§ 1423. — Adjustments of support prices.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1423]
TITLE 7--AGRICULTURE
CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1423. Adjustments of support prices
(a) In general
The Secretary may make appropriate adjustments in the support price
for any commodity (excluding cotton) for differences in grade, type,
quality, location and other factors. The adjustments shall, so far as
practicable, be made in such manner that the average support price for
the commodity will, on the basis of the anticipated incidence of such
factors be equal to the level of support determined as provided in this
Act. Beginning with the 1991 crops of wheat, feed grains, and soybeans
for which price support is provided under this Act, the Secretary shall
establish premiums and discounts related to cleanliness factors in
addition to any other premiums or discounts related to quality.
(b) Adjustment in support prices for cotton
The Secretary may make appropriate adjustments in the support price
for cotton for differences in quality factors and location. Beginning
with the 1991 crop, the quality differences (premiums and discounts for
quality factors) for the upland cotton loan program shall be established
by the Secretary by giving equal weight to (1) loan differences for the
preceding crop, and (2) market differences for such crop in the
designated United States spot markets.
(c) Limitation on adjustments for wheat and feed grains
Notwithstanding any other provision of this section, for each of the
1990 through 1995 crops of wheat and feed grains, no adjustment in the
loan rate applicable to a particular region, State, or county for the
purpose of reflecting transportation differentials may increase or
decrease the regional, State, or county loan rate from the level
established for the previous year by more than the percentage change in
the national average loan rate plus or minus 3 percent.
(Oct. 31, 1949, ch. 792, title IV, Sec. 403, 63 Stat. 1054; Pub. L. 85-
835, title I, Secs. 108, 111, Aug. 28, 1958, 72 Stat. 993; Pub. L. 89-
321, title VIII, Sec. 802, Nov. 3, 1965, 79 Stat. 1213; Pub. L. 97-98,
title V, Sec. 507, Dec. 22, 1981, 95 Stat. 1241; Pub. L. 100-203, title
I, Sec. 1105, Dec. 22, 1987, 101 Stat. 1330-5; Pub. L. 101-624, title
XI, Sec. 1128, title XX, Sec. 2011, Nov. 28, 1990, 104 Stat. 3508,
3932.)
References in Text
This Act, referred to in subsec. (a), is act Oct. 31, 1949, ch. 792,
63 Stat. 1051, as amended, known as the Agricultural Act of 1949, which
is classified principally to this chapter (Sec. 1421 et seq.). For
complete classification of this Act to the Code, see Short Title note
set out under section 1421 of this title and Tables.
Amendments
1990--Pub. L. 101-624, Sec. 2011, inserted at end of subsec. (a)
``Beginning with the 1991 crops of wheat, feed grains, and soybeans for
which price support is provided under this Act, the Secretary shall
establish premiums and discounts related to cleanliness factors in
addition to any other premiums or discounts related to quality.''
Pub. L. 101-624, Sec. 1128, in amending section generally,
designated part of existing text as subsecs. (a), (b), and (c), and in
subsec. (a) inserted provisions excluding cotton, in subsec. (b)
substituted reference to 1991 crop for reference to 1982 crop, and
substituted reference to quality factors for reference to grade, staple
and micronaire, and in subsec. (c) substituted reference to 1990 through
1995 crops for reference to 1988 through 1990 crops, substituted
reference to 3 percent for reference to 2 percent, and struck out
provisions relating to establishment and duties of a study committee and
authority of Secretary to review and revise procedures and criteria for
establishing values of premiums and discounts for grade, staple and
micronaire for upland cotton program.
1987--Pub. L. 100-203 inserted at end ``Notwithstanding the
preceding provisions of this section, for each of the 1988 through 1990
crops of wheat and feed grains, no adjustment in the loan rate
applicable to a particular region, State, or county for the purpose of
reflecting transportation differentials may increase or decrease such
regional, State, or county loan rate from the level established for the
previous year by more than the percentage change in the national average
loan rate plus or minus 2 percent.''
1981--Pub. L. 97-98 inserted provision directing that beginning with
1982 crop of upland cotton, the quality differences for the loan program
be established by giving equal weight to the loan differences for the
preceding crop and to the market differences for the crop in the nine
designated United States spot markets and authorizing the Secretary to
establish a study committee to study and report on alternative methods
of establishing values of premiums and discounts for grade, staple, and
micronaire for the upland cotton loan program that accurately represent
true relative market values and reflect actual market demand for upland
cotton produced in the United States and to review procedures and
criteria for determining quality differences, prior to the announcement
of the loan rate differences for the 1982 crop of upland cotton, and
based on such review, revise such procedures and criteria to actually
reflect the actual market value of upland cotton produced in the United
States.
1965--Pub. L. 89-321 provided that, in determining support prices
for 1966 and 1967 rice crops, the Secretary shall use head and broken
rice value factors for the various varieties which are not lower than
those with respect to the 1965 crop and which do not differ as between
any two varieties by a greater amount than the value factors used with
respect to the 1965 crop for such two varieties differed.
1958--Pub. L. 85-835 provided for support of split grades, and
repealed, effective with the 1961 crop, sentence prescribing standard
cotton grade for parity and price support purposes.
Effective Date of 1990 Amendment
Amendment by section 1128 of Pub. L. 101-624 effective beginning
with 1991 crop of an agricultural commodity, with provision for prior
crops, see section 1171 of Pub. L. 101-624, set out as a note under
section 1421 of this title.
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section 1801
of Pub. L. 97-98, set out as an Effective Date note under section 4301
of this title.
Exceptions From Transfer of Functions
Functions of Corporations of Department of Agriculture, boards of
directors and officers of such corporations; Advisory Board of Commodity
Credit Corporation; and Farm Credit Administration or any agency,
officer, or entity of, under, or subject to supervision of said
Administration excepted from functions of officers, agencies, and
employees transferred to Secretary of Agriculture by 1953 Reorg. Plan
No. 2, Sec. 1, effective June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set
out as a note under section 2201 of this title.
Inapplicability of Section
Section inapplicable to 2002 through 2007 crops of covered
commodities, peanuts, and sugar and inapplicable to milk during period
beginning May 13, 2002, through Dec. 31, 2007, see section 7992(b)(10)
of this title.
Section inapplicable to 1996 through 2002 crops of loan commodities,
peanuts, and sugar and inapplicable to milk during period beginning Apr.
4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(J) of this
title.
Section Referred to in Other Sections
This section is referred to in sections 1428, 1444, 1445 of this
title.
