even though it is marketed prior to the date on which said marketing year begins. (7 U.S.C. 1314(a).)

(b) The Secretary shall require collection of the penalty upon a proportion of each lot of tobacco marketed from the farm equal to the proportion which the tobacco available for marketing from the farm in excess of the farm marketing quota is of the total amount of tobacco available for marketing from the farm if satisfactory proof is not furnished as to the disposition to be made of such excess tobacco prior to the marketing of any tobacco from the farm. All funds collected pursuant to this section shall be deposited in a special deposit account with the Treasurer of the United States until the end of the marketing year next succeeding that in which the funds are collected, and upon certification by the Secretary there shall be paid out of such special deposit account to persons designated by the Secretary the amount by which the penalty collected exceeds the amount of penalty due upon tobacco marketed in excess of the farm marketing quota for any farm. Such special account shall be administered by the Secretary, and the basis for, the amount of, and the person entitled to receive a payment from such account, when determined in accordance with regulations prescribed by the Secretary, shall be final and conclusive. (7 U.S.C. 1314(b).)

REFERENDUM FOR SINGLE COMBINED ACREAGE ALLOTMENT SEC. 315. * * * 32

LEASE AND TRANSFER OF ACREAGE ALLOTMENTS

SEC. 316. (a) 33 Notwithstanding any other provision of law, the Secretary, if he determines that it will not impair the effective operation of the tobacco marketing quota or price support program, may permit the owner and operator of any farm for which a tobacco acreage allotment (other than a Burley, dark air-cured, fire-cured, Virginia sun-cured and cigar-binder, type 54 or 55 tobacco acreage allotment) is established under this Act to lease all or any part of such allotment or quota to any other owner or operator of a farm in the same county for use in such county on a farm having a current tobacco allotment or quota of the same kind.

(b) 34 Any lease may be made for such terms of years not to exceed five as the parties thereto agree, and on such other terms and conditions, except as otherwise provided in this section, as the parties thereto agree.

(c) The lease and transfer of any allotment shall not be effective until a copy of such lease is filed with and determined by the county committee of the county in which the farms involved are located to be in compliance with provisions of this section. Any lease of Fluecured tobacco acreage-poundage marketing quotas from any farm with an acreage-poundage marketing quota in excess of two thousand pounds filed on or after June 15 in any year shall not be effective

32 Section 315 was repealed by Sec. 2, of P.L. 9051, 81 Stat. 121, July 7, 1967.
33 Subsection (a) was amended by P.L. 91-284, 84 Stat. 314, June 19, 1970.
34 Subsection (b) was amended by P.L. 91-284, 84 Stat. 314, June 19, 1970.

unless the acreage planted on both the lessor and the lessee farms during the current marketing year was as much as 80 per centum of the farm acreage allotment in effect for such year.35 If the normal yield established by the county committee for the farm to which the allotment is transferred does not exceed the normal yield established by the county committee for the farm from which the allotment is transferred by more than 10 per centum, the lease and transfer shall be approved acre for acre. If the normal yield for the farm to which the allotment is transferred exceeds the normal yield for the farm from which the allotment is transferred by more than 10 per centum, the county committee shall make a downward adjustment in the amount of the acreage allotment transferred by multiplying the normal yield established for the farm from which the allotment is transferred by the acreage being transferred and dividing the result by the normal yield established by the farm to which the allotment is transferred. [Pub. L. 89-321. Sec. 703.-Notwithstanding the provisions of subsection 316(c) and subsection 317(f) relating to lease and transfer of allotments for years subsequent to 1965, of the Agricultural Adjustment Act of 1938, as amended, whenever acreage poundage quotas are in effect for any kind of tobacco 36 as provided in section 317 of the Act, the lease and transfer shall be on a pound for pound basis and the acreage allotment for the lessee farm shall be increased by an amount determined by dividing the number of pounds leased by the farm yield for the lessee farm, and the acreage allotment for the lessor farm shall be reduced by an amount determined by dividing the number of pounds leased by the farm yield for the lessor farm. (79 Stat. 1210, November 3, 1965, 7 U.S.C. 1316.)]

(d) The lease and transfer of any part of a tobacco acreage allotment determined for a farm shall not affect the allotment for the farm from which such acreage allotment is transferred or the farm to which it is transferred, except with respect to the crop year specified in the lease. The amount of acreage allotment which is leased from a farm shall be considered for purpose of determining future allotments to have been planted to tobacco on the farm from which such allotment is transferred and the production pursuant to the lease and transfer shall not be taken into account in establishing allotments for subsequent years for the farm to which such allotment is transferred. The lessor shall be considered to have been engaged in the production of tobacco for the purpose of eligibility to vote in the referendum. (e) The total acreage allotted to any farm after the transfer by lease of tobacco acreage allotment to the farm under the provisions of this section shall not exceed 50 per centum of the acreage of cropland in the farm: Provided, That in the case of cigar-filler tobacco types 42, 43, or 44, not more than 10 acres of allotment may be leased and transferred to any farm.

37

The second sentence of subsection (c) was amended by P.L. 92-311, 86 Stat. 215. June 6, 1972, and by P.L. 95-54, 91 Stat. 250, June 25, 1977. For previous language and accompanying footnotes, see p. 59 of Agriculture Handbook No. 408 and the original p. 57 of Agricultural Handbook No. 476.

The exception formerly made for Burley tobacco was eliminated by P.L. 91-284, 84 Stat. 314, June 19, 1970.

Subsection (e) was amended by P.L. 90-52, 81 Stat. 121, July 7, 1967. The proviso was added by P.L. 91-284, 84 Stat. 314, June 19, 1970.

(f) The Secretary shall prescribe such regulations as he considers necessary for carrying out the provisions of this section.

(g) Notwithstanding any provision of this section, when as a result of flood, hail, wind, tornado, or other natural disaster the Secretary determines (1) that one of the counties hereinafter listed has suffered a loss of 10 per centum or more in the number of acres of tobacco planted and (2) that a lease of such tobacco allotment or quota will not impair the effective operation of the tobacco marketing quota or price support program, he may permit the owner and operator of any farm within Atkinson, Bacon, Berrien, Clinch, Cook, Lanier, Lowndes, or Ware Counties, Georgia, or Clarendon, Lee, Sumter, or Williamsburg Counties, South Carolina, which has suffered a loss of 30 per centum or more in the number of acres of tobacco planted of such crop to lease all or any part of such allotment or quota to any other owners or operators in the same county, or nearby counties within the same State, for use in such counties for the year 1973 on a farm or farms having a current tobacco allotment or quota of the same kind. In the case of a lease and transfer to an owner or operator in another country pursuant to this subsection, the lease and transfer shall not be effective until a copy of the lease is filed with and determined by the county committee of the county to which the transfer is made to be in compliance with the provisions of this subsection.38

(h) Notwithstanding any provision of this section, when as a result of drought, flood, damage due to excessive rain, hail, wind, tornado, or other natural disaster, the Secretary determines (1) that one of the counties hereinafter listed has suffered a loss of 10 per centum or more in the number of acres of tobacco planted, and (2) that a lease of such tobacco allotment or quota will not impair the effective operation of the tobacco marketing quota or price support program, he may permit the owner and operator of any farm within. Craven, Carteret and Jones Counties, North Carolina, which has suffered a loss of 10 per centum or more in the number of acres of tobacco planted of such crop to lease all or any part of such allotment or quota to any other owners or operators in the same county, or nearby counties within the same State, for use in such counties for the year 1974 on a farm or farms having a current tobacco allotment or quota of the same kind. In the case of a lease and transfer to an owner or operator in another county pursuant to this subsection, the lease and transfer shall not be effective until a copy of the lease is filed with and determined by the county committee of the county to which the transfer is made to be in compliance with the provisions of this subsection.

(i) Notwithstanding any provision of this section, when as a result of drought, flood, damage due to excessive rain, hail, wind, tornado, or other natural disaster, the Secretary determines (1) that one of the counties in South Carolina or Georgia has suffered a loss of 10 per centum or more in the number of acres of tobacco planted

38 Subsection (g) was added by P.L. 93-80, 87 Stat. 178, August 1, 1973. The original text was repealed by P.L. 91-284, 84 Stat. 314, June 19, 1970.

30 Subsection (h) was added by P.L. 93-464, 88 Stat. 1416, Oct. 24, 1974. Former subsection (h) was repealed by P.L. 88-469, 78 Stat. 581, August 30, 1964.

PART II-ACREAGE ALLOTMENTS

-CORN 47

SECS. 321 to 325. * * * 48

ADJUSTMENT OF FARM MARKETING QUOTAS

[SEC. 326. below repealed by 68 Stat. 902 insofar as applicable to corn; (b) and (c) below were made applicable to wheat by paragraph (6), Pub.L. 74, 77th Congress, on p. 84.]

SEC. 326. (a) Whenever in any county or other area the Secretary finds that the actual production of corn plus the amount of corn stored under seal in such county or other area is less than the normal production of the marketing percentage of the farm acreage allotment in such county or other area, the Secretary shall terminate farm marketing quotas for corn in such county or other area. (7 U.S.C. 1326 (a).)

(b) Whenever, upon any farm, the actual production of the acreage of corn is less than the normal production of the marketing percentage of the farm acreage allotment, there may be marketed, without penalty, from such farm an amount of corn from the corn stored under seal pursuant to section 324 which, together with the actual production of the then current crop, will equal the normal production of the marketing percentage of the farm acreage allotment. (7 U.S.C. 1326(b).)

(c) Whenever, in any marketing year, marketing quotas are not in effect with respect to the crop of corn produced in the calendar year in which such marketing year begins, all marketing quotas applicable to previous crops of corn shall be terminated. (7 U.S.C. 1326 (c).) SECS. 327 to 329. * * * 49

NONESTABLISHMENT OF ACREAGE ALLOTMENTS

SEC. 330. Notwithstanding any other provision of law, acreage allotments and a commercial corn-producing area shall not be established for the 1959 and subsequent crops of corn. (7 U.S.C. 1441 note.)

An acreage allotment program is not in effect for corn due to the results of the corn referendum held on November 25, 1958, in which farmers approved a price support program without acreage allotments for the 1959 and subsequent crops. Accordingly, section 330 became effective. See section 105A of the Agricultural Act of 1949, as amended, for current corn price support program.

48 Provisions relating to marketing quotas for corn were repealed by P.L. 83-690, 68 Stat. 902, August 28, 1954.

PART III-MARKETING QUOTAS-WHEAT

LEGISLATIVE FINDINGS

[SECS. 331, 332, 333, 334, 335, 336, 338, and 339 are inapplicable through the 1981 crop of wheat.]

SEC. 331.50 Wheat is a basic source of food for the Nation, is produced throughout the United States by more than a million farmers, is sold on the country-wide market and, as wheat or flour, flows almost entirely through instrumentalities of interstate and foreign commerce from producers to consumers.

Abnormally excessive and abnormally deficient supplies of wheat on the country-wide market acutely and directly affect, burden, and obstruct interstate and foreign commerce. Abnormally excessive supplies overtax the facilities of interstate and foreign transportation, congest terminal markets and milling centers in the flow of wheat from producers to consumers, depress the price of wheat in interstate and foreign commerce and otherwise disrupt the orderly marketing of such commodity in such commerce. Abnormally deficient supplies result in an inadequate flow of wheat and its products in interstate and foreign commerce with consequent injurious effects to the instrumentalities of such commerce and with excessive increases in the prices of wheat and its products in interstate and foreign commerce.

It is in the interest of the general welfare that interstate and foreign commerce in wheat and its products be protected from such burdensome surpluses and distressing shortages, and that a supply of wheat be maintained which is adequate to meet domestic consumption and export requirements in years of drought, flood, and other adverse conditions as well as in years of plenty, and that the soil resources of the Nation be not wasted in the production of such burdensome surpluses. Such surpluses result in disastrously low prices of wheat and other grains to wheat producers, destroy the purchasing power of grain producers for industrial products, and reduce the value of the agricultural assets supporting the national credit structure. Such shortages of wheat result in unreasonably high prices of flour and bread to consumers and loss of market outlets by wheat producers.

The conditions affecting the production and marketing of wheat are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of such surpluses and shortages and the burdens on interstate and foreign commerce

49 Sections 327 through 329 are omitted from this Handbook because of the reasons stated in footnote 47. For the text of these sections, see Agriculture Handbook No. 281. 50 Section 404 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1366, Nov. 30, 1970, made sections 331, 332, 335, 336, 338 and 339 inapplicable to the 1971, 1972, and 1973 crops. Section 1(11) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 229, August 10, 1973, made them inapplicable through the 1977 crops. Sec. 404. of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977, made such sections inapplicable to the 1978 through 1981 crops of wheat.