the current support price for cotton plus reasonable carrying charges, except that the Corporation may, in an orderly manner and so as not to affect market prices unduly, sell for unrestricted use at the market price at the time of sale a number of bales of cotton equal to the number of bales by which the national marketing quota for such marketing year is reduced below the estimated domestic consumption and exports for such marketing year pursuant to the provisions of section 342 of the Agricultural Adjustment Act of 1938, as amended: Provided further,10 That beginning August 1, 1964, the Commodity Credit Corporation may sell upland cotton for unrestricted use at not less than 105 per centum of the current loan rate for such cotton under section 103 (a) plus reasonable carrying charges: Provided further, That if a wheat marketing allocation program is in effect, the current support price for wheat shall be the support price for wheat not accompanied by marketing certificates: Provided,12 That whenever the Secretary of Agriculture determines that the carryover at the end of any marketing year of a price supported agricultural commodity for which a voluntary adjustment program is in effect will be less than 25 per centum (35 per centum in the case of wheat) of the estimated export and domestic consumption of such commodity during such marketing year, the Commodity Credit Corporation shall not sell any of its stocks of such commodity during such year for unrestricted use at less than 115 per centum (120 per centum in the case of wheat whenever its carryover will be less than 25 per centum of such estimated export and domestic consumption) of the current price support loan plus reasonable carrying charges. The foregoing restrictions shall not apply to (A) sales for new or byproduct uses; (B) sales of peanuts and oilseeds for the extraction of oil; (C) sales for seed or feed if such sales will not substantially impair any price-support program; (D) sales of commodities which have substantially deteriorated in quality or as to which there is a danger of loss or waste through deterioration or spoilage; (E) sales for the purpose of establishing claims arising out of contract or against persons who have committed fraud, misrepresentation, or other wrongful acts with respect to the commodity; (F) sales for export; (G) sales of wool; and (H) sales for other than primary uses. Notwithstanding the foregoing, the Corporation, on such terms and conditions as the Secretary may deem in the public interest, shall make available any farm commodity or product thereof owned or controlled by it for use in relieving distress (1) in any area in the United States including the Virgin Islands 43 declared by the President to be an acute distress area because of unemployment or other economic cause

40 This proviso was added by Pub. L. 88-297, 78 Stat. 175, approved April 11, 1964. 41 This proviso was substituted for the previous proviso by Pub. L. 88-297, 78 Stat. 183, approved April 11, 1964, and was effective only with respect to the marketing years beginning in the calendar years 1964 and 1965. The proviso was made effective for the marketing years beginning in the calendar years 1964 through 1969 by the Food and Agriculture Act of 1965. Pub. L. 89-321, 79 Stat. 1203, approved November 3, 1965. The final year of the period was extended from 1969 to 1970 by Pub. L. 90-559, 82 Stat. 996, approved October 11, 1968. The previous proviso which was added by the Food and Agriculture Act of 1962, 76 Stat. 631 and which provided as follows: "Provided, That if a wheat marketing allocation program is in effect, the current support price for wheat shall be the support price for wheat accompanied by marketing certificate and wheat sold shall be accompanied by a marketing certificate." will again become effective for the marketing year beginning in the calendar year 1971.

42 This proviso was added by the Food for Peace Act of 1966, 80 Stat. 1538, approved November 11, 1966, and is effective January 1, 1967.

43 The words "including the Virgin Islands" were added by Pub. L. 88-585, 78 Stat. 927, approved September 11, 1964.

if the President finds that such use will not displace or interfere with normal marketing of agricultural commodities and (2) in connection with any major disaster determined by the President to warrant assistance by the Federal Government under Public Law 875, Eighty-first Congress, as amended (42 U.S.C. 1855) and shall make feed owned or controlled by it available at any price not less than 75 per centum of the current basic county support rate for such feed including the value of any applicable price support payment in kind (or a comparable price if there is no current basic county support rate) for assistance in the preservation and maintenance of foundation herds of cattle (including producing dairy cattle), sheep, and goats, and their offspring, in any area of the United States including the Virgin Islands 45 where, because of flood, drought, fire, hurricane, earthquake, storm, disease, insect infestation, or other catastrophe in such areas, the Secretary determines that an emergency exists which warrants such assistance, such feed to be made available only to persons who do not have, and are unable to obtain through normal channels of trade without undue financial hardship, sufficient feed for such livestock: Provided, That the Secretary may provide for the furnishing of feed or mixed feed, in accordance with regulations prescribed by him, to such persons by feed dealers under an arrangement whereby the feed grains (or other feed being sold by the Corporation) in the feed so furnished would be replaced with feed owned or controlled by the Corporation and sold to such persons at a price determined as provided above. Except on a reimbursable basis, the Corporation shall not bear any costs in connection with making such commodity available beyond the cost of the commodities to the Corporation in store and the handling and transportation costs in making delivery of the commodity to designated agencies at one or more central locations in each State or other area. Nor shall the foregoing restrictions apply to sales of commodities the disposition of which is desirable in the interest of the effective and efficient conduct of the Corporation's operations because of the small quantities involved, or because of age, location or questionable continued storability, but such sales shall be offset by such purchases of commodities as the Corporation determines are necessary to prevent such sales from substantially impairing any price-support program, but in no event shall the purchase price exceed the then current support price for such commodities.47 For the purposes of this section, sales for export shall not only include sales made on condition that the identical commodities sold be exported, but shall also include sales made on condition that commodities of the same kind and of comparable value or quantity be exported, either in raw or processed form.48 Notwithstanding the foregoing, whenever prior to December 31, 1963, the Secretary determines it necessary in order to assure the Nation an adequate supply of milk free of contamination by radioactive fallout, he may make feed owned or controlled by the Commodity Credit

44 See Act of September 21, 1959, 73 Stat. 574 (p. 231). The language appearing after "(42 U.S.C. 1855) was added by the Act of August 7, 1961, 75 Stat. 293, and was further amended by Pub. L. 88-585, 78 Stat. 927, approved September 11, 1964, by adding the proviso.

45 See footnote 44.

46 The words "or other area" were added by Pub. L. 88-585, 78 Stat. 927, approved September 11, 1964, by adding the proviso.

47 This sentence was added by the Act of July 29, 1954, 68 Stat. 583.

48 This sentence was added by the Act of January 28, 1956, 70 Stat. 6.

49

Corporation available to producers of milk in any area or areas of the United States at such prices and on such terms and conditions as he deems appropriate in the public interest. Notwithstanding any other provision of this section, for the period August 1, 1966, through July 31, 1971, (1) the Commodity Credit Corporation shall sell upland cotton for unrestricted use at the same prices as it sells cotton for export, in no event, however, at less than 110 per centum of the loan rate, and (2) the Commodity Credit Corporation shall sell or make available for unrestricted use at current market prices in each marketing year a quantity of upland cotton equal to the amount by which the production of upland cotton is less than the estimated requirements for domestic use and for export for such marketing year.50 The Secretary may make such estimates and adjustments therein at such times as he determines will best effectuate the provisions of part (1) of the foregoing sentence and such quantities of cotton as are required to be sold under such sentence shall be offered for sale in an orderly manner and so as not to affect market prices unduly.51 Notwithstanding any other provision of this section, effective August 1, 1968, the Commodity Credit Corporation shall make available during each marketing year for sale for unrestricted use at market prices at the time of sale, a quantity of American grown extra long staple cotton equal to the amount by which the production of such cotton in the calendar year in which such marketing year begins is less than the estimated requirements of American grown extra long staple cotton for domestic use and for export for such marketing year: Provided, That no sales shall be made at less than 115 per centum of the loan rate for extra long staple cotton under section 101 (f) of this Act beginning with the marketing year for the first crop for which the national marketing quota for extra long staple cotton is not established under paragraph (3) of section 347 (b) of the Agricultural Adjustment Act of 1938, as amended. The Secretary may make such estimates and adjustments therein at such times as he determines will best effectuate the provisions of the foregoing sentence and such quantities of cotton as are required to be sold under such sentence shall be offered for sale in an orderly manner and so as not to affect market prices unduly.52 (7 U.S.Č. 1427.)

DEFINITIONS

SEC. 408. For the purposes of this Act

STORABLE COMMODITIES

(a) A commodity shall be considered storable upon determination by the Secretary that, in normal trade practice, it is stored for substantial periods of time and that it can be stored under the pricesupport program without excessive loss through deterioration or spoil

49 This sentence was added by section 404 of the Food and Agriculture Act of 1962, 76 Stat. 632.

50 This sentence was added by the Food and Agriculture Act of 1965, Pub. L. 89-321, 79 Stat. 1197, approved November 3, 1965. The final year was extended from 1970 to 1971 by Pub. L. 90-559, 82 Stat. 996, approved October 11, 1968.

51 See footnote 50.

52 The final sentence was added by Pub. L. 90-475, 82 Stat. 703, approved August 11,

age or without excessive cost for storage for such periods as will permit its disposition without substantial impairment of the effectiveness of the price-support program. (7 U.S.C. 1428 (a).)

53

COOPERATOR

(b) 5 A "cooperator" with respect to any basic agricultural commodity shall be a producer on whose farm the acreage planted to the commodity does not exceed the farm acreage allotment for the commodity under title III of the Agricultural Adjustment Act of 1938, as amended, or in the case of price support for corn or wheat to a producer outside the commercial corn-producing or wheat-producing area, a producer who complies with conditions of eligibility prescribed by the Secretary: Provided,54 That for upland cotton a cooperator shall be a producer on whose farm the acreage planted to such cotton does not exceed the cooperator percentage, which shall be in the case of the 1966 crop, 87.5 per centum of such farm acreage allotment and, in the case of each of the 1967 through 1970 crops, such percentage, not less than 87.5 or more than 100 per centum, of such farm acreage allotment as the Secretary may specify for such crop, except that in the case of small farms (i.e., farms on which the acreage allotment is 10 acres or less, or on which the projected farm yield times the acreage allotment is 3,600 pounds or less, and the acreage allotment has not been reduced under section 344 (m)) the acreage of cotton on the farm shall not be required to be reduced below the farm acreage allotment. For the purpose of this subsection, a producer shall not be deemed to have exceeded his farm acreage allotment unless such producer knowingly exceeded such allotment.55 (7 U.S.C. 1428 (b).)

BASIC AGRICULTURAL COMMODITY

(c) A "basic agricultural commodity" shall mean corn, cotton, peanuts, rice, tobacco, and wheat, respectively. (7 U.S.C. 1428 (c).)

NONBASIC AGRICULTURAL COMMODITY

(d) A "nonbasic agricultural commodity" shall mean any agricultural commodity other than a basic agricultural commodity. (7 U.S.C. 1428 (d).)

SUPPLY PERCENTAGE

(e) The "supply percentage" as to any commodity shall be the percentage which the estimated total supply is of the normal supply as determined by the Secretary from the latest available statistics of the Department of Agriculture as of the beginning of the marketing year for the commodity. (7 U.S.C. 1428 (e).)

63 The words "or wheat" and "or wheat-producing" were added by section 209 of the Agricultural Act of 1954, 68 Stat. 901.

The proviso was added by the Food and Agriculture Act of 1965, Pub. L. 89-321, 79 Stat. 1197, approved November 3, 1965, and is effective only for the 1966 through 1970 crops. The final year of the period was extended from 1969 to 1970 by Pub. L. 90-559, 82 Stat. 996, approved October 11, 1968.

55 See section 374 (c) of the Agricultural Adjustment Act of 1938 as to adjusting planted acreage.

TOTAL SUPPLY

(f) "Total supply" 56 of any nonbasic agricultural commodity for any marketing year shall be the carry-over at the beginning of such marketing year, plus the estimated production of the commodity in the United States during the calendar year in which such marketing year begins and the estimated imports of the commodity into the United States during such marketing year. (7 U.S.C. 1428(f).)

CARRY-OVER

(g) "Carry-over" 57 of any nonbasic agricultural commodity for any marketing year shall be the quantity of the commodity on hand in the United States at the beginning of such marketing year, not including any part of the crop or production of such commodity which was produced in the United States during the calendar year then current. The carry-over of any such commodity may also include the quantity of such commodity in processed form on hand in the United States at the beginning of such marketing year, if the Secretary determines that the inclusion of such processed quantity of the commodity is necessary to effectuate the purposes of this Act. (7 U.S.C. 1428 (g).)

NORMAL SUPPLY

(h) "Normal supply" " of any nonbasic agricultural commodity for any marketing year shall be (1) the estimated domestic consumption of the commodity for the marketing year for which such normal supply is being determined, plus (2) the estimated exports of the commodity for such marketing year, plus (3) an allowance for carryover. The allowance for carry-over shall be the average carry-over of the commodity for the five marketing years immediately preceding the marketing year in which such normal supply is determined, adjusted for surpluses or deficiencies caused by abnormal conditions, changes in marketing conditions, or the operation of any agricultural program. In determining normal supply, the Secretary shall make such adjustments for current trends in consumption and for unusual conditions as he may deem necessary. (7 U.S.C. 1428 (h).)

MARKETING YEAR

(i) “Marketing year" 57 for any nonbasic agricultural commodity means any period determined by the Secretary during which substantially all of the crop or production of such commodity is normally marketed by the producers thereof. (7 U.S.C. 1428 (i).)

TERMS DEFINED IN AGRICULTURAL ADJUSTMENT ACT OF 1938

(j) Any term defined in the Agricultural Adjustment Act of 1938, shall have the same meaning when used in this Act. (7 U.S.C. 1428 (j).)

56 See section 301 (b) of the Agricultural Adjustment Act of 1938 for definitions applicable to basic commodities.

57 See footnote 56.