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7 U.S.C. § 1310a — Cost reduction options
Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority of Secretary to take action** Notwithstanding any other provision of law, whenever the Secretary of Agriculture determines that an action authorized under subsection (c), (d), or (e) will reduce the total of the direct and indirect costs to the Federal Government of a commodity program administered by the Secretary without adversely affecting income to small- and medium-sized producers participating in such program, the Secretary shall take such action with respect to the commodity program involved.
**(b) Reservation of Secretary’s right to reopen or change contracts if producer agrees** In the announcement of the specific provisions of any commodity program administered by the Secretary of Agriculture, the Secretary shall include a statement setting forth which, if any, of the actions are to be initially included in the program, and a statement that the Secretary reserves the right to initiate at a later date any action not previously included but authorized by this section, including the right to reopen and change a contract entered into by a producer under the program if the producer voluntarily agrees to the change.
**(c) Purchase from other sources of commodities covered by nonrecourse loans** When a nonrecourse loan program is in effect for a crop of a commodity, the Secretary may enter the commercial market to purchase such commodity if the Secretary determines that the cost of such purchases plus appropriate carrying charges will probably be less than the comparable cost of later acquiring the commodity through defaults on nonrecourse loans under the program.
**(d) Reduction in settlement price of nonrecourse loans** When the domestic market price of a commodity for which a nonrecourse loan program (including the program authorized by [section
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Source location: Title 7, Chapter 35, § 1310a; chapter-035-agricultural-adjustment-act-of-1938.md
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**(a) Authority of Secretary to take action** Notwithstanding any other provision of law, whenever the Secretary of Agriculture determines that an action authorized under subsection (c), (d), or (e) will reduce the total of the direct and indirect costs to the Federal Government of a commodity program administered by the Secretary without adversely affecting income to small- and medium-sized producers participating in such program, the Secretary shall take such action with respect to the commodity program involved.
**(b) Reservation of Secretary’s right to reopen or change contracts if producer agrees** In the announcement of the specific provisions of any commodity program administered by the Secretary of Agriculture, the Secretary shall include a statement setting forth which, if any, of the actions are to be initially included in the program, and a statement that the Secretary reserves the right to initiate at a later date any action not previously included but authorized by this section, including the right to reopen and change a contract entered into by a producer under the program if the producer voluntarily agrees to the change.
**(c) Purchase from other sources of commodities covered by nonrecourse loans** When a nonrecourse loan program is in effect for a crop of a commodity, the Secretary may enter the commercial market to purchase such commodity if the Secretary determines that the cost of such purchases plus appropriate carrying charges will probably be less than the comparable cost of later acquiring the commodity through defaults on nonrecourse loans under the program.
**(d) Reduction in settlement price of nonrecourse loans** When the domestic market price of a commodity for which a nonrecourse loan program (including the program authorized by [section 1445e of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1445e&num=0&edition=prelim)) is in effect is insufficient to cover the principal and accumulated interest on a loan made under such program, thereby encouraging default by a producer, the Secretary may provide for settlement of such loan and redemption by the producer of the commodity securing such loan for less than the total of the principal and all interest accumulated thereon if the Secretary determines that such reduction in the settlement price will yield benefits to the Federal Government due to—
(1) receipt by the Federal Government of a portion rather than none of the accumulated interest;
(2) avoidance of default; or
(3) elimination of storage, handling, and carrying charges on the forfeited commodity.
**(e) Reopening of production control or loan programs to allow for payment in kind** When a production control or loan program is in effect for a crop of a major agricultural commodity, the Secretary may at any time prior to harvest reopen the program to participating producers for the purpose of accepting bids from producers for the conversion of acreage planted to such crop to diverted acres in return for payment in kind from Commodity Credit Corporation surplus stocks of the commodity to which the acreage was planted, if the Secretary determines that (1) changes in domestic or world supply or demand conditions have substantially changed after announcement of the program for that crop, and (2) without action to further adjust production, the Federal Government and producers will be faced with a burdensome and costly surplus. Such payments in kind shall not be included within the payment limitation per person established under [section 1308 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1308&num=0&edition=prelim), but shall be limited to a total $20,000 per year per producer for any one commodity.
**(f) Other authorities of Secretary not affected** The authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary under any other provision of law.
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Federal law — U.S. Code and appendices · legal_authorities
Notwithstanding any other provision of law, the Secretary, upon the request of any agency of any State charged with the administration of the public lands of the State, may permit the transfer of acreage allotments or feed grain bases together with relevant production histories which have been determined pursuant to the Agricultural Adjustment Act of 1938, as amended [[7 U.S.C. 1281](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1281&num=0&edition=prelim) et seq.], or [section 590p of title 16](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section590p&num=0&edition=prelim), from any farm composed of public lands to any other farm or farms in the same county composed of public lands: Provided, That as a condition for the transfer of any allotment or base an acreage equal to or greater than the allotment or base transferred prior to adjustment, if any, shall be devoted to and maintained in permanent vegetative cover on the farm from which the transfer is made. The Secretary shall prescribe regulations which he deems necessary for the administration of this section, which may provide for adjusting downward the size of the allotment or base transferred if the farm to which the allotment or base is transferred normally has a higher yield per acre for the commodity for which the allotment or base is determined, for reasonable limitations on the size of the resulting allotments and bases on farms to which transfers are made, taking into account the size of the allotments and bases on farms of similar size in the community, and for retransferring allotments or bases and relevant histories if the conditions of the transfers are not fulfilled.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1308
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** In this section:
(1) **Agricultural commodity** — The term “agricultural commodity” has the meaning given the term in [section 5602 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section5602&num=0&edition=prelim).
(2) **Geographically disadvantaged farmer or rancher** — The term “geographically disadvantaged farmer or rancher” has the meaning given the term in section 10906(a) of the Farm Security and Rural Investment Act of 2002 ([7 U.S.C. 2204](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2204&num=0&edition=prelim) note; Public Law 107–171).
**(b) Authorization** Subject to the availability of funds under subsection (d), the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for activities described in subsection (c).
**(c) Transportation**
(1) **In general** — Subject to paragraphs (2) and (3), the Secretary may provide direct reimbursement payments to a geographically disadvantaged farmer or rancher to transport an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year.
(2) **Proof of eligibility** — To be eligible to receive assistance under paragraph (1), a geographically disadvantaged farmer or rancher shall demonstrate to the Secretary that transportation of the agricultural commodity or inputs occurred over a distance of more than 30 miles, as determined by the Secretary.
(3) **Amount**
(A) *In general* — Subject to paragraph (2), the amount of direct reimbursement payments made to a geographically disadvantaged farmer or rancher under this section for a fiscal year shall equal the product obtained by multiplying—
(i) the amount of costs incurred by the geographically di
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 8701
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Secretary shall formulate and administer a farmer owned reserve program under which producers of wheat and feed grains will be able to store wheat and feed grains when the commodities are in abundant supply, extend the time period for the orderly marketing of the commodities, and provide for adequate carryover stocks to ensure a reliable supply of the commodities.
**(b) Terms of program**
(1) **Price support loans** — In carrying out this program, the Secretary shall provide extended price support loans for wheat and feed grains. An extended loan shall only be made to a producer after the expiration of a 9-month price support loan (hereafter in this section referred to as the “original loan”) made in accordance with this subchapter.
(2) **Level of loans** — Loans made under this section shall not be less than the then current level of support under the wheat and feed grain programs established under this subchapter.
(3) **Other terms and conditions** — The Secretary shall provide for—
(A) repayment of the extended price support loan 27 months from the date on which the original loan expired unless, at the discretion of the Secretary, the loan has been extended for one 6-month period;
(B) a rate of interest as provided under subsection (c); and
(C) payments to producers for storage as provided in subsection (d).
(4) **Regional differences** — The Secretary shall ensure that producers are afforded a fair and equitable opportunity to participate in the program established under this section, taking into account regional differences in the time of harvest.
**(c) Interest charges**
(1) **Levying of interest** — The Secretary may charge interest on loans under this section whenever the price of wheat or feed grains is equal to or exceeds
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1445e
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Federal law — U.S. Code and appendices · legal_authorities
Page 615
TITLE 7—AGRICULTURE
§ 1310a
1978—Subsec. (b). Pub. L. 95–334 added applicability to
rice.
Pub. L. 95–279 designated existing provisions as sub-
sec. (a) and added subsec. (b).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–624 effective beginning
with 1991 crop of an agricultural commodity, with pro-
vision 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 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 AND TERMINATION DATES OF 1980
AMENDMENT
Pub. L. 96–213, § 6, Mar. 18, 1980, 94 Stat. 120, provided
that the amendment made by that section is effective
for the 1980 and 1981 crops.
EFFECTIVE DATE OF 1978 AMENDMENTS
Pub. L. 95–334, title V, § 501(b), Aug. 4, 1978, 92 Stat.
434, provided that: ‘‘This section [amending this sec-
tion] shall become effective October 1, 1978, and any
producers who, prior to such date, receive payments on
the 1978 crop of rice as computed under the Agricul-
tural Act of 1949 [see Short Title note set out under
section 1421 of this title], as amended by the Food and
Agriculture Act of 1977 [see Short Title of 1977 Amend-
ment note set out under section 1281 of this title], may
elect after September 30, 1978, to receive payments as
computed under section 1001(b) of the Food and Agri-
culture Act of 1977, as amended by this section.’’
Pub. L. 95–279, title I, § 103, May 15, 1978, 92 Stat. 241,
provided that: ‘‘Sections 101 and 102 [amending this sec-
tion and section 1444 of this title] of this title shall be-
come effective October 1, 1978, and any producers
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 1310a
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