§ 608. — Powers of Secretary.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC608]
TITLE 7--AGRICULTURE
CHAPTER 26--AGRICULTURAL ADJUSTMENT
SUBCHAPTER III--COMMODITY BENEFITS
Sec. 608. Powers of Secretary
(1) Investigations; proclamation of findings
Whenever the Secretary of Agriculture has reason to believe that:
(a) The current average farm price for any basic agricultural
commodity is less than the fair exchange value thereof, or the
average farm price of such commodity is likely to be less than the
fair exchange value thereof for the period in which the production
of such commodity during the current or next succeeding marketing
year is normally marketed, and
(b) The conditions of and factors relating to the production,
marketing, and consumption of such commodity are such that the
exercise of any one or more of the powers conferred upon the
Secretary under subsections (2) and (3) of this section would tend
to effectuate the declared policy of this chapter,
he shall cause an immediate investigation to be made to determine such
facts. If, upon the basis of such investigation, the Secretary finds the
existence of such facts, he shall proclaim such determination and shall
exercise such one or more of the powers conferred upon him under
subsections (2) and (3) of this section as he finds, upon the basis of
an investigation, administratively practicable and best calculated to
effectuate the declared policy of this chapter.
(2) Agreements for adjustment of acreage or production and for rental or
benefit payments
Subject to the provisions of subsection (1) of this section, the
Secretary of Agriculture shall provide, through agreements with
producers or by other voluntary methods,
(a) For such adjustment in the acreage or in the production for
market, or both, of any basic agricultural commodity, as he finds,
upon the basis of the investigation made pursuant to subsection (1)
of this section, will tend to effectuate the declared policy of this
chapter, and to make such adjustment program practicable to operate
and administer, and
(b) For rental or benefit payments in connection with such
agreements or methods in such amounts as he finds, upon the basis of
such investigation, to be fair and reasonable and best calculated to
effectuate the declared policy of this chapter, and to make such
program practicable to operate and administer, to be paid out of any
moneys available for such payments or, subject to the consent of the
producer, to be made in quantities of one or more basic agricultural
commodities acquired by the Secretary pursuant to this chapter.
(3) Payments by Secretary
Subject to the provisions of subsection (1) of this section, the
Secretary of Agriculture shall make payments, out of any moneys
available for such payments, in such amounts as he finds, upon the basis
of the investigation made pursuant to subsection (1) of this section, to
be fair and reasonable and best calculated to effectuate the declared
policy of this chapter:
(a) To remove from the normal channels of trade and commerce
quantities of any basic agricultural commodity or product thereof;
(b) To expand domestic or foreign markets for any basic
agricultural commodity or product thereof;
(c) In connection with the production of that part of any basic
agricultural commodity which is required for domestic consumption.
(4) Additional investigation; suspension of exercise of powers
Whenever, during a period during which any of the powers conferred
in subsection (2) or (3) of this section is being exercised, the
Secretary of Agriculture has reason to believe that, with respect to any
basic agricultural commodity:
(a) The current average farm price for such commodity is not
less than the fair exchange value thereof, and the average farm
price for such commodity is not likely to be less than the fair
exchange value thereof for the period in which the production of
such commodity during the current or next succeeding marketing year
is normally marketed, or
(b) The conditions of and factors relating to the production,
marketing, and consumption of such commodity are such that none of
the powers conferred in subsections (2) and (3) of this section, and
no combination of such powers, would, if exercised, tend to
effectuate the declared policy of this chapter,
he shall cause an immediate investigation to be made to determine such
facts. If, upon the basis of such investigation, the Secretary finds the
existence of such facts, he shall proclaim such determination, and shall
not exercise any of such powers with respect to such commodity after the
end of the marketing year current at the time when such proclamation is
made and prior to a new proclamation under subsection (1) of this
section, except insofar as the exercise of such power is necessary to
carry out obligations of the Secretary assumed, prior to the date of
such proclamation made pursuant to this subsection, in connection with
the exercise of any of the powers conferred upon him under subsections
(2) or (3) of this section.
(5) Hearings; notice
In the course of any investigation required to be made under
subsection (1) or (4) of this section, the Secretary of Agriculture
shall hold one or more hearings, and give due notice and opportunity for
interested parties to be heard.
(6) Commodity in which payment made
No payment under this chapter made in an agricultural commodity
acquired by the Secretary in pursuance of this chapter shall be made in
a commodity other than that in respect of which the payment is being
made. For the purposes of this subsection, hogs and field corn may be
considered as one commodity.
(7) Additional payments to producers of sugar beets or sugarcane
In the case of sugar beets or sugarcane, in the event that it shall
be established to the satisfaction of the Secretary of Agriculture that
returns to growers or producers, under the contracts for the 1933-1934
crop of sugar beets or sugarcane, entered into by and between the
processors and producers and/or growers thereof, were reduced by reason
of the payment of the processing tax, and/or the corresponding floor
stocks tax, on sugar beets or sugarcane, in addition to the foregoing
rental or benefit payments, the Secretary of Agriculture shall make such
payments, representing in whole or in part such tax, as the Secretary
deems fair and reasonable, to producers who agree, or have agreed, to
participate in the program for reduction in the acreage or reduction in
the production for market, or both, of sugar beets or sugarcane.
(8) Pledge by rice producer for production credit of right to rental or
benefit payments
In the case of rice, the Secretary of Agriculture, in exercising the
power conferred upon him by subsection (2) of this section to provide
for rental or benefit payments, is directed to provide in any agreement
entered into by him with any rice producer pursuant to such subsection,
upon such terms and conditions as the Secretary determines will best
effectuate the declared policy of this chapter, that the producer may
pledge for production credit in whole or in part his right to any rental
or benefit payments under the terms of such agreement and that such
producer may designate therein a payee to receive such rental or benefit
payments.
(9) Advances of payments on stored nonperishable commodity
Under regulations of the Secretary of Agriculture requiring adequate
facilities for the storage of any nonperishable agricultural commodity
on the farm, inspection and measurement of any such commodity so stored,
and the locking and sealing thereof, and such other regulations as may
be prescribed by the Secretary of Agriculture for the protection of such
commodity and for the marketing thereof, a reasonable percentage of any
benefit payment may be advanced on any such commodity so stored. In any
such case such deduction may be made from the amount of the benefit
payment as the Secretary of Agriculture determines will reasonably
compensate for the cost of inspection and sealing but no deduction may
be made for interest.
(May 12, 1933, ch. 25, title I, Sec. 8, 48 Stat. 34; Apr. 7, 1934, ch.
103, Sec. 7, 48 Stat. 528; May 9, 1934, ch. 263, Sec. 14, 48 Stat. 676;
Mar. 18, 1935, ch. 32, Sec. 7, 49 Stat. 46; Aug. 24, 1935, ch. 641,
Secs. 2, 4-7, 49 Stat. 751, 753-762.)
Codification
Section as originally enacted consisted of subsections (1) to (5).
Act Aug. 24, 1935, amended section by striking out or amending and
redesignating the various subsections.
Amendments
1935--Subsec. (1) was, together with subsecs. (2) to (9), inserted
in lieu of former (1) by section 2 of act Aug. 24, 1935, which also
struck out former (1) as amended by acts May 9, 1934, and March 18,
1935.
Subsec. (2) was, together with subsecs. (1) and (3) to (9), inserted
in lieu of former (1) by section 2 of act Aug. 24, 1935. Former subsec.
(2), as amended by act Apr. 7, 1934, was designated section 8b of the
Agricultural Adjustment Act, section 608b of this title, and amended by
section 4 of said act Aug. 24, 1935.
Subsec. (3) was, together with subsecs. (1), (2), and (4) to (9),
inserted in lieu of former (1) by section 2 of act Aug. 24, 1935. Former
subsec. (3) was struck out by section 5 of said act Aug. 24, 1935, which
also added section 8c to the Agricultural Adjustment Act, section 608c
of this title.
Subsec. (4) was, together with subsecs. (1) to (3) and (5) to (9),
inserted in lieu of former (1) by section 2 of act Aug. 24, 1935. Former
subsec. (4) was struck out by section 6 of said act Aug. 24, 1935, which
also added sections 8d and 8e to the Agricultural Adjustment Act,
section 608d and former section 608e, respectively, of this title.
Subsec. (5) was, together with subsecs. (1) to (4) and (6) to (9),
inserted in lieu of former (1) by section 2 of act Aug. 24, 1935. Former
subsec. (5) was designated section 8f of the Agricultural Adjustment
Act, section 608f of this title, and amended by section 7 of said act
Aug. 24, 1935.
Subsecs. (6) to (9) were, together with subsecs. (1) to (5),
inserted in lieu of former (1) by section 2 of act Aug. 24, 1935.
1934--Act May 9, 1934, amended subsec. (1) generally.
Act Apr. 7, 1934, amended subsec. (2) by striking out proviso.
Validity of Agreements and Licenses Preserved Under 1935 Act
Section 38 of act Aug. 24, 1935, which amended this chapter
generally, provided as follows: ``Nothing contained in this Act shall
(a), invalidate any marketing agreement or license in existence on the
date of the enactment hereof [Aug. 24, 1935], or any provision thereof,
or any act done pursuant thereto, either before or after the enactment
of this Act, or (b) impair any remedy provided for on the date of the
enactment thereof for the enforcement of any such marketing agreement or
license, or (c) invalidate any agreement entered into pursuant to
section 8(1) of the Agricultural Adjustment Act prior to the enactment
of this Act, or subsequent to the enactment of this Act in connection
with a program the initiation of which has been formally approved by the
Secretary of Agriculture under such section 8(1) prior to the enactment
of this Act, or any act done or agreed to be done or any payment made or
agreed to be made in pursuance of any such agreement, either before or
after the enactment of this Act, or any change in the terms and
conditions of any such agreement, or any voluntary arrangements or
further agreements which the Secretary finds necessary or desirable in
order to complete or terminate such program pursuant to the declared
policy of the Agricultural Adjustment Act [this chapter]; Provided, That
the Secretary shall not prescribe, pursuant to any such agreement or
voluntary arrangement, any adjustment in the acreage or in the
production for market of any basic agricultural commodity to be made
after July 1, 1937, except pursuant to the provisions of section 8 of
the Agricultural Adjustment Act as amended by this Act.''
Section Referred to in Other Sections
This section is referred to in sections 609, 610, 612, 623, 673 of
this title; title 12 section 1150a.
