An Act to improve and protect farm income, to reduce costs of farm programs to the Federal Government, to reduce the Federal Governments excessive stocks of agricultural commodities, to maintain reasonable and stable prices of agricultural commodities and products
PL 87-703 (H.R.12391), enacted 09/27/1962

76 STAT.] 
PUBLIC LAW 87-703-.SEPT. 27, 1962 
605 
(g) Before the Commission enters into any arrangements pursuant 
to'this section, the basis for such arrangements and the determinations 
required by subsection (b), with supporting data, shall be submitted 
to the Joint Committee on Atomic Energy and a period of forty-five 
days shall elapse: Provided^ hoioever^ That the Joint Committee, after 
having received such documents, may, by majority concurrence in 
writing, waive the conditions of or all or any portion of such forty-
five day period. 
Approved September 26, 1962. 
Review by Joint 
Committee. 
Public Law 87-702 
JOINT RESOLUTION 
To provide for the coinage of a medal in recognition of tlie distinguislied services 
of Sam Rayburn, Speaker of the House of Representatives. 
September 26, 1962 
[S. J. Res. 133] 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assembled^ That, in recognition of the 
distinguished public service and outstanding contribution to the gen-
eral welfare of Sam Rayburn, Speaker of the House of Representa-
tives, the Secretary of the Treasury is authorized and directed to 
cause to be struck and presented to the estate of the late Speaker Sam 
Rayburn a gold medal with suitable emblems, devices, and inscriptions 
to be determined by the Secretary, but to include the phrase "For 
services rendered to the people of the United States". There is author-
ized to be appropriated the sum of $2,600 to carry out the purposes 
of this section. 
SEC. 2. The Secretary of the Treasury is authorized and directed 
to cause duplicates in bronze of such medal to be struck and sold, under 
such regulations as he may prescribe, at a price sufficient to cover the 
cost thereof (including labor). 
The proceeds of the sale of such 
bronze medals shall be reimbursed to the appropriation then current 
for the expenditure of the Bureau of the Mint chargeable for the cost 
of the manufacture of medals. 
Approved September 26, 1962. 
Sam Rayburn. 
Gold medal. 
Public Law 87-703 
AN ACT 
To improve and protect farm income, to reduce costs of farm programs to the 
Federal Government, to reduce the Federal Government's excessive stocks of 
agricultural commodities, to maintain reasonable and stable prices of agricul-
tural commodities and products to consumers, to provide adequate supplies of 
agricultural commodities for domestic and foreign needs, to conserve natural 
resources, and for other purposes. 
September 27, 1962 
[H. R. 12391] 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Food and Agriculture Act of 1962". 
Food and Agri-
culture Act of 
1962. 
TITLE I—LAND-USE ADJUSTMENT 
SEC. 101. The Soil Conservation and Domestic Allotment Act (49 
soii conserva-
Stat. 163), as amended, is further amended as follows: 
Ajiotment^A^t!^"*" 
(1) by repealing subsections (b), (c), (d), (e), (f),and (g) of amendments, 
section?; 
49 stat. ii48. 
(2) by repealing subsection (a) of section 8; 
J^ ^|^ ;!^^g-
606 
PUBUC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
(3) by amending the first sentence of subsection (b) of section 
52 Stat. 31. 
8 of said Act, as amended, by striking out the language "Subject 
to the limitations provided in subsection (a) of this section, the" 
and inserting in heu thereof the word "The"; and 
(4) by adding a new subsection at the end of section 16 of said 
49 Stat. 1151. 
Act to read as follows: 
16 use 590p. 
"(e) (1) For the purpose of promoting the conservation and eco-
nomic use of land, the Secretary, without regard to the foregoing 
provisions of this Act, except those relating to the use of the services 
of State and local committees, is authorized to enter into agreements, 
to be carried out during such period not to exceed ten years as he may 
determine, with farm and ranch owners and operators providing for 
changes in cropping systems and land uses and for practices or meas-
ures to be carried out primarily on any lands owned or operated by 
them and regularly used in the production of crops (including crops 
such as tame hay, alfalfa, and clovers, which do not require annual 
tillage, and including lands covered by conservation reserve contracts 
70 Stat. 191- 
under subtitle B of the Soil Bank Act) for the purpose of conserving 
*
^
7 use 1831- 
^^^^ developing soil, water, forest, wildlife, and recreation resources. 
1837. 
Such agreements shall include such terms and conditions as the Secre-
tary may deem desirable to effectuate the purposes of this subsection 
and may provide for payments, the furnishing of materials and serv-
ices, and other assistance in amounts determined by the Secretary to 
be fair and reasonable, in consideration of the obligations undertaken 
by the farm and ranch owners and operators and the rights acquired 
by the Secretary: Provided^ That agreements for the establishment 
of tree cover may not provide for annual payments with respect to 
such land for a period in excess of five years. 
"(2) No agreement shall be entered into under this subsection cover-
ing land with respect to which the ownership has changed in the two 
year period preceding the first year of the contract period unless 
(a) the new ownership was acquired by will or succession as a result 
of the death of the previous owner, (b) the land becomes a part of an 
existing farm or ranch, or (c) the land is combined with other land 
as a farming or ranching enterprise which the Secretan?^ determines 
will effectuate the purposes of the program: Provided^ That this pro-
vision shall not prohibit the continuation of an agreement by a new 
owner after an agreement has once been entered into under this sub-
section. 
" (3) The Secretary shall provide adequate safeguards to protect the 
interests of tenants and sharecroppers, including provision for sharing, 
on a fair and equitable basis, in payments under this subsection. 
"(4) The Secretary may agree to such modification of agreements 
previously entered into as he may determine to be desirable to carry out 
the purposes of this subsection or to facilitate the practical administra-
tion of the program carried out pursuant to this subsection. 
"(5) The Secretary shall issue such regulations as he determines 
necessary to carry out the provisions of this subsection. 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
607 
" (6) Notwithstanding any other provision of law, the Secretary, to 
the extent he deems it desirable to carry out the purposes of this sub-
section, may provide in any agreement hereunder for (A) preservation 
for a period not to exceed the period covered by the agreement and an 
equal period thereafter of the cropland, crop acreage, and allotment 
history applicable to land covered by the agreement for the purpose of 
any Federal program under which such history is used as a basis for 
an allotment or other limitation on the production of such crop; or (B) 
surrender of any such history and allotments. 
"(7) There is hereby authorized to be appropriated such sums as 
may be necessary to carry out this subsection. 
The Secretary is 
authorized to utilize the facilities, services, authorities, and funds of 
the Commodity Credit Corporation in discharging his functions and 
responsibilities under this subsection including payment of costs of 
administration for the program authorized under this subsection: Pro-
vided^ That after June 30, 1963, the Commodity Credit Corporation 
shall not make any expenditures for carrying out the purposes of this 
subsection unless the Corporation has received funds to cover such 
expenditures from appropriations made to carry out the purposes of 
this subsection. 
The Secretary shall not enter into agreements here-
under which would require payments, the furnishing of materials and 
services, and other assistance, in amounts in excess of $10,000,000 for 
any calendar year, except that the Secretary may enter into agreements 
hereunder with respect to lands previously covered by conservation 
reserve contracts which would require payments, the furnishing of 
materials and services, and other assistance, in an additional amount 
for the calendar year 1963 not exceeding $15,000,000." 
(5) by adding a new subsection at the end of section 16 of said 
Act to read as follows: 
i6 use SQOP; 
"(f) The Secretary is authorized to use the services, facilities, and ^^^' "• ^°^* 
authorities of Commodity Credit Corporation for the purpose of 
making disbursements to producers under programs formulated pur-
suant to sections 8 and 16(e) of this Act: Provided^ That no such dis- 
le use 590h. 
bursements shall be made by Commodity Credit Corporation unless it 
has received funds to cover the amount thereof from appropriations 
available for the purpose of carrying out such programs." 
SEC. 102. (a) Section 31 of title I I I of the Bankhead-Jones Farm 
Bankhcad-jones 
Tenant Act (50 Stat. 525), as amended, is amended by striking out T^^dmen^s! ^''*' 
"including the retirement of lands which are submarginal or not pri- 
7 use loio. 
marily suitable for cultivation," and by inserting following "natural 
resources," the phrase "protecting fish and wildlife," and by striking 
out the period at the end thereof and inserting ", but not to build 
industrial parks or establish private industrial or commercial enter-
prises." 
(b) Subsection (a) of section 32 of title I I I of the Bankhead-Jones 
Repeal. 
Farm Tenant Act, as amended, is repealed. 
so stat. S26 
(c) Section 32(e) of title. I l l of the Bankhead-Jones Farm Tenant 
^ use loii. 
Act, as amended, is amended to read as follows: 
"(e) to cooperate Vith Federal, State, territorial, and other 
public agencies in developing plans for a program of land con-
608 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
servation and land utilization, to assist in carrying- out such plans 
by means of loans to State and local public agencies designated 
by the State legislature or the Governor, to conduct surveys and 
investigations relating to conditions and factors affecting, and the 
methods of accomplishing most effectively the purposes of this 
title, and to disseminate information concerning these activities. 
Loans to State and local public agencies shall be made only if such 
plans have been submitted to, and not disapproved within 45 days 
by, the State agency having supervisory responsibility over such 
plans, or by the Governor if there is no such State agency. No 
appropriation shall be made for any single loan under this sub-
section in excess of $250,000 unless such loan has been approved 
by resolutions adopted by the Committee on Agriculture and 
Forestry of the Senate and the Committee on Agriculture of the 
House of Representatives. Loans under this subsection shall be 
made under contracts which will provide, under such terms and 
conditions as the Secretary deems appropriate, for the repayment 
thereof in not more than 30 years, with interest at the average rate, 
as determined by the Secretary of the Treasury, payable by the 
Treasury on its marketable public obligations outstanding at the 
beginning of the fiscal year in which the loan is made, which are 
neither due nor callable for redemption for 15 years from date 
of issue. Repayment of principal and interest on such loans shall 
begin within 5 years." 
Watershed Pro- 
SEC. 103. The Watershed Protection and Flood Prevention Act (68 
tection artd Flood c
^
^
-
.
^
^ QQQ\ ^^ amended, is amended as follows: 
P r e v e n t i o n Act, 
/ - < \ T - » 
I / - . \ 
<
• 
• 
<« 
• -t 
t. 
• 
T
T
I 
amendments. 
(1) Paragraph (1) 01 section 4 of said Act is amended by 
16 u^c 1
^
0
0
4
. 
changing the semicolon at the end thereof to a colon and adding 
the following: ^^Provided, That when a local organization agrees 
to operate and maintain any reservoir or other area included in 
a plan for public fish and wildlife or recreational development, 
the Secretary shall be authorized to bear not to exceed one-half 
of the costs of (a) the land, easements, or rights-of-way acquired 
or to be acquired by the local organization for such reservoir or 
other area, and (b) minimum basic facilities needed for public 
health and safety, access to, and use of such reservoir or other 
area for such purposes: Provided 
further, 
That the Secretary 
shall be authorized to participate in recreational development in 
any watershed project only to the extent that the need therefor 
is demonstrated in accordance with standards established by 
him, taking into account the anticipated man-days of use of the 
projected recreational development and giving consideration to 
the availability within the region of existing water-based outdoor 
recreational developments: Provided furtJier, That the Secretary 
shall be authorized to participate in not more than one recrea-
tional development in a watershed project containing less than 
seventy-five thousand acres, or two such developments in a project 
containing between seventy-five thousand and one hundred and 
fifty thousand acres, or three such developments in projects 
exceeding one hundred and fifty thousand acres: Provided 
fur-
ther, That Avhen the Secretary and a local organization have 
agreed that the immediate acquisition by the local organization 
of land, easements, or rights-of-way is advisable for the preserva-
tion of sites for works of improvement included in a plan from 
encroachment by residential, commercial, industrial, or other 
development, the Secretary shall be authorized to advance to the 
local organization from tunds appropriated for construction of 
works of improvement the amounts required for the acquisition 
of such land, easements or rights-of-way; and, except where such 
76 STAT.] 
PUBUC LAW 87-703-SEPT. 27, 1962 
609 
costs are to be borne by the Secretary, such advance shall be 
repaid by the local organization, with interest, prior to construc-
tion of the works of improvement, for credit to such construction 
funds." 
(2) Clause (A) of paragraph 2 of section 4 of said Act is 
amended to read as follows: "(A) such proportionate share, as is 
determined by the Secretary to be equitable in consideration of 
national needs and assistance authorized for similar purposes 
under other Federal programs, of the costs of installing any works 
of improvement, involvmg Federal assistance (excluding engi-
neering <;osts), which is applicable to the agricultural phases of 
the conservation, development, utilization, and disposal of water 
or for fish and wildlife or recreational development, and". 
SEC. 104. Clause (B) of paragraph 2 of section 4 of the Watershed 
Protection and Flood Prevention Act (68 Stat. 666), as amended, is 
amended to read as follows: 
"(B) all of the cost of installing any portion of such works appli-
cable to other purposes except that any part of the construction cost 
(including engineering costs) applicable to flood prevention and fea-
tures relating thereto shall be borne by the Federal Government and 
paid for by the Secretary out of funds appropriated for the purposes 
of this Act: Provided^ That, in addition to and without limitation on 
the authority of the Secretary to make loans or advancements under 
section 8, the Secretary may pay for any storage of water for antic-
ipated future demands or needs for municipal or industrial water in-
cluded in any reservoir structure constructed or modified under the 
provisions of this Act not to exceed 30 per centum of the total esti-
mated cost of such reservoir structure where the local organization 
gives reasonable assurances, and there is evidence, that such demands 
for the use of such storage will be made within a period of time which 
will permit repayment of the cost of such water supply storage within 
the life of the reservoir structure: Provided further^ That the local 
organization shall agree prior to initiation of construction or modifica-
tion of any reservoir structure including such water supply storage to 
repay the cost of such water supply storage for anticipated future 
demands: And provided further^ That the entire amount of the cost 
paid by the Secretary for such water supply storage for anticipated 
future demands shall be repaid within the life of the reservoir struc-
ture but in no event to exceed fifty years after the reservoir structure 
is first used for the storage of water for water supply purposes, 
except that (1) no repayment of the cost of such water supply storage 
for anticipated future demands need be made until such supply is 
first used, and (2) no interest shall be charged on the cost of such water 
supply storage for anticipated future demands until such supply is 
first used, but in no case shall the interest-free period exceed ten years. 
The interest rate used for purposes of computing the interest on the 
unpaid balance shall be determined in accordance with the provisions 
of section 8." 
SEC. 105. Section 5 of the Watershed Protection and Flood Preven-
tion Act (68 Stat. 666), as amended, is amended to read as follows: 
"SEC. 5. (1) At such time as the Secretary and the interested local 
organization have agreed on a plan for works of improvement, and the 
Secretary has determined that the benefits exceed the costs, and the 
local organization has met the requirements for participation in 
carrying out the works of improvement as set forth m section 4, the 
local organization may secure engineering and other services, includ-
ing the design, preparation of contracts and specifications, awarding 
of contracts, and supervision of construction, in connection with such 
works of improvement, by retaining or employing a professional engi-
70 Stat. 1088. 
16 u s e 1004. 
16 u s e 1006a. 
70 Stat. 1089. 
16 u s e lOOS. 
78135 0-63—42 
610 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
neer or engineers satisfactory to the Secretary or may request the 
Secretary to provide such services: Provided^ That if the local organi-
zation elects to employ a professional engineer or engineers, the Secre-
tary shall reimburse the local organization for the costs of such engi-
neering and other services secured by the local organization as are 
properly chargeable to such works of improvement in an amount 
not to exceed the amount agreed upon in the plan for works of im-
provement or any modification thereof: Provided 
further^ That the 
Secretary may advance such amounts as may be necessary to pay for 
such services, but such advances with respect to any works of improve-
ment shall not exceed 5 per 6entum of the estimated installation cost 
of such works. 
"(2) Except as to the installation of works of improvement on 
Federal lands, the Secretary shall not construct or enter into any con-
tract for the construction of any structure. 
"(3) Whenever the estimated Federal contribution to the construc-
tion cost of works of improvement in the plan for any watershed or 
subwatershed area shall exceed $250,000 or the works of improvement 
include any structure having a total capacity in excess of twenty-five 
hundred acre-feet, the Secretary shall transmit a copy of the plan and 
the justification therefor to the Congress through the President. 
"(4) Any plan for works of improvement involving an estimated 
Federal contribution to construction costs in excess of $250,000 or 
including any structure having a total capacity in excess of twenty-
five hundred acre-feet (a) which includes reclamation or irrigation 
works or which affects public or other lands or wildlife under the juris-
diction of the Secretary of the Interior,. (b) which includes Federal 
assistance for floodwater detention structures, shall be submitted to the 
Secretary of the Interior or the Secretary of the Army, respectively, 
for his views and recommendations at least thirty days prior to trans-
mission of the plan to the Congress through the President. 
The views 
and recommendations of the Secretary of the Interior, and the Secre-
tary of the Army, if received by the Secretary prior to the expiration 
of the above thirty-day period, shall accompany the plan transmitted 
by the Secretary to the Congress through the President. 
"(5) Prior to any Federal participation in the works of improve-
ment under this Act, the President shall issue such rules and regula-
tions as he deems necessary or desirable to carry out the purposes of 
this Act, and to assure the coordination of the work authorized under 
this Act and related work of other agencies, including the Department 
of the Interior and the Department of the Army." 
SEC. 106. The last proviso of section 7 of the Watershed Protection 
74 Stat. 131. 
and Flood Prevention Act, 68 Stat. 666, as amended, is amended to 
and^n^f^ '°^^ 
read as follows: '"'"Provided further^ That in connection with the eleven 
watershed improvement programs authorized by section 13 of the Act 
of December 22, 1944 (58 Stat. 887), as amended and supplemented, 
the Secretary of Agriculture is authorized to prosecute additional 
works of improvement for the conservation, development, utilization, 
and disposal of water in accordance with the provisions of section 4 
68 Stat. 667; 
of this Act or any amendments hereafter made thereto". 
70 Stat. 1088. 
1. 
TITLE II—AGRICULTURAL TRADE DEVELOPMENT 
16 use 1004. 
SEO. 201. Title IV of the Agricultural Trade Development and 
73 Stat. 610. 
Assistance Act of 1954, as amended, is further amended as follows: 
1735!^^ ^^^^' 
(1) Section 401 is amended by adding at the end thereof the 
7 use 1731. 
following new sentence: "It is also the purpose of this title to 
stimulate and increase the sale of surplus agricultural commodi-
ties for dollars through long-term supply agreements and through 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
611 
the extension of credit for the purchase of such commodities, by 
agreements either with friendly nations or with the private trade, 
thereby assisting the development of the economies of friendly 
nations and maximizing dollar trade. 
(2) Section 402 is amended— 
(a) by inserting ", including financial institutions acting 
7^^1*0*1732 
in behalf of such nations," after the words "friendly nations"; 
and 
(b) by adding at the end thereof the following: "In fur-
therance of the purpose of maximizing dollar sales through 
the private trade, the Secretary of Agriculture is authorized 
to enter into sales agreements with foreign and United 
States private trade under which he shall undertake to pro-
vide for the delivery of surplus agricultural commodities 
over such periods of time and under the terms and conditions 
set forth in this title. Any agreement entered into hereunder 
with the private trade shall provide for the furnishing of 
such security as the Secretary determines necessary to pro-
vide reasonable and adequate assurance of payment of the 
amount due for agricultural commodities sold pursuant to 
such agreement." 
(3) Section 403 is amended— 
7 use 1733. 
(a) by deleting the words "approximately equal" from the 
last sentence thereof and substituting therefor the word 
"reasonable"; and 
(b) by inserting after the word "agreement" in the last 
sentence thereof the following: ", except that the date for 
beginning such annual payment may be deferred for a period 
not later than two years after such date of last delivery,". 
(4) Section 405 is amended to read as follows: 
7 use 173s. 
"SEC. 405. In the c^e of such agreements, the Secretary may enter 
into agreements with other friendly and historic supplying nations of 
such commodities for their participation in the supply and assistance 
program herein authorized on a proportionate and equitable basis. 
(5) Section 406 is amended by inserting after the word "sec- 
7 use 1736. 
tions" the following: "101 (b) and (c),". 
SEC. 202. Section 416 of the Agricultural Act of 1949, as amended, 
es stat. 458. 
is further amended by inserting in clause (4) after the words "needy 
'' ^^^ ^'*''^-
persons" the words "and in nonprofit school lunch programs". 
SEC. 203. Section 308 of the Agricultural Trade Development and 
73 stat. 609. 
Assistance Act of 1954, as amended, is further amended by inserting 
7 use i697. 
after the words "needy persons" the words "and in nonprofit school 
lunch programs". 
SEC. 204. Section 9 of the Act of September 6,1958 (Public Law 85-
931), is amended by inserting after the words "needy persons" the 
72 stat. 1792, 
words "and in nonprofit school lunch programs". 
'
^ "^^ 1431b. 
SEC. 205. In any school feeding programs undertaken hereafter out-
side the United States pursuant to section 416 of the Agricultural Act 
of 1949, as amended, section 308 of Public Law 480 (83d Congress), as 
amended, and section 9 of the Act of September 6, 1958, as amended, 
the Secretary shall receive assurances satisfactory to him that, insofar 
as practicable, there will be student participation in the financing of 
such programs on the basis of ability to pay, and such programs snail 
be undertaken with the understanding that commodities will be avail-
able for those programs only in accordance with the provisions of such 
statutes and that commodities made available under section 416 of the 
Agricultural Act of 1949, as amended, will be available only in accord-
ance with the priorities established in such section. 
612 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
TITLE III—COMMODITY PROGRAMS 
SUBTITLE A—FEED GRAINS 
SEC. 301. Section 105(e) of the Agricultural Act of 1949, as 
75 Stat. 6, 
amended, is amended by adding the following new paragraphs (5) and 
301. 
(Q\ . 
7 u s e 1441 
V"/ • 
note. 
"(5) The level of price support for the 1963 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 determine. Eighteen 
cents per bushel of the support price for corn, and a comparable por-
tion of the support price for grain sorghums and barley shall be made 
available to producers through payments in kind. Such payments in 
kind shall be made on the number of bushels of such feed grain deter-
mined by multiplying the actual acreage of such feed grain planted 
on the farm for harvest in 1963 by the adjusted average yield per acre 
for the 1959 and 1960 crop E^creage of such feed grain. Such payments 
in kind shall be made through the issuance of negotiable certificates 
which the Commodity Credit Corporation shall redeem for corn, grain 
sorghums, and barley (such feed grains to be valued by the Secretary 
at not less than the support price minus that part of the support price 
made available through payments in kind) and, notwithstanding any 
other provision of law, the Commodity Credit Corporation shall, in 
accordance with regulations prescribed by the Secretary, assist the 
producer in the marketing oi such certificates. 
In the case of any 
certificate not presented for redemption within 30 days of the date 
of its issuance, reasonable costs of storage and other carrying charges, 
as determined by the Secretary, for the period beginning 30 days after 
its issuance and ending with the date of its presentation for redemp-
tion shall be deducted from the value of the certificate. 
The Secretary 
shall provide for the sharing of such certificates among the producers 
on the farm on the basis of their respective shares in the crop produced 
on the farm with respect to which such certificates are issued, or the 
proceeds therefrom. 
If the operator of the farm elects to participate 
m the special agricultural conservation program for 1963 for corn, 
grain sorghums, and barley, price support shall be made available to 
the producers on such farm onlj if such producers divert from the 
production of such feed grains m accordance with the provisions of 
such program an acreage on the farm equal to the number of acres 
which such operator agrees to divert, and the agreement shall so 
provide. 
"(6) The Secretary shall require as a condition of eligibility for 
price support on the 1963 crop of corn, grain sorghums, and barley 
that the producer shall participate in the special agricultural conserva-
tion program for 1963 for corn, grain sorghums, and barley to the 
extent prescribed by the Secretary: Provided, That the Secretary may 
provide that no producer of malting barley shall be required as a con-
dition of eligibility for price support for barley to participate in the 
special agricultural conservation program for 1963 if such producer 
has previously produced a malting variety of barley, plants barley only 
of an acceptable malting variety for harvest in 1963, does not know-
ingly devote an acreage on the farm to barley in excess of 110 per cen-
tum 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 corn 
and grain sorghums in excess of the average acreage devoted on the 
farm to corn and grain sorghums in 1959 and 1960." 
SEC. 302. Section 16 of the Soil Conservation and Domestic Allot-
49 Stat. 1151; 
ment Act, as amended, is amended by adding the following new 
Ante, p. 607. 
miVmppfinn • 
16 u s e 590p. 
isUObecLion . 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
613 
"(g) Notwithstanding any other provision of law— 
"(1) The Secretary, shall formulate and carry out a special 
agricultural conservation program for 1963, without regard to 
provisions w^hich 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 reasonable 
shall be made to producers who divert acreage from the production 
of corn, grain sorghums, and barley to an approved conservation 
use and increase their average acreage of cropland devoted in 1959 
and 1960 to desigijated soil-conservmg crops or practices includ-
ing summer fallow and idle land by an equal amount: Provided^ 
That the Secretary may permit such diverted acreage to be devoted 
to the production of guar, sesame, safflower, sunflower, castor 
beans, and flax, when such crops are not in surplus supply and will 
not be in surplus supply if permitted to be grown on the diverted 
acreage, subject to the condition that payment with respect to 
diverted acreage devoted to any such crop shall be at a rate deter-
mined by the Secretary to be fair and reasonable, taking into con-
sideration the use of such acreage for the production of such crops, 
but in no event shall the payment exceed one-half the rate which 
would otherwise be applicable if such acreage w^ere devoted to 
conservation uses and no price support shall be made available for 
the production of any such crop on such diverted acreage. 
Such 
special agricultural conservation program shall require the pro-
ducer to take such measures as the Secretary may deem appro-
priate to keep such diverted acreage fi'ee from erosion, insects, 
weeds, and rodents. 
The acreage eligible for payments in cash 
or in an equivalent amount in kind under such conservation pro-
gram shall be an acreage equivalent to 20 per centum of the aver-
age acreage on the farm planted to corn, grain sorghums, and 
barley in the crop years 1959 and 1960 or up to twenty-five acres, 
whichever is greater. 
Payments in kind only may be made by the 
Secretary for the diversion of up to an additional 30 per centum of 
the average acreage on the farm planted to corn, grain sorghums, 
and barley, in the crop years 1959 and 1960. Payments may be 
made at the basic county support rate for the 1962 crop in effect 
at the time payment rates for the special feed grain program for 
1963 are established, adjusted to reflect any changes between the 
national support rates for the 1962 and 1963 crops 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. The Secretary may make such adjustments 
in acreage and yields for the 1959 and 1960 crop years as he deter-
mines necessary to correct for abnormal factors affecting produc-
tion, and to give due consideration to tillable acreage, crop rota-
tion practices, type of soil, soil and water conservation measures, 
and topography. 
The Secretary may also make such adjustments 
in yields as he determines necessary to reflect any increases in 
yields since the 1959 and 1960 crop ;^ears as the result of the 
adoption or the improvement of an irrigation system if such 
improvement or adoption of such irrigation system was made prior 
to the effective date of this sentence but such adjustment in yields 
shall apply only to payments with respect to acreage diverted 
pursuant to the requirements of section 105(c) (6) of the Agri-
cultural Act of 1949, as amended. 
To the extent that a producer 
Ante, p. eu. 
proves the actual acreages and yields for the farm for the 1959 
and 1960 crop years, such acreages and yields shall be used in 
614 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
making determinations. 
The Secretary may make not to exceed 
50 per centum of any payments to producers in advance of deter-
mination of performance. 
Notwithstanding any other provision 
of this subsection (g)(1), barley shall not be included in the 
program for a producer of malting barley exempted pursuant to 
Ante, p. 612. 
sectiou 105(c) (6) of the Agricultural Act of 1949 who partici-
pates only with respect to corn and grain sorghums and does not 
knowingly devote an acreage 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. 
"(2) There are hereby authorized to be appropriated such 
amounts as may be necessary to enable the Secretary to carry out 
this section 16(g). Obligations may be incurred in advance of 
appropriations therefor and the Commodity Credit Corporation 
is authorized to advance from its capital funds such sums as may 
be necessary to pay administrative expenses in connection with 
such program during the fiscal year ending June 30, 1963, and to 
pay such costs as may be incurred in carrying out section 303 of 
the Food and Agriculture Act of 1962. 
" (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 con-
tracts." 
SEC. 303. Payments in cash shall be made by Commodity Credit 
Corporation and payments in kind shall be made through the issuance 
of negotiable certificates which the Commodity Credit Corporation 
shall redeem for feed grains (valued at not less than the support price 
minus that part of the support price made available through payments 
in kind) and, notwithstanding any other provision of law, the Com-
modity Credit Corporation shall, in accordance with regulations pre-
scribed by the Secretary, assist the producer in the marketing of such 
certificates at such time and in such manner as the Secretary deter-
mines will best effectuate the purposes of the special feed grain pro-
gram for 1963 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 presentation for 
redemption shall be deducted from the value of the certificate. 
SEC. 304. Notwithstanding any other provision of law, the Secre-
tary may place such limits on the extent that producers may par-
ticipate in the special feed grain conservation program for 1963 
authorized by this Act as he determines necessary because of an emer-
gency created by drought or other disaster, or in order to prevent or 
alleviate a shortage in the supply of corn, grain sorghums, or barely. 
SEC. 305. The Agricultural Act of 1949, as amended, is amended by 
72 Stat. 994. 
Striking out subsection (a) of section 105 and inserting in lieu thereof 
7 USC1441 note.^l^^ f^Uo^ij^g. 
63 Stat. 1051. 
"(a) Notwithstanding the provisions of section 101 of this Act, 
7 use 1441. 
beginning with the 1964 crop, price support shall be made available 
to producers for each crop of corn at such level, not less than 50 per 
centum or more than 90 per centum of the parity price therefor, as 
the Secretary determines will not result in increasing Commodity 
Credit Corporation stocks of corn." 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
615 
SUBTITLE B — W H E A T 
PROGRAM FOR 
1 9 6 3 
SEC. 306. Price support for the 1963 crop of wheat shall be made 
available as provided in section 101 of the Agricultural Act of 1949, 
as amended, except that (1) price support shall be made available only 63 stat. losi. 
to cooperators, and only in the commercial wheat-producing area, 7 use 1441. 
(2) if the operator of the farm elects to participate in the program 
formulated under section 307— 
(A) price support shall be made available to the producers on 
such farm only if such producers divert from the production of 
wheat in accordance with the provisions of such program and 
acreage on the farm equal to the number of acres which such 
operator agrees to divert, and the agreement shall so provide, 
and 
(B) the level of price support for wheat of the 1963 crop to such 
participating producers shall be at a national average of two 
dollars per bushel and the amount by which such level of two dol-
lars per bushel exceeds the national average level available to 
cooperators who are not participating producers shall be made 
available as hereinafter provided, and 
(3) the national average level of price support for wheat of the 1963 
crop to cooperators who are not participating producers shall be one 
dollar and eighty-two cents per bushel. The amount by which the level 
of two dollars per bushel exceeds the level of price support available to 
cooperators who are not participating producers shall be made avail-
able through payments in kind, on the number of bushels of wheat 
determined by multiplying the actual acreage of wheat planted on the 
farm for harvest in 1963 by the normal yield of wheat for the farm. 
Such payments in kind shall be made through the issuance of nego-
tiable certificates which the Commodity Credit Corporation shall 
redeem for wheat (such wheat to be valued by the Secretary at not 
less than the current support price for wheat to cooperators who are 
not participants in the program formulated under section 307) and, 
notwithstanding any other provision of law, the Commodity Credit 
Corporation shall, in accordance with regulations prescribed by the 
Secretary, assist the producer in the marketing of such certificates. 
In the case of any certificate not presented for redemption within 30 
days of the date of its issuance, reasonable costs of storage and other 
carrying charges, as determined by the Secretary, for the period begin-
ning 30 days after its issuance and ending with the date of its presenta-
tion for redemption shall be deducted from the value of the certificate. 
The Secretary shall provide for the sharing of such certificates among 
the producers on the farm on the.basis of their respective shares in the 
wheat crop produced on the farm, or the proceeds therefrom. 
For 
purposes of section 407 of the Agricultural Act of 1949, the "current 
^3 stat. 1055. 
support price" for wheat during the marketing year for the 1963 crop 
" ""^ """ 
shall be the support price for such crop to cooperators w^ho are not 
participants in the program formulated under section 307. 
SEC. 307. (a) If marketing quotas are in effect for the 1963 crop of 
wheat, producers on any farm, except a farm on which a new farm 
wheat allotment is established for the crop, in the commercial wheat-
producing area shall be eligible for payments determined as provided 
m subsection (b) upon compliance with the conditions hereinafter 
prescribed: 
(1) Such producers shall divert from the production of wheat 
an acreage on the farm equal to 20 per centum of the higher of 
(i) the average acreage of the crops of wheat planted for harvest 
in the calendar years 1959, 1960, and 1961, w^ith adjustments for 
7 use 14:!7. 
616 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
abnormal weather conditions, established crop-rotation practices 
on the farm, and such other factors as the Secretary determines 
should be considered, but not to exceed 15 acres, or (ii) the farm 
acreage allotment for the 1963 crop of wheat. 
Such producers 
may divert additional acreage on the farm not in excess of the 
larger of one and one-half times the amount diverted under the 
preceding sentence or such acreage as will bring the total acreage 
diverted to 10 acres: Provided^ That the total acreage diverted 
shall not exceed the larger of (i) or (ii) of the preceding sentence. 
(2) 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 erosion, insects, weeds, 
and rodents: Provided^ That the Secretary may permit such 
diverted acreage to be devoted to the production of guar, sesame, 
safflower, sunflower, castor beans, and flax when such crops are 
not in surplus supply and will not be in surplus supply if per-
mitted to be grown on the diverted acreage, subject to the provi-
sions of subsection (b) (4) of this section. 
(3) The total acreage of cropland on the farm devoted to soil-
conserving uses, including summer-fallow and idle land, but 
excluding the acreage diverted as provided above and acreage 
diverted under the special 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 condi-
tions or other factors affecting production, established crop-
rotation practices on the farm, changes in the constitution of the 
farm, participation in other Federal farm programs, or to give 
effect to the provisions of law relating to release and reapportion-
ment or preservation of history. 
(4) The actual acreage planted to wheat for harvest on the 
farm in 1963 shall be reduced by the total amount of acres diverted 
under this section below whichever of the following acreages is 
the larger— 
(A) the farm acreage allotment for the 1963 crop of wheat; 
(B) the average acreage of the crops of wheat planted for 
harvest in the calendar years 1959,1960, and 1961 with adjust-
ments as provided above, but not to exceed 15 acres. 
(b) (1) Upon compliance with the conditions prescribed in sub-
section (a) producers on the farm shall be eligible for payments which 
shall be made by Commodity Credit Corporation in cash or wheat not 
in excess of 50 per centum of the value, at the estimated basic county 
support rate (available to cooperators who are not participants in 
the program formulated pursuant to this section) per bushel for 
Xumber 1 wheat for the county in which the farm is considered as 
being located for the administration of farm marketing quotas for 
wheat, 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 special crops pursuant to the proviso in 
subsection (a) (2) of this section, payment for which shall be com-
puted in accordance with subsection (b) (4) of this section. 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
617 
(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 conserva-
tion measures, and topography. To the extent that a producer 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. 
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 not less than the current support price for 
wheat to cooperators who are not participants in the program formu-
lated pursuant to this section. Wheat received as pa}^ment-in-kind 
njay be marketed without penalty but shall not be eligible for price 
support. 
(4) Payment with respect to diverted acreage devoted to special 
crops pursuant to the proviso of subsection {a) (2) of this section 
shall be at a rate determined by the Secretary to be fair and reason-
able taking into consideration the use of such acreage for the produc-
tion of such crops: Provided^ That in no event shall the payment 
exceed one-half the rate which would otherwise be applicable if such 
acreage were devoted to conservation uses and no price support shall 
be made available for the production of any such crop on such diverted 
acreage. 
(c) Any acreage diverted from the production of wheat to conserva-
tion uses for which payment is made under the program formulated 
pursuant to this section shall be in addition to any acreage diverted 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 conservation program 
or the Great Plains program for conservation practices carried out on 
any acreage devoted to soil-conserving uses under the program formu-
lated pursuant to this section. 
(d) 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. 
(e) Not to exceed 50 per centum of any payment to producers under 
this section may be made in advance of determination of performance. 
(f) The program formulated pursuant to this section may include 
such terms and conditions, in addition to those specifically provided 
for herein, as the Secretary determines are desirable to effectuate the 
purposes of this section. 
(g) Wheat stored to avoid or postpone a marketing quota penalty 
under the Agricultural Adjustment Act of 1938, as amended and 
52stat. 31. 
supplemented, shall not be released from storage for underplanting 
^ ^^^ ^^®^-
based upon acreage diverted hereunder, and in determining produc-
tion of the crop of wheat for the purpose of releasing wheat from 
storage on account of underproduction the normal yield of the acres 
diverted from the allotment shall be deemed to be actual production 
of wheat. 
(h) The Secretary is authorized to promulgate such regulations as 
may be necessary to carry out the provisions of this section. 
(i) The Commodity Credit Corporation is authorized to utilize its 
capital funds and other assets for the purpose of making the payments 
authorized herein and to pay administrative expenses necessary in 
carrying out this section during the period ending June 30, 1963. 
There is authorized to be appropriated such amounts as may be neces-
sary to pay administrative expenses necessary in carrying out this 
section after June 30, 1963. 
618 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT . 
SEC. 308. (a) Section 334(e) of the Agricultural Adjustment Act 
75 Stat. 300. 
of 1938, as amended, is amended by changing the period to a comma 
7 use 1334. 
c^t ^]jg gj^^j^ Q
-
f ^jjg j^gjit to the last sentence and addmg the following: 
Ante, p. 615. 
"or sectiou 307 of the Food and Agriculture Act of 1962." 
(b) The special wheat program formulated under section 307 of this 
Act shall not be applicable to any farm receiving an additional allot-
ment under section 334 (i) of the Agricultural Adjustment Act of 
72 Stat. 101; 
1938, as amended. 
75 Stat. 778. 
g^,^ 3Q9 j^gj^ ^^^ ^f Publlc Law 74, Seventy-seventh Congress, as 
75 Stat. 297; 
amended (7 U.S.C. 1340(7)), as amended, is amended by changing 
Post, p. 909. 
^YiQ period at the end thereof to a colon, and adding the following: 
''''Provided further^ That a farm marketing quota on the 1963 ci-op of 
wheat shall be applicable to any farm on w^hich the acreage of wheat 
exceeds the smaller of (1) 15 acres, or (2) the highest number of acres 
actually planted to wheat on the farm for harvest in any of the cal-
endar years 1959, 1960, or 1961." 
PR0(3RAM FOR 1904 AND SUBSEQUENT CROPS 
SUBTITLE B — W H E A T 
7 use 1331. 
SEC. 310. Section 331 of the Agricultural Adjustment Act of 1938, as 
52 Stat. 52. 
amended, is hereby amended by striking out the last paragraph thereof 
" '""" '""" 
and inserting in lieu thereof the following paragraphs: 
"Wheat which is planted and not disposed of prior to the date pre-
scribed by the Secretary for the disposal of excess acres of wheat is an 
addition to the total supply of wheat and has a direct effect on the 
price of wheat in interstate arid foreign commerce and may also affect 
the supply and price of livestock and livestock products. In the cir-
cumstances, wheat not disposed of prior to such date must be con-
sidered in the same manner as mechanically harvested wheat in order 
to achieve the policy of the Act. 
"The diversion of substantial acreages from wheat to the production 
of commodities w^hich are in surplus supply or which will be in surplus 
supply if they are permitted to be grown on the diverted acreage would 
burden, obstruct, and adversely affect interstate and foreign commerce 
in such commodities, and w^ould adversely affect the prices of such 
commodities in interstate and foreign commerce. Small changes in 
the supply of a commodity could create a sufficient surplus to affect 
seriously the price of such commodity in interstate and foreign com-
merce. Large changes in the supply of such commodity could have a 
more acute effect on the price of the commodity in interstate and for-
eign commerce and, also, could overtax the handling, processing, and 
transportation facilities through which the flow of interstate and 
foreign commerce in such commodity is directed. Such adverse effects, 
caused by overproduction in one year could further result in a deficient 
supply of the commodity in the succeeding year, causing excessive 
increases in the price of the commodity in interstate and foreign com-
merce in such year. 
It is^ therefore, necessary to prevent acreage 
diverted from the production of wheat to be used to produce com-
modities which are in surplus supply or which will be in surplus 
supply if they are permitted to be grown on the diverted acreage. 
"The provisions of this part affording a cooperative plan to wheat 
producers are necessary in order to minimize recurring surpluses and 
shortages of wheat in interstate and foreign commerce, to provide for 
the maintenance of adequate reserve supplies thereof, to provide for 
an adequate and orderly flow of wheat and its products in interstate 
and foreign commerce at prices which are fair and reasonable to 
farmers and consumers, and to prevent acreage diverted from the pro-
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
619 
duction of wheat from adversely affecting other commodities in inter-
state and foreign commerce." 
SEC. 311. Section 332 of the Agricultural Adjustment Act of 1938, 
as amended, is hereby amended by striking out the provisions of such 
es stat. 903. 
section and by inserting in lieu thereof the following: 
^ "^^ ^^''2. 
"NATIONAL MARKETING QUOTA 
"SEC. 332, (a) Whenever prior to April 15 in any calendar year the 
Secretary determines that the total supply of wheat in the marketing 
year beginning in the next succeeding calendar year will, in the 
absence of a marketing quota program, likely be excessive, the 
Secretary shall proclaim that a national marketing quota for wheat 
shall be in effect for such marketing year and for either the following 
marketing year or the following two marketing years, if the Secretary 
determines and declares in such proclamation that a two- or three-year 
marketing quota program is necessary to effectuate the policy 01 the 
Act. 
"(b) If a national marketing quota for wheat has been proclaimed 
for any marketing year, the Secretary shall determine and jjroclaim 
the aniount of the national marketing quota for such marketing year 
not earlier than January 1 or later than April 15 of the calendar year 
preceding the year in which such marketing year begins. The amount 
of the national marketing quota for w^heat for any marketing year 
shall be an amount of wheat which the Secretary estimates (i) will be 
utilized during such marketing year for human consumption in the 
United States as food, food products, and beverages, composed wholly 
or partly of wheat, (ii) will be utilized during such marketing year in 
the United States for seed, (iii) will be exported either in the form of 
wheat or products thereof, and (iv) as the average amount which was 
utilized as livestock (including poultry) feed in the marketing years 
beginning in 1959 and I960; less (A) an amount of wheat equal to the 
estimated imports of wheat into the United States during such market-
ing year and, (B) if the stocks of wheat owned by the Commodity 
Credit Corporation are determined by the Secretary to be excessive, an 
amount of wheat determined by the Secretary to be a desirable reduc-
tion in such marketing year in such stocks to achieve the policy of the 
Act: Provided, That if the Secretary determines that the total stocks of 
wheat in the Nation are insufficient to assure an adequate carryover for 
the next succeeding marketing year, the national marketing quota 
otherwise determined shall be increased by the amount the Secretary 
determines to be necessary to assure an adequate carryover: And pro-
vided further, That the national marketing quota for wheat for any 
marketing year shall be not less than one billion bushels. 
"(c) If, after the proclamation of a national marketing quota for 
wheat for any marketing year, the Secretary has reason to believe that, 
l)ecause of a national emergency or because of a material increase in the 
demand for wheat, the national marketing quota should be terminated 
or the amount thereof increased, he shall cause an immediate investiga-
tion to be made to determine whether such action is necessary in order 
to meet such emergency or increase in the demand for wheat. 
If, on 
the basis of such investigation, the Secretary finds that such action is 
necessary, he shall immediately proclaim such finding and the amount 
of any such increase found by him to be necessary and thereupon such 
national marketing quota shall be so increased or terminated. 
In case 
any national marketing quota is increased under this subsection, the 
Secretary shall provide for such increase by increasing acreage allot-
ments established \inder this part by a uniform percentage." 
620 
PUBLIC L
A
W 87-703-SEPT. 27, 1962 
[76 S 
TAT. 
SEC. 312. Section 333 of the Agricultural Adjustment Act of 1938, 
52 Stat. 53. 
as amended, is hereby amended to read as follows: 
7 u s e 1333. 
NATIONAL ACREAGE ALLOTMENT 
"SEC. 333. Whenever the amount of the national marketing quota 
for wheat is proclaimed for an^ marketing year, the Secretary at the 
same time shall proclaim a national acreage allotment for the crop of 
wheat planted for harvest in the calendar year in which such marketing 
year begins. The amount of the national acreage allotment for any 
crop of wheat shall be the number of acres which the Secretary deter-
mines on the basis of expected yields and expected underplantings of 
farm acreage allotments will, together with (1) the expected produc-
tion on the increases in acreage allotments for farms based upon small-
post, p. 621; 
farm base acreages pursuant to section 335, and (2) the expected pro-
use 1335. 
duction on increased acreages resulting from the small-farm exemp-
tion pursuant to section 335, make available a supply of wheat equal 
to the national marketing quota for wheat for such marketing year." 
SEC. 313. Section 334 of the Agricultural Adjustment Act of 1938, 
7 use 1334. 
as amended, is further amended as follows: 
75 Stat. 300. 
(1) By amending subsection (e) thereof by striking out in the 
first sentence thereof "any of the 1962, 1963, and 1964 crops" and 
inserting in lieu thereof "the 1962 and 1963 crops". 
70 Stat. 1117. 
(2) By repealing subsection (g) thereof and by redesignating 
subsections (h) and (i) thereof as (g) and (h) respectively. 
72 Stat. 101; 
(3) By amending subsection (i) thereof, redesignated by this 
; Stat. 778. 
section as subsection (h), by inserting the following sentence im-
mediately following the seventh sentence thereof: The land-use 
Post, p. 622. 
provisions of section 339 shall not be applicable to any farm re-
ceiving an additional allotment under this subsection.' 
(4) By adding at the end thereof the following new subsection: 
"(i) If, with respect to any crop of wheat, the Secretary finds that 
the acreage allotments of farms producing any type of wheat are in-
adequate to provide for the production of a sufficient quantity of such 
type of wheat to satisfy the demand therefor, the wheat acreage allot-
ment for such crop for each farm located in a county designated by 
the Secretary as a county which (1) is capable of producing such type 
of wheat, and (2) has produced such type of wheat for commercial 
food products during one or more of the five years immediately preced-
ing the year in which such crop is harvested, shall be increased by such 
uniform percentage as he deems necessary to provide for such quantity. 
No increase shall be made under this subsection in the wheat acreage 
allotment of any farm for any crop if any wheat other than such type 
of wheat is planted on such farm for such crop. 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 
55 Stat. 204. 
Public Law 74, Seventy-seventh Congress (7 U.S.C. 1340(6)), and 
52 Stat. 51. 
section 326(b) of this Act, relating to the reduction of the storage 
7 use 1326. 
amount of wheat shall apply to the allotment for the farm established 
without regard to this suDsection and not to the increased allotment 
under this subsection. The land-use provisions of section 339 shall not 
be applicable to any farm receiving an increased allotment under this 
subsection and the producers on such farms shall not be required to 
comply with such provisions as a condition of eligibility for price 
support." 
SEC. 314. Part I I I of subtitle B of title I I I of the Agricultural 
52 Stat. 52. 
Adjustment Act of 1938, as amended, is hereby amended oy adding 
immediately after section 334 thereof the following: 
7 u s e 1331-
1339 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
621 
"COMMERCIAL AREA 
"SEC. 334a. If the acreage allotment for any State for any crop of 
wheat is twenty-five thousand acres or less, the Secretary, in order to 
promote efficient administration of this Act and the Agricultural Act 
of 1949, may designate such State as outside the commercial wheat-
producing area for the marketing year for such crop. If such State is 
so designated, acreage allotments for such crop and marketing quotas 
for the marketing year therefor shall not be applicable to any farm 
in such State. Acreage allotments in any State shall not be increased 
by reason of such designation." 
SEC. 315. Section 335 of the Agricultural Adjustment Act of 1938, 
as amended, is hereby amended to read as follows: 
52 stat. 54. 
•
^ 
7 u s e 1335. 
"SMALL FARM EXEMPTION 
"SEC, 335. Notwithstanding any other provision of this part, no 
farm marketing quota for any crop of wheat shall be applicable to any 
farm with a farm acreage allotment of less than fifteen acres if the 
acreage of such crop of wheat does not exceed the small-farm base 
acreage determined for the farm, unless the operator elects in writing 
on a form and within the time prescribed by the Secretary to be sub-
ject to the farm acreage allotment and marketing quota. The small-
farm base acreage for a farm shall be the smaller of (A) the average 
acreage of the crop of wheat planted for harvest in the three years 
1959, 1960, and 1961, or such later three-year period, excluding 1963, 
determined by the Secretary to be representative, with adjustments 
for abnormal weather conditions, established crop-rotation practices 
on the farm, and such other factors as the Secretary determines should 
be considered for the purpose of establishing a fair and equitable 
small-farm base acreage, or (B) fifteen acres. The acreage allotment 
for any farm shall be the larger of (1) the small-farm base acreage 
determined as provided above on the basis of the three-year period 
1959-1961, reduced by the same percentage by which the national acre-
age allotment for the crop is reduced below fifty-five million acres, or 
(2) the acreage allotment determined without regard to (1) above. If 
the operator of any such farm fails to make such election with respect 
to any crop of wheat, (i) for the purposes of Public Law 74, Seventy-
seventh Congress (7 U.S.C. 1340), as amended, the farm acreage allot- 
55 stat. 203. 
ment for such crop of wheat shall be deemed to be the larger of (A) 
the small-farm base acreage or (B) the acreage allotment for the farm, 
(ii) the land-use provisions of section 339 shall be inapplicable to the 
Post, p. 622. 
farm, (iii) such crop of wheat shall not be eligible for price support, 
and (iv) wheat marketing certificates applicable to such crop shall 
not be issued with respect to the farm. 
The additional acreage 
required to provide acreage allotments for farms based upon small-
farm base acreages under this section shall be in addition to National, 
State, and county acreage allotments." 
SEC. 316. Section 336 of the Agricultural Adjustment Act of 1938, 
as amended, is hereby amended to read as follows: 
52 stat. ss. 
7 u s e 1336. 
"REFERENDUM 
"SEC. 336. If a national marketing quota for wheat for one, two, or 
three marketing years is proclaimed, the Secretary shall, not later than 
sixty days after such proclamation is published in the Federal Register, 
conduct a referendum, by secret ballot, of farmers to determine 
whether they favor or oppose marketing quotas for the marketing year 
or years for which proclaimed. 
Any producer who has a farm acreage 
allotment shall be eligible to vote in any referendum held pursuant to 
622 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
tliis section, except that a producer who has a farm acreage allotment 
of less than fifteen acres shall not be eligible to vote unless the farm 
Ante, p. 621. 
Operator elected pursuant to section 335 to be subject to the farm mar-
keting quota. 
The Secretary shall proclaim the results of any referen-
dum held hereunder within thirty days after the date of such referen-
dum, and if the Secretary determines that more than one-third of the 
farmers voting in the referendum voted against marketing quotas, the 
Secretary shall proclaim that marketing quotas will not be in effect 
with respect to the crop of wheat produced for harvest in the calendar 
year following the calendar year in which the referendum is held. 
If 
the Secretary/determines that two-thirds or more of the farmers voting 
in a referendum approve marketing quotas for a period of two or 
three marketing years, no referendum shall be held for the subsequent 
year or years of such period." 
SEC. 317. Section 337 of the Agricultural Adjustment Act of 1938, 
52 Stat. 55^ 
as amended, is hereby repealed. 
" "
*
=
"
" 
gj,(^ gj^g rpj^g Agricultural Adjustment Act of 1938, as amended, is 
hereby amended by adding after section 338 a new section as follows: 
7 u s e 1337. 
u 
LAND USE 
"SEC. 339. (a) (1) During any year in which marketing quotas for 
wheat are in effect, the producers on any farm (except a new farm 
receiving an allotment from the reserve for new farms) on which any 
crop is produced on acreage required to be diverted from the produc-
tion of wheat shall be subject to a penalty on such crop, in addition to 
any marketing quota penalty applicable to such crops, as provided in 
this subsection unless (1) the crop is designated by the Secretary as 
one which is not in surplus supply and will not be in surplus supply 
if it is permitted to be grown on the diverted acreage, or as one the 
production of which will not substantially impair the purpose of the 
requirements of this section, or (2) no wheat is produced on the farm, 
and the producers have not filed an agreement or a statement of inten-
tion to participate in the payment program formulated pursuant to 
subsection (b) of this section. The acreage required to be diverted 
from the production of wheat on the farm shall be an acreage of crop-
land equal to the number of acres determined by multiplying the farm 
acreage allotment by the diversion factor determined by dividing the 
number of acres by which the national acreage allotment is reduced 
below fifty-five million acres by the number of acres in the national 
acreage allotment. 
The actual production of any crop subject to 
penalty under this subsection shall be regarded as available for market-
ing and the penalty on such crop shall be computed on the actual 
acreage of such crop at the rate of 65 per centum of the parity price per 
bushel of wheat as of May 1 of the calendar year in which such crop is 
harvested, multiplied by the normal yield of wheat per acre established 
for the farm. 
Until the producers on any farm pay the penalty on 
such crop, the entire crop of wheat produced on the farm and any 
subsequent crop of wheat subject to marketing quotas in which the 
producer has an interest shall be subject to a lien in favor of the United 
States for the amount of the penalty. 
Each producer having an 
interest in the crop or crops on acreage diverted or required to be 
diverted from the production of wheat shall be jointly and severally 
liable for the entire amount of the penalty. 
The persons liable for the 
payment or collection of the penalty under this section shall be liable 
also for interest thereon at the rate of 6 per centum per annum from 
the date the penalty becomes due until the date of payment of such 
penalt3\ 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
623 
"(2) The Secretary may require that the acreage on any farm 
diverted from the production of wheat be land which was diverted 
from the production of wheat in the previous year, to the extent he 
determines that such requirement is necessary to effectuate the pur-
poses of this subtitle. 
"(3) The Secretary may permit the diverted acreage to be grazed 
in accordance with regulations prescribed by the Secretary. 
"(b) The Secretary is authorized to formulate and carry out a pro-
gram with respect to the 1964 and 1965 crops of wheat under which, 
subject to such terms and conditions as he determines are desirable 
to effectuate the purposes of this section, payments may be made in 
amounts not in excess of 50 per centum of the estimated bsisic county 
support rate on the normal production of the acreage diverted taking 
into account the income objectives of the Act, determined by the Sec-
retary to be fair and reasonable with respect to acreage diverted pur-
suant to subsection (a) of this section. The Secretary may permit 
producers on any farm to divert from the production of wheat an 
acreage, in addition to the acreage diverted pursuant to subsection (a), 
equal to 20 per centum of the farm acreage allotment for wheat: 
Provided., That the producers on any farm may, at their election, 
divert such acreage in addition to the acreage diverted pursuant to 
subsection (a), as will bring the total acreage diverted on the farm to 
fifteen acres. Such program shall require (1) that the diverted acre-
age shall be devoted to conservation uses approved by the Secretary; 
(2) that the total acreage of cropland on the farm devoted to sod-
conserving uses, including summer fallow and idle land but excluding 
the acreage diverted as provided above, shall be not less than the total 
average acreage of cropland devoted to soil-conserving uses including 
summer fallow and idle land on the farm during a representative 
period, as determined by the Secretary, adjusted to the extent the 
Secretary determines appropriate for (i) abnormal weather condi-
tions or other factors affecting production, (ii) established crop-rota-
tion practices on the farm, (iii) participation in other Federal farm 
programs, (iv) unusually high percentage of land on the farm devoted 
to conserving uses, and (v) other factors which the Secretary deter-
mines should be considered for the purpose of establishing a fair and 
equitable soil-conserving acreage for the farm; and (3) that the pro-
ducer shall not knowingly exceed (i) any farm acreage allotment in 
effect for any commodity produced on the farm, and (ii) except as 
the Secretary may by regulations prescribe, with the farm acreage 
allotments on any other farm for any crop in which the producer has 
a share: Provided^ That no producer shall be deemed to have exceeded 
a farm acreage allotment for wheat if the entire amount of the farm 
marketing excess is delivered to the Secretary or stored in accordance 
with applicable regulations to avoid or postpone payment of the 
penalty: Arid promded further^ That no producer shall be deemed 
to have exceeded a farm acreage allotment for any crop of wheat if 
the farm is exempt from the farm marketing quota for such crop under 
section 335. The producers on a new farm shall not be eligible for 
Ants, p. 521. 
payments hereunder. The Secretary shall provide for the sharing of 
payment among producers on the farm on a fair and equitable, basis. 
Payments may be made in cash or in wheat. 
"(c) The Secretary may provide for adjusting any payment on 
account of failure to comply with the terms and conditions of the 
land-use program formulated under subsection (b) of this section. 
"(d) Not to exceed 50 per centum of any payment to producers 
under subsection (b) of this section may be made in advance of deter-
mination of performance. 
; 
624 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
" (e) The Secretary may permit the diverted acreage to be de\'oted 
to the production of guar, sesame, safflower, sunflower, castor beans, 
and flax, when such crops are not in surplus supply and will not be in 
surplus supply if permitted to be grown on the diverted acreage, sub-
ject to the condition that payment with respect to diverted acreage 
devoted to any such crop shall be at a rate determined by the Secretary 
to be fair and reasonable taking into consideration the use of such 
acreage for the production of such crops: Provided^ That in no event 
shall the payment exceed one-half the rate which would otherwise be 
applicable if such acreage were devoted to conservation uses and no 
price support shall be made available for the production of any such 
crop on such diverted acreage. 
"(f) The program formulated pursuant to subsection (b) of this 
section may include such terms and conditions, including provision for 
the control of erosion, in addition to those specifically provided for 
herein, as the Secretary determines are desirable to effectuate the pur-
poses of this section. 
" (g) The Secretary is authorized to promulgate such regulations as 
may be desirable to carry out the provisions of this section. 
"(h) The Commodity Credit Corporation is authorized to utilize its 
capital funds and other assets for the purpose of making the payments 
authorized in this section and to pay administrative expenses necessary 
in carrying out this section during the period ending June 30, 1963. 
There is authorized to be appropriated such amounts as may be neces-
sary thereafter to pay such administrative expenses." 
SEC. 319. Public Law 74, Seventy-seventh Congress (7 U.S.C. 1340), 
55 Stat. 203. 
as amended, is hereby amended as follows: 
(1) By amending paragraph (1) to read as follows: 
" (1) The farm marketing quota for any 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 allotment for such crop unless the producer, in accordance 
with regulations issued by the Secretary and within the time pre-
scribed 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 an amount equal to the actual production of the number 
of acres of wheat on the farm in excess of the farm acreage allot-
ment for such ci*op. In determining the farm marketing quota 
and farm marketing excess, any acreage of wheat remaining after 
the date prescribed by the Secretary for the disposal of excess 
acres of wheat shall be included as acreage of wheat on the farm, 
and the production thereof shall be appraised in such manner as 
the Secretary determines will provide a reasonably accurate esti-
mate of such production. Any acreage of wheat disposed of in 
accordance with regulations issued by the Secretary prior to such 
date as may be prescribed by the Secretary shall be excluded 
in determining the farm marketing quota and farm marketing 
excess. Self-seeded (volunteer) wheat shall be included in deter-
mining the acreage of wheat. Marketing quotas for any market-
ing year shall be in effect with respect to wheat harvested in the 
calendar year in which such marketing year begins notwithstand-
ing that the wheat is marketed prior to the beginning of such 
marketing year." 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
625 
(2) By amending paragraph (2) to read as follows: 
ss stat. 204. 
"(2) Whenever farm marketing quotas are in effect witn 
respect to any crop of wheat, the producers on a farm shall be 
subject to a penalty on the farm marketing excess of wheat at a 
rate per bushel equal to 65 per centum of the parity price per 
bushel of wheat as of May 1 of the calendar year in which the 
crop is harvested. 
Each producer having an interest in the crop 
of wheat on any farm for which a farm marketing excess of wheat 
is determined shall be jointly and severally liable for the entire 
amount of the penalty on the farm marketing excess." 
(3) By inserting in paragraph (3) "twice" before "the normal 
production" in the first and second sentences thereof, and by 
inserting in the second sen,tence thereof "twice the" between "of" 
and "normal" in the phralse "upon the basis of normal produc-
tion", by striking out "corn and" from the first sentence thereof, 
and by striking out "corn or" from the last sentence thereof. 
(4) By amending paragraph (4) to read as follows: 
" (4) Until the producers on any farm store, deliver to the Sec-
retary, or pay the penalty on, the farm marketing excess of any 
crop of wheat, the entire crop of wheat produced on the farm 
and any subsequent crop of wheat subject to marketing quotas in 
which the producer has an interest shall be subject to a lien in 
favor of the United States for the amount of the penalty." 
(5^ By striking out "corn or" from paragraph (5). 
(6) By striking out "corn or" from paragraph (6). 
(7) By repealing paragraph (7), and by renumbering para- 
7s stat. 297. 
graphs (8) through (11) as (7) through (10), respectively. 
(8) By striking out "corn or" and ", as the case may be," from 
paragraph (8), redesignated by this section as paragraph (7), 
5s stat. 205. 
and adding at the end of such paragraph the following sentence: 
"If the buyer fails to collect such penalty, such buyer and all 
persons entitled to share in the wheat marketed from the farm or 
the proceeds thereof shall be jointly and severally liable for such 
penalty." 
(9) By repealing paragraph (12), and by adding the follow- 
55 stat. «72. 
in^ new paragraphs to follow paragraph (11), redesignated by 
this section as paragraph (10) : 
"(11) The persons liable for the payment or collection of the 
penalty on any amount of wheat shall be liable also for interest 
thereon at the rate of 6 per centum per annum from the date the 
penalty becomes due until the date of payment of such penalty. 
"(12) If marketing quotas for wheat are not in effect for any 
marketing year, all previous marketing quotas applicable to wheat 
sljtill be terminated, effective as of the first day of such marketing 
year. Such termination shall not abate any penalty previously 
incurred by a producer or relieve any buyer of the duty to remit 
penalties previously collected by him." 
SEC. 320. Section 301(b) (13) of the Agricultural Adjustment Act 
of 1938, as amended, is amended— 
7 use 1301. 
(1) by striking out paragraph (A) ; 
68 stat. 902. 
(2) by inserting in paragraphs (D) and (E) after the words 
70 stat. 212. 
"in the case of rice" the words "and wheat", by inserting in said 
paragraphs after the words "per acre of rice" the following: "or 
wheat, as the case may be,", and by inserting in said paragraph 
after "determined" the^following: "in the case of rice, or during 
the five years immediately preceding the year in which such 
normal yield is determined in the case of wheat"; 
(3) by striking from paragraph (G) the following: 
(A) 
"wheat," in each of the tw^o places it first occurs therein; (B) 
"and, in the case of wheat, but not in the case of corn, cotton, or 
78135 0-63—43 
7 use 1301 et 
626 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 STAT. 
A
^
'
s .H.« ^a 
peanuts, for trends in yields''; (C) "ten calendar years in the case 
of wheat, and"; and (D) "in the case of corn, cotton, or peanuts,". 
SEC. 321. Section 371 of the Agricultural Adjustment Act of 1938, 
7 use 1371. 
as amended, is hereby amended as follows: 
52 Stat. 64. 
(1) Subsectiou (a) is amended by deleting "corn, wheat," in 
the first sentence thereof. 
68 Stat. 904. 
(2) TliB first senteiice of subsection (b) is amended by striking 
out "any national acreage allotment for corn or", "wheat," and 
"in order to effect the declared policy of this Act or". 
SEC. 322. Section 385 of the Agricultural Adjustment Act of 1938, 
52 Stat. 68. 
as amended, is hereby amended by inserting in the first sentence after 
l^ntl^p.^622. 
"parity payment," the following: "payment under section 339,". 
SEC. 323. The amendments to the Agricultural Adjustment Act of 
1938, as amended, and to Public Law 74, Seventy-seventh Congress, 
as amended, made by sections 310 through 322 of this Act shall be in 
effect only wdth respect to programs applicable to the crops planted 
for harvest in the calendar year 1964 or any subsequent year and the 
marketing years beginning in the calendar year 1964, or any subsequent 
year. 
W H E A T MARKETING ALLOCATION PROGRAM 
SEC. 324. Title I I I of the Agricultural Adjustment Act of 1938, as 
52 Stat. 38. 
amended, is hereby amended (1) by designating subtitles D and E 
" ' " " 
"' 
as subtitles E and F, respectively, and (2) by inserting after subtitle 
C a new subtitle D as follows: 
"SUBTITLE D—^^VHEAT MARKETING ALLOCATION 
"LEGISLATI^T. FINDINGS 
"SEC. 379a. Wheat, in addition to being a basic food, is one of the 
great export crops of American agriculture and its production for 
domestic consumption and for export is necessary to the maintenance 
of a sound national economy and to the general welfare. 
The move-
ment of wheat from producer to consumer, in the form of the com-
modity or any of the products thereof, is preponderantly in interstate 
and foreign commerce. Unreasonably low prices of wheat to pro-
ducers impair their purchasing power for nonagricultural products 
and place them in a position of serious disparity with other industrial 
groups. The conditions affecting the production of wheat are such 
that without Federal assistance, producers cannot effectively prevent 
disastrously low prices for wheat." It is necessary, in order to assist 
wheat producers in obtaining fair prices, to regulate the price of wheat 
used for domestic food and for exports in the manner provided in this 
subtitle. 
"WHEAT MARKETING ALLOCATION 
"SEC. 379b. During any marketing year for which a marketing quota 
is in effect for wheat, beginning with the marketing year for the 1964 
crop, a wheat marketing allocation program shall be in effect as pro-
vided in this subtitle. Whenever a wheat marketing allocation pro-
gram is in effect for any marketing year the Secretai-y shall determine 
(1) the wheat marketing allocation for such year which shall be the 
amount of wheat which in determining the national marketing quota 
for such marketing year he estimated would be used during such year 
for human consumption in the United States, as food, food products, 
and beverages, composed wholly or partly of wheat, and that portion 
of the amount of wheat which in determining such quota he estimated 
would be exported in the form of wheat or products thereof during 
the marketing year on which the Secretary determines that marketing 
, 0"f; 
76 STAT. 1 
PUBLIC LAW 87-703-SEPT. 27, 1962 
627 
certificates shall be issued to producers in order to achieve, insofar as 
practicable, tlie price and income objectives of this subtitle, and (2) 
the national allocation percentage which shall be the percentage which 
the national marketing allocation is of the national marketing quota. 
Each farm shall receive a wheat marketing allocation for such market-
ing year equal to the number of bushels obtained by multiplying the 
number of acres in the farm acreage allotment for wheat by the normal 
yield of wheat for the farm as determined by the Secretary, and multi-
plying the resulting number of bushels by the national allocation 
percentage. 
If a noncommercial wheat-producing area is established 
for any marketing year, farms in such area shall be given wheat 
marketing allocations which are determined by the Secretary to be fair 
and reasonable in relation to the wheat marketing allocation given 
producers in the commercial wheat-producing area. 
"MARKETING 
CERTIFICATES 
"SEC. 379c. (a) The Secretary shall provide for the issuance of wheat 
marketing certificates for each marketing year for which a wheat mar-
keting allocation program is in effect for the purpose of enabling pro-
ducers on any farm with respect to which certificates are issued to 
receive, in addition to the other proceeds from the sale of wheat, an 
amount equal to the value of such certificates. 
The wheat marketing 
certificates issued with respect to any farm for any marketing year 
shall be in the amount of the farm wheat marketing allocation for 
such year, but not to exceed (i) the actual acreage of wheat planted 
on the farm for harvest in the calendar year in which the marketing 
year begins multiplied by the normal yield of wheat for the farm, 
plus (ii) the amount of wheat stored to avoid or postpone a marketing 
quota penalty, which is released from storage during the marketing 
year on account of underplanting or underproduction. 
The Secretary 
shall provide for the sharing of wheat marketing certificates among 
producers on the farm on the basis of their respective shares in the 
wheat crop produced on the farm, or the proceeds therefrom. 
"(b) No producer shall be eligible to receive wheat marketing cer-
tificates with respect to any farm for any marketing year in which a 
marketing quota penalty is assessed for any commodity on such farm 
or in which the farm has not complied with the land-use requirements 
of section 339 to the extent prescribed by the Secretary, or in which, 
except as the Secretary may by regulation prescribe, the producer 
exceeds the farm acreage allotment on any other farm for any com-
modity in which he has an interest as a producer. 
No producer shall 
be deemed to have exceeded a farm acreage allotment for wheat if the 
entire amounf of the farm marketing excess is delivered to the Secre-
tary or stored in accordance with applicable regulations to avoid or 
postpone payment of the penalty. 
No producer shall be deemed to 
have exceeded the farm acreage allotment for wheat on anv other farm, 
if such farm is exempt from the farm marketing quota for such crop 
under section 335. 
"(c) Whenever a wheat marketing allocation program is in effect 
for any marketing year, the Secretary shall determine and proclaim for 
such marketing year the face value per bushel of marketing certificates. 
The face value per bushel of marketing certificates shall be equal to the 
amount by which the level of price support for wheat accompanied 
by certificates exceeds the level of price support for wheat not accom-
panied by certificates (noncertificate wheat). 
"(d) Marketing certificates and transfers thereof shall be repre-
sented by such documents, marketing cards, records, accounts, certifi-
cations, or other statements or forms as the Secretary may prescribe. 
Ante, p. 622. 
Ante, p. 621. 
628 
PUBLIC LAW 87-703-^EPT. 27, 1962 
[76 STAT. 
"MARKETING RESTRICTIONS 
"SEC. 379d. (a) All persons are prohibited from acquiring marketing 
certificates from the producer to whom such certificates are issued, 
unless such certificates are acquired in connection with the acquisition 
from such producer of a number of bushels of wheat equivalent to the 
marketing certificates. 
Marketing certificates shall be transferable 
only in accordance with regulations prescribed by the Secretary. Any 
unused certificates legally held by persons other than the producer to 
whom such certificates are issued shall be purchased by Commodity 
Credit Corporation if tendered to the Corporation for purchase in 
accordance with regulations prescribed by the Secretary. 
Notwith-
standing the foregoing provisions of this section, Commodity Credit 
Corporation is authorized to purchase from producers certificates not 
accompanied by wheat in cases where the Secretary determines that it 
would constitute an undue hardship to require the producer to transfer 
his certificates only in connection with the disposition of wheat. 
"(b) During any marketing year for which a wheat marketing 
allocation program is in effect, (i) all persons engaged in the process-
ing of wheat into food products shall, prior to marketing any such 
product for human food in the United States, acquire marketing 
certificates equivalent to the number of bushels of wheat contained in 
such product, and (ii) all persons exporting wheat or food products 
shall prior to such export acquire marketing certificates equivalent to 
the number of bushels so exported. 
Marketing certificates shall be 
valid to cover only sales or exportations made during the marketing 
year with respect to which they are issued, and after oeing once used 
to cover a sale or export of a food product or an export of wheat shall 
be void and shall be disposed of in accordance with regulations pre-
scribed by the Secretary. Notwithstanding the foregoing provisions 
hereof, the Secretary may require marketing certificates issued for any 
marketing year to be acquired to cover sales or exportations made on or 
after the date during the calendar year in which wheat harvested in 
such calendar year begins to be marketed as determined by the Secre-
tary even though such wheat is marketed prior to the beginning of the 
marketing year, and marketing certificates for such marketing year 
shall be valid to cover sales or exportations made on or after the date 
so determined by the Secretary. 
"(c) Upon the giving of a bond or other undertaking satisfactory 
to the Secretary to secure the purchase of and payment for such 
marketing certificates as may be required, and subject to such regu-
lations as he may prescribe, any person required to have marketing 
certificates in order to market or export a commodity may be permitted 
to market any such cominodity without having first acquired market-
ing certificates. 
"Foodprod- 
"(d) As used in this subtitle, the term 'food products' means any 
product composed wholly or partly of wheat to be used for human 
consumption, including beverage. 
"ASSISTANCE IN PURCHASE AND SALE OF MARKETING CERTIFICATES 
"SEC. 379e. For the purpose of facilitating the purchase and sale of 
marketing certificates, the Commodity Credit Corporation is author-
ized to issue, buy, and sell marketing certificates m accordance with 
regulations prescribed by the Secretary. 
Such regulations may au-
thorize the Corporation to issue and sell certificates in excess of the 
quantity of certificates which it purchases. 
Such regulations may 
authorize the Corporation in the sale of marketing certificates to 
charge, in addition to the face value thereof, an amount determined 
ucts.»» 
76 STAT. ] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
629 
by the Secretary to be appropriate to cover estimated administrative 
costs in connection with the purchase and sale of the certificates and 
estimated interest incurred on funds of the Corporation invested in 
certificates purchased by it. 
(( 
CONVERSION FACTORS 
"SEC. 379f. The Secretary shall establish conversion factors which 
shall be used to determine the amount of wheat contained in any food 
product. The conversion factor for any such food product shall be 
determined upon the basis of the weight of wheat used in the manu-
facture of such product. 
li AUTHORITY TO FACILITATE TRANSITION 
"SEC. 379g. The Secretary is authorized to take such action as he 
determines to be necessary to facilitate the transition from the pro-
gram currently in effect to the program provided for in this subtitle. 
Notwithstanding any other provision of this subtitle, such authority 
shall include, but shall not be limited to, the authority to exempt all or 
a portion of the wheat or food products made therefrom in the chan-
nels of trade on the effective date of the program under this subtitle 
from the marketing restrictions in subsection (b) of section 379d, or 
to sell certificates to persons owning such wheat or food products at 
such prices as the Secretary may determine. Any such certificate shall 
be issued by Commodity Credit Corporation. 
a 
REPORTS AND RECORDS 
"SEC. 379h. This section shall apply to processors of wheat, ware-
housemen and exporters of wheat and food products, and all persons 
purchasing, selling, or otlierwise dealing in wheat marketing certifi-
cates. Any such person shall, from time to time on request of the 
Secretary, report to the Secretary such information and keep such 
records as the Secretary finds to be necessary to enable him to carry 
out the provisions of this subtitle. Such information shall be reported 
and such records shall be kept in such manner as the Secretary shall 
prescribe. 
For the purpose of ascertaining the correctness of any 
report made or record kept, or of obtaining information required to be 
furnished in any report, but not so furnished, the Secretary is hereby 
authorized to examine such books, papers, records, accounts, con-e-
spondence, contracts, documents, and memorandums as he has reason 
to believe are relevant and are within the control of such person. 
(C 
PENALTIES 
"SEC. 379i. (a) Any person who violates or attempts to violate or 
who participates or aids in the violation of any of the provisions of 
subsection (b) of section 379d of this Act shall forfeit to the United 
States a sum equal to two times the face value of the marketing certifi-
cates involved in such violation. 
Such forfeiture shall be recoverable 
in a civil action brought in the name of the United States. 
"(b) Any person, except a producer in his capacity as a producer, 
who violates or attempts to violate or who participates or aids in the 
violation of any provision of this subtitle, or of any regulation, govern-
ing the acc[uisition, disposition, or handling of marketing certificates 
or who fails to make any report or keep any record as required by 
section 379h shall be deemed guilty of a misdemeanor and upon 
conviction thereof shall be subject to a fine of not more than $5,000 
for each violation. 
630 
PUBLIC LAW 87-703-SEPT. 27, 1962 
[76 S TAT. 
"(c) Any person who, in his capacity as a producer, knowingly 
violates or attempts to violate or participates or aids in the violation 
of any provision of this subtitle, or of any regulation, governing the 
acquisition, disposition, or handling of marketing certificates or fails 
to make any report or keep any record as required by section 379h 
shall, (i) forfeit any right to receive marketing certificates, in whole 
or in part as the Secretary may determine, with respect to the farm 
or farms and for the marketing year with respect to which any such 
act or default is committed, or (ii), if such marketing certificates have 
already been issued, pay to the Secretary, upon demand, the amount of 
the face value of such certificates, or such part thereof as the Secretary 
may determine. Such determination by the Secretary with respect to 
the amount of such marketing certificates to be forfeited or the amount 
to be paid hj such producer shall take into consideration the circum-
stances relating to the act or default committed and the seriousness 
of such a:ct or default. 
"(d) Any person who falsely makes, issues, alters, forges, or coun-
terfeits any marketing certificate, or with fraudulent intent possesses, 
transfers, or uses any such falsely made, issued, altered, forged, or 
counterfeited marketmg certificate, shall be deemed guilty of a felony 
and upon conviction thereof shall be subject to a fine of not more than 
$10,000 or imprisonment of not more than ten years, or both. 
li REGULATIONS 
"SEC. 379j. The Secretary shall prescribe such regulations as may be 
necessary to carry out the provisions of this subtitle including but not 
limited to regulations governing the acquisition, disposition, or han-
dling of marketing certificates." 
63 Stat. 1051. 
SEC. 325. The Agricultural Act of 1949, as amended, is amended as 
7 use 1421 note, f o l l o w s : 
74 Stat. 6. 
(1) By inserting after section 106 the following new section: 
7 use 1445. 
"SEC. 107. Notwithstanding the provisions of section 101 of this Act, 
beginning with the 1964 crop— 
" (1) price support for wheat accompanied by marketing certifi-
cates shall be at such level not less than 65 per centum or more than 
90 per centum of the parity price therefor as the Secretary deter-
mines appropriate taking into consideration the factors speci-
es Stat. 1054. 
fied in section 401(b), 
7 use 1421. 
«^2^ jf marketing quotas are in effect for wheat price support 
for wheat not accompanied by marketing certificates shall be at 
such level as the Secretary determines appropriate taking into 
consideration competitive world prices of wheat, the feeding value 
of wheat in relation to feed grains, and the level at which price 
support is made available for feed grains, 
"(3) price support shall be made available only to cooperators; 
and if a commercial wheat-producing area is established for such 
crop, price support shall be made available only in the commercial 
wheat-producing area, 
" (4) the level of price support for any crop of wheat for which 
'
a 
national marketing quota is not proclaimed or for which market-
ing quotas have been disapproved by producers shall be as pro-
vided in section 101, and 
"(5) if marketing quotas are in effect for the crop of wheat, a 
'cooperator' with respect to any crop of wheat produced on a farm 
'
^ 
shall be a producer who (i) does not knowingly exceed (A) the 
farm acreage allotment for wh^at or any other commodity on the 
farm or (B) except as the Secretary may by regulation pre-
scribe, the farm acreage allotment on any other farm for any 
76 STAT.] 
PUBLIC LAW 87-703-SEPT. 27, 1962 
631 
commodity in which he has an interest as a producer, and (ii) 
complies with the land-use requirements of section 339 of the Agri-
cultural Adjustment Act of 1938, as amended, to the extent pre-
scribed by the Secretary. If marketing quotas are not in effect 
for the crop of wheat, a 'cooperator' with respect to any crop of 
wheat produced on a farm shall be a producer who does not 
knowingly exceed the farm acreage allotment for wheat. 
No 
producer shall be deemed to have exceeded a farm acreage allot-
ment for wheat if the entire amount of the farm marketing excess 
' 
is delivered to the Secretary or stored in accordance with appli-
cable regulations to avoid or postpone payment of the penalty, 
but the producer shall not be eligible to receive price support on 
such marketing excess. No producer shall be deemed to have 
exceeded the farm acreage allotment for wheat on any other farm, 
if such farm is exempt from the farm marketing quota for such 
crop under section 335." 
(2) By changing the period at the end of the third sentence in 
section 407 to a colon and adding the following:'"''Provided^ That 
if a wheat marketing allocation program is in effect, the current 
support price for wheat shall be the support price for wheat 
accompanied by marketing certificate and wheat sold shall be 
accompanied by a marketing certificate." 
• SEC. 326. Notwithstanding any other provision of law, performance 
rendered in good faith in reliance upon action or advice of an author-
ized representative of the Secretary may be accepted as meeting the 
requirements of subsections (c), (d), and (g) of section 16 of the Soil 
Conservation and Domestic Allotment Act, as amended, or of section 
307 of the Food and Agriculture Act of 1962, section 339 of the Agri-
cultural Act of 1938, as amended, or of section 124 of the Agricultural 
Act of 1961, and payment may be made therefor in accordance with 
such action or advice to the extent the Secretary deems it desirable in 
order to provide fair and equitable treatment. 
SEC. 327. In the establishment of State, county, and farm acreage 
allotments for wheat under the Agricultural Adjustment Act of 1938, 
as amended, the acreage which is determined under regulations of the 
Secretary to have been diverted from the production of wheat under the 
special programs formulated pursuant to section 307 of this Act, sec-
tion 339 of the Agricultural Adjustment Act of 1938, as amended, and 
section 124 of the Agricultural Act of 1961, shall be credited to the 
State, county, and farm as though such acreage had actually been 
devoted to the production of wheat. 
SEC. 328. Effective with the 1964 crop, during any year in which an 
acreage diversion program is in effect for feed grains, the Secretary 
shall, notwithstanding any other provision of law, permit producers of 
feed grains to have acreage devoted to the production of feed grains 
considered as devoted to the production of wheat and producers of 
wheat to have acreage devoted to the production of wheat considered 
as devoted to the production of feed grains to such extent and subject 
to such terms and conditions as the Secretary determines will not 
impair the effective operation of the program for feed grains or wheat. 
Ante, p. 622. 
Ante, p. 621. 
63 Stat. 1055. 
7 u s e 1427. 
75 Stat. 6, 302; 
Ante, p. 613. 
16 u s e 590p. 
Ante, 
p,. 615. 
Ante, 
p,. 622. 
75 Stat. 297. 
7 u s e 1334 
note. 
TITLE IV—GENERAL PROVISIONS 
SEC. 401. The Consolidated Farmers Home Administration Act of 
1961 (75 Stat. 307) is amended as follows: 
7 use 1921 
(1) By inserting in section 303 after "use and conservation" "°7*usc 1923. 
a comma and the following "including recreational uses and fa-
cilities" : 
632 
PUBLIC LAW 87-704-SEPT. 27, 1962 
[76 STAT. 
7 u s e 1926. 
7 u s e 1929. 
7 u s e 1942. 
"Farmers.»» 
••Farming." 
68 Stat. 906. 
7 u s e 608c. 
75 Stat. 293. 
7 u s e 1427. 
(2) By inserting in section 306(a) after "soil conservation 
practices," the following: "shifts in land use including the devel-
opment of recreational facilities,"; 
(3) By striking out in section 309 (f) (1) the figure "$10,000,000'' 
and inserting in lieu thereof the figure "$25,000,000"; 
(4) By inserting in section 312 after the words "and conserva-
tion" the words "including recreational uses and facilities"; and 
(5) By adding at the end thereof a new section as follows: 
"SEC. 343. As used in this title (1) the term 'farmers' shall be 
deemed to include persons who are engaged in, or who, with assistance 
afforded under this title, intend to engage in, fish farming, and (2) 
the term 'farming' shall be deemed to include fish farming." 
SEC. 402. Congress hereby reconfirms its long-standing policy of 
favoring the use by governmental agencies of the usual and customary 
channels, facilities, and arrangements of trade and commerce, and 
directs the Secretary of Agriculture and the Commodity Credit Corpo-
ration to the maximum extent practicable to adopt policies and proce-
dures designed to minimize the acquisition of stocKs by the Commodity 
Credit Corporation, to encourage orderly marketing of farm com-
modities through private competitive trade channels, both cooperative 
and noncooperative, and to obtain maximum returns in the market-
place for producers and for the Commodity Credit Corporation. 
SEC. 403. The Agricultural Adjustment Act, as reenacted and 
amended by the Agricultural Marketing Agreement Act of 1937, as 
amended, is further amended as follows: Section 8c(6) is amended by 
striking the period at the end of (I) thereof and inserting in lieu 
thereof the following: ": Provided^ That with respect to orders appli-
cable to cherries such projects may provide for any forifi of marketing 
promotion including paid advertising." 
SEC. 404. Section 407 of the Agricultural Act of 1949, as amended, 
is amended by adding at the end thereof a new sentence as follows: 
"Notwithstanding the foregoing, whenever prior to December 31, 
1963, the Secretary determines it necessary in order to assure the 
Nation an adequate supply of milk free of contamination by radio-
active fallout, he may make feed owned or controlled by the Com-
modity Credit Corporation available to producers of milk in any area 
or areas of the United States at such prices and on such terms and 
conditions as he deems appropriate in tne public interest." 
SEC. 405. If any provision of this Act is declared imconstitutional, 
or the applicability thereof to any person or circumstance is held in-
valid, the validity of the remainder of this Act and the applicability 
thereof to other persons and circumstances shall not be affected 
thereby. 
Approved September 27, 1962, 1:00 p.m. 
Public Law 87-704 
September 27, 1962 
[H. R. 2292] 
AN ACT 
To authorize the Secretary of the Treasury to issue certificates of honorable 
service in lieu of certificates of disenroUment to certain persons who served as 
temporary members of the United States Coast Guard Reserve during World 
War II. 
Be it enacted hy the Senate and House of Representatives 
of the 
Coast Guard. 
United States of America in Congress assembled^ That chapter 21 of 
ni«".'"'"'''"'°*" ^* ^!*'^ 1^' United States Code, be amended by inserting therein after 
section 762 the following new section: