7 U.S.C. § 7286 — Commodity certificates

Page 1992 TITLE 7—AGRICULTURE § 7285 1 So in original. Probably should not be capitalized. classification of this Act to the Code, see Short Title note set out under section 9001 of this title and Tables. The Commodity Credit Corporation Charter Act, re- ferred to in subsec. (c), is act June 29, 1948, ch. 704, 62 Stat. 1070, which is classified generally to subchapter II (§ 714 et seq.) of chapter 15 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 714 of title 15 and Tables. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2014—Subsecs. (a), (b)(3), (c). Pub. L. 113–79 sub- stituted ‘‘title I of the Food, Conservation, and Energy Act of 2008, and title I of the Agricultural Act of 2014’’ for ‘‘and title I of the Food, Conservation, and Energy Act of 2008’’. 2008—Subsecs. (a), (b)(3), (c). Pub. L. 110–246, § 1606, substituted ‘‘title I of the Farm Security and Rural In- vestment Act of 2002, and title I of the Food, Conserva- tion, and Energy Act of 2008’’ for ‘‘and title I of the Farm Security and Rural Investment Act of 2002’’. 2002—Subsecs. (a), (b)(3), (c). Pub. L. 107–171 sub- stituted ‘‘this chapter and title I of the Farm Security and Rural Investment Act of 2002’’ for ‘‘this chapter’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. § 7285. Commodity Credit Corporation sales price restrictions (a) General sales authority The Commodity Credit Corporation may sell any commodity owned or controlled by the Cor- poration at any price that the Secretary deter- mines will maximize returns to the Corporation. (b) Nonapplication of sales price restrictions Subsection (a) shall not apply to— (1) a sale for a new or byproduct use; (2) a sale of peanuts or oilseeds for the ex- traction of oil; (3) a sale for seed or feed if the sale will not substantially impair any loan program; (4) a sale of a commodity that has substan- tially deteriorated in quality or as to which there is a danger of loss or waste through dete- rioration or spoilage; (5) a sale for the purpose of establishing a claim arising out of a contract or against a person who has committed fraud, misrepresen- tation, or other wrongful act with respect to the commodity; (6) a sale for export, as determined by the Corporation; and (7) a sale for other than a primary use. (c) Presidential disaster areas (1) In general Notwithstanding subsection (a), on such terms and conditions as the Secretary may consider in the public interest, the Corpora- tion may make available any commodity or product owned or controlled by the Corpora- tion for use in relieving distress— (A) in any area in the United States (in- cluding the Virgin Islands) declared by the President to be an acute distress area be- cause of unemployment or other economic cause, if the President finds that the use will not displace or interfere with normal mar- keting of agricultural commodities; and (B) in connection with any major disaster determined by the President to warrant as- sistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). (2) Costs Except on a reimbursable basis, the Corpora- tion shall not bear any costs in connection with making a commodity available under paragraph (1) beyond the cost of the com- modity to the Corporation incurred in— (A) the storage of the commodity; and (B) the handling and transportation costs in making delivery of the commodity to des- ignated agencies at 1 or more central loca- tions in each State or other area. (d) Efficient operations Subsection (a) shall not apply to the sale of a commodity the disposition of which is desirable in the interest of the effective and efficient con- duct of the operations of the Corporation be- cause of the small quantity of the commodity involved, or because of the age, location, or questionable continued storability of the com- modity. (Pub. L. 104–127, title I, § 165, Apr. 4, 1996, 110 Stat. 936.) Editorial Notes REFERENCES IN TEXT The Robert T. Stafford Disaster Relief and Emer- gency Assistance Act, referred to in subsec. (c)(1)(B), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classi- fied principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classi- fication of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables. § 7286. Commodity certificates (a) In general In making in-kind payments under subchapter III of this chapter, title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], and Subtitle 1 B of title I of the Agricultural Act of 2014 [7 U.S.C. 9031 et seq.], the Commodity Credit Corporation may— (1) acquire and use commodities that have been pledged to the Commodity Credit Cor- poration as collateral for loans made by the Corporation; (2) use other commodities owned by the Commodity Credit Corporation; and (3) redeem negotiable marketing certificates for cash under terms and conditions estab- lished by the Secretary. Page 1993 TITLE 7—AGRICULTURE § 7287 (b) Methods of payment The Commodity Credit Corporation may make in-kind payments— (1) by delivery of the commodity at a ware- house or other similar facility; (2) by the transfer of negotiable warehouse receipts; (3) by the issuance of negotiable certificates, which the Commodity Credit Corporation shall exchange for a commodity owned or con- trolled by the Corporation in accordance with regulations promulgated by the Corporation; or (4) by such other methods as the Commodity Credit Corporation determines appropriate to promote the efficient, equitable, and expedi- tious receipt of the in-kind payments so that a person receiving the payments receives the same total return as if the payments had been made in cash. (c) Administration (1) Form At the option of a producer, the Commodity Credit Corporation shall make negotiable cer- tificates authorized under subsection (b)(3) available to the producer, in the form of pro- gram payments or by sale, in a manner that the Corporation determines will encourage the orderly marketing of commodities pledged as collateral for loans made to producers under subchapter III of this chapter, title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], and Subtitle 1 B of title I of the Agricultural Act of 2014 [7 U.S.C. 9031 et seq.]. (2) Transfer A negotiable certificate issued in accordance with this subsection may be transferred to an- other person in accordance with regulations promulgated by the Secretary. (3) Application of authority Beginning with the 2015 crop marketing year, the Secretary shall carry out paragraph (1) under the same terms and conditions as were in effect for the 2008 crop year for loans made to producers under subtitle B [7 U.S.C. 8731 et seq.] of title I of the Food, Conserva- tion, and Energy Act of 2008 (7 U.S.C. 8701 et seq.). (Pub. L. 104–127, title I, § 166, as added Pub. L. 106–78, title VIII, § 812, Oct. 22, 1999, 113 Stat. 1181; amended Pub. L. 107–171, title I, § 1608, May 13, 2002, 116 Stat. 218; Pub. L. 110–234, title I, § 1607, May 22, 2008, 122 Stat. 1018; Pub. L. 110–246, § 4(a), title I, § 1607, June 18, 2008, 122 Stat. 1664, 1746, Pub. L. 114–113, div. A, title VII, § 740, Dec. 18, 2015, 129 Stat. 2281.) Editorial Notes REFERENCES IN TEXT The Farm Security and Rural Investment Act of 2002, referred to in subsecs. (a) and (c)(1), is Pub. L. 107–171, May 13, 2002, 116 Stat. 134. Title I of the Act is classified principally to chapter 106 (§ 7901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 7901 of this title and Tables. The Food, Conservation, and Energy Act of 2008, re- ferred to in subsecs. (a) and (c)(1), (3), is Pub. L. 110–246, June 18, 2008, 122 Stat. 1651. Title I of the Act is classi- fied principally to chapter 113 (§ 8701 et seq.) of this title. Subtitle B of title I of the Act is classified gen- erally to subchapter II (§ 8731 et seq.) of chapter 113 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 8701 of this title and Tables. The Agricultural Act of 2014, referred to in subsecs. (a) and (c)(1), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649. Title I of the Act is classified principally to chapter 115 (§ 9001 et seq.) of this title. Subtitle B of title I of the Act is classified generally to subchapter II (§ 9031 et seq.) of chapter 115 of this title. For complete classi- fication of this Act to the Code, see Short Title note set out under section 9001 of this title and Tables. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2015—Subsecs. (a), (c)(1). Pub. L. 114–113, § 740(1), sub- stituted ‘‘title I of the Food, Conservation, and Energy Act of 2008, and Subtitle B of title I of the Agricultural Act of 2014’’ for ‘‘and title I of the Food, Conservation, and Energy Act of 2008’’. Subsec. (c)(3). Pub. L. 114–113, § 740(2), amended par. (3) generally. Prior to amendment, text read as follows: ‘‘The authority to carry out paragraph (1) terminates effective ending with the 2009 crop year.’’ 2008—Subsecs. (a), (c)(1). Pub. L. 110–246, § 1607(1), sub- stituted ‘‘, title I of the Farm Security and Rural In- vestment Act of 2002, and title I of the Food, Conserva- tion, and Energy Act of 2008’’ for ‘‘and subtitle B and C of title I of the Farm Security and Rural Investment Act of 2002’’. Subsec. (c)(3). Pub. L. 110–246, § 1607(2), added par. (3). 2002—Subsecs. (a), (c)(1). Pub. L. 107–171 substituted ‘‘subchapter III of this chapter and subtitle B and C of title I of the Farm Security and Rural Investment Act of 2002’’ for ‘‘subchapter III of this chapter’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. § 7287. Commodity Credit Corporation storage payments (a) Initial crop years Notwithstanding any other provision of law, for each of the 2008 through 2011 crop years, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than— (1) in the case of refined sugar, 15 cents per hundredweight of refined sugar per month; and (2) in the case of raw cane sugar, 10 cents per hundredweight of raw cane sugar per month. (b) Subsequent crop years For each of the 2012 and subsequent crop years, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in the same manner as was used on the day be- fore the date of enactment of this section. (Pub. L. 104–127, title I, § 167, as added Pub. L. 110–234, title I, § 1405, May 22, 2008, 122 Stat. 990,