The Secretary may, by mutual agreement with the cooperators on the farm, terminate or modify any such agreement entered into pursuant to this subsection if he determines such action necessary because of any emergency created by drought or other disaster, or in order to alleviate a shortage in the supply of rice.

(8) The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers including provision for sharing, on a fair and equitable basis, in payments under this subsection. (9) In the case in which the failure of a cooperator to comply fully with the terms and conditions of the program formulated under this subsection 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.

(10 The Secretary is authorized to issue such regulations as he determines necessary to carry out the provisions of this subsection. (11) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation.

(12) The provisions of subsection 8(g) of the Soil Conservation and Domestic Allotment Act (relating to assignment of payments) shall apply to payments under this subsection.

(13) Notwithstanding any other provision of law—

(A) The total amount of payments which a person shall be entitled to receive during a crop year under the rice program shall not exceed $55,000.

(B) The term "payments" as used in this paragraph shall not include loans or purchases, or any part of any payment which is determined by the Secretary to represent compensation for resource adjustment or public access for recreation.

(C) If the Secretary determines that the total amount of payments which will be earned by any person under the program in effect for any crop will be reduced under this section, the set-aside acreage for the farm or farms on which such persons will be sharing in payments earned under such program shall be reduced to such extent and in such manner as the Secretary determines will be fair and reasonable in relation to the amount of the payment reduction.

(D) The Secretary shall issue regulations defining the term "person" and prescribing such rules as he determines necessary to assure a fair and reasonable application of such limitation: Provided, That the provisions of this paragraph which limit payments to any person shall not be applicable to lands owned by States, political subdivisions, or agencies thereof, so long as such lands are farmed primarily in the direct furtherance of a public function, as determined by the Secretary. The rules for determining whether corporations and their stockholders may be considered as separate persons shall be in accordance with the regulations issued by the Secretary on December 18, 1970. (7 U.S.C. 1441 (g).)

SEC. 102 [This section was added by section 101 of the Agricultural Act of 1958, 72 Stat. 989, but was applicable only to the 1959 and 1960 crops of cotton. See p. 131 of Agriculture Handbook No. 192.]

PRICE SUPPORT FOR 1961 AND SUBSEQUENT YEARS (COTTON) SEC. 103.10 (a) Notwithstanding the provisions of section 101 of his Act, price support to cooperators for each crop of upland coton, beginning with the 1961 crop, for which producers have not dispproved marketing quotas shall be at such level not more than 90 er centum of the parity price therefor nor less than the minimum evel prescribed below as the Secretary determines appropriate after onsideration of the factors specified in section 401(b) of this Act. or the 1961 crop the minimum level shall be 70 per centum of the arity price therefor, and for each subsequent crop the minimum level hall be 65 per centum of the parity price therefor: Provided, That he price support for the 1964 crop shall be a national average suport price which reflects 30 cents per pound for Middling one-inch otton. Price support in the case of noncooperators and in case mareting quotas are disapproved shall be as provided in section 101(d) 3) and (5). (7 U.S.C. 1444 (a).)

(b) [See (c) below.]

(c) [Subsections (b) and (c) were added by the Act of April 11, 964, P.L. 88-297, 78 Stat. 174, but were applicable only to the 1964 nd 1965 crops of cotton. For the full text, see p. 153 of Agriculture Handbook No. 361.]

(d) [Subsection (d) was added by the Food and Agriculture Act f 1965, P.L. 89-321, 79 Stat. 1194, Nov. 3, 1965. It was effective with espect to the 1966 through 1969 crops of cotton and was extended to le 1970 crop by P.L. 90-559, 82 Stat. 996, Oct. 11, 1968. For the text 1 full, see p. 153 of Agriculture Handbook No. 361.]

(e)11 (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 11a crops of upland cotton 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 reflect for Middling one-inch upland cotton

10 Sec. 103 added by Sec. 102 of the Agricultural Act of 1958, P.L. 85-835, 72 Stat. 39, Aug. 28, 1958, and amended by the Act of April 11, 1964, P.L. 88-297, 78 Stat. 174, 1) by inserting "(a)" before the first sentence; (2) by adding the proviso after the cond sentence; and (3) by adding subsections (b) and (c).

11 Subsection (e) was added by Sec. 602 of the Agricultural Act of 1970, P.L. 91-524, # Stat. 1375, Nov. 30, 1970, effective for the 1971, 1972 and 1973 crops of upland otton. See p. 167 of Agriculture Handbook 444. Sec. 1(20) of the Agriculture and onsumer Protection Act of 1973, P.L. 93-86, Stat. 233, Aug. 10, 1973, amended (1) y substituting:

11a "1971 through 1977" for "1971, 1972, and 1973".

231-511 0774

11c

(micronaire 3.5 through 4.9) at average location in the United States 90 per centum of the average price of American cotton in world markets for such cotton for the three-year period 11b ending July 31 in the year in which the loan level is announced, except that if the loan rate so calculated is higher than the then current level of average world prices for American 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. The average world price for such cotton for such preceding three-year 11 period shall be determined by the Secre tary annually pursuant to a published regulation which shall specify the procedures and the factors to be used by the Secretary in making the world price determination. The loan level for any crop of upland cotton 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 begin ning of the marketing year for any of the 1972 through 1977 crops 11e 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 purchases only on an amount of the cotton of such crop produced on such farm determined by multiplying the yield used in computing payments for such farm by the base acreage allotment for such farm.

(2)12 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 determined by the Secretary, or

(2) the loan level determined under paragraph (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, interest, 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

11b "average price of American cotton in world markets" and "three-year period" for "acreage world price" and "two-year period".

11e the clause beginning with "except that" for the previous directive to make adjustments necessary to keep United States cotton competitive and to retain an adequate share of the world market.

11d "three-year" for "two-year".

11e "any of the 1972 through 1977 crops" for "the 1972 or 1973 crop".

12 Subsection (2) was substantially revised by Sec. 1(20) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 233, Aug. 10, 1973. Effective beginning with the 1974 crop, the 38 cent target price payment formula, with parity, yield, and disaster adjustments, was substituted for a formula applicable to 1971, 1972, and 1973 crops which required a 15 cent preliminary payment with a total payment equal to the difference between average market prices and the higher of 35 cents or 65 percent of parity.

zone, established by the Secretary, who are receiving benefits from any program administered by the United States Department of Agriculture, shall, as a condition of receiving or continuing any such benefits, participate in and cooperate with the eradication project, as specified in regulations of the Secretary.

The Secretary may issue such regulations as he deems necessary to enforce the provisions of this subsection with respect to achieving the compliance of producers and landowners who are not receiving benefits from any program administered by the United States Department of Agriculture. Any person who knowingly violates any such regulation promulgated by the Secretary under this subsection may be assessed a civil penalty of not to exceed $5,000 for each offense. No civil penalty shall be assessed unless the person shall have been given notice and opportunity for a hearing on such charge in the county, parish, or incorporated city of the residence of the person charged. In letermining the amount of the penalty the Secretary shall consider the appropriateness of such penalty to the size of the business of the person charged, the effect on the person's ability to continue in business, and the gravity of the violation. Where special measures deemed essential to achievement of the eradication objective are taken by the project and result in a loss of production and income to the producer, the Secretary shall provide reasonable and equitable indemnification from funds available for the project, and also provide for appropriate protection of the allotment, acreage history, and average yield for the farm. The cost of the program in each eradication zone shall be determined, and cotton producers in the zone shall be required to pay up to one-half thereof, with the exact share in each zone area to be specified by the Secretary upon his finding that such share is reasonable and equitable based on population levels of the target insect and the degree of control measures normally required. Each producer's pro rata share shall be deducted from his cotton payment under this Act or otherwise collected, as provided in regulations of the Secretary. Insofar as practicable, cotton producers and other persons engaged in cotton production in the eradication zone shall be employed to participate in the work of the project in such zone. Funding of the program shall be terminated at such time as the Secretary determines and reports to the Congress that complete eradication of the insects for which programs are undertaken pursuant to this subsection has been accomplished. Funds in custody of agencies carrying out the program shall, upon termination of such program, be accounted for to the Secretary for appropriate disposition.

The Secretary is authorized to cooperate with the Government of Mexico in carrying out operations or measures in Mexico which he deems necessary and feasible to prevent the movement into the United States from Mexico of any insects eradicated under the provisions of this subsection. The measure and character of cooperation carried out under this subsection on the part of the United States and on the part of the Government of Mexico, including the expenditure or use of funds made available by the Secretary under this subsection, shall be such as may be prescribed by the Secretary. Arrangements for the cooperation authorized by this subsection shall be made through and in consultation with the Secretary of State. The Commodity Credit

Corporation shall not make any expenditures for carrying out the purposes of this subsection unless the Corporation has received funds to cover such expenditures from appropriations made to carry out the purposes of this subsection. There are hereby authorized to be appropriated to the Commodity Credit Corporation such sums as the Congress may from time to time determine to be necessary to carry out the purposes of this subsection. (7 U.S.C. 1441 note.)

[AGRICULTURAL ACT OF 1970 15

SEC. 610. The Commodity Credit Corporation, in furtherance of its powers and duties under subsections (e) and (f) of section 5 of the Commodity Credit Corporation Charter Act, shall through the Cotton Board established under the Cotton Research and Promotion Act, and upon approval of the Secretary, enter into agreements with the con tracting organization specified pursuant to section 7(g) of that Act for the conduct, in domestic and foreign markets, of market development, research or sales promotion programs and programs to aid in the development of new and additional markets, marketing facilities and uses for cotton and cotton products, including programs to facili tate the utilization and commercial application of research findings. Each year the amount available for such agreements shall be 10 million dollars.15a The Secretary is authorized to deduct from funds available for payments to producers under section 103 of the Agricultural Act of 1949, as amended, on each of the 1972 through 197715 crops of upland cotton such additional sums for use as specified above (not exceeding $10,000,000 for each crop) as he determines desirable: and the final rate of payment provided in section 103 if higher than the rate of the preliminary payment provided in such section shall be reduced to the extent necessary to defray such costs. No funds made available under this section shall be used for the purpose of influencing legislative action or general farm policy with respect to cotton. (7 U.S.C. 2119.)]

FEED GRAIN PROGRAM

SEC. 105.16 Notwithstanding any other provision of law

15 P.L. 91-524, 84 Stat. 1378, Nov. 30, 1970. Sec. 610 was repealed effective Oct. 1, 1977, by P.L. 94-366, 90 Stat. 991, July 14, 1976.

15a Sec. 1(23) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 235, Aug. 10, 1973, deleted the provision that the funds available each year should be from funds authorized to be made available to cooperators but not paid be cause of a statutory limitation on payments to any producer and substituted "through 1977" for "and 1973".

16 Sec. 501 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1368, Nov. 30, 1970, completely amended section 105, effective only with respect to the 1971, 1972, and 1973 crops of feed grains. See p. 172 of Agricultural Handbook No. 444. Sec. 1(18) of the, Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 230, Aug. 10, 1973, made the amended version, with additional changes noted below, applicable also to the 1974 through 1977 crops. This is the version shown in the text.

The suspended version of subsections (a) and (b) will once more take effect with the 1978 crop and reads as follows:

"Sec. 105. (a) Notwithstanding the provisions of section 101 of this Act, beginning with the 1964 crop, price support shall be made available to producers for each crop of corn at such level, not less than 50 per centum or more than 90 per centum of the parity price therefor, as the Secretary determines will not result in increasing Com modity Credit Corporation stocks of corn: Provided, That in the case of any crop for which an acreage diversion program is in effect for feed grains, the level of price support for corn of such crop shall be at such level not less than 65 per centum or more than 90 per centum of the parity price therefor as the Secretary determines necessary to achieve the acreage reduction goal established by him for the crop.'

"

"(b) Beginning with the 1959 crop, price support shall be made available to pro