7 U.S.C. § 1445k — Payments in commodities

Page 773 TITLE 7—AGRICULTURE § 1445k ‘‘(A) the producers received an advance deficiency payment for the 1988 or 1989 crop of a commodity under section 107C(a) of the Agricultural Act of 1949 (7 U.S.C. 1445b–2(a)); ‘‘(B) the producers are required to provide a refund of at least $1,500 under subparagraph (G) or (H) of sec- tion 107C(a)(2) of such Act with respect to the ad- vance deficiency payments; ‘‘(C) the producers reside in a county, or in a coun- ty that is contiguous to a county, where the Sec- retary of Agriculture has found that farming, ranch- ing, or aquaculture operations have been substan- tially affected as evidenced by a reduction in normal production for the county of at least 30 percent dur- ing two of the three crop years 1988, 1989, and 1990 by a natural disaster or by a major disaster or emer- gency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); and ‘‘(D) the total quantity of the 1988 or 1989 crop of the commodity that the producers were able to har- vest is less than the result of multiplying 65 percent of the farm payment yield established by the Sec- retary for the crop by the sum of the acreage planted for the harvest and the acreage prevented from being planted (because of the disaster or emergency re- ferred to in subparagraph (C)) for the crop.’’ ADVANCE DEFICIENCY PAYMENTS Pub. L. 99–509, title I, § 1021, Oct. 21, 1986, 100 Stat. 1877, required Secretary of Agriculture to make ad- vance deficiency payments available for 1987 crops of wheat, feed grains, upland cotton, and rice, and pro- vided that percentage of projected payment rate used in computing such payments shall not be less than (1) 40 percent in the case of wheat and feed grains, and (2) 30 percent in the case of rice and upland cotton. § 1445k. Payments in commodities (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 Sec- retary 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; 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 pro- ducer 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 cer- tificate for at least 150 days. This subsection shall not apply with respect to commodity cer- tificates issued in connection with the export enhancement program or the marketing pro- motion program established under the Agricul- tural Trade Act of 1978. (Oct. 31, 1949, ch. 792, title I, § 115, formerly § 107E, as added Pub. L. 99–198, title X, § 1005, Dec. 23, 1985, 99 Stat. 1448; renumbered § 115 and amended Pub. L. 101–624, title XI, §§ 1122(a), 1161(a)(1), Nov. 28, 1990, 104 Stat. 3503, 3520.) Editorial Notes REFERENCES IN TEXT The Agricultural Trade Act of 1978, referred to in sub- sec. (c), is Pub. L. 95–501, Oct. 21, 1978, 92 Stat. 1685, as amended generally by Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3668, which is classified generally to chapter 87 (§ 5601 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5601 of this title and Tables. CODIFICATION Section was classified to section 1445b–4 of this title prior to its renumbering by Pub. L. 101–624. AMENDMENTS 1990—Subsec. (c). Pub. L. 101–624, § 1122(a), added sub- sec. (c). 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. INAPPLICABILITY OF SECTION Section inapplicable to 2014 through 2018 crops of cov- ered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see section 9092(b)(7) of this title. Section inapplicable to 2008 through 2012 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see section 8782(b)(7) of this title. Section inapplicable to 2002 through 2007 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see section 7992(b)(7) of this title. Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(G) of this title. REDEMPTION OF COMMODITY CERTIFICATES Pub. L. 101–624, title XI, § 1122(b), Nov. 28, 1990, 104 Stat. 3503, provided that: ‘‘(1) IN GENERAL.—A subsequent holder of a com- modity certificate issued by the Commodity Credit Corporation shall be allowed to exchange the expired commodity certificate under the same rules that apply to an original holder of the certificate. ‘‘(2) APPLICATION AND REDEMPTION LIMITATIONS.—This subsection shall only apply during the 180-day period beginning on the date of enactment of this Act [Nov. 28, 1990]. No person may redeem more than $1,000 worth of certificates under this subsection. ‘‘(3) REDEMPTION LIMITATIONS.—In no event shall a person receive a payment from the Commodity Credit Corporation for a certificate that is redeemed under this subsection in an amount greater than the price paid for the certificate by the person. No expired cer- Page 774 TITLE 7—AGRICULTURE § 1446 1 See References in Text note below. tificate shall be exchanged under this section if the owner purchased the certificate after January 1, 1990.’’ SUBCHAPTER III—NONBASIC AGRICULTURAL COMMODITIES § 1446. Price support levels for designated nonbasic agricultural commodities (a) The Secretary is authorized and directed to make available (without regard to the provi- sions of sections 1447 to 1449 of this title) price support to producers for oilseeds (including soy- beans, sunflower seed, canola, rapeseed, saf- flower, flaxseed, mustard seed, and such other oilseeds as the Secretary may determine), sun- flower seeds, honey, milk, sugar beets, and sug- arcane in accordance with this subchapter. (b) The price of honey shall be supported through loans, purchases, or other operations at a level not in excess of 90 per centum nor less than 60 per centum of the parity price thereof; and the price of tung nuts for each crop of tung nuts through the 1976 crop shall be supported through loans, purchases, or other operations at a level not in excess of 90 per centum nor less than 60 per centum of the parity price therefor: Provided, That in any crop year through the 1976 crop year in which the Secretary determines that the domestic production of tung oil will be less than the anticipated domestic demand for such oil, the price of tung nuts shall be sup- ported at not less than 65 per centum of the par- ity price therefor. (c) Except as provided in section 1446e 1 of this title, the price of milk shall be supported at such level not in excess of 90 per centum nor less than 75 per centum of the parity price therefor as the Secretary determines necessary in order to assure an adequate supply of pure and whole- some milk to meet current needs, reflect changes in the cost of production, and assure a level of farm income adequate to maintain pro- ductive capacity sufficient to meet anticipated future needs. Such price support shall be pro- vided through the purchase of milk and the products of milk. (d) Notwithstanding any other provision of law— (1)(A) During the period beginning on Janu- ary 1, 1986, and ending on December 31, 1990, the price of milk shall be supported as pro- vided in this subsection. (B) During the period beginning on January 1, 1986, and ending on December 31, 1986, the price of milk shall be supported at a rate equal to $11.60 per hundredweight for milk con- taining 3.67 percent milkfat. (C)(i) During the period beginning on Janu- ary 1, 1987, and ending on September 30, 1987, the price of milk shall be supported at a rate equal to $11.35 per hundredweight for milk containing 3.67 percent milkfat. (ii) Except as provided in subparagraph (D), during the period beginning on October 1, 1987, and ending on December 31, 1990, the price of milk shall be supported at a rate equal to $11.10 per hundredweight for milk containing 3.67 percent milkfat. (D)(i) Subject to clause (ii), if for each of the calendar years 1988 and 1990, the level of pur- chases of milk and the products of milk under this subsection (less sales under section 1427 of this title for unrestricted use), as estimated by the Secretary on January 1 of such cal- endar year, will exceed 5,000,000,000 pounds (milk equivalent), on January 1 of such cal- endar year, the Secretary shall reduce by 50 cents the rate of price support for milk as in effect on such date. (ii) The rate of price support for milk may not be reduced under clause (i) unless— (I) the milk production termination pro- gram under paragraph (3) achieved a reduc- tion in the production of milk by partici- pants in the program of at least 12,000,000,000 pounds during the 18 months of the program; or (II) the Secretary submits to Congress a certification, including a statement of facts in support of the certification of the Sec- retary, that reasonable contract offers were extended by the Secretary under such pro- gram but such offers were not accepted by a sufficient number of producers making rea- sonable bids for contracts to achieve such a reduction in production. (E) If for any of the calendar years 1988, 1989, and 1990, the level of purchases of milk and the products of milk under this subsection (less sales under section 1427 of this title for unre- stricted use), as estimated by the Secretary on January 1 of such calendar year, will not ex- ceed 2,500,000,000 pounds (milk equivalent), the Secretary shall increase by 50 cents the rate of price support for milk in effect on such date. (F) The price of milk shall be supported through the purchase of milk and the products of milk. (2)(A) Beginning after March 31, 1986, the Secretary shall provide for a reduction to be made in the price received by producers for all milk produced in the United States and mar- keted by producers for commercial use. (B) Except as provided in subparagraphs (E) and (F), the amount of the reduction under subparagraph (A) in the price received by pro- ducers shall be— (i) the period beginning on April 1, 1986, and ending on December 31, 1986, 40 cents per hundredweight of milk marketed; and (ii) during the first 9 months of 1987, 25 cents per hundredweight of milk marketed. (C) The funds represented by the reduction in price, required under this paragraph to be applied to the marketings of milk by a pro- ducer, shall be collected and remitted to the Commodity Credit Corporation, at such time and in such manner as prescribed by the Sec- retary, by each person making payment to a producer for milk purchased from such pro- ducer, except that in the case of a producer who markets milk of the producer’s own pro- duction directly to consumers, such funds shall be remitted directly to the Corporation by such producer. (D) The funds remitted to the Corporation under this paragraph shall be considered as in- cluded in the payments to a producer of milk for purposes of the minimum price provisions of the Agricultural Adjustment Act (7 U.S.C.