7 U.S.C. § 1332 — National marketing quota

Page 620 TITLE 7—AGRICULTURE § 1332 trously low prices of wheat and other grains to wheat producers, destroy the purchasing power of grain producers for industrial products, and reduce the value of the agricultural assets sup- porting the national credit structure. Such shortages of wheat result in unreasonably high prices of flour and bread to consumers and loss of market outlets by wheat producers. The conditions affecting the production and marketing of wheat are such that, without Fed- eral assistance, farmers, individually or in co- operation, cannot effectively prevent the recur- rence of such surpluses and shortages and the burdens on interstate and foreign commerce re- sulting therefrom, maintain normal supplies of wheat, or provide for the orderly marketing thereof in interstate and foreign commerce. Wheat which is planted and not disposed of prior to the date prescribed by the Secretary for the disposal of excess acres of wheat is an addi- tion to the total supply of wheat and has a di- rect effect on the price of wheat in interstate and foreign commerce and may also affect the supply and price of livestock and livestock prod- ucts. In the circumstances, wheat not disposed of prior to such date must be considered in the same manner as mechanically harvested wheat in order to achieve the policy of the chapter. The diversion of substantial acreages from wheat to the production of commodities which are in surplus supply or which will be in surplus supply if they are permitted to be grown on the diverted acreage would burden, obstruct, and ad- versely affect interstate and foreign commerce in such commodities, and would adversely affect the prices of such commodities in interstate and foreign commerce. Small changes in the supply of a commodity could create a sufficient surplus to affect seriously the price of such commodity in interstate and foreign commerce. Large changes in the supply of such commodity could have a more acute effect on the price of the commodity in interstate and foreign commerce and, also, could overtax the handling, proc- essing, and transportation facilities through which the flow of interstate and foreign com- merce in such commodity is directed. Such ad- verse effects caused by overproduction in one year could further result in a deficient supply of the commodity in the succeeding year, causing excessive increases in the price of the com- modity in interstate and foreign commerce in such year. It is, therefore, necessary to prevent acreage diverted from the production of wheat to be used to produce commodities which are in surplus supply or which will be in surplus supply if they are permitted to be grown on the di- verted acreage. The provisions of this subpart affording a co- operative plan to wheat producers are necessary in order to minimize recurring surpluses and shortages of wheat in interstate and foreign commerce, to provide for the maintenance of adequate reserve supplies thereof, to provide for an adequate and orderly flow of wheat and its products in interstate and foreign commerce at prices which are fair and reasonable to farmers and consumers, and to prevent acreage diverted from the production of wheat from adversely af- fecting other commodities in interstate and for- eign commerce. (Feb. 16, 1938, ch. 30, title III, § 331, 52 Stat. 52; Pub. L. 87–703, title III, § 310, Sept. 27, 1962, 76 Stat. 618.) Editorial Notes AMENDMENTS 1962—Pub. L. 87–703 provided additional findings re- specting the addition of wheat to total supply of wheat and effect of such addition on price of wheat and supply and price of livestock and livestock products, the need to prevent the use of acreage diverted from wheat pro- duction to produce other commodities in surplus supply and the consequences of a small or large change in the supply of a commodity and the necessity of a coopera- tive plan to wheat producers to provide for flow of wheat at fair and reasonable prices to farmers and con- sumers and to prevent diverted acreage from produc- tion of wheat from adversely affecting other commod- ities in interstate and foreign commerce. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87–703 effective only with re- spect to programs applicable to crops planted for har- vest in calendar year 1964 or any subsequent year and marketing years beginning in calendar year 1964, or any subsequent year, see section 323 of Pub. L. 87–703, set out as a note under section 1301 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(a)(1) 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(a)(1) 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(a)(1) of this title. Section inapplicable to 1996 through 2001 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(a)(1)(A) of this title. Pub. L. 101–624, title III, § 303, Nov. 28, 1990, 104 Stat. 3400, provided that: ‘‘Sections 331 through 339, 379b, and 379c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through 1339, 1379b, and 1379c) shall not be applicable to the 1991 through 1995 crops of wheat.’’ Pub. L. 99–198, title III, § 310(b), Dec. 23, 1985, 99 Stat. 1395, provided that: ‘‘Sections 331, 339, 379b, and 379c of such Act [the Agricultural Adjustment Act of 1938] (7 U.S.C. 1331, 1339, 1379b, and 1379c) shall not be applica- ble to the 1986 through 1990 crops of wheat.’’ Pub. L. 97–98, title III, § 303, Dec. 22, 1981, 95 Stat. 1227, provided that: ‘‘Sections 331, 332, 333, 334, 335, 336, 338, 339, 379b, and 379c of the Agricultural Adjustment Act of 1938 [this section and sections 1332, 1333, 1334, 1335, 1336, 1338, 1339, 1379b, and 1379c of this title] shall not be applicable to the 1982 through 1985 crops of wheat.’’ Pub. L. 95–113, title IV, § 404, Sept. 29, 1977, 91 Stat. 927, provided that: ‘‘Sections 331, 332, 333, 334, 335, 336, 338, 339, 379b, and 379c of the Agricultural Adjustment Act of 1938, as amended [this section and sections 1332, 1333, 1334, 1335, 1336, 1338, 1339, 1379b, and 1379c of this title], shall not be applicable to the 1978 through 1981 crops of wheat.’’ Pub. L. 91–524, title IV, § 404(1), Nov. 30, 1970, 84 Stat. 1366, as amended by Pub. L. 93–86, § 1(11), Aug. 10, 1973, 87 Stat. 229, provided that this section is not applicable to 1971 through 1977 crops of wheat. § 1332. National marketing quota (a) Proclamation; duration of program Whenever prior to April 15 in any calendar year the Secretary determines that the total Page 621 TITLE 7—AGRICULTURE § 1332 supply of wheat in the marketing year begin- ning in the next succeeding calendar year will, in the absence of a marketing quota program, likely be excessive, the Secretary shall proclaim that a national marketing quota for wheat shall be in effect for such marketing year and for ei- ther the following marketing year or the fol- lowing two marketing years, if the Secretary de- termines and declares in such proclamation that a two- or three-year marketing quota program is necessary to effectuate the policy of the chap- ter. (b) Amount; minimum If a national marketing quota for wheat has been proclaimed for any marketing year, the Secretary shall determine and proclaim the amount of the national marketing quota for such marketing year not earlier than January 1 or later than April 15 of the calendar year pre- ceding the year in which such marketing year begins. The amount of the national marketing quota for wheat for any marketing year shall be an amount of wheat which the Secretary esti- mates (i) will be utilized during such marketing year for human consumption in the United States as food, food products, and beverages, composed wholly or partly of wheat, (ii) will be utilized during such marketing year in the United States for seed, (iii) will be exported ei- ther in the form of wheat or products thereof, and (iv) will be utilized during such marketing year in the United States as livestock (including poultry) feed, excluding the estimated quantity of wheat which will be utilized for such purpose as a result of the substitution of wheat for feed grains under section 1339c of this title; less (A) an amount of wheat equal to the estimated im- ports of wheat into the United States during such marketing year and, (B) if the stocks of wheat owned by the Commodity Credit Corpora- tion are determined by the Secretary to be ex- cessive, an amount of wheat determined by the Secretary to be a desirable reduction in such marketing year in such stocks to achieve the policy of the chapter: Provided, That if the Sec- retary determines that the total stocks of wheat in the Nation are insufficient to assure an ade- quate carryover for the next succeeding mar- keting year, the national marketing quota oth- erwise determined shall be increased by the amount the Secretary determines to be nec- essary to assure an adequate carryover: And pro- vided further, That the national marketing quota for wheat for any marketing year shall be not less than one billion bushels. (c) National emergencies or material increase in demand; investigation; increase or termi- nation If, after the proclamation of a national mar- keting quota for wheat for any marketing year, the Secretary has reason to believe that, be- cause of a national emergency or because of a material increase in the demand for wheat, the national marketing quota should be terminated or the amount thereof increased, he shall cause an immediate investigation to be made to deter- mine whether such action is necessary in order to meet such emergency or increase in the de- mand for wheat. If, on the basis of such inves- tigation, the Secretary finds that such action is necessary, he shall immediately proclaim such finding and the amount of any such increase found by him to be necessary and thereupon such national marketing quota shall be so in- creased or terminated. In case any national marketing quota is increased under this sub- section, the Secretary shall provide for such in- crease by increasing acreage allotments estab- lished under this subpart by a uniform percent- age. (d) Farm marketing quotas for wheat crops planted in calendar years 1966–1970 Notwithstanding any other provision of this chapter, the Secretary shall proclaim a national marketing quota for the crops of wheat planted for harvest in the calendar years 1966 through 1970, and farm marketing quotas shall not be in effect for such crops of wheat. (Feb. 16, 1938, ch. 30, title III, § 332, 52 Stat. 53; Aug. 28, 1954, ch. 1041, title III, § 307, 68 Stat. 903; Pub. L. 87–703, title III, § 311, Sept. 27, 1962, 76 Stat. 619; Pub. L. 89–321, title V, § 501(1), Nov. 3, 1965, 79 Stat. 1199; Pub. L. 90–559, § 1(1), Oct. 11, 1968, 82 Stat. 996; Pub. L. 99–198, title III, § 302, Dec. 23, 1985, 99 Stat. 1378.) Editorial Notes AMENDMENTS 1985—Pub. L. 99–198 temporarily substituted ‘‘Procla- mation of marketing quotas’’ for ‘‘National marketing quota’’ in section catchline. See Effective and Termi- nation Dates of 1985 Amendment note below. Subsec. (a). Pub. L. 99–198 amended subsec. (a) gen- erally, temporarily substituting provisions defining the terms ‘‘base period’’ and ‘‘marketing quota period’’ for provisions which authorized the Secretary to proclaim a national marketing quota for wheat for either a two- or three-year period. See Effective and Termination Dates of 1985 Amendment note below. Subsec. (b). Pub. L. 99–198 amended subsec. (b) gen- erally, temporarily substituting provisions authorizing the proclamation of a national marketing quota for each marketing year, not later than June 15, 1986, in an amount which the Secretary determines is required to meet anticipated needs during such marketing year, and the conducting of a marketing quota referendum not later than Aug. 1, 1986 for provisions which had au- thorized the proclamation of a national marketing quota upon a determination made between Jan. 1 and Apr. 15 of the calendar year preceding the year in which the marketing year began, which determination had to provide a minimum of one billion bushels for any mar- keting year, and investigation of stocks to adjust for imports and excessive or insufficient amounts gen- erally. See Effective and Termination Dates of 1985 Amendment note below. Subsec. (c). Pub. L. 99–198 amended subsec. (c) gen- erally, temporarily substituting provisions requiring the Secretary to adjust or terminate the national mar- keting quota in the event of a national emergency or material change in the demand for wheat for provisions which had required the Secretary to cause an imme- diate investigation to be made to determine whether termination or increase in the quota was necessary in order to meet such emergency or increase in demand, and struck out provisions requiring the Secretary to proclaim such findings and the amount of any increase, with any such increase to be based on a uniform per- centage. See Effective and Termination Dates of 1985 Amendment note below. Subsec. (d). Pub. L. 99–198 amended section generally, temporarily striking out subsec. (d) which provided for farm marketing quotas for wheat crops planted in cal- endar years 1969–1970. See Effective and Termination Dates of 1985 Amendment note below. Page 622 TITLE 7—AGRICULTURE § 1333 1968—Subsec. (d). Pub. L. 90–559 provided for a one year extension through 1970. 1965—Subsec. (b). Pub. L. 89–321 changed item (iv) from the average amount of wheat which was used for livestock feed during 1959–60 to the amount which will be utilized during the marketing year for which the quota is being determined for livestock feed, excluding the estimated quantity of wheat which will be utilized for such purpose as a result of the substitution of wheat for feed grains under section 1339c of this title. Subsec. (d). Pub. L. 89–321 added subsec. (d). 1962—Pub. L. 87–703 substituted provisions for procla- mation of a national marketing quota upon a deter- mination made prior to April 15 in any calendar year, the duration of such a program, the amount of, includ- ing the minimum, quota, and investigation of stocks to increase or terminate the quota during national emer- gencies or material increase in demand for provision for proclamation, not later than May 15 of each cal- endar year, of a national marketing quota for the crop produced in the next calendar year. 1954—Act Aug. 28, 1954, struck out proclamations re- lating to supplies, and changed proclamation date from July 15 to May 15. Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES OF 1985 AMENDMENT Pub. L. 99–198, title III, § 302, Dec. 23, 1985, 99 Stat. 1378, provided that the amendment made by that sec- tion is effective only for the 1987 through 1990 crops of wheat. EFFECTIVE DATE OF 1965 AMENDMENT Pub. L. 89–321, title V, § 501, Nov. 3, 1965, 79 Stat. 1199, provided that the amendments made by section 501 (amending this section and sections 1333, 1334, 1335, and 1339 of this title) are effective beginning with the crop planted for harvest in the calendar year 1966. EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87–703 effective only with re- spect to programs applicable to crops planted for har- vest in calendar year 1964 or any subsequent year and marketing years beginning in calendar year 1964, or any subsequent year, see section 323 of Pub. L. 87–703, set out as a note under section 1301 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(a)(1) 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(a)(1) 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(a)(1) of this title. Section inapplicable to 1996 through 2001 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(a)(1)(A) of this title. Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of Pub. L. 101–624, set out as a note under section 1331 of this title. Pub. L. 101–270, Apr. 10, 1990, 104 Stat. 134, provided: ‘‘That section 332 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1332) shall not be applicable to the 1991 crop of wheat.’’ Pub. L. 99–198, title III, § 310(a), Dec. 23, 1985, 99 Stat. 1395, provided that: ‘‘Sections 332, 333, 334, 335, 336, and 338 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1332–1336 and 1338) shall not be applicable to the 1986 crop of wheat.’’ Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of Pub. L. 97–98, set out as a note under section 1331 of this title. Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of Pub. L. 95–113, set out as a note under section 1331 of this title. Pub. L. 91–524, title IV, § 404(1), Nov. 30, 1970, 84 Stat. 1366, as amended by Pub. L. 93–86, § 1(11), Aug. 10, 1973, 87 Stat. 229, provided that this section is not applicable to 1971 through 1977 crops of wheat. 1965 CROP NATIONAL MARKETING QUOTA AND CROP ACREAGE ALLOTMENT Pub. L. 88–297, title II, § 201, Apr. 11, 1964, 78 Stat. 178, directed Secretary to not proclaim a national mar- keting quota for 1965 crop of wheat and that farm mar- keting quotas shall not be in effect for such crop of wheat, and required Secretary to proclaim a national acreage allotment for 1965 crop of wheat which shall be the number of acres which he determined would make available an adequate supply of wheat, but not less than forty-nine million five hundred thousand acres. DEFERRAL OF PROCLAMATION FOR 1963 CROP Pub. L. 87–485, June 15, 1962, 76 Stat. 103, authorized Secretary of Agriculture to defer until July 15, 1962, any proclamation under this section with respect to a national acreage allotment for 1963 crop of wheat and any proclamation under section 1335 of this title with respect to marketing quotas for such crop of wheat. Pub. L. 87–450, May 15, 1962, 76 Stat. 69, authorized Secretary of Agriculture to defer until June 15, 1962, any proclamation under this section with respect to a national acreage allotment for 1963 crop of wheat and any proclamation under section 1335 of this title for such crop of wheat. DEFERRAL OF PROCLAMATION FOR 1960 CROP Pub. L. 86–27, May 15, 1959, 73 Stat. 25, authorized Sec- retary of Agriculture to defer until June 1, 1959, any proclamation under this section with respect to a na- tional acreage allotment for 1960 crop of wheat and any proclamation under section 1335 of this title with re- spect to marketing quotas for such crop of wheat. § 1333. National acreage allotment The Secretary shall proclaim a national acre- age allotment for each crop of wheat. The amount of the national acreage allotment for any crop of wheat shall be the number of acres which the Secretary determines on the basis of the projected national yield and expected under- plantings (acreage other than that not harvested because of program incentives) of farm acreage allotments will produce an amount of wheat equal to the national marketing quota for wheat for the marketing year for such crop, or if a na- tional marketing quota was not proclaimed, the quota which would have been determined if one had been proclaimed. (Feb. 16, 1938, ch. 30, title III, § 333, 52 Stat. 53; June 20, 1938, ch. 518, 52 Stat. 775; July 26, 1939, ch. 377, 53 Stat. 1125; July 3, 1948, ch. 827, title II, § 207(b), 62 Stat. 1257; Pub. L. 87–703, title III, § 312, Sept. 27, 1962, 76 Stat. 620; Pub. L. 89–321, title V, § 501(2), Nov. 3, 1965, 79 Stat. 1199; Pub. L. 99–198, title III, § 303, Dec. 23, 1985, 99 Stat. 1379.) Editorial Notes AMENDMENTS 1985—Pub. L. 99–198 amended section generally, tem- porarily substituting provisions relating to the estab- lishment and determination of a marketing quota ap- portionment factor for each crop of wheat for which a national marketing quota is proclaimed under section 1332 of this title for provisions relating to the procla- mation and determination of a national acreage allot-