7 U.S.C. § 1444 — Cotton price support levels

Page 741 TITLE 7—AGRICULTURE § 1444 1 See References in Text note below. (b) Referendum of producers of corn Not later than December 15, 1956, the Sec- retary shall conduct a referendum of producers of corn in 1956 in the commercial corn-producing area to determine whether such producers favor a price-support program as provided in sub- section (c) of this section for the 1957 and subse- quent crops in lieu of acreage allotments as pro- vided in the Agricultural Adjustment Act of 1938, as amended [7 U.S.C. 1281 et seq.], and price support as provided in section 1441 of this title. (c) Restriction on acreage allotment of corn; price support level Notwithstanding any other provision of law, if two-thirds or more of the producers voting in the referendum conducted pursuant to sub- section (b) favor a price-support program as pro- vided in this subsection, no acreage allotment of corn shall be established for the commercial corn-producing area for any county, or for any farm, with respect to the 1957 and subsequent crops, and price support made available for such crops by Commodity Credit Corporation shall be at such level as the Secretary determines will assist producers in marketing corn in the nor- mal channels of trade but not encourage the un- economic production of corn. (d) Price support level for 1956 and 1957 crops of grain sorghums, barley, rye, oats, and corn Notwithstanding any other provision of law, (1) the level of price support for the 1956 crop of grain sorghums, barley, rye, and oats, respec- tively, shall be 76 per centum of the parity price for the commodity as of May 1, 1956, (2) the level of price support for corn produced outside the commercial corn-producing area, for any crop for which base acreages are in effect (except as provided in (3) below), shall be 821⁄2 per centum of the level of price support for corn in the com- mercial corn-producing area to producers com- plying with acreage limitations, and (3) if price support is made available for the 1957 crop of corn in the commercial corn-producing area to producers not complying with acreage limita- tions, price support shall be made available for the 1957 crop of grain sorghums, barley, rye, oats, and corn produced outside the commercial corn-producing area, respectively, at a level, not less than 70 per centum of the parity price as of the beginning of the marketing year, deter- mined by the Secretary to be fair and reasonable in relation to the level at which price support is made available for corn in the commercial corn- producing area to producers not complying with acreage limitations, taking into consideration the normal price relationships between such commodity and corn in the commercial area, the feed value of such commodity in relation to corn, the supply of such commodity in relation to the demand therefor, and the ability to dis- pose of stocks of such commodity acquired through price support programs. (May 28, 1956, ch. 327, title III, § 308, 70 Stat. 206.) Editorial Notes REFERENCES IN TEXT The Agricultural Adjustment Act of 1938, referred to in subsec. (b), is act Feb. 16, 1938, ch. 30, 52 Stat. 31, as amended, which is classified principally to chapter 35 (§ 1281 et seq.) of this title. For complete classification of this Act to the Code, see section 1281 of this title and Tables. CODIFICATION Section was enacted as part of the Agricultural Act of 1956, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For com- plete classification of the 1949 Act to the Code, see Short Title note set out under section 1421 of this title and Tables. Statutory Notes and Related Subsidiaries REFERENDUM OF PRODUCERS OF CORN The referendum provided for in subsec. (b) of this sec- tion was held on Dec. 11, 1956, and the required two- thirds vote was not obtained in favor of the price sup- port program provided for in subsec. (c) of this section. See 22 F.R. 480. § 1443. Omitted Editorial Notes CODIFICATION Section, act Oct. 31, 1949, ch. 792, title I, § 102, as added Aug. 28, 1958, Pub. L. 85–835, title I, § 101, 72 Stat. 988, related to acreage allotment and price support lev- els for the 1959 and 1960 crops of upland cotton. § 1444. Cotton price support levels (a) Basic support levels for 1961 and subsequent years Notwithstanding the provisions of section 1441 of this title, price support to cooperators for each crop of upland cotton, beginning with the 1961 crop, for which producers have not dis- approved marketing quotas shall be at such level not more than 90 per centum of the parity price therefor nor less than the minimum level prescribed below as the Secretary determines appropriate after consideration of the factors specified in section 1421(b) of this title. For the 1961 crop the minimum level shall be 70 per cen- tum of the parity price therefor, and for each subsequent crop the minimum level shall be 65 per centum of the parity price therefor: Pro- vided, That the price support for the 1965 crop shall be a national average support price which reflects 30 cents per pound for Middling one-inch cotton. Price support in the case of noncoopera- tors and in case marketing quotas are dis- approved shall be as provided in section 1441(d)(3) and (5) 1 of this title. (b) Additional support levels for 1964 and 1965 If producers have not disapproved marketing quotas, the Secretary shall provide additional price support on the 1964 and 1965 crops of up- land cotton to cooperators on whose farms the acreage planted to upland cotton for harvest does not exceed the farm domestic allotment es- tablished under section 1350 of this title. Such additional support shall be at a level up to 15 per centum in excess of the basic level of support es- tablished under subsection (a) and shall be pro- vided on the normal yield of the acreage planted for harvest within the farm domestic allotment. For purposes of this subsection, an acreage on Page 742 TITLE 7—AGRICULTURE § 1444 the farm which the Secretary finds was not planted to cotton in 1965 because of flood, drought, or other natural disaster shall be deemed by the Secretary to be an actual acreage of cotton planted on the farm for harvest, pro- vided such acreage is not subsequently devoted to any price supported crop for 1965. (c) Alternative operations for carrying out addi- tional price support; payment-in-kind certifi- cates: value, marketing assistance, redemp- tion, and deductions after thirty day period In order to keep upland cotton to the max- imum extent practicable in the normal channels of trade, any additional price support under sub- section (b) of this section may be carried out through the simultaneous purchase of cotton at the support price therefor under subsection (b) and the sale of such cotton at the support price therefor under subsection (a) or similar oper- ations, including loans under which the cotton would be redeemable by payment of the amount for which the cotton would be redeemable if the loan thereon had been made at the support price for such cotton under subsection (a), or pay- ments-in-kind through the issuance of certifi- cates which the Commodity Credit Corporation shall redeem for cotton under regulations issued by the Secretary. If such additional support is provided through the issuance of payment-in- kind certificates, such certificates shall have a value per pound of cotton equal to the difference between the level of support established under subsection (a) and the level of support estab- lished under subsection (b). The corporation may, under regulations prescribed by the Sec- retary, assist the producers and persons receiv- ing payment-in-kind certificates under this sec- tion and section 1348 of this title, in the mar- keting of such certificates at such time and in such manner as the Secretary determines will best effectuate the purposes of the program au- thorized by this section and such section 1348. In the case of any certificate not presented for re- demption within thirty days of the date of its issuance, reasonable costs of storage and other carrying charges as determined by the Secretary for the period beginning thirty days after its issuance and ending with the date of its presen- tation for redemption shall be deducted from the value of the certificate. (d) Price support and diversion payments for 1966 through 1970 crops (1) Notwithstanding any other provision of this Act, if producers have not disapproved mar- keting quotas, price support and diversion pay- ments shall be made available for the 1966 through 1970 crops of upland cotton as provided in this subsection. (2) Price support for each such crop of upland cotton shall be made available to cooperators through loans at such level, not exceeding a level which will reflect for Middling one-inch upland cotton at average location in the United States 90 per centum of the estimated average world market price for Middling one-inch upland cotton for the marketing year for such crop, as the Secretary determines will provide orderly marketing of cotton during the harvest season and will retain an adequate share of the world market for cotton produced in the United States taking into consideration the factors specified in section 1421(b) of this title: Provided, That the national average loan rate for the 1966 crop shall reflect 21 cents per pound for Middling one-inch upland cotton. (3) The Secretary also shall provide additional price support for each such crop through pay- ments in cash or in kind to cooperators at a rate not less than 9 cents per pound: Provided, That the rate shall be such that the amount obtained by— (i) multiplying the rate by the farm domes- tic acreage allotment percentage, and (ii) dividing the product thus obtained by the cooperator percentage established under section 1428(b) of this title, and (iii) adding the result thus obtained to the national average loan rate shall not be less than 65 per centum or more than 90 per centum of the parity price for cotton as of the month in which the payment rate pro- vided for by this paragraph is announced. Such payments shall be made on the quantity of cot- ton determined by multiplying the projected farm yield by the acreage planted to cotton within the farm domestic acreage allotment: Provided, That any such farm planting not less than 90 per centum of such domestic acreage al- lotment shall be deemed to have planted the en- tire amount of such allotment. An acreage on a farm in any such year which the Secretary finds was not planted to cotton because of drought, flood, or other natural disaster shall be deemed to be planted to cotton for purposes of payments under this subsection if such acreage is not sub- sequently devoted to any other crop for which there are marketing quotas or voluntary adjust- ment programs in effect. (4) The Secretary shall make diversion pay- ments in cash or in kind in addition to the price support payments authorized in paragraph (3) to cooperators who reduce their cotton acreage by diverting a portion of their cotton acreage allot- ment from the production of cotton to approved conservation practices to the extent prescribed by the Secretary: Provided, That no reduction below the domestic acreage allotments estab- lished under section 1350 of this title shall be prescribed: Provided further, That payment under this paragraph shall be made available for di- verting to conserving uses that part of the acre- age allotment which must be diverted from cot- ton in order that the producer may qualify as a cooperator. The rate of payment for acreage re- quired to be diverted in order to qualify as a co- operator shall not be less than 25 per centum of the parity price for upland cotton as of the month in which such rate is announced. The rate of payment for additional acreage diverted shall be such rate as the Secretary determines to be fair and reasonable, but shall not exceed 40 per centum of such parity price. Payment at each applicable rate shall be made on the quan- tity of cotton determined by multiplying the acreage diverted from the production of cotton at such rate by the projected farm yield. In addi- tion to the foregoing payment, if any, payment at the rate applicable for acreage required to be diverted to qualify as a cooperator shall be made to producers on small farms as defined in sec- tion 1428(b) of this title who do not exceed their Page 743 TITLE 7—AGRICULTURE § 1444 farm acreage allotments on a quantity of cotton determined by multiplying an acreage equal to 35 per centum of such farm acreage allotment by the projected farm yield. (5) The Secretary may make not to exceed 50 per centum of the payments under this sub- section to producers in advance of determina- tion of performance and the balance of such pay- ments shall be made at such time as the Sec- retary may prescribe. (6) Where the farm operator elects to partici- pate in the diversion program authorized in this subsection and no acreage is planted to cotton on the farm, diversion payments shall be made at the rate established under paragraph (4) for acreage required to be diverted to qualify as a cooperator on the quantity of cotton determined by multiplying that part of the farm acreage al- lotment required to be diverted to qualify as a cooperator by the projected farm yield, and the remainder of such allotment may be released under the provisions of section 1344(m)(2) of this title. The acreage on which payment is made under this paragraph shall be regarded as plant- ed to cotton for purposes of establishing future State, county, and farm acreage allotments, and farm bases. (7) Payments in kind under this subsection shall be made through the issuance of certifi- cates which the Commodity Credit Corporation shall redeem for cotton under regulations issued by the Secretary at a value per pound equal to not less than the current loan rate therefor. The Corporation may, under regulations prescribed by the Secretary, assist the producers in the marketing of such certificates at such times and in such manner as the Secretary determines will best effectuate the purposes of the program au- thorized by this subsection. (8) Payments under this subsection shall be conditioned on the farm having an acreage of approved conservation uses equal to the sum of (i) the reduction in cotton acreage required to qualify for such payments (hereinafter called ‘‘diverted acreage’’), and (ii) the average acreage of cropland on the farm devoted to designated soil-conserving crops or practices, including summer fallow and idle land, during a base pe- riod prescribed by the Secretary: Provided, That the Secretary may permit all or any part of such diverted acreage to be devoted to the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, and flaxseed, if he determines that such produc- tion is necessary to provide an adequate supply of such commodities, is not likely to increase the cost of the price support program, and will not adversely affect farm income, subject to the condition that payment under paragraph (4) or (6) with respect to diverted acreage devoted to any such crop shall be at a rate determined by the Secretary to be fair and reasonable, taking into consideration the use of such acreage for the production of such crops, but in no event shall the payment exceed one-half the rate which otherwise would be applicable if such acreage were devoted to conservation uses. (9) The acreage regarded as planted to cotton on any farm which qualifies for payment under this subsection except under paragraph (6) shall, for purposes of establishing future State, coun- ty, and farm acreage allotments and farm bases, be the farm acreage allotment established under section 1344 of this title, excluding adjustments under subsection (m)(2) thereof. (10) The Secretary shall provide adequate safe- guards to protect the interests of tenants and sharecroppers, including provision for sharing diversion payments on a fair and equitable basis under this subsection. The Secretary shall pro- vide for the sharing of price support payments among producers on the farm on the basis of their respective shares in the cotton crop pro- duced on the farm, or the proceeds therefrom, except that in any case in which the Secretary determines that such basis would not be fair and equitable, the Secretary shall provide for such sharing on such other basis as he may determine to be fair and equitable. (11) In any case in which the failure of a pro- ducer to comply fully with the terms and condi- tions of the programs formulated under this Act preclude the making of payments under this sec- tion, the Secretary may, nevertheless, make such payments in such amounts as he deter- mines to be equitable in relation to the serious- ness of the default. (12) Notwithstanding any other provision of this Act, if, as a result of limitations hereafter enacted with respect to price support under this subsection, the Secretary is unable to make available to all cooperators the full amount of price support to which they would otherwise be entitled under paragraphs (2) and (3) of this sub- section for any crop of upland cotton, (A) price support to cooperators shall be made available for such crop (if marketing quotas have not been disapproved) through loans or purchases at such level not less than 65 per centum nor more than 90 per centum of the parity price therefor as the Secretary determines appropriate; (B) in order to keep upland cotton to the maximum extent practicable in the normal channels of trade, such price support may be carried out through the simultaneous purchase of cotton at the sup- port price therefor and resale at a lower price or through loans under which the cotton would be redeemable by payment of a price therefor lower than the amount of the loan thereon; and (C) such resale or redemption price shall be such as the Secretary determines will provide orderly marketing of cotton during the harvest season and will retain an adequate share of the world market for cotton produced in the United States. (13) The provisions of section 590h(g) of title 16 (relating to assignment of payments), shall also apply to payments under this subsection. (14) The Commodity Credit Corporation is au- thorized to utilize its capital funds and other as- sets for the purpose of making the payments au- thorized in this subsection and to pay adminis- trative expenses necessary in carrying out this subsection. (e) Price support, diversion, and cropland set- aside program for crops beginning with 1971 crop (1) The Secretary shall upon presentation of warehouse receipts reflecting accrued storage charges of not more than 60 days make available for the 1971 through 1977 crops of upland cotton Page 744 TITLE 7—AGRICULTURE § 1444 to cooperators nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at such level as will re- flect the Middling one-inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States 90 per centum of the aver- age price of American cotton in world markets for such cotton for the three-year period ending July 31 in the year in which the loan level is an- nounced, except that if the loan rate so cal- culated is higher than the then current level of average world prices for American cotton of such quality, the Secretary is authorized to ad- just the current calculated loan rate for cotton to 90 per centum of the then current average world price. The average world price for such cotton for such preceding three-year period shall be determined by the Secretary annually pursu- ant to a published regulation which shall specify the procedures and the factors to be used by the Secretary in making the world price determina- tion. The loan level for any crop of upland cot- ton shall be determined and announced not later than November 1 of the calendar year preceding the marketing year for which such loan is to be effective. Notwithstanding the foregoing, if the carryover of upland cotton as of the beginning of the marketing year for any of the 1972 or 1973 crops exceeds 7.2 million bales, producers on any farm harvesting cotton of such crop from an acreage in excess of the base acreage allotment for such farm shall be entitled to loans and pur- chases only on an amount of the cotton of such crop produced on such farm determined by mul- tiplying the yield used in computing payments for such farm by the base acreage allotment for such farm. (2) Payments shall be made for each crop of cotton to the producers on each farm at a rate equal to the amount by which the higher of— (1) the average market price received by farmers for upland cotton during the calendar year which includes the first five months of the marketing year for such crop, as deter- mined by the Secretary, or (2) the loan level determined under para- graph (1) for such crop is less than the established price of 38 cents per pound in the case of the 1974 and 1975 crops, 38 cents per pound adjusted to reflect any change during the calendar year 1975 in the index of prices paid by farmers for production items, in- terest, taxes, and wage rates in the case of the 1976 crop, and the established price for the 1976 crop adjusted to reflect any change during the calendar year 1976 in such index in the case of the 1977 crop: Provided, That any increase that would otherwise be made in the established price to reflect a change in the index of prices paid by farmers shall be adjusted to reflect any change in (i) the national average yield per acre of cotton for the three calendar years preceding the year for which the determination is made, over (ii) the national average yield per acre of cotton for the three calendar years preceding the year previous to the one for which the deter- mination is made. If the Secretary determines that the producers on a farm are prevented from planting any portion of the allotment to cotton because of drought, flood, or other natural dis- aster, or condition beyond the control of the producer, the rate of payment for such portion shall be the larger of (A) the foregoing rate, or (B) one-third of the established price. If the Sec- retary determines that, because of such a dis- aster or condition, the total quantity of cotton which the producers are able to harvest on any farm is less than 662⁄3 percent of the farm base acreage allotment times the average yield es- tablished for the farm, the rate of payment for the deficiency in production below 100 percent shall be the larger of (A) the foregoing rate, or (B) one-third of the established price. The pay- ment rate with respect to any producer who (i) is on a small farm (that is, a farm on which the base acreage allotment is ten acres or less, or on which the yield used in making payments times the farm base acreage allotment is five thousand pounds or less, and for which the base acreage allotment has not been reduced under section 1350(f) of this title, (ii) resides on such farm, and (iii) derives his principal income from cotton produced on such farm, shall be increased by 30 per centum; but, notwithstanding paragraph (3), such increase shall be made only with respect to his share of cotton actually harvested on such farm within the quantity specified in paragraph (3). (3) Such payments shall be made available for a farm on the quantity of upland cotton deter- mined by multiplying the acreage planted with- in the farm base acreage allotment for the farm for the crop by the average yield established for the farm: Provided, That payments shall be made on any farm planting not less than 90 per cen- tum of the farm base acreage allotment on the basis of the entire amount of such allotment. For purposes of this paragraph, an acreage on the farm which the Secretary determines was not planted to cotton because of drought, flood, other natural disaster, or a condition beyond the control of the producer shall be considered to be an acreage planted to cotton. The average yield for the farm for any year shall be determined on the basis of the actual yields per harvested acre for the three preceding years, except that the 1970 farm projected yield shall be substituted in lieu of the actual yields for the years 1968 and 1969: Provided, That the actual yields shall be ad- justed by the Secretary for abnormal yields in any year caused by drought, flood, or other nat- ural disaster: Provided further, That the average yield established for the farm for any year shall not be less than the yield used in making pay- ments for the preceding year if the total cotton production on the farm in such preceding year is not less than the yield used in making payments for the farm for such preceding year times the farm base acreage allotment for such preceding year (for the 1970 crop, the farm domestic allot- ment). (4)(A) The Secretary shall provide for a set aside of cropland if he determines that the total supply of agricultural commodities will, in the absence of such a set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emer- gency. If a set-aside of cropland is in effect under this paragraph (4), then as a condition of eligibility for loans and payments on upland cotton the producers on a farm must set aside Page 745 TITLE 7—AGRICULTURE § 1444 and devote to approved conservation uses an acreage of cropland equal to (i) such percentage of the farm base acreage allotment for the farm as may be specified by the Secretary (not to ex- ceed 28 per centum of the farm base acreage al- lotment), plus, if required by the Secretary, (ii) the acreage of cropland on the farm devoted in preceding years to soil conserving uses, as deter- mined by the Secretary. The Secretary is au- thorized for the 1974 through 1977 crops to limit the acreage planted to upland cotton on the farm in excess of the farm base acreage allot- ment to a percentage of the farm base acreage allotment. The Secretary shall permit producers to plant and graze on set-aside acreage sweet sorghum, and the Secretary may permit, subject to such terms and conditions as he may pre- scribe, all or any of the set-aside acreage to be devoted to hay and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if he determines that such production is needed to provide an adequate supply, is not likely to in- crease the cost of the price-support program, and will not adversely affect farm income. (B) To assist in adjusting the acreage of com- modities to desirable goals, the Secretary may make land diversion payments, in addition to the payments authorized in subsection (e)(2), to producers on a farm who, to the extent pre- scribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in addition to that required to be so de- voted under subsection (e)(4)(A). The land diver- sion payments for a farm shall be at such rate or rates as the Secretary determines to be fair and reasonable taking into consideration to the di- version undertaken by the producers and the productivity of the acreage diverted. The Sec- retary shall limit the total acreage to be di- verted under agreements in any county or local community so as not to adversely affect the economy of the county or local community. (5) The upland cotton program formulated under this section shall require the producer to take such measures as the Secretary may deem appropriate to protect the set-aside acreage and the additional diverted acreage from erosion, in- sects, weeds, and rodents. Such acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may in the case of programs for the 1974 through 1977 crops, pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sentences. The Secretary may provide for an additional pay- ment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm as the Secretary may prescribe by the general public, for hunting, trapping, fishing, and hiking, sub- ject to applicable State and Federal regulations. (6) If the operator of the farm desires to par- ticipate in the program formulated under this section, he shall file his agreement to do so no later than such date as the Secretary may pre- scribe. Loans and purchases on upland cotton and payments under this section shall be made available to the producers on such farm only if producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil con- serving uses, and the agreement shall so pro- vide. The Secretary may, by mutual agreement with the producer, terminate or modify any such agreement entered into pursuant to this sub- section (e)(6) if he determines such action nec- essary because of an emergency created by drought or other disaster or in order to alleviate a shortage in the supply of agricultural com- modities. (7) The Secretary shall provide adequate safe- guards to protect the interests of tenants and sharecroppers, including provision for sharing on a fair and equitable basis, in payments under this section. (8) In any case in which the failure of a pro- ducer to comply fully with the terms and condi- tions of the program formulated under this sec- tion precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as he determines to be equitable in relation to the seriousness of the default. (9) The Secretary is authorized to issue such regulations as he determines necessary to carry out the provisions of this subchapter. (10) The Secretary shall carry out the program authorized by this section through the Com- modity Credit Corporation. (11) The provisions of section 590h(g) of title 16 (relating to assignment of payments), shall apply to payments under this subsection. (f), (g) Omitted (h) Program for extra long staple cotton begin- ning with 1984 crop (1) For purposes of this subsection, extra long staple cotton means cotton which is produced from pure strain varieties of the Barbadense spe- cies or any hybrid thereof, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which American upland cot- ton is not suitable and grown in irrigated cot- ton-growing regions of the United States des- ignated by the Secretary or other areas des- ignated by the Secretary as suitable for the pro- duction of such varieties or types and which is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes. (2) The Secretary shall, upon presentation of warehouse receipts reflecting accrued storage charges of not more than sixty days, make available to producers nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at a level which is not less than 85 percent of the simple average price received by producers of extra long staple cotton, as determined by the Sec- retary, during 3 years of the 5-year period end- ing July 31 in the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such Page 746 TITLE 7—AGRICULTURE § 1444 2 So in original. period..2 If authorized by the Secretary, non- recourse loans provided for in this subsection may, upon request of the producer during the tenth month of the loan period for the cotton, be made available for an additional term of eight months. The loan level for any crop of extra long staple cotton shall be determined and an- nounced by the Secretary not later than Decem- ber 1 of the calendar year preceding the mar- keting year for which such loan is to be effective and such level shall not thereafter be changed. (3)(A) In addition, payments shall be made for each crop of extra long staple cotton to pro- ducers on each farm at a rate equal to the amount by which the higher of— (i) the average market price received by farmers for extra long staple cotton during the first eight months of the marketing year for such crop, as determined by the Secretary, or (ii) the loan level determined under para- graph (2) of this subsection for such crop, is less than the established price per pound times, in each case, the farm program acreage for extra long staple cotton (determined in ac- cordance with paragraph (5)(A), but in no event on a greater acreage than the acreage actually planted to extra long staple cotton for harvest), multiplied by the farm program payment yield for extra long staple cotton (determined in ac- cordance with paragraph (4)). (B) The established price for each crop of extra long staple cotton shall be 120 per centum of the loan level determined for such crop under para- graph (2) of this subsection. (C) If the Secretary establishes an acreage limitation program for a crop of extra long sta- ple cotton in accordance with paragraph (5)(A) and determines that deficiency payments will likely be made for such crop of extra long staple cotton under subparagraph (A) of this para- graph, the Secretary may make available ad- vance deficiency payments for such crop to pro- ducers who agree to participate in the acreage limitation program. Such advance payments shall be made available to producers as soon as practicable after the producer files a notice of intention to participate in such acreage limita- tion program and in such amount as the Sec- retary determines appropriate to encourage ade- quate participation in such program, except that such amount shall not exceed an amount determined by multiplying (i) the estimated farm program acreage for the crop, by (ii) the farm program payment yield for the crop, by (iii) 50 per centum of the projected payment rate, as determined by the Secretary. In any case in which the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under subparagraph (A) of this paragraph, is less than the amount paid to the producer as an advance deficiency payment under this paragraph, the producer shall refund an amount equal to the difference between the amount advanced and the amount finally deter- mined by the Secretary to be payable to the pro- ducer. If the Secretary determines that no defi- ciency payments are due producers on a crop, the producer who received advanced payments on such crop shall refund such payments. If a producer fails to comply with the requirements under the acreage limitation program after ob- taining an advance deficiency payment under this paragraph, the producer shall immediately repay the amount of the advance, plus interest thereon in such amount as the Secretary shall prescribe. (4) The farm program payment yield for each crop of extra long staple cotton shall be deter- mined on the basis of the actual yields per har- vested acre on the farm for the preceding three years, except that the actual yields shall be ad- justed by the Secretary for abnormal yields in any year caused by drought, flood, or other nat- ural disaster, or other condition beyond the con- trol of the producers. In case farm yield data for one or more years are unavailable or there was no production, the Secretary shall provide for appraisals to be made on the basis of actual yields and program payment yields for similar farms in the area for which data are available. Notwithstanding the foregoing provisions of this paragraph in the determination of yields, the Secretary shall take into account the actual yields proved by the producer, and neither such yields nor the farm program payment yield es- tablished on the basis of such yields shall be re- duced under other provisions of this paragraph. If the Secretary determines it necessary, the Secretary may establish national, State, or county program payment yields on the basis of historical yields, as adjusted by the Secretary to correct for abnormal factors affecting such yields in the historical period, or, if such data are not available, on the Secretary’s estimate of actual yields for the crop year involved. If na- tional, State, or county program payment yields are established, the farm program payment yields shall balance to the national, State, or county program payment yields. (5)(A)(i) Notwithstanding any other provision of this subsection, the Secretary may establish a limitation on the acreage planted to extra long staple cotton if the Secretary determines that the total supply of extra long staple cotton, in the absence of such limitation, will be exces- sive taking into account the need for an ade- quate carryover to maintain reasonable and sta- ble prices and to meet a national emergency. Such limitation shall be achieved by applying a uniform percentage reduction (including a zero percentage reduction) to the acreage base for each extra long staple cotton-producing farm. Producers who knowingly produce extra long staple cotton in excess of the permitted acreage for the farm shall be ineligible for extra long staple cotton loans and payments with respect to that farm. The acreage base for any farm for the purpose of determining any reduction re- quired to be made for any year as a result of a limitation under this subparagraph shall be the average acreage planted on the farm to extra long staple cotton for harvest in the three crop years immediately preceding the year prior to the year for which the determination is made. For the purpose of the preceding sentence, acre- age planted to extra long staple cotton for har- vest shall include any acreage which the pro- ducers were prevented from planting to extra long staple cotton or other nonconserving crops Page 747 TITLE 7—AGRICULTURE § 1444 in lieu of extra long staple cotton because of drought, flood, or other natural disaster or other condition beyond the control of the producers. The Secretary may make adjustments to reflect established crop-rotation practices and to re- flect such other factors as the Secretary deter- mines should be considered in determining a fair and equitable base. There is hereby established for the 1984, 1985, and 1986 crops an acreage base reserve equal to 5 per centum of the total of the farm acreage bases established for the crop under the foregoing provisions of this subpara- graph. Such reserve shall be in addition to the total of the farm acreage bases and shall be used by the county committees, in accordance with regulations of the Secretary, for making adjust- ments of farm acreage bases to correct inequi- ties and prevent hardship, and for establishing bases for farms on which no extra long staple cotton was planted during the preceding four years. A number of acres on the farm deter- mined by dividing (i) the product obtained by multiplying the number of acres required to be withdrawn from the production of extra long staple cotton times the number of acres actually planted to such commodity, by (ii) the number of acres authorized to be planted to such com- modity under the limitation established by the Secretary, shall be devoted to conservation uses, in accordance with regulations issued by the Secretary, which will assure protection of such acreage from weeds and wind and water erosion. The number of acres so determined is hereafter in this subsection referred to as ‘‘reduced acre- age’’. The Secretary may permit, subject to such terms and conditions as the Secretary may pre- scribe, all or any part of the reduced acreage to be devoted to sweet sorghum, hay and grazing, or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, rye, or other commodity, if the Secretary determines that such production is needed to provide an ade- quate supply of such commodities, is not likely to increase the cost of the price support pro- gram, and will not affect farm income adversely. The individual farm program acreage shall be the actual acreage planted on the farm to extra long staple cotton for harvest within the per- mitted extra long staple cotton acreage for the farm as established under this paragraph. (ii) Notwithstanding any other provision of this Act, the Secretary shall ensure, under such terms and conditions as may be prescribed by the Secretary, that the total of the crop acreage bases established on a farm which is enrolled in a production adjustment program for any com- modity shall not be increased as a result of the application of the provisions set forth in para- graph (13)(C), as extended for the 1989 and 1990 crop. (B) The Secretary may make land diversion payments to producers of extra long staple cot- ton, whether or not an acreage limitation pro- gram for extra long staple cotton is in effect, if the Secretary determines that such land diver- sion payments are necessary to assist in adjust- ing the total national acreage of extra long sta- ple cotton to desirable goals. Such land diver- sion payments shall be made to producers who, to the extent prescribed by the Secretary, de- vote to approved conservation uses an acreage of cropland on the farm in accordance with land di- version contracts entered into by the Secretary with such producers. The amounts payable to producers under land diversion contracts may be determined through the submission of bids for such contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines appro- priate. In determining the acceptability of con- tract offers, the Secretary shall take into con- sideration the extent of the diversion to be un- dertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. (C) The reduced acreage and the diverted acre- age may be devoted to wildlife food plots or wildlife habitat in conformity with standards es- tablished by the Secretary in consultation with wildlife agencies. The Secretary may pay an ap- propriate share of the cost of practices designed to carry out the purpose of the foregoing sen- tence. The Secretary may provide for an addi- tional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Fed- eral regulations. (6) An operator of a farm desiring to partici- pate in the program conducted under paragraph (5) shall execute an agreement with the Sec- retary providing for such participation not later than such date as the Secretary may prescribe. The Secretary may, by mutual agreement with the producers on the farm, terminate or modify any such agreement if the Secretary determines such action necessary because of an emergency created by drought or other disaster or to pre- vent or alleviate a shortage in the supply of ag- ricultural commodities. (7) The Secretary shall provide for the sharing of payments made under this subsection for any farm among the producers on the farm on a fair and equitable basis. (8) The Secretary shall provide adequate safe- guards to protect the interests of tenants and sharecroppers. (9) If the failure of a producer to comply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans and payments, the Secretary may, nevertheless, make such loans and pay- ments in such amounts as the Secretary deter- mines to be equitable in relation to the serious- ness of the failure. The Secretary may authorize the county and State committees established under section 590h(b) of title 16 to waive or mod- ify deadlines and other program requirements in cases in which lateness or failure to meet such other requirements does not affect adversely the operation of the program. (10) The Secretary may issue such regulations as the Secretary determines necessary to carry out the provisions of this subsection. Page 748 TITLE 7—AGRICULTURE § 1444 3 See References in Text note below. (11) The Secretary shall carry out the program authorized by this subsection through the Com- modity Credit Corporation. (12) The provisions of section 590h(g) of title 16 (relating to assignment of payments) shall apply to payments made under this subsection. (13)(A) Compliance on a farm with the terms and conditions of any other commodity program or compliance with crop acreage base require- ments for any other commodity may not be re- quired as a condition of eligibility for loans or payments under this section. (B) The Secretary may not require producers on a farm, as a condition of eligibility for loans or payments under this section for the farm, to comply with the terms and conditions of the extra long staple cotton program with respect to any other farm operated by the producers. (14) In order to encourage and assist producers in the orderly ginning and marketing of their extra long staple cotton production, the Sec- retary shall make recourse loans available to such producers on seed cotton in accordance with authority vested in the Secretary under the Commodity Credit Corporation Charter Act [15 U.S.C. 714 et seq.]. (15) References made in sections 1422, 1423, 1426,3 1427, and 1431 of this title to the terms ‘‘support price’’, ‘‘level of support’’, and ‘‘level of price support’’ shall be considered to apply as well to the level of loans for extra long staple cotton under this subsection; and references to the terms ‘‘price support’’, ‘‘price support oper- ations’’, and ‘‘price support program’’ in such sections and in section 1421(a) of this title shall be considered as applying as well to the loan op- erations for extra long staple cotton under this subsection. (16) Notwithstanding any other provision of law, this subsection shall not be applicable to the 1996 and subsequent crops of extra long sta- ple cotton. (Oct. 31, 1949, ch. 792, title I, § 103, as added Pub. L. 85–835, title I, § 102, Aug. 28, 1958, 72 Stat. 989; amended Pub. L. 88–297, title I, § 103(b), Apr. 11, 1964, 78 Stat. 174; Pub. L. 89–112, § 2, Aug. 6, 1965, 79 Stat. 447; Pub. L. 89–321, title IV, § 402(a), Nov. 3, 1965, 79 Stat. 1194; Pub. L. 89–451, § 1, June 17, 1966, 80 Stat. 202; Pub. L. 90–559, § 1(2), Oct. 11, 1968, 82 Stat. 996; Pub. L. 91–524, title VI, § 602, Nov. 30, 1970, 84 Stat. 1374; Pub. L. 93–86, § 1(20), Aug. 10, 1973, 87 Stat. 233; Pub. L. 93–125, § 1(b), Oct. 18, 1973, 87 Stat. 450; Pub. L. 95–113, title VI, § 602, Sept. 29, 1977, 91 Stat. 934; Pub. L. 95–279, title I, § 102, May 15, 1978, 92 Stat. 240; Pub. L. 95–402, Sept. 30, 1978, 92 Stat. 862; Pub. L. 96–213, § 4(b), Mar. 18, 1980, 94 Stat. 119; Pub. L. 96–365, title II, § 201(b), Sept. 26, 1980, 94 Stat. 1320; Pub. L. 97–98, title V, § 502, Dec. 22, 1981, 95 Stat. 1234; Pub. L. 97–446, title I, § 155, Jan. 12, 1983, 96 Stat. 2345; Pub. L. 98–88, § 4, Aug. 26, 1983, 97 Stat. 494; Pub. L. 98–258, title III, §§ 301, 302, Apr. 10, 1984, 98 Stat. 133; Pub. L. 99–114, § 3, Oct. 1, 1985, 99 Stat. 488; Pub. L. 99–198, title V, § 507, Dec. 23, 1985, 99 Stat. 1419; Pub. L. 99–500, § 101(a) [title VI, § 644], Oct. 18, 1986, 100 Stat. 1783, 1783–36, and Pub. L. 99–591, § 101(a) [title VI, § 644], Oct. 30, 1986, 100 Stat. 3341, 3341–36; Pub. L. 99–641, title II, § 201, Nov. 10, 1986, 100 Stat. 3562; Pub. L. 100–203, title I, § 1101(d), Dec. 22, 1987, 101 Stat. 1330–2; Pub. L. 100–331, June 14, 1988, 102 Stat. 602; Pub. L. 100–418, title I, § 1214(w), Aug. 23, 1988, 102 Stat. 1163; Pub. L. 101–624, title V, § 506, Nov. 28, 1990, 104 Stat. 3440.) Editorial Notes REFERENCES IN TEXT Section 1441(d) of this title, referred to in subsec. (a), was redesignated section 1441(c) of this title by Pub. L. 108–357, title VI, § 612(b)(4), Oct. 22, 2004, 118 Stat. 1524. This Act, referred to in subsecs. (d)(1), (11), (12) and (h)(5)(A)(ii), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classi- fied principally to this chapter (§ 1421 et seq.). For com- plete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables. The Commodity Credit Corporation Charter Act, re- ferred to in subsec. (h)(14), 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. Section 1426 of this title, referred to in subsec. (h)(15), was repealed by Pub. L. 104–127, title I, § 171(b)(2)(I), Apr. 4, 1996, 110 Stat. 938. CODIFICATION Pub. L. 99–591 is a corrected version of Pub. L. 99–500. AMENDMENTS 1990—Subsec. (h)(3)(A). Pub. L. 101–624, § 506(b)(1), sub- stituted ‘‘paragraph (5)(A)’’ for ‘‘paragraph (6) or para- graph (8)(A) of this subsection’’ and ‘‘paragraph (4)’’ for ‘‘paragraph (7) of this subsection’’. Subsec. (h)(3)(C). Pub. L. 101–624, § 506(b)(2), sub- stituted ‘‘paragraph (5)(A)’’ for ‘‘paragraph (8)(A) of this subsection’’. Subsec. (h)(4). Pub. L. 101–624, § 506(a)(1), (2), redesig- nated par. (7) as (4) and struck out former par. (4) which related to establishment of a national program acreage for extra long staple cotton by Secretary. Subsec. (h)(5). Pub. L. 101–624, § 506(a)(1)–(3), redesig- nated par. (8) as (5), inserted ‘‘(including a zero percent- age reduction)’’ after ‘‘reduction’’ in subpar. (A)(i), and struck out former par. (5) which required Secretary to determine a program allocation factor, not to exceed 100 per centum for each crop of extra long staple cot- ton. Pub. L. 101–624, § 506(b)(3), struck out before last sen- tence in subpar. (A)(i) the following: ‘‘If an acreage lim- itation program is announced under this paragraph for a crop of extra long staple cotton, paragraphs (4), (5), and (6) of this subsection shall not be applicable to such crop, including any prior announcement which may have been made under such paragraphs with respect to such crop.’’ Pub. L. 101–624, § 506(b)(4), substituted ‘‘paragraph (13)(C)’’ for ‘‘paragraph (16)(C)’’ in subpar. (A)(ii). Subsec. (h)(6). Pub. L. 101–624, § 506(b)(5), substituted ‘‘paragraph (5)’’ for ‘‘paragraph (8) of this subsection’’. Pub. L. 101–624, § 506(a)(1), (2), redesignated par. (9) as (6) and struck out former par. (6) which provided a for- mula for determining individual farm program acreage for each crop of extra long staple cotton by multiplying allocation factor by acreage of extra long staple cotton planted for harvest on each farm for which individual farm program acreages are required to be determined. Subsec. (h)(7) to (12). Pub. L. 101–624, § 506(a)(2), redes- ignated pars. (10) to (15) as (7) to (12), respectively. Former pars. (7) to (9) redesignated (4) to (6), respec- tively. Subsec. (h)(13). Pub. L. 101–624, § 506(a)(2), (4), redesig- nated par. (16) as (13), struck out par. (13) as so redesig- Page 749 TITLE 7—AGRICULTURE § 1444 nated, and added new par. (13). Former par. (13) redesig- nated (10). Prior to being struck out, par. (13) read as follows: ‘‘(A) Notwithstanding any other provision of law, ex- cept as provided in subparagraph (B), compliance on a farm with the terms and conditions of any other com- modity program may not be required as a condition of eligibility for loans or payments under this subsection. ‘‘(B) In the case of each of the 1989 and 1990 crops of extra long staple cotton, the Secretary may require that, as a condition of eligibility of producers for loans or payments under this subsection, the acreage planted for harvest on the farm to any other commodity for which an acreage limitation program is in effect shall not exceed the crop acreage base established for the farm for that commodity. ‘‘(C) Notwithstanding any other provision of law, in the case of each of the 1987 through 1990 crops of extra long staple cotton, compliance with the terms and con- ditions of the program authorized by this subsection may not be required as a condition of eligibility for loans, purchases, or payments under any other com- modity program.’’ Subsec. (h)(14), (15). Pub. L. 101–624, § 506(a)(2), redes- ignated pars. (17) and (18) as (14) and (15), respectively. Former pars. (14) and (15) redesignated (11) and (12), re- spectively. Subsec. (h)(16). Pub. L. 101–624, § 506(a)(2), (5), redesig- nated par. (19) as (16) and substituted ‘‘1996’’ for ‘‘1991’’. Former par. (16) redesignated (13). Subsec. (h)(17) to (19). Pub. L. 101–624, § 506(a)(2), re- designated pars. (17) to (19) as (14) to (16), respectively. 1988—Subsec. (f)(3). Pub. L. 100–418 substituted ‘‘sub- headings 9904.30.10 through 9904.30.30 of chapter 99 of the Harmonized Tariff Schedule of the United States’’ for ‘‘items 955.01 through 955.03 of the Appendix to the Tariff Schedules of the United States’’. Subsec. (h)(8)(A). Pub. L. 100–331, § 2, designated exist- ing provisions as cl. (i) and added cl. (ii). Subsec. (h)(16)(C). Pub. L. 100–331, § 1, substituted ‘‘through 1990’’ for ‘‘and 1988’’. 1987—Subsec. (h)(3)(B). Pub. L. 100–203 temporarily (see Effective and Termination Dates of 1987 Amend- ment note below) substituted ‘‘Except as provided in clause (ii), the’’ for ‘‘The’’ and added cl. (ii) which read as follows: ‘‘In the case of each of the 1988 and 1989 crops of extra long staple cotton, the established price for each such crop shall be 118.3 percent of the loan level determined for such crop under paragraph (2).’’ 1986—Subsec. (h)(16). Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–641, in generally amending par. (16) iden- tically, designated existing provisions as subpar. (A), inserted ‘‘except as provided in subparagraph (B),’’ and added subpars. (B) and (C). 1985—Subsec. (h)(2). Pub. L. 99–198, § 507(1), in first sentence substituted ‘‘85 percent or the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during 3 years of the 5-year period ending July 31 in the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period.’’ for ‘‘50 per centum in excess of the loan level established for each crop of Strict Low Middling one and one-six- teenth inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States’’, and, in last sentence substituted ‘‘December 1’’ for ‘‘November 1’’ and struck out ‘‘, or within 10 days after the loan level for the related crop of upland cotton is announced, whichever is later,’’. Pub. L. 99–114, § 3(1), inserted ‘‘, or within 10 days after the loan level for the related crop of upland cot- ton is announced, whichever is later,’’. Subsec. (h)(4). Pub. L. 99–114, § 3(2), inserted ‘‘and an- nounce’’ after ‘‘The Secretary shall establish’’ and struck out sentence which had provided that national program acreage for extra long staple cotton had to be announced by the Secretary not later than November 1 of the calendar year preceding the year for which such acreage was established. Subsec. (h)(19). Pub. L. 99–198, § 507(2), added par. (19). 1984—Subsec. (g)(3)(B). Pub. L. 98–258, § 301, sub- stituted ‘‘and $0.81 per pound for the 1984 and 1985 crops’’ for ‘‘$0.81 per pound for the 1984 crop, and $0.86 per pound for the 1985 crop’’. Subsec. (g)(9)(A). Pub. L. 98–258, § 302(1), inserted ‘‘ex- cept as provided in the second and third sentences of this subparagraph,’’ after ‘‘Notwithstanding any other provision of this subsection,’’. Pub. L. 98–258, § 302(2), inserted sentences providing that for the 1985 crop of upland cotton, if the Secretary estimates that the quantity of upland cotton on hand in the United States on July 31, 1985 (not including any quantity of upland cotton produced in the United States during calendar year 1985), will exceed three million seven hundred thousand bales, the Secretary (i) shall provide for a land division [diversion] program as described under subparagraph (B) under which the acre- age planted to upland cotton for harvest on the farm would be limited to the acreage base for the farm re- duced by not less than 5 per centum and (ii) may pro- vide for an acreage limitation program as described under this subparagraph under which the acreage planted to upland cotton for harvest on the farm would be limited to the acreage base for the farm reduced by not more than 20 per centum in addition to the reduc- tion required under clause (i), that if the Secretary im- plements a combined acreage limitation program and land division [diversion] program, any reduction re- quired by the Secretary in excess of 25 per centum of the acreage base for the farm shall be made under the land diversion program, and that, as a condition of eli- gibility for loans, purchases, and payments on the 1985 crop of upland cotton, if the Secretary implements a land diversion program or a combined acreage limita- tion and land diversion program, the producers on a farm must comply with the terms and conditions of such program. Subsec. (g)(9)(B). Pub. L. 98–258, § 302(3), inserted sen- tences providing that if the Secretary implements a land diversion program for the 1985 crop of upland cot- ton under the provisions of subparagraph (A), the Sec- retary shall make crop retirement and conservation payments to any producer of the 1985 crop of upland cotton whose acreage planted to upland cotton for har- vest on the farm is reduced so that it does not exceed the upland cotton acreage base for the farm less an amount equivalent to the percentage of the acreage base specified by the Secretary, but not less than 5 per centum, in addition to the reduction required under the acreage limitation program under subparagraph (A), if any, and who devotes to approved conservation uses an acreage of cropland equivalent to the reduction re- quired from the upland cotton acreage base under this subparagraph, that such payments shall be made in an amount computed by multiplying (i) the diversion pay- ment rate, by (ii) the farm program payment yield for the crop, by (iii) the acreage diverted under this sub- paragraph, that the diversion payment rate shall be es- tablished by the Secretary at not less than $0.275 per pound: Provided, That if the Secretary estimates that the quantity of upland cotton on hand in the United States on July 31, 1985 (not including any quantity of upland cotton produced in the United States during calendar year 1985), will exceed (I) four million one hundred thousand bales, such rate shall be established by the Secretary at not less than $0.30 per pound, and (II) four million seven hundred thousand bales such rate shall be established by the Secretary at not less than $0.35 per pound, that the Secretary shall make not less than 50 per centum of any payments under this subparagraph to producers of the 1985 crop as soon as practicable after a producer enters into a land diver- sion contract with the Secretary and in advance of any determination of performance, and that if a producer fails to comply with a land diversion contract after ob- taining an advance payment under this subparagraph, the producer shall repay the advance immediately and, in accordance with regulations issued by the Secretary, pay interest on the advance. Page 750 TITLE 7—AGRICULTURE § 1444 1983—Subsec. (h). Pub. L. 98–88 added subsec. (h). Subsec. (f)(3). Pub. L. 97–446 temporarily substituted provision relating to the special quota status of Tariff Schedule items 955.01 and 955.03 before a special quota established under this subsection is filled and the cot- ton in question is duty free, for provision that, not- withstanding any other provision of law, the foregoing provisions of this subsection with respect to extension of the loan period and to proclamation of the special quota was to become effective Oct. 1, 1977, even though the cotton might have been of a crop prior to the 1978 crop. See Effective and Termination Dates of 1983 Amendment note below. 1981—Subsec. (g). Pub. L. 97–98 temporarily added subsec. (g). See Effective and Termination Dates of 1981 Amendment note below. 1980—Subsec. (f)(5)(A). Pub. L. 96–365, § 201(b)(1), sub- stituted ‘‘Except as otherwise provided in subparagraph (C) of this paragraph, effective with respect to the 1978 through 1981 crops of upland cotton’’ for ‘‘Effective only with respect to the 1978, 1979, and 1980 crops of up- land cotton’’. Pub. L. 96–213, § 4(b)(1), substituted ‘‘1978, 1979, and 1980 crops of upland cotton’’ for ‘‘1978 and 1979 crops of upland cotton’’. Subsec. (f)(5)(B). Pub. L. 96–365, § 201(b)(2), substituted ‘‘Except as otherwise provided in subparagraph (C) of this paragraph, effective with respect to the 1978 through 1981 crops of upland cotton’’ for ‘‘Effective only with respect to the 1978, 1979, and 1980 crops of up- land cotton’’. Pub. L. 96–213, § 4(b)(2), substituted ‘‘1978, 1979, and 1980 crops of upland cotton’’ for ‘‘1978 and 1979 crops of upland cotton’’. Subsec. (f)(5)(C). Pub. L. 96–365, § 201(b)(3), added sub- par. (C). 1978—Subsec. (f)(1). Pub. L. 95–402 purported to strike out the fourth sentence of subsec. (f)(1). The enacting clause, however, stated that Pub. L. 95–402 was enacted to amend subsec. (f)(1) ‘‘. . . to ensure that the interest rates on price support loans for upland cotton are not less favorable to producers than the interest rates for such loans on other commodities’’. Accordingly, the third sentence of subsec. (f)(1) was struck out as the probable intent of Congress because it related to inter- est rates while the fourth sentence related to extension of the loan period and establishment of a special lim- ited global import quota. Pub. L. 95–279 temporarily substituted ‘‘during three years of the five-year period ending July 31’’ for ‘‘dur- ing the four-year period ending July 31’’ and inserted ‘‘excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period’’ in cl. (i), substituted ‘‘for the fif- teen-week period beginning July 1’’ for ‘‘for the first two full weeks of October’’ in cl. (ii), and inserted pro- viso relating to the minimum loan level and the power of the Secretary to raise the loan level as he may deem appropriate when the average Northern European price is less than the average United States spot market price. See Effective and Termination Dates of 1978 Amendment note below. 1977—Subsec. (f). Pub. L. 95–113 temporarily added subsec. (f). See Effective and Termination Dates of 1977 Amendment note below. 1973—Subsec. (e)(1). Pub. L. 93–86, § 1(20)(A), (B), sub- stituted ‘‘1971 through 1977 crops of upland cotton’’ for ‘‘1971, 1972, and 1973 crops of upland cotton’’, ‘‘three- year period’’ for ‘‘two-year period’’ in two places, ‘‘ex- cept that if the loan rate so calculated is higher than the then current level of average world prices for Amer- ican cotton of such quality, the Secretary is authorized to adjust the current calculated loan rate for cotton to 90 per centum of the then current average world price’’ for ‘‘except that to prevent the establishment of such a loan level as would adversely affect the competitive position of United States upland cotton, following one or more years of excessively high prices the Secretary shall make such adjustments as are necessary to keep United States upland cotton competitive and to retain an adequate share of the world market for such cot- ton’’, ‘‘average price of American cotton in world mar- kets’’ for ‘‘acreage world price’’, and ‘‘any of the 1972 through 1977 crops’’ for ‘‘the 1972 or 1973 crop’’. Subsec. (e)(2). Pub. L. 93–86, § 1(20)(C), substituted pro- visions setting out the formula for determining pay- ments for each crop of cotton to the producers on each farm using, as elements of such formula, the average market price received by farmers for upland cotton during the calendar year which includes the first five months of the marketing year for such crop, as deter- mined by the Secretary, the loan level determined under paragraph (1) for such crop, an established price of 38 cents per pound in the case of the 1974 and 1975 crops, adjusted prices in the case of the 1976 and 1977 crops, adjustment of increases to reflect changes in the national average yield per acre of cotton for the three calendar years preceding the year for which the deter- mination is made over the national average yield per acre of cotton for the three calendar years preceding the year previous to the one for which the determina- tion is made, and covering prevention of planting due to natural disasters and conditions for provisions au- thorizing payments by the Secretary to cooperators on the 1971, 1972, and 1973 crops of upland cotton, and struck out provisions directing preliminary payments to producers as soon as practicable after July 1 of the year in which the crop is harvested at a rate equal to 15 cents per pound. Pub. L. 93–125 substituted ‘‘prevented from planting any portion’’ for ‘‘prevented from planting, any por- tion’’. Subsec. (e)(4)(A). Pub. L. 93–86, § 1(20)(D)–(F), inserted ‘‘, if required by the Secretary,’’ before ‘‘(ii) the acre- age of cropland on the farm devoted in preceding years to soil conserving uses, as determined by the Sec- retary’’, substituted ‘‘The Secretary is authorized for the 1974 through 1977 crops to limit the acreage planted to upland cotton on the farm in excess of the farm base acreage allotment to a percentage of the farm base acreage allotment’’ for ‘‘If the Secretary determines prior to the planting season for such crop that the car- ryover of upland cotton as of the beginning of the mar- keting year for the 1972 or 1973 crop will exceed 7.2 mil- lion bales, the Secretary is authorized for such crop to limit the acreage planted to upland cotton on the farm in excess of the farm base acreage allotment to such percentage of the farm base acreage allotment as he de- termines necessary to reduce the total supply to a rea- sonable level’’, deleted provision prohibiting grazing during any of the five principal months of the normal growing season as determined by the county committee established pursuant to section 590h(b) of Title 16, and inserted provisions authorizing the raising of hay on set-aside acreage and the production of triticale, oats, and rye. Subsec. (e)(5). Pub. L. 93–86, § 1(20)(G), authorized Sec- retary in case of programs for 1974 through 1977 crops to pay an appropriate share of cost of practices de- signed to protect set-aside acreage from erosion, in- sects, weeds, and rodents and to provide wildlife food plots or wildlife habitat. 1970—Subsec. (e). Pub. L. 91–524 added subsec. (e). 1968—Subsec. (d)(1). Pub. L. 90–559 provided for a one year extension, substituting ‘‘1966 through 1970’’ for ‘‘1966, 1967, 1968, and 1969’’. 1966—Subsec. (d)(3). Pub. L. 89–451 substituted ‘‘crop for which there are marketing quotas or voluntary ad- justment programs in effect’’ for ‘‘income producing crop in such year’’ in last sentence. 1965—Subsec. (b). Pub. L. 89–112 provided that the Secretary shall deem an acreage on a farm which he finds was not planted to cotton in 1965 because of flood, drought, or other natural disaster to be an actual acre- age of cotton planted on the farm for harvest when that acreage was not subsequently devoted to any price sup- port crop in 1965. Subsec. (d). Pub. L. 89–321 added subsec. (d). 1964—Subsec. (a). Pub. L. 88–297, § 103(b)(1), (2), des- ignated existing provisions as subsec. (a) and provided Page 751 TITLE 7—AGRICULTURE § 1444–2 that the price support for the 1964 cotton crop shall be a national average support price which reflects 30 cents per pound for Middling one-inch cotton. Subsecs. (b), (c). Pub. L. 88–297, § 103(b)(3), added sub- secs. (b) and (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. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–418 effective Jan. 1, 1989, and applicable with respect to articles entered on or after such date, see section 1217(b)(1) of Pub. L. 100–418, set out as a note under section 3001 of Title 19, Customs Duties. EFFECTIVE AND TERMINATION DATES OF 1987 AMENDMENT Pub. L. 100–203, title I, § 1101(d), Dec. 22, 1987, 101 Stat. 1330–2, provided that the amendment made by section 1101(d) is effective only for the 1988 and 1989 crops of extra long staple cotton. EFFECTIVE AND TERMINATION DATES OF 1983 AMENDMENTS Pub. L. 98–88, § 4, Aug. 26, 1983, 97 Stat. 494, provided that the amendment made by section 4 is effective be- ginning with the 1984 crop of extra long staple cotton. Pub. L. 97–446, title I, § 155, Jan. 12, 1983, 96 Stat. 2345, provided that the amendment made by section 155 is ef- fective for the 1982 through 1985 crops of upland cotton. EFFECTIVE AND TERMINATION DATES OF 1981 AMENDMENT Pub. L. 97–98, title V, § 502, Dec. 22, 1981, 95 Stat. 1234, provided that the amendment made by section 502 is ef- fective only for the 1982 through 1985 crops of upland cotton. EFFECTIVE AND TERMINATION DATES OF 1978 AMENDMENT Pub. L. 95–279, title I, § 102, May 15, 1978, 92 Stat. 240, provided that the amendment made by section 102 is ef- fective only with respect to the 1978 through 1981 crops of upland cotton. Amendment by Pub. L. 95–279 effective Oct. 1, 1978, and applicability to elections by producers receiving loans and payments prior to such date, see section 103 of Pub. L. 95–279, set out as a note under section 1309 of this title. EFFECTIVE AND TERMINATION DATES OF 1977 AMENDMENT Pub. L. 95–113, title VI, § 602, Sept. 29, 1977, 91 Stat. 934, provided that the amendment made by section 602 is effective only with respect to the 1978 through 1981 crops of upland cotton, except as otherwise provided therein. EFFECTIVE DATE OF 1973 AMENDMENT Pub. L. 93–86, § 1(20)(C), Aug. 10, 1973, 87 Stat. 233, pro- vided that the amendment made by section 1(20)(C) is effective beginning with the 1974 crop. Pub. L. 93–86, § 1(20)(D), Aug. 10, 1973, 87 Stat. 234, pro- vided that the amendment made by section 1(20)(D), au- thorizing Secretary for the 1974 through 1977 crops to limit acreage planted in upland cotton on farm in ex- cess of farm base acreage allotment to a percentage of farm base acreage allotment, is effective beginning with the 1974 crop. EFFECTIVE DATE OF 1970 AMENDMENT Pub. L. 91–524, title VI, § 602, Nov. 30, 1970, 84 Stat. 1374, provided that the amendment made by section 602 is effective beginning with the 1971 crop of upland cot- ton. INAPPLICABILITY OF SECTION Subsec. (a) of this section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see section 9092(b)(2) of this title. Subsec. (a) of this section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period begin- ning June 18, 2008, through Dec. 31, 2012, see section 8782(b)(2) of this title. Subsec. (a) of this section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period begin- ning May 13, 2002, through Dec. 31, 2007, see section 7992(b)(2) of this title. Subsec. (a) of this 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)(B) of this title. Pub. L. 101–624, title V, § 503, Nov. 28, 1990, 104 Stat. 3440, provided that: ‘‘Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be applicable to the 1991 through 1995 crops.’’ Pub. L. 99–198, title V, § 504, Dec. 23, 1985, 99 Stat. 1418, provided that: ‘‘Sections 103(a) and 203 of the Agricul- tural Act of 1949 (7 U.S.C. 1444(a) and 1446d) shall not be applicable to the 1986 through 1990 crops.’’ Pub. L. 97–98, title V, § 504, Dec. 22, 1981, 95 Stat. 1241, provided that: ‘‘Sections 103(a) and 203 of the Agricul- tural Act of 1949 [sections 1444(a) and 1446d of this title] shall not be applicable to the 1982 through 1985 crops.’’ Pub. L. 95–113, title VI, § 604(c), Sept. 29, 1977, 91 Stat. 939, provided that: ‘‘Sections 103(a) and 203 of the Agri- cultural Act of 1949, as amended [sections 1444(a) and 1446d of this title] shall not be applicable to the 1978 through 1981 crops.’’ § 1444–1. Omitted Editorial Notes CODIFICATION Section, act Oct. 31, 1949, ch. 792, title I, § 103A, as added Dec. 23, 1985, Pub. L. 99–198, title V, § 501, 99 Stat. 1407; amended Mar. 20, 1986, Pub. L. 99–260, § 2(c), 100 Stat. 46; May 27, 1987, Pub. L. 100–45, § 4, 101 Stat. 319; Dec. 22, 1987, Pub. L. 100–203, title I, §§ 1101(c), 1102(c), 1113(c), 101 Stat. 1330–1, 1330–3, 1330–9, related to loan rates, target prices, disaster payments, acreage limita- tion program, and land diversion. See Effective and Termination Dates note below. Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES Pub. L. 99–198, title V, § 501, Dec. 23, 1985, 99 Stat. 1407, provided that this section is effective only for the 1986 through 1990 crops of upland cotton. § 1444–2. Repealed. Pub. L. 104–127, title I, § 171(b)(2)(B), Apr. 4, 1996, 110 Stat. 938 Section, act Oct. 31, 1949, ch. 792, title I, § 103B, as added Nov. 28, 1990, Pub. L. 101–624, title V, § 501, 104 Stat. 3421; amended Nov. 5, 1990, Pub. L. 101–508, title I, § 1101(c), 104 Stat. 1388–1; Dec. 13, 1991, Pub. L. 102–237, title I, §§ 102(b), 106(b), 107, 113(2), (3), 125, 126, 105 Stat. 1821, 1825, 1827, 1837, 1845; Aug. 10, 1993, Pub. L. 103–66, title I, § 1101(a), 107 Stat. 313; May 6, 1994, Pub. L. 103–247, § 1(a), 108 Stat. 618; Oct. 13, 1994, Pub. L. 103–354, title I, § 119(a)(3), 108 Stat. 3207; Dec. 8, 1994, Pub. L. 103–465, title IV, § 401(b)(2), 108 Stat. 4957; Aug. 20, 1996, Pub. L. 104–188, title I, § 1954(b)(5), 110 Stat. 1928, related to loans, payments, and acreage reduction programs for 1991 through 1997 crops of upland cotton.