7 U.S.C. § 1425a — Producers of honey; loan obligations and

Page 711 TITLE 7—AGRICULTURE § 1425a 1 See References in Text note below. 634(a) is effective beginning with 1989 crop year for honey. EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT Pub. L. 99–198, title X, § 1004, Dec. 23, 1985, 99 Stat. 1447, provided that the amendment made by section 1004 is effective only for the 1986 through 1990 crops. 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)(10) 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)(10) 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)(10) 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)(J) of this title. Executive Documents EXCEPTIONS FROM TRANSFER OF FUNCTIONS Functions of Corporations of Department of Agri- culture, boards of directors and officers of such cor- porations; Advisory Board of Commodity Credit Cor- poration; and Farm Credit Administration or any agen- cy, officer, or entity of, under, or subject to supervision of said Administration excepted from functions of offi- cers, agencies, and employees transferred to Secretary of Agriculture by 1953 Reorg. Plan No. 2, § 1, effective June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section 2201 of this title. § 1425a. Producers of honey; loan obligations and liabilities (a) Loan forfeiture limitation A producer of honey may satisfy the pro- ducer’s obligation to repay a loan, or a portion of a loan, made to the producer under section 1446h 1 of this title by forfeiting the collateral for the loan, or portion of the loan, only if the value of the collateral forfeited, when taken to- gether with the value of the collateral forfeited on any other loan or loans of the person for such crop of honey under section 1446h 1 of this title, does not exceed $200,000 in the 1991 crop year, $175,000 in the 1992 crop year, $150,000 in the 1993 crop year, and $125,000 in each of the 1994 and subsequent crop years: Provided, however, That the loan forfeiture limitation provided by this section shall not be applicable for any crop year for which the Secretary does not permit pro- ducers of honey to repay the price support loans at a level determined under section 1446h(b)(2) 1 of this title. (b) Liability for nonforfeitable part of obligation The producer of honey shall be personally lia- ble for the repayment of a loan or loans made to the producer under the program for the crop of honey involved, with respect to that portion of the loan or loans for which satisfaction of the loan by forfeiture, as provided in subsection (a), is prohibited. (c) Extent of personal liability The loan contracts of the Commodity Credit Corporation entered into with producers of honey shall clearly indicate the extent to which a producer of honey may be personally liable for repayment of a loan under this section. (d) Promulgation of regulations The Commodity Credit Corporation may issue such regulations as the Corporation deems nec- essary to carry out this section. The regulations shall provide for the attribution of the value of collateral forfeited on loans described in sub- section (a). (Oct. 31, 1949, ch. 792, title IV, § 405A, as added Pub. L. 100–460, title VI, § 634(b), Oct. 1, 1988, 102 Stat. 2263; amended Pub. L. 101–624, title X, § 1002, title XI, § 1161(d), Nov. 28, 1990, 104 Stat. 3490, 3521.) Editorial Notes REFERENCES IN TEXT Section 1446h of this title, referred to in subsec. (a), was repealed by Pub. L. 104–127, title I, § 171(b)(2)(H), Apr. 4, 1996, 110 Stat. 938. AMENDMENTS 1990—Subsec. (a). Pub. L. 101–624, § 1161(d), substituted references to sections 1446h and 1446h(b)(2) of this title for references to sections 1446(b) and 1446(b)(2)(B) of this title, respectively. Pub. L. 101–624, § 1002(1), substituted ‘‘person for such crop of honey under section 1446h of this title, does not exceed $200,000 in the 1991 crop year, $175,000 in the 1992 crop year, $150,000 in the 1993 crop year, and $125,000 in each of the 1994 and subsequent crop years’’ for ‘‘pro- ducer for such crop of honey under section 1446(b) of this title, does not exceed $250,000’’. Subsec. (d). Pub. L. 101–624, § 1002(2), inserted provi- sions requiring that the regulations issued pursuant to this subsection provide for the attribution of the value of collateral forfeited on loans described in subsec. (a). 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)(10) 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)(10) 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)(10) 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)(J) of this title. PROHIBITION ON USE OF FUNDS FOR HONEY PAYMENTS OR LOAN FORFEITURES Pub. L. 104–37, title VII, § 718, Oct. 21, 1995, 109 Stat. 331, provided that none of the funds appropriated or otherwise made available by Pub. L. 104–37 were to be Page 712 TITLE 7—AGRICULTURE § 1426 used by the Secretary of Agriculture to provide total amount of payments and/or total amount of loan for- feitures to a person to support the price of honey under this section or former section 1446h of this title in ex- cess of zero dollars in the 1994, 1995, and 1996 crop years. Similar provisions were contained in the following prior appropriation acts: Pub. L. 103–330, title VII, § 723, Sept. 30, 1994, 108 Stat. 2469. Pub. L. 103–111, title VII, § 728, Oct. 21, 1993, 107 Stat. 1081. § 1426. Repealed. Pub. L. 104–127, title I, § 171(b)(2)(I), Apr. 4, 1996, 110 Stat. 938 Section, acts Oct. 31, 1949, ch. 792, title IV, § 406, 63 Stat. 1055; Dec. 23, 1985, Pub. L. 99–198, title X, § 1016, 99 Stat. 1457; Nov. 28, 1990, Pub. L. 101–624, title XI, § 1129, 104 Stat. 3508; Dec. 13, 1991, Pub. L. 102–237, title I, § 113(11), 105 Stat. 1838, provided for advance announce- ment of price support levels. § 1427. Commodity Credit Corporation sales price restrictions (a) In general The Commodity Credit Corporation may sell any farm commodity owned or controlled by the Corporation at any price not prohibited by this section. (b) Inventories In determining sales policies for basic agricul- tural commodities or storable nonbasic com- modities, the Corporation should consider the establishment of such policies with respect to prices, terms, and conditions as the Corporation determines will not discourage or deter manu- facturers, processors, and dealers from acquiring and carrying normal inventories of the com- modity of the current crop. (c) Sales price restrictions (1) In general Except as otherwise provided in this section, the Corporation shall not sell any basic agri- cultural commodity or storable nonbasic com- modity at less than 115 percent of the lower of— (A) the current national average price sup- port loan rate for the commodity adjusted for the current market differentials reflect- ing grade, quality, location, reasonable car- rying charges, and other factors determined appropriate by the Corporation; or (B) the loan repayment level. (2) Extra long staple cotton The Corporation may sell extra long staple cotton for unrestricted use at such price as the Corporation determines is appropriate to maintain and expand export and domestic markets. (3) Oilseeds The Corporation shall not sell oilseeds at less than the lower of— (A) 105 percent of the current national av- erage price support loan rate for the oilseed, adjusted for the current market differentials reflecting grade, quality, location, reason- able carrying charges, and other factors de- termined appropriate by the Corporation; or (B) 115 percent of the loan repayment level. (4) Wheat and feed grains Whenever the producer reserve program for wheat and feed grains established under sec- tion 1445e of this title is in effect, the Corpora- tion may not sell any of its stocks of wheat or feed grains at a level that is less than 150 per- cent of the then current loan rate for wheat or feed grains. (5) Upland cotton The Commodity Credit Corporation shall sell upland cotton for unrestricted use at the same price the Corporation sells upland cotton for export, but in no event at less than the amount provided for in paragraph (1). (d) Nonapplication of sales price restrictions The foregoing restrictions of this section shall not apply to— (1) sales for new or byproduct uses; (2) sales of peanuts and oilseeds for the ex- traction of oil; (3) sales for seed or feed if the sales will not substantially impair any price support pro- gram; (4) sales of commodities that have substan- tially deteriorated in quality or as to which there is a danger of loss or waste through dete- rioration or spoilage; (5) sales for the purpose of establishing claims arising out of contract or against per- sons who have committed fraud, misrepresen- tation, or other wrongful acts with respect to the commodity; (6) sales for export (excluding sales of upland cotton for export); (7) sales of wool; and (8) sales for other than primary uses. (e) Distress, disaster, and livestock emergency areas (1) In general Notwithstanding the foregoing provisions of this section, the Corporation, on such terms and conditions as the Secretary may consider in the public interest, may— (A) make available any farm commodity or product thereof owned or controlled by the Corporation for use in relieving dis- tress— (i) in any area in the United States (in- cluding the Virgin Islands) declared by the President to be an acute distress area be- cause of unemployment or other economic cause, if the President finds that the use will not displace or interfere with normal marketing of agricultural commodities; and (ii) in connection with any major dis- aster determined by the President to war- rant assistance by the Federal Govern- ment under the Disaster Relief and Emer- gency Assistance Act (42 U.S.C. 5121 et seq.); and (B) donate or sell commodities in accord- ance with subchapter V. (2) Costs Except on a reimbursable basis, the Corpora- tion shall not bear any costs in connection with making the commodity available under