§ 4001. — Trade suspension reserves.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC4001]
TITLE 7--AGRICULTURE
CHAPTER 71--AGRICULTURAL TRADE SUSPENSION ADJUSTMENT
Sec. 4001. Trade suspension reserves
Notwithstanding any other provision of law--
(a) Gasohol feedstock or food security reserves; establishment
Whenever the President or other member of the executive branch of
Government causes the export of any agricultural commodity to any
country or area of the world to be suspended or restricted for reasons
of national security or foreign policy under the Export Administration
Act of 1979 [50 App. U.S.C. 2401 et seq.] or any other provision of law
and the Secretary of Agriculture determines that such suspension or
restriction will result in a surplus supply of such commodity that will
adversely affect prices producers receive for the commodity, the
Secretary may establish a gasohol feedstock reserve or a food security
reserve, or both, of the commodity, as provided in subsections (c) and
(d) of this section, if the commodity is suitable for stockpiling in a
reserve.
(b) Announcement of intention to establish reserves; contents
Within thirty days after the export of any agricultural commodity to
a country or area is suspended or restricted as described in subsection
(a) of this section, the Secretary of Agriculture shall announce whether
a gasohol feedstock reserve or a food security reserve of the commodity,
or both, will be established under this section and shall include in
such announcement the amount of the commodity that will be placed in
such reserves, which shall be that portion of the estimated exports of
the commodity affected by the suspension or restriction, as determined
by the Secretary, that should be removed from the market to prevent the
accumulation of a surplus supply of the commodity that will adversely
affect prices producers receive for the commodity.
(c) Acquisition of suitable agricultural commodities; payment of
transportation and storage costs; disposition of acquired
commodities
(1) To establish a gasohol feedstock reserve under this section, the
Secretary of Agriculture may acquire agricultural commodities (the
export of which is suspended or restricted as described in subsection
(a) of this section) that are suitable for use in the production of
alcohol for motor fuel through purchases from producers or in the market
and by designation by the Secretary of stocks of the commodities held by
the Commodity Credit Corporation, and to pay such storage,
transportation, and related costs as may be necessary to permit
maintenance of the commodities in the reserve for the purposes of this
section and disposition of the commodities as provided in paragraph (2)
of this subsection.
(2) The Secretary of Agriculture may dispose of stocks of
agricultural commodities acquired under paragraph (1) of this subsection
only through sale--
(A) for use in the production of alcohol for motor fuel, at not
less than the fuel conversion price (as defined in section 4005 of
this title) for the commodity involved: Provided, That, for wheat
and feed grains, if the fuel conversion price for the commodity
involved is less than the then current release price at which
producers may repay producer storage loans on the commodity and
redeem the commodity prior to the maturity dates of the loans, as
determined under clause (5) of the third sentence of section
1445e(b) \1\ of this title, the Secretary may dispose of stocks of
the commodity for such use only through sale at not less than the
release price: Provided further, That such sales shall only be made
to persons for use in the production of alcohol for motor fuel at
facilities that, whenever supplies of the commodity are not readily
available, can produce alcohol from other agricultural or forestry
biomass feedstocks; or
---------------------------------------------------------------------------
\1\ See References in Text note below.
---------------------------------------------------------------------------
(B) for any other use, when sales for use under clause (A) of
this paragraph are impracticable, (i) if there is a producer storage
program in effect for the commodity, at not less than 110 per centum
of the then current level at which the Secretary may encourage
repayment of producer storage loans on the commodity prior to the
maturity dates of the loans, as determined under clause (5) of the
third sentence of section 1445e(b) \1\ of this title, or, (ii) if
there is no producer storage program in effect for the commodity, at
not less than the average market price producers received for the
commodity at the time the trade suspension was imposed.
(d) Acquisition of agricultural commodities suitable for providing
emergency food assistance
(1) To establish a food security reserve under this section, the
Secretary of Agriculture may acquire agricultural commodities (the
export of which is suspended or restricted as described in subsection
(a) of this section) that are suitable for use in providing emergency
food assistance and urgent humanitarian relief through purchases from
producers or in the market and by designation by the Secretary of stocks
of the commodities held by the Commodity Credit Corporation, and to pay
such storage, transportation, and related costs as may be necessary to
permit maintenance of the commodities in the reserve for the purposes of
this section and disposition of the commodities as provided in paragraph
(2) of this subsection.
(2) Applicability of certain provisions.--Subsections (c), (d), (e),
and (f)(2) of section 1736f-1 of this title shall apply to commodities
in any reserve established under paragraph (1), except that the
references to ``eligible commodities'' in the subsections shall be
deemed to be references to ``agricultural commodities''.
(3) Any determination by the President or the Secretary of
Agriculture under this section shall be final.
(e) Use of Commodity Credit Corporation funds, facilities, and
authorities
The funds, facilities, and authorities of the Commodity Credit
Corporation shall be used by the Secretary of Agriculture in carrying
out this section, except that any restriction applicable to the
acquisition, storage, or disposition of Commodity Credit Corporation
owned or controlled commodities shall not apply with respect to the
acquisition, storage, or disposition of agricultural commodities under
this section.
(f) Safeguards for protection of free market
The Secretary of Agriculture shall establish safeguards to ensure
that stocks of agricultural commodities held in the reserves established
under this section shall not be used in any manner or under any
circumstance to unduly depress, manipulate, or curtail the free market.
(g) Replenishment of reserves with replacement stocks prohibited
Whenever stocks of agricultural commodities are disposed of or
released from reserves established under this section, as provided in
subsections (c)(2) and (d)(2) of this section, the reserves may not be
replenished with replacement stocks.
(h) Effective date
The provisions of this section shall become effective with respect
to any suspension of, or restriction on, the export of agricultural
commodities, as described in subsection (a) of this section, implemented
after December 3, 1980.
(Pub. L. 96-494, title II, Sec. 208, Dec. 3, 1980, 94 Stat. 2573; Pub.
L. 97-98, title X, Sec. 1004, Dec. 22, 1981, 95 Stat. 1260; Pub. L. 104-
127, title II, Sec. 225(b), Apr. 4, 1996, 110 Stat. 962; Pub. L. 105-
385, title II, Sec. 212(b)(4), Nov. 13, 1998, 112 Stat. 3467.)
References in Text
The Export Administration Act of 1979, referred to in subsec. (a),
is Pub. L. 96-72, Sept. 29, 1979, 93 Stat. 503, as amended, which is
classified principally to section 2401 et seq. of the Appendix to Title
50, War and National Defense. For complete classification of this Act to
the Code, see Short Title note set out under section 2401 of the
Appendix to Title 50 and Tables.
Section 1445e of this title, referred to in subsec. (c)(2), was
amended generally by Pub. L. 101-624, title XI, Sec. 1123, Nov. 28,
1990, 104 Stat. 3503, and, as so amended, subsec. (b) of section 1445e
does not contain a clause (5).
Amendments
1998--Subsec. (d)(2). Pub. L. 105-385 made technical amendment to
reference in original act which appears in text as reference to section
1736f-1 of this title.
1996--Subsec. (d)(2). Pub. L. 104-127 added par. (2) and struck out
former par. (2) which read as follows: ``The provisions of subsections
(c), (d), (e), (f), and (g)(2) of section 1736f-1 of this title shall
apply to commodities in any reserve established under paragraph (1) of
this subsection, and (except for the last sentence of subsection (c) of
section 1736f-1 of this title) the references to `wheat' in such
subsections of section 1736f-1 of this title shall be deemed to be
references to `agricultural commodities'.''
1981--Subsec. (c)(2)(A). Pub. L. 97-98, Sec. 1004(1), substituted
``third sentence'' for ``second sentence''.
Subsec. (c)(2)(B)(i). Pub. L. 97-98, Sec. 1004(2), substituted ``110
per centum'' for ``105 per centum'', ``Secretary may encourage
repayment'' for ``Secretary may call for repayment'', and ``clause (5)
of the third sentence'' for ``clause (6) of the second sentence''.
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section 1801
of Pub. L. 97-98, set out as an Effective Date note under section 4301
of this title.
Effective Date
Section 213 of title II of Pub. L. 96-494 provided that: ``Except as
otherwise provided herein, this title [enacting this chapter and section
1445h of this title, amending sections 1444c, 1445b, 1445e, and 1446 of
this title, and enacting provisions set out as notes under this section,
sections 1445e and 1445h of this title, and section 714c of Title 15,
Commerce and Trade] shall become effective October 1, 1980, or the date
of enactment [Dec. 3, 1980], whichever is later.''
Short Title
Section 1 of Pub. L. 96-494 provided: ``That this Act [enacting this
chapter and sections 1445h and 1736f-1 of this title, amending sections
608c, 1444c, 1445b, 1445e, and 1446 of this title, and enacting
provisions set out as notes under this section, sections 1445e, 1445h,
and 1736f-1 of this title, and section 714c of Title 15, Commerce and
Trade] may be cited as the `Agricultural Act of 1980'.''
Section 201 of title II of Pub. L. 96-494 provided that: ``This
title [enacting this chapter and section 1445h of this title, amending
sections 1444c, 1445b, 1445e, and 1446 of this title, and enacting
provisions set out as notes under this section, sections 1445e and 1445h
of this title, and section 714c of Title 15, Commerce and Trade] may be
cited as the `Agricultural Trade Suspension Adjustment Act of 1980'.''
