basic commodity at less than 5 per centum above the current support price for such commodity, plus reasonable carrying charges: Provided, That effective with the beginning of the marketing year for the 1961 crop, the Corporation shall not sell any upland or extra long staple cotton for unrestricted use at less than 15 per centum above the current support price for cotton plus reasonable carrying charges, except that the Corporation may, in an orderly manner and so as not to affect market prices unduly, sell for unrestricted use at the market price at the time of sale a number of bales of cotton equal to the number of bales by which the national marketing quota for such marketing year is reduced below the estimated domestic consumption and exports for such marketing year pursuant to the provisions of section 342 of the Agricultural Adjustment Act of 1938, as amended: Provided further, 9 That beginning August 1, 1964, the Commodity Credit Corporation may sell upland cotton for unrestricted use at not less than 105 per centum of the current loan rate for such cotton under section 103(a) plus reasonable carrying charges: Provided, 10 That the Corporation shall not sell any of its stocks of wheat, corn, grain sorghum, barley, oats, and rye, respectively, at less than 115 per centum of the current national average loan rate for the commodity, adjusted for such current market differentials reflecting grade, quality, location, and other value factors as the Secretary determines appropriate, plus reasonable carrying charges. The foregoing restrictions shall not apply to (A) sales for new or byproduct uses; (B) sales of peanuts and oilseeds for the extraction of oil; (C) sales for seed or feed if such sales will not substantially impair any price-support program; (D) sales of commodities which have substantially deteriorated in quality or as to which there is a danger of loss or waste through deterioration or spoilage; (E) sales for the purpose of establishing claims arising out of contract or against persons who have committed fraud, misrepresentation, or other wrongful acts with respect to the commodity; (F) sales for export; (G) sales of wool; and (H) sales for other than primary uses. Notwithstanding the foregoing, the Corporation, on such terms and conditions as the Secretary may deem in the public interest, shall make available any farm commodity or product thereof owned or controlled by it for use in relieving distress (1) in any area in the United States including the Virgin Islands11 declared by the President to be an acute distress area

* This proviso was added by section 109 of the Agricultural Act of 1958, P.L. 85-835, 72 Stat. 996. The proviso was superseded as to upland cotton on August 1, 1964, by the proviso which follows it in the text.

This proviso, which was added by P.L. 88-297, 78 Stat. 175, April 11, 1964, was superseded by the provisions quoted in footnote 19, for the effective periods therein stated. Such proviso will become fully effective again on August 1, 1982. 10 This proviso was substituted for two previous provisos by Sec. 409 of the Agricultural Act of 1970, P.L. 91-524, 84, Stat. 1367, Nov. 30, 1970, effective only for the 1971, 1972, and 1973 marketing years. Sec. 1 (16) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 230, Aug. 10, 1973, made it effective through the 1977 marketing years. Sec. 408(1) of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977, made this proviso effective with respect to the marketing years for the 1978 through 1981 crops.

The previous provisos, which will once again become effective for the 1982 marketing years, read as follows: "Provided, That if a wheat marketing allocation program is in effect, the current support price for wheat shall be the support price for wheat accompanied by marketing certificate and wheat sold shall be accompanied by a marketing certificate." (This proviso was added by the Food and Agriculture Act of 1962, P.L. 87-703, 76 Stat. 631, Sept. 27, 1962. It was superseded for the 1964 though 1970 marketing years by the proviso quoted in footnote 36 on page 185 of Agriculture Handbook No. 444.)

"Provided, That whenever the Secretary of Agriculture determines that the carryover at the end of any marketing year of a price supported agricultural commodity for which a voluntary adjustment program is in effect will be less than 25 per centum (35 per centum in the case of wheat) of the estimated export and domestic consumption of such commodity during such marketing year, the Commodity Credit Corporation shall not sell any of its stocks of such commodity during such year for unrestricted use at less than 115 per centum (120 per centum in the case of wheat whenever its carryover will be less than 25 per centum of such estimated export and domestic consumption) of the current price support loan plus reasonable carrying charges." (This priviso was added by the Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1538, Nov. 11, 1966, effective January 1, 1967.)

"The words "including the Virgin Islands" were added by P.L. 88-585, 78 Stat. 927, Sept. 11, 1964.

because of unemployment or other economic cause if the President finds that such use will not displace or interfere with normal marketing of agricultural commodities and (2) in connection with any major disaster determined by the President to warrant assistance by the Federal Government under Public Law 875, Eighty-first Congress, as amended (42 U.S.C. 1855)12 and shall make feed owned or controlled by it available at any price not less than 75 per centum of the current 13 basic county loan rate (or a comparable price if there is no current basic county loan rate) for assistance in the preservation and maintenance of foundation herds of cattle (including producing dairy cattle), sheep, and goats, and their offspring, in any area of the United States including the Virgin Islands 14 where, because of flood, drought, fire, hurricane, earthquake, storm, disease, insect infestation, or other catastrophe in such areas, the Secretary determines that an emergency exists which warrants such assistance, such feed to be made available only to persons who do not have, and are unable to obtain through normal channels of trade without undue financial hardship, sufficient feed for such livestock: Provided, That the Secretary may provide for the furnishing of feed, or mixed feed in accordance with regulations prescribed by him, to such persons by feed dealers under an arrangement whereby the feed grains (or other feed being sold by the Corporation) in the feed so furnished would be replaced with feed owned or controlled by the Corporation and sold to such persons at a price determined as provided above. Except on a reimbursable basis, the Corporation shall not bear any costs in connection with making such commodity available beyond the cost of the commodities to the Corporation in store and the handling and transportation costs in making delivery of the commodity to designated agencies at one or more central locations in each State or other area. 15 Nor shall the foregoing restrictions apply to sales of commodities the disposition of which is desirable in the interest of the effective and efficient conduct of the Corporation's operations because of the small quantities involved, or because of age, location or questionable continued storability, but such sales shall be offset by such purchases of commodities as the Corporation determines are necessary to prevent such sales from substantially impairing any price-support program, or unduly affecting market prices, but in no event shall the purchase price exceed the Corporation's minimum sales price for such commodities for unrestricted use. 16 For the purpose of this section, sales for export

12 See Act of Sept. 21, 1959, P.L. 86-299, 73 Stat. 574 (p. 41-4). P.L. 875, 81st Congress, should be read as the Disaster Relief Act of 1974, P.L. 93-288, 88 Stat. 143, May 22, 1974, as provided in that Act and in the Disaster Relief Act of 1970, P.L. 91-606, 84 Stat. 1759, Dec. 31, 1970, which repealed P.L. 81-875. The language appearing after "(42 U.S.C. 1855)" and before the colon was added by P.L. 87-127, 75 Stat. 293, Aug. 7, 1961. P.L. 88-585, 78 Stat. 927, Sept. 11, 1964, changed the minimum price and added the proviso.

13 The minimum price provision was substituted for previous words by Sec. 409 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1367, Nov. 30, 1970, effective for the 1971, 1972, and 1973 marketing years. Sec. 1(16) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 230, Aug. 10, 1973, made it effective through the 1977 marketing years. Sec. 408 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977, further extended the provision through the 1981 crops. The previous wording, which will become effective again with respect to the marketing years for the 1982 and subsequent crops, reads as follows: "current basic county support rate for such feed including the value of any applicable price support payment in kind (or a comparable price if there is no current county support rate)."

14 See footnote 11.

15 The two preceding sentences were added by Sec. 301 of the Agricultural Trade Development and Assistance Act of 1954, P.L. 83-480, 68 Stat. 458, July 10, 1954. The words "or other area" were added by P.L. 88-585, 78 Stat. 927, Sept. 11, 1964.

16 This sentence was added by P.L. 83-554, 68 Stat. 583, July 29, 1954. The language following "price-support program," was substituted for previous words by Sec. 409 of the Agricultural Act of 1970, P.L. 83-554, 84 Stat. 1367, Nov. 30, 1970, effective only with respect to the 1971, 1972, and 1973 marketing years. Sec. 1(16) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 230, Aug. 10, 1973, made this language effective through the 1977 marketing years. Sec. 408 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 928, Sept. 29, 1977,

shall not only include sales made on condition that the identical commodities sold be exported, but shall also include sales made on condition that commodities of the same kind and of comparable value or quantity be exported, either in raw or processed form.17 Notwithstanding the foregoing, whenever prior to December 31, 1963, the Secretary determines it necessary in order to assure the Nation an adequate supply of milk free of contamination by radioactive fallout, he may make feed owned or controlled by the Commodity Credit Corporation available to producers of milk in any area or areas of the United States at such prices and on such terms and conditions as he deems appropriate in the public interest.18 Notwithstanding any other provision of law, (1) the Commodity Credit Corporation shall sell upland cotton for unrestricted use at the same prices as it sells cotton for export, in no event, however, at less than 115 per centum of the loan rate for Strict Low Middling one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) adjusted for such current market differentials reflecting grade, quality, location, and other value factors as the Secretary determines appropriate plus reasonable carrying charges, 19 and (2) the Commodity Credit Corporation shall sell or make available for unrestricted use at current market prices in each marketing year a quantity of upland cotton equal to the amount by which the production of upland cotton is less than the estimated requirements for domestic use and for export for such marketing year.20 The Secretary may make such estimates and adjustments therein at such times as he determines will best effectuate the provisions of part (2) of the foregoing sentence and such quantities of cotton as are required to be sold under such sentence shall be offered for sale in an orderly manner and so as not to affect market prices unduly. Notwithstanding any other provision of this section, effective August 1, 1968, the Commodity Credit Corporation shall make available during each marketing year for sale for unrestricted use at market prices at the time of sale, a quantity of American grown extra long staple cotton equal to the amount by which the production of such cotton in the calendar year in which such marketing year begins is less than the estimated requirements of American grown extra long staple cotton for domestic use and for export for such marketing year: Provided, That no sales shall be made at less than 115 per centum of the loan rate for extra long staple cotton under section 101(f) of this Act beginning with the marketing year for the first crop for which the national marketing quota for extra long staple cotton is not established under paragraph (3) of section 347(b) of the Agricultural Adjustment

further extended the provision through the 1981 crops. The previous wording, which will again become effective with respect to the marketing years for the 1982 and subsequent crops, reads as follows: "but in no event shall the purchase price exceed the then current support price for such commodities."

This sentence was added by P.L. 84-395. 70 Stat. 6, Jan. 28, 1956.

18 This sentence was added by Sec. 404 of the Food and Agriculture Act of 1962, P.L. 87-703, 76 Stat. 632, Sept. 27, 1962.

19 Sec. 603 of the Agricultural Act of 1970, P.L. 91-524, 94 Stat. 1377, Nov. 30, 1970, amended the preceding part of this sentence, effective only with respect to the period beginning August 1, 1971, and ending July 31, 1974. Sec. 1(21) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 235, Aug. 10, 1973, extended the end of this period to July 31, 1978. Sec. 603 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 939, Sept. 29, 1977, changed the figure from 110 to 115 and the quality from Middling one-inch, and made this part of the sentence, as amended, effective for the period Aug. 1, 1978-July 31, 1982.

Before the 1970 amendment this part of the sentence read as follows: "Notwithstanding any other provision of this section, for the period August 1, 1966, through July 31, 1971, the Commodity Credit Corporation shall sell upland cotton for unrestricted use at the same prices as it sells cotton for export, in no event, however, at less than 110 per centum of the loan rate, and (2) . . .' The date July 31, 1971, was substituted for July 31, 1970, by P.L. 90–559, 82

Stat. 996, Oct. 11, 1968.

20 This and the following sentence were added by the Food and Agriculture Act of 1965, P.L. 89-321, 79 Stat. 1197, Nov. 3, 1965.

Act of 1938, as amended. The Secretary may make such estimates and adjustments therein at such times as he determines will best effectuate the provisions of the foregoing sentence and such quantities of cotton as are required to be sold under such sentence shall be offered for sale in an orderly manner and so as not to affect market prices unduly.21 (7 U.S.C. 1427.)

DEFINITIONS

SEC. 408. For the purposes of this Act—

STORABLE COMMODITIES

(a) A commodity shall be considered storable upon determination by the Secretary that, in normal trade practice, it is stored for substantial periods of time and that it can be stored under the price-support program without excessive loss through deterioration or spoilage or without excessive cost for storage for such periods as will permit its dispostion without substantial impairment of the effectiveness of the price-support program. (7 U.S.C. 1428(a).)

COOPERATOR

(b)22 A "cooperator" with respect to any basic agricultural commodity shall be a producer on whose farm the acreage planted to the commodity does not exceed the farm acreage allotment for the commodity under title III of the Agricultural Adjustment Act of 1938, as amended, or in the case of price support for corn or wheat to a producer outside the commercial corn-producing or wheat-producing area, a producer who complies with conditions of eligibility prescribed by the Secretary: Provided, 23 That for upland cotton a cooperator shall be a producer on whose farm the acreage planted to such cotton does not exceed the cooperator percentage, which shall be in the case of the 1966 crop, 87.5 per centum of such farm acreage allotment and, in the case of each of the 1967 through 1970 crops, such percentage, not less than 87.5 or more than 100 per centum, of such farm acreage allotment as the Secretary may specify for such crop, except that int he case of small farms (i.e., farms on which the acreage allotment is 10 acres or less, or on which the projected farm yield times the acreage allotment is 3,600 pounds or less, and the acreage allotment has not been reduced under section 344(m)) the acreage of cotton on the farm shall not be required to be reduced below the farm acreage allotment: And provided, 24 That for the 1971 through 1977 crops of upland cotton a cooperator shall be a producer on a farm on which a farm base acreage allotment has been established who has set aside the acreage required under section 103(e): Provided further, 25 That for the 1976 through

21 The last two sentences were added by P.L. 90-475, 82 Stat. 703, Aug. 11, 1968.

22 The words "or wheat" and "or wheat-producing" were added by Sec. 209 of the Agricultural Act of 1954, P.L. 83-690, 68 Stat. 901, Aug. 28, 1954.

23 The proviso was added by the Food and Agriculture Act of 1965, P.L. 89-321, 79 Stat. 1197. Nov. 3, 1965. The final year of the period was extended from 1969 to 1970 by P.L. 90-559, 82 Stat. 996, Oct. 11, 1968.

24 This

proviso was added by Sec. 604 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1378, Nov. 30, 1970. The words "1971 through 1977" were substituted for "1971, 1972, and 1973" by Sec. 1(22) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 221, Aug. 10, 1973.

25 This proviso was added by Sec. 303 of the Rice Production Act of 1975, P.L. 94-214, 90 Stat. 188, Feb. 16, 1976, effective only with respect to the 1976 and 1977 crops of rice, and extended through the 1981 crop by Sec. 704 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 944, Sept. 29, 1977.

1981 crops of rice, a cooperator shall be a person who produces rice on a farm for which a farm acreage allotment has been established or to which a producer acreage allotment has been allocated and, if a setaside is in effect, who has set aside any acreage required under section 101(g)25A: Provided further, 26 That for the 1978 through 1981 crops of upland cotton, a cooperator shall be a producer on a farm who has set aside the acreage required under section 103(f). For the purpose of this subsection, a producer shall not be deemed to have exceeded his farm acreage allotment unless such producer knowingly exceeded such allotment.27 (7 U.S.C. 1428(b).)

BASIC AGRICULTURAL COMMODITY

(c) A "basic agricultural commodity" shall mean corn, cotton, peanuts, rice, tobacco, and wheat, respectively. (7 U.S.C. 1428(c).)

NONBASIC AGRICULTURAL COMMODITY

(d) A "nonbasic agricultural commodity" shall mean any agricultural commodity other than a basic agricultural commodity. (7 U.S.C. 1428(d).)

SUPPLY PERCENTAGE

(e) The "supply percentage" as to any commodity shall be the percentage which the estimated total supply is of the normal supply as determined by the Secretary from the latest available statistics of the Department of Agriculture as of the beginning of the marketing year for the commodity. (7 U.S.C. 1428(e).)

TOTAL SUPPLY

(f) "Total supply"28 of any nonbasic agricultural commodity for any marketing year shall be the carry-over at the beginning of such marketing year, plus the estimated production of the commodity in the United States during the calendar year in which such marketing year begins and the estimated imports of the commodity into the United States during such marketing year. (7 U.S.C. 1428(f).)

CARRY-OVER

(g) "Carry-over"28 of any nonbasic agricultural commodity for any marketing year shall be the quantity of the commodity on hand in the United States at the beginning of such marketing year, not including any part of the crop or production of such commodity which was produced in the United States during the calendar year then current. The carry-over of any such commodity may also include the quantity of such commodity in processed form on hand in the United States at the beginning of such marketing year, if the Secretary determines that the

25A For the 1978 through 1980 crops of rice, a cooperator must comply with the provisions of sec. 101(h) of the Agriculture Act of 1949.

26 This proviso was added by Sec. 604(a) of the Food and Agriculture Act of 1977, P.L. 95–113, 91 Stat. 939, Sept. 29, 1977.

27 See section 374(c) of the Agricultural Adjustment Act of 1938 as to adjusting planted acreage.

2 See section 301(b) of the Agricultural Adjustment Act of 1938 for definitions applicable to basic commodities.