§ 1427. — Commodity Credit Corporation sales price restrictions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1427]
TITLE 7--AGRICULTURE
CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1427. Commodity Credit Corporation sales price restrictions
(a) In general
The Commodity Credit Corporation may sell any farm commodity owned
or controlled by the Corporation at any price not prohibited by this
section.
(b) Inventories
In determining sales policies for basic agricultural commodities or
storable nonbasic commodities, the Corporation should consider the
establishment of such policies with respect to prices, terms, and
conditions as the Corporation determines will not discourage or deter
manufacturers, processors, and dealers from acquiring and carrying
normal inventories of the commodity of the current crop.
(c) Sales price restrictions
(1) In general
Except as otherwise provided in this section, the Corporation
shall not sell any basic agricultural commodity or storable nonbasic
commodity at less than 115 percent of the lower of--
(A) the current national average price support loan rate for
the commodity adjusted for the current market differentials
reflecting grade, quality, location, reasonable carrying
charges, and other factors determined appropriate by the
Corporation; or
(B) the loan repayment level.
(2) Extra long staple cotton
The Corporation may sell extra long staple cotton for
unrestricted use at such price as the Corporation determines is
appropriate to maintain and expand export and domestic markets.
(3) Oilseeds
The Corporation shall not sell oilseeds at less than the lower
of--
(A) 105 percent of the current national average price
support loan rate for the oilseed, adjusted for the current
market differentials reflecting grade, quality, location,
reasonable carrying charges, and other factors determined
appropriate by the Corporation; or
(B) 115 percent of the loan repayment level.
(4) Wheat and feed grains
Whenever the producer reserve program for wheat and feed grains
established under section 1445e of this title is in effect, the
Corporation may not sell any of its stocks of wheat or feed grains
at a level that is less than 150 percent of the then current loan
rate for wheat or feed grains.
(5) Upland cotton
The Commodity Credit Corporation shall sell upland cotton for
unrestricted use at the same price the Corporation sells upland
cotton for export, but in no event at less than the amount provided
for in paragraph (1).
(d) Nonapplication of sales price restrictions
The foregoing restrictions of this section shall not apply to--
(1) sales for new or byproduct uses;
(2) sales of peanuts and oilseeds for the extraction of oil;
(3) sales for seed or feed if the sales will not substantially
impair any price support program;
(4) sales of commodities that have substantially deteriorated in
quality or as to which there is a danger of loss or waste through
deterioration or spoilage;
(5) 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;
(6) sales for export (excluding sales of upland cotton for
export);
(7) sales of wool; and
(8) sales for other than primary uses.
(e) Distress, disaster, and livestock emergency areas
(1) In general
Notwithstanding the foregoing provisions of this section, the
Corporation, on such terms and conditions as the Secretary may
consider in the public interest, may--
(A) make available any farm commodity or product thereof
owned or controlled by the Corporation for use in relieving
distress--
(i) in any area in the United States (including the
Virgin Islands) declared by the President to be an acute
distress area because of unemployment or other economic
cause, if the President finds that the use will not displace
or interfere with normal marketing of agricultural
commodities; and
(ii) in connection with any major disaster determined by
the President to warrant assistance by the Federal
Government under the Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.); and
(B) donate or sell commodities in accordance with subchapter
V of this chapter.
(2) Costs
Except on a reimbursable basis, the Corporation shall not bear
any costs in connection with making the commodity available under
this subsection beyond the cost of the commodities to the
Corporation in--
(A) the storage of the commodity; and
(B) 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.
(f) Efficient operations
(1) In general
Subject to paragraph (2), the foregoing restrictions of this
section shall not apply to sales of commodities the disposition of
which is desirable in the interest of the effective and efficient
conduct of the operations of the Corporation because of the small
quantities involved, or because of age, location or questionable
continued storability of the commodity.
(2) Offsets
The sales shall be offset (if necessary) by the purchases of
commodities as the Corporation determines is appropriate to prevent
the sales from substantially impairing any price support program or
unduly affecting market prices, except that the purchase price shall
not exceed the Corporation's minimum sales price for the commodities
for unrestricted use.
(3) Competitive bid basis
Subject to the sales price restrictions contained in this
section, the Corporation may sell any basic agricultural commodity
or storable nonbasic commodity on a competitive bid basis, if the
sale is determined to be appropriate by the Secretary.
(g) Sales for export
For the purposes of this section, sales for export shall include--
(1) sales made on condition that the identical commodities sold
be exported; and
(2) sales made on condition that commodities of the same kind
and of comparable value or quantity be exported, either in raw or
processed form.
(Oct. 31, 1949, ch. 792, title IV, Sec. 407, 63 Stat. 1055; July 10,
1954, ch. 469, title III, Sec. 308, formerly Sec. 301, 68 Stat. 458,
renumbered Sec. 308, Pub. L. 95-88, title II, Sec. 211(a)(1), Aug. 3,
1977, 91 Stat. 548; amended July 29, 1954, ch. 643, 68 Stat. 583; Jan.
28, 1956, ch. 14, 70 Stat. 6; Pub. L. 85-835, title I, Sec. 109, Aug.
28, 1958, 72 Stat. 993; Pub. L. 87-127, Aug. 7, 1961, 75 Stat. 293; Pub.
L. 87-703, title III, Sec. 325(2), title IV, Sec. 404, Sept. 27, 1962,
76 Stat. 631, 632; Pub. L. 88-297, title I, Sec. 104, title II,
Sec. 204, Apr. 11, 1964, 78 Stat. 175, 183; Pub. L. 88-585, Sec. 1,
Sept. 11, 1964, 78 Stat. 927; Pub. L. 89-321, title IV, Sec. 404, Nov.
3, 1965, 79 Stat. 1197; Pub. L. 89-808, Sec. 3(e), Nov. 11, 1966, 80
Stat. 1538; Pub. L. 90-475, Sec. 7, Aug. 11, 1968, 82 Stat. 703; Pub. L.
90-559, Sec. 1(5), Oct. 11, 1968, 82 Stat. 996; Pub. L. 91-524, title
IV, Sec. 409, title VI, Sec. 603, Nov. 30, 1970, 84 Stat. 1367, 1377;
Pub. L. 95-113, title IV, Sec. 408, title VI, Sec. 603, Sept. 29, 1977,
91 Stat. 927, 939; Pub. L. 97-98, title V, Sec. 503, title XI,
Secs. 1103, 1111(a), Dec. 22, 1981, 95 Stat. 1240, 1264, 1267; Pub. L.
98-88, Sec. 5, Aug. 26, 1983, 97 Stat. 499; Pub. L. 99-198, title V,
Sec. 503, title X, Sec. 1007, title XVII, Sec. 1763(b), Dec. 23, 1985,
99 Stat. 1418, 1451, 1651; Pub. L. 100-387, title I, Sec. 101(b)(2),
Aug. 11, 1988, 102 Stat. 931; Pub. L. 100-707, title I, Sec. 109(a)(2),
Nov. 23, 1988, 102 Stat. 4708; Pub. L. 101-624, title XI, Sec. 1130,
Nov. 28, 1990, 104 Stat. 3509.)
References in Text
The Disaster Relief and Emergency Assistance Act, referred to in
subsec. (e)(1)(A)(ii), is Pub. L. 93-288, May 22, 1974, 88 Stat. 143, as
amended, known as the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, which is classified principally to chapter 68 (Sec. 5121
et seq.) of Title 42, The Public Health and Welfare. For complete
classification of this Act to the Code, see Short Title note set out
under section 5121 of Title 42 and Tables.
Prior Provisions
A prior section 308 of act July 10, 1954, ch. 469, title III, as
added Sept. 21, 1959, Pub. L. 86-341, title I, Sec. 13, 73 Stat. 609;
amended Sept. 27, 1962, Pub. L. 87-703, title II, Sec. 203, 76 Stat.
611, cited as a credit to this section, which enacted section 1697 of
this title, was repealed by Pub. L. 89-808, Sec. 2(D), Nov. 11, 1966, 80
Stat. 1535.
Amendments
1990--Pub. L. 101-624 amended section generally, designating part of
existing text as subsecs. (a) to (g), and as so designated, in subsec.
(c), substituting provisions restricting sales of nonbasic or
agricultural commodities at less than 115 percent of the levels of the
current national price support level or the loan repayment level for
provisions restricting such sales at less than 5 percent above the
current support price, substituting provisions authorizing the sale of
extra long staple cotton at any price determined appropriate for
provisions that it sell at not less than 15 percent above the current
support price, adding provisions relating to oilseeds, and wheat and
feed grains, deleting provisions relating to sales of extra long staple
cotton for unrestricted use and the authority of Secretary in carrying
out this section.
1988--Pub. L. 100-707, substituted ``the Disaster Relief and
Emergency Assistance Act'' for ``Public Law 875, Eighty-first Congress,
as amended (42 U.S.C. 1855)''.
Pub. L. 100-387 substituted provision authorizing the Commodity
Credit Corporation to donate or sell commodities in accordance with
subchapter V of this chapter for provision authorizing the Commodity
Credit Corporation to make feed for livestock available to certain
persons in certain areas during emergencies.
1985--Pub. L. 99-198, Sec. 1007, temporarily reenacted substantially
without change the amendments made in 1981 by section 1103 of Pub. L.
97-98, which had established a floor for sales of wheat and feed grains
in inventory for unrestricted use at 115 per centum of the current
national average loan rate for the commodity adjusted for current market
differentials reflecting grade, quality, location, and other value
factors, plus reasonable carrying charges; designated such provisions as
thus reenacted as cl. (A) of the proviso involved and added cl. (B)
relating to the Secretary's permitting the repayment of loans at a loan
rate less than the loan level determined for such crop; and reenacted,
also without change, the amendments by Pub. L. 97-98 which had the price
at which purchases had to be made to offset sales in the interest of the
efficient conduct of the Corporation's operations to an amount not
exceeding the minimum sales price for the commodity for unrestricted
use. See Effective and Termination Dates of 1985 Amendment note below.
Pub. L. 99-198, Sec. 1763(b), inserted provision giving the
Commodity Credit Corporation authority to (1) make available feed for
livestock to certain persons during emergencies in areas in which feed
grains are normally produced and normally available for feed purposes,
but in which they are unavailable because of a catastrophe described in
the fourth sentence of this section, (2) make such feed available to
such persons through feed dealers in the areas, (3) make such feed
available at a price not less than the price prescribed in the fourth
sentence of this section, and (4) bear any expenses incurred in
connection with making such feed available to such persons under this
sentence, including transportation and handling costs.
Pub. L. 99-198, Sec. 503, temporarily reenacted substantially
without change the amendments made in 1981 by section 503 of Pub. L. 97-
98, which provided that the Commodity Credit Corporation sell upland
cotton for unrestricted use at the same prices as it sells cotton for
export, but in no event 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, and
substituted ``as it sells upland cotton'' for ``as it sells cotton'' and
``percent'' for ``per centum''; designated such provisions as thus
reenacted as cl. (A), and added cl. (B) relating to the Secretary's
permitting the repayment of loans at a loan rate less than the loan
level determined for such crop. See Effective and Termination Dates of
1985 Amendment note below.
1983--Pub. L. 98-88 inserted provision that, beginning Aug. 26,
1983, the Commodity Credit Corporation may sell extra long staple cotton
for unrestricted use at such price levels as the Secretary determines
appropriate to maintain and expand export and domestic markets for such
cotton.
1981--Pub. L. 97-98 temporarily reenacted without change the
amendments made in 1977 by section 408 of Pub. L. 95-113, which had
established a floor for sales of wheat and feed grains in inventory for
unrestricted use at 115 per centum of the current national average loan
rate for the commodity adjusted for current market differentials
reflecting grade, quality, location, and other value factors, plus
reasonable carrying charges, and which had changed the price at which
purchases had to be made to offset sales in the interest of the
efficient conduct of the Corporation's operations to an amount not
exceeding the minimum sales price for the commodity for unrestricted
use, and the amendment made in 1977 by section 603 of Pub. L. 95-113,
which provided that the Commodity Credit Corporation sell upland cotton
for unrestricted use at the same prices as it sells cotton for export,
but in no event at less than 115 per centum of the loan rate for Strict
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, and substituted
``may make available'' for ``shall make available'' and ``may make
feed'' for ``shall make feed''. See Effective and Termination Dates of
1981 Amendment note below.
1977--Pub. L. 95-113 temporarily reenacted without change the
amendments made in 1970 by section 409 of Pub. L. 91-524 which had
established a floor for sales of wheat and feed grains in inventory for
unrestricted use at 115 per centum of the current national average loan
rate for the commodity adjusted for current market differentials
reflecting grade, quality, location, and other value factors, plus
reasonable carrying charges, and which had changed the price at which
purchases had to be made to offset sales in the interest of the
efficient conduct of the Corporation's operations to an amount not
exceeding the minimum sales price for the commodity for unrestricted
use, and reenacted the amendment made in 1970 by section 603 of Pub. L.
91-524 with regard to the sale of upland cotton by the Corporation with
the single change of substituting ``at less than 115 per centum of the
loan rate for Strict Low Middling one and one-sixteenth inch upland
cotton'' for ``at less than 110 per centum of the loan rate for Middling
one-inch upland cotton'' in provisions setting the minimum price at
which the Corporation shall sell upland cotton for unrestricted use. See
Effective and Termination Dates of 1977 Amendment note below.
1970--Pub. L. 91-524 temporarily established a floor for sales of
wheat and feed grains in inventory for unrestricted use at 115 per
centum of the current national average loan rate for the commodity
adjusted for current market differentials reflecting grade, quality,
location, and other value factors, plus reasonable carrying charges,
changed the price at which purchases must be made to offset sales in the
interest of the efficient conduct of the Corporation's operations to an
amount not exceeding the minimum sales price for the commodity for
unrestricted use, and provided for sale of upland cotton by the
Corporation for unrestricted use at the same prices as it sold for
export, in no event, however, at less than 110 percent of the loan rate
for Middling one-inch cotton (micronaire 3.5 through 4.9) adjusted for
such current market differentials reflecting grade, quality, location,
and other value factors as deemed appropriate by the Secretary, plus
reasonable carrying charges. See Effective and Termination Dates of 1970
Amendment note below.
1968--Pub. L. 90-559 extended termination date for sale of upland
cotton from July 31, 1970, to July 31, 1971.
Pub. L. 90-475 required that notwithstanding any other provision of
this section, effective Aug. 1, 1968, the Commodity Credit Corporation
make available for sale for unrestricted use at current market prices a
quantity of American grown extra long staple cotton equal to the
specified amount, with the proviso that beginning with the marketing
year for which the national marketing quota is not established pursuant
to section 1347(b)(3) of this title, no sales shall be made at less than
115 percent of the loan rate for extra long staple cotton under section
1441(f) of this title, and required the Secretary to make adjustments in
the quantities of cotton to be made available.
1966--Pub. L. 89-808 inserted proviso to third sentence prohibiting,
whenever carryover at 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, sale of CCC 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.
1965--Pub. L. 89-321 required that notwithstanding any other
provision of this section, for the period August 1, 1966, through July
31, 1970, (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 110 per centum of the loan rate, 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, permitted the Secretary to 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 required such quantities of cotton as are required to be
sold under such sentence to be offered for sale in an orderly manner and
so as not to affect market prices unduly.
1964--Pub. L. 88-585 provided that the Corporation, in providing
feed to distressed areas, may charge not less than 75 percent of the
current basic county support rate including the value of any applicable
price support payment in kind, included the Virgin Islands within those
areas where such feed can be made obtainable, authorized the Secretary
to provide feed by feed dealers under such arrangement that the feed so
furnished would be replaced with feed owned or controlled by the
Corporation and sold to such persons, and inserted ``or other area''
after ``one or more central locations in each State''.
Pub. L. 88-297, Sec. 104, inserted proviso that beginning Aug. 1,
1964, the 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 1444(a) of this title plus reasonable carrying charges.
Pub. L. 88-297, Sec. 204, temporarily substituted proviso that if
wheat marketing allocation program is in effect, the current price for
wheat shall be the support price for wheat not accompanied by marketing
certificates for proviso prescribing support price for wheat accompanied
by marketing certificate and sale of wheat to be accompanied by
marketing certificate, respectively. See Effective and Termination Dates
of 1964 Amendment note below.
1962--Pub. L. 87-703 prescribed that a marketing certificate
accompany the support price for wheat and wheat sold and authorized the
Secretary to make Commodity Credit Corporation feed available, prior to
Dec. 31, 1963, to milk producers to assure supply free of radioactive
fallout contamination, respectively.
1961--Pub. L. 87-127 empowered Corporation to sell, at not less than
75 percent of the current support price, feed owned or controlled by it
to assist in the preservation and maintenance of foundation herds of
cattle, sheep, and goats in such areas where the Secretary determines an
emergency exists warranting such assistance.
1958--Pub. L. 85-835 required Corporation to sell cotton for
unrestricted use at not less than 15 per centum above support price plus
reasonable carrying charges, and authorized Corporation to sell at
market price a number of bales equal to that by which the national
marketing quota is less than domestic consumption and exports.
1956--Act Jan. 28, 1956, included as ``sales for export'' sales made
on condition that like commodities of comparable value or quantity be
exported in raw or processed form.
1954--Act July 29, 1954, exempted from the minimum price requirement
any sales where disposition is desirable in the interest of effective
and efficient conduct of the Corporation's operations because of the
small quantities involved or because of age, location, or questionable
storability.
Act July 10, 1954, inserted provisions relating to use of farm
commodities and products in relieving distress.
Effective Date of 1990 Amendment
Amendment by 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 and Termination Dates of 1988 Amendment
Section 101(c) of Pub. L. 100-387 provided that:
``(1) This section and the amendments made by this section [enacting
sections 1471 to 1471j of this title, amending this section, repealing
sections 1433 and 2267 of this title, enacting provisions set out as a
note under section 1421 of this title, and repealing provisions set out
as notes under this section] shall become effective 15 days after the
date of the enactment of this Act [Aug. 11, 1988].
``(2) The provisions of section 604(d), 605(c), 606(a)(2)(A),
606(e), 609(c), and 609(d) of the Agricultural Act of 1949, as added by
subsection (a) [7 U.S.C. 1471b(d), 1471c(c), 1471d(a)(2)(A), (e),
1471g(c), (d)], shall apply only with respect to any livestock emergency
in 1988.''
Effective and Termination Dates of 1985 Amendment
Section 503 of Pub. L. 99-198 provided that the amendment made by
that section [with respect to Commodity Credit Corporation sales price
restrictions for upland cotton] is effective only with respect to period
beginning Aug. 1, 1978, and ending July 31, 1991.
Section 1007 of Pub. L. 99-198 provided that the amendment made by
that section [with respect to Commodity Credit Corporation sales price
restrictions for wheat and feed grains] is effective only for marketing
years for 1986 through 1990 crops.
Effective and Termination Dates of 1981 Amendment
Section 503 of Pub. L. 97-98 provided that the amendment made by
that section [with respect to Commodity Credit Corporation sales price
restrictions for upland cotton] is effective only with respect to period
beginning Aug. 1, 1978, and ending July 31, 1986.
Section 1103 of Pub. L. 97-98 provided that the amendment made by
that section [with respect to Commodity Credit Corporation sales
restrictions for wheat and feed grains] is effective only for marketing
years for 1982 through 1985 crops.
Amendment by Sec. 1111(a) of 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.
Effective and Termination Dates of 1977 Amendment
Section 408 of Pub. L. 95-113 provided that the amendment made by
that section [which reenacted without change the amendment first made by
section 409 of Pub. L. 91-524 establishing a floor for sales of wheat
and feed grains and changing price at which purchases must be made to
offset sales in interest of efficient conduct of Corporation's
operations] is effective only with respect to marketing years for 1978
through 1981 crops.
Section 603 of Pub. L. 95-113 provided that the amendment made by
that section [which reenacted with some changes (see 1977 Amendment note
above) the amendment first made by section 603 of Pub. L. 91-524
relating to sale of upland cotton by Corporation] is effective only with
respect to period beginning Aug. 1, 1978, and ending July 31, 1982.
Effective and Termination Dates of 1970 Amendment
Section 409 of Pub. L. 91-524, as amended by Pub. L. 93-86,
Sec. 1(16), Aug. 10, 1973, 87 Stat. 230, provided that the amendment
made by that section [establishing a floor for sales of wheat and feed
grains and changing price at which purchases must be made to offset
sales in interest of efficient conduct of Corporation's operations] is
effective only with respect to marketing years for 1971 through 1977
crops.
Section 603 of Pub. L. 91-524, as amended by Pub. L. 93-86,
Sec. 1(21), Aug. 10, 1973, 87 Stat. 235, provided that the amendment
made by that section [covering sale of upland cotton by Corporation] is
effective only with respect to period beginning Aug. 1, 1971, and ending
July 31, 1978.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89-808 effective Jan. 1, 1967, see section 5 of
Pub. L. 89-808, set out as a note under section 1691 of this title.
Effective and Termination Dates of 1964 Amendment
Section 204 of Pub. L. 88-297, as amended by Pub. L. 89-321, title
V, Sec. 503(3), Nov. 3, 1965, 79 Stat. 1203; Pub. L. 90-559, Sec. 1(1),
Oct. 11, 1968, 82 Stat. 996, provided that the amendment made by that
section is effective only with respect to marketing years beginning in
calendar years 1964 through 1970.
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.
Sale of Corn to Ethanol Producers
Section 332 of Pub. L. 100-387 provided that:
``(a) In General.--Except as otherwise provided in this section and
notwithstanding section 110(f) of the Agricultural Act of 1949 (7 U.S.C.
1445e(f)) or any other provision of law, if, during any month commencing
after July 31, 1988, the average corn price (as determined under
subsection (d)) exceeds the fuel conversion price (as defined in section
212 of the Agricultural Trade Suspension Adjustment Act of 1980 (7
U.S.C. 4005)), the Secretary of Agriculture may make available for sale
to domestic producers of ethanol fuel, for the production of ethanol,
not more than 12,000,000 bushels per month of corn owned by the
Commodity Credit Corporation.
``(b) Price.--Corn shall be sold under this section at a price that
is not more than such fuel conversion price, except that such price
shall not be less than 110 percent of the basic county loan rate for
corn, prior to any adjustment made under section 105C(a)(3) of the
Agricultural Act of 1949 (7 U.S.C. 1444e(a)(3)).
``(c) Maximum Amount.--The total quantity of corn sold to any
ethanol producer under this section may not exceed 2,000,000 bushels per
month.
``(d) Average Corn Price.--The average corn price under this section
shall be determined by the Secretary based on the average corn price in
markets used for determinations made under clause (5) of the third
sentence of section 110(b) of the Agricultural Act of 1949 (7 U.S.C.
1445e(b)).
``(e) Terms.--(1) The Secretary may not make corn or other
commodities available under this section to any domestic producer of
ethanol that uses in excess of 30,000,000 bushels of corn or comparable
commodity annually in producing ethanol.
``(2) Domestic producers of ethanol fuel purchasing corn under this
section shall agree not to resell such corn and to make available a
quantity of feed byproducts equivalent to the quantity processed from
such corn for sale to domestic livestock producers and feeders in a
manner and subject to such terms and conditions as are approved by the
Secretary.
``(f) Termination.--The Secretary shall terminate any program
established under this section no later than September 1, 1989. The
Secretary shall terminate the program on an earlier date if the
Secretary determines that--
``(1) such program is no longer necessary to maintain the
economic viability of the ethanol industry; or
``(2) a sufficient supply of corn otherwise would not be
available to fulfill estimated obligations of the Commodity Credit
Corporation under emergency livestock feeding programs during the
subsequent 180-day period.
``(g) Other Commodities.--The Secretary may, at the request of a
domestic producer of ethanol, substitute other feed grains (such as
grain sorghum) for corn on an equitable basis, taking into account
variations in the value of such commodities in the production of
ethanol.''
Emergency Feed Assistance
Pub. L. 98-180, title III, Sec. 303, Nov. 29, 1983, 97 Stat. 1151,
which authorized Secretary of Agriculture to make damaged corn available
to assist eligible farmers and ranchers in areas adversely affected by
drought, hot weather, or related disaster to preserve and maintain
foundation herds of livestock and poultry, which corn was to be
available until Sept. 30, 1984, or date, as determined by the Secretary,
on which emergency no longer exists, was repealed by Pub. L. 100-387,
title I, Sec. 101(b)(5), Aug. 11, 1988, 102 Stat. 932, eff. 15 days
after Aug. 11, 1988.
Sale of Feed for Livestock in Emergency Areas; Designation of Emergency
Area; Conditions; Penalty
Pub. L. 86-299, Sept. 21, 1959, 73 Stat. 574, as amended by Pub. L.
88-585, Sec. 3, Sept. 11, 1964, 78 Stat. 927, which authorized Secretary
of Agriculture to sell feed grains to provide feed for livestock in any
area determined by Secretary to be an emergency area, and provided
penalty for any person disposing of such feed other than by feeding
livestock owned by him, was repealed by Pub. L. 100-387, title I,
Sec. 101(b)(4), Aug. 11, 1988, 102 Stat. 931, eff. 15 days after Aug.
11, 1988.
Feed Grain; Sale by CCC; Termination Date
Act Aug. 28, 1954, ch. 1041, title II, Sec. 208, 68 Stat. 901,
authorized the Commodity Credit Corporation until March 1, 1955, to sell
at the point of storage any feed grain owned by the Corporation at 10
per centum above the current support price for the commodity.
Authorization for Commodity Credit Corporation To Sell Wheat and Corn
Pub. L. 85-683, Aug. 19, 1958, 72 Stat. 635, as authorizing
Commodity Credit Corporation to purchase flour and cornmeal for donation
and to sell, without regard to this section, an equivalent amount of
wheat and corn, see note set out under section 1431 of this title.
Sale of Commodities for Foreign Currencies
Sale of surplus agricultural commodities for foreign currencies, see
section 1691 et seq., of this title.
Ex. Ord. No. 11336. Delegation of Authority Relating to Emergency
Livestock Feed
Ex. Ord. No. 11336, Mar. 22, 1967, 32 F.R. 4489, provided:
By virtue of the authority vested in me by section 301 of Title 3 of
the United States Code, and as President of the United States, it is
ordered as follows:
Section 1. (a) The Secretary of Agriculture is hereby designated and
empowered to exercise, without the approval, ratification, or other
action of the President, the authority vested in the President by clause
(1) of the fifth sentence of section 407 of the Agricultural Act of
1949, as amended (7 U.S.C. 1427), to the extent prescribed in subsection
(b) of this section.
(b) Whenever the Secretary of Agriculture determines that the
chronic economic distress of the needy members of an Indian tribe is
materially increased by severe drought, flood, hurricane, blizzard, or
other uncontrollable catastrophe affecting any reservation or other land
designated for Indian use which is utilized by members of such tribe for
grazing livestock, he may, under subsection (a) of this section, declare
such reservation or other land to be an acute distress area because of
unemployment or other economic reasons if he finds that the use of farm
commodities or the products thereof made available by the Commodity
Credit Corporation for livestock feed in that area will not displace or
interfere with normal marketing of agricultural commodities.
Sec. 2. Federal assistance in relieving distress, extended as a
result of action by the Secretary of Agriculture under the authority
delegated by section 1 of this order, shall terminate in each instance
upon notice by the Secretary of Agriculture.
Sec. 3. In carrying out the provisions of this order the Secretary
of Agriculture shall maintain liaison with the Secretary of the Interior
and shall consult with the latter as may be appropriate.
Sec. 4. The declaration contained in the letter of the President to
the Secretary of Agriculture, dated February 1, 1965, that reservation
lands in Arizona, Utah and New Mexico, which are grazed in common by
Indian tribes, are an acute distress area shall continue in effect until
January 1, 1968, or until such earlier date as may be fixed by notice of
the Secretary of Agriculture published in the Federal Register.
Lyndon B. Johnson.
Section Referred to in Other Sections
This section is referred to in sections 1427a, 1428, 1444, 1446,
1744 of this title; title 50 App. section 2093.
