§ 1444. — Cotton price support levels.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1444]
TITLE 7--AGRICULTURE
CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
SUBCHAPTER II--BASIC AGRICULTURAL COMMODITIES
Sec. 1444. Cotton price support levels
(a) Basic support levels for 1961 and subsequent years
Notwithstanding the provisions of section 1441 of this title, price
support to cooperators for each crop of upland cotton, beginning with
the 1961 crop, for which producers have not disapproved marketing quotas
shall be at such level not more than 90 per centum of the parity price
therefor nor less than the minimum level prescribed below as the
Secretary determines appropriate after consideration of the factors
specified in section 1421(b) of this title. For the 1961 crop the
minimum level shall be 70 per centum of the parity price therefor, and
for each subsequent crop the minimum level shall be 65 per centum of the
parity price therefor: Provided, That the price support for the 1965
crop shall be a national average support price which reflects 30 cents
per pound for Middling one-inch cotton. Price support in the case of
noncooperators and in case marketing quotas are disapproved shall be as
provided in section 1441(d)(3) and (5) of this title.
(b) Additional support levels for 1964 and 1965
If producers have not disapproved marketing quotas, the Secretary
shall provide additional price support on the 1964 and 1965 crops of
upland cotton to cooperators on whose farms the acreage planted to
upland cotton for harvest does not exceed the farm domestic allotment
established under section 1350 of this title. Such additional support
shall be at a level up to 15 per centum in excess of the basic level of
support established under subsection (a) of this section and shall be
provided on the normal yield of the acreage planted for harvest within
the farm domestic allotment. For purposes of this subsection, an acreage
on the farm which the Secretary finds was not planted to cotton in 1965
because of flood, drought, or other natural disaster shall be deemed by
the Secretary to be an actual acreage of cotton planted on the farm for
harvest, provided such acreage is not subsequently devoted to any price
supported crop for 1965.
(c) Alternative operations for carrying out additional price support;
payment-in-kind certificates: value, marketing assistance,
redemption, and deductions after thirty day period
In order to keep upland cotton to the maximum extent practicable in
the normal channels of trade, any additional price support under
subsection (b) of this section may be carried out through the
simultaneous purchase of cotton at the support price therefor under
subsection (b) of this section and the sale of such cotton at the
support price therefor under subsection (a) of this section or similar
operations, including loans under which the cotton would be redeemable
by payment of the amount for which the cotton would be redeemable if the
loan thereon had been made at the support price for such cotton under
subsection (a) of this section, or payments-in-kind through the issuance
of certificates which the Commodity Credit Corporation shall redeem for
cotton under regulations issued by the Secretary. If such additional
support is provided through the issuance of payment-in-kind
certificates, such certificates shall have a value per pound of cotton
equal to the difference between the level of support established under
subsection (a) of this section and the level of support established
under subsection (b) of this section. The corporation may, under
regulations prescribed by the Secretary, assist the producers and
persons receiving payment-in-kind certificates under this section and
section 1348 of this title, in the marketing of such certificates at
such time and in such manner as the Secretary determines will best
effectuate the purposes of the program authorized by this section and
such section 1348. In the case of any certificate not presented for
redemption within thirty days of the date of its issuance, reasonable
costs of storage and other carrying charges as determined by the
Secretary for the period beginning thirty days after its issuance and
ending with the date of its presentation for redemption shall be
deducted from the value of the certificate.
(d) Price support and diversion payments for 1966 through 1970 crops
(1) Notwithstanding any other provision of this Act, if producers
have not disapproved marketing quotas, price support and diversion
payments shall be made available for the 1966 through 1970 crops of
upland cotton as provided in this subsection.
(2) Price support for each such crop of upland cotton shall be made
available to cooperators through loans at such level, not exceeding a
level which will reflect for Middling one-inch upland cotton at average
location in the United States 90 per centum of the estimated average
world market price for Middling one-inch upland cotton for the marketing
year for such crop, as the Secretary determines will provide orderly
marketing of cotton during the harvest season and will retain an
adequate share of the world market for cotton produced in the United
States taking into consideration the factors specified in section
1421(b) of this title: Provided, That the national average loan rate for
the 1966 crop shall reflect 21 cents per pound for Middling one-inch
upland cotton.
(3) The Secretary also shall provide additional price support for
each such crop through payments in cash or in kind to cooperators at a
rate not less than 9 cents per pound: Provided, That the rate shall be
such that the amount obtained by--
(i) multiplying the rate by the farm domestic acreage allotment
percentage, and
(ii) dividing the product thus obtained by the cooperator
percentage established under section 1428(b) of this title, and
(iii) adding the result thus obtained to the national average
loan rate
shall not be less than 65 per centum or more than 90 per centum of the
parity price for cotton as of the month in which the payment rate
provided for by this paragraph is announced. Such payments shall be made
on the quantity of cotton determined by multiplying the projected farm
yield by the acreage planted to cotton within the farm domestic acreage
allotment: Provided, That any such farm planting not less than 90 per
centum of such domestic acreage allotment shall be deemed to have
planted the entire amount of such allotment. An acreage on a farm in any
such year which the Secretary finds was not planted to cotton because of
drought, flood, or other natural disaster shall be deemed to be planted
to cotton for purposes of payments under this subsection if such acreage
is not subsequently devoted to any other crop for which there are
marketing quotas or voluntary adjustment programs in effect.
(4) The Secretary shall make diversion payments in cash or in kind
in addition to the price support payments authorized in paragraph (3) to
cooperators who reduce their cotton acreage by diverting a portion of
their cotton acreage allotment from the production of cotton to approved
conservation practices to the extent prescribed by the Secretary:
Provided, That no reduction below the domestic acreage allotments
established under section 1350 of this title shall be prescribed:
Provided further, That payment under this paragraph shall be made
available for diverting to conserving uses that part of the acreage
allotment which must be diverted from cotton in order that the producer
may qualify as a cooperator. The rate of payment for acreage required to
be diverted in order to qualify as a cooperator shall not be less than
25 per centum of the parity price for upland cotton as of the month in
which such rate is announced. The rate of payment for additional acreage
diverted shall be such rate as the Secretary determines to be fair and
reasonable, but shall not exceed 40 per centum of such parity price.
Payment at each applicable rate shall be made on the quantity of cotton
determined by multiplying the acreage diverted from the production of
cotton at such rate by the projected farm yield. In addition to the
foregoing payment, if any, payment at the rate applicable for acreage
required to be diverted to qualify as a cooperator shall be made to
producers on small farms as defined in section 1428(b) of this title who
do not exceed their farm acreage allotments on a quantity of cotton
determined by multiplying an acreage equal to 35 per centum of such farm
acreage allotment by the projected farm yield.
(5) The Secretary may make not to exceed 50 per centum of the
payments under this subsection to producers in advance of determination
of performance and the balance of such payments shall be made at such
time as the Secretary may prescribe.
(6) Where the farm operator elects to participate in the diversion
program authorized in this subsection and no acreage is planted to
cotton on the farm, diversion payments shall be made at the rate
established under paragraph (4) for acreage required to be diverted to
qualify as a cooperator on the quantity of cotton determined by
multiplying that part of the farm acreage allotment required to be
diverted to qualify as a cooperator by the projected farm yield, and the
remainder of such allotment may be released under the provisions of
section 1344(m)(2) of this title. The acreage on which payment is made
under this paragraph shall be regarded as planted to cotton for purposes
of establishing future State, county, and farm acreage allotments, and
farm bases.
(7) Payments in kind under this subsection shall be made through the
issuance of certificates which the Commodity Credit Corporation shall
redeem for cotton under regulations issued by the Secretary at a value
per pound equal to not less than the current loan rate therefor. The
Corporation may, under regulations prescribed by the Secretary, assist
the producers in the marketing of such certificates at such times and in
such manner as the Secretary determines will best effectuate the
purposes of the program authorized by this subsection.
(8) Payments under this subsection shall be conditioned on the farm
having an acreage of approved conservation uses equal to the sum of (i)
the reduction in cotton acreage required to qualify for such payments
(hereinafter called ``diverted acreage''), and (ii) the average acreage
of cropland on the farm devoted to designated soil-conserving crops or
practices, including summer fallow and idle land, during a base period
prescribed by the Secretary: Provided, That the Secretary may permit all
or any part of such diverted acreage to be devoted to the production of
guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe,
plantago ovato, and flaxseed, if he determines that such production is
necessary to provide an adequate supply of such commodities, is not
likely to increase the cost of the price support program, and will not
adversely affect farm income, subject to the condition that payment
under paragraph (4) or (6) with respect to diverted acreage devoted to
any such crop shall be at a rate determined by the Secretary to be fair
and reasonable, taking into consideration the use of such acreage for
the production of such crops, but in no event shall the payment exceed
one-half the rate which otherwise would be applicable if such acreage
were devoted to conservation uses.
(9) The acreage regarded as planted to cotton on any farm which
qualifies for payment under this subsection except under paragraph (6)
shall, for purposes of establishing future State, county, and farm
acreage allotments and farm bases, be the farm acreage allotment
established under section 1344 of this title, excluding adjustments
under subsection (m)(2) thereof.
(10) The Secretary shall provide adequate safeguards to protect the
interests of tenants and sharecroppers, including provision for sharing
diversion payments on a fair and equitable basis under this subsection.
The Secretary shall provide for the sharing of price support payments
among producers on the farm on the basis of their respective shares in
the cotton 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.
(11) In any case in which the failure of a producer to comply fully
with the terms and conditions of the programs formulated under this Act
preclude the making of payments under this section, the Secretary may,
nevertheless, make such payments in such amounts as he determines to be
equitable in relation to the seriousness of the default.
(12) Notwithstanding any other provision of this Act, if, as a
result of limitations hereafter enacted with respect to price support
under this subsection, the Secretary is unable to make available to all
cooperators the full amount of price support to which they would
otherwise be entitled under paragraphs (2) and (3) of this subsection
for any crop of upland cotton, (A) price support to cooperators shall be
made available for such crop (if marketing quotas have not been
disapproved) through loans or purchases at such level not less than 65
per centum nor more than 90 per centum of the parity price therefor as
the Secretary determines appropriate; (B) in order to keep upland cotton
to the maximum extent practicable in the normal channels of trade, such
price support may be carried out through the simultaneous purchase of
cotton at the support price therefor and resale at a lower price or
through loans under which the cotton would be redeemable by payment of a
price therefor lower than the amount of the loan thereon; and (C) such
resale or redemption price shall be such as the Secretary determines
will provide orderly marketing of cotton during the harvest season and
will retain an adequate share of the world market for cotton produced in
the United States.
(13) The provisions of section 590h(g) of title 16 (relating to
assignment of payments), shall also apply to payments under this
subsection.
(14) The Commodity Credit Corporation is authorized to utilize its
capital funds and other assets for the purpose of making the payments
authorized in this subsection and to pay administrative expenses
necessary in carrying out this subsection.
(e) Price support, diversion, and cropland set-aside program for crops
beginning with 1971 crop
(1) The Secretary shall upon presentation of warehouse receipts
reflecting accrued storage charges of not more than 60 days make
available for the 1971 through 1977 crops of upland cotton to
cooperators nonrecourse loans for a term of ten months from the first
day of the month in which the loan is made at such level as will reflect
the Middling one-inch upland cotton (micronaire 3.5 through 4.9) at
average location in the United States 90 per centum of the average price
of American cotton in world markets for such cotton for the three-year
period ending July 31 in the year in which the loan level is announced,
except that if the loan rate so calculated is higher than the then
current level of average world prices for American cotton of such
quality, the Secretary is authorized to adjust the current calculated
loan rate for cotton to 90 per centum of the then current average world
price. The average world price for such cotton for such preceding three-
year period shall be determined by the Secretary annually pursuant to a
published regulation which shall specify the procedures and the factors
to be used by the Secretary in making the world price determination. The
loan level for any crop of upland cotton shall be determined and
announced not later than November 1 of the calendar year preceding the
marketing year for which such loan is to be effective. Notwithstanding
the foregoing, if the carryover of upland cotton as of the beginning of
the marketing year for any of the 1972 or 1973 crops exceeds 7.2 million
bales, producers on any farm harvesting cotton of such crop from an
acreage in excess of the base acreage allotment for such farm shall be
entitled to loans and purchases only on an amount of the cotton of such
crop produced on such farm determined by multiplying the yield used in
computing payments for such farm by the base acreage allotment for such
farm.
(2) Payments shall be made for each crop of cotton to the producers
on each farm at a rate equal to the amount by which the higher of--
(1) the average market price received by farmers for upland
cotton during the calendar year which includes the first five months
of the marketing year for such crop, as determined by the Secretary,
or
(2) the loan level determined under paragraph (1) for such crop
is less than the established price of 38 cents per pound in the case of
the 1974 and 1975 crops, 38 cents per pound adjusted to reflect any
change during the calendar year 1975 in the index of prices paid by
farmers for production items, interest, taxes, and wage rates in the
case of the 1976 crop, and the established price for the 1976 crop
adjusted to reflect any change during the calendar year 1976 in such
index in the case of the 1977 crop: Provided, That any increase that
would otherwise be made in the established price to reflect a change in
the index of prices paid by farmers shall be adjusted to reflect any
change in (i) the national average yield per acre of cotton for the
three calendar years preceding the year for which the determination is
made, over (ii) the national average yield per acre of cotton for the
three calendar years preceding the year previous to the one for which
the determination is made. If the Secretary determines that the
producers on a farm are prevented from planting any portion of the
allotment to cotton because of drought, flood, or other natural
disaster, or condition beyond the control of the producer, the rate of
payment for such portion shall be the larger of (A) the foregoing rate,
or (B) one-third of the established price. If the Secretary determines
that, because of such a disaster or condition, the total quantity of
cotton which the producers are able to harvest on any farm is less than
66\2/3\ percent of the farm base acreage allotment times the average
yield established for the farm, the rate of payment for the deficiency
in production below 100 percent shall be the larger of (A) the foregoing
rate, or (B) one-third of the established price. The payment rate with
respect to any producer who (i) is on a small farm (that is, a farm on
which the base acreage allotment is ten acres or less, or on which the
yield used in making payments times the farm base acreage allotment is
five thousand pounds or less, and for which the base acreage allotment
has not been reduced under section 1350(f) of this title, (ii) resides
on such farm, and (iii) derives his principal income from cotton
produced on such farm, shall be increased by 30 per centum; but,
notwithstanding paragraph (3), such increase shall be made only with
respect to his share of cotton actually harvested on such farm within
the quantity specified in paragraph (3).
(3) Such payments shall be made available for a farm on the quantity
of upland cotton determined by multiplying the acreage planted within
the farm base acreage allotment for the farm for the crop by the average
yield established for the farm: Provided, That payments shall be made on
any farm planting not less than 90 per centum of the farm base acreage
allotment on the basis of the entire amount of such allotment. For
purposes of this paragraph, an acreage on the farm which the Secretary
determines was not planted to cotton because of drought, flood, other
natural disaster, or a condition beyond the control of the producer
shall be considered to be an acreage planted to cotton. The average
yield for the farm for any year shall be determined on the basis of the
actual yields per harvested acre for the three preceding years, except
that the 1970 farm projected yield shall be substituted in lieu of the
actual yields for the years 1968 and 1969: Provided, That the actual
yields shall be adjusted by the Secretary for abnormal yields in any
year caused by drought, flood, or other natural disaster: Provided
further, That the average yield established for the farm for any year
shall not be less than the yield used in making payments for the
preceding year if the total cotton production on the farm in such
preceding year is not less than the yield used in making payments for
the farm for such preceding year times the farm base acreage allotment
for such preceding year (for the 1970 crop, the farm domestic
allotment).
(4)(A) The Secretary shall provide for a set aside of cropland if he
determines that the total supply of agricultural commodities will, in
the absence of such a set-aside, likely be excessive taking into account
the need for an adequate carryover to maintain reasonable and stable
supplies and prices and to meet a national emergency. If a set-aside of
cropland is in effect under this paragraph (4), then as a condition of
eligibility for loans and payments on upland cotton the producers on a
farm must set aside and devote to approved conservation uses an acreage
of cropland equal to (i) such percentage of the farm base acreage
allotment for the farm as may be specified by the Secretary (not to
exceed 28 per centum of the farm base acreage allotment), plus, if
required by the Secretary, (ii) the acreage of cropland on the farm
devoted in preceding years to soil conserving uses, as determined by the
Secretary. The Secretary is authorized for the 1974 through 1977 crops
to limit the acreage planted to upland cotton on the farm in excess of
the farm base acreage allotment to a percentage of the farm base acreage
allotment. The Secretary shall permit producers to plant and graze on
set-aside acreage sweet sorghum, and the Secretary may permit, subject
to such terms and conditions as he may prescribe, all or any of the set-
aside acreage to be devoted to hay and grazing or the production of
guar, sesame, safflower, castor beans, mustard seed, crambe, plantago
ovato, flaxseed, triticale, oats, rye, or other commodity, if he
determines that such production is needed to provide an adequate supply,
is not likely to increase the cost of the price-support program, and
will not adversely affect farm income.
(B) To assist in adjusting the acreage of commodities to desirable
goals, the Secretary may make land diversion payments, in addition to
the payments authorized in subsection (e)(2) of this section, to
producers on a farm who, to the extent prescribed by the Secretary,
devote to approved conservation uses an acreage of cropland on the farm
in addition to that required to be so devoted under subsection (e)(4)(A)
of this section. The land diversion payments for a farm shall be at such
rate or rates as the Secretary determines to be fair and reasonable
taking into consideration to the diversion undertaken by the producers
and the productivity of the acreage diverted. The Secretary shall limit
the total acreage to be diverted under agreements in any county or local
community so as not to adversely affect the economy of the county or
local community.
(5) The upland cotton program formulated under this section shall
require the producer to take such measures as the Secretary may deem
appropriate to protect the set-aside acreage and the additional diverted
acreage from erosion, insects, weeds, and rodents. Such acreage may be
devoted to wildlife food plots or wildlife habitat in conformity with
standards established by the Secretary in consultation with wildlife
agencies. The Secretary may in the case of programs for the 1974 through
1977 crops, pay an appropriate share of the cost of practices designed
to carry out the purposes of the foregoing sentences. The Secretary may
provide for an additional payment on such acreage in an amount
determined by the Secretary to be appropriate in relation to the benefit
to the general public if the producer agrees to permit, without other
compensation, access to all or such portion of the farm as the Secretary
may prescribe by the general public, for hunting, trapping, fishing, and
hiking, subject to applicable State and Federal regulations.
(6) If the operator of the farm desires to participate in the
program formulated under this section, he shall file his agreement to do
so no later than such date as the Secretary may prescribe. Loans and
purchases on upland cotton and payments under this section shall be made
available to the producers on such farm only if producers set aside and
devote to approved soil conserving uses an acreage on the farm equal to
the number of acres which the operator agrees to set aside and devote to
approved soil conserving uses, and the agreement shall so provide. The
Secretary may, by mutual agreement with the producer, terminate or
modify any such agreement entered into pursuant to this subsection
(e)(6) if he determines such action necessary because of an emergency
created by drought or other disaster or in order to alleviate a shortage
in the supply of agricultural commodities.
(7) The Secretary shall provide adequate safeguards to protect the
interests of tenants and sharecroppers, including provision for sharing
on a fair and equitable basis, in payments under this section.
(8) In any case in which the failure of a producer to comply fully
with the terms and conditions of the program formulated under this
section precludes the making of loans, purchases, and payments, the
Secretary may, nevertheless, make such loans, purchases, and payments in
such amounts as he determines to be equitable in relation to the
seriousness of the default.
(9) The Secretary is authorized to issue such regulations as he
determines necessary to carry out the provisions of this subchapter.
(10) The Secretary shall carry out the program authorized by this
section through the Commodity Credit Corporation.
(11) The provisions of section 590h(g) of title 16 (relating to
assignment of payments), shall apply to payments under this subsection.
(f), (g) Omitted
(h) Program for extra long staple cotton beginning with 1984 crop
(1) For purposes of this subsection, extra long staple cotton means
cotton which is produced from pure strain varieties of the Barbadense
species or any hybrid thereof, or other similar types of extra long
staple cotton, designated by the Secretary, having characteristics
needed for various end uses for which American upland cotton is not
suitable and grown in irrigated cotton-growing regions of the United
States designated by the Secretary or other areas designated by the
Secretary is suitable for the production of such varieties or types and
which is ginned on a roller-type gin or, if authorized by the Secretary,
ginned on another type gin for experimental purposes.
(2) The Secretary shall, upon presentation of warehouse receipts
reflecting accrued storage charges of not more than sixty days, make
available to producers nonrecourse loans for a term of ten months from
the first day of the month in which the loan is made at a level which is
not less than 85 percent of the simple average price received by
producers of extra long staple cotton, as determined by the Secretary,
during 3 years of the 5-year period ending July 31 in the year in which
the loan level is announced, excluding the year in which the average
price was the highest and the year in which the average price was the
lowest in such period..\1\ If authorized by the Secretary, nonrecourse
loans provided for in this subsection may, upon request of the producer
during the tenth month of the loan period for the cotton, be made
available for an additional term of eight months. The loan level for any
crop of extra long staple cotton shall be determined and announced by
the Secretary not later than December 1 of the calendar year preceding
the marketing year for which such loan is to be effective and such level
shall not thereafter be changed.
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(3)(A) In addition, payments shall be made for each crop of extra
long staple cotton to producers on each farm at a rate equal to the
amount by which the higher of--
(i) the average market price received by farmers for extra long
staple cotton during the first eight months of the marketing year
for such crop, as determined by the Secretary, or
(ii) the loan level determined under paragraph (2) of this
subsection for such crop,
is less than the established price per pound times, in each case, the
farm program acreage for extra long staple cotton (determined in
accordance with paragraph (5)(A), but in no event on a greater acreage
than the acreage actually planted to extra long staple cotton for
harvest), multiplied by the farm program payment yield for extra long
staple cotton (determined in accordance with paragraph (4)).
(B) The established price for each crop of extra long staple cotton
shall be 120 per centum of the loan level determined for such crop under
paragraph (2) of this subsection.
(C) If the Secretary establishes an acreage limitation program for a
crop of extra long staple cotton in accordance with paragraph (5)(A) and
determines that deficiency payments will likely be made for such crop of
extra long staple cotton under subparagraph (A) of this paragraph, the
Secretary may make available advance deficiency payments for such crop
to producers who agree to participate in the acreage limitation program.
Such advance payments shall be made available to producers as soon as
practicable after the producer files a notice of intention to
participate in such acreage limitation program and in such amount as the
Secretary determines appropriate to encourage adequate participation in
such program, except that such amount shall not exceed an amount
determined by multiplying (i) the estimated farm program acreage for the
crop, by (ii) the farm program payment yield for the crop, by (iii) 50
per centum of the projected payment rate, as determined by the
Secretary. In any case in which the deficiency payment payable to a
producer for a crop, as finally determined by the Secretary under
subparagraph (A) of this paragraph, is less than the amount paid to the
producer as an advance deficiency payment under this paragraph, the
producer shall refund an amount equal to the difference between the
amount advanced and the amount finally determined by the Secretary to be
payable to the producer. If the Secretary determines that no deficiency
payments are due producers on a crop, the producer who received advanced
payments on such crop shall refund such payments. If a producer fails to
comply with the requirements under the acreage limitation program after
obtaining an advance deficiency payment under this paragraph, the
producer shall immediately repay the amount of the advance, plus
interest thereon in such amount as the Secretary shall prescribe.
(4) The farm program payment yield for each crop of extra long
staple cotton shall be determined on the basis of the actual yields per
harvested acre on the farm for the preceding three years, except that
the actual yields shall be adjusted by the Secretary for abnormal yields
in any year caused by drought, flood, or other natural disaster, or
other condition beyond the control of the producers. In case farm yield
data for one or more years are unavailable or there was no production,
the Secretary shall provide for appraisals to be made on the basis of
actual yields and program payment yields for similar farms in the area
for which data are available. Notwithstanding the foregoing provisions
of this paragraph in the determination of yields, the Secretary shall
take into account the actual yields proved by the producer, and neither
such yields nor the farm program payment yield established on the basis
of such yields shall be reduced under other provisions of this
paragraph. If the Secretary determines it necessary, the Secretary may
establish national, State, or county program payment yields on the basis
of historical yields, as adjusted by the Secretary to correct for
abnormal factors affecting such yields in the historical period, or, if
such data are not available, on the Secretary's estimate of actual
yields for the crop year involved. If national, State, or county program
payment yields are established, the farm program payment yields shall
balance to the national, State, or county program payment yields.
(5)(A)(i) Notwithstanding any other provision of this subsection,
the Secretary may establish a limitation on the acreage planted to extra
long staple cotton if the Secretary determines that the total supply of
extra long staple cotton, in the absence of such limitation, will be
excessive taking into account the need for an adequate carryover to
maintain reasonable and stable prices and to meet a national emergency.
Such limitation shall be achieved by applying a uniform percentage
reduction (including a zero percentage reduction) to the acreage base
for each extra long staple cotton-producing farm. Producers who
knowingly produce extra long staple cotton in excess of the permitted
acreage for the farm shall be ineligible for extra long staple cotton
loans and payments with respect to that farm. The acreage base for any
farm for the purpose of determining any reduction required to be made
for any year as a result of a limitation under this subparagraph shall
be the average acreage planted on the farm to extra long staple cotton
for harvest in the three crop years immediately preceding the year prior
to the year for which the determination is made. For the purpose of the
preceding sentence, acreage planted to extra long staple cotton for
harvest shall include any acreage which the producers were prevented
from planting to extra long staple cotton or other nonconserving crops
in lieu of extra long staple cotton because of drought, flood, or other
natural disaster or other condition beyond the control of the producers.
The Secretary may make adjustments to reflect established crop-rotation
practices and to reflect such other factors as the Secretary determines
should be considered in determining a fair and equitable base. There is
hereby established for the 1984, 1985, and 1986 crops an acreage base
reserve equal to 5 per centum of the total of the farm acreage bases
established for the crop under the foregoing provisions of this
subparagraph. Such reserve shall be in addition to the total of the farm
acreage bases and shall be used by the county committees, in accordance
with regulations of the Secretary, for making adjustments of farm
acreage bases to correct inequities and prevent hardship, and for
establishing bases for farms on which no extra long staple cotton was
planted during the preceding four years. A number of acres on the farm
determined by dividing (i) the product obtained by multiplying the
number of acres required to be withdrawn from the production of extra
long staple cotton times the number of acres actually planted to such
commodity, by (ii) the number of acres authorized to be planted to such
commodity under the limitation established by the Secretary, shall be
devoted to conservation uses, in accordance with regulations issued by
the Secretary, which will assure protection of such acreage from weeds
and wind and water erosion. The number of acres so determined is
hereafter in this subsection referred to as ``reduced acreage''. The
Secretary may permit, subject to such terms and conditions as the
Secretary may prescribe, all or any part of the reduced acreage to be
devoted to sweet sorghum, hay and grazing, or the production of guar,
sesame, safflower, sunflower, castor beans, mustard seed, crambe,
plantago ovato, flaxseed, triticale, rye, or other commodity, if the
Secretary determines that such production is needed to provide an
adequate supply of such commodities, is not likely to increase the cost
of the price support program, and will not affect farm income adversely.
The individual farm program acreage shall be the actual acreage planted
on the farm to extra long staple cotton for harvest within the permitted
extra long staple cotton acreage for the farm as established under this
paragraph.
(ii) Notwithstanding any other provision of this Act, the Secretary
shall ensure, under such terms and conditions as may be prescribed by
the Secretary, that the total of the crop acreage bases established on a
farm which is enrolled in a production adjustment program for any
commodity shall not be increased as a result of the application of the
provisions set forth in paragraph (13)(C), as extended for the 1989 and
1990 crop.
(B) The Secretary may make land diversion payments to producers of
extra long staple cotton, whether or not an acreage limitation program
for extra long staple cotton is in effect, if the Secretary determines
that such land diversion payments are necessary to assist in adjusting
the total national acreage of extra long staple cotton to desirable
goals. Such land diversion payments shall be made to producers who, to
the extent prescribed by the Secretary, devote to approved conservation
uses an acreage of cropland on the farm in accordance with land
diversion contracts entered into by the Secretary with such producers.
The amounts payable to producers under land diversion contracts may be
determined through the submission of bids for such contracts by
producers in such manner as the Secretary may prescribe or through such
other means as the Secretary determines appropriate. In determining the
acceptability of contract offers, the Secretary shall take into
consideration the extent of the diversion to be undertaken by the
producers and the productivity of the acreage diverted. The Secretary
shall limit the total acreage to be diverted under agreements in any
county or local community so as not to affect adversely the economy of
the county or local community.
(C) The reduced acreage and the diverted acreage may be devoted to
wildlife food plots or wildlife habitat in conformity with standards
established by the Secretary in consultation with wildlife agencies. The
Secretary may pay an appropriate share of the cost of practices designed
to carry out the purpose of the foregoing sentence. The Secretary may
provide for an additional payment on such acreage in an amount
determined by the Secretary to be appropriate in relation to the benefit
to the general public if the producer agrees to permit, without other
compensation, access to all or such portion of the farm, as the
Secretary may prescribe, by the general public, for hunting, trapping,
fishing, and hiking, subject to applicable State and Federal
regulations.
(6) An operator of a farm desiring to participate in the program
conducted under paragraph (5) shall execute an agreement with the
Secretary providing for such participation not later than such date as
the Secretary may prescribe. The Secretary may, by mutual agreement with
the producers on the farm, terminate or modify any such agreement if the
Secretary determines such action necessary because of an emergency
created by drought or other disaster or to prevent or alleviate a
shortage in the supply of agricultural commodities.
(7) The Secretary shall provide for the sharing of payments made
under this subsection for any farm among the producers on the farm on a
fair and equitable basis.
(8) The Secretary shall provide adequate safeguards to protect the
interests of tenants and sharecroppers.
(9) If the failure of a producer to comply fully with the terms and
conditions of the program formulated under this subsection precludes the
making of loans and payments, the Secretary may, nevertheless, make such
loans and payments in such amounts as the Secretary determines to be
equitable in relation to the seriousness of the failure. The Secretary
may authorize the county and State committees established under section
590h(b) of title 16 to waive or modify deadlines and other program
requirements in cases in which lateness or failure to meet such other
requirements does not affect adversely the operation of the program.
(10) The Secretary may issue such regulations as the Secretary
determines necessary to carry out the provisions of this subsection.
(11) The Secretary shall carry out the program authorized by this
subsection through the Commodity Credit Corporation.
(12) The provisions of section 590h(g) of title 16 (relating to
assignment of payments) shall apply to payments made under this
subsection.
(13)(A) Compliance on a farm with the terms and conditions of any
other commodity program or compliance with crop acreage base
requirements for any other commodity may not be required as a condition
of eligibility for loans or payments under this section.
(B) The Secretary may not require producers on a farm, as a
condition of eligibility for loans or payments under this section for
the farm, to comply with the terms and conditions of the extra long
staple cotton program with respect to any other farm operated by the
producers.
(14) In order to encourage and assist producers in the orderly
ginning and marketing of their extra long staple cotton production, the
Secretary shall make recourse loans available to such producers on seed
cotton in accordance with authority vested in the Secretary under the
Commodity Credit Corporation Charter Act [15 U.S.C. 714 et seq.].
(15) References made in sections 1422, 1423, 1426,\2\ 1427, and 1431
of this title to the terms ``support price'', ``level of support'', and
``level of price support'' shall be considered to apply as well to the
level of loans for extra long staple cotton under this subsection; and
references to the terms ``price support'', ``price support operations'',
and ``price support program'' in such sections and in section 1421(a) of
this title shall be considered as applying as well to the loan
operations for extra long staple cotton under this subsection.
---------------------------------------------------------------------------
\2\ See References in Text note below.
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(16) Notwithstanding any other provision of law, this subsection
shall not be applicable to the 1996 and subsequent crops of extra long
staple cotton.
(Oct. 31, 1949, ch. 792, title I, Sec. 103, as added Pub. L. 85-835,
title I, Sec. 102, Aug. 28, 1958, 72 Stat. 989; amended Pub. L. 88-297,
title I, Sec. 103(b), Apr. 11, 1964, 78 Stat. 174; Pub. L. 89-112,
Sec. 2, Aug. 6, 1965, 79 Stat. 447; Pub. L. 89-321, title IV,
Sec. 402(a), Nov. 3, 1965, 79 Stat. 1194; Pub. L. 89-451, Sec. 1, June
17, 1966, 80 Stat. 202; Pub. L. 90-559, Sec. 1(2), Oct. 11, 1968, 82
Stat. 996; Pub. L. 91-524, title VI, Sec. 602, Nov. 30, 1970, 84 Stat.
1374; Pub. L. 93-86, Sec. 1(20), Aug. 10, 1973, 87 Stat. 233; Pub. L.
93-125, Sec. 1(b), Oct. 18, 1973, 87 Stat. 450; Pub. L. 95-113, title
VI, Sec. 602, Sept. 29, 1977, 91 Stat. 934; Pub. L. 95-279, title I,
Sec. 102, May 15, 1978, 92 Stat. 240; Pub. L. 95-402, Sept. 30, 1978, 92
Stat. 862; Pub. L. 96-213, Sec. 4(b), Mar. 18, 1980, 94 Stat. 119; Pub.
L. 96-365, title II, Sec. 201(b), Sept. 26, 1980, 94 Stat. 1320; Pub. L.
97-98, title V, Sec. 502, Dec. 22, 1981, 95 Stat. 1234; Pub. L. 97-446,
title I, Sec. 155, Jan. 12, 1983, 96 Stat. 2345; Pub. L. 98-88, Sec. 4,
Aug. 26, 1983, 97 Stat. 494; Pub. L. 98-258, title III, Secs. 301, 302,
Apr. 10, 1984, 98 Stat. 133; Pub. L. 99-114, Sec. 3, Oct. 1, 1985, 99
Stat. 488; Pub. L. 99-198, title V, Sec. 507, Dec. 23, 1985, 99 Stat.
1419; Pub. L. 99-500, Sec. 101(a) [title VI, Sec. 644], Oct. 18, 1986,
100 Stat. 1783, 1783-36, and Pub. L. 99-591, Sec. 101(a) [title VI,
Sec. 644], Oct. 30, 1986, 100 Stat. 3341, 3341-36; Pub. L. 99-641, title
II, Sec. 201, Nov. 10, 1986, 100 Stat. 3562; Pub. L. 100-203, title I,
Sec. 1101(d), Dec. 22, 1987, 101 Stat. 1330-2; Pub. L. 100-331, June 14,
1988, 102 Stat. 602; Pub. L. 100-418, title I, Sec. 1214(w), Aug. 23,
1988, 102 Stat. 1163; Pub. L. 101-624, title V, Sec. 506, Nov. 28, 1990,
104 Stat. 3440.)
References in Text
This Act, referred to in subsecs. (d)(1), (11), (12) and
(h)(5)(A)(ii), 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.
The Commodity Credit Corporation Charter Act, referred to in subsec.
(h)(14), is act June 29, 1948, ch. 704, 62 Stat. 1070, as amended, which
is classified generally to subchapter II (Sec. 714 et seq.) of chapter
15 of Title 15, Commerce and Trade. For complete classification of this
Act to the Code, see Short Title note set out under section 714 of Title
15 and Tables.
Section 1426 of this title, referred to in subsec. (h)(15), was
repealed by Pub. L. 104-127, title I, Sec. 171(b)(2)(I), Apr. 4, 1996,
110 Stat. 938.
Codification
Pub. L. 99-591 is a corrected version of Pub. L. 99-500.
Amendments
1990--Subsec. (h)(3)(A). Pub. L. 101-624, Sec. 506(b)(1),
substituted ``paragraph (5)(A)'' for ``paragraph (6) or paragraph (8)(A)
of this subsection'' and ``paragraph (4)'' for ``paragraph (7) of this
subsection''.
Subsec. (h)(3)(C). Pub. L. 101-624, Sec. 506(b)(2), substituted
``paragraph (5)(A)'' for ``paragraph (8)(A) of this subsection''.
Subsec. (h)(4). Pub. L. 101-624, Sec. 506(a)(1), (2), redesignated
par. (7) as (4) and struck out former par. (4) which related to
establishment of a national program acreage for extra long staple cotton
by Secretary.
Subsec. (h)(5). Pub. L. 101-624, Sec. 506(a)(1)-(3), redesignated
par. (8) as (5), inserted ``(including a zero percentage reduction)''
after ``reduction'' in subpar. (A)(i), and struck out former par. (5)
which required Secretary to determine a program allocation factor, not
to exceed 100 per centum for each crop of extra long staple cotton.
Pub. L. 101-624, Sec. 506(b)(3), struck out before last sentence in
subpar. (A)(i) the following: ``If an acreage limitation program is
announced under this paragraph for a crop of extra long staple cotton,
paragraphs (4), (5), and (6) of this subsection shall not be applicable
to such crop, including any prior announcement which may have been made
under such paragraphs with respect to such crop.''
Pub. L. 101-624, Sec. 506(b)(4), substituted ``paragraph (13)(C)''
for ``paragraph (16)(C)'' in subpar. (A)(ii).
Subsec. (h)(6). Pub. L. 101-624, Sec. 506(b)(5), substituted
``paragraph (5)'' for ``paragraph (8) of this subsection''.
Pub. L. 101-624, Sec. 506(a)(1), (2), redesignated par. (9) as (6)
and struck out former par. (6) which provided a formula for determining
individual farm program acreage for each crop of extra long staple
cotton by multiplying allocation factor by acreage of extra long staple
cotton planted for harvest on each farm for which individual farm
program acreages are required to be determined.
Subsec. (h)(7) to (12). Pub. L. 101-624, Sec. 506(a)(2),
redesignated pars. (10) to (15) as (7) to (12), respectively. Former
pars. (7) to (9) redesignated (4) to (6), respectively.
Subsec. (h)(13). Pub. L. 101-624, Sec. 506(a)(2), (4), redesignated
par. (16) as (13), struck out par. (13) as so redesignated, and added
new par. (13). Former par. (13) redesignated (10). Prior to being struck
out, par. (13) read as follows:
``(A) Notwithstanding any other provision of law, except as provided
in subparagraph (B), compliance on a farm with the terms and conditions
of any other commodity program may not be required as a condition of
eligibility for loans or payments under this subsection.
``(B) In the case of each of the 1989 and 1990 crops of extra long
staple cotton, the Secretary may require that, as a condition of
eligibility of producers for loans or payments under this subsection,
the acreage planted for harvest on the farm to any other commodity for
which an acreage limitation program is in effect shall not exceed the
crop acreage base established for the farm for that commodity.
``(C) Notwithstanding any other provision of law, in the case of
each of the 1987 through 1990 crops of extra long staple cotton,
compliance with the terms and conditions of the program authorized by
this subsection may not be required as a condition of eligibility for
loans, purchases, or payments under any other commodity program.''
Subsec. (h)(14), (15). Pub. L. 101-624, Sec. 506(a)(2), redesignated
pars. (17) and (18) as (14) and (15), respectively. Former pars. (14)
and (15) redesignated (11) and (12), respectively.
Subsec. (h)(16). Pub. L. 101-624, Sec. 506(a)(2), (5), redesignated
par. (19) as (16) and substituted ``1996'' for ``1991''. Former par.
(16) redesignated (13).
Subsec. (h)(17) to (19). Pub. L. 101-624, Sec. 506(a)(2),
redesignated pars. (17) to (19) as (14) to (16), respectively.
1988--Subsec. (f)(3). Pub. L. 100-418 substituted ``subheadings
9904.30.10 through 9904.30.30 of chapter 99 of the Harmonized Tariff
Schedule of the United States'' for ``items 955.01 through 955.03 of the
Appendix to the Tariff Schedules of the United States''.
Subsec. (h)(8)(A). Pub. L. 100-331, Sec. 2, designated existing
provisions as cl. (i) and added cl. (ii).
Subsec. (h)(16)(C). Pub. L. 100-331, Sec. 1, substituted ``through
1990'' for ``and 1988''.
1987--Subsec. (h)(3)(B). Pub. L. 100-203 temporarily (see Effective
and Termination Dates of 1987 Amendment note below) substituted ``Except
as provided in clause (ii), the'' for ``The'' and added cl. (ii) which
read as follows: ``In the case of each of the 1988 and 1989 crops of
extra long staple cotton, the established price for each such crop shall
be 118.3 percent of the loan level determined for such crop under
paragraph (2).''
1986--Subsec. (h)(16). Pub. L. 99-500, Pub. L. 99-591, and Pub. L.
99-641, in generally amending par. (16) identically, designated existing
provisions as subpar. (A), inserted ``except as provided in subparagraph
(B),'' and added subpars. (B) and (C).
1985--Subsec. (h)(2). Pub. L. 99-198, Sec. 507(1), in first sentence
substituted ``85 percent or the simple average price received by
producers of extra long staple cotton, as determined by the Secretary,
during 3 years of the 5-year period ending July 31 in the year in which
the loan level is announced, excluding the year in which the average
price was the highest and the year in which the average price was the
lowest in such period.'' for ``50 per centum in excess of the loan level
established for each crop of Strict Low Middling one and one-sixteenth
inch upland cotton (micronaire 3.5 through 4.9) at average location in
the United States'', and, in last sentence substituted ``December 1''
for ``November 1'' and struck out ``, or within 10 days after the loan
level for the related crop of upland cotton is announced, whichever is
later,''.
Pub. L. 99-114, Sec. 3(1), inserted ``, or within 10 days after the
loan level for the related crop of upland cotton is announced, whichever
is later,''.
Subsec. (h)(4). Pub. L. 99-114, Sec. 3(2), inserted ``and announce''
after ``The Secretary shall establish'' and struck out sentence which
had provided that national program acreage for extra long staple cotton
had to be announced by the Secretary not later than November 1 of the
calendar year preceding the year for which such acreage was established.
Subsec. (h)(19). Pub. L. 99-198, Sec. 507(2), added par. (19).
1984--Subsec. (g)(3)(B). Pub. L. 98-258, Sec. 301, substituted ``and
$0.81 per pound for the 1984 and 1985 crops'' for ``$0.81 per pound for
the 1984 crop, and $0.86 per pound for the 1985 crop''.
Subsec. (g)(9)(A). Pub. L. 98-258, Sec. 302(1), inserted ``except as
provided in the second and third sentences of this subparagraph,'' after
``Notwithstanding any other provision of this subsection,''.
Pub. L. 98-258, Sec. 302(2), inserted sentences providing that for
the 1985 crop of upland cotton, if the Secretary estimates that the
quantity of upland cotton on hand in the United States on July 31, 1985
(not including any quantity of upland cotton produced in the United
States during calendar year 1985), will exceed three million seven
hundred thousand bales, the Secretary (i) shall provide for a land
division [diversion] program as described under subparagraph (B) under
which the acreage planted to upland cotton for harvest on the farm would
be limited to the acreage base for the farm reduced by not less than 5
per centum and (ii) may provide for an acreage limitation program as
described under this subparagraph under which the acreage planted to
upland cotton for harvest on the farm would be limited to the acreage
base for the farm reduced by not more than 20 per centum in addition to
the reduction required under clause (i), that if the Secretary
implements a combined acreage limitation program and land division
[diversion] program, any reduction required by the Secretary in excess
of 25 per centum of the acreage base for the farm shall be made under
the land diversion program, and that, as a condition of eligibility for
loans, purchases, and payments on the 1985 crop of upland cotton, if the
Secretary implements a land diversion program or a combined acreage
limitation and land diversion program, the producers on a farm must
comply with the terms and conditions of such program.
Subsec. (g)(9)(B). Pub. L. 98-258, Sec. 302(3), inserted sentences
providing that if the Secretary implements a land diversion program for
the 1985 crop of upland cotton under the provisions of subparagraph (A),
the Secretary shall make crop retirement and conservation payments to
any producer of the 1985 crop of upland cotton whose acreage planted to
upland cotton for harvest on the farm is reduced so that it does not
exceed the upland cotton acreage base for the farm less an amount
equivalent to the percentage of the acreage base specified by the
Secretary, but not less than 5 per centum, in addition to the reduction
required under the acreage limitation program under subparagraph (A), if
any, and who devotes to approved conservation uses an acreage of
cropland equivalent to the reduction required from the upland cotton
acreage base under this subparagraph, that such payments shall be made
in an amount computed by multiplying (i) the diversion payment rate, by
(ii) the farm program payment yield for the crop, by (iii) the acreage
diverted under this subparagraph, that the diversion payment rate shall
be established by the Secretary at not less than $0.275 per pound:
Provided, That if the Secretary estimates that the quantity of upland
cotton on hand in the United States on July 31, 1985 (not including any
quantity of upland cotton produced in the United States during calendar
year 1985), will exceed (I) four million one hundred thousand bales,
such rate shall be established by the Secretary at not less than $0.30
per pound, and (II) four million seven hundred thousand bales such rate
shall be established by the Secretary at not less than $0.35 per pound,
that the Secretary shall make not less than 50 per centum of any
payments under this subparagraph to producers of the 1985 crop as soon
as practicable after a producer enters into a land diversion contract
with the Secretary and in advance of any determination of performance,
and that if a producer fails to comply with a land diversion contract
after obtaining an advance payment under this subparagraph, the producer
shall repay the advance immediately and, in accordance with regulations
issued by the Secretary, pay interest on the advance.
1983--Subsec. (h). Pub. L. 98-88 added subsec. (h).
Subsec. (f)(3). Pub. L. 97-446 temporarily substituted provision
relating to the special quota status of Tariff Schedule items 955.01 and
955.03 before a special quota established under this subsection is
filled and the cotton in question is duty free, for provision that,
notwithstanding any other provision of law, the foregoing provisions of
this subsection with respect to extension of the loan period and to
proclamation of the special quota was to become effective Oct. 1, 1977,
even though the cotton might have been of a crop prior to the 1978 crop.
See Effective and Termination Dates of 1983 Amendment note below.
1981--Subsec. (g). Pub. L. 97-98 temporarily added subsec. (g). See
Effective and Termination Dates of 1981 Amendment note below.
1980--Subsec. (f)(5)(A). Pub. L. 96-365, Sec. 201(b)(1), substituted
``Except as otherwise provided in subparagraph (C) of this paragraph,
effective with respect to the 1978 through 1981 crops of upland cotton''
for ``Effective only with respect to the 1978, 1979, and 1980 crops of
upland cotton''.
Pub. L. 96-213, Sec. 4(b)(1), substituted ``1978, 1979, and 1980
crops of upland cotton'' for ``1978 and 1979 crops of upland cotton''.
Subsec. (f)(5)(B). Pub. L. 96-365, Sec. 201(b)(2), substituted
``Except as otherwise provided in subparagraph (C) of this paragraph,
effective with respect to the 1978 through 1981 crops of upland cotton''
for ``Effective only with respect to the 1978, 1979, and 1980 crops of
upland cotton''.
Pub. L. 96-213, Sec. 4(b)(2), substituted ``1978, 1979, and 1980
crops of upland cotton'' for ``1978 and 1979 crops of upland cotton''.
Subsec. (f)(5)(C). Pub. L. 96-365, Sec. 201(b)(3), added subpar.
(C).
1978--Subsec. (f)(1). Pub. L. 95-402 purported to strike out the
fourth sentence of subsec. (f)(1). The enacting clause, however, stated
that Pub. L. 95-402 was enacted to amend subsec. (f)(1) ``. . . to
ensure that the interest rates on price support loans for upland cotton
are not less favorable to producers than the interest rates for such
loans on other commodities''. Accordingly, the third sentence of subsec.
(f)(1) was struck out as the probable intent of Congress because it
related to interest rates while the fourth sentence related to extension
of the loan period and establishment of a special limited global import
quota.
Pub. L. 95-279 temporarily substituted ``during three years of the
five-year period ending July 31'' for ``during the four-year period
ending July 31'' and inserted ``excluding the year in which the average
price was the highest and the year in which the average price was the
lowest in such period'' in cl. (i), substituted ``for the fifteen-week
period beginning July 1'' for ``for the first two full weeks of
October'' in cl. (ii), and inserted proviso relating to the minimum loan
level and the power of the Secretary to raise the loan level as he may
deem appropriate when the average Northern European price is less than
the average United States spot market price. See Effective and
Termination Dates of 1978 Amendment note below.
1977--Subsec. (f). Pub. L. 95-113 temporarily added subsec. (f). See
Effective and Termination Dates of 1977 Amendment note below.
1973--Subsec. (e)(1). Pub. L. 93-86, Sec. 1(20)(A), (B), substituted
``1971 through 1977 crops of upland cotton'' for ``1971, 1972, and 1973
crops of upland cotton'', ``three-year period'' for ``two-year period''
in two places, ``except that if the loan rate so calculated is higher
than the then current level of average world prices for American cotton
of such quality, the Secretary is authorized to adjust the current
calculated loan rate for cotton to 90 per centum of the then current
average world price'' for ``except that to prevent the establishment of
such a loan level as would adversely affect the competitive position of
United States upland cotton, following one or more years of excessively
high prices the Secretary shall make such adjustments as are necessary
to keep United States upland cotton competitive and to retain an
adequate share of the world market for such cotton'', ``average price of
American cotton in world markets'' for ``acreage world price'', and
``any of the 1972 through 1977 crops'' for ``the 1972 or 1973 crop''.
Subsec. (e)(2). Pub. L. 93-86, Sec. 1(20)(C), substituted provisions
setting out the formula for determining payments for each crop of cotton
to the producers on each farm using, as elements of such formula, the
average market price received by farmers for upland cotton during the
calendar year which includes the first five months of the marketing year
for such crop, as determined by the Secretary, the loan level determined
under paragraph (1) for such crop, an established price of 38 cents per
pound in the case of the 1974 and 1975 crops, adjusted prices in the
case of the 1976 and 1977 crops, adjustment of increases to reflect
changes in the national average yield per acre of cotton for the three
calendar years preceding the year for which the determination is made
over the national average yield per acre of cotton for the three
calendar years preceding the year previous to the one for which the
determination is made, and covering prevention of planting due to
natural disasters and conditions for provisions authorizing payments by
the Secretary to cooperators on the 1971, 1972, and 1973 crops of upland
cotton, and struck out provisions directing preliminary payments to
producers as soon as practicable after July 1 of the year in which the
crop is harvested at a rate equal to 15 cents per pound.
Pub. L. 93-125 substituted ``prevented from planting any portion''
for ``prevented from planting, any portion''.
Subsec. (e)(4)(A). Pub. L. 93-86, Sec. 1(20)(D)-(F), inserted ``, if
required by the Secretary,'' before ``(ii) the acreage of cropland on
the farm devoted in preceding years to soil conserving uses, as
determined by the Secretary'', substituted ``The Secretary is authorized
for the 1974 through 1977 crops to limit the acreage planted to upland
cotton on the farm in excess of the farm base acreage allotment to a
percentage of the farm base acreage allotment'' for ``If the Secretary
determines prior to the planting season for such crop that the carryover
of upland cotton as of the beginning of the marketing year for the 1972
or 1973 crop will exceed 7.2 million bales, the Secretary is authorized
for such crop to limit the acreage planted to upland cotton on the farm
in excess of the farm base acreage allotment to such percentage of the
farm base acreage allotment as he determines necessary to reduce the
total supply to a reasonable level'', deleted provision prohibiting
grazing during any of the five principal months of the normal growing
season as determined by the county committee established pursuant to
section 590h(b) of Title 16, and inserted provisions authorizing the
raising of hay on set-aside acreage and the production of triticale,
oats, and rye.
Subsec. (e)(5). Pub. L. 93-86, Sec. 1(20)(G), authorized Secretary
in case of programs for 1974 through 1977 crops to pay an appropriate
share of cost of practices designed to protect set-aside acreage from
erosion, insects, weeds, and rodents and to provide wildlife food plots
or wildlife habitat.
1970--Subsec. (e). Pub. L. 91-524 added subsec. (e).
1968--Subsec. (d)(1). Pub. L. 90-559 provided for a one year
extension, substituting ``1966 through 1970'' for ``1966, 1967, 1968,
and 1969''.
1966--Subsec. (d)(3). Pub. L. 89-451 substituted ``crop for which
there are marketing quotas or voluntary adjustment programs in effect''
for ``income producing crop in such year'' in last sentence.
1965--Subsec. (b). Pub. L. 89-112 provided that the Secretary shall
deem an acreage on a farm which he finds was not planted to cotton in
1965 because of flood, drought, or other natural disaster to be an
actual acreage of cotton planted on the farm for harvest when that
acreage was not subsequently devoted to any price support crop in 1965.
Subsec. (d). Pub. L. 89-321 added subsec. (d).
1964--Subsec. (a). Pub. L. 88-297, Sec. 103(b)(1), (2), designated
existing provisions as subsec. (a) and provided that the price support
for the 1964 cotton crop shall be a national average support price which
reflects 30 cents per pound for Middling one-inch cotton.
Subsecs. (b), (c). Pub. L. 88-297, Sec. 103(b)(3), added subsecs.
(b) and (c).
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 Date of 1988 Amendment
Amendment by Pub. L. 100-418 effective Jan. 1, 1989, and applicable
with respect to articles entered on or after such date, see section
1217(b)(1) of Pub. L. 100-418, set out as a note under section 3001 of
Title 19, Customs Duties.
Effective and Termination Dates of 1987 Amendment
Section 1101(d) of Pub. L. 100-203 provided that the amendment made
by that section is effective only for 1988 and 1989 crops of extra long
staple cotton.
Effective and Termination Dates of 1983 Amendments
Section 4 of Pub. L. 98-88 provided that the amendment made by that
section is effective beginning with 1984 crop of extra long staple
cotton.
Section 155 of Pub. L. 97-446 provided that the amendment made by
that section is effective for 1982 through 1985 crops of upland cotton.
Effective and Termination Dates of 1981 Amendment
Section 502 of Pub. L. 97-98 provided that the amendment made by
that section is effective only for 1982 through 1985 crops of upland
cotton.
Effective and Termination Dates of 1978 Amendment
Section 102 of Pub. L. 95-279 provided that the amendment made by
that section is effective only with respect to 1978 through 1981 crops
of upland cotton.
Amendment by Pub. L. 95-279 effective Oct. 1, 1978, and
applicability to elections by producers receiving loans and payments
prior to such date, see section 103 of Pub. L. 95-279, set out as a note
under section 1309 of this title.
Effective and Termination Dates of 1977 Amendment
Section 602 of Pub. L. 95-113 provided that the amendment made by
that section is effective only with respect to 1978 through 1981 crops
of upland cotton, except as otherwise provided therein.
Effective Date of 1973 Amendment
Section 1(20)(C) of Pub. L. 93-86 provided that the amendment made
by that section is effective beginning with 1974 crop.
Section 1(20)(D) of Pub. L. 93-86 provided that the amendment made
by that section, authorizing Secretary for 1974 through 1977 crops to
limit acreage planted in upland cotton on farm in excess of farm base
acreage allotment to a percentage of farm base acreage allotment, is
effective beginning with 1974 crop.
Effective Date of 1970 Amendment
Section 602 of Pub. L. 91-524 provided that the amendment made by
that section is effective beginning with 1971 crop of upland cotton.
Inapplicability of Section
Subsection (a) of this 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)(2) of this title.
Subsec. (a) of this 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)(B) of this title.
Pub. L. 101-624, title V, Sec. 503, Nov. 28, 1990, 104 Stat. 3440,
provided that: ``Section 103(a) of the Agricultural Act of 1949 (7
U.S.C. 1444(a)) shall not be applicable to the 1991 through 1995
crops.''
Pub. L. 99-198, title V, Sec. 504, Dec. 23, 1985, 99 Stat. 1418,
provided that: ``Sections 103(a) and 203 of the Agricultural Act of 1949
(7 U.S.C. 1444(a) and 1446d) shall not be applicable to the 1986 through
1990 crops.''
Pub. L. 97-98, title V, Sec. 504, Dec. 22, 1981, 95 Stat. 1241,
provided that: ``Sections 103(a) and 203 of the Agricultural Act of 1949
[sections 1444(a) and 1446d of this title] shall not be applicable to
the 1982 through 1985 crops.''
Pub. L. 95-113, title VI, Sec. 604(c), Sept. 29, 1977, 91 Stat. 939,
provided that: ``Sections 103(a) and 203 of the Agricultural Act of
1949, as amended [sections 1444(a) and 1446d of this title] shall not be
applicable to the 1978 through 1981 crops.''
Section Referred to in Other Sections
This section is referred to in sections 1344, 1348, 1349, 1350,
1377, 1428, 7301, 7992 of this title.
