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7 U.S.C. § 1445e — Farmer owned reserve program
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
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Source file: Laws/federal/codes/united-states-code/title-7/section-1445e-farmer-owned-reserve-program--cb577efec0.md
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Source location: Title 7, Chapter 35A, § 1445e; chapter-35a-price-support-of-agricultural-commodities.md
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**(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 105 percent of the then current established price for the commodity.
(2) **90-day period** — If interest is levied on the loans under paragraph (1), the interest may be charged for a period of 90 days after the last day on which the price of wheat or feed grains was equal to or in excess of 105 percent of the established price for the commodities.
(3) **Rate of interest** — The rate of interest charged participants in this program shall not be less than the rate of interest charged by the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust the interest as the Secretary considers appropriate to effectuate the purposes of this section.
**(d) Storage payments**
(1) **In general** — The Secretary shall provide storage payments to producers for storage of wheat or feed grains under the program established in this section in such amounts and under such conditions as the Secretary determines appropriate to encourage producers to participate in the program.
(2) **Timing** — The Secretary shall make storage payments available to participants in this program at the end of each quarter.
(3) **Duration** — The Secretary shall cease making storage payments whenever the price of wheat or feed grains is equal to or exceeds 95 percent of the then current established price for the commodities, and for any 90-day period immediately following the last day on which the price of wheat or feed grains was equal to or in excess of 95 percent of the then current established price for the commodities.
**(e) Emergencies** Notwithstanding any other provision of law, the Secretary may require producers to repay loans made under this section, plus accrued interest and such other charges as may be required by regulation prior to the maturity date thereof, if the Secretary determines that emergency conditions exist that require that the commodity be made available in the market to meet urgent domestic or international needs and the Secretary reports the determination and the reasons for the determination to the President, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate at least 14 days before taking the action.
**(f) Quantity of commodities in program** The Secretary may establish maximum quantities of wheat and feed grains that may receive loans and storage payments under this program as follows:
(1) The maximum quantities of wheat may not be established at less than 300 million bushels, nor more than 450 million bushels.
(2) The maximum quantities of feed grains may not be established at less than 600 million bushels, nor more than 900 million bushels.
**(g) Announcement of program**
(1) **Time of announcement** — The Secretary shall announce the terms and conditions of the producer storage program for a crop of wheat and feed grains by—
(A) in the case of wheat, December 15 of the year in which the crop of wheat was harvested; and
(B) in the case of feed grains, March 15 of the year following the year in which the crop of corn was harvested.
(2) **Discretionary entry** — The Secretary may make extended loans available to producers of wheat or feed grains if—
(A) the Secretary determines that the average market price for wheat or corn, respectively, for the 90-day period prior to the dates specified in paragraph (1) is less than 120 percent of the current loan rate for wheat or corn, respectively; or
(B) as of the appropriate date specified in paragraph (1), the Secretary estimates that the stocks-to-use ratio on the last day of the current marketing year will be—
(i) in the case of wheat, more than 37.5 percent; and
(ii) in the case of corn, more than 22.5 percent.
(3) **Mandatory entry** — The Secretary shall make extended loans available to producers of wheat or feed grains if the conditions specified in subparagraphs (A) and (B) of paragraph (2) are met for wheat or feed grains, respectively.
(4) **Content of announcement** — In the announcement, the Secretary shall specify the maximum quantity of wheat or feed grains to be stored under this program that the Secretary determines appropriate to promote the orderly marketing of the commodities.
**(h) Discretionary exit** A producer may repay a loan extended under this section at any time.
**(i) Reconcentration of grain** The Secretary may, with the concurrence of the owner of grain stored under this program, reconcentrate all such grain stored in commercial warehouses at such points as the Secretary considers to be in the public interest, taking into account such factors as transportation and normal marketing patterns. The Secretary shall permit rotation of stocks and facilitate maintenance of quality under regulations that assure that the holding producer or warehouseman shall, at all times, have available for delivery at the designated place of storage both the quantity and quality of grain covered by the producer’s or warehouseman’s commitment.
**(j) Management of grain** Whenever grain is stored under this section, the Secretary may buy and sell at an equivalent price, allowing for the customary location and grade differentials, substantially equivalent quantities of grain in different locations or warehouses to the extent needed to properly handle, rotate, distribute, and locate the commodities that the Commodity Credit Corporation owns or controls. The purchases to offset sales shall be made within 2 market days following the sales. The Secretary shall make a daily list available showing the price, location, and quantity of the transactions.
**(k) Use of Commodity Credit Corporation** The Secretary shall use the Commodity Credit Corporation, to the extent feasible, to fulfill the purposes of this section. 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 utilize the usual and customary channels, facilities, and arrangements of trade and commerce.
**(l) Use of commodity certificates** Notwithstanding any other provision of law, if a producer has substituted purchased or other commodities for the commodities originally pledged as collateral for a loan made under this section, the Secretary may allow a producer to repay the loan using a generic commodity certificate that may be exchanged for commodities owned by the Commodity Credit Corporation, if the substitute commodities have been pledged as loan collateral and redeemed only within the same county.
**(m) Additional authority** The authority provided by this section shall be in addition to other authorities available to the Secretary for carrying out producer loan and storage operations.
**(n) Regulations** The Secretary of Agriculture shall issue such regulations as are necessary to carry out this section not later than 60 days after November 28, 1990.
**(o) Review** In announcing the terms and conditions of the producer storage program under this section, the Secretary shall review standards concerning the quality of grain that shall be allowed to be stored under the program, and such standards should encourage only quality grain, as determined by the Secretary, to be pledged as collateral for such loans. The Secretary shall review inspection, maintenance, and stock rotation requirements and take the necessary steps to maintain the quality of such grain.
**(p) Crops** Notwithstanding any other provision of law, this section shall become effective December 1, 1990.
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Federal law — U.S. Code and appendices · legal_authorities
As used in this chapter, the phrase “fuel conversion price” means the price for an agricultural commodity determined by the Secretary of Agriculture that will permit gasoline-alcohol mixtures using alcohol produced from the commodity to be competitive in price with unleaded gasoline priced at the point it leaves the refinery, adjusted for differences in octane rating, taking into consideration the energy value of the commodity and other appropriate values designed to represent, on a national average basis, the value of byproducts also recoverable from the commodity; the direct costs and capital recovery costs for a grain alcohol distillery capable of producing forty million gallons of alcohol and recovering byproducts annually; and Federal tax and other Federal incentives applicable to alcohol used for fuel.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 4005
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Federal law — U.S. Code and appendices · legal_authorities
For the purpose of stabilizing, supporting, and protecting farm income and prices, of assisting in the maintenance of balanced and adequate supplies of agricultural commodities, products thereof, foods, feeds, and fibers (hereinafter collectively referred to as “agricultural commodities”), and of facilitating the orderly distribution of agricultural commodities, there is created a body corporate to be known as Commodity Credit Corporation (hereinafter referred to as the “Corporation”), which shall be an agency and instrumentality of the United States, within the Department of Agriculture, subject to the general supervision and direction of the Secretary of Agriculture (hereinafter referred to as the “Secretary”).
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 714
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Federal law — U.S. Code and appendices · legal_authorities
The powers conferred under this chapter shall not be used to discourage the production of supplies of foods and fibers sufficient to maintain normal domestic human consumption as determined by the Secretary from the records of domestic human consumption in the years 1920 to 1929, inclusive, taking into consideration increased population quantities of any commodity that were forced into domestic consumption by decline in exports during such period, current trends in domestic consumption and exports of particular commodities, and the quantities of substitutes available for domestic consumption within any general class of food commodities. In carrying out the purposes of this chapter it shall be the duty of the Secretary to give due regard to the maintenance of a continuous and stable supply of agricultural commodities from domestic production adequate to meet consumer demand at prices fair to both producers and consumers.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1307
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Federal law — U.S. Code and appendices · legal_authorities
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 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 a
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 4001
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Source** The Secretary shall provide the price support authorized or required herein through the Commodity Credit Corporation and other means available to him.
**(b) Authority of Secretary; factors considered** Except as otherwise provided in this Act, the amounts, terms, and conditions of price support operations and the extent to which such operations are carried out, shall be determined or approved by the Secretary. The following factors shall be taken into consideration in determining, in the case of any commodity for which price support is discretionary, whether a price-support operation shall be undertaken and the level of such support and, in the case of any commodity for which price support is mandatory, the level of support in excess of the minimum level prescribed for such commodity: (1) the supply of the commodity in relation to the demand therefor, (2) the price levels at which other commodities are being supported and, in the case of feed grains, the feed values of such grains in relation to corn, (3) the availability of funds, (4) the perishability of the commodity, (5) the importance of the commodity to agriculture and the national economy, (6) the ability to dispose of stocks acquired through a price-support operation, (7) the need for offsetting temporary losses of export markets, (8) the ability and willingness of producers to keep supplies in line with demand and (9), in the case of upland cotton, changes in the cost of producing such cotton.
**(c) Compliance by producer; program for diverted acres** Compliance by the producer with acreage allotments, production goals and marketing practices (including marketing quotas when authorized by law), prescribed by the Secretary, may be required as a condition of eligibility for price support. In admi
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1421
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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
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1310a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Commodity Credit Corporation may sell any farm commodity owned or controlled by the Corporation at any price not prohibited by this section.
**(b) Inventories** In determining sales policies for basic agricultural commodities or storable nonbasic commodities, the Corporation should consider the establishment of such policies with respect to prices, terms, and conditions as the Corporation determines will not discourage or deter manufacturers, processors, and dealers from acquiring and carrying normal inventories of the commodity of the current crop.
**(c) Sales price restrictions**
(1) **In general** — Except as otherwise provided in this section, the Corporation shall not sell any basic agricultural commodity or storable nonbasic commodity at less than 115 percent of the lower of—
(A) the current national average price support loan rate for the commodity adjusted for the current market differentials reflecting grade, quality, location, reasonable carrying charges, and other factors determined appropriate by the Corporation; or
(B) the loan repayment level.
(2) **Extra long staple cotton** — The Corporation may sell extra long staple cotton for unrestricted use at such price as the Corporation determines is appropriate to maintain and expand export and domestic markets.
(3) **Oilseeds** — The Corporation shall not sell oilseeds at less than the lower of—
(A) 105 percent of the current national average price support loan rate for the oilseed, adjusted for the current market differentials reflecting grade, quality, location, reasonable carrying charges, and other factors determined appropriate by the Corporation; or
(B) 115 percent of the loan repayment level.
(4) **Wheat and feed grains** — Whenever the producer reserve program fo
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1427
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In-kind payments by Secretary** In making in-kind payments under any of the annual programs for wheat, feed grains, upland cotton, or rice (other than negotiable marketing certificates for upland cotton or rice), the Secretary may—
(1) acquire and use like commodities that have been pledged to the Commodity Credit Corporation as security for price support loans, including loans made to producers under [section 1445e of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1445e&num=0&edition=prelim); and
(2) use other like commodities owned by the Commodity Credit Corporation.
**(b) Methods of payments** The Secretary may make in-kind payments—
(1) by delivery of the commodity to the producer at a warehouse or other similar facility, as determined by the Secretary;
(2) by the transfer of negotiable warehouse receipts;
(3) by the issuance of negotiable certificates which the Commodity Credit Corporation shall redeem for a commodity in accordance with regulations prescribed by the Secretary; or
(4) by such other methods as the Secretary determines appropriate to enable the producer to receive payments in an efficient, equitable, and expeditious manner so as to ensure that the producer receives the same total return as if the payments had been made in cash.
**(c) Commodity certificates** The Secretary shall pay interest on the cash redemption of a commodity certificate issued by the Secretary to a producer who holds the certificate for at least 150 days. This subsection shall not apply with respect to commodity certificates issued in connection with the export enhancement program or the marketing promotion program established under the Agricultural Trade Act of 1978.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1445k
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** As used in this section—
(1) The term “Secretary” means the Secretary of Agriculture.
(2) The term “processor” means any person engaged within the United States in the business of manufacturing grain into alcohol for use as a fuel either by itself or in combination with some other product.
(3) The terms “agricultural grain” and “grain” mean any agricultural commodity (A) that is suitable for processing into alcohol for use as a fuel, and (B) with respect to which a price support operation is in effect.
(4) The term “producer storage program” means the producer storage program provided for under section 1445e 11 See References in Text note below. of this title.
(5) The term “small scale biomass energy project” shall have the same meaning as defined in [section 8802(19) of title 42](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section8802/19&num=0&edition=prelim).
**(b) Loans on stored grain; processors eligible** To assist processors in obtaining a dependable supply of grain at reasonable prices, the Secretary may formulate and administer a program under which processors purchasing and storing grain needed by them for manufacturing into alcohol for use as a fuel may obtain a loan from the Secretary on such grain. Loans under this section may be made available only to processors that (1) operate small scale biomass energy projects financed in whole or in part by the United States Government or any agency thereof, and (2) as determined by the Secretary, are otherwise unable to obtain a dependable supply of grain at reasonable prices for use in such projects.
**(c) Terms and conditions of processor grain reserve program and producer storage program** Except as otherwise provided in this section, loans made under this sectio
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 4002
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Agricultural Adjustment Act of 1938**
(1) **Suspensions** — The following provisions of the Agricultural Adjustment Act of 1938 [[7 U.S.C. 1281](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1281&num=0&edition=prelim) et seq.] shall not be applicable to the 1996 through 2001 crops of loan commodities, peanuts, and sugar and shall not be applicable to milk during the period beginning on April 4, 1996, and ending on December 31, 2002:
(A) Parts II through V of subtitle B of title III ([7 U.S.C. 1326–135](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1326–135&num=0&edition=prelim)1) [[7 U.S.C. 1321](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1321&num=0&edition=prelim) et seq., 1331 et seq., 1341 et seq., 1351].
(B) Subsections (a) through (j) of section 358 ([7 U.S.C. 1358](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1358&num=0&edition=prelim)).11 See References in Text note below.
(C) Subsections (a) through (h) of section 358a ([7 U.S.C. 1358a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1358a&num=0&edition=prelim)).1
(D) Subsections (a), (b), (d), and (e) of section 358d ([7 U.S.C. 1359](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1359&num=0&edition=prelim)).1
(E) Part VII of subtitle B of title III ([7 U.S.C. 1359aa–135](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1359aa–135&num=0&edition=prelim)9jj).
(F) In the case of peanuts, part I of subtitle C of title III ([7 U.S.C. 1361–136](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1361–136&num=0&edition=prelim)8).
(G) In the case of upland cotton, section
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 7301
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