An act to increase the minimum price support loan rates for wheat, feed grains, and soybeans, to improve the farmer-held reserve program for wheat and feed grains, to establish a five-year food security wheat reserve, and for other purposes.
PL 96-494 (H.R.3765), enacted 12/03/1980

94 STAT. 2570 
PUBLIC LAW 96-494—DEC. 3, 1980 
Dec. 3, 1980 
[H.R. 3765] 
Agricultural Act 
of 1980. 
7 u s e 4001 note. 
7 u s e 601 note. 
Agricultural 
Trade 
Suspension 
Adjustment Act 
of 1980 
7 u s e 4001 note. 
Public Law 96-494 
96th Congress 
An Act 
To increase the minimum price support loan rates for wheat, feed grains, and 
soybeans, to improve the farmer-held reserve program for wheat and feed grains, 
to establish a five-year food security wheat reserve, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the "Agricultural x\ct of 1980". 
TITLE I—WALNUT AND OLIVE MARKETING ORDERS 
SEC. 101. Section 8c(6)(I) of the Agricultural Adjustment Act (7 
U.S.C. 608c(6)(I)), as reenacted and amended by the Agricultural 
Marketing Agreement Act of 1937, is amended— 
(1) by inserting "walnuts," before "or tomatoes"; and 
(2) by inserting "walnuts, olives," before "and Florida Indian 
River grapefruit". 
TITLE II—AGRICULTURAL TRADE SUSPENSION 
ADJUSTMENT ACT OF 1980 
SHORT TITLE 
SEC. 201. This title may be cited as the 
Suspension Adjustment Act of 1980". 
'Agricultural Trade 
7 u s e 1444c. 
7 u s e 1445b. 
7 u s e 1446. 
1981 CROPS OF FEED GRAINS, WHEAT, AND SOYBEANS 
SEC. 202. (a)(1) Section 105A(a) of the Agricultural Act of 1949 is 
amended by (A) striking out the comma after "$2.00 per bushel", and 
(B) striking out "through 1981 crops of corn," and inserting in lieu 
thereof "through 1980 crops of corn, and not less than $2.25 per 
bushel for the 1981 crop of corn,". 
(2) Section 105A(f)(l) of the Agricultural Act of 1949 is amended 
by striking out "November 15" and inserting in lieu thereof 
"November 1". 
(b) Section 107A(a) of the Agricultural Act of 1949 is amended by 
striking out "through 1981 crops of wheat," and inserting in lieu 
thereof "through 1980 crops of wheat, and not less than $3.00 per 
bushel for the 1981 crop of wheat,". 
(c) Section 201(e) of the Agricultural Act of 1949 is amended by 
inserting the following before the period at the end thereof: 
": Provided further, That the 1981 crop of soybeans shall be supported 
through loans and purchases at not less than $5.02 per bushel". 
PUBLIC LAW 96-494—DEC. 3, 1980 
94 STAT. 2571 
ADJUSTED PRICE SUPPORT LOAN LEVELS UNDER THE FARMER-HELD RE-
SERVE PROGRAM FOR THE 1980 AND 1981 CROPS OF WHEAT AND FEED 
GRAINS 
SEC. 203. (a) Section 110(b) of the Agricultural Act of 1949 is 7 use I445e 
amended by— 
(1) inserting the following before the period at the end of the 
first sentence: ": Provided, That the Secretary shall make avail-
able to producers for the 1980 and 1981 crops of wheat and feed 
grains price support loans under the producer storage program 
at such levels as the Secretary determines necessary to mitigate 
the adverse effects of the restrictions on the export of agricul-
tural products to the Union of Soviet Socialist Republics imposed 
on January 4, 1980, on the market prices producers receive for 
their crops, but at not less than $3.30 per bushel for wheat, $2.40 
per bushel for corn, and such levels for the other feed grains as 
the Secretary determines are fair and reasonable in relation to 
the minimum level for corn, taking into consideration, for barley, 
oats, and rye, the feeding value of the commodity in relation to 
corn and other factors specified in section 401(b) of this Act and, 7 USC 1421. 
for grain sorghums, the feeding value and average transporta-
tion costs to market of grain sorghums in relation to corn: 
Provided further, That the levels at which loans for the 1980 and 
1981 crops of wheat and feed grains are made available to 
producers under the preceding proviso shall not be used in 
determining the levels at which producers may repay loans and 
redeem commodities prior to the maturity dates of the loans 
under clause (5) of the second sentence of this subsection, or the 
levels at which the Secretary may call for the repayment of loans 
prior to their maturity dates under clause (6) of the second 
sentence of this subsection"; and 
(2) in clause (3) of the second sentence after "except that the 
Secretary may waive or adjust such interest", inserting a comma 
and the following: "and the Secretary shall waive such interest 
on loans made on the 1980 and 1981 crops of wheat and feed 
grains". 
(b) Subsection (a) of this section shall become effective October 1, 
1980, and any producers who, prior to such date, receive loans on the 
1980 crop of the commodity as computed under the Agricultural Act 
of 1949, as amended prior to the enactment of this Act, may elect 
after September 30, 1980, to receive loans as authorized under 
subsection (a) of this section. 
Effective date. 
7 USC 14456 
note. 
ADJUSTMENT OF THE RELEASE AND CALL LEVELS UNDER THE FARMER-
HELD RESERVE PROGRAM 
SEC. 204. Section 110(b) of the Agricultural Act of 1949 is amended 7 USC I445e. 
by amending clauses (5) and (6) of the second sentence to read as 
follows: "(5) conditions designed to induce producers to redeem and 
market the wheat or feed grains securing such loans without regard 
to the maturity dates thereof whenever the Secretary determines 
that the market price for the commodity has attained a specified 
level, as determined by the Secretary; and (6) conditions prescribed by 
the Secretary under which the Secretary may require producers to 
repay such loans, plus accrued interest thereon, refund amounts paid 
for storage, and pay such additional interest and other charges as 
may be required by regulation, whenever the Secretary determines 
that the market price for the commodity is not less than such 
appropriate level, as determined by the Secretary.". 
94 STAT. 2572 
PUBLIC LAW 96-494—DEC. 3, 1980 
MINIMUM LEVELS AT WHICH THE COMMODITY CREDIT CORPORATION MAY 
SELL STOCKS OF WHEAT AND FEED GRAINS 
7 use I445e. 
SEC. 205. Section 110(e) of the Agricultural Act of 1949 is amended 
b y -
(1) after "Notwithstanding any other provision of law,", insert-
ing "except as otherwise provided under section 302 of the Food 
Post, p. 2578. 
Security Wheat Reserve Act of 1980 and section 208 of the 
Post, p. 2573. 
Agricultural Trade Suspension Adjustment Act of 1980,"; 
(2) striking out "150 per centum of the then current level of 
price support for such commodity" and inserting in lieu thereof 
"105 per centum of the then current level at which the Secretary 
may call for repayment of producer storage loans on the commod-
ity prior to the maturity dates of the loans, as determined under 
clause (6) of the second sentence of subsection O
t
)
) of this section"; 
and 
(3) amending clause (3) to read as follows: 
"(3) sales of corn for use in the production of alcohol for motor 
fuel at facilities that— 
"(A) begin operation after January 4,1980, and 
"(B) whenever supplies of corn are not readily available, 
can produce alcohol from agricultural or forestry biomass 
feedstocks other than corn, 
when sold at not less than the price at which producers may 
repay producer storage loans and redeem corn prior to the 
maturity dates of loans, as determined under clause (5) of the 
second sentence of subsection O
t
)
) of this section, or, whenever the 
fuel conversion price (as defined in section 212 of the Agricul-
Post, p. 2578. 
tural Trade Suspension Adjustment Act of 1980) for corn exceeds 
such price, at not less than the fuel conversion price.". 
AUTHORITY TO USE THE FUNDS, FACILITIES, AND AUTHORITIES OF THE 
COMMODITY 
CREDIT CORPORATION TO PURCHASE 
AGRICULTURAL 
PRODUCTS INTENDED TO BE EXPORTED TO THE SOVIET UNION 
15 use 714c 
SEC. 206. Notwithstanding any other provision of law, the Secre-
^°^' 
tary of Agriculture may use, subject to such terms and conditions as 
the Secretary may deem appropriate, the funds, facilities, and 
authorities of the Commodity Credit Corporation in purchasing and 
handling agricultural products, other than grains, that— 
(1) were intended to be exported to the Union of Soviet Socialist 
Republics under contracts entered into prior to January 5,1980, 
but 
(2) cannot be exported under such contracts due to the imposi-
tion, on January 4,1980, of restrictions on the export of agricul-
tural products to the Union of Soviet Socialist Republics, 
in the same manner and under the same conditions as the Secretary 
purchases and handles grains under similar contracts and subject to 
the imposition of the same restrictions. 
SUPPLEMENTAL SET-ASIDE AUTHORITY 
SEC. 207. Effective for the 1981 crops of wheat, feed grains, upland 
cotton, and rice, the Agricultural Act of 1949 is amended by adding at 
the end of title I a new section 113 as follows: 
PUBLIC LAW 96-494—DEC. 3, 1980 
94 STAT. 2573 
SUPPLEMENTAL SET-ASIDE AUTHORITY 
"SEC. 113. Notwithstanding any other provision of law or prior 
announcement made by the Secretary to the contrary, effective for 
one or more of the 1981 crops of wheat, feed grains, upland cotton, 
and rice, the Secretary may announce and provide for a set-aside of 
cropland under section 101(h), 103(f)(ll), 105A(f), or 107A(f) of this 
title if the Secretary determines that such action is in the public 
interest as a result of the imposition of restrictions on the export of 
any such commodity by the President or other member of the 
executive branch of Government. In order to carry out effectively a 
set-aside program authorized under this section, the Secretary may 
make such modifications and adjustments in such program as the 
Secretary determines necessary because of any delay in instituting 
such program.". 
TRADE SUSPENSION RESERVES 
SEC. 208. Notwithstanding any other provision of law— 
(a) Whenever the President or other member of the executive 
branch of Government causes the export of any agricultural commod-
ity to any country or area of the world to be suspended or restricted 
for reasons of national security or foreign policy under the Export 
Administration Act of 1979 or any other provision of law and the 
Secretary of Agriculture determines that such suspension or restric-
tion will result in a surplus supply of such commodity that will 
adversely affect prices producers receive for the commodity, the 
Secretary may establish a gasohol feedstock reserve or a food security 
reserve, or both, of the commodity, as provided in subsections (c) and 
(d) of this section, if the commodity is suitable for stockpiling in a 
reserve. 
(b) Within thirty days after the export of any agricultural commod-
ity to a country or area is suspended or restricted as described in 
subsection (a) of this section, the Secretary of Agriculture shall 
announce whether a gasohol feedstock reserve or a food security 
reserve of the commodity, or both, will be established under this 
section and shall include in such announcement the amount of the 
commodity that will be placed in such reserves, which shall be that 
portion of the estimated exports of the commodity affected by the 
suspension or restriction, as determined by the Secretary, that should 
be removed from the market to prevent the accumulation of a surplus 
supply of the commodity that will adversely affect prices producers 
receive for the commodity. 
(c)(1) To establish a gasohol feedstock reserve under this section, 
the Secretary of Agriculture may acquire agricultural commodities 
(the export of which is suspended or restricted as described in 
subsection (a) of this section) that are suitable for use in the produc-
tion of alcohol for motor fuel through purchases from producers or in 
the market and by designation by the Secretary of stocks of the 
commodities held by the Commodity Credit Corporation, and to pay 
such storage, transportation, and related costs as may be necessary to 
permit maintenance of the commodities in the reserve for the 
purposes of this section and disposition of the commodities as pro-
vided in paragraph (2) of this subsection. 
(2) The Secretary of Agriculture may dispose of stocks of agricul-
tural commodities acquired under paragraph (1) of this subsection 
only through sale— 
(A) for use in the production of alcohol for motor fuel, at not 
less than the fuel conversion price (as defined in section 212 of 
7 u s e 1445h. 
7 u s e 1441, 
1444, 1444c, 
1445b. 
7 u s e 4001. 
50 u s e app. 2401 
note. 
Gasohol 
feedstock or food 
security 
reserves. 
Agricultural 
commodities, 
acquisition. 
Commodity 
stock disposal. 
94 STAT. 2574 
PUBLIC LAW 96-494—DEC. 3, 1980 
Post, p. 2578. 
7 u s e 1445e. 
Agricultural 
commodities, 
acquisition. 
Post, p. 2578. 
Determinations. 
Stock 
replenishment. 
this title) for the commodity involved: Provided, That, for wheat 
and feed grains, if the fuel conversion price for the commodity 
involved is less than the then current release price at which 
producers may repay producer storage loans on the commodity 
and redeem the commodity prior to the maturity dates of the 
loans, as determined under clause (5) of the second sentence of 
section 110(b) of the Agricultural Act of 1949, the Secretary may 
dispose of stocks of the commodity for such use only through sale 
at not less than the release price: Provided further, That such 
sales shall only be made to persons for use in the production of 
alcohol for motor fuel at facilities that, whenever supplies of the 
commodity are not readily available, can produce alcohol from 
other agricultural or forestry biomass feedstocks; or 
(B) for any other use, when sales for use under clause (A) of this 
paragraph are impracticable, (i) if there is a producer storage 
program in effect for the commodity, at not less than 105 per 
centum of the then current level at which the Secretary may call 
for repayment of producer storage loans on the commodity prior 
to the maturity dates of the loans, as determined under clause (6) 
of the second sentence of section 110(b) of the Agricultural Act of 
1949, or, (ii) if there is no producer storage program in effect for 
the commodity, at not less than the average market price 
producers received for the commodity at the time the trade 
suspension was imposed. 
(d)(1) To establish a food security reserve under this section, the 
Secretary of Agriculture may acquire agricultural commodities (the 
export of which is suspended or restricted as described in subsection 
(a) of this section) that are suitable for use in providing emergency 
food assistance and urgent humanitarian relief through purchases 
from producers or in the market and by designation by the Secretary 
of stocks of the commodities held by the Commodity Credit Corpora-
tion, and to pay such storage; transportation, and related costs as 
may be necessary to permit maintenance of the commodities in the 
reserve for the purposes of this section and disposition of the 
commodities as provided in paragraph (2) of this subsection. 
(2) The provisions of subsections (c), (d), (e), (f), and (g)(2) of section 
302 of the Food Security Wheat Reserve Act of 1980 shall apply to 
commodities in any reserve established under paragraph (1) of this 
subsection, and (except for the last sentence of subsection (c) of 
section 302) the references to "wheat" in such subsections of section 
302 shall be deemed to be references to "agricultural commodities". 
(3) Any determination by the President or the Secretary of Agricul-
ture under this section shall be final. 
(e) The funds, facilities, and authorities of the Commodity Credit 
Corporation shall be used by the Secretary of Agriculture in carrying 
out this section, except that any restriction applicable to the acquisi-
tion, storage, or disposition of Commodity Credit Corporation owned 
or controlled commodities shall not apply with respect to the acquisi-
tion, storage, or disposition of agricultural commodities under this 
section. 
(f) The Secretary of Agriculture shall establish safeguards to 
ensure that stocks of agricultural commodities held in the reserves 
established under this section shall not be used in any manner or 
under any circumstance to unduly depress, manipulate, or curtail the 
free market. 
(g) Whenever stocks of agricultural commodities are disposed of or 
released from reserves established under this section, as provided in 
PUBLIC LAW 96-494—DEC. 3, 1980 
94 STAT. 2575 
subsections (c)(2) and (d)(2) of this section, the reserves may not be 
replenished with replacement stocks. 
(h) The provisions of this section shall become effective with respect 
to any suspension of, or restriction on, the export of agricultural 
commodities, as described in subsection (a) of this section, imple-
mented after the date of 
enactment of this Act. 
ALCOHOL PROCESSOR GRAIN RESERVE 
SEC. 209. (a) As used in this section— 
Definitions. 
(1) The term "Secretary" means the Secretary of Agriculture. '
^ use 4002. 
(2) The term "processor" means any person engaged within the 
United States in the business of manufacturing grain into 
alcohol for use as a fuel either by itself or in combination with 
some other product. 
(3) The terms "agricultural grain" and "grain" mean any 
agricultural commodity (A) that is suitable for processing into 
alcohol for use as a fuel, and (B) with respect to which a price 
support operation is in effect. 
(4) The term "producer storage program" means the producer 
storage program provided for under section 110 of the Agricul-
ture Act of 1949. 
7 use 1445e. 
(5) The term "small scale biomass energy project" shall have 
the same meaning as defined in section 203(19) of the Energy 
Security Act. 
^nte, p. 683. 
O
t
)
) To assist processors in obtaining a dependable supply of grain at 
reasonable prices, the Secretary may formulate and administer a 
program under which processors purchasing and storing grain 
needed by them for manufacturing into alcohol for use as a fuel may 
obtain a loan from the Secretary on such grain. Loans under this Loans. 
section may be made available only to processors that (1) operate 
small scale biomass energy projects financed in whole or in part by 
the United States Government or any agency thereof, and (2) as 
determined by the Secretary, are otherwise unable to obtain a 
dependable supply of grain at reasonable prices for use in such 
projects. 
(c) Except as otherwise provided in this section, loans made under 
this section to carry out the processor grain reserve program may be 
made on the same terms and conditions as loans made to carry out 
the producer storage program. 
(d) The amount of the loan that the Secretary may make to an 
eligible processor at any time on any quantity of grain purchased by 
the processor shall be determined by multiplying the price support 
loan rate in effect for such grain at the time the loan is made times 
the quantity of grain purchased by the processor. The quantity of 
grain on which one or more loans may be outstanding at any time in 
the case of any processor may not exceed the estimated quantity of 
grain needed by such processor for one year of operation. 
(e) Whenever any quantity of grain stored in the processor grain Regulations. 
reserve under this section is removed from storage by a processor, the 
processor may be required to replace such grain with an equal 
quantity, within such period of time as the Secretary shall prescribe 
by regulation, or repay that portion of the loan represented by the 
quantity of 
grain removed from storage. 
(f) Grain on which an eligible processor has received a loan under Grain usage. 
this section may not be used for any purpose other than the manufac-
ture of alcohol for use as a fuel, and the Secretary shall establish such 
safeguards as the Secretary deems necessary to assure that such 
79-194 O—81—pt. 2 
82 : QL3 
94 STAT. 2576 
PUBLIC LAW 96-494—DEC. 3, 1980 
Loans. 
Authority of 
Agriculture 
Secretary. 
grain is not used for any other purpose and is not used in any manner 
that would unduly depress, manipulate, or curtail the free market in 
such grain. 
(g) Loans made under this section shall be made subject to such 
terms and conditions and subject to such security as the Secretary 
deems appropriate, except that such loans may not be made as 
nonrecourse loans. 
(h) In carrying out the processor grain reserve program under this 
section, the Secretary may— 
(1) provide for the payment to processors of such amounts as 
the Secretary determines appropriate to cover the cost of storing 
grain held in the processor grain reserve, except that in no event 
may the rate of the payment paid under this clause for any 
period exceed the rate paid by the Secretary under the producer 
storage program for the same period; and 
(2) prescribe conditions under which the Secretary may require 
processors to repay loans made under this section, plus accrued 
interest thereon, refund amounts paid to the processors for 
storage, and require the processors to pay such additional inter-
est and other charges as may be required by regulation in the 
event any processor fails to abide by the terms and conditions of 
the loan or any regulation prescribed under this section. 
(i) The Secretary shall announce the terms and conditions of the 
processor grain reserve program as far in advance of making loans as 
practicable. 
(j) The Secretary may use the facilities of the Commodity Credit 
Corporation to carry out this section. 
(k) There are authorized to be appropriated such sums as may be 
necessary to carry out this section. Any loans made under this section 
shall be made to such extent and such amounts as provided in 
appropriation Acts. The authority to make loans under this section 
shall expire five years after the effective date of this title. 
7 u s e 4003. 
Report to 
President and 
Congress. 
Contents. 
STUDY OF THE POTENTIAL FOR EXPANSION OF UNITED STATES AGRICUL-
TURAL EXPORT MARKETS AND THE USE OF AGRICULTURAL EXPORTS IN 
OBTAINING NEEDED MATERIALS 
SEC. 210. (a) The Secretary of Agriculture, in consultation with the 
United States Trade Representative and any other appropriate 
agency of the United States Government as determined by the 
Secretary, shall perform a study of the potential for expansion of 
United States agricultural export markets and the use of agricultural 
exports in obtaining natural resources or other commodities and 
products needed by the United States. The Secretary shall complete 
the study and submit to the President and Congress a report on the 
study before June 30,1981. 
(b) In performing the study, the Secretary shall determine for the 
next five years— 
(1) world food, feed, and fiber needs; 
(2) estimated United States and world food, feed, and fiber 
production capabilities; 
(3) potential new or expanded foreign markets for United 
States agricultural products; 
(4) the potential for the development of international agree-
ments for the exchange of United States agricultural products 
for natural resources, including energy sources, or other com-
modities and products needed by the United States; and 
PUBLIC LAW 96-494—DEC. 3, 1980 
94 STAT. 2577 
(5) the steps that the United States must take to (A) increase 
agricultural export trade, and (B) obtain needed natural 
resources or other commodities and products in exchange for 
agricultural products, to the maximum extent feasible. 
FOOD BANK DEMONSTRATION PROJECTS 
SEC. 211. (a) The Secretary of Agriculture shall carry out demon- 7 USC 4004. 
stration projects to provide agricultural commodities and other foods 
that might not otherwise be used, or might be more effectively used 
by organizations assisted under this section, t© community food banks 
for emergency food box distribution to needy individuals and fami-
lies. Notwithstanding any other provisions of law, the Secretary shall 
make available for purposes of such demonstration projects, agricul-
tural commodities and other foods available to the Secretary under 
section 416 of the Agricultural Act of 1949, section 709 of the Food 
and Agriculture Act of 1965, and section 32 of the Act of August 24, 
1935 (7 U.S.C. 612c). For purposes of distributing agricultural com-
modities and other foods to community food banks under this section, 
the Secretary may, in consultation with State agencies, use food 
distribution systems currently used to distribute agricultural com-
modities and other foods under the National School Lunch Act and 
Child Nutrition Act of 1966. The Secretary shall select food banks, in 
consultation with the Director of the Community Services Adminis-
tration, for participation in the demonstration projects under this 
section. Food banks shall be selected for participation so as to ensure 
adequate geographic distribution of emergency food box programs in 
at least two but not more than seven Department of Agriculture 
regions. 
(b)(1) No food bank may participate in the demonstration projects 
conducted under this section unless an application therefor is submit-
ted to and approved by the Secretary. Such application shall be 
submitted in such form and manner and shall contain such informa-
tion as the Secretary shall prescribe. 
(2) Each food bank participating in the demonstration projects 
under this section shall establish a recordkeeping system and inter-
nal procedures to monitor the use of agricultural commodities and 
other foods provided under this section. The Secretary shall develop 
standards by which the feasibility and effectiveness of the projects 
shall be measured, and shall conduct an ongoing review of the 
effectiveness of the projects. 
(c) The Secretary shall determine the quantities and types of 
agricultural commodities and other foods to be made available under 
this section. The Secretary may prescribe regulations regarding the 
designation of eligible participants in the projects and any other 
regulations necessary to carry out this section. 
(d) The Secretary shall submit a report to Congress on October 1, Report to 
1982, regarding the demonstration projects carried out under this Congress, 
section. Such report shall include an analysis and evaluation of 
Federal participation in food bank emergency food programs, the 
effectiveness of such participation, and the feasibility of continuing 
such participation. The Secretary shall also include in such report 
any recommendations regarding improvements in Federal assistance 
to community food banks, including assistance for administrative 
expenses and transportation. 
(e) The sale of food provided under this section shall be prohibited Food sales, 
and any person who receives any remuneration in exchange for food prohibition. 
7 USC 1431. 
7 USC 1446a-l. 
42 USC 1751 
note. 
42 USC 1771 
note. 
Applications. 
Recordkeeping 
and review. 
94 STAT. 2578 
PUBLIC LAW 96-494—DEC. 3, 1980 
Appropriation 
authorization. 
7 u s e 4005. 
7 u s e 4001 note. 
Food Security 
Wheat Reserve 
Act of 1980. 
7 u s e 1736f-l 
note. 
provided under this section shall be subject to a fine of not more than 
$1,000 or imprisonment for not more than six months, or both, 
(f) There is authorized to be appropriated to carry out this section 
$356,000. 
DEFINITION OF FUEL CONVERSION PRICE 
SEC. 212. As used in this title, the phrase "fuel conversion price" 
means the price for an agricultural commodity determined by the 
Secretary of Agriculture that will permit gasoline-alcohol mixtures 
using alcohol produced from the commodity to be competitive in price 
with unleaded gasoline priced at the point it leaves the refinery, 
adjusted for differences in octane rating, taking into consideration 
the energy value of the commodity and other appropriate values 
designed to represent, on a national average basis, the value of 
byproducts also recoverable from the commodity; the direct costs and 
capital recovery costs for a grain alcohol distillery capable of produc-
ing forty million gallons of alcohol and recovering byproducts 
annually; and Federal tax and other Federal incentives applicable to 
alcohol used for fuel. 
EFFECTIVE DATE 
SEC. 213. Except as otherwise provided herein, this title shall 
become effective October 1,1980, or the date of enactment, whichever 
is later. 
TITLE III—FOOD SECURITY WHEAT RESERVE ACT OF 1980 
SHORT TITLE 
SEC. 301. This title may be cited as the "Food Security Wheat 
Reserve Act of 1980". 
7 u s e 1736f-l. 
Release of 
Wheat. 
7 u s e 1691 note. 
7 u s e 1731. 
FOOD SECURITY WHEAT RESERVE 
SEC. 302. (a) To provide for a wheat reserve solely for emergency 
humanitarian food needs in developing countries, the President shall 
establish a reserve stock of wheat of up to four million metric tons for 
use for the purposes specified in subsection (c) of this section. 
(b)(1) The reserve stock of wheat under this section shall be 
established initially by designation for that purpose by the Secretary 
of Agriculture of wheat owned by the Commodity Credit Corporation. 
(2) Subject to the provisions of subsection (i) of this section, stocks of 
wheat to replenish the reserve may be acquired (A) through pur-
chases from producers or in the market if the Secretary of Agricul-
ture determines that such purchases will not unduly disrupt the 
market, and (B) by designation by the Secretary of stocks of wheat 
otherwise acquired by the Commodity Credit Corporation. Any use of 
funds to acquire wheat through purchases from producers or in the 
market to replenish the reserve must be authorized in appropriation 
Acts. 
(c) Notwithstanding any other provision of law, stocks of wheat 
designated or acquired for thg reserve under this section may be 
released by the President to provide, on a donation or sale basis, 
emergency food assistance to developing countries at any time that 
the domestic supply of wheat is so limited that quantities of wheat 
cannot be made available for disposition under the Agricultural 
Trade Development and Assistance Act of 1954, except for urgent 
humanitarian purposes, under the criteria of section 401(a) of that 
Act. Notwithstanding the provisions of the preceding sentence, up to 
PUBLIC LAW 96-494—DEC. 3, 1980 
94 STAT. 2579 
three hundred thousand metric tons of wheat may be released from 
the reserve under this section in any fiscal year, without regard to the 
domestic supply situation, for use under title II of the Agricultural 
Trade Development and Assistance Act of 1954 in providing urgent 
humanitarian relief in any developing country suffering a major 
disaster, as determined by the President, whenever the wheat needed 
for relief cannot be programed for such purpose in a timely manner 
under the normal means of obtaining commodities for food assistance 
due to circumstances of unanticipated and exceptional need. Wheat 
released from the reserve may be processed in the United States and 
shipped to a developing country in the form of flour when conditions 
in the recipient country require such processing in the United States, 
(d) Wheat released from the reserve for the purposes of subsection 
(c) of this section shall be made available under the Agricultural 
Trade Development and Assistance Act of 1954 to meet famine or 
other urgent or extraordinary relief requirements, except that sec-
tion 401(a) of that Act, with respect to determinations of availability, 
shall not be applicable thereto. 
(e) The Secretary of Agriculture shall provide for the management 
of stocks of wheat in the reserve as to location and class of wheat 
needed to meet emergency situations and for the periodic rotation of 
stocks of wheat in the reserve to avoid spoilage and deterioration of 
such stocks, using programs authorized by the Agricultural Trade 
Development and Assistance Act of 1954 and any other provision of 
law, but any quantity of wheat removed from the reserve for the 
purposes of this subsection shall be promptly replaced with an 
equivalent quantity of wheat. 
(f) Stocks of wheat in the reserve shall not be considered a part of 
the total domestic supply (including carryover) for the purposes of 
subsection (c) of this section or for the purposes of administering the 
Agricultural Trade Development and Assistance Act of 1954 and 
shall not be subject to any quantitative limitations on exports that 
may be imposed under section 7 of the Export Administration Act of 
1979. 
(g)(1) The funds, facilities, and authorities of the Commodity Credit 
Corporation shall be used by the Secretary of Agriculture in carrying 
out this section, except that any restriction applicable to the acquisi-
tion, storage, or disposition of Commodity Credit Corporation owned 
or controlled commodities shall not apply with respect to the acquisi-
tion, storage, or disposal of wheat for or in the reserve. 
(2) Effective beginning October 1, 1981, the Commodity Credit 
Corporation shall be reimbursed from funds made available for 
carrying out the Agricultural Trade Development and Assistance Act 
of 1954 for wheat released from the reserve that is made available 
under such Act, such reimbursement to be made on the basis of actual 
costs incurred by the Commodity Credit Corporation with respect to 
such wheat or the export market price of wheat (as determined by the 
Secretary) as of the time the wheat is released from the reserve for 
such purpose, whichever is lower. Such reimbursement may be made 
from funds appropriated for that purpose in subsequent years. 
(h) Any determination by the President or the Secretary of Agricul-
ture under this section shall be final. 
(i) The authority to replace stocks of wheat to maintain the reserve 
under this section shall expire September 30,1985, after which stocks 
eleased from the reserve may not be replenished. Stocks of wheat 
remaining in the reserve after September 30, 1985, shall be disposed 
of by release for use in providing for emergency food needs in 
developing countries as provided in this section. 
7 use 1721. 
7 use 1691 note. 
7 use 1731. 
50 use app. 
2406. 
7 use 1691 note. 
Determinations. 
Stock 
replenishment, 
expiration date. 
94 STAT. 2580 
PUBLIC LAW 96-494—DEC. 3, 1980 
EFFECTIVE DATE 
7 use I736f-i 
SEC. 303. Except as otherwise provided herein, this title shall 
^°^- 
become effective October 1,1980, or the date of enactment, whichever 
is later. 
Approved December 3, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-1276 (Comm. on Agriculture). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Sept. 15, considered and passed House. 
Oct. 1, considered and passed Senate, amended. 
Nov. 17, House concurred in Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 49: 
Dec. 3, Presidential statement.