7 U.S.C. § 1445g — Production of commodities for conver-

Page 769 TITLE 7—AGRICULTURE § 1445g Dec. 13, 1991, 105 Stat. 1838, provided that: ‘‘In making storage payments to producers under section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e) and to commer- cial warehousemen in accordance with the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), the Commodity Credit Corporation and the Secretary of Agriculture shall, to the extent practicable, ensure that the rates of the storage payments made to pro- ducers are equivalent to average rates paid for com- mercial storage, taking into account the current de- mand for storage for commodities, efficiency, location, regulatory compliance costs, bonding requirements, and impact of user fees as determined by the Secretary, except that the rates paid to producers and commercial warehousemen shall be established at rates that will result in no increase in current or projected combined outlays of the Commodity Credit Corporation for the storage payments made to producers and commercial warehousemen as a result of the adjustment of storage rates under this section.’’ REPAYMENT OF LOANS WITHOUT PENALTY Pub. L. 100–387, title III, § 303(a), Aug. 11, 1988, 102 Stat. 947, provided that effective for the 1988 marketing year for wheat or feed grains, once the market price de- scribed in former clause (5) of the third sentence of sub- section (b) of this section had been reached at any time during such marketing year with respect to such com- modity, producers could repay loans made under this section for such commodity during the remainder of that marketing year without the payment of a penalty. § 1445f. International Emergency Food Reserve The President is encouraged to enter into ne- gotiations with other nations to develop an international system of food reserves to provide for humanitarian food relief needs and to estab- lish and maintain a food reserve, as a contribu- tion of the United States toward the develop- ment of such a system, to be made available in the event of food emergencies in foreign coun- tries. The reserves shall be known as the Inter- national Emergency Food Reserve. (Oct. 31, 1949, ch. 792, title I, § 111, as added Pub. L. 95–113, title XI, § 1102, Sept. 29, 1977, 91 Stat. 953.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as an Effective Date of 1977 Amend- ment note under section 1307 of this title. § 1445g. Production of commodities for conver- sion into industrial hydrocarbons; terms and conditions; incentive payments; regulations; appropriations; effective date Notwithstanding any other provision of this Act— (a) The Secretary may permit, subject to such terms and conditions as the Secretary may pre- scribe, all or any part of the acreage set aside or diverted from the production of a commodity for any crop year under this subchapter to be de- voted to the production of any commodity (other than the commodities for which acreage is being set aside or diverted) for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such pur- pose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income. (b)(1) During any year in which there is no set- aside or diversion of acreage under this sub- chapter, the Secretary may formulate and ad- minister a program for the production, subject to such terms and conditions as the Secretary may prescribe, of commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such pur- pose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income. Under the program, pro- ducers of wheat, feed grains, upland cotton, and rice shall be paid incentive payments to devote a portion of their acreage to the production of commodities for conversion into industrial hy- drocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel. (2) The payments under this subsection shall be at such rate or rates as the Secretary deter- mines to be fair and reasonable, taking into con- sideration the participation necessary to ensure an adequate supply of the agricultural commod- ities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuels. (3) The Secretary may issue such regulations as the Secretary deems necessary to carry out the provisions of this subsection. (4) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this subsection. (5) The provisions of this subsection shall be- come effective October 1, 1978. (Oct. 31, 1949, ch. 792, title I, § 112, as added Pub. L. 95–279, title II, § 201, May 15, 1978, 92 Stat. 241.) Editorial Notes REFERENCES IN TEXT This Act, referred to in provision preceding subsec. (a), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classified prin- cipally to this chapter (§ 1421 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables. Statutory Notes and Related Subsidiaries 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)(6) 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)(6) 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)(6) 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)(F) of this title. Page 770 TITLE 7—AGRICULTURE § 1445h § 1445h. Repealed. Pub. L. 104–127, title I, § 171(b)(2)(F), Apr. 4, 1996, 110 Stat. 938 Section, act Oct. 31, 1949, ch. 792, title I, § 113, as added Dec. 3, 1980, Pub. L. 96–494, title II, § 207, 94 Stat. 2572; amended Dec. 22, 1981, Pub. L. 97–98, title XI, § 1105, 95 Stat. 1264; Dec. 23, 1985, Pub. L. 99–198, title X, § 1011, 99 Stat. 1454; Nov. 28, 1990, Pub. L. 101–624, title XI, § 1125, 104 Stat. 3506, authorized Secretary to announce and provide for supplemental set-aside and acreage lim- itation program. § 1445i. Multiyear set-aside contracts for 1986 through 1990 crops of wheat, feed grains, up- land cotton, and rice Notwithstanding any other provision of law: (1) The Secretary of Agriculture may enter into multiyear set-aside contracts for a period not to extend beyond the 1990 crops. Such con- tracts may be entered into only as a part of the programs in effect for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, and only producers participating in one or more of such programs shall be eligible to contract with the Secretary under this sec- tion. Producers agreeing to a multiyear set- aside agreement shall be required to devote the set-aside acreage to vegetative cover capa- ble of maintaining itself through such period to provide soil protection, water quality en- hancement, wildlife production, and natural beauty. Grazing of livestock under this section shall be prohibited, except in areas of a major disaster, as determined by the President, if the Secretary finds there is a need for such grazing as a result of such disaster. Producers entering into agreements under this section shall also agree to comply with all applicable State and local laws and regulations gov- erning noxious weed control. (2) The Secretary shall provide cost-sharing incentives to farm operators for the establish- ment of vegetative cover, whenever a multiyear set-aside contract is entered into under this section. (3) The Secretary may issue such regulations as the Secretary determines necessary to carry out this section. (4) The Secretary shall carry out the pro- gram authorized by this section through the Commodity Credit Corporation. (Pub. L. 99–198, title X, § 1010, Dec. 23, 1985, 99 Stat. 1454.) Editorial Notes CODIFICATION Section was enacted as part of the Food Security Act of 1985, 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. § 1445j. Deficiency and land diversion payments (a) Deficiency payments (1) In general If the Secretary establishes an acreage limi- tation program for any of the 1991 through 1997 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that defi- ciency payments will likely be made for the commodity for the crop, the Secretary shall make advance deficiency payments available to producers for each of the crops. (2) Terms and conditions Advance deficiency payments under para- graph (1) shall be made to the producer under the following terms and conditions: (A) Form Such payments may be made available in the form of— (i) cash; (ii) commodities owned by the Com- modity Credit Corporation and certificates redeemable in a commodity owned by the Commodity Credit Corporation, except that not more than 50 percent of the pay- ments may be made in commodities or the certificates in the case of any producer; or (iii) any combination of clauses (i) and (ii). (B) Commodities and certificates If payments are made available to pro- ducers as provided for under subparagraph (A)(ii), such producers may elect to receive such payments either in the form of— (i) such commodities; or (ii) such certificates. (C) Maturity Such a certificate shall be redeemable for a period not to exceed 3 years from the date the certificate is issued. (D) Storage The Commodity Credit Corporation shall pay the cost of storing a commodity that may be received under such a certificate until such time as the certificate is re- deemed. (E) Timing The payments shall be made available as soon as practicable after the producer enters into a contract with the Secretary to par- ticipate in such program. (F) Amounts The payments shall be made available in such amounts as the Secretary determines appropriate to encourage adequate partici- pation in the program, except that the amount may not exceed an amount deter- mined by multiplying— (i) the estimated payment acreage for the crop; by (ii) the farm program payment yield for the crop; by (iii)(I) in the case of wheat and feed grains, not less than 40 percent, nor more than 50 percent, of the projected payment rate; and (II) in the case of rice and upland cotton, not less than 30 percent, nor more than 50 percent, of the projected payment rate, as determined by the Secretary. (G) Repayment If the deficiency payment payable to a pro- ducer for a crop, as finally determined by