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 99 STAT. 1432

PUBLIC LAW 99-198—DEC. 23, 1985

for any 2 of the 3 marketing years preceding the marketing year for which the determination is being made was not produced, or considered produced, on the farm. Prohibition. "(B) For the purposes of this paragraph, the farm poundage quota for any such preceding marketing year shall not include— "(i) any increases for undermarketing of quota peanuts from 1} previous years; or "(ii) any increase resulting from the allocation of quotas voluntarily released for one year under paragraph (7). "(4) For purposes of this subsection, the farm poundage quota shall be considered produced on a farm if— "(A) the farm poundage quota was not produced on the farm b^-- because of drought, flood, or any other natural disaster, or any other condition beyond the control of the producer, as deter^ '• mined by the Secretary; or "(B) the farm poundage quota for the farm was released voluntarily under paragraph (7) for only 1 of the 3 marketing years immediately preceding the marketing year for which the determination is being made. "(5) Notwithstanding any other provision of law— "(A) the farm poundage quota established for a farm under ' this subsection, or any part of such quota, may be permanently released by the owner of the farm, or the operator with the permission of the owner; and "(B) the poundage quota for the farm for which such quota is released shall be adjusted downward to reflect the quota that is so released. "(6)(A) Except as provided in subparagraph (B), the total amount of the farm poundage quotas reduced or voluntarily released from »<:>; 6 • "_ farms in a State for any marketing year under paragraphs (3) and (5) shall be allocated, as the Secretary may by regulation prescribe, to other farms in the State on which peanuts were produced in at legist 2 of the 3 crop years immediately preceding the year for which such allocation is being made. "(B) Not less than 25 percent of such total amount of farm poundage quota in the State shall be allocated to farms for which no farm poundage quota was established for the immediately preceding year's crop. "(7)(A) The farm poundage quota, or any portion thereof, estabRegulations. lished for a farm for a marketing year may be voluntarily released to the Secretary to the extent that such quota, or any part thereof, will not be produced on the farm for the marketing year. Any farm poundage quota so released in a State shall be allocated to other farms in the State on such basis as the Secretary may by regulation prescribe. Prohibition. "(B) Any adjustment in the farm poundage quota for a farm under subparagraph (A) shall be effective only for the marketing year for which it is made and shall not be taken into consideration in establishing a farm poundage quota for the farm from which such quota was released for any subsequent marketing year. "(8)(A) Except as provided in subparagraph (B), the farm poundage, r - -5<« quota for a farm for any marketing year shall be increased by the ^ number of pounds by which the total marketings of quota peanuts from the farm during previous marketing years (excluding any marketing year before the marketing year for the 1984 crop) were less than the total amount of applicable farm poundage quotas

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 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1433

(disregarding adjustments for undermarketings from previous marketing years) for such marketing years. "(B) For purposes of subparagraph (A), no increase for undermarketings in previous marketing years shall be made to the poundage quota for any farm to the extent that the poundage quota for such farm for the marketing year was reduced under paragraph (3) for failure to produce. "(C) Any increases in farm poundage quotas under this paragraph shall not be counted against the national poundage quota for the marketing year involved. "(D) Any increase in the farm poundeige quota for a farm for a marketing year under this paragraph may be used during the marketing year by the transfer of additional peanuts produced on the farm to the quota loan pool for pricing purposes on such basis as the Secretary shall by regulation prescribe. "(9) Notwithstanding the foregoing provisions of this subsection, if the total of all increases in individual farm poundage quotas under paragraph (8) exceeds 10 percent of the national poundage quota for the marketing year in which such increases shall be applicable, the Secretary shall adjust such increases so that the total of all such increases does not exceed 10 percent of the national poundage quota. "(t)(1) For each farm for which a farm poundage quota is established under subsection (s), and when necessary for purposes of this Act, a farm yield of peanuts shall be determined for each such farm. "(2) Such yield shall be equal to the average of the actual yield per acre on the farm for each of the 3 crop years in which yields were highest on the farm out of the 5 crop years 1973 through 1977. '(3) If peanuts were not produced on the farm in at least 3 years during such 5-year period or there weis a substantial change in the operation of the farm during such period (including, but not limited to, a change in operator, lessee who is an operator, or irrigation practices), the Secretary shall have a yield appraised for the farm. The appraised yield shall be that amount determined to be fair and reasonable on the basis of yields established for similar farms that are located in the area of the farm and on which peanuts were produced, taking into consideration land, labor, and equipment available for the production of peanuts, crop rotation practices, soil and water, and other relevant factors. "(u)(1) Not later than December 15 of each calendar year, the Secretary shall conduct a referendum of producers engaged in the production of quota peanuts in the calendar year in which the referendum is held to determine whether such producers are in favor of or opposed to poundage quotas with respect to the crops of peanuts produced in the five calendar years immediately following the year in which the referendum is held, except that, if as many as two-thirds of the producers voting in any referendum vote in favor of poundage quotas, no referendum shall be held with respect to quotas for the second, third, fourth, and fifth years of the period. "(2) The Secretary shall proclaim the result of the referendum within 30 days after the date on which it is held. "(3) If more than one-third of the producers voting in the referendum vote against quotas, the Secretary also shall proclaim that poundage quotas will not be in effect with respect to the crop of peanuts produced in the calendar year immediately following the calendar year in which the referendum is held. "(v) For the purposes of this part and title I of the Agricultural Act of 1949:

Prohibition.

Prohibition, Regulations.

, _

Prohibition.

- ^.

7 USC 1421 note.

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


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Page:United States Statutes at Large Volume 99 Part 2.djvu/324

 99 STAT. 1434

PUBLIC LAW 99-198—DEC. 23, 1985 '-

7 USC 1359.

"(1) The term 'additional peanuts' means, for any marketing year— "(A) any peanuts that are marketed from a farm for which a farm poundage quota has been established and that are in excess of the marketings of quota peanuts from such farm for such year; and "(B) all peanuts marketed from a farm for which no farm • poundage quota has been established in accordance with subsection (s). "(2) The term 'crushing' means the processing of peanuts to extract oil for food uses and meal for feed uses, or the processing of peanuts by crushing or otherwise when authorized by the Secretary. "(3) The term 'domestic edible use' means use for milling to produce domestic food peanuts (other than those described in paragraph (2)) and seed and use on a farm, except that the Secretary may exempt from this definition seeds of peanuts that are used to produce peanuts excluded under section 359(c), are ' unique strains, and are not commercially available. "(4) The term 'quota peanuts' means, for any marketing year, any peanuts produced on a farm having a farm poundage quota, , as determined in subsection (s), that— ^ "(A) are eligible for domestic edible use as determined by J the Secretary; ''^' "(B) are marketed or considered marketed from a farm; ,;;; -^ and \,. i' "(C) do not exceed the farm poundage quota of such farm for such year.". -;

SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA

SEC. 703. Effective only for the 1986 through 1990 crops of peanuts, section 358a of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358a) is amended by adding at the end thereof the following: "(k)(1) Subject to such terms, conditions, or limitations as the Secretary may prescribe, the owner, or the operator with permission of the owner, of any farm for which a farm poundage quota has been established under this Act may sell or lease all or any part of such •r>iij4y-< poundage quota to any other owner or operator of a farm within the same county for transfer to such farm, except that any such lease of poundage quota may be entered into in the fsdl or after the normal planting season but only— "(A) if the quota has been planted on the farm from which the g?i' quota is to be leased; and Regulations. "(B) under such terms and conditions as the Secretary may by regulation prescribe. "(2) The owner or operator of a farm may transfer all or any part of the farm poundage quota for such farm to any other farm owned or controlled by such owner or operator that is in the same county or in a county contiguous to such county in the same State and that had a farm poundage quota for the preceding year's crop. "(3) Notwithstanding paragraphs (1) and (2), in the case of any State for which the poundage quota allocated to the State wgus less than 10,000 tons for the preceding year's crop, all or any part of a farm poundage quota may be transferred by sale or lease or otherwise from a farm in one county to a farm in another county in the >; '!tj same State.

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Page:United States Statutes at Large Volume 99 Part 2.djvu/325

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1435

"(1) Transfers (including transfer by sale or lease) of farm pound- Prohibitions. age quotas under this section shall be subject to all of the following conditions: "(1) No transfer of the farm poundage quota from a farm subject to a mortgage or other lien shall be permitted unless the transfer is agreed to by the lienholders. "(2) No transfer of the farm poundage quota shall be permitted if the county committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act determines 16 USC 590h. that the receiving farm does not have adequate tillable cropland to produce the farm poundage quota. "(3) No transfer of the farm poundage quota shall be effective until a record thereof is filed with the county committee of the county to which such transfer is made and such committee determines that the transfer complies with this section. "(4) Such other terms and conditions that the Secretary may Regulations. by regulation prescribe.". MARKETING PENALTIES; DISPOSITION OF ADDITIONAL PEANUTS

SEC. 704. Effective only for the 1986 through 1990 crops of peanuts, section 359 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359) is amended by adding at the end thereof the following: "(m)(l)(A) The marketing of any peanuts for domestic edible use in excess of the farm poundage quota for the farm on which such peanuts are produced shall be subject to penalty at a rate equal to 140 percent of the support price for quota peanuts for the marketing year in which such marketing occurs. "(B) For purposes of this section, the marketing year for peanuts shall be the 12-month period beginning August 1 and ending July 31. "(C) The marketing of any additional peanuts from a farm shall be subject to the same penalty unless such peanuts, in accordance with regulations established by the Secretary, are— "(i) placed under loan at the additional loan rate in effect for such peanuts under section 108B of the Agricultural Act of 1949 and not redeemed by the producers; "(ii) marketed through an area marketing association designated pursuant to section 108B(3)(A) of the Agricultural Act of 1949; or "(iii) marketed under contracts between handlers and producers pursuant to subsection (q). "(2) Such penalty shall be paid by the person who buys or otherwise acquires the peanuts from the producer or, if the peanuts are marketed by the producer through an agent, the penalty shall be paid by such agent. Such person or agent may deduct an amount equivalent to the penalty from the price paid to the producer. "(3) If the person required to collect the penalty fails to collect such penalty, such person and all persons entitled to share in the peanuts marketed from the farm or the proceeds thereof shall be jointly and severally liable for the amount of the penalty. "(4) Peanuts produced in a calendar year in which farm poundage quotas are in effect for the marketing year beginning therein shall be subject to such quotas even though the peanuts are marketed prior to the date on which such marketing year begins. "(5) If any producer falsely identifies or fails to certify planted acres or fails to account for the disposition of any peanuts produced

Regulations.

Post, p. 1439.

Contracts.

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Page:United States Statutes at Large Volume 99 Part 2.djvu/326

 99 STAT. 1436 Ante, p. 1430.

Regulations. 16 USC 590h.

Prohibition.

Prohibition.

Post, p. 1439. Prohibition. Regulations.

Regulations.

PUBLIC LAW 99-198—DEC. 23, 1985

on such planted acres, an Eimount of peanuts equal to the farm's average yield, as determined under section 358(t), times the planted acres, shall be deemed to have been marketed in violation of permissible uses of quota and additional peanuts. Any penalty payable under this paragraph shall be paid and remitted by the producer. "(6) The Secretary shall authorize, under such regulations as the Secretary shall issue, the county committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act to waive or reduce marketing penalties provided for under this subsection in cases in which such committees determine that the violations that were the basis of the penedties were unintentional or without knowledge on the part of the parties concerned. "(7) Errors in weight that do not exceed one-tenth of 1 percent in the case of any one marketing document shall not be considered to be marketing violations except in cases of fraud or conspiracy. "(n)(l) Only quota peanuts may be retained for use as seed or for other uses on a farm. When so retained, quota peanuts shall be considered as marketings of quota peanuts, except that the Secretary may exempt from consideration as marketings of quota peanuts seeds of peanuts that are used to produce peanuts excluded under subsection (c), are unique strains, and are not commercially available. "(2) Additional peanuts shall not be retained for use on a farm and shall not be marketed for domestic edible use, except as provided in subsection (r). "(3) Seed for planting of any peanut acreage in the United States shall be obtained solely from quota peanuts marketed or considered marketed for domestic edible use. "(o) On a finding by the Secretary that the peanuts marketed from any crop for domestic edible use by a handler are larger in quantity or higher in grade or quality than the peanuts that could reasonably be produced from the quantity of peanuts having the grade, kernel content, and quality of the quota peanuts acquired by such handler from such crop for such marketing, such handler shall be subject to a penalty equal to 140 percent of the loan level for quota peanuts on the quantity of peanuts that the Secretary determines are in excess of the quantity, grade, or quality of the peanuts that could reasonably have been produced from the peanuts so acquired. "(p)(1) Except as provided in paragraph (2), the Secretary shall require that the handling and disposal of additional peanuts be supervised by agents of the Secretary or by area marketing associations designated pursuant to section 108B(3)(A) of the Agricultural Act of 1949. "(2)(A) Supervision of the handling and disposal of additional peanuts by a handler shall not be required under paragraph (1) if the handler agrees in writing, prior to any handling or disposal of such peanuts, to comply with regulations that the Secretary shall issue. "(B) The regulations issued by the Secretary under subparagraph (A) shall include, but need not be limited to, the following provisions: "(i) Handlers of shelled or milled peanuts may export peanuts classified by type in all of the following quantities (less such I:;; reasonable allowance for shrinkage as the Secretary may >•,/: prescribe): --^nB i^; -.v^...:-•-:.•• ^^:;, - .. • .,,,.;:ri,.>^

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Page:United States Statutes at Large Volume 99 Part 2.djvu/327

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1437

"(I) Sound split kernel peanuts in an amount equal to twice the poundage of such peanuts purchased by the handler as additional peanuts. "(ID Sound mature kernel peanuts in an amount equal to the poundage of such peanuts purchased by the handler as additional peanuts less the amount of sound split kernel peanuts purchased by the handler as additional peanuts. "(Ill) The remaining quantity of total kernel content of peanuts purchased by the handler as additional peanuts and not crushed domestically. "(ii) Handlers shall ensure that any additional peanuts exported are evidenced by onboard bills of lading, other appropriate documentation as may be required by the Secretary, or both. "(iii) If a handler suffers a loss of peanuts as a result of fire, flood, or any other condition beyond the control of the handler, the portion of such loss allocated to contracted additional peanuts shall not be greater than the portion of the handler's total peanut purchases for the year attributable to contracted additional peanuts purchased for export by the handler during such year. "(3) A handler shall submit to the Secretary adequate financial guarantees, as well as evidence of adequate facilities and assets, to ensure the handler's compliance with the obligation to export peanuts. "(4) Quota and additional peanuts of like type and segregation or quality may, under regulations issued by the Secretary, be commingled and exchanged on a dollar value basis to facilitate warehousing, handling, and marketing. "(5)(A) Except as provided in subparagraph (B), the failure by a handler to comply with regulations issued by the Secretary governing the disposition and handling of additional peanuts shall subject the handler to a penalty at a rate equal to 140 percent of the loan level for quota peanuts on the quantity of peanuts involved in the violation. "(B) A handler shall not be subject to a penalty for failure to export additional peanuts if such peanuts were not delivered to the handler. "(6) If any additional peanuts exported by a handler are reentered into the United States in commercial quantities as determined by the Secretary, the importer thereof shall be subject to a penalty at a rate equal to 140 percent of the loan level for quota peanuts on the quantity of peanuts reentered. "(q)(l) Handlers may, under such regulations as the Secretary may issue, contract with producers for the purchase of additional peanuts for crushing, export, or both. "(2) Any such contract shall be completed and submitted to the Secretary (or if designated by the Secretary, the area marketing association) for approval before August 1 of the year in which the crop is produced. "(3) Each such contract shall contain the final price to be paid by the handler for the peanuts involved and a specific prohibition against the disposition of such peanuts for domestic edible or seed use. "(r)(1) Subject to section 407 of the Agricultural Act of 1949, any peanuts owned or controlled by the Commodity Credit Corporation may be made available for domestic edible use, in accordance with

.m

Regulations

Regulations

Prohibition.

Regulations. Contracts.

Contracts,

7 USC 1427. Regulations.

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 99 STAT. 1438

Post, p. 1439.

Prohibition.

Regulations. Prohibition.

Prohibition.

PUBLIC LAW 99-198—DEC. 23, 1985

regulations issued by the Secretary, so long as doing so does not result in substantially increased cost to the Commodity Credit Corporation. Additional peanuts received under loan shall be offered for sale for domestic edible use at prices not less than those required to cover all costs incurred with respect to such peanuts for such items as inspection, warehousing, shrinkage, and other expenses, plus— "(A) not less than 100 percent of the loan value of quota peanuts if the additional peanuts are sold and paid for during the harvest season on delivery by and with the written consent of the producer; "(B) not less than 105 percent of the loan value of quota peanuts if the additional peanuts are sold after delivery by the producer but not later than December 31 of the marketing year; or "(C) not less than 107 percent of the loan value of quota peanuts if the additional peanuts are sold later than December 31 of the marketing year. "(2)(A) Except as provided in subparagraph (B), for the period from the date additional peanuts are delivered for loan to March 1 of the calendar year following the year in which such additional peanuts were harvested, the area marketing association designated pursuant to section 108B(3)(A) of the Agricultural Act of 1949 shall have sole authority to accept or reject lot list bids when the sales price, as determined under this subsection, equals or exceeds the minimum price at which the Commodity Credit Corporation may sell its stocks of additional peanuts. "(B) The area marketing association and the Commodity Credit Corporation may agree to modify the authority granted by subparagraph (A) to facilitate the orderly marketing of additional peanuts. "(s)(l) The person liable for payment or collection of any penalty provided for in this section shall be liable also for interest thereon at a rate per annum equal to the rate per annum of interest that was charged the Commodity Credit Corporation by the Treasury of the United States on the date such penalty became due. "(2) This section shall not apply to peanuts produced on any farm on which the acreage harvested for nuts is one acre or less if the producers who share in the peanuts produced on such farm do not share in the peanuts produced on any other farm. "(3) Until the amount of the penalty provided by this section is paid, a lien on the crop of peanuts with respect to which such penalty is incurred, and on any subsequent crop of peanuts subject to farm poundage quotas in which the person liable for payment of the penalty has an interest, shall be in effect in favor of the United States. "(4)(A) Notwithstanding any other provision of law, the liability for and the amount of any penalty assessed under this section shall be determined in accordance with such procedures as the Secretary by regulation may prescribe. The facts constituting the basis for determining the liability for or amount of any penalty assessed under this section, when officially determined in conformity with the applicable regulations prescribed by the Secretary, shall be final and conclusive and shall not be reviewable by any other officer or agency of the Government. "(B) Nothing in this section shall be construed as prohibiting any court of competent jurisdiction from reviewing any determination made by the Secretary with respect to whether such determination was made in conformity with the applicable law and regulations.

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 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1439

"(C) All penalties imposed under this section shall for all purposes be considered civil penalties. "(5)(A) Notwithstanding any other provision of law and except as provided in subparagraph (B), the Secretary may reduce the amount of any penalty assessed against handlers under this section if the Secretary finds that the violation on which the penalty is based was minor or inadvertent, and that the reduction of the penalty will not impair the operation of the peanut program. "(B) The amount of any penalty imposed on a handler under this section that resulted from the failure to export contracted additional peanuts may not be reduced by the Secretary.".

Contracts. Prohibition.

PRICE SUPPORT PROGRAM

SEC. 705. Effective only for the 1986 through 1990 crops of peanuts, the Agricultural Act of 1949 is amended by adding after section 108A the following: " P R I C E S U P P O R T FOR 1986 THROUGH 1990 CROPS OF PEANUTS

'SEC. 108B. Notwithstanding any other provision of law: 7 USC 1445C-2. "(I)(A) The Secretary shall make price support available to producers through loans, purchases, and other operations on quota peanuts for each of the 1986 through 1990 crops. "(B)(i) The national average quota support rate for the 1986 crop of quota peanuts shall be equal to the national average support rate established for the 1985 crop of quota peanuts, adjusted by the Secretary by a percentage equal to the percentage of any increase in the prices paid by producers for commodities and services, interest, taxes, and wage rates during the period beginning with calendar year 1981 and ending with calendar year 1985, as determined by the Secretary. "(ii) The national average quota support rate for each of the Prohibition. 1987 through 1990 crops of quota peanuts shall be the nationed average quota support rate for the immediately preceding crop, adjusted to reflect any increase, during the calendar year immediately preceding the marketing year for the crop for which a level of support is being determined, in the national average cost of peanut production, excluding any change in the cost of land, except that in no event shall the national average quota support rate for any such crop exceed by more than 6 percent the national average quota support rate for the preceding crop. "(C) The levels of support so announced shall not be reduced Prohibition. by any deductions for inspection, handling, or storage. "(D) The Secretary may make adjustments for location of peanuts and such other factors as are authorized by section 403. 7 USC 1423. "(E) The Secretary shall announce the level of support for quota peanuts of each crop not later than February 15 preceding the marketing year for the crop for which the level of support is being determined. "(2)(A) The Secretary shall make price support available to producers through loans, purchases, or other operations on additional peanuts for each of the 1986 through 1990 crops at such levels as the Secretary finds appropriate, talking into consideration the demand for peanut oil and peanut meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markete, except that the

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 99 STAT. 1440

PUBLIC LAW 99-198—DEC. 23, 1985

Ante, p. 1435.

New Mexico. '

' ' '•

•' '

'

Secretary shall set the support rate on additional peanuts at a level estimated by the Secretary to ensure that there are no losses to the Commodity Credit Corporation on the sale or disposal of such peanuts. "(B) The Secretary shall announce the level of support for additional peanuts of each crop not later than February 15 preceding the marketing year for the crop for which the level of support is being determined. "(3)(A)(i) In carrying out paragraphs (1) and (2), the Secretary shall make warehouse storage loans available in each of the three producing areas (described in section 1446.60 of title 7 of the Code of Federal Regulations (January 1, 1985)) to a designated area marketing association of peanut producers that is selected and approved by the Secretary and that is operated primarily for the purpose of conducting such loan activities. The Secretary may not make warehouse storage loans available to any cooperative that is engaged in operations or activities concerning peanuts other than those operations and activities specified in this section and section 359 of the Agricultural Adjustment Act of 1938. "(ii) Such area marketing associations shall be used in administrative and supervisory activities relating to price support and marketing activities under this section and section 359 of the Agricultural Adjustment Act of 1938. "(iii) Loans made under this subparagraph shall include, in addition to the price support value of the peanuts, such costs as the area marketing association reasonably may incur in carrying out its responsibilities, operations, and activities under this section and section 359 of the Agricultural Adjustment Act of 1938. "(B)(i) The Secretary shall require that each area marketing association establish pools and maintain complete and accurate records by area and segregation for quota peanuts handled under loan and for additional peanuts placed under loan, except that separate pools shall be established for Valencia peanuts produced in New Mexico. Bright hull and dark hull Valencia peanuts shall be considered as separate types for the purpose of establishing such pools. "(ii) Net gains on peanuts in each pool, unless otherwise approved by the Secretary, shall be distributed only to producers who placed peanuts in the pool and shall be distributed in proportion to the value of the peanuts placed in the pool by each producer. Net gains for peanuts in each pool shall consist of the following: "(I) For quota peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in such pool plus an amount from the pool for additional peanuts, to the extent of the net gains from the sale for domestic food and related uses of additional peanuts in the pool for additional peanuts equal to any loss on disposition of all peanuts in the pool for quota peanuts. "(II) For additional peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool for additional peanuts less any amount allocated to offset any loss on the pool for quota peanuts as provided in subclause (I). "(4) Notwithstanding any other provision of this section:

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 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1441

"(A) Any distribution of net gains on additional peanuts shall be first reduced to the extent of any loss by the Commodity Credit Corporation on quota peanuts placed under loan. "(B)(i) The proceeds due any producer from any pool shall be reduced by the amount of any loss that is incurred with respect to peanuts transferred from an additional loan pool to a quota loan pool under section 358(s)(8) of the Agricultural Adjustment Act of 1938. "(ii) Losses in area quota pools, other than losses incurred as a result of transfers from additional loan pools to quota loan pools under section 358(s)(8) of the Agricultural Adjustment Act of 1938, shall be offset by any gains or profits from pools in other production areas (other than separate t3rpe pools established under paragraph (3)(B)(i) for Valencia peanuts produced in New Mexico) in such manner as the Secretary shall by regulation prescribe. "(5) Notwithstanding any other provision of law, no price support may be made available by the Secretary for any crop of peanuts with respect to which poundage quotas have been disapproved by producers, as provided for in section 358(u) of the Agricultural Adjustment Act of 1938.".

Ante, p. 1430. New Mexico. Regulations.

Prohibition.

REPORTS AND RECORDS

SEC. 706. Effective only for the 1986 through 1990 crops of peanuts, the first sentence of section 373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before "all brokers and dealers in peanuts" the following: "all producers engaged in the production of peanuts,". '

SUSPENSION OF CERTAIN PRICE SUPPORT PROVISIONS

SEC. 707. Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to the 1986 through 1990 crops of peanuts. TITLE VIII—SOYBEANS

Prohibition. 7 USC 1441 note.

SOYBEAN PRICE SUPPORT

SEC. 801. Effective only for the 1986 through 1990 crops of soybeans, section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is amended by— (1) inserting "soybeans," after "tung nuts," in the first sentence; and (2) adding at the end thereof the following new subsection: "(i)(l)(A) The Secretary shall support the price of soybeans through loans and purchases in each of the 1986 through 1990 marketing years as provided in this subsection. "(B) The support price for the 1986 and 1987 crops of soybeans shall be $5.02 per bushel. "(C) The support price for each of the 1988 through 1990 crops of soybeans shall be established at a level equal to 75 percent of the simple average price received by producers for soybeans in the preceding 5 marketing years, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period, except that the level of price

Prohibition.

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 STAT. 1442

Prohibition.

Loans.

Regulations.

Prohibition.

Prohibition.

Prohibitions.

PUBLIC LAW 99-198—DEC. 23, 1985

support may not be reduced by more than 5 percent in any year and in no event below $4.50 per bushel. "(2) If the Secretary determines that the level of loans or purchases computed for a marketing year under paragraph (1) would discourage the exportation of soybeans and cause excessive stocks of soybeans in the United States, the Secretary may reduce the level of loans and purchases for soybeans for the marketing year by the amount the Secretary determines necessary to meiintain domestic and export markets for soybean^, except that the level of loans and purchases may not be reduced by more than 5 percent in any year and in no event below $4.50 per bushel. Any reduction in the loan and purchase level for soybeans under this paragraph shall not be considered in determining the loan and purchase level for soybeans for subsequent years. "(3)(A) If the Secretary determines that such action will assist in maintaining the competitive relationship of soybeans in domestic and export markets after taking into consideration the cost of producing soybeans, supply and demand conditions, and world prices for soybeans, the Secretary may permit a producer to repay a loan made under this subsection for a crop at a level that is the lesser of— "(i) the loan level determined for such crop; or "(ii) the prevailing world market price for soybeans, as determined by the Secretary. "(B) If the Secretary makes the determination described in subparagraph (A), the Secretary shall prescribe by regulation— "(i) a formula to define the prevailing world market price for soybeans; and "(ii) a mechanism by which the Secretary shall periodically announce the prevailing world market price for soybeans. "(4) For purposes of this subsection, the soybean marketing year is the 12-month period beginning on September 1 and ending on August 31. "(5)(A) The Secretary shall make a preliminary announcement of the level of price support for soybeans for a marketing year not earlier than 30 days before the beginning of the marketing year. The announced level shall be based on the latest information and statistics available at the time of the announcement. "(B) The Secretary shall make a final announcement of such level as soon as complete information and statistics are available on prices for the 5 years preceding the beginning of the marketing year. Such final level of support may not be announced later than October 1 of the marketing year with respect to which the announcement is made. The final level of support may not be less than the level of support provided for in the preliminary announcement. "(6) Notwithstanding any other provision of law— "(A) the Secretary shall not require participation in any production adjustment program for soybeans or any other commodity as a condition of eligibility for price support for soybeans; "(B) the Secretary shall not permit the planting of soybeans for harvest on reduced acreage or acreage set aside or diverted from production under any other Federal Government program; "(C) the Secretary may not authorize payments to producers to cover the cost of storing soybeans; and

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 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1443

"(D) soybeans may not be considered an eligible commodity for any reserve program.". TITLE DC—SUGAR SUGAR PRICE SUPPORT

SEC. 901. Effective only for the 1986 through 1990 crops of sugar beets and sugarcane, section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) (as amended by section 801 of this Act) is further amended by— (1) striking out "honey, and milk" in the first sentence and inserting in lieu thereof "honey, milk, sugar beets, and sugarcane"; and (2) adding at the end thereof the following new subsection: "(j)(1) The price of each of the 1986 through 1990 crops of sugar beets and sugarcane, respectively, shall be supported in accordance with this subsection. "(2) The Secretary shall support the price of domestically grown sugarcane through nonrecourse loans at such level as the Secretary determines appropriate but not less than 18 cents per pound for raw cane sugar, except that such level may be increased under paragraph (4). "(3) The Secretary shall support the price of domestically grown sugar beets through nonrecourse loans at such level as the Secretary determines is fair and reasonable in relation to the loan level for sugarcane. "(4)(A) The Secretary may increase the support price for each of the 1986 through 1990 crops of domestically grown sugarcane and sugar beets from the price determined for the preceding crop based on such factors as the Secretary determines appropriate, including changes (during the 2 crop years immediately preceding the crop year for which the determination is made) in the cost of sugar products, the cost of domestic sugar production, and other circumstances that may adversely affect domestic sugar production. "(B) If the Secretary makes a determination not to increase the support price under subparagraph (A), the Secretary shall submit a report containing the findings, decision, and supporting data for such determination to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. "(5) The Secretary shall announce the loan rate to be applicable during any fiscal year under this subsection as far in advance of the beginning of that fiscal year as is practicable consistent with the purposes of this subsection. "(6) Loans under this subsection during any fiscal year shall be made available not earlier than the beginning of such fiscal year and shall mature before the end of such fiscal year.".

Honey. Milk.

Loans,

Loans.

Loans.

Loans.

PREVENTION OF SUGAR LOAN FORFEITURES

SEC. 902. (a) Beginning with the quota year for sugar imports which begins after the 1985/1986 quota year, the President shall use all authorities available to the President as is necessary to enable the Secretary of Agriculture to operate the sugar program established under section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) at no cost to the Federal (jovernment by preventing the

7 USC 1446 note.

Ante, pp. 1362, 1441; supra.

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PUBLIC LAW 99-198—DEC. 23, 1985

accumulation of sugar acquired by the Commodity Credit Corporation. (b) Effective only for the 1985/1986 quota year for sugar imports, President of U.S. the President shall— (1) modify the 1985/1986 quota year for imports for sugar so that such quota year will end no earlier than December 31, 1986, and rearrange the shipping schedules so that shipments are divided equally throughout the quota year, as extended; or (2) require that the sugar program be administered in such a manner as will result in the forfeiture of sugar held by the Commodity Credit Corporation as collateral for price support loans in a quantity no greater than the total quantity (determined by the Secretary of Agriculture) that would have been forfeited to the Commodity Credit Corporation had the 1985/ 1986 quota year been modified as prescribed in clause (1). Prohibition. (c) Beginning with the quota year for sugar imports which begins Cuba. after the 1985/1986 quota year, the President shall not allocate any of the sugar import quota under such provisions to any country that is a net importer of sugar derived from sugarcane or sugar beets unless the appropriate officials of that country verify to the President that that country does not import for reexport to the United States any sugar produced in Cuba. i «f

PROTECTION OF SUGAR PRODUCERS

SEC. 903. (a) Section 401(e) of the Agricultural Act of 1949 (7 U.S.C. 1421(e)) is amended by— (1) inserting "(1)" after the subsection designation; and '' (2) adding at the end thereof the following new paragraph: Contracts. "(2)(A) If the assurances under paragraph (1) are not adequate to cause the producers of sugar beets and sugarcane, because of the bankruptcy or other insolvency of the processor, to receive maximum benefits from the price support program within 30 days after the final settlement date provided for in the contract between such producers and processor, the Secretary, on demand made by such producers and on such assurances as to nonpayment as the Secretary shall require, shall pay such producers such maximum benefits less benefits previously received by such producers. "(B) On such payment, the Secretary shall— "(i) be subrogated to all claims of such producers against the processor and other persons responsible for nonpayment; and "(ii) have authority to pursue such claims as necessary to recover the benefits not paid to the producers. "(C) The Secretary shall carry out this paragraph through the Commodity Credit Corporation.". 7 USC 1421 note. (b) The amendments made by this section shall apply to nonpayments occurring after January 1, 1985. TITLE X—GENERAL COMMODITY PROVISIONS ^I'^n

SUBTITLE A—MISCELLANEOUS COMMODITY PROVISIONS '-:}

smc: PAYMENT LIMITATIONS

Prohibitions. 7 USC 1308.

SEC. 1001. Notwithstanding any other provision of law: (1) For each of the 1986 through 1990 crops, the total amount of payments (excluding disaster pa3mients) that a person shall be

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99 STAT. 1445

entitled to receive under one or more of the annual programs established under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) for wheat, feed grains, upland cotton, extra long staple cotton, and rice may not exceed $50,000. (2) For each of the 1986 through 1990 crops, the total amount of disaster payments that a person shall be entitled to receive under one or more of the annual programs established under the Agricultural Act of 1949 for wheat, feed grains, upland cotton, and rice may not exceed $100,000. (3) As used in this section, the term "payments" does not include— (A) loans or purchases; (B) any part of any payment that is determined by the Secretary of Agriculture to represent compensation for resource adjustment (excluding land diversion payments) or public access for recreation; 7 >• (C) any gain realized by a producer from repaying a loan for a crop of wheat, feed grains, upland cotton, or rice at the rate permitted under section 107D(a)(5), 105C(a)(4), 103A(a)(5), or 101A(a)(5), respectively, of the Agricultural Act of 1949; (D) any deficiency payment received for a crop of wheat or feed grains under section lOTJXcXD or 105C(c)(l), respectively, of ' such Act as the result of a reduction of the loan level for such crop under section 107D(a)(4) or 105C(a)(3) of such Act; (E) any loan deficiency payment received for a crop of wheat, feed grains, upland cotton, or rice under section 107IXb), 105C(b), 103A(b), or 101A(b), respectively, of such Act; (F) any inventory reduction payment received for a crop of wheat, feed grains, upland cotton, or rice under section 107D(g), ,i 105C(g), 103A(g), or 101 A(g), respectively, of such Act; (G) any increased established price payments under section 105C(c)(l)(E) or 107D(c)(l)(E), respectively, of such Act; or (H) any benefit received as a result of any cost reduction action by the Secretary under section 1009 of this Act. (4) If the Secretary determines that the total amount of payments that will be earned by any person under the program in effect for any crop will be reduced under this section, any acreage requirement established under a set-aside or acreage limitation program for the farm or farms on which such person will be sharing in payments earned under such program shall be adjusted to such extent and in such memner as the Secretary determines will be fair and reasonable in relation to the amount of the payment reduction. (5)(A) The Secretary shall issue regulations— (i) defining the term "person"; and (ii) prescribing such rules as the Secretary determines necessary to assure a fair and reasonable application of the limitation established under this section. (B) The regulations issued by the Secretary on December 18, 1970, under section 101 of the Agricultural Act of 1970 (7 U.S.C. 1307) shall be used to establish the percentage ownership of a corporation by the stockholders of such corporation for the purpose of determining whether such corporation and stockholders are separate persons under this section, (6) The provisions of this section that 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

Ante, pp. 1383, 1395, 1407, 1419.

Regulations.

Regulations.

Prohibition.

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PUBLIC LAW 99-198—DEC. 23, 1985

primarily in the direct furtherance of a public function, as determined by the Secretary. ADVANCE DEFICIENCY AND DIVERSION PAYMENTS

SEC. 1002. Effective only for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, section 107C of the Agricultural Act of 1949 (7 U.S.C. 1445b-2) is amended to read as follows: "SEC. 107C. (a)(l) If the Secretary establishes an acreage limitation or set-aside program for any of the 1986 through 1990 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that deficiency payments will likely be made for such commodity for such crop, the Secretary— "(A) shall make advance deficiency payments available to producres who agree to participate in such program for the 1986 crop; and "(B) may make such pa3nnents available to such producers for each of the 1987 through 1990 crops. . " "(2) Advance deficiency payments under paragraph (1) shall be « made to the producer under the following terms and conditions: "•' "(A) Such payments may be made available in the form of— "(i) cash; "(ii) commodities owned by the Commodity Credit Corporation and negotiable certificates redeemable in a commodity owned by the Commodity Credit Corporation, except that not more than 50 percent of such payments may be made in commodities or such certificates in the case of any producer; or "(iii) any combination of clauses (i) and (ii). "(B) If pa3mients are made available to producers as provided A- for under subparagraph (A)(ii), such producers may elect to receive such payments either in the form of— ?7f "(i) such commodities; or "(ii) such certificates. ' -^ • & "(C) Such a certificate shall be redeemable for a period not to ' exceed 3 years from the date such certificate is issued. "(D) 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 redeemed. Contracts. "(E) Such payments shall be made available as soon as prac' ticable after the producer enters into a contract with the Secretary to participate in such program. -' "(F) Such payments shall be made available in such amounts as the Secretary determines appropriate to encourage adequate participation in such program, except that such amount may not exceed an amount determined by multiplying— "(i) the estimated farm program acreage for the crop, by ' "(ii) the farm program payment yield for the crop, by '' ' "(iii) 50 percent of the projected payment rate, as determined by the Secretary. f "(G) If the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under this Act, is less than the amount paid to the producer as an advance " ' deficiency payment for the crop under this subsection, the producer shall refund an amount equal to the difference between the amount advanced and the amount finalUy deter-

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 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1447

mined by the Secretary to be payable to the producer as a deficiency payment for the crop concerned. "(H) If the Secretary determines under this Act that deficiency payments will not be made available to producers on a crop with respect to which advance deficiency payments already have been made under this subsection, the producers who received such advance pa3nnents shall refund such payments. "(I) Any refund required under subparagraph (G) or (H) shall be due at the end of the marketing year for the crop with respect to which such payments were made. (J) If a producer fails to comply with requirements estab- Regulations, lished under the acreage limitations or set-aside program involved after obtaining an advance deficiency payment under this subsection, the producer shall repay immediately the ) amount of the advance, plus interest thereon in such amount as the Secretary shall prescribe by regulation. "(3) The Secretary may issue such regulations as the Secretary Regulations. determines necessary to carry out this section. "(4) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. "(5) The authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary or the Commodity Credit Corporation under any other provisions of law. "(b) If the Secretary makes land diversion payments under this Act to assist in adjusting the total national acreage of any of the 1986 through 1990 crops of wheat, feed grains, upland cotton, or rice to desirable levels, the Secretary may make at least 50 percent of such payments available to a producer as soon as possible after the producer agrees to undertake the diversion of land in return for -such payments.". ADVANCE RECOURSE COMMODITY LOANS

SEC. 1003. Effective for the 1986 through 1990 crops, the Agricultural Act of 1949 is amended by inserting after section 423 (7 U.S.C 1433b) the following new section: "SEC. 424. Notwithstanding any other provision of this Act, the 7 USC 1433c. Secretary may make advance recourse loans available to producers of the commodities of the 1986 through 1990 crops for which nonrecourse loans are made available under this Act if the Secretary finds that such action is necessary to ensure that adequate operating credit is available to producers. Such recourse loans may be made available under such reasonable terms and conditions as the Secretary may prescribe, except that the Secretary shall require that a producer obtain crop insurance for the crop as a condition of '-ocu~eligibility for a loan.". INTEREST PAYMENT CERTIFICATES

SEC. 1004. Effective only for the 1986 through 1990 crops, section 405 of the Agricultural Act of 1949 (7 U.S.C. 1425) is amended by— (1) inserting "(a)" after the section designation; and (2) adding at the end thereof the following new subsection: "(b)(l) Notwithstanding any other provision of law, the Secretary may provide a negotiable certificate to any producer who repays, together with interest, a price support loan made available to such producer under any of the annual programs, for wheat, feed grains, upland cotton, or rice established under this Act.

Loans.

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 99 STAT. 1448 Loans.

PUBLIC LAW 99-198—DEC. 23, 1985

"(2) The amount of such certificates shall be equal to the amount of the interest paid by the producer on such loan. "(3) Such certificate shall be redeemable in wheat, feed grains, upland cotton, or rice, as the case may be, owned by the Commodity Credit Corporation. "(4) The issuance of such certificate shall be subject to the availability of commodities owned by the Corporation.". ^

7 USC 1445b-4. Loans.

7 USC 1445e.

Regulations.

-VI,

>.u

.,

PAYMENTS IN COMMODITIES

SEC. 1005. The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is amended by inserting after section 107D (as added by section 308 of this Act) the following new section: "SEC. 107E. (a) In making in-kind payments under any of the annual programs for wheat, feed grains, upland cotton, or rice (other than negotiable marketing certificates for upland cotton or rice), the Secretary may— "(1) acquire and use like commodities that have been pledged to the Commodity Credit Corporation as security for price support loans, including loans made to producers under section 110; and "(2) use other like commodities owned by the Commodity Credit Corporation. "(b) The Secretary may make in-kind payments— "(1) by delivery of the commodity to the producer at a warehouse or other similar facility, as determined by the Secretary; "(2) by the transfer of negotiable warehouse receipts; "(3) by the issuance of negotiable certificates which the Commodity Credit Corporation shall redeem for a commodity in accordance with regulations prescribed by the Secretary; or "(4) by such other methods as the Secretary determines appropriate to enable the producer to receive payments in an efficient, equitable, and expeditious manner so as to ensure that the producer receives the same total return as if the pa5anents had been made in cash.". c...-,, WHEAT AND FEED GRAIN EXPORT CERTIFICATE PROGRAMS

7 USC 1445b-5.

Loans. Ante, pp. 1383, 1395.

SEC. 1006. Effective for the 1986 through 1990 crops of wheat and feed grains, the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is amended by inserting after section 107F (as added by section 1005 of this Act), the following new section: "SEC. 107F. (a)(l) The Secretary may establish a program, applicable to any of the 1986 through 1990 crops of wheat or feed grains, to provide incentives for the export of any of such crops of wheat and feed grains from private stocks. The program for any such crop established under this subsection by the Secretary shall include the following terms: "(A) The Secretary shall issue wheat or feed grain export certificates to producers to whom the Secretary makes loans and payments under section 107D or 105C, respectively, for a crop if such producers comply with the terms and conditions of the program for such crop. "(B) Each such certificate shall bear a monetary denomination and a designation specifying a quantity of the crop of the commodity involved, selected by the Secretary. . ^.u

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99 STAT. 1449

"(C) The aggregate quantity of wheat or feed grains specified in all export certificates distributable to eligible producers of the crop involved shall be equal to— "(i) the aggregate amount of wheat or feed grains proif f duced by producers participating in the program for the crop under section 107D or 105C, as determined by multiplying the acreage planted by each such producer for harvest times the farm program payment)deld for the commodity, times "(ii) an export production factor. For purposes of this subparagraph, the export production factor for a crop shall be determined by the Secretary by dividing the quantity of such crop harvested domestically that the Secretary estimates will not be used domestically and will be available for export (excluding the portion of the crop expected to be added to carryover stocks) during the marketing year for such crop by the quantity of such crop that the Secretary estimates will be harvested domestically. "(D) Wheat or feed grain export certificates shall be distributed among eligible producers in a manner that will ensure that each eligible producer receives certificates having an aggregate face value that represents an equal rate of return per unit of wheat or feed grains produced by such producer for such crop. For purposes of determining such rate of return, the Secretary shall take into consideration regional variations in the costs incurred by producers to market the commodity (including transportation costs). "(E) An export certificate issued under this subsection shall be redeemed by the Secretary for a cash amount equal to the monetary denomination on such certificate (or, at the option of the Secretary, a quantity of the commodity involved having a current fair market value equal to such amount) only on presentation by a holder who exports a quantity of the crop involved (including processed wheat or feed grains) equal to the quantity designated in the certificate and only if the Secretary has not redeemed previously an export certificate issued under this subsection presented in connection with the particular wheat or feed grains so exported. "(2) The Secretary shall carry out this subsection through the Commodity Credit Corporation. If sufficient funds are available to the Corporation, there shall be expended to carry out this subsection with respect to the export of the crop of wheat or feed grains involved an amount not less than the product of multiplying— "(A) 21 cents for wheat, 11 cents for corn, and such amounts for grain sorghums, oats, and, if designated by the Secretary, barley as the Secretary determines fair and reasonable in relation to the amount specified for corn, times "(B) the aggregate of the wheat or feed grain acreage planted to the commodity for harvest by producers participating in the program for the crop with respect to which deficiency pa3niients are available under section 107D or 105C, times "(C) the average of the program yields for the crop. "(3) Funds expended to carry out export certificate programs established under this subsection shall be in addition to, and not in place of, funds authorized by any other law to be expended to finance or encourage the export of wheat or feed gredns.

Ante, pp. 1383, i^^^

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 99 STAT. 1450

M.

)f r <

PUBLIC LAW 99-198—DEC. 23, 1985

"(4) For purposes of facilitating the transfer of export certificates under this subsection, the Commodity Credit Corporation may buy and sell certificates in accordance with regulations prescribed by the S©crGtfl.rv "(b)(1) Effective for each of the 1986 through 1990 crops of wheat or feed grains, the Secretary may issue to eligible producers (who, for purposes of this subsection, are producers of wheat or feed grains participating in the program under this Act for such crop who meet the requirements of paragraph (2)) export marketing certificates, denominated in bushels of wheat or feed grains, as applicable, for the crop, which shall be used, under such terms and conditions as the Secretary may prescribe consistent with the provisions of this subsection, as follows: "(A) Not later than 3 months before the beginning of the fi marketing year for a crop of wheat or feed grains, the Secretary I may issue to eligible producers that plant at least 50 percent of ,^ the farm's wheat or feed grain crop acreage base for such crop, export marketing certificates to be applicable to such marketing year that, in the aggregate, shall equal the quantity of the t commodity the Secretary estimates will be exported during the marketing year. Each such eligible producer shall receive certificates for a quantity of the commodity that bears the same " ratio to the quantity of estimated exports as the producer's crop acreage base for that crop of the commodity bears to the aggregate total of all such eligible producers' crop acreage bases ~ "(B) The denomination of export marketing certificates shall t. be 1 bushel (with no accompanying cash face value), except that the Secretary may issue certificates in multiples of such I denomination, and any certificate in the multiple of such denomination, may be exchanged by the producer, at the county Agricultural Stabilization and Conservation Service office, for certificates representing an equivalent quantity of the commodity in different multiples, to facilitate the operation of the program under this subsection. Each export marketing certificate shall designate the producer by name and the crop involved. "(C) If 7 months after the beginning of the marketing year for the crop, the Secretary determines that the amount of the ^ commodity that will be exported during the marketing year for that crop will exceed the aggregate quantity of the commodity '' represented by all the export marketing certificates so issued, ^ the Secretary may issue additional export marketing certificates to producers that initially received certificates for the crop apportioned among such producers so that producer receives the same portion of the additional certificates issued that the producer received of the export certificates initially issued for the crop, as provided in subparagraph (A), rounded upward to the -' nearest full bushel. "(D) Producers may convey export marketing certificates issued under this subsection to purchasers of the commodity involved sold by the producers at any time prior to the end of s the marketing year for the crop described in the certificate. If a ^ producer has less wheat or feed grains to sell than the quantity represented by the export marketing certificates issued to the producer, because of reduced production or other reason or
 * for that crop, rounded upward to the nearest full bushel.
 * sufficient to cover the additional exports, such certificates to be
 * sufficient to cover the additional exports, such certificates to be

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Page:Dictionary of National Biography volume 44.djvu/21

 conduct a colony of German and Dutch Mennonites and quakers to Pennsylvania. He arrived on 20 June 1683, settled upon the company's tract between the Schuylkill and the Delaware rivers, and on 24 Oct. began to lay out Germantown. Soon after his arrival he united himself with the Society of Quakers, and became one of its most able and devoted members, as well as the recognised head and law-giver of the settlement. In 1687 he was elected a member of the assembly. In 1688 he drew up a memorial against slave-holding, which was adopted by the Germantown quakers and sent up to the monthly meeting, and thence to the yearly meeting at Philadelphia. It is noteworthy as the first protest made by a religious body against negro slavery, and is the subject of John Greenleaf Whittier's poem, ‘The Pennsylvania Pilgrim.’ The original document was discovered in 1844 by Nathan Kite, and was published in the ‘Friend’ (vol. xviii. No. 16). Pastorius was elected the first bailiff of the town in 1691, and served the office again in 1692, afterwards acting frequently as clerk. For many years he carried on a school in Germantown, which he temporarily removed to Philadelphia between 1698 and 1700, and wrote deeds and letters required by the more uneducated of his countrymen. He died in Germantown between 26 Dec. 1719 and 13 Jan. 1720, the dates respectively of the making and proving of his will. On 26 Nov. 1686 he married Anneke, daughter of Dr. Johann Klosterman of Mühlheim, by whom he had two sons, John Samuel (b. 1690) and Henry (b. 1692). He was on intimate terms with William Penn, Thomas Lloyd, Chief-justice Logan, Thomas Story, and other leading men in the province belonging to his own religious society, as well as with Kelpius, the learned mystic of the Wissahickon, with the pastor of the Swedes church, and the leaders of the Mennonites.

His ‘Lives of the Saints,’ &c., written in German and dedicated to Professor Schurmberg, his old teacher, was published in 1690. He also published a pamphlet, consisting in part of letters to his father, and containing a description of Pennsylvania and its government, and advice to emigrants, entitled, ‘Umständige geographische Beschreibung der zu allerletzt erfundenen Provintz Pennsylvaniæ,’ 8vo, Frankfort and Leipzig, 1700, a further portion of which was included in the quaker Gabriel Thomas's ‘Continuatio der Beschreibung der Landschafft Pennsylvaniæ,’ 8vo, Frankfort and Leipzig, 1702. Some of his poetry, which is chiefly devoted to the pleasures of gardening, the description of flowers, and the care of bees, appeared in 1710, under the title of ‘Deliciæ hortenses: eine Sammlung deutscher epigrammatischer Gedichte.’

Others of his works are: 1. ‘De Rasura Documentorum,’ Nuremberg, 1676, 4to, being his inaugural dissertation for his degree. 2. A primer, printed in Pennsylvania previously to 1697. 3. ‘Treatise on four Subjects of Ecclesiastical History, viz., the Lives of the Saints, the Statutes of the Pontiffs, the Decisions of the Councils of the Church, the Bishops and Patriarchs of Constantinople,’ written in German and printed in Germany, and dedicated by Pastorius to his old schoolmaster at Windsheim, Tobias Schumberg, 1690.

Pastorius left forty-three volumes of manuscripts. Few of these compilations have escaped destruction; the most curious of all, however, the huge folio entitled ‘Francis Daniel Pastorius, his Hive, Bee-stock, Melliotrophium Alucar or Rusca Apium,’ was in 1872 in the possession of Washington Pastorius of Germantown. It is a medley of knowledge and fancy, history, philosophy, and poetry, written in seven languages. His Latin prologue to the Germantown book of records (1688) has been translated by Whittier as an ode beginning ‘Hail to Posterity,’ which is prefixed to the ‘Pennsylvania Pilgrim.’

[Penn Monthly for 1871 and for January and February 1872; Whittier's Writings (London, 1888–9), i. 316–45, 434–5; Der deutsche Pionier (Cincinnati) for 1871; Allgemeine deutsche Biographie, xxv. 219; Appleton's Cyclop. of Amer. Biogr.]

PATCH, RICHARD (1770?–1806), criminal, born about 1770 at Heavitree, near Exeter, Devonshire, was the eldest son of a small farmer who for some daring acts of smuggling was imprisoned in Exeter gaol, where he afterwards became turnkey. Richard Patch was apprenticed to a butcher, and was liberally supplied with money by his father. On his father's death he inherited a small freehold estate of about 50l. a year, which he farmed, renting at the same time a small farm in the neighbourhood of Heavitree. In this occupation he was engaged for some years; but he was compelled to mortgage his estate, and in the spring of 1803 journeyed to London to avoid, according to his own account, an action for the non-payment of tithes. He was taken into the service of Isaac Blight, a ship-breaker living in the parish of St. Mary, Rotherhithe. In the summer of 1803 Blight, in order to protect himself against his creditors, appears to have executed an instrument con-


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99 STAT. 1451

because, in the case of additional certificates issued under subparagraph (C), the producer had disposed of the producer's < wheat or feed grains prior to the issuance of such additional certificates, the producer, at any time prior to the end of the marketing year for the crop involved, may sell the extra export marketing certificates to any person for such price as agreed on by the producer and purchaser. Any certificate may be reconveyed without restriction. "(2) To be eligible to receive export certificates under this subsection for a crop of wheat or feed grains, a producer of such commodity must participate in the program under this title for such crop, and— "(A) if there is no acreage limitation or set-aside in effect for the crop, limit the acreage on the farm planted to the crop for harvest to the farm's wheat or feed grain crop acreage base, as applicable; "(B) if an acreage limitation is in effect for the crop, limit the acreage on the farm planted to the crop for harvest to the farm's wheat or feed grain crop acreage base, as applicable, reduced to the extent required under the acreage limitation program, and comply with any other terms of the acreage limitation program established by the Secretary; or "(C) if a set-aside program is in effect for the crop, comply with the set-aside and other terms of the set-aside program established by the Secretary. "(3) Whenever the Secretary issues certificates under this subsec- Prohibitions. tion for a crop of wheat or feed grains, no person may export wheat or feed grains or products thereof, from the United States during the marketing year for the crop without surrendering to the Secretary, at the time of export, export marketing certificates for such crop representing the quantity of the commodity being exported or, in the case of wheat or feed grain products, the equivalent quantity of the commodity contained in the products being exported. Persons that fail to comply with the requirements of the preceding sentence shall be subject, for each violation thereof, to a fine of not more than $25,000 or imprisonment for not to exceed 1 year, or both such fine and imprisonment. This paragraph shall not apply to exports of commodities or products owned by the Federal Government or any agency or instrumentality thereof, nor to commodities or products provided to the exporter by the Commodity Credit Corporation under an export development program. "(4) Any person who falsely makes, issues, alters, forges, or counterfeits any export marketing certificate, or with fraudulent intent possesses, transfers, or uses any such falsely made, issued, altered, forged, or counterfeited export marketing certificate, shall be subject to a fine of not more than $10,000 or imprisonment of not more than 10 years, or both such fine and imprisonment. "(5) For purposes of facilitating the transfer of export certificates under this subsection, the Commodity Credit Corporation may buy and sell certificates in accordance with regulations prescribed by the Secretary.". COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS

SEC. 1007. Effective only for the marketing years for the 1986 through 1990 crops, section 407 of the Agricultural Act of 1949 (7 U.S.C. 1427) is amended by—

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 99 STAT. 1452 Prohibition. Loans.

Prohibition.

PUBLIC LAW 99-198—DEC. 23, 1985 (1) in the third sentence, striking out the langauge following the third colon and inserting in lieu thereof the following: "Provided, That, notwithstanding any other provision of law, the Corporation may not sell any of its stocks of wheat, corn, grain sorghum, barley, oats, and rye, respectively, at less than (A) 115 percent of the current national average loan rate for the commodity, adjusted for such current market differentials reflecting grade, quality, location, and other value factors as the Secretary determines appropriate plus reasonble carrying charges, or (B) if the Secretary permits the repayment of loans made for a crop of the commodity at a rate that is less than the loan level determined for such crop, 115 percent of the averge loan repayment rate that is determined for such crop during the period of such loans.''; (2) in the fifth sentence, striking out "current basic county support rate including the value of any applicable price-support payment in kind (or a comparable price if there is no current basic county support rate)' and inserting in lieu thereof the following: current basic county loan rate (or a comparable price if there is no current basic county loan rate)"; and (3) in the seventh sentence, striking out ", but in no event shall the purchase price exceed the then current support price for such commodities" and inserting in lieu thereof: "or unduly affecting market prices, but in no event shall the purchase price exceed the Corporation's minimum sales price for such commodities for unrestricted use"., DISASTER PAYMENTS FOR 1985 THROUGH 1990 CROPS OF PEANUTS,,, SOYBEANS, SUGAR BEETS, AND SUGARCANE

SEC. 1008. Effective only for the 1985 through 1990 crops of peanuts, soybeans, sugar beets, and sugarcane, section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) (as amended by section 901 of this Act) is further amended by adding at the end thereof the following new subsection: "(k)(1) If the Secetary determines that the producers on a farm are prevented from planting any portion of the acreage on the farm intended for peanuts, soybeans, sugar beets, or sugarcane to peanuts, soybeans, sugar beets, sugarcane, or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary may make a prevented planting disaster payment to the producers in an amount equal to the product obtained^y multiplying— "(A) the number of acres so affected but not to exceed the acreage planted to peanuts, soybeans, sugar beets, or sugarcane for harvest (including any acreage that the producers were prevented from planting to such commodity or to other nonconserving crops in lieu of peanuts, soybeans, sugar beets, or sugarcane because of drought, flood or other natural disaster, or other condition beyond the control of the producers) in the immediately preceding year, by "(B) 75 percent of the farm program payment yield established by the Secretary, by "(C) a payment rate equal to 50 percent of the loan and purchase level for the crop. "(2) If the Secretary determines that because of drought, flood, or other natural disaster, or other condition beyond the

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99 STAT. 1453

control of the producers, the total quantity of peanuts, soybeans, sugar beets, or sugarcane that the producers are able to harvest on any farm is less than the result of multiplying 60 percent of the farm program payment yield established by the Secretary for such crop by the acreage planted for harvest for such crop, the Secretary may make a reduced jdeld disaster payment to the producers at a rate equal to 50 percent of the loan and purchase level for the crop for the deficiency in production below 60 percent for the crop. "(3) The Secretary may make such adjustments in the amount of pa3niients made available under this paragraph with respect to an individual farm so as to assure the equitable allotment of such payments among producers, taking into account other forms of Federal disaster assistance provided to the producers for the crop involved.". COST REDUCTION OPTIONS

SEC. 1009. (a) Notwithstanding any other provision of law, i^henever the Secretary of Agriculture determines that an action authorized under subsection (c), (d), or (e) will reduce the total of the direct and indirect costs to the Federal Government of a commodity program administered by the Secretary without adversely affecting income to small- and medium-sized producers participating in such program, the Secretary shall take such action with respect to the commodity program involved. (b) In the announcement of the specific provisions of any commodity program administered by the Secretary of Agriculture, the Secretary shall include a statement setting forth which, if any, of the actions are to be initially included in the program, and a statement that the Secretary reserves the right to initiate at a later date any action not previously included but authorized by this section, including the right to reopen and change a contract entered into by a producer under the program if the producer voluntarily agrees to the change. (c) When a nonrecourse loan program is in effect for a crop of a commodity, the Secretary may enter the commercial market to purchsise such commodity if the Secretary determines that the cost of such purchases plus appropriate carrying charges will probably be less than the comparable cost of later acquiring the commodity through defaults on nonrecourse loans under the program. (d) When the domestic market price of a commodity for which a nonrecourse loan program is in effect is insufficient to cover the principal and accumulated interest on a loan made under such program, thereby encouraging default by a producer, the Secretary may provide for settlement of such loan and redemption by the producer of the commodity securing such loan for less than the total of the principal and all interest accumulated thereon if the Secretary determines that such reduction in the settlement price will yield savings to the Federal Government due to— (1) receipt by the Federal Government of a portion rather than none of the accumulated interest; (2) avoidance of default; or (3) elimination of storage, handling, and carrying charges on the forfeited commodity, but the Secretary may not reduce the settlement price to less than the principal due on the loan.

7 USC I308a.

« ts ^ f r '" r Contract.

Loans.

Loans.,

Prohibition.

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 99 STAT. 1454 Loan.

PUBLIC LAW 99-198—DEC. 23, 1985

(e) When a production control or loan program is in effect for a crop of a major agricultural commodity, the Secretary may at any time prior to harvest reopen the program to participating producers for the purpose of accepting bids from producers for the conversion of acreage planted to such crop to diverted acres in return for payment in kind from Commodity Credit Corporation surplus stocks of the commodity to which the acreage was planted, if the Secretary determines that (1) changes in domestic or world supply or demand conditions have substantially changed after announcement of the program for that crop, and (2) without action to further adjust production, the Federal Government and producers will be faced with a burdensome and costly surplus. Such payments in kind shall not be included within the payment limitation of $50,000 per person established under section 1001 of this Act, but shall be limited to a total $20,000 per year per producer for any one commodity. (f) The authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary under any other provision of law. MULTIYEAR SET-ASIDES

Contracts. 7 USC 1445i.

Contract.

Regulations.

SEC, 1010. Notwithstanding any other provision of law: (1) The Secretary of Agriculture may enter into multiyear setaside contracts for a period not to extend beyond the 1990 crops. Such contracts 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 section. Producers agreeing to a multiyear set-aside agreement shall be required to devote the set-aside acreage to vegetative cover capable of maintaining itself through such period to provide soil protection, water quality enhancement, 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 governing noxious weed control. (2) The Secretary shall provide cost-sharing incentives to farm operators for the establishment 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 program authorized by this section through the Commodity Credit Corporation. SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION AUTHORITY

SEC. 1011. Effective for the 1986 through 1990 crops of wheat and feed grains, section 113 of the Agricultural Act of 1949 (7 U.S.C. 1445h) is amended to read as follows: SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION AUTHORITY

"SEC. 113. Notwithstanding any other provision of law or prior announcement made by the Secretary to the contrary, the Secretary may announce and provide for a set-aside or acreage limitation

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99 STAT. 1455

program under section 105C or 107D for one or more of the 1986 through 1990 crops of wheat and feed grains if the Secretary determines that such action is in the public interest as a result of the imposition of restrictions on the export of any such commodity by the President or other member of the executive branch of the Federal Government. To carry out effectively a set-aside or acreage limitation program authorized under this section, the Secretary may make such modifications and adjustments in such program as the Secretary determines necessary because of any delay in instituting such program.".

Ante, pp. 1395, 1383.

PRODUCER RESERVE PROGRAM FOR WHEAT AND FEED GRAINS

SEC. 1012. (a) Except as provided by subsection (b), effective beginning with the 1986 crops, section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e) is amended by CD in the first sentence of subsection (a)— (A) striking out "and" after "supply" and inserting in lieu thereof a comma; and (B) inserting before the period at the end thereof the following: ", and provide for adequate, but not excessive, carryover stocks to ensure a reliable supply of the ": commodities"; (2) in the third sentence of subsection (b)— (A) in clause (1), striking out "nor more than five years" and inserting in lieu thereof ", with extensions as warrgmted by market conditions"; (B) in clause (4), striking out "before the market price for wheat or feed grains has reached" and inserting in lieu thereof "when the total amount of wheat or feed grains in storage under programs under this section is below the upper limits for such storage as set forth in clauses (A) and (B) of subsection (e)(2) and the market price for wheat or feed grains is below"; (C) in clause (5), striking out "a specified level, as determined by the Secretary" and inserting in lieu thereof "the higher of 140 percent of the nonrecourse loan rate for the commodity or the established price for such commodity, as determined under title I"; (3) adding at the end of subsection (b) the following: "Whenever— "(A)(i) the total quantity of wheat stored under storage programs established under this section is less than. 17 percent of the estimated total domestic and export usage of wheat during the then current marketing year for wheat, as determined by the Secretary; or "(ii) the total quantity of feed grains stored under storage programs established under this section is less than 7 percent of the estimated total domestic and export usage of feed grains during the then current marketing year for feed grains, as determined by the Secretary; and "(B) the market price of the commodity, as determined by the Secretary, does not exceed 140 percent of the nonrecourse loan rate for the commodity; the Secretary shall encourage participation in the programs authorized under this section by offering producers increased storage payments and loan levels, interest waivers, or such other incentives

Loans.

Loans.

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 STAT. 1456

Prohibition.

7 USC 1445e note.

PUBLIC LAW 99-198—DEC. 23, 1985

as the Secretary determines necessary to maintain the total amount of storage under the programs at the levels specified in clauses (A) and (B). The Secretary shall ensure that producers are afforded a fair and equitable opportunity to participate in each producer storage program, taking into account regional differences in the time of harvest."; and (4) in subsection (e)— (A) inserting "(1)" after the subsection designation; (B) inserting before the period at the end of the second sentence the following: ", subject to the upper limits on the total quantity of wheat and feed grains that may be stored under storage programs established under this section set out in paragraph (2)"; (C) striking out the third sentence; and iriK" ' (D) adding at the end thereof the following new paragraph: "(2) Prior to the harvest of each crop of wheat and feed grains, the Secretary shall determine and establish upper limits on the total quantity of wheat and feed grains that may be stored under storage programs established under this section to be effective during the marketing year for such crop, as follows: "(A) The upper limit on the total quantity of wheat that may be stored under such programs shall not exceed 30 percent of the estimated total domestic and export usage of wheat during the marketing year for the crop of wheat, as determined by the Secretary. "(B) The upper limit on the total quantity of feed grains that may be stored under such programs shall not exceed 15 percent of the estimated total domestic and export usage of feed grains during the marketing year for the crop, as determined by the Secretary. "(C) Notwithstanding clauses (A) and (B), the Secretary may establish the upper limits at higher levels—not in excess of 110 percent of the levels determined under clauses (A) and (B)—if the Secretary determines that the higher limits are necessary to achieve the purposes of this section.". (b) The amendment made by subsection (a)(2)(B) of this section shall take effect with respect to any loan made under section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e) the date for repayment of which occurs after the date of enactment of this Act. EXTENSION OF THE RESERVE
 * 1
 * ' -r

"SEC. 1013. Section 302(i) of the Food Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-l(i)) is amended by striking out "1985" both places it appears and inserting in lieu thereof "1990". NORMALLY PLANTED ACREAGE

Loans.

SEC. 1014. Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 1309) is amended by— (1) striking out "1985" each place it appears and inserting in lieu thereof ^'1990"; and (2) adding at the end thereof the following new subsection: "(c) Notwithstanding any other provision of law, whenever marketing quotas are in effect for any of the 1987 through 1990 crops of wheat, the Secretary of Agriculture may require, as a

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condition of eligibility for loans, purchases, and pa3mients on any ,,,, commodity under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), that the acreage normally planted to crops designated by the Secretary, adjusted as considered necessary by the Secretary to be fair and equitable among producers, shall be reduced by a quantity equal to— "(1) the acreage that the Secretary determines would normally be planted to wheat on a farm; minus "(2) the individual farm program acreage for the farm under section 107D(d)(3)(A) of such Act.". Ante, p. 1383. SPECIAL GRAZING AND HAY PROGRAM

SEC. 1015. (a) Section 109 of the Agricultural Act of 1949 (7 U.S.C. 1445d) is amended by striking out "1985" in the first sentence of subsection (a) and inserting in lieu thereof "1990". ADVANCE ANNOUNCEMENT OF PROGRAMS

SEC. 1016. Section 406 of the Agricultural Act of 1949 (7 U.S.C. 1426) is amended by (1) inserting "(a)" after the section designation; and (2) adding at the end thereof the following new subsection: "(b)(l) Notwithstanding any other provision of this Act, the Secretary of Agriculture may offer an option to producers of the 1987 through 1991 crops of wheat, feed grains, upland cotton and rice with respect to participation in commodity price support, production adjustment, and payment programs as provided in this subsection. '^'(2) With respect to the 1987 through 1991 crops of wheat, feed grains, upland cotton, and rice, in any county in the United States, if the Secretary has not made final announcement of the terms of the commodity price support production adjustment, and payment program for wheat, feed grains, upland cotton, or rice on or before the later of— "(A) 60 days prior to the normal planting date of such ^ commodity in such county, as determined by the Secretary; or J "(BXl) in the case of wheat, June 1 of the calendar year prior r, to the crop year for which such program is announced; "(ii) in the case of feed grains, ^ptember 30 of the calendar year prior to the crop year for which such program is announced; "(iii) in the case of upland cotton, November 1 of the calendar year prior to the crop year for which such program is announced; and "(iv) in the case of rice, January 31 of the calendar year that is the same as the crop year for which such program is announced, than the Secretary may permit producers of any such commodity in such county to elect to receive price support, payments, or other program benefits as provided in (I) the program announced for such commodity for the current crop year or (II) paragraph (3). "(3)(A)(i) The Secretary may permit producer eligible to make the election provided by this subsection to participate in the program described in this paragraph or, at the discretion of the Secretary, the program announced for the commodity for the current crop year, by compl3ring with the terms of the program announced for the preceding crop of the commodity.

ji jiu- ;

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 99 STAT. 1458 Loans.

Prohibition.

PUBLIC LAW 99-198—DEC. 23, 1985

"(B)(i) Except as provided in clause (ii), the Secretary may make available to producers of a commodity who exercise the election provided by this subsection and who comply fully with the terms and conditions of any acreage reduction program established for the preceding year's crop of the commodity— "(I) loans and purchsises at the level established for the crop for which the election is made; "(II) deficiency payments calculated on the same basis as the deficiency payments which were calculated for the crop immediately preceding the crop with respect to which the election is made; and "(III) payments equal to the difference between the level of loans and purchases for the crop with respect to which the election is made and the level of loans and purchases for the crop immediately preceding the crop with respect to which the election is made. Payments authorized by subclause (III) of the preceding sentence shall be made in the form of cash or in-kind commodities. "(ii) In the case of the 1991 crop, the Secretary shall make available to producers of a commodity who exercise the election provided by this section and who comply fully with the terms and conditions of any acreage reduction program established for the 1990 crop of the commodity— "(I) loans and purchases at the level established for the 1991 crop under legislation enacted subsequent to the date of the enactment of the Food Security Act of 1985, except that if legislation is enacted subsequent to the enactment of such Act which provides that loans and purcheises shall not be made with respect to the 1991 crop of a commodity, the Secretary may make available to producers of such commodity eligible for the election provided by this subsection loans and purchases at the level determined for the 1990 crop, or if legislation is not enacted subsequent to the enactment of such Act which provides that loans and purchases shall be made with respect to the 1991 crop of any such commodity, and if loans and purchases are available to producers of such commodity under laws pre. viously enacted, none of the provisions of this section shall , apply to the 1991 crop; "(II) deficiency payments calculated on the basis of the estab, lished price for the commodity determined for the 1990 crop; s and "(III) payments equal to the difference between the level of ' loans and purchases that the producer is eligible to receive under subclause (I) for such commodity for the 1991 crop and the level of loans and purchases determined for such commodity for the 1990 crop. Pajmtients authorized by subclause (III) of the preceding sentence shall be made in cash or in the form of in-kind commodities. "(C) The Secretary shall consider the crop acreage base and farm program payment yield for any farm with respect to which a producer exercises the election provided by this section to be equal to the crop acreage base and farm program payment yield that was established, or would have been established, for such farm for the year preceding the year for which the election is made.".

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 PUBLIC LAW 99-198—DEC. 23, 1985 .,;;

.

99 STAT. 1459

DETERMINATIONS OF THE SECRETARY

SEC. 1017. (a) The first sentence of section 385 of the Agricultural 7 USC 1385 note. Adjustment Act of 1938 (7 U.S.C. 1385) is amended by inserting "extra long staple cotton," after "upland cotton,". (b) The Secretary of Agriculture shall determine the rate of loans. Loans. payments, and purchases under a program established under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) for any of the 1986 through 1990 crops of a commodity without regard to the requirements for notice and public participation in rulemaking prescribed in section 553 of title 5, United States Code, or in any directive of the Secretary. APPLICATION OF TERMS IN THE AGRICULTURAL ACT OF 1949

SEC. 1018. Effective only for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, subsection (k) of section 408 of the Agricultural Act of 1949 (7 U.S.C. 1428(k)) is amended to read as follows: "(k)(1) Reference made m sections 402, 403, 406, 407, and 416 to Loans. 1422, the terms 'support price', 'level of support', and 'level of price 7 u s e1426, 1427, 1423, support' shall be considered to apply as well to the loan and 1431. purchase level for wheat, feed grains, upland cotton, and rice under this Act. "(2) References made to the terms 'price support', 'price support Loans operations', and 'price support program' in such sections and in section 401(a) shall be considered as applying as well to loan and 7 USC 1421. purchase operations for wheat, feed grains, upland cotton, and rice under this Act.". NORMAL SUPPLY

SEC. 1019. Notwithstanding any other provision of law, if the 7 USC I3i0a. Secretary of Agriculture determines that the supply of wheat, com, upland cotton, or rice for the marketing year for any of the 1986 through 1990 crops of such commodity is not likely to be excessive and that program measures to reduce or control the planted acreage of the crop are not necessary, such a decision shall constitute a determination that the total supply of the commodity does not exceed the normal supply and no determination to the contrary shall be made by the Secretary with respect to such commodity for such marketing year. MARKETING YEAR FOR CORN

SEC. 1020. Section 301(b)(7) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1301(b)(7)) is amended by striking out "Com, October 1-September 30;" and inserting in lieu thereof Corn, September 1August 31;". FEDERAL CROP INSURANCE CORPORATION EMERGENCY FUNDING AUTHORITY

SEC. 1021. Section 516(c)(l) of the Federal Crop Insurance Act (7 U.S.C. 1516(c)(l)) is amended by striking out the last sentence. CROP INSURANCE STUDY

SEC. 1022. (a) The Secretary of Agriculture shall conduct a study—

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 99 STAT. 1460

PUBLIC LAW 99-198—DEC. 23, 1985

(1) of the practice of offsetting the quantity of winter and spring wheat of a producer for the purpose of determining the amount of benefits due such producer under a policy insured under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and ' ^^ "'^ ' (2) of the feasibility and desirpbility of including winterkill of winter wheat as a loss covered by crop insurance under such Act. Report. (b) Not later than 180 days after the date of enactment of this Act, Regulations. the Secretary shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the results of the study conducted under subsection (a), together with any recommendations for any legislation or regulations necessary to rectify any inequities identified in such study. ,.,,, •

,st

NATIONAL AGRICULTURAL COST OF PRODUCTION STANDARDS REVIEW BOARD

- •' ^»r ^.

SEC. 1023. (a) Subsection (c) of section 1006 of the Agriculture and Food Act of 1981 (7 U.S.C. 4102(c)) is amended to read as follows: "(c) A person may serve as a member of the Board for one or more terms.". (b) Section 1014 of such Act (7 U.S.C. 4110) is amended by striking out "1985" and inserting in lieu thereof "1990".

,0

'>;*i

..

UQUID FUELS

SEC. 1024. Section 423(a) of the Agricultural Act of 1949 (7 U.S.C. 1433b) is amended by striking out all after "the Commodity Credit Corporation" and inserting in lieu thereof the following: "the Corporation may, under terms and conditions established by the Secretary, make its accumulated stocks of agricultural commodities available, at no cost or reduced cost, to encourage the purchase of such commodities for the production of liquid fuels and agricultural commodity byproducts. In carrying out the program established by this section, the Secretary shall ensure, insofar as possible, that any use of agricultural commodities made available be made in such manner as to encourage increased use and avoid displacing usual marketings of agricultural commodities.". SUBTITLE B—UNIFORM BASE ACREAGE AND YIELD PROVISIONS 1 ACREAGE BASE AND PROGRAM YIELD SYSTEM FOR THE WHEAT, FEED " ? GRAIN, UPLAND COTTON, AND RICE PROGRAMS

SEC. 1031. Effective for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is amended by inserting after title IV the following new title: "TITLE V—ACREAGE BASE AND PROGRAM YIELD SYSTEM FOR THE WHEAT, FEED GRAIN, UPLAND COTTON, AND RICE PROGRAMS 7 USC 1461.

"SEC. 501. The purpose of this title is to prescribe a system for establishing farm and crop acreage bases and program yields for the

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