TRANSFER OF QUOTAS

[SEC. 338 is inapplicable through 1981 crop of wheat.]

SEC. 338.1 Farm marketing quotas for wheat shall not be transferable, but, in accordance with regulations prescribed by the Secretary for such purpose, any farm marketing quota in excess of the supply of wheat for such farm for any marketing year may be allocated to other farms on which the acreage allotment has not been exceeded. (7 U.S.C. 1338.)

LAND USE

[SEC. 339 is inapplicable through 1981 crop of wheat.]

SEC. 339.72 (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 production 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 intention 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 cropland 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 (less an acreage equal to the increased acreage allotted for 1966 pursuant to section 335) is reduced below fifty-five million acres by the number of acres in the national acreage allotment (less an acreage equal to the increased acreage allotted for 1966 pursuant to section 335). The actual production of any crop subject to penalty under this subsection shall be regarded as available for marketing and the penalty on such crop shall be computed on the actual acreage of such crop at the rate of centum of the parity price per bushel of wheat as of May 1

65

per

See footnote 50.

Sec. 404 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1366, Nov. 30, 1970, made sec. 339 inapplicable to the 1971, 1972, and 1973 crops. Sec. 1(11) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 229, Aug. 10, 1973, made sec. 339 inapplicable through the 1977 crop. Sec. 404 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977, made Sec. 339 inapplicable through the 1981 crop of wheat.

Subsections (a) and (g) will once more become effective with the 1982 crop.

An older version of subsection (a) (1) was effective only from 1964 through 1970. For the text in full, see p. 78 of Agriculture Handbook No. 361, and the accompanying foot

note.

Subsections (b), (c), (d), (e), (f), and (h) were likewise effective only through the 1970 crop. They may be found at pp. 79-80 of Agriculture Handbook No. 361.

of the calendar year in which such crop is harvested, multiplied b the normal yield of wheat per acre established for the farm. Unti the producers on any farm pay the penalty on such crop, the entir crop of wheat produced on the farm and any subsequent crop o wheat subject to marketing quotas in which the producer has an in terest shall be subject to a lien in favor of the United States for th amount of the penalty. Each producer having an interest in the cro or crops on acreage diverted or required to be diverted from th production of wheat shall be jointly and severally liable for th entire amount of the penalty. The persons liable for the payment o collection of the penalty under this section shall be liable also fo interest thereon at the rate of 6 per centum per annum from th date the penalty becomes due until the date of payment of suc penalty. (7 U.S.C. 1339 (a) (1).).

(2) The Secretary may require that the acreage on any farm di verted from the production of wheat be land which was diverte from the production of wheat in the previous year, to the extent h determines that such requirement is necessary to effectuate the pur poses of this subtitle. (7 U.S.C. 1339 (a) (2).)

(3) The Secretary may permit the diverted acreage to be grazed in accordance with regulations prescribed by the Secretary. (7 U.S.C 1339 (a) (3).)

(b) ***73

***73

(c) ***73 (d)

(e) ***73 (f)

***73

(g) The Secretary is authorized to promulgate such regulations as may be desirable to carry out the provisions of this section. (7 U.S.C 1339 (g).)

(h)

***73

PART IV-MARKETING QUOTAS-COTTON
LEGISLATIVE FINDINGS

SEC. 341. American cotton is a basic source of clothing and indus trial products used by every person in the United States and by substantial numbers of people in foreign countries. American cotton is sold on a world-wide market and moves from the places of production almost entirely in interstate and foreign commerce to processing establishments located throughout the world at places outside the State where the cotton is produced.

Fluctuations in supplies of cotton and the marketing of excessive supplies of cotton in interstate and foreign commerce disrupt the orderly marketing of cotton in such commerce with consequent injury to and destruction of such commerce. Excessive supplies of cotton directly and materially affect the volume of cotton moving in interstate and foreign commerce and cause disparity in prices of cotton

73 See footnote 72.

and industrial products moving in interstate and foreign commerce with consequent diminution of the volume of such commerce in industrial products.

The conditions affecting the production and marketing of cotton are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of excessive supplies of cotton and fluctuations in supplies, cannot prevent indiscriminate dumping of excessive supplies on the Nation-wide and foreign markets, cannot maintain normal carry-overs of cotton, and cannot provide for the orderly marketing of cotton in interstate and foreign commerce.

It is in the interest of the general welfare that interstate and foreign commerce in cotton be protected from the burdens caused by the marketing of excessive supplies of cotton in such commerce, that a supply of cotton 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 excessive supplies of cotton.

The provisions of this part affording a cooperative plan to cotton producers are necessary and appropriate to prevent the burdens on interstate and foreign commerce caused by the marketing in such commerce of excessive supplies, and to promote, foster, and maintain an orderly flow of an adequate supply of cotton in such commerce. (7 U.S.C. 1341.)

NATIONAL MARKETING QUOTA

[SEC. 342 is inapplicable through the 1981 crop.]

SEC. 342.74 Whenever during any calendar year the Secretary determines that the total supply of cotton for the marketing year beginning in such calendar year will exceed the normal supply for such marketing year, the Secretary shall proclaim such fact and a national marketing quota shall be in effect for the crop of cotton produced in the next calendar year. The Secretary shall also determine and specify in such proclamation the amount of the national marketing quota in terms of the number of bales of cotton (standard bales of five hundred pounds gross weight) adequate, together with (1) the estimated carryover at the beginning of the marketing year which begins in the next calendar year and (2) the estimated imports during such marketing year, to make available a normal supply of cotton : Provided, That beginning with the 1961 crop, the national marketing quota shall be not less than a number of bales equal to the estimated domestic consumption and estimated exports (less estimated imports) for the marketing year for which the quota is proclaimed, except that the Secretary shall make such adjustments in the amount of such quota as he determines necessary after taking into consideration the estimated

Sec. 601 of the Agricultural Act of 1970. P.L. 91-254, 84 Stat. 1371, Nov. 30, 1970. made sections 342, 343, 344, 345, 346, and 377 inapplicable to the 1971, 1972, and 1973 Crops of upland cotton. Sec. 1(19) of the Agriculture and Consumer Protection Act of 1973. P.L. 93-86. 87 Stat. 233, Aug. 10, 1973, made them inapplicable through 1977 crop. Sec. 601 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 933, Sept. 29, 1977, made them inapplicable through the 1981 crop.

stocks of cotton in the United States (including the qualities of such stocks) and stocks in foreign countries which would be available for the marketing year for which the quota is being proclaimed if no adjustment of such quota is made hereunder, to assure the maintenance of adequate but not excessive stocks in the United States to provide a continuous and stable supply of the different qualities of cotton needed in the United States and in foreign cotton consuming coun tries, and for purposes of national security; but the Secretary, in making such adjustments, may not reduce the national marketing quota for any year below (i) one million bales less than the estimated domestic consumption and estimated exports for the marketing year for which such quota is being proclaimed, or (ii) ten million bales whichever is larger. Such proclamation shall be made not later than October 15 of the calendar year in which such determination is made. *** 75 Notwithstanding any other provision of this Act, the national marketing quota for upland cotton for 1959 and subsequent years shall be not less than the number of bales required to provide a national acreage allotment for each such year of sixteen million acres. (7 U.S.C. 1342.)

76

SEC. 342a. The Secretary shall, not later than November 15, of the calendar years 1970 through 1976, proclaim a national cotton production goal for the 1971 and subsequent crops of upland cotton. The national cotton production goal for any year shall be the number of bales of upland cotton (standard bales of four hundred and eighty pounds net weight) equal to the estimated domestic consumption and estimated exports for the marketing year beginning in the calendar year for which such national cotton production goal is proclaimed. plus an allowance of not less than 5 per centum of such estimated consumption and estimated exports for market expansion except that the Secretary shall make such adjustments in the amount of such production goal as he determines necessary after taking into consideration the estimated stocks of upland cotton in the United States (including the qualities of such stocks) and stocks in foreign countries, which would be available for the marketing year, to assure the maintenance of adequate but not excessive carryover stocks in the United States (not less than 50 per centum of the average offtake for the three preceding marketing years) to provide a continuous and stable supply of the different qualities of upland cotton needed in the United States and in foreign cotton consuming countries and, in addition, to provide an adequate reserve for purposes of national security. (7 U.S.C. 1342a.)

REFERENDUM

[SEC. 343 is inapplicable through the 1981 crop.]

77

SEC. 343. Not later than December 15 following the issuance of the marketing quota proclamation provided for in section 342, the

75 Proviso effective only as to 1957 and 1958 crop cotton omitted.

76 Sec. 342a was added by Sec. 601 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1371, Nov. 30, 1970, effective as to 1971, 1972, and 1973 crops. Sec. 1(19) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 233, Aug. 10, 1973, extended Sec. 342a through the 1977 crop.

77 See footnote 74.