7 U.S.C. § 608 — Powers of Secretary

Page 456 TITLE 7—AGRICULTURE § 605 or both of the methods provided in this section for obtaining funds for the purposes hereinabove enumerated. (e) The Secretary of Agriculture is authorized to use in his discretion any funds obtained by him pursuant to the provisions of subsection (a) or (b) of this section for making advances to any agency which may have been or may be estab- lished by the Secretary of Agriculture for the handling, carrying, insuring, or marketing of any cotton acquired by the Secretary of Agri- culture, to enable any such agency to perform, exercise, and discharge any of the duties, privi- leges, and functions which such agency may be authorized to perform, exercise, or discharge. (f) The proceeds derived from the sale of cot- ton shall be held for the Secretary of Agri- culture by the Treasurer of the United States in a special deposit account and shall be used by the Secretary of Agriculture to discharge the obligations incurred under authority of sections 603, 604, and 607 of this title. Whenever any cot- ton shall be marketed the net proceeds (after discharge of other obligations incurred with re- spect thereto) derived from the sale thereof shall be used, to the extent required, to reim- burse the Treasury for such portion of the funds hereby provided for as shall have been used, which shall be covered into the Treasury as a miscellaneous receipt. If when all of the cotton acquired by the Secretary of Agriculture shall have been marketed and all of the obligations incurred with respect to such cotton shall have been discharged, and the Treasury reimbursed for any and all sums which may have been ad- vanced pursuant to subsection (b), there shall remain any balance in the hands of the Sec- retary of Agriculture, such balance shall be cov- ered into the Treasury as miscellaneous re- ceipts. The word ‘‘obligation’’ when used in this sec- tion shall include (without being limited to) ad- ministrative expenses, warehouse charges, in- surance, salaries, interest, costs, commissions, and other expenses incident to handling, car- rying, insuring, and marketing of said cotton. (May 12, 1933, ch. 25, title I, § 4, 48 Stat. 33; June 19, 1934, ch. 648, title II, § 1, 48 Stat. 1058; Aug. 24, 1935, ch. 641, §§ 35, 36, 49 Stat. 775.) Editorial Notes AMENDMENTS 1935—Subsec. (b). Act Aug. 24, 1935, § 35, struck out ‘‘to be available until March 1, 1936’’ after ‘‘$100,000,000’’ and inserted last sentence relating to availability of the sum of $100,000,000. Subsec. (f). Act Aug. 24, 1935, § 36, inserted last par. defining ‘‘obligation’’. 1934—Subsec. (a). Act June 19, 1934, inserted ‘‘may in his discretion’’ after ‘‘or control and’’. Subsecs. (b) to (f). Act June 19, 1934, added subsecs. (b) to (f). § 605. Repealed. June 30, 1947, ch. 166, title II, § 206(d), 61 Stat. 208 Section, acts May 12, 1933, ch. 25, title I, § 5, 48 Stat. 33; June 19, 1934, ch. 648, title II, § 1, 48 Stat. 1059, re- lated to loans from Reconstruction Finance Corpora- tion and warehouse receipts as collateral. § 606. Repealed. Aug. 24, 1935, ch. 641, § 34, 49 Stat. 775 Section, act May 12, 1933, ch. 25, title I, § 6, 48 Stat. 33, related to option contracts. § 607. Sale by Secretary; additional options; vali- dation of assignments; publication of infor- mation The Secretary shall sell cotton held or ac- quired by him pursuant to authority of this chapter at his discretion subject only to the conditions and limitations of this chapter: Pro- vided, That the Secretary shall have authority to enter into option contracts with producers of cotton to sell to or for the producers such cotton held and/or acquired by him in such amounts and at such prices and upon such terms and con- ditions as he, the Secretary, may deem advis- able, and such option contracts may be trans- ferred or assigned in such manner as the Sec- retary of Agriculture may prescribe. Notwithstanding any provisions contained in option contracts heretofore issued and/or any provision of law, assignments made prior to Jan- uary 11, 1934, of option contracts exercised prior to January 18, 1934, shall be deemed valid upon determination by the Secretary that such as- signment was an assignment in good faith of the full interest in such contract and for full value and is free from evidence of fraud or speculation by the assignee. Notwithstanding any provision of existing law, the Secretary of Agriculture may, in the admin- istration of this chapter, make public such in- formation as he deems necessary in order to ef- fectuate the purposes of this chapter. (May 12, 1933, ch. 25, title I, § 7, 48 Stat. 34; June 16, 1933, ch. 90, title II, § 221, 48 Stat. 210; Aug. 24, 1935, ch. 641, § 33, 49 Stat. 775.) Editorial Notes AMENDMENTS 1935—Act Aug. 24, 1935, among other changes, inserted provisions as to presumption of validity of assignments made prior to Jan. 11, 1934 of option contracts exercised prior to Jan. 18, 1934 if in good faith, for full value, and without fraud or speculation by the assignee. 1933—Act June 16, 1933, amended section generally. SUBCHAPTER III—COMMODITY BENEFITS § 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 suc- ceeding 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 Page 457 TITLE 7—AGRICULTURE § 608 (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, administra- tively practicable and best calculated to effec- tuate the declared policy of this chapter. (2) Agreements for adjustment of acreage or pro- duction 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 pur- suant to subsection (1) of this section, will tend to effectuate the declared policy of this chapter, and to make such adjustment pro- gram practicable to operate and administer, and (b) For rental or benefit payments in con- nection 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 pro- gram practicable to operate and administer, to be paid out of any moneys available for such payments or, subject to the consent of the pro- ducer, 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 pursu- ant 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 prod- uct 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 exer- cise of powers Whenever, during a period during which any of the powers conferred in subsection (2) or (3) 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 mar- keting 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), and no combination of such powers, would, if exer- cised, 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 sub- section, in connection with the exercise of any of the powers conferred upon him under sub- sections (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 sec- tion, the Secretary of Agriculture shall hold one or more hearings, and give due notice and oppor- tunity for interested parties to be heard. (6) Commodity in which payment made No payment under this chapter made in an ag- ricultural 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 con- sidered 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 satisfac- tion 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 fore- going rental or benefit payments, the Secretary of Agriculture shall make such payments, rep- resenting in whole or in part such tax, as the Secretary deems fair and reasonable, to pro- ducers 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 Agri- culture, 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 sub- Page 458 TITLE 7—AGRICULTURE § 608–1 section, upon such terms and conditions as the Secretary determines will best effectuate the declared policy of this chapter, that the pro- ducer may pledge for production credit in whole or in part his right to any rental or benefit pay- ments under the terms of such agreement and that such producer may designate therein a payee to receive such rental or benefit pay- ments. (9) Advances of payments on stored nonperish- able commodity Under regulations of the Secretary of Agri- culture requiring adequate facilities for the storage of any nonperishable agricultural com- modity on the farm, inspection and measure- ment of any such commodity so stored, and the locking and sealing thereof, and such other reg- ulations as may be prescribed by the Secretary of Agriculture for the protection of such com- modity and for the marketing thereof, a reason- able 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 Sec- retary of Agriculture determines will reasonably compensate for the cost of inspection and seal- ing but no deduction may be made for interest. (May 12, 1933, ch. 25, title I, § 8, 48 Stat. 34; Apr. 7, 1934, ch. 103, § 7, 48 Stat. 528; May 9, 1934, ch. 263, § 14, 48 Stat. 676; Mar. 18, 1935, ch. 32, § 7, 49 Stat. 46; Aug. 24, 1935, ch. 641, §§ 2, 4–7, 49 Stat. 751, 753–762.) Editorial Notes 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 sub- sections. 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 Ad- justment 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 sec- tion 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 sec- tions 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 sec- tion 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. Statutory Notes and Related Subsidiaries VALIDITY OF AGREEMENTS AND LICENSES PRESERVED UNDER 1935 ACT Act Aug. 24, 1935, ch. 641, § 38, 49 Stat. 776, provided that: ‘‘Nothing contained in this Act [see Tables for classification] shall (a), invalidate any marketing agreement or license in existence on the date of the en- actment 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 pro- gram the initiation of which has been formally ap- proved by the Secretary of Agriculture under such sec- tion 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 agree- ment, or any voluntary arrangements or further agree- ments which the Secretary finds necessary or desirable in order to complete or terminate such program pursu- ant to the declared policy of the Agricultural Adjust- ment 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 agricul- tural commodity to be made after July 1, 1937, except pursuant to the provisions of section 8 of the Agricul- tural Adjustment Act as amended by this Act.’’ § 608–1. Omitted Editorial Notes CODIFICATION Section, act July 2, 1940, ch. 521, § 9, 54 Stat. 729, which related to adjustments between payee and third persons, was omitted as executed. § 608a. Enforcement of chapter (1) to (4) Omitted (5) Forfeitures Any person exceeding any quota or allotment fixed for him under this chapter by the Sec- retary of Agriculture and any other person knowingly participating or aiding in the exceed- ing of such quota or allotment shall forfeit to the United States a sum equal to the value of such excess at the current market price for such commodity at the time of violation, which for- feiture shall be recoverable in a civil suit brought in the name of the United States. (6) Jurisdiction of district courts The several district courts of the United States are vested with jurisdiction specifically to enforce, and to prevent and restrain any per- son from violating any order, regulation, or agreement, heretofore or hereafter made or issued pursuant to this chapter, in any pro- ceeding now pending or hereafter brought in said courts. (7) Duties of United States attorneys; investiga- tion of violations by Secretary; hearings Upon the request of the Secretary of Agri- culture, it shall be the duty of the several