§ 1736f-1. — Establishment of commodity trust.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1736f-1]
TITLE 7--AGRICULTURE
CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
SUBCHAPTER IV--GENERAL AUTHORITIES AND REQUIREMENTS
Sec. 1736f-1. Establishment of commodity trust
(a) In general
To provide for a trust solely to meet emergency humanitarian food
needs in developing countries, the Secretary of Agriculture (referred to
in this section as the ``Secretary'') shall establish a trust stock of
wheat, rice, corn, or sorghum, or any combination of the commodities,
totaling not more than 4,000,000 metric tons for use as described in
subsection (c) of this section.
(b) Commodities or funds in trust
(1) In general
The trust established under this section shall consist of--
(A) wheat in the reserve established under the Food Security
Wheat Reserve Act of 1980 as of April 4, 1996;
(B) wheat, rice, corn, and sorghum (referred to in this
section as ``eligible commodities'') acquired in accordance with
paragraph (2) to replenish eligible commodities released from
the trust, including wheat to replenish wheat released from the
reserve established under the Food Security Wheat Reserve Act of
1980 but not replenished as of April 4, 1996;
(C) such rice, corn, and sorghum as the Secretary may, at
such time and in such manner as the Secretary determines
appropriate, acquire as a result of exchanging an equivalent
value of wheat in the trust established under this section; and
(D) funds made available under paragraph (2)(B) which shall
be used solely to replenish commodities in the trust.
(2) Replenishment of trust
(A) In general
Subject to subsection (h) of this section, commodities of
equivalent value to eligible commodities in the trust
established under this section may be acquired--
(i) through purchases--
(I) from producers; or
(II) in the market, if the Secretary determines that
the purchases will not unduly disrupt the market; or
(ii) by designation by the Secretary of stocks of
eligible commodities of the Commodity Credit Corporation.
(B) Funds
Any funds used to acquire eligible commodities through
purchases from producers or in the market to replenish the trust
shall be derived--
(i) with respect to fiscal years 2000 through 2007 from
funds made available to carry out the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 et
seq.) that are used to repay or reimburse the Commodity
Credit Corporation for the release of eligible commodities
under subsections (c)(2) and (f)(2) of this section, except
that, of such funds, not more than $20,000,000 may be
expended for this purpose in each of the fiscal years 2000
through 2007; and
(ii) from funds authorized for that use by an
appropriations Act.
(c) Release of eligible commodities
(1) Emergency assistance
(A) In general
Notwithstanding paragraph (2), to meet unanticipated need,
the Secretary may release eligible commodities in any fiscal
year, without regard to the availability of domestic supply of
the commodities, to provide emergency assistance to developing
countries under title II of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1721 et seq.).
(B) Release for emergency assistance
If the eligible commodities needed to meet unanticipated
need cannot be made available in a timely manner under normal
means for obtaining eligible commodities for food assistance
because of unanticipated need for emergency assistance as
provided under section 202(a) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1722(a)), the
Secretary may in any fiscal year release from the trust--
(i) up to 500,000 metric tons of wheat or the equivalent
value of eligible commodities other than wheat; and
(ii) up to 500,000 metric tons of any eligible
commodities under this paragraph that could have been
released but were not released in prior fiscal years.
(C) Waiver of minimum tonnage requirements
Nothing in this paragraph shall require a waiver under
section 204(a)(3) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite
for the release of eligible commodities under this paragraph.
(2) Emergency food assistance
(A) In general
Notwithstanding any other provision of law, eligible
commodities designated or acquired for the trust established
under this section may be released by the Secretary to provide,
on a donation or sale basis, emergency food assistance to
developing countries at such time as the domestic supply of the
eligible commodities is so limited that quantities of the
eligible commodities cannot be made available for disposition
under the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1691 et seq.) (other than disposition for urgent
humanitarian purposes under section 401 of the Act (7 U.S.C.
1731)).
(B) Limitation
The Secretary may release eligible commodities under
subparagraph (A) only to the extent such release is consistent
with maintaining the long-term value of the trust.
(3) Processing of eligible commodities
Eligible commodities that are released from the trust
established under this section may be processed in the United States
and shipped to a developing country when conditions in the recipient
country require processing.
(4) Exchange
The Secretary may exchange an eligible commodity for another
United States commodity of equal value, including powdered milk,
pulses, and vegetable oil.
(5) Use of normal commercial practices
To the maximum extent practicable consistent with the
fulfillment of the purposes of this section and the effective and
efficient administration of this section, the Secretary shall use
the usual and customary channels, facilities, arrangements, and
practices of trade and commerce to carry out this subsection.
(d) Management of eligible commodities
The Secretary shall provide--
(1) for the management of eligible commodities in the trust
established under this section as to location and quality of
eligible commodities needed to meet emergency situations;
(2) for the periodic rotation or replacement of stocks of
eligible commodities in the trust to avoid spoilage and
deterioration of the commodities; and
(3) subject to the need for release of commodities from the
trust under subsection (c)(1) of this section, for the management of
the trust to preserve the value of the trust through acquisitions
under subsection (b)(2) of this section.
(e) Treatment of trust under other law
Eligible commodities in the trust established under this section
shall not be--
(1) considered a part of the total domestic supply (including
carryover) for the purpose of subsection (c) of this section or for
the purpose of administering the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
(2) subject to any quantitative limitation on exports that may
be imposed under section 2406 of title 50, Appendix.
(f) Use of Commodity Credit Corporation
(1) In general
Subject to the limitations provided in this section, the funds,
facilities, and authorities of the Commodity Credit Corporation
shall be used by the Secretary in carrying out this section, except
that any restriction applicable to the acquisition, storage, or
disposition of eligible commodities owned or controlled by the
Commodity Credit Corporation shall not apply.
(2) Reimbursement of trust
(A) In general
The Commodity Credit Corporation shall be reimbursed for the
release of eligible commodities from funds made available to
carry out the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1691 et seq.) and the funds shall be available
to replenish the trust under subsection (b) of this section.
(B) Basis for reimbursement
The reimbursement shall be made on the basis of the lesser
of--
(i) the actual costs incurred by the Commodity Credit
Corporation with respect to the eligible commodity; or
(ii) the export market price of the eligible commodity
(as determined by the Secretary) as of the time the eligible
commodity is released from the trust.
(C) Source of funds
The reimbursement may be made from funds appropriated for
subsequent fiscal years.
(g) Finality of determination
Any determination by the Secretary under this section shall be
final.
(h) Termination of authority
(1) In general
The authority to replenish stocks of eligible commodities to
maintain the trust established under this section shall terminate on
September 30, 2007.
(2) Disposal of eligible commodities
Eligible commodities remaining in the trust after September 30,
2007, shall be disposed of by release for use in providing for
emergency humanitarian food needs in developing countries as
provided in this section.
(Pub. L. 96-494, title III, Sec. 302, as added Pub. L. 104-127, title
II, Sec. 225(a), Apr. 4, 1996, 110 Stat. 959; amended Pub. L. 105-385,
title II, Sec. 212(a), (b)(3), Nov. 13, 1998, 112 Stat. 3465, 3467; Pub.
L. 107-171, title III, Sec. 3202, May 13, 2002, 116 Stat. 300.)
References in Text
The Food Security Wheat Reserve Act of 1980, referred to in subsec.
(b)(1)(A), (B), is title III of the Agricultural Act of 1980, Pub. L.
96-494, Dec. 3, 1980, 94 Stat. 2578, which enacted former section 1736f-
1 of this title and provisions set out as notes under that section,
prior to the general amendment of title III by Pub. L. 104-127, title
II, Sec. 225(a), Apr. 4, 1996, 110 Stat. 959.
The Agricultural Trade Development and Assistance Act of 1954,
referred to in subsecs. (b)(2)(B)(i), (c)(1)(A), (2), (e)(1), and
(f)(2)(A), is act July 10, 1954, ch. 469, 68 Stat. 454, as amended,
which is classified generally to this chapter (Sec. 1691 et seq.). Title
II of the Act is classified to subchapter III (Sec. 1721 et seq.) of
this chapter. For complete classification of this Act to the Code, see
Short Title note set out under section 1691 of this title and Tables.
Codification
Section was enacted as part of the Bill Emerson Humanitarian Trust
Act which is title III of the Agricultural Act of 1980, and not as part
of the Agricultural Trade Development and Assistance Act of 1954 which
comprises this chapter.
Prior Provisions
A prior section 1736f-1, Pub. L. 96-494, title III, Sec. 302, Dec.
3, 1980, 94 Stat. 2578; Pub. L. 99-198, title X, Sec. 1013, Dec. 23,
1985, 99 Stat. 1456; Pub. L. 101-624, title XI, Sec. 1143, title XV,
Sec. 1515(c), Nov. 28, 1990, 104 Stat. 3515, 3663, established food
security wheat reserve, prior to general amendment of title III of Pub.
L. 96-494 by Pub. L. 104-127, Sec. 225(a).
Amendments
2002--Subsec. (b)(2)(B)(i). Pub. L. 107-171 substituted ``2007'' for
``2002'' in two places.
Subsec. (h). Pub. L. 107-171 substituted ``2007'' for ``2002'' in
pars. (1) and (2).
1998--Pub. L. 105-385, Sec. 212(b)(3)(A), substituted ``trust'' for
``reserve'' in section catchline.
Subsec. (a). Pub. L. 105-385, Sec. 212(b)(3)(B), substituted
``trust'' for ``reserve'' in two places.
Subsec. (b). Pub. L. 105-385, Sec. 212(a)(1)(A), (b)(3)(C)(i), in
heading inserted ``or funds'' after ``Commodities'' and substituted
``trust'' for ``reserve''.
Subsec. (b)(1). Pub. L. 105-385, Sec. 212(b)(3)(B), substituted
``trust'' for ``reserve'' in introductory provisions.
Subsec. (b)(1)(B). Pub. L. 105-385, Sec. 212(b)(3)(C)(ii),
substituted ``trust,'' for ``reserve,''.
Subsec. (b)(1)(C). Pub. L. 105-385, Sec. 212(b)(3)(B), substituted
``trust'' for ``reserve''.
Subsec. (b)(1)(D). Pub. L. 105-385, Sec. 212(a)(1)(B), added subpar.
(D).
Subsec. (b)(2). Pub. L. 105-385, Sec. 212(b)(3)(C)(iii), substituted
``trust'' for ``reserve'' in heading.
Subsec. (b)(2)(A). Pub. L. 105-385, Sec. 212(b)(3)(B), substituted
``trust'' for ``reserve'' in introductory provisions.
Subsec. (b)(2)(B). Pub. L. 105-385, Sec. 212(a)(1)(C), added subpar.
(B) and struck out heading and text of former subpar. (B). Text read as
follows: ``Any use of funds to acquire eligible commodities through
purchases from producers or in the market to replenish the reserve must
be authorized in an appropriations Act.''
Subsec. (c)(1)(B). Pub. L. 105-385, Sec. 212(b)(3)(B), substituted
``trust'' for ``reserve'' in introductory provisions.
Subsec. (c)(2). Pub. L. 105-385, Sec. 212(a)(2), (b)(3)(B),
designated existing provisions as subpar. (A), inserted heading,
substituted ``trust'' for ``reserve'', and added subpar. (B).
Subsecs. (c)(3), (d)(1), (2). Pub. L. 105-385, Sec. 212(b)(3)(B),
substituted ``trust'' for ``reserve''.
Subsec. (d)(3). Pub. L. 105-385, Sec. 212(a)(3), added par. (3).
Subsec. (e). Pub. L. 105-385, Sec. 212(b)(3)(B), (D), substituted
``trust'' for ``reserve'' in heading and introductory provisions.
Subsec. (f)(2). Pub. L. 105-385, Sec. 212(a)(4)(A), inserted ``of
trust'' after ``Reimbursement'' in heading.
Subsec. (f)(2)(A). Pub. L. 105-385, Sec. 212(a)(4)(B), inserted
before period at end ``and the funds shall be available to replenish the
trust under subsection (b) of this section''.
Subsecs. (f)(2)(B)(ii), (h)(1), (2). Pub. L. 105-385,
Sec. 212(b)(3)(B), substituted ``trust'' for ``reserve''.
Effective Date
Section 303 of title III of Pub. L. 96-494 provided that former
section 1736f-1 of this title and provisions set out as a note under
that section became effective on Dec. 3, 1980, prior to the general
amendment of title III of Pub. L. 96-494 by Pub. L. 104-127,
Sec. 225(a).
Short Title
Section 301 of title III of Pub. L. 96-494, as added by Pub. L. 104-
127, title II, Sec. 225(a), Apr. 4, 1996, 110 Stat. 959, and amended by
Pub. L. 105-385, title II, Sec. 212(b)(2), Nov. 13, 1998, 112 Stat.
3466, provided that: ``This title [enacting this section] may be cited
as the `Bill Emerson Humanitarian Trust Act'.''
A prior section 301 of title III of Pub. L. 96-494 provided that
title III (enacting former section 1736f-1 of this title and provisions
set out as a note under that section) could be cited as the ``Food
Security Wheat Reserve Act of 1980'', prior to the general amendment of
title III of Pub. L. 96-494 by Pub. L. 104-127, Sec. 225(a).
Section Referred to in Other Sections
This section is referred to in section 4001 of this title; title 46
App. section 1241f.
