PRICE SUPPORT FOR 1961 AND SUBSEQUENT YEARS (COTTON)

[Subsec. (a) is inapplicable through the 1981 crop.]

SEC. 103.17 (a) Notwithstanding the provisions of section 101 of this Act, price support to cooperators for each crop of upland cotton, beginning with the 1961 crop, for which producers have not disapproved marketing quotas shall be at such level not more than 90 per centum of the parity price therefor nor less than the minimum level prescribed below as the Secretary determines appropriate after consideration of the factors specified in section 401(b) of this Act. For the 1961 crop the minimum level shall be 70 per centum of the parity price therefor, and for each subsequent crop the minimum level shall be 65 per centum of the parity price therefor: Provided, That the price support for the 1964 crop shall be a national average support price which reflects 30 cents per pound for Middling oneinch cotton. Price support in the case of noncooperators and in case marketing quotas are disapproved shall be as provided in section 101(d) (3) and (5). (7 U.S.C.* 1444(a).)

(b)18 (c)18* (d)19 (e)20

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COTTON PRODUCTION INCENTIVES; LOAN RATE AND TARGET PRICE; SET-ASIDE PROGRAM

[Subsec. (f) is applicable to the 1978-1981 crops of upland cotton, except as otherwise provided.]

(f) (1)21 The Secretary shall, upon presentation of warehouse receipts reflecting accrued storage charges of not more than sixty days, make available for the 1978 through 1981 crops of upland cotton to cooperators nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at such level as will reflect for Strict Low Middling one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States the smaller of (i) 85 percent of the average price (weighted by market and month) of such quality of cotton as quoted in the designated United States spot markets during three

17 Sec. 103 was added by Sec. 102 of the Agricultural Act of 1958, P.L. 85-835, 72 Stat. 989, Aug. 28, 1958, and amended by the Act of April 11, 1964, P.L. 88-297, 78 Stat. 174, by inserting "(a)" before the first sentence, by adding the proviso after the second sentence, and by adding subsections (b) and (c). Subsec. (a) was made inapplicable to the 1978 through 1981 crops by Sec. 604(c) of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 939, Sept. 29, 1977. 18 Subsecs. (b) and (c) were added by the Act of April 11, 1964, P.L. 88-297, 78 Stat. 174, but were applicable only to the 1964 and 1965 crops of cotton. For the full text, see p. 153 of Agriculture Handbook No. 361.

19 Subsec. (d) was added by the Food and Agriculture Act of 1965, P.L. 89-321, 79 Stat. 1194, Nov. 3, 1965. It was effective with respect to the 1966 through 1969 crops of cotton and was extended to the 1970 crop by P.L. 90-559, 82 Stat. 996, Oct. 11, 1968. For the text in full, see p. 153 of Agriculture Handbook No. 361.

20 Subsec (e) was added by Sec. 602 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1375, Nov. 30, 1970, effective for the 1971, 1972 and 1973 crops of upland cotton. See p. 167 of Agriculture Handbook 444. Sec. 1 (20) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 233, Aug. 10, 1973, made Subsec. (e) applicable through the 1977 crop of upland cotton and amended it in a number of respects. See Agriculture Handbook No. 476. 21 Subsection (f) was added by Sec. 602 of the Food and Agricultural Act of 1977, P.L. 95-113, 91 Stat. 934, Sept. 29, 1977, effective for the 1978 through 1981 crops of upland cotton. However, effective only with respect to the 1978 through 1981 crops. Sec. 102 of the Emergency Agricultural Act of 1978, P.L. 95-279, 92 Stat. 240, May 15, 1978, completely revised the first sentence of subsection f(1), effective October 1, 1978. For the previous language, see Agriculture Handbook No. 476.

Sec. 103 of the Emergency Agricultural Act of 1978 contains the following transitional provision:

"SEC. 103. Section 101 and 102 of this title shall become effective October 1, 1978, and any producers who, prior to such date, receive loans and payments on the 1978 crop of the commodity as computed under the Agricultural Act of 1949, as amended by the Food and Agricultural Act of 1977, may elect after September 30, 1978, to receive loans and payments as computed under this title."

years of the five-year period ending July 31 in the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period, or (ii) 90 percent of the average, for the fifteen-week period beginning July 1 of the year in which the loan level is announced, of the five lowest priced growths of the growths quoted for Strict Middling one and one-sixteenth inch cotton C.I.F. Northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year in which the loan is announced between such average Northern Europe price quotation of such quality of cotton and the market quotations in the designated United States spot market for Strict Low Middling one and one-sixteenth inch cotton (micronaire 3.5 through 4.9): Provided, That in no event shall such loan level be less than 48 cents per pound. If for any crop the average Northern European price determined under clause (ii) of the first sentence of this paragraph is less than the average United States spot market price determined under clause (i) of the first sentence of this paragraph, the Secretary may, notwithstanding the foregoing provisions of this paragraph, increase the loan level to such level as the Secretary may deem appropriate, not in excess of the average United States spot market price determined under clause (i) of the first sentence of this paragraph. The loan level for any crop of cotton shall be determined and announced by the Secretary not later than November 1 of the calendar year preceding the market year for which such loan is to be effective, and such level shall not thereafter be changed.22 Nonrecourse loans provided for in this subsection, shall, upon request of the cooperator during the tenth month of the loan period for the cotton, be made available for an additional term of eight months: Provided, That such request to extend the loan period shall not be approved in a month when the average price of Strict Low Middling one and one-sixteenth inch cotton (micronaire 3.5 through 4.9) in the designated spot markets for the preceding month exceeded 130 per centum of the average price of such quality of cotton in such markets for the preceding thirty-six month period. Provided further, That whenever the Secretary determines that the average price of Strict Low Middling one and one-sixteenth inch cotton (micronaire 3.5 through 4.9) in the designated spot markets for a month exceeded 130 per centum of the average price of such quality of cotton in such markets for the preceding thirty-six months, notwithstanding any other provision of law, the President shall immediately establish and proclaim a special limited global import quota for upland cotton subject to the following conditions:

(A) The amount of the special quota shall be equal to twenty-one days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent three months for which data are available;

22 The Act of Sept. 30, 1978, P.L. 95-402, 92 Stat. 862, struck out a sentence at this point reading: "The rate of interest on loans to cooperators under the provisions of this paragraph shall be established quarterly by the Commodity Credit Corporation on the basis of the lowest current rate on ordinary obligations of the United States."

(B) If a special quota has been established under this subsection during the preceding twelve months, the amount of the quota next established hereunder shall be the smaller of twenty-one days of domestic mill consumption calculated as set forth in clause (A) of this subsection or the amount required to increase the supply to 130 per centum of the demand; (C) As used in clause (B) of this paragraph, the term "supply" means, using the latest official data of the Bureau of the Census, the United States Department of Agriculture, and the United States Department of the Treasury, the carryover of upland cotton at the beginning of the marketing year (adjusted to four hundred and eighty-pound bales) in which the special quota is established, plus production of the current crop, plus imports to the latest date available during the marketing year, and the term "demand" means the average seasonally adjusted annual rate of domestic mill consumption in the most recent three months for which data are available, plus the larger of average exports of upland cotton during the preceding six marketing years or cumulative exports of upland cotton, plus outstanding export sales for the marketing year in which the special quota is established; and

(D) When a special quota is established under the provisions of this subsection, a ninety-day period from the effective date of the proclamation shall be allowed for entering cotton under such quota.

(2) Notwithstanding the foregoing provisions of this subsection, a special quota period shall not be established that overlaps an existing special quota period.

(3) Notwithstanding any other provision of law, the foregoing provisions of this subsection with respect to extension of the loan period and to proclamation of the special quota shall become effective upon the effective date of the Food and Agriculture Act of 1977 even though the cotton may be of a crop prior to the 1978 crop.

(4) Payments shall be made for each crop of upland cotton to the producers on each farm at a rate equal to the amount by which the higher of

(A) The average market price received by farmers for upland cotton during the calendar year which includes the first five months of the marketing year for such crop, as determined by the Secretary, or

(B) the loan level determined under paragraph (1) for such crop is less than the established price per pound times in each case (i) the farm program acreage for cotton, determined in accordance with paragraph (9) of this subsection (but in no event on a greater acreage than the acreage actually planted to cotton for harvest), multiplied by (ii) the farm program payment yield for cotton determined in accordance with paragraph (10) of this subsection. For the 1978 through 1981 crops, the established price shall be the established price for the previous year's crop adjusted to reflect any change in (i) the average adjusted cost of production for the two crop years

nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary shall make a prevented planting disaster payment to the producers on the number of acres so affected but not to exceed the acreage planted to feed grains for harvest (including any acreage which the producers were prevented from planting to feed grains or other nonconserving crop in lieu of feed grains because of drought, flood, or other natural disaster, or other condition beyond the control of the producers) in the immediately preceding year multiplied by 75 per centum of the farm program payment yield for feed grains established by the Secretary times a payment rate equal to 33 per centum of the established price per bushel.

(B)35 Except as otherwise provided in subparagraph (C) of this paragraph, effective with respect to the 1978 through 1981 crops of feed grains, if the Secretary determines that because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the total quantity of feed grains which the producers are able to harvest on any farm is less than the result of multiplying 60 per centum of the farm program payment yield established by the Secretary for such crop by the acreage planted for harvest for such crop, the Secretary shall make a farm disaster payment to the producers at a rate equal to 50 per centum of the established price for the crop for the deficiency in production below 60 per centum for the crop.

(C)36 With respect to the 1981 crop of feed grains, producers on a farm shall not be eligible for disaster payments under this paragraph if the producers elect to cover the feed grain acreage with crop insurance, part of the premium for which is paid by the Federal Crop Insurance Corporation under the provisions of section 508(b)(3) or 508(e) of the Federal Crop Insurance Act.

(D)37 In the case of the 1977 crop of feed grains, disaster payments for prevented planting for feed grains shall be computed as provided in section 105 of this Act, as amended for the 1974 through 1977 crops by the Agriculture and Consumer Protection Act of 1973, and disaster payments for low yield shall be computed in accordance with the formula provided in subparagraph (B) of this paragraph: Provided, That producers may elect to receive disaster payments for low yield computed as provided in section 105 of this Act, as amended for the 1974 through 1977 crops by the Agriculture and Consumer Protection Act of 1973: Provided further, That no disaster payments for low yield may be made under this paragraph prior to October 1, 1977.

(c)33 The Secretary shall provide for the sharing of payments made under this section for any farm among producers on the farm on a fair and equitable basis.

36 Subsec. (C) was added by Sec. 201(b) of the Federal Crop Insurance Act of 1980, P.L. 96–365, 94 Stat. 1312, Sept. 26, 1980. Sec 508 referred to herein is found at 7 U.S.C. 1508.

37 Sec. 201(b) of the Federal Crop Insurance Act of 1980, P.L. 96-365, 94 Stat. 1312, Sept. 26, 1980, redesignated subsec. (C) as subsec. (D).