REGULATIONS 
SEC. 124. The Secretary shall prescribe such regulations as he deter-
mines necessary to carry out the provisions of this title. 
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 practi-
cable 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 refuses 
under cooperative permits where such production is necessary to main-
tain satisfactory wildlife populations, especially of waterfowl for 
beneficial use. 
POOLING o r 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. 
TITLE II—SURPLUS DISPOSAL 
PROGRAM o r 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. 
ess**'* *
*
* ^*"*" 
e^) '^^^ Secretary shall submit to Congress within ninety days 
after the enactment of this Act detailed programs, with recommenda-
tions for any additional legislation needed to carry out sucli programs, 
(1) for the disposition of surplus commodities as required by subsec-
tion (a) above; (2) for a food stamp plan or similar program for 
distribution through States (including the District of Columbia, the 
Territories, Puerto Rico 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 products (A) inside the United States and (B) outside 
22 use fga^s. 
t^e United States as authorized in section 415 of the Mutual Security 
70 S T A T . ] 
PUBLIC LAW 640-MAY 28, 1956 
199 
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 dis-
posed 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 sur-
plus 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. 
EXTRA-LONO 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 1983, 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-
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 rea-
sonable period of time. 
54 Stat. 2640. 
49 Stat. 773. 
7 u s e 624. 
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 
IJnited States Department of Agriculture on August 12, 1955. The 
Commodity Credit Corporation may accept bids in excess of the maxi-
mum 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 appro-
priate 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. 
63 Stat. 1055. 
7 u s e 1427. 
200 
PUBLIC LAW 640-MAY 28, 1966 
[70 ST A T . 
49 Stat. 773. 
7 u s e 624. 
AGREEMKNTS 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 coun-
tries 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 govern-
ing the entry or withdrawal from warehouse of any such commodity, 
product, textiles, or textile products to carry out any such agree-
ment. 
Nothing herein shall affect the authority provided under 
section 22 of the Agricultural Adjustment Act (of 1933) as amended. 
Appropri at! 
on. 
49 Stat. 774. 
APPROPRIATION TO SUPPI>EMENT 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 
products thereof. 
60 Stat. 596. 
68 Stat. 456. 
Appropriation. 
TRANSFER OF BARTERED MATERIALS TO SUPPLEMENTAL STOCKPILE 
SEC. 206. (a) Strategic and other materials acquired by the Com-
modity Credit Corporation as a result of barter or exchange of agri-
cultural 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 Corpora-
tion 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 Commoditv Credit Corporation's investment therein as of 
the date of such transfer, as determined by the Secretary of Agricul-
ture. 
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 responsi-
bility for activities of the Department, including those of the Com-
modity Credit Corporation, relating to the disposal of surplus agri-
cultural commodities as the Secretary may direct. 
70 STAT.] 
PUBLIC LAW 640-MAY 28, 1956 
201 
PAYMENT OF OCEAN FREIGHT 
SEC. 208. The Agricultural Trade Development and Assistance Act 
of 1954, as amended, is amended as follows: 
(a) The first sentence of section 103 (a) is amended by striking 
7\il*c*i7o"' 
out the word "and" following the words "handling costs," and by 
inserting immediately before the period the following: "and, (3) all 
Commodity Credit Corporation funds expended for ocean freight costs 
authorized under title I I hereof for purposes of section 416 of the 
Agricultural Act of 1949, as amended". 
^*'"' ^* ^^' 
(b) Section 201 is amended by striking out "f. o. b. vessels in 
^ "^^ ^'^i. 
United States ports,". 
(c) The first sentence of section 203 is amended to read as follows: 
^ "^^ ^^^^ 
"Not more than $500,000,000 (including the Corporation's invest-
ment in such commodities) shall be expended for all such transfers 
and for other costs authorized by this title." 
Section 203 is further 
amended by adding at the end of the section the following: "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 Agricul-
tural 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." 
COMMISSION 
TO RECOMMEND 
LEGISLATION 
PROVIDING 
FOR 
INCREASED 
INDUSTRIAL USE OF AGRICULTURAL PRODUCTS 
SEC. 209. (a) (1) There is hereby established a bipartisan Com-
mission on Increased Industrial Use of Agricultural Products (here-
after referred to as "the Commission"). 
The Commission shall be 
composed of five members, of whom not more than three shall be 
members of the same political party, to be appointed by the President 
by and with the advice and consent of the Senate, 
In making 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. 
(3) The Commission is authorized to appoint and fix the com-
pensation, without regard to the civil-service laws and the Classifica-
tion Act of 1949, as amended, of an executive director and such 
fufcfibfi^note. 
chemists, engineers, 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 Agricul-
ture 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. 
202 
PUBLIC LAW 540-MAY 28, 1966 
[70 S T A T . 
62 Stat. 697. 
Report to C o n -
gress. 
^>propriat ion. 
Termination. 
(5) Service of an individual as a member of the Commission or 
employment of an individual by the Commission in a technical or 
professional field, on a part-time or full-time basis, shall not be con-
sidered as service or employment bringing such individual within the 
provisions of section 281, 283, 284, 434 or 1914 of title IS of the United 
States Code, or section 190 of the Revised Statutes (5 IT. S. 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 recom-
mendations which in its opinion will bring about the greatest practical 
use for industrial purposes of agricultural products not needed for 
human or animal consumption, including, but not limited to, use in 
the manufacture of rubber, industrial alcohol, motor fuels, plastics, 
and other products. 
(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 in sub-
section (b), the Commission shall cease to exist. 
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 in 
the public interest, and upon application, to donate food commodities 
acquired through price support operations to Federal penal and cor-
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. 
"Federal irriga-
t i o n or drainage 
project". 
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 flood-control 
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 Agricul-
ture shall determine and proclaim the agricultural commodities 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 drainage project subject 
70 S T A T . ] 
PUBLIC LAW 540-MAY 28, 1956 
203 
68 Stat. 458> 
7 u s e 1431. 
to the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 388, 
43usc37i note, 
and Acts amendatory thereof or supplementary thereto) in effect at 
the date of the adoption of this amendment and any irrigation or drain-
age project subject to the laws relating to irrigation and drainage ad-
ministered by the Department of Agriculture or the Secretary of 
Agriculture. 
PROCESSING OF DONATED FOOD COMMODITIES 
SEC. 212. Section 416 of the Agricultural Act of 1949, as amended, 
is amended by inserting before the last sentence thereof a new sentence 
as follows: "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.' 
TITLE III—MARKETING QUOTAS AND ACREAGE 
ALLOTMENTS 
EXTENSION OF SURRENDER AND REAPPORTIONMENT PROVISIONS FOR WHEAT 
ACREAGE ALLOTMENTS 
SEC. 301. Section 334 (f) of the Agricultural Adjustment Act of 
1938, as amended, is amended by striking out "1955" wherever it ap-
pears in such subsection and inserting in lieu thereof "1955, 1956, or 
1957". 
ACREAGE 
ALLOTMENTS FOR COTTON FOR 1957 
AND 1958 
SEC. 302. Section 342 of the Agricultural Adjustment Act of 1938, 
ful*cMJi' 
as amended, is hereby amended by adding at the end thereof the follow-
ing: "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 acre-
age required for such increase shall be in addition to the national acre-
age 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." 
68 Stat. 903. 
7 u s e 1334. 
COTTON 
SMALL FARM ALLOTMENTS 
SEC. 303. (a) Section 344 (b) of the Agricultural Adjustment Act 
of 1938, as amended, is amended by inserting before the period at the 
end thereof a colon and the following: '•''Provided^ That there is 
hereby established a national acreage reserve consisting of one hun-
dred thousand acres which shall be in addition to the national acreage 
allotment; and such reserve shall be apportioned to the States on the 
basis of their needs for additional acreage for establishing minimum 
farm allotments under subsection (f) (1), as determined by the Secre-
tary without regard to State and county acreage reserves (except 
that the amount apportioned to Nevada shall be one thousand acres), 
and the additional acreage so apportioned to the State shall be appor-
tioned to the counties on the same basis and added to the county acre-
age allotment for apportionment to farms pursuant to subsection (f) 
of this section (except that no part of such additional acreage shall 
63 StaU 671. 
7 u s e 1344. 
204 
PUBLIC LAW 540-MAY 28, 1956 
[70 S T A T . 
63 Stat. 671. 
7 u s e 1344. 
63 Stat. 671. 
7 u s e 1344. 
68 Stat. 904. 
7 u s e 1344. 
E f f e c t i v i t y of 
section. 
be used to increase the county reserve above 15 per centum of the 
county allotment determined without regard to such additional acre-
age). 
Additional acreage apportioned to a State for any year under 
the foregoing proviso shall not be taken into account in establishing 
future State acreage allotments. 
Needs for additional acreage under 
the foregoing proviso and under the last proviso in subsection (e) 
shall be determined as though allotments were first computed without 
regard to subsection (f) (1)." 
(b) Section 344 (e) of the Agricultural Adjustment Act of 1938, as 
amended, is amended b j inserting before the period at the end thereof 
a colon and the following: ''''Provided further^ That if the additional 
acreage allocated to a State under the proviso in subsection (b) is 
less than the requirements as determined by the Secretary for estab-
lishing minimum farm allotments for the State under subsection (f) 
(1), the acreage reserved by the State committee under this subsection 
snail not be less than the smaller of (1) the remaining acreage so 
determined to be required for establishing minimum farm allotments 
or (2) 3 per centum of the State acreage allotment; and the acreage 
which the State committee is required to reserve under this proviso 
shall be allocated to counties on the basis of their needs for additional 
acreage for establishing minimum farm allotments under subsection 
(f) (1), and added to the county acreage allotment for apportionment 
to farms pursuant to subsection (f) of this section (except that no part 
of such additional acreage shall be used to increase the county reserve 
above 15 per centum of the county allotment determined without 
regard to such additional acreages)." 
(c) Section 344 (f) of the Agricultural Adjustment Act of 1938, 
as amended, is amended by changing paragraph (1) to read as follows: 
"(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 acrgs planted to cotton in any year of such three-year period." 
(d) The first sentence of section 344 (f) 
(6) of such Act is 
amended to read as follows: "Notwithstanding the provisions of para-
graph (2) of this subsection, if the county committee recommends such 
action and the Secretary determines that such action will result in a 
more equitable distribution of the county allotment among farms in 
the county, the remainder of the county acreage allotment (after 
making allotments as provided in paragraph (1) of this subsection) 
shall l^ allotted to farms other than farms to which an allotment has 
been made under paragraph (1) (B) of this subsection so that the 
allotment to each farm under this paragraph together with the amount 
of the allotment of such farm under paragraph (1) (A) of this sub-
section shall be a prescribed percentage (which percentage shall be 
the same for all such farms m the county) of the average acreage 
planted to cotton on the farm during the three years immediately 
preceding the year for which such allotment is determined, adjusted 
as may be necessary for abnormal conditions affecting plantings during 
such three-year period: Provided^ That the county committee may in 
its discretion limit any farm acreage allotment established under the 
provisions of this paragraph for any year to an acreage not in excess 
of 50 per centum of the cropland on the farm, as determined pursuant 
to the provisions of paragraph (2) of this subsection: Provided 
fur-
ther^ That any part of the county acreage allotment not apportioned 
under this paragraph by reason of the initial application of such 50 
per centum limitation shall be added to the county acreage reserve 
under paragraph (3) of this subsection and shall be available for the 
purposes specified therein." 
(e) The amendments made by this section shall be effective only 
with respect to 1957 and 1958 crops. For the 1956 crop, an acreage 
Poat, p. 206. 
70 STAT.] 
PUBLIC LAW 540-MAY 28, 1966 
206 
in each State equal to the acreage allotted in such State which the 
Secretary determines will not be planted, placed in the acreage reserve 
or conservation reserve, or considered as planted under section 377 
of the Agricultural Adjustment Act of 1938, as amended, may be 
apportioned by the Secretary among farms in such State having allot-
ments 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. 
M I N I M U M ACREAGE ALLOTMENTS FOR RICE 
SEC. 304. Section 353 (c) of the Agricultural Adjustment Act of 
f^jlc^as^. 
1938, as amended, is amended by adding at the end thereof the 
following: 
"(5) Each of the State acreage allotments for 1956 heretofore pro-
claimed 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 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 1957 and 1958 shall be apportioned among the 
States in the same proportion that they shared in the total acreage 
allotted in 1956." 
INCREASE IN PEANUT MARKETING PENALTIES 
SEC. 305. Effective beginning with the 1956 crop, section 359 (a) of 
the Agricultural Adjustment Act of 1938, as amended, is amended by 
fVrs^c^ia'sgV 
amending the first sentence thereof to read as follows: "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 marketing year (August 1-July 31)." 
COLLECTION OF PEANUT MARKETING PENALTIES 
SEC. 306. Section 359 of the Agricultural Adjustment Act of 1938, 
l\Mc\3S9. 
as amended, is amended by adding two new subsections as follows: 
"(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. 
"(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 
C[uotas in which the person liable for payment of the penalty has an 
interest shall be in effect in favor of the United States." 
206 
PUBLIC LAW 640-MAY 28, 1966 
[TO STAT. 
PRESERVATION OF UNUSED ACREAGE ALLOTMENTS 
SEC. 307. The Agricultural Adjustment Act of 1938, as amended, 
"ul*c*i376. 
^^ amended by inserting after section 376 a new section as follows: 
"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 pur-
poses 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 which the amount of the com-
modity required to be stored to postpone or avoid payment of penalty 
has been reduced because the allotment was not fully planted. 
Noth-
ing 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." 
ACREAGE REQUIREMENTS FOR PRICE SUPPORT ON CORN AND OTHER 
FEED GRAINS 
SEC. 308. (a) Notwithstanding any other provision of law, when-
ever 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 in 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: Provided, That price support may be made 
available to any producer who does not meet the foregoing require-
ments at such level, not in excess of the level of price support to pro-
• 
, 
ducers 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 corn-
producing area to determine whether such producers favor a price-
support program as provided in subsection (c) of this section for the 
1957 and subsequent crops in lieu of acreage allotments as provided in 
f^js^c^ilsi. 
the Agricultural Adjustment Act of 1938, as amended, and price sup-
7^ufc*i44i^* 
P^^* ^^ 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 com shall be estab-
lished 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 Corpora-
tion shall be at such level as the Secretary determines will assist pro-
ducers 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 
70 STAT.3 
PUBLIC LAW 540-MAY 28, 1956 
207 
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 821/^ 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 avail-
able 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-
eration the normal price relationships between such commodity and 
corn in the commercial area, the feed value of such commodity in rela-
tion 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 IV—FORESTRY PROVISIONS 
ASSISTANCE TO STATES FOR TREE PLANTING AND REFORESTATION 
SEC. 401. (a) The Congress hereby finds and declares that build-
ing up and maintaining a level of timber growing stocks adequate 
to meet the Nation's domestic needs for a dependable future supply of 
industrial wood is essential to the public welfare and security; that 
assisting in improving and protecting the more than fifty million 
acres of idle non-Federal and Federal lands for this purpose would 
not only add to the economic strength of the Nation, but also bring 
increased public benefits from other values assqciated with forest 
cover; and that it is the policy of the Congress that the Secretary 
of Agriculture in order to encourage, promote, and assure fully ade-
quate future resources of readily available timber should assist 
the States in undertaking needed programs of tree planting. 
(b) Any State forester or equivalent State official may submit to 
state plans, 
the Secret ,ry of Agriculture a plan for forest land tree planting 
and reforestation for the purpose of effecting the policy hereinbefore 
stated. 
(c) When the Secretary of Agriculture has approved the plan, he 
is hereby authorized and directed to assist the State in carrying out 
such plan, which assistance may include giving of advice and technical 
assistance and furnishing financial contributions: Provided^ That, for 
the non-Federal forest land tree planting and reforestation, the finan-
cial contribution expended by the Federal Government during any 
fiscal year to assist the State to carry out the plan shall not exceed the 
amount expended by the State for the same purposes during the same 
fiscal year, and the Secretary of Agriculture is authorized to make 
financial contributions on the certificate of the State official in charge 
of the administration of the plan as to the amount of expenditures 
made by the State. 
(d) In any plan that coordinates forest lands under the jurisdiction 
of any Federal agency other than the Department of Agriculture, the 
Secretary of Agriculture shall obtain the cooperation and assistance 
of the Federal agency having jurisdiction and the appropriate State 
forester in the approval and carrying out of the plan. 
208 
PUBLIC LAW 540-MAY 28, 1966 
[70 ST 
A T . 
Rules and regu-
lations* 
Appropriations* 
(e) The Secretary of Agriculture may prescribe such rules and regu-
lations as may be appropriate to carry out the purposes of this section. 
(f) There are hereby authorized to be appropriated such sums as 
may be necessary to carry out the objects of this section, such sums to 
remain available until expended. 
52 Stat. 
7 use 
aeq. 
38. 
1301 at. 
STUDY 
OF 
PRICE 
TRENDS 
FCR 
FOREST 
PRODUCTS 
SEC, 402. The Secretary of Agriculture shall make a study of price 
trends and relationships for basic forest products such as sawlogs and 
pulpwood and within one year from the date of enactment of this Act 
shall submit a report thereon to the Congress. 
TITLE V—CERTIFICATE PROGRAM FOR RICE 
SEC. 501. Title I I I of the Agricultural Adjustment Act of 1938, as 
amended, is amended (1) by changing the designation thereof to read 
as follows: "TITLE III—LOANS, PARITY PAYMENTS, CON-
SUMER SAFEGUARDS, MARKETING QUOTAS, AND MAR-
KETING CERTIFICATES"; (2) by changing the designation of 
subtitle D thereof to read as follows: "SUBTITLE E—MISCELLANEOUS 
PROVISIONS AND APPROPRIATIONS"; and (3) by inserting after subtitle 
C a new subtitle D, as follows: 
"SUBTITLE D — R I C E CERTIFICATES 
52 Stat. 60. 
7 u s e 1351. 
LEGISLATIVE FINDINGS 
"SEC. 380a. The movement of rice from producer to consumer is 
preponderantly in interstate and foreign commerce, and the small 
quantity 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 commerce 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. 
"EFFECTIVE DATE AND TERMINATION 
"SEC. 380b. Sections 380c through 380g (c) shall be effective begin-
ning with the first crop of rice, subsequent to the 1956 crop and prior 
to the 1959 crop, for which the Secretary determines and proclaims 
that the initiation of a program under this subtitle is administratively 
feasible and in the best interests of ric*» 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 ft5r which a 
program is in effect under sections 380c and 380g (c). 
"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 primary 
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 Rico) 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 
70 S T A T . } 
PUBLIC LAW 5 4 0 - M A Y 28, 1956 
2K» 
in the United States and any expected enlargement in such consump-
tion predicated upon population trends, increased per capita con-
sumption, and other relevant factors. 
"APPORTIONMENT OF PRIMARY MARKET QUOTA 
"SEC. 380d. (a) The primary market quota for rice shall be appor-
tioned 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. 
"(b) The State primary market quota shall be apportioned by the 
Secretary among farms on the basis of the acreage allotment estab-
lished for each farm multiplied by the normal yield per acre for the 
farm. 
"REVIEW or 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 pro-
visions of sections 363 to 368, inclusive, of this Act. 
|2 stat.^6^ ^ ^^ 
1368. 
a PRICE SUPPORT 
"SEC 380f. (a) Notwithstanding any other provision of law, the 
Commodity Credit Corporation shall 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. 
"(b) Section 101 of the Agricultural Act of 1949, as amended, shall 
f\j|*^**i4*^f/* 
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. 
;; 
CERTIFICATES 
"SEC. 380g. (a) The Secretary of Agriculture shall for each market-
ing 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. 
"(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 pro-
ceeds therefrom. 
"(c) The provisions of section 385 of this Act shall be applicable 
j^iMc^sis. 
to certificates issued to producers under this section. 
"(d) The Commodity Credit Corporation shall issue and sell certifi-
cates to persons engaged in the processing of rough rice or the im-
porting of processed rice. Each such certificate shall be sold for an 
amount equal to the value thereof, as sj^ecified in subsection (e) of 
this section. 
69225 O - 5 7 - 1 8 (Vcl. 70) 
210 
PUBLIC LAW 540~MAY 28, 1966 
[70 STAT. 
"(e) The value of each certificate issued under 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 w^hich 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 ric« or the importa-
tion of processed rice pursuant to sections 380k and 3801 of this Act 
shall be redeemed by the Commodity Credit Corporation at the 
value thereof. 
"INVENTORY ADJUSTMENT PAYMENTS 
"SEC. 380h. To facilitate the transition from the price support pro-
gram 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 which a program is in effect under sections 380c 
through 380g (c) : Promded^ 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 esti-
mated 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. 
"RICE SET-ASIDE 
"SEC. 380i. All rough and processed rice in the inventories of Com-
modity^ 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 
68^at. 897. 
rice established pursuant to section 101 of the Agricultural Act 
of 1954. 
"EXEMPTIONS 
"SEC. 380]. The provisions of this subtitle shall not apply to non-
irrigated 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 Rico or Hawaii. 
"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 sufficient to cover such quantity of rough rice. 
"(b) The requirements of subsection (a) of this section shall not 
be applicable to the processing in Puerto Rico or Hawaii of rough 
rice grown in Puerto Rico or Hawaii, respectively. 
70 S T A T . ] 
PUBLIC LAW 540-MAY 28, 1956 
211 
"(c) Upon the exportation from the United States to any country 
other than Cuba of any processed rice with respect to 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 certifi-
cates for the rough rice equivalent of such processed rice. 
"IMPORT RESTRICTIONS 
"SEC. 3801. Each person who, on or after the beginning of the mar-
keting year for the first crop for which a program is in effect under 
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. 
u REGULAITONS 
"SEC. 380m. The Secretary shall prescribe regulations governing 
the issuance, redemption, acquisition, use, transfer, and disposition 
of certificates hereunder. 
" C I V I L PENALTIES 
"SEC. 380n. Any person who violates or attempts to violate, or who 
participates or aids in the violation of, any of tlie provisions of sec-
tions 380k or 3801 of this Act, or regulations prescribed by the Secre-
tary 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. 
REPORTS AND RECORDS 
"SEC. 380O. (a) The provisions of section 373 (a) of this Act shall 
pule 13% 
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. 
"(b) The provisions of section 373 (b) of the Act shall apply to 
all rice farmers who are subject to the provisions of this subtitle. 
(( 
DEFINiriONS 
"SEC. 380p. For the purposes of this subtitle— 
"(a) 'cooperator' shall have the same meaning as under the 
Agricultural Act of 1949, as amended. 
"ul*c**i428^.* 
"(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— 
"fl) whole grain rice, 
"(2) second head milled rice, 
"(3) screenings milled rice, 
"(4) brewers milled rice, 
"(5^ undermined rice or unpolished rice. 
"(6) brown rice, 
"(7) converted r 
"(8) vitaminized rice or enriched rice 
"(7) converted rice, malekized rice or parboiled rice, and 
212 
PUBLIC LAW 640-MAY 28, 1956 
ETO STAT. 
"(d) 'United States' means the several States, the Territories of 
Hawaii and Alaska, the District of Columbia, and the Common-
wealth of Puerto Rico. 
"(e) 'exporter' means the consignor named in the bill of lading 
under which the processed rice is exported: Provided^ however^ 
That any other person may be considered to be the exporter if 
the consignor named in th€ 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." 
NORMAL YIELD TOR KICE 
SEC. 502. Paragraph (13) of section 301 (b) of the Agricultural 
7\rec*i3(/i. 
Adjustment Act of 1938, as amended, is amended by (1) redesignating 
subparagraph (E) as subparagraph (G); and (2) striking out sub-
paragraph (D) and inserting in lieu thereof the following: 
" (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 
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 accord-
ance with regulations issued by the Secretary, taking into considera-
tion 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." 
TITLE VI—MISCELLANEOUS 
PRICE SUPPORTS—COTTTONSEED AND SOYBEANS 
7 use 1446. 
gj,^ (50^ (^) rj^i^lg J 
J Qf tjjg Agricultural Act of 1949, as amended, is 
amended by adding at the end thereof a new section as follows: 
"SEC. 203. Whenever the price of either cottonseed or soybeans is 
supported under this Act, the price of the other shall h^ supported at 
70 
S T A T . ] 
PUBLIC LAW 541-MAY 28, 1956 
such level as the Secretary determines will cause them to compete on 
equal terms on the market." 
(b) The amendment made by this section shall take effect with the 
1956 crop. 
218 
TRANSITIONAL PARITY FOR BASIC COMMODITIBS FROZEN DURING 1 9 5 7 
SEC. 602. Section 301 (a) (1) (E) (ii) of the Agricultural Adjust-
ment Act of 1938, as amended (7 U. S. C. 1301 (a) (1) (E) (ii)) is 
amended by inserting after "full calendar years" the following: "(not 
counting 1956 in the case of basic agricultural commodities) '. 
The 
Secretary shall make a thorough study of possible methods of improv-
ing the parity formula and report thereon^ with specific recommenda-
tions, including drafts of necessary legislation to carry 6ut such 
recommendations, to Congress not later than January 31,1957. 
Approved May 28, 1956. 
Report to Co n-
gress. 
Public Law 541 
CHAPTER 328 
AN ACT 
To provide for continuance of life insurance coverage under the Federal Em-
ployees' Group Life Insurance Act of 1954, as amended, in the case of employees 
receiving benefits under the Federal Employees' Compensation Act. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress a^sernbled. That section 6 of 
the Federal Employees' Group Life Insurance Act of 1954, as amended, 
is amended to read as follows: 
"(a) Each policy purchased under this Act shall contain a provi-
sion, in terms approved by the Commission, to the effect that any in-
surance thereunder on any employee shall cease upon his separation 
from the service or twelve months after discontinuance of his salary 
payments, whichever first occurs, subject to a provision which shall be 
contained in the policy for temporary extension of coverage and for 
conversion to an individual policy of life insurance under conditions 
approved by the Commission. 
"(b) If upon such date as the insurance would otherwise cease 
the employee retires on an immediate annuity and (1) his retirement 
is for disability or (2) he has completed fifteen years of creditable serv-
ice, as determined by the Commission, his life insurance only may, 
under conditions determined by the Commission, be continued without 
cost to him in the amounts for which he would have been insured from 
time to time had his salary payments continued at the same rate as 
on the date of cessation. 
Periods of honorable active service in the 
Army, Navy, Air Force, Marine Corps, or Coast Guard of the United 
States shall be credited toward the required fifteen years provided the 
employee has completed at least five years of civilian service. 
"(c) If upon such date as the insurance would otherwise cease the 
employee is receiving benefits under the Federal Employees' Compen-
sation Act because of disease or injury to himself, his life insurance 
may, as provided in subsection (b), ho. continued during the period 
he is in receipt of such benefits and held by the United States De-
partment of Labor to be unable to return to duty." 
SEC. 2. The amendment made by this Act shall become effective as 
of August 29,1954. 
Approved May 28, 1956. 
May 28. 1956 
[S. 3237] 
F e d e r a l 
e m -
p l o y e e s ' 
insur-
ance* 
68 Stat. 739. 
5 u s e 2095. 
Termination, etc. 
Effective date.