An Act to improve and protect farm prices and farm income, to increase farmer participation in the development of farm programs, to adjust supplies of agricultural commodities in line with the requirements therefore, to improve distribution and expand expo
PL 87-128 (S.1643), enacted 08/08/1961

294 
PUBLIC LAW 87- 128-AUG. 8, 1961 
[ 75 8 TAT . 
foundation herds of cattle (including producing dairy cattle), sheep, 
and goats, and their offspring, in any area of the United States where, 
because of flood, drought, fire, hurricane, earthquake, storm, disease, 
insect infestation, or other catastrophe in such areas, the Secretary 
determines that an emergency exists which warrants such assistance, 
such feed to be made available only to persons who do not have, and 
are unable to obtain through normal channels of trade without undue 
financial hardship, sufficient feed for such livestock." 
Approved August 7, 1961. 
Public Law 87-128 
August 8, 1961 
A N A C T 
' 
To improve and protect farm prices and farm income, to increase farmer partici-
pation in tlie development of farm programs, to adjust supplies of agricultural 
commodities in line with the requirements therefor, to improve distribution 
and expand exports of agricultural commodities, to liberalize and extend farm 
credit services, to protect the interest of consumers, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
of^Vei"^*"'*^ ^
*
^
* United States of America in Congress assembled^ That this Act may be 
cited as the "Agricultural Act of 1961". 
DECLARATION OF POLICY 
SEC. 2. In order more fully and effectively to improve, maintain, 
and protect the prices and incomes of farmers, to enlarge rural pur-
chasing power^ to achieve a better balance between supplies of agricul-
tural commodities and the requirements of consumers therefor, to 
preserve and strengthen the structure of agriculture, and to revitalize 
and stabilize the overall economy at reasonable costs to the Govern-
ment, it is hereby declared to be the policy of Congress to— 
(a) afford farmers the opportunity to achieve parity of income 
with other economic groups by providing them with the means to 
develop and strengthen their bargaining power in the Nation's 
economy; 
(b) encourage a commodity-by-commodity approach in the 
solution of farm problems and provide the means for meeting 
varied and changing conditions peculiar to each commodity; 
(c) expand foreign trade in agricultural commodities with 
friendly nations, as defined in section 107 of Public Law 480, 83d 
68 Stat. 457. 
Cou^ress, as amended (7 U.S.C. 1707), and in no manner either 
subsidize the export, sell, or make available any subsidized agri-
cultural commodity to any nations other than such friendly na-
tions and thus make full use of our agricultural abundance; 
(d) utilize more effectively our agricultural productive capac-
ity to improve the diets of the Nation's needy persons; 
(e) recognize the importance of the family farm as an efficient 
unit of pr(xiuction and as an economic base for towns and cities 
in rural areas and encourage, promote, and strengthen this form 
of farm enterprise; 
•(f) facilitate and improve credit services to farmers by revis-
ing, expanding, and clarifying the laws relating to agricultural 
credit; 
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
295 
(g) assure consumers of a continuous, adequate, and stable 
supply of food and fiber at fair and reasonable prices; 
(h) reduce the cost of farm programs, by preventing the accu-
mulation of surpluses; and 
(i) use surplus farm commodities on hand as fully as practi-
cable as an incentive to reduce production as may be necessary to 
bring supplies on hand and firm demand in balance. 
TITLE I—SUPPLY ADJUSTMENT AND PRICE 
STABILIZATION 
SEC. 101. This title may be cited as the "Agricultural Enabling 
citation of title. 
Amendments Act of 1961". 
SUBTITLE A—CONSULTATION ON AGRICULTURAL PROGRAMS 
SEC. 102. (a) Notwithstanding any other provision of law, when-
ever the Secretary of Agriculture determines that additional legisla-
tive authority is necessary to develop new agricultural programs 
involving supply adjustments or marketing regulations through mar-
keting orders, marketing quotas, or price support programs with 
respect to any agricultural commodity, or to make substantial revisions 
in any existing agricultural legislation or programs, he majr consult 
and advise with farmers, farm organizations, and appropriate com-
modity organizations, if any, for the commodity involved, to review 
the problems involved, the need for new legislation, and the provisions 
which should be included in any such proposed legislation. 
(b) In addition, whenever and to the extent he deems such action 
necessary or desirable, the Secretary of Agriculture may consult and 
advise with any person or group of persons, or organizations, includ-
ing farmers, handlers, processors, or others connected with the produc-
tion, processing, handling, or use of the commodity involved, with 
respect to the problems involved and need for legislation and the pro-
visions which should be included in any such proposed legislation. 
(c) In order that the Secretary of Agriculture may be assured of 
being able to obtain the advice of any such person or organization, 
he is authorized, whenever he determines such action necessary, to pay 
for each day's attendance at meetings and while traveling to and from 
such meetings, transportation expenses and in lieu of subsistence, a 
per diem in the amount authorized under the Travel Expense Act of 
1949 for Federal employees. No salary or other compensation shall 
be paid. 
SEC. 103. If the Secretary of Agriculture, after such consultation 
and receipt of such advice as provided in section 102 of this Act, deter-
mines that additional legislative authority is necessary to develop agri-
cultural programs involving supply adjustments or marketing regula-
tions through the use of marketing orders, marketing quotas or price-
support programs, he shall formulate specific recommendations in the 
form of proposed legislation which shall be submitted to the Congress 
together with a statement setting forth the purpose and need for such 
proposed legislation. 
SEC. 104. Nothing in this Act shall be deemed to limit the authority 
of the Secretary of Agriculture under other provision of law or to 
establish or consult with advisory committees. 
Post, 
p. 339. 
5 u s e 835 note. 
quota. 
296 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T . 
SUBTITLE B—1962 WHEAT PROGRAM 
SEC. 121. Section 334 of the Agricultural Adjustment Act of 1938, 
52 Stat. 54; 72 as amended, is amended by inserting (1) after (c) and adding a new 
Stat. 79. 
subparagraph (2) following subparagraph (c) (1) to read as follows: 
Iwationlficreage 
"(2) Notwithstanding any other provision of law, each old or new 
auotment. 
farm acTcage allotment for the 1962 crop of wheat as determined on 
the basis of a minimum national acreage allotment of fifty-five million 
acres shall be reduced by 10 per centum. In the event notices of farm 
acreage allotments for the 1962 crop of wheat have been mailed to 
farm operators prior to the effective date of this subparagraph (2), 
new notices showing the required reduction shall be mailed to farm 
operators as soon as practicable." 
SEC. 122. (a) In lieu of the provisions of item (1) of Public Law 74, 
55 Stat. 203. 
Sevcuty-seventh Congress, as amended (Y U.S.C. 1340(1)), the fol-
lowing provisions shall apply to the 1962 crop of wheat: 
Wheat marketing 
" ( i j jf a national marketing quota for wheat is in effect for the 
marketing year beginning July 1, 1962, farm marketing quotas shall 
be in effect for the crop of wheat which is normally harvested in 
1962. The farm marketing quota for such crop of wheat shall be 
the actual production of the acreage planted to such crop of wheat 
on the farm less the farm marketing excess. The farm marketing 
excess shall be an amount equal to twice the normal yield of wheat 
per acre established for the farm multiplied by the number of acres 
of such crop of wheat on the farm in excess of the farm acreage allot-
ment for such crop unless the producer, in accordance with regulations 
prescribed by the Secretary and within the time prescribed therein, 
establishes to the satisfaction of the Secretary the actual production 
of such crop of wheat on the farm. 
If such actual production is so 
established, the farm marketing excess shall be such actual production 
less the actual production of the farm wheat acreage allotment based 
upon the average yield per acre for the entire 1962 wheat acreage on 
the farm: Provided^ however^ That the farm marketing excess shall 
not be larger than the amount by which the actual production, so estab-
lished, exceeds the normal production of the farm wheat acreage 
allotment." 
Marketing pen- 
(b) Notwithstanding the pTovisious of item (2) of Public Law 74, 
ss'stat. 204. 
Seventy-seventh Congress, as amended (7 U.S.C. 1340(2)), the rate 
of penalty on wheat of the 1962 crop shall be 65 per centum of the 
parity price per bushel of wheat as of May 1,1962. 
(c) In lieu of the provisions of item (3) of Public Law 74, Seventy-
seventh Congress, as amended (7 U.S.C. 1340(3)), the following pro-
visions shall apply to the 1962 crop of wheat: 
jwarketing ex- 
"^3) The farm marketing excess for wheat shall be regarded as 
available for marketing, and the penalty and the storage amount or 
amounts of wheat to be delivered to the Secretary shall be computed 
upon twice the normal production of the excess acreage. 
If the farm 
marketing excess so computed is adjusted downward on the basis of 
actual production as heretofore provided the difference between the 
amount of the penalty or storage computed on the basis of twice the 
normal production and as computed on actual production shall be 
returned to or allowed the producer or a corresponding adjustment 
made in the amount to be delivered to the Secretary if the producer 
cess. 
75 S T A T , ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
207 
elects to make such delivery. 
The Secretary shall issue regulations 
under which the farm marketing excess of wheat for the farm shall 
•be stored or delivered to him. 
Upon failure to store, or deliver to 
the Secretary, the farm marketing excess within such time as may 
be determined under regulations prescribed by the Secretary the 
penalty computed as aforesaid shall be paid by the producer. 
Any 
wheat delivered to the Secretary hereunder shall become the property 
of the United States and shall be disposed of by the Secretary for 
relief purposes in the United States or friendly foreign countries or 
in such other manner as he shall determine will divert it from the 
normal channels of trade and commerce." 
(d) Item (7) of Public Law 74, Seventy-seventh Congress, as 
amended (7 U.S.C. 1340(7)), is amended to read as follows: 
"(7) A farm marketing quota on any crop of wheat shall not be 
applicable to any farm on which, under regulations prescribed by the 
Secretary, the actual acreage planted to wheat for harvest of such 
crop does not exceed 15 acres: Provided^ however^ That a farm market-
ing quota on the 1962 crop of wheat shall be applicable to any farm 
on which the acreage of wheat exceeds the smaller of (1) 13.5 acres, 
(2) the highest number of acres actually planted to wheat on the 
or 
farm for harvest in any of the calendar years 1959, 1960, or 1961." 
(e) Subsection (d) of section 335 of the Agricultural Adjustment 
Act of 1938, as amended (7 U.S.C. 1335(d)), is hereby repealed effec-
tive with the 1962 crop of wheat. 
(f) Section 336 of the Agricultural Adjustment Act of 1938, as 
amended (7 U.S.C. 1336), is amended by adding at the end thereof 
the following: "Notwithstanding any other provision hereof, farm-
ers who have not produced in excess of 13.5 acres of wheat in at least 
one of the years 1959, I960, or 1961 shall not be entitled to vote in the 
referendum conducted with respect to the national marketing quota 
for the marketing year beginning July 1,1962." 
SEC. 123. Price support for the 1962 crop of wheat shall be made 
available, as provided in section 101 of the Agricultural Act of 1949, 
as amended, except that price support shall be made available only to 
cooperators, only in the commercial wheat-producing area, and if 
marketing quotas are in effect for the 1962 crop of \meat, wheat of 
such crop shall be eligible for price support only if the producers on 
the farm on which the wheat is produced participate in the special 
1962 wheat program formulated under section 124 to the extent pre-
scribed by the Secretary. 
SEC. 124. (a) If marketing quotas are in effect for the 1962 crop 
of wheat, producers on any farm, except a farm on which a new farm 
wheat allotment is established for the 1962 crop, in the commercial 
wheat-producing area shall be entitled to payments determined as 
provided in subsection (b) upon compliance with the conditions here-
inafter prescribed : 
(1) Such producers shall divert from the production of wheat an 
acreage on the farm equal to either (i) 10 per centum of the highest 
actual acreage of wheat planted on the farm for harvest in any of the 
years 1959, 1960, or 1961: Provided^ That such acreage in each of 
such years did not exceed 15 acres, or (ii) 10 per centum of the farm 
acreage allotment for the 1962 crop of wheat which would be in effect 
except for the reduction thereof as provided in section 334(c) (2) of 
the Agricultural Adjustment Act of 1938, as amended. 
55 Stat. 204. 
Marketing quota. 
Acreage. 
Repeal. 
52 Stat. 55. 
Referendum. 
Price support. 
Payment to pro-
ducers. 
Ant9, p. 296. 
64207 0-62—22 
298 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T . 
(2) In 1962, such diverted acreage shall be devoted to conservation 
uses including summer fallow, approved by the Secretary, and such 
measures shall be taken as the Secretary may deem appropriate to 
keep such diverted acreage free from insects, weeds, and rodents: 
Provided^ That such diverted acreage may be devoted to castor beans, 
guar, safflower, sunflower, or sesame, if designated by the Secretary, 
subiect to the condition that no payment shall be made with respect 
to diverted acreage devoted to any such commodity. 
(3) The total acreage of cropland on the farm in 1962 devoted to 
soil-conserving uses, including summer fallow and idle land, but ex-
cluding the acreage diverted as provided above and acreage diverted 
under the special 1962 program for feed grains, shall not be less than 
the total average acreage of cropland devoted to soil-conserving uses 
including summer fallow and idle land on the farm in 1959 and 1960. 
Certification by the producer with respect to such acreage may be 
accepted as evidence of compliance with the foregoing provision. 
The total average acreage devoted to soil-conserving uses, including 
summer fallow and idle land, in 1959 and 1960 shall be subject to 
adjustment to the extent the Secretary determines appropriate for 
abnormal weather conditions or other factors, affecting production, 
established crop-rotation practices on the farm, changes m the con-
stitution of the farm, participation in other Federal farm programs, 
or to give effect to the provisions of law relating to release and re-
apportionment or preservation of history. 
(4) If the diversion of acreage is made pursuant to the provisions 
of (1) (i) of this subsection (a), the actual acreage of wheat planted 
on the farm for harvest in 1962 shall not exceed 90 per centum of the 
highest actual acreage of wheat planted on the farm for harvest in 
any of the years 1959, 1960, or 1961; and if the diversion of acreage 
is made pursuant to the provisions of (1) (ii) of this subsection (a), 
the farm shall be in compliance with the 1962 farm wheat acreage 
allotment. 
(b) (1) Upon compliance with the conditions prescribed in sub-
section (a) producers on the farm shall be entitled to payments which 
shall be made by Commodity Credit Corporation in cash or wheat equal 
to 45 per centum of the value, at the basic county support rate per 
bushel for No. 1 wheat of the 1961 crop for the county in which the 
farm is considered as being located for the administration of farm 
marketing quotas for wheat in effect at the time the payment rates for 
the 1962 special wheat program are established, adjusted to reflect 
changes between the national support rates for the 1961 and 1962 crops, 
of the number of bushels equal to the adjusted yield per acre of wheat 
for the farm, multiplied by the number of diverted acres other than 
acres devoted to castor beans, guar, safflower, sunflower, or sesame. 
(2) The Secretary may make such adjustments in yields for the 
1959 and 1960 crop years as he determines necessary to correct for 
abnormal factors affecting production, and to give due consideration 
to tillable acreage, crop rotation practices, type of soil, soil and water 
conservation measures, and topography. 
To the extent that a pro-
ducer proves the actual yields for the farm for the 1959 and 1960 crop 
years, such yields shall be used in making determinations. 
(3) The Secretary shall provide by regulations for the sharing of 
payments among producers on the farm on a fair and equitable basis. 
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
299 
The medium of payment shall be determined by the Secretary. 
If 
payments are made in wheat, the value of the payments in cash shall 
be converted to wheat at the market price of wheat as determined by 
Commodity Credit Corporation. 
Wheat received as payment-in-kind 
may be marketed without penalty but shall not be eligible for price 
support. 
(c) (1) Producers who divert acreage on the farm under subsection 
(a) may divert additional acreage on the farm not in excess of the 
larger of three times the amount diverted under subsection (a) or such 
acreage as will bring the total acreage diverted to 10 acres: Provided^ 
That the total acreage diverted under subsection (a) and this sub-
section (c) shall not exceed the larger of (i) the highest actual acreage 
of wheat planted on the farm for harvest for any of the years 1959, 
1960, or 1961, but not to exceed 10 acres or (ii) the 1962 wheat acreage 
allotment. 
(2) Payments shall be made with respect to the acreage diverted 
under this subsection (c) in accordance with the terms and conditions 
prescribed in subsection (a) : Provided^ That (i) 60 per centum shall 
be substituted for 45 per centum in computing the amount of the pay-
ment, (ii) the acreage diverted under this subsection (c) shall be 
added to and deemed to be acreage diverted under subsection (a) for 
the purposes of paragraphs (2) and (3) of subsection (a), and (iii) 
if the diversion under subsection (a) is made pursuant to (1) (i) of 
said subsection, the actual acreage planted to wheat for harvest on the 
farm in 1962, shall be reduced below the highest actual acreage of 
wheat planted on the farm for harvest in any of the years 1959,1960, 
or 1961, by the total amount of acres diverted under subsection (a) 
and this subsection (c), or, if the diversion under subsection (a) is 
made pursuant to (1) (ii) of said subsection, the 1962 wheat acreage 
on the farm shall be reduced by the total amount of acres diverted 
under subsection (a) and this subsection (c) below whichever of the 
following acreages is the larger— 
(A) the farm acreage allotment for the 1962 crop of wheat 
which would be in effect except for the reduction thereof as pro-
vided in section 334(c) (2) of the Agricultural Adjustment Act 
of 1938, as amended; 
^"*«' P- 296. 
(B) the highest actual acreage of wheat planted on the farm 
for harvest for any of the years 1959, 1960, or 1961, but not to 
exceed fifteen acres. 
(d) Any acreage diverted from the production of wheat to con-
servation uses for which payment is made under the program formu-
lated pursuant to this section shall be in addition to any acreage di-
verted to conservation uses for which payment is made under any 
other Federal program except that the foregoing shall not preclude 
the making of cost-sharing payments under the agricultural conser-
vation program or the Great Plains program for conservation prac-
tices carried out on any acreage devoted to soil-conserving uses under 
the program formulated pursuant to this section. 
(e) The Secretary may provide for adjusting any payment on 
account of failure to comply with the terms and conditions of the 
program formulated under this section. 
(f) Not to exceed 50 per centum of any payment to producers 
under this section may be made in advance of determination of 
performance. 
300 
PUBUC LAW 87-128-AUG. 8, 1961 
[76 S T A T . 
(g) The program formulated pursuant to this section may include 
such terms and conditions, in addition to those specificaUy provided 
for herein, as the Secretary determines are desirable to effectuate the 
purposes of this section. 
(h) Wheat stored to avoid or postpone a marketing quota penalty 
"us*c*i28i. 
under the Agricultural Adjustment Act of 1938, as amended and sup-
plemented, shall not be released from storage for underplanting based 
upon acreage diverted under subsection (a) or (c) above, and in de-
termining production of the 1962 crop of wheat for the purpose of 
releasing wheat from storage on account of underproduction the 
normal yield of the diverted acres shall be deemed to be actual pro-
duction of 1962 wheat. 
(i) The Secretary is authorized to promulgate such regulations as 
ifi&j be necessary to carry out the provisions of this section. 
(j) The Commodity Credit Corporation is authorized to utilize its 
capital funds and other assets for the purpose of making the pay-
ments authorized herein and to pay administrative expenses necessary 
in carrying out this section during the period ending June 30, 1962. 
There is authorized to be appropriated such amounts as may be neces-
* 
sary thereafter to pay such administrative expenses. 
AcTe^^e'^^'n'ot- 
^EC. 125. Section 334(e) of the Agricultural Adjustment Act of 
ments. 
1938, as amended, relating to increased allotments for durum wheat, 
7\j^*c**i334. 
is amended to read as follows: 
"(e) If, with respect to any of the 1962, 1963, and 1964 crops of 
wheat, the Secretary determines that the acreage allotments of farms 
producing durum wheat are inadequate to provide for the produc-
tion of a sufficient quantity of durum wheat to satisfy the demands 
therefor (but not including export demand involving a subsidy by, 
or a loss to, the Federal Government), he shall increase the farm 
marketing quotas and acreage allotments for such crop of wheat for 
farms located in counties in the States of North Dakota, Minnesota, 
Montana, South Dakota, and California, designated by the Secretary 
as counties which (1) are capable of producing durum wheat (class 
I I ) , and (2) have produced such wheat for commercial food products 
during one or more of the five years immediately preceding the year 
in which such crop is harvested. 
The Secretary shall determine the 
percentage factor by which the average acreage of durum wheat (class 
II) produced during the last two-year period for which statistics are 
available (excluding any increases in durum wheat acreage as a result 
of increases in wheat acreage allotments authorized by this subsection) 
must be increased to satisfy such demand. 
The wheat acreage allot-
ment for any farm established for such crop without regard to this 
subsection, after reduction in the case of the 1962 crop as required by 
Ante. p. 296. 
scctiou 334(c) (2), (hereinafter referred to as the 'original allotment') 
shall be increased by an acreage computed by multiplying the average 
acreage of durum wheat (class II) on the farm during such two-year 
period (excluding any increase in the acreage of durum wheat as a 
result of an increase in the wheat acreage allotment for the farm au-
thorized by this subsection) by such percentage factor: Provided^ 
That such increased allotment shall not exceed the cropland on the 
farm well suited to wheat. 
The increase in the wheat acreage allot-
ment for any farm shall be conditioned upon the production of an 
acreage of durum wheat (class II) at least equal to the average acre-
76 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
301 
age of such wheat produced during such two-year period plus the 
number of acres by which the allotment is increased. Any increases 
in wheat acreage allotments authorized by this subsection shall be in 
addition to the National, State, and county wheat acreage allotments, 
and such increases shall not be considered in establishing future State^ 
county, and farm allotments. The provisions of paragraph (6) of 
Public Law 74, Seventy-seventh Congress (7 U.S.C. 1340(6)), and 
section 326(b) of this Act, relating to the reduction of the storage 
amount of wheat shall apply to the allotment for the farm estab-
lished without regard to this subsection and not to the increased allot-
ment under this subsection. As used in this subsection the term 
'durum wheat' means durum wheat (class II) other than the varieties 
known as 'Golden Ball' and 'Peliss'. Any farm receiving an in-
creased allotment under this subsection shall not be required as a 
condition of eligibility for price support, or permitted, to participate 
in the special 1962 wheat program formulated under section 124 of 
the Agricultural Act of 1961. The Secretary shall give growers and 
millers of durum wheat and manufacturers of semolina products an 
opportunity to present their views and recommendations, prior to 
making any determination hereunder." 
SUBTITLE C—1962 FEED GRAIN PROGRAM 
SEC. 131. Section 105(c) of the Agricultural Act of 1949 is amended 
by adding the following new paragraphs (3) and (4): 
"(3) The level of price support for the 1962 crop of corn shall 
be established by the Secretary at such level not less than 65 per 
centum of the parity price therefor as the Secretary may de-
termine. 
Price support for corn, grain sorghums, and barley 
shall be made available on not to exceed the normal production 
of the 1962 acreage of com, grain sorghums, and barley of each 
eligible farm based on its average yield per acre for the 1959 and 
1960 crop acreage. 
"(4) The Secretary shall require as a condition of eligibility 
for price support on the 1962 crop of com and grain sorghums 
that the producer shall participate in the special agricultural 
conservation program for 1962 for com and grain sorghums to 
the extent prescribed by the Secretary and (except in the case of 
a producer of malting barley as hereinafter described) shall not 
knowingly devote an acreage on the farm to barley in excess of 
the average acreage devoted on the farm to barley in 1959 and 
1960. The Secretary shall require as a condition of eligibility 
for price support on the 1962 crop of barley that the producer 
shall participate in the special agricultural conservation program 
for 1962 for barley to the extent prescribed by the Secretary and 
shall not knowingly devote an acreage on the farm to corn and 
grain sorghums m excess of the average acreage devoted on the 
farm to corn and grain sorghums in 1959 and 1960: Provided^ 
That no producer of malting barley shall be required to partici-
pate in the special agricultural conservation program for 1962 
for barley if such producer has previously produced a malting 
variety of barley, plants barley only of an acceptable malting 
55 Stat. 204; 52 
Stat. 51. 
7 u s e 1326. 
"Durum wheat." 
7 u s e 144lnote. 
Price support. 
Ante, p. 6. 
16 use SdOp 
302 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T . 
variety for harvest in 1962, does not knowingly devote an acre-
age on the farm to barley in excess of 110 per centum of the 
average acreage devoted on the farm to barley in 1959 and 1960, 
and does not knowingly devote an acreage on the farm to com 
and grain sorghums in excess of the average acreage devoted on 
the farm to corn and grain sorghums in 1959 and 1960." 
SEC. 132. Section 16 of the Soil Conservation and Domestic Allot-
ment Act, as amended, is amended by adding the following new sub-
section : 
" (d) Notwithstanding any other provision of law— 
"(^1) The Secretary shall formulate and carry out a special 
agricultural conservation program for 1962, without regard to 
provisions which would be applicable to the regular agricultural 
conservation program, under which, subject to such terms and 
conditions as the Secretary determines, conservation payments 
in amounts determined by the Secretary to be fair and reason-
able shall be made to producers who divert acreage from the 
production of corn and grain sorghums, and barley, respectively, 
to an approved conservation use and increase their average acre-
age of cropland devoted in 1959 and 1960 to designated soil 
conserving crops or practices including summer fallow and idle 
land by an equal amount: Provided, however, That any producer 
may elect in lieu of such payment to devote such diverted acreage 
to castor beans, guar, safflower, sunflower, or sesame, if desig-
nated by the Secretary. 
In order to be eligible for a payment, 
a producer (other than a producer of malting barley as described 
Ante, p. 301- 
in sectiou 105(c) (4) of the Agricultural Act of 1949) who par-
ticipates in the special agricultural conservation program of 
1962 for corn and grain sorghums must not knowingly devote an 
acreage on the farm in excess of the average acreage devoted 
on the farm to barley in 1959 and 1960, and a producer who 
participates in the special agricultural conservation program for 
1962 for barley must not knowingly devote an acreage on the 
farm to corn and grain sorghums in excess of the average 
acreage devoted on the farm to corn and grain sorghums m 
1959 and 1960. Such special agricultural conservation program 
shall require the producer to take such measures as the Secretary 
may deem appropriate to keep such diverted acreage free from 
insects, weeds, and rodents. The acreage eligible for payments 
in cash or in an equivalent amount in kind under such conser-
vation program shall be an acreage equivalent to 20 per centum 
of the average acreage on the farm planted to corn and grain 
sorghums, or barley, in the crop years 1959 and 1960 or up to 
twenty acres, whichever is greater. 
Such payments in cash or 
in kind at the basic county support rate for the 1961 crop in 
effect at the time payment rates for the special feed grain pro-
gram for 1962 are established, adjusted to reflect any changes 
between the national support rates for the 1961 and 1962 crops 
may be made on an amount of the commodity not in excess of 
50 per centum of the normal production of the acreage diverted 
from the commodity on the farm based on its adjusted average 
yield per acre for the 1959 and 1960 crop acreage. 
Payments 
in kind only may be made by the Secretary for the diversion of 
up to an additional 20 per centum of the average acreage on 
the farm planted to corn and grain sorghums, or barley, in the 
crop years 1959 and 1960. Payments in kind on such additional 
acreage may be made at the basic county support rate for the 
1961 crop in effect at the time payments rates for the special 
feed gram program for 1962 are established, adjusted to reflect 
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
303 
any changes between the national support rates for the 1961 and 
1962 crops on an amount of corn and grain sorghums, or barley, 
not in excess of 60 per centum of the normal production of the 
acreage diverted from the commodity on the farm based on its 
adjusted average yield per acre for the 1959 and 1960 crop acre-
age. The Secretary may make such adjustments in acreage 
and yields for the 1959 and 1960 crop years as he determines 
necessary to correct for abnormal factors affecting production, 
and to give due consideration to tillable acreage, crop rotation 
practices, type of soil, soil and water conservation measures, 
and topography. To the extent that a producer proves the 
actual acreages and yields for the farm for the 1959 and 1960 
crop years, such acreages and yields shall be used in making 
determinations. The Secretary may make not to exceed 50 per 
centum of any payments to producers in advance of determina-
tion of performance. 
"(2) There are hereby authorized to be appropriated such 
amounts as may be necessary to enable the Secretary to carry 
out this section 16(d). 
Obligations may be incurred m advance 
of appropriations therefor and the Commodity Credit Corpora-
tion is authorized to advance from its capital fimds such sums as 
may be necessary to pay administrative expenses in connection 
with such program during the fiscal year ending June 30, 1962, 
and to pay such costs as may be incurred in carrying out section 
133 of the Agricultural Act of 1961. 
" (3) The Secretary shall provide by regulations for the sharing 
of payments under this subsection among producers on the farm 
on a fair and equitable basis and in keeping with existing 
contracts." 
SEC. 133. Payments in cash shall be made by Commodity Credit 
(yorporation and payments in kind shall be made through the issuance 
of negotiable certificates which the Commodity Credit Corporation 
shall redeem for feed grains and, notwithstanding any other provi-
sion of law, the Commodity Credit Corporation shall, in accordance 
with regulations prescribed by the Secretary, assist the producer in 
the marketing of such certificates at such time and in such manner as 
the Secretary determines will best effectuate the purposes of the special 
feed grain program for 1962 authorized by this Act. In the case of 
any certificate not presented for redemption within thirty days of the 
date of its issuance, reasonable costs of storage and other carrying 
charges, as determined by the Secretary, for the period beginning 
thirty days after its issuance and ending with the date of its presenta-
tion for redemption shall be deducted from the value of the certificate. 
SEC. 134. Notwithstanding any other provision of law, the Secre-
tary may place such limits on the extent that producers may partici-
pate in the special feed grain conservation program for 1962 author-
ized by this Act as he determines necessary because of an emergency 
created by drought or other disaster, or in order to prevent or alleviate 
a shortage in the supply of corn, grain sorghums, or barley. 
SUBTITLE D—MARKETING ORDERS 
SEC. 141. The Agricultural Adjustment Act, as reenacted and 
amended by the Agricultural Marketing Agreement Act of 1937, as 
amended, is further amended as follows: 
(1) Section 2 is amended by adding at the end thereof a new para-
graph (5) reading as follows: 
"(5) Through the exercise of the power conferred upon the 
Secretary of Agriculture under this title, to continue for the 
Appropriation, 
Payments. 
L i m i t at ion 
emergency. 
48 
Stat. 31:50 
Stat. 246. 
7 u s e 601 note, 
674 note. 
7 u s e 60:5. 
304 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 STAT. 
remainder of any marketing season or marketing year, such reg-
ulation pursuant to any order as will tend to avoid a disruption 
of the orderly marketing of any commodity and be in the public 
interest, if the regulation of such commodity under such order 
has been initiated during such marketing season or marketing 
year on the basis of its need to effectuate the policy of this title." 
7*us*c*608a.' 
(^) Scctiou 8a (5) is amended to read as follows: 
"(5) Any person exceeding any quota or allotment fixed for 
him under this title by the Secretary of Agriculture and any 
other person knowingly participating or aiding in the exceeding 
of such quota or allotment shall forfeit to the United States a 
sum equal to the value of such excess at the current market price 
for such commodity at the time of violation, which forfeiture 
shall be recoverable in a civil suit brought in the name of the 
United States." 
68^stat. 90^6. 
(3) Sectiou 8c(2) is amended— 
^ 
c 6 8c. 
^^^ by inserting " ( A ) " after "applicable only to"; 
(b) by inserting after "grapefruit," where it first appears 
"cherries, apples, or cranberries,"; 
(c) by striking out "and Idaho, and not including fruits, other 
than olives and grapefruit, for canning or freezing)" and insert-
ing in lieu thereof "Idaho, New York, Michigan, Maryland, New 
Jersey, Indiana, California, Maine, Vermont, New Hampshire, 
Rhode Island, Massachusetts, and Connecticut, and not including 
fruits for canning or freezing other than olives, grapefruit, 
cherries, cranberries, and apples produced in the States named 
above except Washington, Oregon, and Idaho)"; 
(d) by striking out "soybeans,"; and 
(e) by striking the period at the end and inserting in lieu 
thereof the following: "; and (B) any agricultural commodity 
(except honey, cotton, rice, wheat, corn, grain sorghums, oats, 
barley, rye, sugarcane, sugarbeets, wool, mohair, livestock, soy-
beans, cottonseed, flaxseed, poultry (but not excepting turkeys), 
eggs (but not excepting turkey hatching eggs), fruits and vege-
tables for canning or freezing, and apples), or any regional or 
market classification thereof, not subject to orders under (A) of 
this paragraph, but not the products (including canned or frozen 
commodities or products) thereof. No order issued pursuant to 
this section shall be effective as to cherries, apples, or cranberries 
for canning or freezing unless the Secretary of Agriculture deter-
mines, in addition to other required findings and determinations, 
that the issuance of such order is approved or favored by proces-
sors who, during a representative period determined by the Sec-
retary, have engaged m canning or freezing such commodity for 
market and have frozen or canned more than 50 per centum of the 
total volume of the commodity to be regulated which was canned 
or frozen within the production area, or marketed within the 
marketing area, defined in such order, during such representative 
period. No order issued pursuant to this section shall be appli-
cable to peanuts produced in more than one of the following pro-
duction areas: the Virginia-Carolina production area, the South-
east production area, and the Southwest production area. 
If the 
Secretary determines that the declared policy of the title will be 
better achieved thereby 
(i) the commodities of the same 
general class and used wholly or in part for the same purposes 
may be combined and treated as a single commodity and (ii) the 
portion of an agricultural commodity devoted to or marketed for 
a particular use or combination of uses, may be treated as a sepa-
rate agricultural commodity. All agricultural commodities and 
• 1 . 
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
305 
products covered hereby shall be deemed specified herein for the 
purposes of section 8c (6) and (7) of this title." 
' use eosc. 
(4) Section 8c (19) is amended to read as follows: 
s o st at. 24 7. 
"(19) For the purpose of ascertaining whether the issuance of an 
Producer ref-
order is approved or favored by producers or processors, as required *'*" "™' 
under the applicable provisions of this title, the Secretary may conduct 
a referendum among producers or processors and in the case of an order 
other than an amendatory order shall do so. The requirements of ap-
proval or favor under any such provision shall be held to be complied 
with if, of the total number of producers or processors, or the total 
volume of production, as the case may be, represented in such refer-
endum, the percentage approving or favoring is equal to or in excess 
of the percentage required under such provision. The terms and con-
ditions of the proposed order shall be described by the Secretary in the 
ballot used in the conduct of the referendum. 
The nature, content, 
or extent of such description shall not be a basis for attacking the 
legality of the order or any action relating thereto. Nothing in this 
subsection shall be construed as limiting representation by cooperative 
associations as provided in subsection (12) of this section." 
(5) Section 8e is amended to read as follows: 
hibf^'"*^^'*" ^'°' 
"Notwithstanding any other provision of law, whenever a market- 
68 suit. 907. 
ing order issued by the Secretary of Agriculture pursuant to section 8G 
^ ^^^ ^°®« 
of this Act contains any terms or conditions regulating the grade, size, 
quality, or maturity of tomatoes, avocados, mangoes, limes, grapefruit, 
green peppers, Irish potatoes, cucumbers, oranges, onions, walnuts, 
dates, or eggplants produced in the United States the importation 
into the United States of any such commodity, other than dates for 
processing, during the period of time such order is in effect shall be 
prohibited unless it complies with the grade, size, quality, and maturity 
provisions of such order or comparable restrictions promulgated here-
under : Provided, That this prohibition shall not apply to such com-
modities when shipped into continental United States from the Com-
monwealth of Puerto Rico or any Territory or possession of the United 
States where this Act has force and effect: Provided further, 
That 
whenever two or more such marketing orders regulating the same 
agricultural commodity produced in different areas of the United 
States are concurrently in effect, the importation into the United States 
of any such commodity, other than dates for processing, shall be pro-
hibited unless it complies with the grade, size, quality, and maturity 
provisions of the order which, as determined by the Secretary of 
Agriculture, regulates the commodity produced in the area with which 
the imported commodity is in most direct competition. 
Such pro-
hibition shall not become effective until after the giving of such notice 
as the Secretary of Agriculture determines reasonable, which shall 
not be less than three days. In determining the amount of notice that 
is reasonable in the case of tomatoes the Secretary of Agriculture shall 
give due consideration to the time required for their transportation 
and entry into the United States after picking. Whenever the Secre-
tary of Agriculture finds that the application of the restrictions under 
a marketing order to an imported commodity is not practicable because 
of variations in characteristics between the domestic and imported 
commodity he shall establish with respect to the imported commodity, 
other than dates for processing, such grade, size, quality, and maturity 
restrictions by varieties, types, or other classifications as he finds will 
be equivalent or comparable to those imposed upon the domestic com-
modity under such order. 
The Secretary of Agriculture may pro-
mulgate such rules and regulations as he deems necessary, to carry out 
the provisions of this section. Any person who violates any pro-
vision if this section or of any rule, regulation, or order promulgated 
306 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T , 
Ante, p. 304< 
49 Stat. 753. 
7 u s e 608c. 
Price supports. 
7 u s e 1782. 
68 Stat. 455. 
7 u s e 1701. 
73 
Stat. 
6 0 6; 
Ante, p. 64. 
7 u s e 1703. 
68. Stat. 456. 
7 u s e 1704. 
73 Stat. 607. 
hereunder shall be subject to a forfeiture in the amount prescribed 
in section 8a(5) or, upon conviction, a penalty in the amount pre-
scribed in section 8c (14) of the Act, or to both such forfeiture and 
penalty." 
SUBTITLE E—^WOOL 
SEC. 151. Section 703 of the National Wool Act of 1954, as amended 
(68 Stat. 910, 72 Stat. 994), is amended by striking from the second 
sentence thereof "1962" and inserting in lieu thereof "1966". 
TITLE II—AGRICULTUKAL TRADE DEVELOPMENT 
SEC. 201. Title I of the Agricultural Trade Development and Assist-
ance Act of 1954, as amended, is further amended as follows: 
(1) Section 101 is amended by adding at the end thereof a new sub-
section to read as follows: 
"(f) obtain rates of exchange applicable to the sales of commodities 
under such agreements which are not less favorable than the rates at 
which United States Government agencies can buy currencies from the 
United States disbursing officers in the respective countries." 
(2) Effective January 1, 1962, section 103(b) is amended to read as 
follows: 
"(b) Agreements shall not be entered into under this title during 
the period beginning January 1, 1962, and ending December 31, 1964, 
which will call for appropriations to reimburse the Commodity Credit 
Corporation in a total amount in excess of $4,500,000,000: Provided, 
That agreements shall not be entered into during any calendar year of 
such period which will call for appropriations to reimburse Commod-
ity Credit Corporation in amounts in excess of $2,500,000,000." 
(3) Section 104 is amended— 
(a) by inserting after the words "foreign currencies" in the in-
troductory clause, the following: ", including principal and inter-
est from loan repayments,"; 
(b) by striking out in the final proviso in such section the lan-
guage beginning with the words "for the purpose" and ending 
with the words "specified in" and inserting in lieu thereof the 
words "pursuant to"; 
(c) by adding after subsection (r) the following new subsec-
tion (s) :i 
"(s) For the sale for dollars to American tourists under such 
terms and conditions as the President may prescribe;"; 
(d) by inserting in the second sentence of subsection (a) after 
the word "made" where it first appears the words "each year" and 
after the word "be" where it first appears the words "set aside in 
the amounts and kinds of foreign currencies specified by the Sec-
retary of Agriculture and"; and by striking out from the third 
sentence of subsection (a) the words "Particular regard shall be 
given to provide" and inserting in lieu thereof the words "Pro-
vision shall be made"; and by striking out from the third sen-
tence of subsection (a) the word "may" and inserting in lieu 
thereof the words "the Secretary of Agriculture determines to"; 
and by inserting in the third sentence after the word "thereof" 
the following: "(not less than 2 per centum)"; and by inserting 
after the third sentence a new sentence as follows: "Such sums 
shall be converted into the types and kinds of foreign curren-
cies as the Secretary deems necessary to carry out the provi-
sions of this subsection and such sums shall be deposited to a 
special Treasury account and shall not be made available or 
expended except for carrying out the provisions of this subsec-
tion" ; and by striking out from the last sentence of subsection (a) 
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
307 
the words "agreements may be entered into" and by inserting 
in lieu thereof "the Secretary of Agriculture is authorized and 
directed to enter into agreements". 
(4) The first sentence of section 106 is amended by striking out "or 
7\rs*c*i706^ 
may reasonably be expected to be" and inserting "at the time of 
exportation or donation". 
(5) Section 109 is amended by striking out "1961" and substituting 
3
^
i
o
V
?
*
*
i fno * 
"1964" 
I'oy-
SEC. 202. Title I I of the Agricultural Trade Development and As-
sistance Act of 1954, as amended, is further amended as follows: 
(1) Section 203 is amended (a) by deleting the first sentence and 
^s stat. 458; 73 
substituting the following: "Programs of asssistance shall not be 
7 use 1723. 
undertaken under this title during any calendar year beginning Janu-
ary 1, 1961, and ending December 31, 1964, which call for appropria-
tions of more than $300,000,000 to reimburse the Commodity Credit 
Corporation for all costs incurred in connection with such programs 
(including the Corporation's investment in commodities made avail-
able), plus any amount by which programs of asssistance undertaken 
in the preceding calendar year have called or will call for appropria-
tions to reimburse the Commodity Credit Corporation in amounts less 
than were authorized for such purpose during such preceding year 
by this title as in eifect during such preceding year."; and (b) by 
deleting "such" the first time it appears in the second sentence. 
(2) Section 204 is amended by striking out "1961" and substitut- 
^a^stat. soe. 
ing "1964". 
' ^^ ^''^^' 
SEC. 203. In the conduct of foreign market development programs, 
the Secretary of Agriculture is authorized to credit contributions 
from individuals, firms, associations, agencies, and other groups, and 
the proceeds received from space rentals, and sales of products and 
materials at exhibitions, to the appropriations charged with the cost 
of acquiring such space, products, and materials. 
T I T L E III—AGRICULTUEAL CREDIT 
SEC. 301. (a) This title may be cited as the "Consolidated Farmers 
citation o
f title. 
Home Administration Act of 1961". 
(b) The Congress hereby finds that the statutory authority of the 
Secretary of Agriculture, hereinafter referred to m this title as the 
"Secretary," for making and insuring loans to farmers and ranchers 
should be revised and consolidated to provide for more effective credit 
services to farmers. 
SUBTITLE A—REAL ESTATE LOANS 
SEC. 302. The Secretary is authorized to make and insure loans 
under this subtitle to farmers and ranchers in the United States and 
in Puerto Rico and the Virgin Islands who (1) are citizens of the 
United States, (2) have a farm background and either training or 
farming experience which the Secretary determines is sufficient to 
assure reasonable prospects of success in the proposed farming oper-
ations, (3) are or will become owner-operators of not larger than fam-
ily farms, and (4) are unable to obtain sufficient credit elsewhere to 
finance their actual needs at reasonable rates and terms, taking into 
consideration prevailing private and cooperative rates and terms in 
the community in or near which the applicant resides for loans for 
similar purposes and periods of time. 
SEC. 303. Loans may be made or insured under this subtitle for 
acquiring, enlarging, or improving farms, including farm buildings, 
land and water development, use and conservation, refinancing exist-
ing indebtedness, and for loan closing costs. In making or insuring 
Land and water 
development. 
308 
PUBLIC LAW 87-12»-AUG. 8, 1961 
1
^
7
6 STAT. 
loans for farm purchase, the Secretary shall give preference to per-
sons who are married or have dependent families and, wherever prac-
ticable, to persons who are able to make initial downpayments, or who 
are owners of livestock and farm implements necessary successfully 
to carry on farming operations. 
SEC. 304. Loans may also be made or insured under this subtitle to 
any farmowners or tenants without regard to the requirements of 
section 302 (1), (2), and (3) for the purposes only of land and water 
development, use and conservation. 
tatio° ^ " 1 i« i- 
SEC. 305. The Secretary shall make or insure no loan under sections 
302, 303, and 304 which would cause (a) the unpaid indebtedness 
against the farm or other security at the time the loan is made to 
exceed $60,000 or the normal value of the farm or other securitj^, or 
(b) the loan to exceed the amount certified by the county committee. 
In determining the normal value of the farm, the Secretary shall con-
sider appraisals made by competent appraisers under rules established 
by the Secretary. 
Such appraisals shall take into consideration both 
the normal agricultural value and the normal market value of the 
farm. 
SEC. 306. (a) The Secretary also is authorized to make or insure 
loans to associations, including corporations not operated for profit 
and public and quasi-public agencies, to provide for the application 
or establishment of soil conservation practices, the conservation, devel-
opment, use, and control of water and the installation or improvement 
of drainage facilities, all primarily for serving farmers, ranchers, 
farm tenants, farm laborers, and rural residents, and to furnish finan-
cial assistance or other aid in planning projects for such purposes. 
No such loans shall be made or insured which would cause an associ-
ation's unpaid principal indebtedness under this section and the Act 
68^stat?7*35l*72 ^^ August 28, 1937, as amended, to exceed $500,000 in the case of 
Stat. 841. ' 
direct loans and $1,000,000 in the case of insured loans at any one time. 
590x^^^ 5^°'" 
(b) The service provided or made available through any such 
association shall not be curtailed or limited by inclusion of the area 
served by such association within the boundaries of any municipal 
corporation or other public body, or by the granting of any private 
franchise for similar service within such area during the term of such 
loan; nor shall the happening of any such event ibe the basis of requir-
ing such association to secure any franchise, license, or permit as a 
condition to continuing to serve the area served by the association at 
the time of the occurrence of such event. 
K e p a y m ent 
SEC. 307. (a) The period for repayment of loans under this subtitle 
^" ° ' 
shall not exceed forty years. The Secretary shall from time to time 
establish the interest rate or rates at which loans for various purposes 
will be made or insured under this subtitle but not in excess of 5 per 
centum per annum. The borrower shall pay such fees and other 
charges as the Secretary may require. 
Security. 
^j^^ rpj^^ Secretary shall take as security for the obligations entered 
into in connection with loans, mortgages on farms with respect to 
which such loans are made or such other security as the Secretary may 
require, and for Obligations in connection with loans to associations 
under section 306, shall take liens on the facility or such other security 
as he may determine to be necessary. 
Such security instruments shall 
constitute liens running to the United States notwithstanding the fact 
that the notes may be held by lenders other than the United States. 
SEC. 308. Loans under this subtitle may be insured by the Secretary, 
aggregating not more than $150,000,000 in any one year, whenever 
76 S T A T . ] 
PUBLIC LAW 87-128-AUG.8, 1961 
309 
funds are advanced or a loan is purchased by a lender other than the 
United States. In connection with insurance 6i loans, the Secretary— 
(a) is authorized to make agreements with respect to the serv-
icing of loans insured hereunder and to purchase such loans on 
such terms and conditions as he may prescribe, except that no 
agreement shall provide for purchase by the Secretary at a date 
sooner than three years from the date of the note; and 
(b) shall retain out of payments by the borrower a charge at a 
rate determined by the Secretary from time to time equivalent to 
not less than one-half of 1 per centum per annum on the principal 
unpaid balance of the loan. 
Any contract of insurance executed by the Secretary under this sub-
title shall be an obligation supported by the full faith and credit of the 
United States and incontestable except for fraud or misrepresentation 
of which the holder has actual knowledge. 
SEC. 309. (a) The fund established pursuant to section 11(a) of the cfeditSns" ""'** 
Bankhead-Jones Farm Tenant Act, as amended, shall hereafter be FUI^. 
'*'"*•*"*=« 
called the Agricultural Credit Insurance Fund and is hereinafter in 
7°u^*c*icio5a* 
this subtitle referred to as the "fund". The fund shall remain avail-
able as a revolving fund for the discharge of the obligations of the 
Secretary under agreements insuring loans under this subtitle and 
loans and mortgages insured under prior authority. 
(b) Moneys in the fund not needed for current operations shall be 
dej)osited in the Treasury of the United States to the credit of the fund 
or invested in direct obligations of the United States or obligations 
guaranteed by the United States. The Secretary may purchase with 
money in the fund any notes issued by the Secretary to the Secretary 
of the Treasury for the purpose of obtaining money f0|r the fund. 
(c) The Secretary is authorized to make and issue notes to the 
Secretary of the Treasury for the purpose of obtaining funds necessary 
for discharging obligations under this section and for authorized 
expenditures out of the fund. 
Such notes shall be in such form and 
denominations and have such maturities and be subject to such terms 
and conditions as may be prescribed by the Secretary with the approval 
of the Secretary of the Treasury. Such notes shall bear interest at a 
rate fixed by the Secretary of the Treasury, taking into consideration 
the current average market yield of outstanding inarketable obliga-
tions of the United States having maturities comparable to the notes 
issued by the Secretary under this subtitle. 
The Secretary of the 
Treasury is authorized and directed to purchase any notes of the Secre-
tary issued hereunder, and, for that purpose, £he Secretary of the 
Treasury is authorized to use as a public debt tr?insaction the proceeds 
from the sale of any securities issued under th^ Second Liberty Bond 
Act, as amended, and the purposes for which such securities may be 
4o stat. :s88. 
issued under such Act, as amended, are extended to include the pur- ^^ "^^ '^^' 
chase of notes issued by the Secretary. All redemptions, purchases, 
and sales by the Secretary of the Treasury of such notes shall be 
treated as public debt transactions of the United States. 
(d) Notes and security acquired by the Secretary in connection with 
loans insured under this subtitle and under prior authority shall 
become a part of the fund. 
Notes may be held in the fund and col-
lected in accordance with their terms or may be sold by the Secretary 
with or without agreements for insurance thereof at the balance due 
thereon, or on such other basis as the Secretary may determine from 
time to time. All net proceeds from such collections, including sales 
of notes or property, shall be deposited in and become a part of the 
fund. 
(e) The Secretary shall deposit in the fund such portion of the 
charge collected in connection with the insurance of loans at least 
310 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T . 
equal to a rate of one-half of 1 per centum per annum on the out-
standing principal obligations and the remainder of such charge shall 
be available for administrative expenses of the Farmers Home Ad-
ministration, to be transferred annually and become merged with any 
appropriation for administrative expenses, 
(f) The Secretary may utilize the fund— 
(1) to make loans which could be insured under this subtitle 
whenever the Secretary has reasonable assurance that they can be 
sold without undue delaj, and may sell and insure such loans. 
The aggregate of the principal of such loans made and not dis-
posed of shall not exceed $10,000,000 at any one time; 
(2) to pay the interest to which the holder of the note is entitled 
on loans heretofore or hereafter insured accruing between the date 
of any prepayments made by the borrower and the date of trans-
mittal of any such prepayments to the lender. 
In the discretion 
of the Secretary, prepayments other than final payments need 
not be remitted to the holder until the due date of the annual 
installment; 
(3) to pay to the holder of the notes any defaulted installment 
or, upon assignment of the note to the Secretary at the Secretary's 
request, the entire balance due on the loan; 
(4) to purchase notes in accordance with agreements previously 
entered into; and 
(5) to pay taxes, insurance, prior liens, expenses necessary to 
make fiscal adjustments in connection with the application and 
transmittal of collections and other expenses and advances au-
thorized in section 335(a) in connection with insured loans. 
SUBTITLE B—OPERATING LOANS 
SEC. 311. The Secretary is authorized to make loans under this sub-
title to farmers and ranchers in the United States and in Puerto Rico 
and the Virgin Islands who (1) are citizens of the United States, (2) 
have a farm background and training or farming experience which 
the Secretary determines is sufficient to assure reasonable prospects 
of success in the proposed farming operation, (3) are or will become 
operators of not larger than family farms, and (4) are unable to 
obtain sufficient credit elsewhere to finance their actual needs at rea-
sonable rates and terms, taking into consideration prevailing private 
and cooperative rates and terms in the community in or near which 
the applicant resides for loans for similar purposes and periods of 
time. 
SEC. 312. Loans may be made under this subtitle for (1) paying 
costs incident to reorganizing the farming system for more profitable 
operation, (2) purchasing livestock, poultry, and farm equipment, 
(3) purchasing feed, seed, fertilizer, insecticides, and farm supplies 
and to meet other essential farm operating expenses including cash 
rent, (4) financing land and water development, use, and conserva-
tion, (5) refinancing existing indebtedness, (6) other farm and home 
needs including but not limited to family subsistence, and (7) for 
loan closing costs. 
SEC. 313. The Secretary shall make no loan under this subtitle (1) 
which would cause the total principal indebtedness outstanding at 
any one time for loans made under this subtitle and under section 
y^us'c^iooy^.' 
21 of the Bankhead-Jones Farm Tenant Act, as amended, to exceed 
$35,000: Provided^ however, That not more than 25 per centum of 
the sums made available for loans under this subtitle may be used for 
loans which would cause such indebtedness of any borrower under 
said Acts to exceed $15,000, (2) for the purchasing or leasing of land 
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
311 
other than for cash rent, or for carrying on any land leasing or land 
purchasing program, or (3) in excess of an amount certified by the 
county committee. 
SEC. 314. Loans aggregating not more than $500,000 in any one 
year may also be made to soil conservation districts which cannot 
obtain necessary credit elsewhere upon reasonable terms and condi-
tions for the purchase of equipment customarily used for soil con-
servation purposes. 
SEC. 315. The Secretary is authorized to participate in loans which 
could otherwise be made by the Secretary under this subtitle which 
are made by commercial banks, cooperative lending agencies, or other 
legally organized agricultural lending agencies up to 80 per centum 
of the amount of the loan. 
SEC. 316. The Secretary shall make all loans under this subtitle 
at an interest rate not to exceed 5 per centum per annum, upon the 
full personal liability of the borrower and upon such security as the 
Secretary may prescribe. 
Such loans shall be payable in not more 
than seven years, but may be renewed for not more than five additional 
years. 
SUBTITLE C—EMERGENCY IX)ANS 
SEC. 321. (a) The Secretary may designate any area in the United 
States and in Puerto Rico and the Virgin Islands as an emergency area 
if he finds (1) that there exists in such area a general need for agri-
cultural credit which cannot be met for temporary periods of time by 
private, cooperative, or other responsible sources (including loans the 
Secretary is authorized to make under subtitle B or to make or insure 
under subtitle A of this title or any other Act of Congress), at reason-
able rates and terms for loans for similar purposes and periods of time, 
and (2) that the need for such credit in such area is the result of a 
natural disaster. 
(b) The Secretary is authorized to make loans in any such area (1) 
to established farmers or ranchers who are citizens of the United 
States and (2) to private domestic corporations or partnerships en-
gaged primarily in farming or ranching provided they have experience 
and resources necessary to assure a reasonable prospect for successful 
operation with the assistance of such loan, and are unable to obtain 
sufficient credit elsewhere to finance their actual needs at reasonable 
rates and terms, taking into consideration prevailing private and co-
operative rates and terms in the community in or near which the ap-
plicant resides for loans for similar purposes and periods of time. 
SEC. 322. Loans may be made under this subtitle for any of the pur-
poses authorized for loans under subtitle A or B of this title. 
SEC. 323. The Secretary shall make no loan under this subtitle in 
excess of an amount certified by the county committee. 
SEC. 324. The Secretary shall make all loans under this subtitle at 
a rate of interest not in excess of 3 per centum per annum repayable at 
such times as the Secretary may determine, taking into account the 
purpose of the loan and the nature and effect of the emergency, but not 
later than provided for loans for similar purposes under subtitles A 
and B of this title, and upon the full personal liability of the bor-
rower and upon such security as the Secretary may prescribe. 
SEC. 325. The Secretary may make loans without regard to the 
designation of emergency areas under section 321(a) to persons or 
corporations (1) who have suffered severe production losses not gen-
eral to the area or (2) who are indebted to the Secretary for loans 
under the Act of April 6, 1949, as amended, or the Act of August 31, 
^^ stat. 43. 
1954, as a,mended, to the extent necessary to permit the orderly repay- and note, lus^a. 
ment or liquidation of said prior indebtedness. 
s^^f |Q°*' ^^^' ^° 
59Gx 
812 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T . 
SEC. 326. The Secretary is authorized to utilize the revolving fund 
12 use ?u8a. 
created by section 84 of the Farm Credit Act of 1933, as amended 
(hereinafter in this subtitle referred to as the "Emergencj^ Credit 
Eevolving Fund"), for carrying out the purposes of this subtitle. 
SEC. 327. (a) All sums received hj the Secretary from the liquida-
tion of loans made under the provisions of this subtitle or under the 
staf. 804!' ^^^' ^° Act of April 6, 1949, as amended, or the Act of August 31, 1954, and 
^^J2U^s^c 1148a-1 from the liquidation of any other assets acquired with money from 
no e, ii48a-2. ^j^^ Emergency Credit Eevolving Fund shall be added to and become 
a part of such fund. 
(b) There are authorized to be appropriated to the Emergency 
Credit Eevolving Fund such additional sums as the Congress shall 
from time to time determine to be necessary. 
SUBTITLE D—ADMINISTRATIVE PROVISIONS 
SEC. 331. For the purposes of this title and for the administration 
of assets under the jurisdiction of the Secretary of Agriculture pur-
7uscfVooi^note. suaut to the Farmers Home Administration Act of 1946, as amended, 
so Stat. 522. 
' the Baukhead-Joucs Farm Tenant Act, as amended, the Act of 
Jo^tat.^ 8%. 
August 28,1937, as amended, the Act of April 6,1949, as amended, the 
,0^-4" ^ ^ ^^'^'^ Ac^ ^^ August 31,1954, as amended, and tne powers and duties of the 
Secretary under any other Act authorizing agricultural credit, the 
Secretary may assign and transfer such powers, duties, and assets to 
the Farmers Home Administration, to be headed by an Administrator, 
appointed by the President, by and with the advice and consent of the 
Senate, without regard to the civil service laws or.the Classification 
5ulcfVo7i'*note. ^^^ ^^ 1949, as amended, who shall receive basic compensation as 
provided by law for that office. 
The Secretary may— 
(a) administer his powers and duties through such national, 
area. State, or local offices and employees in the United States and 
in Puerto Eico and the Virgin IslandB as he determines to be nec-
essary and may authorize an office to serve the area composed of 
two or more States if he determines that the volume of business 
in the area is not sufficient to justify separate State offices; 
(b) accept and utilize voluntary and uncompensated services, 
and, with the consent of the agency concerned, utilize the officers, 
employees, equipment, and information of any agency of the 
Federal Government, or of any State, territory, or political 
subdivision; 
(c) within the limits of appropriations made therefor, make 
necessary expenditures for purchase or hire of passenger vehicles, 
and such other facilities and services as he may from time to time 
find necessary for the proper administration oi this Act; 
(d) compromise, adjust, or reduce claims, and adjust and 
modify the terms of mortgages, leases, contracts, and agreements 
entered into or administered by the Farmers Home Administra-
tion under any of its programs, as circumstances may require, 
but compromises, adjustments, or reductions of claims of $15,000 
or more shall not be made without the approval of the Adminis-
trator : Provided, however. That— 
(1) compromise, adjustment, or reduction of claims shall 
be based on the value of the security and a determination by 
the Secretary of the debtor's reasonable ability to pay con-
sidering his other assets and income at the time of the action 
and with or without the payment of any consideration at the 
time of such adjustment or reduction; 
76 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
313 
(2) releases from personal liability may also be made with 
or without payment of any consideration at the time of ad-
justment of claims against— 
(A) borrowers who have transferred the security 
property to approved applicants under agreements as-
suming the outstanding secured indebtedness; 
(B) borrowers who have transferred the security 
property to approved applicants under agreements as-
suming that portion of the secured indebtedness equal to 
the current market value of the security property or 
transferred the security property to the Secretary; 
(C) borrowers who have transferred the security 
property to other than approved applicants under agree-
ments assuming the full amount of, or that portion of 
the secured indebtedness equal to, the current market 
value of the security property on terms not to exceed five 
annual installments with interest on the unpaid balance 
at a rate determined by the Secretary; and 
(D) borrowers who transfer security property under 
subparagraphs (B) and (C) above for amounts less than 
the indebtedness secured thereby may be released from 
personal liability only on a determination by the Secre-
tary that each such borrower has no reasonable debt-
paying ability considering his assets and income at the 
time of the transfer and the county committee certifies 
that the borrower has cooperated in good faith, used due 
diligence to maintain the security property against loss, 
and has otherwise fulfilled the covenants incident to his 
loan to the best of his ability; 
(3) no compromise, adjustment, or reduction of claims 
shall be made upon terms more favorable than recommended 
by the appropriate county committee utilized pursuant to 
section 332 of this title; and 
(4) any claim which has been due and payable for five 
years or more, and where the debtor has no assets or no 
apparent future debt-paying ability from which the claim 
could be collected, or is deceased and has left no estate, or 
* 
has been absent from his last known address for a period of 
at least five years, has no known assets, and his whereabouts 
cannot be ascertained without undue expense, may be charged 
off or released by the Secretary upon a report and favorable 
recommendation of the county committee and of the employee 
having charge of the claim, and any claim involving a prin-
cipal balance of $150 or less may be charged off or released 
whenever it appears to the Secretary that further collection 
efforts would be ineffectual or likely to prove uneconomical; 
and 
(5) partial releases and subordination of mortgages may 
be granted either where the secured indebtedness remaining 
after the transaction will be adequately secured or the security 
interest of the Secretary will not be adversely affected, and 
the transaction and use of proceeds will further the purposes 
for which the loan was made, improve the borrower's debt-
paying ability, permit payments on indebtedness owed to or 
insured by the Secretary, or permit payment of reasonable 
costs and expenses incident to the transaction, including taxes 
incident to or resulting from the transaction which the bor-
rower is unable to pay from other sources: 
64207 0-62—23 
314 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T . 
Provided further^ That no such compromise, adjustment, or re-
duction shall be made hereunder after the claim has been referred 
to the Attorney General unless agreed to by the Attorney Greneral. 
(e) collect all claims and obligations arising or administered 
under this title, or under any mortgage, lease, contract, or agree-
ment entered into or administered pursuant to this title and, if 
in his judgment necessary and advisable, pursue the same to final 
collection in any court having jurisdiction, 
mutees."* ^ ''°'"' 
^^^- ^^2. (a) The Secretary is authorized and directed to appoint 
in each county or area in which activities are carried on under this 
title, a county committee composed of three individuals residing in the 
county or area, at least two of whom at the time of appointment shall 
be farmers deriving the principal part of their income from farming. 
Committee appointments shall be for a term of three years except that 
the first appointments for any new committee shall be for one-, two-, 
and three-year periods, respectively, so as to provide continuity of 
committee membership. 
The Secretary may appoint alternate com-
mitteemen. 
The members of the committee and their alternates shall 
be removable for cause by the Secretary. 
(b) The rates of compensation, the number of days per month each 
member may be paid, and the amount to be allowed for necessary 
travel and subsistence expenses, shall be determined and paid by the 
Secretary. 
(c) The committee shall meet on the call of the chairman elected by 
the committee or on the call of such other person as the Secretary may 
designate. 
Two members of the committee shall constitute a quorum. 
The Secretary shall prescribe rules governing the procedure of the 
committees and their duties, furnish forms and equipment necessary, 
and authorize and provide for the compensation of such clerical 
assistance as he finds may be required by any committee. 
Loans; require- 
g^c. 333. In counectiou with loans made or insured under this title, 
the Secretary shall require— 
(a) the applicant to certify in writing that he is unable to 
obtain sufficient credit elsewhere to finance his actual needs at 
reasonable rates and terms, taking into consideration prevailing 
private and cooperative rates and terms in the community in or 
near which the applicant resides for loans for similar purposes 
and periods of time; 
(b) except for loans under sections 306, 314 and 321(b)(2), 
the county committee to certify in writing that the applicant 
meets the eligibility requirements for the loan, and has tne char-
acter, industry, and ability to carry out the proposed farming 
operations, and will, in the opinion of the committee, honestly 
endeavor to carry out his undertakings and obligations; and for 
loans under sections 306, 314 and 321(b) (2), the Secretary shall 
require the recommendation of the county committee as to the 
making or insuring of the loan; 
(c) an agreement by the borrower that if at any time it shall 
appear to me Secretary that the borrower may be able to obtain 
a loan from a production credit association, a Federal land bank, 
or other responsible cooperative or private credit source, at rea-
sonable rates and terms for loans for similar purposes and pe-
riods of time, the borrower will^ upon request by the Secretary, 
apply for and accept such loan in sufficient amount to repay the 
Secretary or the insured lender, or both, and to pay for any stock 
necessary to be purchased in a cooperative lending agency in con-
nection with such loan; 
ments. 
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
315 
(d) such provision for supervision of the borrower's operations 
as the Secretary shall deem necessary to achieve the objectives of 
the loan and protect the interests of the United States; and 
(e) the applications of veterans for loans under subtitle A or B 
of this title to be ^iven preference over similar applications of 
nonveterans on file m any county or area office at the same time. 
Veterans as used herein shall mean persons who served in the 
Armed Forces of the United States during any war between the 
United States and any other nation or during the Korean con-
flict and who were discharged or released therefrom under condi-
tions other than dishonorable. 
SEC. 334. All property subject to a lien held by the United States 
Taxes, 
or the title to which is acquired or held by the Secretary under this 
title other than property used for administrative purposes shall be 
subject to taxation by State, territory, district, and local political sub-
divisions in the same manner and to the same extent as other property 
is taxed: Provided^ however^ That no tax shall be imposed or collected 
on or with respect to any instrument if the tax is based on— 
(1) the value of any notes or mortgages or other lien instru-
ments held by or transferred to the Secretary; 
(2) any notes or lien instruments administered under this title 
which are made, assigned, or held by a person otherwise liable for 
such tax; or 
(3) the value of any property conveyed or transferred to the 
Secretary, 
whether as a tax on the instrument, the privilege of conveying or 
transferring or the recordation thereof; nor shall the failure to pay or 
collect any such tax be a ground for refusal to record or file such in-
struments, or for failure to impart notice, or prevent the enforcement 
of its provisions in any State or Federal court. 
SEC. 335. (a) The Secretary is authorized and empowered to make 
advances, without regard to any loan or total indebtedness limitation, 
to preserve and protect the security for or the lien or priority of the 
lien securing any loan or other indebtedness owing to, insured by, or 
acquired by the Secretary under this title or under any other programs 
administered by the Farmers Home Administration; to bid for and 
purchase at any execution, foreclosure, or other sale or otherwise to 
acquire property upon which the United States has a lien by reason 
of a judgment or execution arising from, or which is pledged, mort-
gaged, conveyed, attached, or levied upon to secure the payment of, 
any such indebtedness whether or not such property is subject to other 
liens, to accept title to any property so purchased or acquired; and to 
sell, manage, or otherwise dispose of such property as hereinafter 
provided. 
(b) Real property administered under the provisions of this title 
may be operated or leased by the Secretary for such period or periods 
as the Secretary may deem necessary to protect the Government's 
investment therein. 
(c) The Secretary may determine whether real property adminis-
tered under this title is suitable for disposition to persons eligible for 
assistance under subtitle A. 
Any property which the Secretary de-
termines to be suitable for such purposes shall, whenever practicable, 
be sold by the Secretary as expeditiously as possible to such eligible 
persons in a manner consistent with the provisions of subtitle A here-
of. 
Real property which is not determined suitable for sale to such 
eligible persons or which has not been purchased hj such persons with-
in a period of three years from the date of acquisition, shall be sold 
by the Secretary after public notice at public sale and, if no ac-
ceptable bid is received then by negotiated sale, at the best price ob-
PUBLIC LAW 87-128-AUG. 8, 1961 
[76 8 T A T . 
C o n f 1 i c t-of-
interest. 
Debt adjustment. 
Appropri at ion. 
tamable for cash or on secured credit without regard to the laws 
G
overning the disposition of excess or surplus property of the United 
tates. 
The terms of such sale shall require an initial downpayment 
of at least 20 per centum and the remainder of the sales price payable 
in not more than five annual installments with interest on unpaid 
balance at the rate determined by the Secretary. Any conveyances 
under this section shall include all of the interest of the United States, 
including mineral rights. 
(d) With respect to any real property administered under this title, 
the Secretary is authorized to grant or sell easements or rights-of-way 
for roads, utilities, and other appurtenances not inconsistent with the 
public interest. With respect to any rights-of-way over land on which 
the United States has a lien administered under this title, the Secre-
tary may release said lien upon payment to the United States of ade-
quate consideration, and the interest of the United States arising 
under any such lien may be acquired for highway purposes by any 
State or political subdivision thereof in condemnation proceedings 
under State law by service by certified mail upon the United States 
attorney for the district, the State Director of the Farmers Home 
Administration for the State in which the farm is located, and the 
Attorney General of the United States: Provided^ however^ That the 
United States shall not be required to appear, answer, or respond to 
any notice or writ sooner than ninety days from the time such notice 
or writ is returnable or purports to be effective, and the taking or 
vesting of title to the interest of the United States shall not become 
final under any proceeding, order, or decree until adequate compensa-
tion and damages have oeen finally determined and paid to the 
United States or into the registry of the court. 
SEC. 336. No officer, attorney, or other employee of the Secretary 
shall, directly or indirectly, be the beneficiary of or receive any fee, 
commission, gift, or other consideration for or in connection with any 
transaction or business under this title other than such salary, fee, 
or other compensation as he may receive as such officer, attorney, or 
employee. No member of a county committee shall knowingly make 
or join in making any certification with respect to a loan to purchase 
any land in which he or any person related to him within the second 
degree of consanguinity or affinity has or may acc[uire any interest or 
with respect to any applicant related to him within the second degree 
of consanguinity or affinity. Any persons violating any provision of 
this section shall, upon conviction thereof, be punished by a fine of 
not more than $2,000 or imprisonment for not more than two years, 
or both. 
SEC. 337. The Secretary may provide voluntary debt adjustment 
assistance between farmers and their creditors and may cooperate 
with State, territorial, and local agencies and committees engaged in 
such debt adjustment, and may give credit counseling. 
SEC. 338. (a) There is authorized to be appropriated to the Secre-
tary such sums as the Congress may from time to time determine to 
be necessary to enable the Secretary to carry out the purposes of this 
title and for the administration of assets transferred to the Farmers 
Home Administration. 
(b) When authorized by Congress, the Secretaiy is authorized to 
make and issue notes to the Secretary of the Treasury for the purpose 
of obtaining funds in such amounts as the Congress may approve 
annually in appropriation Acts for making direct loans under this title. 
Such notes shall be in such form and denominations and have such 
maturities and be subject to such terms and conditions as may be 
prescribed by the Secretary with the approval of the Secretary of the 
Treasury. Such notes shall bear interest at a rate fixed by the Secre-
75 S T A T . ] 
PUBLIC LAW 87-128-AUG. 8, 1961 
317 
tary of the Treasury, taking into consideration the current average 
market yields of outstanding marketable obligations of the United 
States having maturities comparable to the notes issued by the Secre-
tary under this title. The Secretary of the Treasury is authorized and 
directed to purchase any notes of the Secretary issued hereunder, and 
for that purpose the Secretary of the Treasury is authorized to use as 
a public debt transaction the proceeds from the sale of any securities 
issued under the Second Liberty Bond Act, as amended, and the pur-
poses for which such securities may be issued under such Act, as 
amended, are extended to include the purchase of notes issued by the 
Secretary. All redemptions, purchases, and sales by the Secretary of 
the Treasury of such notes shall be treated as public debt transactions 
of the United States. 
(c) The appropriations for loans made under the authority of sub-
section (a) and funds obtained in accordance with subsection (b) of 
this section, and the unexpended balances of any funds made available 
for loans under the item "Farmers Home Administration" in the 
Department of Agriculture Appropriation Acts current on the date of 
enactment of this title, shall be merged into a single account known as 
the "Farmers Home Administration direct loan account", hereafter 
in this section called the "direct loan account". All claims, notes, 
mortgages, property, including those now held by the Secretary on 
behalf of the Secretary of the Treasury, and all collections therefrom, 
made or held under the direct loan provisions of (1) titles I, II, and 
IV of the Bankhead-Jones Farm Tenant Act, as amended; (2) the 
Farmers Home Administration Act of 1946, as amended, except the 
assets of the rural rehabilitation corporations; (3) the Act of August 
28, 1937 (50 Stat. 869), as amended; (4) the item "Loans to Farm-
ers—1948 Flood Damage" in the Act of June 25,1948 (62 Stat. 1038); 
(5) the item "Loans to Farmers (Property Damage)" in the Act of 
May 24,1949 (63 Stat. 82); (6) the Act of September 6,1950 (64 Stat. 
769); (7) the Act of July 11, 1956 (70 Stat. 525) ; and (8) under 
this title shall be held for and deposited in said account. 
The notes of the Secretary issued to the Secretary of the Treasury 
under said Acts or under this title and all other liabilities against the 
appropriations or assets in the direct loan account shall be liabilities 
of said account, and all other obligations against such appropriations 
or assets shall be obligations of said account. Moneys in the direct 
loan account shall also be available for interest and principal repay-
ments on notes issued by the Secretary to the Secretary of the Treasury. 
Otherwise, the balances in said account shall remain available to the 
Secretary for direct loans under subtitles A and B of this title, and for 
advances in connection therewith, not to exceed any existing appropri-
ation or authorization limitations and in such further amounts as the 
Congress from time to time determines in appropriation Acts. The 
amounts so authorized for loans and advances shall remain available 
until expended. Subject to the foregoing limitations, the use of col-
lections dejx>sited in the account may be authorized by the Congress 
in lieu or partially in lieu of authorizing the issuing of additional notes 
by the Secretary to the Secretary of the Treasury, and the account 
shall be budgeted on a net expenditure basis. 
(d) The Secretary may sell and assign any notes and mortgages in 
the direct loan account with the consent of the borrower or without 
such consent when the borrower has failed to comply with his agree-
ment to refinance the indebtedness at the request of the Secretary. 
Such loans may be sold at the balance due thereon or on such other 
basis as the Secretary may determine from time to time. 
40 Stat. :!88. 
31 u s e 774. 
D i r e c t 
l o a n 
account. 
50Stat.522, 524, 
527. 
7 ' u S C 100 1, 
1007, 1014. 
60 Stat. 11062. 
7 u s e 1001 note. 
16 u s e 
590r-
590X-4. 
7 u s e 1033-1039. 
S a l e 
of 
notes 
and mortgaf^es. 
318 
PUBLIC LAW 87-128-AUG. 8, 1961 
[75 S T A T . 
(e) At least 25 per centum of the sums authorized in any fiscal year 
for direct loans to individuals to be made by the Secretary under sub-
title A of this title shall be allocated equitably among the several States 
and territories on the basis of farm population and the prevalence of 
tenancy, as determined by the Secretary. 
Rules and regu- 
QEC. 339. The Secretary is authorized to make such rules and regula-
lations. 
. 
M
l 
* ^ i 
f 
• 
p 
1 • 
' 
' 
t 
tions, prescribe the terms and conditions tor making or insuring loans, 
security instruments and agreements, except as otherwise specified 
herein, and make such delegations of authority as he deems necessary 
to carry out this title. 
SEC. 340. The President may at any time in his discretion transfer 
to the Secretary any right, interest, or title held by the United States 
in any lands acquired in the program of national defense and no longer 
needed therefor, which the President shall find suitable for the pur-
poses of this title, and the Secretary shall dispose of such lands in the 
manner and subject to the terms and conditions of the title. 
Repeals. 
gj.^ 3^]^ ^g^^ Reference to any provisions of the Bankhead-Jones 
Farm Tenant Act or the Act of August 28, 1937 (50 Stat. 869), as 
amended, superseded by any provision of this title shall be construed 
as referring to the appropriate provision of this title. 
Titles I, II, 
50Stat. 522,524, and IV of the Bankhead-Jones Farm Tenant Act, as amended, and the 
7' u s c 1001, Act of August 28, 1937 (50 Stat. 869), as amended, the Act of April 6, 
^Te' u°s*c 590.- 1949 (63 Stat. 43), as amended, and the Act of August 31, 1954 (68 
^^ilfusc ii48a-i Stat. 999), as amended, are hereby repealed effective one hundred and 
and note, ii48a-2. tweuty days after enactment hereof, or such earlier date as the provi-
sions of this title are made effective by the Secretary's regulations ex-
cept that the repeal of section 2(c) of the Act of April 6, 1949, shall 
not be effective prior to January 1, 1962. The foregoing provisions 
shall not have the effect of repealing the amendments to section 24, 
chapter 6 of the Federal Reserve Act, as amended, section 5200 of the 
1
2 use 371,84. Revised Statutes, section 35 of chapter I I I of the Act approved June 
19, 1934 (D.C Code, title 35, section 535), enacted by section 15 of the 
staf.%°79.^^^^' ^° Bankhead-Jones Farm Tenant Act, as amended, and by section 10(f) 
68 Stat. 735. 
of the Act of August28,1937 (50 Stat. 869), as amended. 
(b) The repeal of srnj provision of law by this title shall not— 
(1) affect the validity of any action taken or obligation entered 
into pursuant to the authority of any of said Acts, or 
(2) prejudice the application of any person with respect to re-
ceiving assistance under the provisions of this title, solely because 
such person is obligated to the Secretary under authorization 
contained in any such repealed provision. 
(c) If any provision of this title or the application thereof to any 
person or circumstance is held invalid, the remainder of the title and 
the application of such provision to other persons or circumstances 
shall not be affected thereby. 
10^13" s c 1010- 
SEC. 342. Title I I I of the Bankhead-Jones Farm Tenant Act, as 
amended, is further amended by the following new section 3'5: 
"SEC. 35. The provisions of this title shall extend to Puerto Rico 
and the Virgin Islands. 
In the case of Alaska, Puerto Rico, and the 
Virgin Islands, the term 'county' as used in this title may be the entire 
area, or any subdivision thereof as may be determined by the Secre-
7 use 1012. 
tary, and payments under section 33 of this title shall be made to the 
Governor or to the fiscal agent of such subdivision." 
75 S T A T . ] 
PUBLIC LAW 87-129-AUG. 10, 1961 
319 
TITLE IV—GENERAL 
SEC. 401. Section 16 of the Soil Conservation and Domestic Allot-
ment Act, as amended, is amended by changing the third sentence of 
1° u^c s^sVp' 
paragraph (1) of subsection (b) to read as follows: "Such contracts 
may be entered into during the period ending not later than Decem-
ber 31, 1971, with respect to farms and ranches in counties in the 
Great Plains area of the States of Colorado, Kansas, Montana, 
Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, 
Texas, and Wyoming, designated by the Secretary as susceptible to 
serious wind erosion by reason of their soil types, terrain, and climatic 
and other factors." 
SEC. 402. The Act of July 1, 1958, as amended (72 Stat. 276), is Miik^proKram. 
further amended by adding a new section as follows: 
Ante. p. 1
4
7
V *^' 
"SEC. 2. There is hereby authorized to be appropriated for the fiscal 
^ 
i446note. 
year beginning July 1, 1962, and for each of the four fiscal years 
thereafter, such sums as may be necessary to enable the Secretary of 
Agriculture, under such rules and regulations as he may deem in the 
public interest, to encourage consumption of fluid milK by children 
in the United States in (1) nonprofit schools of high school grade and 
under, and (2) nonprofit nursery schools, child-care centers, settle-
ment houses, summer camps, and similar nonprofit institutions de-
voted to the care and training of children. For the purposes of this 
Act, 'United States' means the 50 States and the District of Columbia." 
SEC. 403. Section 202 of the Agricultural Act of 1949, as amended, ^f^ ^"J^d'^ftV 
is amended by striking the phrase "December 31, 1961" each place it ^'•^'i^it corp. 
appears therem and inserting in lieu thereof the phrase "December 31, 
7 use 1446a. 
1964". 
Approved August 8, 1961, 10:00 a. m. 
Public Law 87-129 
AN ACT 
August 10, 1961 
To add certain federally owned land to the Lassen Volcanic National Park, _LJ—'. 
1 
in the State of California, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the following Natfo^nar^p^a r'k!' 
described lands of the Lassen National Forest are hereby excluded Caiif. 
from the forest and added to the Lassen Volcanic National Park: 
Lands, addition. 
Lots 1, 2, and 3, south half northeast quarter, and southeast quarter 
northwest quarter section 4; west half southeast quarter and those 
parts of the south half northwest quarter and of the southwest quarter 
of section 11 lying east of Lost Creek; and section 19, township 31 
north, range 4 east. Mount Diablo meridian: Provided, 
That the 
aforesaid lands in section 19 are included within the national park 
subject to the right of the Secretary of Agriculture to construct and 
maintain a permanent road through such section in order to permit 
the use, protection, and administration of adjacent national forest 
lands and the removal of timber from the national forest. 
Approved August 10, 1961.