SUBTITLE D-WHEAT MARKETING ALLOCATION1

LEGISLATIVE FINDINGS

SEC. 379a.1 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 movement of wheat from producer to consumer, in the form of the commodity or any of the products thereof, is preponderantly in interstate and foreign commerce. Unreasonably low prices of wheat to producers 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. (7 U.S.C. 1379a.)

WHEAT MARKETING ALLOCATION

[Sec. 379b is inapplicable through the 1981 crop.]

SEC. 379b.2 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 provided in this subtitle. Whenever a wheat marketing allocation program is in effect for any marketing year the Secretary 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 food products for consumption in the United States, 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 certificates shall be issued to producers in order to achieve, insofar as practicable, the 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 marketing year equal

1 Subtitle D was added by Sec. 324 of the Food and Agriculture Act of 1962, P. L. 87-703, 76 Stat. 626, Sept. 27, 1962. * Sec. 379b, which was added by P.L. 87-703, 76, Stat. 626, Sept. 27, 1962, has been amended a number of times. It is not currently in effect.

See Sec. 202(10) of the Agricultural Act of 1964, P.L. 88-297, 78 Stat. 179, April 11, 1964, for the text of Sec. 379b as it applied only to the 1964 and 1965 crops.

See Sec. 502 of the Food and Agriculture Act of 1965, P.L. 89-321, 79 Stat. 1202, Nov. 3, 1965, on p. 122 of Agriculture Handbook No. 361, for the text of Sec. 379b as it applied only to the 1966 through 1970 crops.

See p. 131 of Agriculture Handbook No. 444 for the text of Sec. 379b as it applied only with respect to the 1971, 1972, and 1973 crops. This version was enacted by Sec. 402 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1362, Nov. 30, 1970, effective only as to the 1971 through 1973 crops of wheat.

Sec. 1(9) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 226, Aug. 10, 1973, made subsections (c), (d), (e), (g), and (i) of the 1971-73 version, with some changes, applicable to the 1974 through 1977 crops of wheat but provided that the rest of Sec. 379b would not be applicable to these crops. See pp. 131-134 of Agriculture Handbook No. 476 for the text of Sec. 379b, (7 U.S.C. 1379b) effective as to the 1974 through 1977 crops of wheat, and related statutes.

Sec. 404 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977 made the original version of Sec. 379b of the Agricultural Adjustment Act of 1938, amended as shown in the text, inapplicable to the 1978 through 1981 crops of wheat. This version will again become effective with respect to the 1982 crop.

to the number of bushels obtained by multiplying the number of acres in the farm acreage allotment for wheat by the projected farm yield, and multiplying 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. (7 U.S.C. 13796 note.)

MARKETING CERTIFICATES

[Sec. 379c is inapplicable through the 1981 crop.]

SEC. 379c. (a) The Secretary shall provide for the issuance of wheat marketing certificates for each marketing year for which a wheat marketing allocation program is in effect for the purpose of enabling producers 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 (1) 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 under section 379c(b) or to avoid or postpone a marketing quota penalty, which is released from storage during the marketing year on account of underplanting or underproduction, and if this limitation operates to reduce the amount of wheat marketing certificates which would otherwise be issued with respect to the farm, such reduction shall be made first from the amount of export certificates which would otherwise be issued. 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; except that in any case in which the Secretary determines that such basis would not be fair and equitable, the Secretary shall provide for such sharing on such other basis as he may determine to be fair and equitable. The Secretary shall, in accordance with such regulation as he may prescribe, provide for the issuance of domestic marketing certificates for the portion of the wheat marketing allocation representing wheat used for food products for consumption in the United States. The Secretary shall also

3 Sec. 379c, which was originally enacted by the Food and Agriculture Act of 1962, P.L. 87-703, 76 Stat. 627, Sept. 27, 1962, has been amended a number of times. It is not currently in effect.

See p. 138-138 of Agriculture Handbook No. 444 for provisions of Sec. 379c applicable only with respect to the 1971, 1972, and 1973 crops of wheat, as enacted by Sec. 402 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1372, Nov. 30, 1970.

Sec. 379c was amended by Sec. 1(9) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 227, Aug. 10, 1973, effective only with respect to the 1974 through 1977 crops of wheat. See pp. 135-8 of Agriculture Handbook No. 476 for the text of this version (7 U.S.C. 1379c) and related statutes.

Sec. 404 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977 made the original version of Sec. 379c of the Agricultural Adjustment Act of 1938, amended as shown in the text, inapplicable to the 1978 through 1981 crops of wheat. This version, which includes amendments by the Food and Agriculture Act of 1965, P.L. 89-321, 79 Stat. 1204, Nov. 3, 1965, by the Act of Aug. 6, 1965. P.L. 89-112, 79 Stat. 447, by the Act of June 17, 1966. P.L. 89-451, 80 Stat. 202, June 17, 1966, and by the Agricultural Act of 1964, P.L. 88-297, 78 Stat. 180, April 11, 1964, will again become effective with respect to the 1982 crop.

provide for the issuance of export marketing certificates to eligible producers at the end of the marketing year on a pro rata basis. For such purposes, the value per bushel of export marketing certificates shall be an average of the total net proceeds from the sale of export marketing certificates during the marketing year after deducting the total amount of wheat export subsidies paid to exporters. An acreage on the farm which the Secretary finds was not planted to wheat for harvest in 1965 because of drought, flood, or other natural disaster shall be deemed by the Secretary to be an actual acreage of wheat planted for harvest for purposes of this subsection, provided such acreage is not subsequently planted to any other price supported crop for 1965. An acreage on the farm not planted to wheat because of drought, flood, or other natural disaster shall be deemed to be an actual acreage of wheat planted for harvest for purposes of this subsection provided such acreage is not subsequently planted to any crop for which there are marketing quotas or voluntary adjustment programs in effect. Producers on any farm who have planted not less than 90 per centum of the acreage of wheat required to be planted in order to earn the full amount of marketing certificates for which the farm is eligible shall be deemed to have planted the entire acreage required to be planted for that purpose. (7 U.S.C. 1379c note.)

(b)4 No producer shall be eligible to receive wheat marketing certificates 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 commodity 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 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. 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.* Any wheat delivered to the Secretary hereunder shall become the property of the United States and shall be disposed of by the secretary for relief purposes in the United States or in foreign countries or in such other manner as he shall determine will divert it from the normal channels of trade and commerce. Notwithstanding any other provision of this Act, the Secretary may provide that a producer shall not be eligible to receive marketing certificates, or may adjust the amount of marketing certificates to be received by the producer, with respect to any farm for any year in which a variety of wheat is planted on the farm which has been determined by the Secretary, after consultation with State Agricultural Experiment Stations, agronomists, cereal chem

*
*

The omitted language was effective only with respect to the crops planted for harvest in the calendar years 1965 through 1970. It may be found at pp. 124-125 of Agriculture Handbook No. 361. The last two sentences were added by the Food and Agriculture Act of 1965, P. L. 89-321, 79 Stat. 1204, Nov. 3, 1965.

ists and other qualified technicians, to have undesirable milling or baking qualities and has made public announcement thereof. (7 U.S.C. 1379c note.)

(c) The Secretary shall determine and proclaim for each marketing year the face value per bushel of wheat marketing certificates. The face value per bushel of domestic certificates shall be the amount by which the level of price support for wheat accompanied by domestic certificates exceeds the level of price support for wheat not accompanied by certificates (noncertificate wheat). (7 U.S.C. 1379c note.)

(d) Marketing certificates and transfers thereof shall be represented by such documents, marketing cards, records, accounts, certifications, or other statements or forms as the Secretary may prescribe. (7 U.S.C. 1379c note.)

(e) In any case in which the failure of a producer to comply fully with the term and conditions of the programs formulated under this Act preclude the issuance of marketing certificates, the Secretary may, nevertheless, issue such certificates in such amounts as he determines to be equitable in relation to the seriousness of the default. (7 U.S.C. 1379c note.)

MARKETING RESTRICTIONS

[Secs. 379d-379j are inapplicable through May 31, 1982.]

SEC. 379d. (a) Marketing certificates shall be transferable only in accordance with regulations prescribed by the Secretary. Any unused certificates legally held by any person shall be purchased by Commodity Credit Corporation if tendered to the Corporation for purchase in accordance with regulations prescribed by the Secretary.

(b)8 During any marketing year for which a wheat marketing allocation program is in effect, (i) all persons engaged in the processing of wheat into food products shall, prior to marketing any such food product or removing such food product for sale or consumption, acquire domestic marketing certificates equivalent to the number of bushels of wheat contained in such product and (ii) all persons exporting wheat shall, prior to such export, acquire export marketing certificates equivalent to the number of bushels so exported. The cost of the export marketing certificates per bushel to the exporter shall be that amount determined by the Secretary on a daily basis which would make United States wheat and wheat flour generally competitive in the world market, avoid disruption of

Subsec. (c) has been amended by P. L. 88-297, 78 Stat. 181, April 11, 1964, and P. L. 89-321, 79 Stat. 1206, Nov. 3, 1965.

Subsec. (e) was added by P. L. 89-321, 79 Stat. 1206, November 3, 1965.

Sec. 1(10) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 228, Aug. 10, 1973 provided that sections 379d, 379e, 379f, 379g, 379h, 3791, and 379) of the Agricultural Adjustment Act of 1938 (which deal with marketing certificate requirements for processors and exporters) shall not be applicable to wheat processed or exported during the period July 1, 1973, through June 30, 1978. Sec. 403 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 926, Sept. 29, 1977, provided that these sections shall not be applicable to wheat processors or exporters during the period July 1, 1973, through May 31, 1982. These sections were originally enacted by P.L. 87-703, 76 Stat. 627, Sept. 27, 1962.

The first sentence of subsection (b) was amended by Sec. 403 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1366, Nov. 30, 1970, effective only with respect to the 1971, 1972, and 1973 marketing years, to delete the words "During any marketing year for which a wheat marketing allocation program is in effect," and substitute the words "During each marketing year,". This sentence was previously amended by P.L. 88-297, 78 Stat. 181, April 11, 1964. The second sentence of subsection (b) was amended by P.L. 89-321, 79 Stat. 1205, Nov. 3, 1965. The third, fourth, and fifth sentences were also added by P.L. 89-321, 79 Stat. 1202, and were effective upon the enactment of P.L. 89–321. The tenth sentence was also added by P.L. 89-321, 79 Stat. 1203.