of the farm agrees to set aside and devote to approved soil conserving uses, and the agreement shall so provide. The Secretary may, by mutual agreement with the cooperators on the farm, terminate or modify any such agreement entered into pursuant to this subsection if the Secretary determines such action necessary because of any emergency created by drought or other disaster, or in order to alleviate a shortage in the supply of rice.

(9) 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.

(10) In any case in which the failure of a cooperator to comply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the default.

(11) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this subsection.

(12) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation.

(13) The provisions of subsection 8(g) of the Soil Conservation and Domestic Allotment Act (relating to assignment of payments) shall apply to payments under this subsection.

SEC. 102 [This section was added by section 101 of the Agricultural Act of 1958. 72 Stat. 989, but was applicable only to the 1959 and 1960 crops of cotton. See p. 131 of Agriculture Handbook No. 192.]

PRICE SUPPORT FOR 1961 AND SUBSEQUENT YEARS (COTTON)

SEC. 103.10 (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) [See (c) below.]

(c) [Subsections (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.]

(d) [Subsection (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.]

(e) (1) The Secretary shall upon presentation of warehouse receipts reflecting accrued storage charges of not more than 60 days make available for the 1971 through 1977 118 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 Middling one-inch upland cotton

10 Sec. 103 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, Sep. 29, 1977.

Subsection (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, Stat. 233, Aug. 10, 1973, amended (1) by substituting :

11 "1971 through 1977" for "1971, 1972, and 1973".

(micronaire 3.5 through 4.9) at average location in the United States 90 per centum of the average price of American cotton in world markets for such cotton for the three-year period 11b ending July 31 in the year in which the loan level is announced, except that if the loan rate so calculated is higher than the then current level of average world prices for American cotton of such quality, the Secretary is authorized to adjust the current calculated loan rate for cotton to 90 per centum of the then current average world price. The average world price for such cotton for such preceding three-year 11d period shall be determined by the Secretary annually pursuant to a published regulation which shall specify the procedures and the factors to be used by the Secretary in making the world price determination. The loan level for any crop of upland cotton shall be determined and announced not later than November 1 of the calendar year preceding the marketing year for which such loan is to be effective. Notwithstanding the foregoing, if the carryover of upland cotton as of the beginning of the marketing year for any of the 1972 through 1977 crops 11e exceeds 7.2 million bales, producers on any farm harvesting cotton of such crop from an acreage in excess of the base acreage allotment for such farm shall be entitled to loans and purchases only on an amount of the cotton of such crop produced on such farm determined by multiplying the yield used in computing payments for such farm by the base acreage allotment for such farm.

(2) 12 Payments shall be made for each crop of cotton to the producers on each farm at a rate equal to the amount by which the higher of

(1) 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

(2) the loan level determined under paragraph (1) for such

crop

is less than the established price of 38 cents per pound in the case of the, 1974 and 1975 crops, 38 cents per pound adjusted to reflect any change during the calendar year 1975 in the index of prices paid by farmers for production items, interest, taxes, and wage rates in the case of the 1976 crop, and the established price for the 1976 crop adjusted to reflect any change during the calendar year 1976 in such index in the case of the 1977 crop: Provided, That any increase that would otherwise be made in the

11b "average price of American cotton in world markets" and "three-year period" for "acreage world price" and "two-year period".

11e the clause beginning with "except that" for the previous directive to make adjustments necessary to keep United States cotton competitive and to retain an adequate share of the world market.

11d "three-year" for "two-year".

11e "any of the 1972 through 1977 crops" for "the 1972 or 1973 crop".

12 Subsection (2) was substantially revised by Sec. 1 (20) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 233, Aug. 10, 1973. Effective beginning with the 1974 crop, the 38 cent target price payment formula, with parity, yield, and disaster adjustments, was substituted for a formula applicable to 1971, 1972, and 1973 crops which required a 15 cent preliminary payment with a total payment equal to the difference between average market prices and the higher of 35 cents or 65 percent of parity.

or local community so as not to adversely affect the economy of the county or local community.

(5) The upland cotton program formulated under this section shall require the producer to take such measures as the Secretary may deem appropriate to protect the set-aside acreage and the additional diverted acreage from erosion, insects, weeds, and rodents. Such acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may in the case of programs for the 1974 through 1977 crops, pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sentences.12d The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm as the Secretary may prescribe by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations.

(6) If the operator of the farm desires to participate in the program formulated under this section, he shall file his agreement to do so no later than such date as the Secretary may prescribe. Loans and purchases on upland cotton and payments under this section shall be made available to the producers on such farm only if producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil conserving uses, and the agreement shall so provide. The Secretary may, by mutual agreement with the producer, terminate or modify any such agreement entered into pursuant to this subsection (e) (6) if he determines such action necessary because of an emergency created by drought or other disaster, or in order to alleviate a shortage in the supply of agricultural commodities.

(7) 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 section.

(8) In any case in which the failure of a producer to comply fully with the terms and conditions of the program formulated under this section precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as he determines to be equitable in relation to the seriousness of the default.

(9) The Secretary is authorized to issue such regulations as he determines necessary to carry out the provisions of this Title. (10) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.

(11) The provisions of subsection 8(g) of the Soil Conserva

134 This sentence was added by Sec. 1 (20) of the Agriculture and Consumer Protectlon Act of 1973, P.L. 93-86, 87 Stat. 235, Aug. 10, 1973.

tion and Domestic Allotment Act, as amended (relating to assignment of payments), shall apply to payments under this subsection. (7 U.S.C. 1444 (e).)

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

(f) (1) 13 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 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

Subsection (f) was added by Sec. 602 of the Food and Agricultural Act of 1977. P.L. 95-113, 91 Stat. 934, Sep. 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, 91 Stat. May 15, 1978, completely revised the first sentence of subsection f(1), effective October 1. 1978. This is the version which appears in the text.

The first sentence originally read as follows and is effective through September 30. 1978:

"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 levels 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 per centum of the average price (weighted by market and month) of such quality of cotton as quoted in the designated United States spot markets during the four-year period ending July 31 in the year in which the loan level is announced. or (ii) 90 per centum of the average. for the first two full weeks of October 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 markets for Strict Low Middling one and one-sixteenth inch cotton (micronaire 3.5 through 4.9))" 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."