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Page:United States Statutes at Large Volume 91.djvu/970

 91 STAT. 936

PUBLIC LAW 95-113—SEPT. 29, 1977

quent crop be less than 51 cents per pound. The total quantity on which payments would otherwise be payable to a producer for any crop under this paragraph shall be reduced by the quantity on which any disaster payment is made to the producer for the crop under paragraph (5)(B) of this subsection. Prevented "(5)(A) Effective only with respect to the 1978 and 1979 crops of planting disaster upland cotton, if the Secretary determines that the producers on a farm payments. are prevented from planting any portion of the acreage intended for cotton to cotton or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the Jproducers, the Secretary shall make a prevented planting disaster payment to the producers on the number of acres so affected but not to exceed the acreage planted to cotton for harvest (including any acreage which the producers were prevented from planting to cotton or other nonconserving crop in lieu of cotton because of drought, flood, or other natural disaster, or other condition beyond the control of the producers) in the immediately preceding year, multiplied by 75 per centum of the farm program payment yield established by the Secretary times a payment rate equal to 33i/^ per centum of the established price for the crop. "(B) Effective only with respect to the 1978 and 1979 crops of ^ upland cotton, if the Secretary determines that because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the total quantity of cotton which the producers are able to harvest on any farm is less than the result of multiplying 75 per centum of the farm program payment yield established by the Secretary for such crop by the acreage planted to harvest for such crop, the Secretary shall make a farm disaster payment to the producers at a rate equal to 331/^ per centum of the established price for the crop for the deficiency in production below 75 per centum for the crop. Payment sharing. "(6) The Secretary shall provide for the sharing of payments made under this subsection for any farm among the producers on the farm on a fair and equitable basis. "(7) The Secretary shall establish for each of the 1978 through 1981 National program acreage. crops of upland cotton a national program acreage. Such national proAnnouncement. gram acreage shall be announced by the Secretary not later than December 15 of the calendar year preceding the year for which such Revision. acreage is established. The Secretary may revise the national pro2:ram acreage first announced for any crop year for the purpose of determining the allocation factor under paragraph (8) of this subsection if the Secretary determines it necessary based upon the latest information, and the Secretary shall announce such revised national program acreage as soon as it has been made. The national program acreage shall be the number of harvested acres the Secretary determines (on the basis of the estimated weighted national average of the farm program yields for the crop for which the determination is made) will produce the quantity (less imports) that the Secretary estimates will be utilized domestically and for export during the marketing year for such Adjustment. crop. The national program acreage shall be subject to such adjustment as the Secretary determines necessary, taking into consideration the estimated carryover supply, so as to provide for an adequate but not excessive total supply of cotton for the marketing year for the crop for which such national program acreage is established. In no event shall the national program acreage be less than 10 million acres. Allocation factor. "(8) The Secretary shall determine a program allocation factor for each crop of upland cotton. The allocation factor (not to exceed 100 per centum) shall be determined by dividing the national program

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Page:United States Statutes at Large Volume 91.djvu/971

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 937

acreage for the crop by the number of acres which the Secretary estimates will be harvested for such crop. "(9) The individual farm program acreage for each crop of upland cotton shall be determined by multiplying the allocation factor by the acreage of cotton planted for harvest on the farms for which individual farm program acreages are required to be determined: Provided, That the cotton acreage eligible for payment on a farm shall not be further reduced by application of the allocation factor if the producers reduce the acreage of cotton planted for harvest on the farm from the previous year by at least the percentage recommended by the Secretary in the announcement of the national program acreage made not later than December 15 of the calendar year preceding the year for which such acreage is established. The Secretary shall provide fair and equitable treatment for producers on farms on which the acreage of i cotton planted for harvest is less than for the preceding year, but the reduction is insufficient to exempt the farm from the application of the allocation factor. In establishing the allocation factor, the Secretary is authorized to make such adjustment as the Secretary deems necessary to take into account the extent of exemption of farms under the foregoing provisions of this paragraph. "(10) The farm program payment yield for each crop of upland Payment yields, cotton shall be determined on the basis of the actual yields per harvested acre on the farm for the preceding three years: Provided, That the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, or other natural disaster, or other condition beyond the control of the producers. In case farm yield data for one or more years are unavailable or there was no production, the Secretary shall provide for appraisals to be made on the basis of actual yields and program payment yields for similar farms in the area for which data are available. Notwithstanding the foregoing provisions of this paragraph, in the determination of yields, the Secretary shall take into account the actual yields proved by the producer, and neither such yields nor the farm program payment yield established on the basis of such yields shall be reduced under other provisions of this paragraph. If the Secretary determines it necessary, the Secretary may establish national. State, or county program payment yields on the basis of historical yields, as adjusted by the Secretary to correct for abnormal factors aifecting such yields in the historical period, or, if such data are not available, on the Secretary's estimate of actual yields for the crop year involved. In the event national. State, or county program payment yields are established, the farm program payment yields shall balance to the national, State, or county program payment yields. "(11)(A) The Secretary shall provide for a set-aside of cropland if Cropland setthe Secretary determines that the total supply of upland cotton will, aside. in the absence of such a set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emergency. If a setaside of cropland is in effect under this paragraph, then as a condition of eligibility for loans, purchases, and payments on upland cotton, the producers on a farm must set aside and devote to conservation uses an acreage of cropland equal to a specified percentage as determined by the Secretary (but not to exceed 28 per centum), of the acreage of upland cotton planted for harvest for the crop year for which a set-aside is in effect. The set-aside acreage shall be devoted to conser- Regulations. vation uses in accordance with regulations issued by the Secretary which will assure protection of such acreage from weeds and wind and water erosion; however, the Secretary may permit, subject to such

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Page:United States Statutes at Large Volume 91.djvu/972

 91 STAT. 938

Limitation.

Land diversion payments.

Contracts.

Wildlife habitat.

Payment.

Agreement, "^^"8-

Termination or modification.

PUBLIC LAW 95-113—SEPT. 29, 1977 terms and conditions as the Secretary may prescribe, all or any part of the set-aside acreage to be devoted to sweet sorghum, hay, and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if the Secretary determines that such production is needed to provide an adequate supply, is not likely to increase the cost of the price support program, and will not adversely affect farm income. The Secretary may limit the acreage planted to upland cotton. Such limitation shall be applied on a uniform basis to all cotton-producing farms. Producers on a farm who knowingly plant cotton in excess of the permitted cotton acreage for the farm shall be ineligible for cotton loans or payments with respect to that farm. "(B) The Secretary may make land diversion payments to producers of upland cotton, whether or not a set-aside for upland cotton is in effect, if the Secretary determines that such land diversion payments are necessary to assist in adjusting the total national acreage of upland cotton to desirable goals. Such land diversion payments shall be made to producers on a farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts entered into by the Secretary with such producers. The amounts payable to producers under land diversion contracts may be determined through the submission of bids for such contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropriate. In determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to be undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. "(C) The set-aside acreage and the additional diverted acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sentence. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. "(12) If the Operator of the farm desires to participate in the program formulated under this subsection, the operator shall file an agreement to do so no later than such date as the Secretary ma}^ prescribe. Loans, purchases, and payments under this subsection shall be made available to the producers on such farm only if the producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil conserving uses, and the agreement shall S provide. The Secretary may, by mutual agreement with the O producers, terminate or modify any such agreement entered into pursuant to this subsection if the Secretary determines such action necessary because of an emergency created by drought or other disaster, or in order to alleviate a shortage in the supply of agricultural commodities.

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Page:United States Statutes at Large Volume 91.djvu/973

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 939

"(13) The Secretary shall provide adequate safeguards to protect Safeguards, the interests of tenants and sharecroppers. " (14) In any case in which the failure of a producer to comply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the default. "(15) The Secretary is authorized to issue such regulations as the Regulations. Secretary determines necessary to carry out the provisions of this subsection. "(16) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation. "(17) The provisions of subsection 8(g) of the Soil Conservation and Domestic Allotment Act, as amended (relating to assignment of 16 USC 590h. payments), shall apply to payments under this subsection.". COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS

SEC. 603. Effective only with respect to the period beginning August 1, 1978, and ending July 31, 1982, the tenth sentence of section 407 of the Agricultural Act of 1949, as amended, is amended by striking out all of that sentence through the words "110 per cen'^um of the loan rate, and (2)" and inserting in lieu thereof the following: "Notwithstanding any other provision of law, (1) the Commodity Credit Corporation shall sell upland cotton for unrestricted use at the same prices as it sells cotton for export, in no event, however, at less than 115 per centum of the loan rate for Strict Low Middling one and onesixteenth inch upland cotton (micronaire 3.5 through 4.9) adjusted for such current market differentials reflecting grade, quality, location, and other value factors as the Secretary determines appropriate plus reasonable carrying charges, and (2)". MISCELLANEOUS COTTON

Cotton. 7 USC 1427.

PROVISIONS

SEC. 604. (a) Section 408(b) of the Agricultural Act of 1949, as Cooperator. amended, is amended by inserting immediately before the period at the 7 USC 1428. end of the first sentence the following: ": Provided fwrther^ That for the 1978 through 1981 crops of upland cotton, a cooperator shall be a producer on a farm who has set aside the acreage required under section 103(f)". ^«te, p. 934. (b) Section 408(1) of the Agricultural Act of 1949, as added by the Agricultural Act of 1970, as amended, to be effective for the 1971 through 1977 crops, shall be effective for the 1978 through 1981 crops, and shall read as follows: a REFERENCES TO TERMS MADE APPLICABLE TO UPLAND COTTON

"(1) References made in sections 402, 403, 406, and 416 to the Post, p. 956. terms 'support price', 'level of support', and 'level of price support' 7 USC 1736, shall be considered to apply as well to the level of loans and purchases 1431. for upland cotton under this Act; and references made to the terms 'price support', 'price support operations', and 'price support program' in such sections and in section 401(a) shall be considered as applying Post, p. 956. as well to the loan and purchase operations for upland cotton under this Act.". (c) Sections 103(a) and 203 of the Agricultural Act of 1949, as 7 USC 1446d amended, shall not be applicable to the 1978 through 1981 crops. "ote. 7 USC 1444, 1446d.

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Page:United States Statutes at Large Volume 91.djvu/974

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 940 . i,=

7 USC 1374.

i

-A;

•

.!,

SKIPROW PRACTICES

SEC. 605. Section 374(a) of the Agricultural Adjustment Act of 1938, as amended, is amended by striking out "1977" in the last sentence and inserting in lieu thereof "1981". PRELIMINARY ALLOTMENTS FOR 1982 CROP OF UPLAND COTTON

7 USC 1342 note.

7 USC 1379.

SEC. 606. Notwithstanding any other provision of law, the permanent State, county, and farm base acreage allotments for the 1977 crop of upland cotton, adjusted for any underplantings in 1977 and reconstituted as provided in section 379 of the Agricultural Adjustment Act of 1938, as amended, shall again become effective as preliminary allotments for the 1982 crop. EXTRA LONG STAPLE COTTON

7 USC 1441.

SEC. 607. Section 101(f) of the Agricultural Act of 1949, as amended, is amended by striking out the words "Middling one-inch" appearing in the first sentence and inserting in lieu thereof "Strict Low Middling one and one-sixteenth inch". TITLE VII—RICE NATIONAL ACREAGE ALLOTMENT AND ALLOCATION

7 USC 1352 and note.

SEC. 701. Effective beginning with the 1978 crop of rice, section 101 of the Rice Production Act of 1975 is amended by striking out "1976 and 1977" each place it occurs and inserting in lieu thereof "1976 through 1981". LOAN RATES, TARGET PRICES, AND SET-ASIDE FOR THE 19 78 THROUGH 1981 CROPS

SEC. 702. Effective only for the 1978 through 1981 crops of rice, section 101 of the Agricultural Act of 1949, as amended, is amended by adding a new subsection (h) as follows: 7 USC 1441. " (h) Notwithstanding any other provision of law— Established "(1) For the 1978 through 1981 crops of rice, the established P"^^price for the purpose of making payments under this subsection shall be the established price for the previous year's crop adjusted to reflect any change in (i) the average adjusted cost of production for the two crop years immediately preceding the year for which the determination is made from (ii) the average adjusted cost of production for the two crop years immediately preceding the year previous to the one for which the determination is made. Adjusted cost of The adjusted cost of production for each of such years shall be production. determined by the Secertary on the basis of such information as the Secretary finds necessary and appropriate for the purpose and shall be limited to (i) variable costs, (ii) machinery ownership costs, and (iii) general farm overhead costs, allocated to the crops involved on the basis of the proportion of the value of the total production derived from each crop. Loans and.. "(2) The Secretary shall make available, to cooperators in the purchases. several States of the United States, loans and purchases for each of the 1978 through 1981 crops of rice at such level as bears the same ratio to the loan level for the preceding year's crop as the established price for each such crop bears to the established price for the preceding year's crop. If the Secretary determines that

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Page:United States Statutes at Large Volume 91.djvu/975

 PUBLIC LAW 9 5 - 1 1 3 — S E P T. 29, 1977 loans and purchases at the foregoing level for any of the 1978 through 1981 crops would substantially discourage the exportation of rice and result in excessive stocks of rice in the United States, the Secretary may, notwithstanding the foregoing provisions of this paragraph, establish loans and purchases for such crop or crops at such level, not less than $6.31 per hundredweight nor more than the parity price thereof, as the Secretary determines necessary to avoid such consequences. The loans and purchases shall be made available to cooperators on a farm with respect to a quantity of rice determined by multiplying the allotment by the yield established for the farm, as determined in the manner described in the second sentence of paragraph (4)(A) of this subsection. " (3) The Secretary shall make available to cooperators payments for each of the 1978 through the 1981 crops of rice grown in the several States of the United States at a rate equal to the amount by which the established price for the crop of rice exceeds the higher of— " (A) the national average market price received by farmers during the first five months of the marketing year for such crop, as determined by the Secretary, or " (B) the loan level determined under paragraph (2) for such crop. " (4)(A) The payments for each such crop shall be made available to cooperators on a farm with respect to a quantity of rice determined by multiplying that portion of the allotment planted to rice by the yield established for the f a r m: Provided, That an acreage on the farm which the Secretary determines was not planted to rice because of drought, flood, or other natural disaster, or other condition beyond the control of the cooperators shall be considered to be an acreage planted to rice. The yield for the farm for any year shall be determined on the basis of the actual yields per harvested acre for the three preceding years: Provided, That the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, other natural disaster, or other condition beyond the control of the cooperators. The total quantity on which payments would otherwise be payable to a cooperator for any crop under this subparagraph shall be reduced by the quantity on which any disaster payment is made to the cooperator on a farm for the crop under this paragraph. " (B) Effective only with respect to the 1978 and 1979 crops of rice, if the Secretary determines that the persons involved in producing rice on a farm are prevented from planting all or any portion of the acreage allotments of producers on the farm or the farm acreage allotment to rice or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary shall make a prevented planting disaster payment to cooperators on a farm in an amount determined by multiplying (i) the number of such acres so affected, by (ii) the yield established for the farm, by (iii) 331^ per centum of the established price for rice, except that the Secretary shall make no payment pursuant to this sentence on a farm from which acres were transferred under section 352(d) of the Agricultural Adjustment Act of 1938, as amended, with respect to the transferred acreage. " (C) Effective only with respect to the 1978 and 1979 crops of rice, if the Secretary determines that because of drought, flood, or other natural disaster, or other condition beyond the control of the

91 STAT. 941

Payments

Prevented planting disaste payments.

7 USC 1352 Farm disaster payments.

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Page:United States Statutes at Large Volume 91.djvu/976

 91 STAT. 942

7 USC 1352. Cropland setaside.

Eligibility.

Land diversion payments.

Contracts.

Bids, submittal.

PUBLIC LAW 95-113—SEPT. 29, 1977 producers, the total quantity of rice which the persons involved in producing rice on a farm are able to harvest on the acreage allotments of producers on the farm or the farm acreage allotment is less than the result of multiplying 75 per centum of the yield established for the farm by the acreage within the allotment planted to rice for harvest for such crop, the Secretary shall make a farm disaster payment to the cooperators on the farm for the deficiency in production below 75 per centum of the crop at a rate equal to 33i/^ per centum of the established price for the crop. " (D) Any payment made under subparagraphs (B) and (C) of this paragraph with regard to acres transferred under section 352(d) of the Agricultural Adjustment Act of 1938, as amended, shall be calculated with respect to the farm yield established on the farm to which such acres were transferred. " (5) The Secretary shall provide for a set-aside of cropland if the Secretary determines that the total supply of rice will, in the absence of such set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emergency. If a set-aside of cropland is in effect under this paragraph, then as a condition of eligibility for loans, purchases, and payments under this subsection, the cooperators on a farm must set aside and devote to conservation uses an acreage of cropland equal to (i) such percentage of the farm acreage allotment as may be specified by the Secretary (not to exceed 30 per centum of the farm acreage allotment), plus, if required by the Secretary, (ii) the acreage of cropland on the farm devoted in preceding years to soil conserving uses, as determined by the Secretary. The set-aside acreage shall be devoted to conservation uses, in accordance with regulations issued by the Secretary, which will assure protection of such acreage from weeds and wind and water erosion; however, the Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the setaside acreage to be devoted to sweet sorghum, hay, and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if the Secretary determines that such production is needed to provide an adequate supply of such commodities, is not likely to increase the cost of the price support program, and will not adversely affect farm income. " (6) The Secretary may make land diversion payments to cooperators, whether or not a set-aside for rice is in effect, if the Secretary determines that such land diversion payments are necessary to assist in adjusting the total national acreage of rice to desirable goals. Such land diversion payments shall be made to cooperators on a farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts entered into by the Secretary with such cooperators. The amounts payable to cooperators under land diversion contracts may be determined through the submission of bids for such contracts by cooperators in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropriate. I n determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to

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Page:United States Statutes at Large Volume 91.djvu/977

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 943

be undertaken by the cooperators and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. "(7) The set-aside acreage and the additional diverted acreage Consultation. may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may pay an appropriate Payment. share of the cost of practices designed to carry out the purposes of the foregoing sentence. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the cooperator agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. "(8) If the operator of the farm desires to participate in the Agreement, program formulated under this subsection the operator shall file filing. an agreement to do so no later than such date as the Secretary may prescribe. Loans, purchases, and payments under this subsection shall be made available to cooperators on such farm only if such cooperators set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator of the farm agrees to set aside and devote to approved soil conserving uses, and the agreement shall so provide. The Sec- Termination or retary may, by mutual agreement with the cooperators on the modification. farm, terminate or modify any such agreement entered into pursuant to this subsection if the Secretary determines such action necessary because of any emergency created by drought or other disaster, or in order to alleviate a shortage in the supply of rice. "(9) The Secretary shall provide adequate safeguards to pro- Safeguards tect the interests of tenants and sharecroppers, including provision for sharing, on a fair and equitable basis in payments under this subsection. "(10) In any case in which the failure of a cooperator to comply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the default. "(11) The Secretary is authorized to issue such regulations Regulations. as the Secretary determines necessary to carry out the provisions of this subsection. "(12) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation. "(13) The provisions of subsection 8(g) of the Soil Conservation and Domestic Allotment Act (relating to assignment of 16 USC 590h. payments) shall apply to payments under this subsection,". SUSPENSION o r MARKETING QUOTAS AND OTHER PROVISIONS

SEC. 703. Sections 353, 354, 355, 356, and 377 of the Agricultural Adjustment Act of 1938, as amended, shall not be applicable to the 1978 through 1981 crops of rice.

7 USC 1353 note. 7 USC 13531356, 1377.

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Page:United States Statutes at Large Volume 91.djvu/978

 91 STAT. 944

PUBLIC LAW 95-113—SEPT. 29, 1977 DEFINITION OF COOPERATOR

Ante, p. 939.

SEC. 704. The last proviso in the first sentence of section 408(b) of the Agricultural Act of 1949, as added by section 303 of the Rice Production Act of 1975, is amended by striking out "and 1977" and inserting in lieu thereof "through 1981". CONFORMING AMENDMENT

7 USC 1736b.

SEC. 705. Section 408(m) of the Agricultural Act of 1949, as added by the Rice Production Act of 1975, to be effective for the 1976 and 1977 crops, shall be effective for the 1978 through 1981 crops, and shall read as follows: REFERENCES TO TERMS MADE APPLICABLE TO RICE

Post, p. 956. 7 USC 1736. Ante, pp. 927, 939. 7 USC 1431. Post, p. 956.

"(m) References made in sections 402, 403, 406, 407, and 416 to the terms 'support price', 'level of support', and 'level of price support' shall bo considered to apply as well to the level of loans and purchases for rice under this Act; and references made to the terms 'price support', 'price support operation', and 'price support program' in such sections and in section 401(a) shall be considered as applying as well to the loan and purchase operations for rice under this Act.". TITLE VIII—PEANUTS A N N U A L MARKETING QUOTA AND STATE ACREAGE ALLOTMENT

SEC 801. Section 358 of the Agricultural Adjustment Act of 1938; 7 USC 1358. as amended, is amended as follows: 7 USC 1358note. (a) Subsections (a) and (e) shall not be applicable to the 1978 through 1981 crops of peanuts. 7 USC 1358. (b) Subsection (c)(1) is amended, effective for the 1978 through 1981 crops of peanuts, by striking out the period at the end of the second sentence and inserting in lieu thereof the following: ": Provided, That the peanut acreage allotment for the State of New Mexico .shall not be reduced below the 1977 acreage allotment as increased pursuant to subsection (c)(2) of this section.". NATIONAL ACREAGE ALLOTMENT; NATIONAL POUNDAGE QUOTA; FARM POUNDAGE QUOTA; AND DEFINITIONS

• ' ' Announcements. ..

SEC. 802. Effective for the 1978 through 1981 crops of peanuts, section 358 of the Agricultural Adjustment Act of 1938, as amended, is amended by adding at the end thereof new subsections (k) through (p) as follows: "(k) The Secretary shall, not later than December 1 of each year, announce a national acreage allotment for peanuts for the following crop taking into consideration projected domestic use, exports, and a reasonable carryover: Provided, That such allotment shall be not less than one million six hundred and fourteen thousand acres. "(1) The Secretary shall, not later than December 1 of each year, announce a minimum national poundage quota for peanuts for the following marketing year of the following amounts: 1978, 1,680,000 tons; 1979, 1,596,000 tons; 1980,,1,516,000-tons; and 1981, 1,440,000 tons. If the Secretary determines that the minimum national poundage quota for any marketing year is insufficient to meet total estimated

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Page:United States Statutes at Large Volume 91.djvu/979

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 945

requirements for domestic edible use and a reasonable carryover, the national poundage quota for the marketing year may be increased by the Secretary to the extent determined by the Secretary to be necessary to meet such requirements. "(m) For each farm for which a farm acreage allotment has been Farm yield, established, a farm yield for peanuts shall be determined. Such yield shall be equal to the average of the actual yield per acre on the farm for each of the three crop years in which yields were highest on the farm out of the five crop years 1973 through 1977: Provided, That if peanuts were not produced on the farm in at least three years during such five-year period or there was 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 which 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, "(n) For each farm, a farm base production poundage shall be Farm base established equal to the quantity determined by multiplying the farm production peanut acreage allotment by the farm yield determined in accordance poundage. with subsection (m) of this section. "(o) For each farm, a farm poundage quota shall be established by Farm poundage the Secretary for each marketing year equal to the farm base produc- quota. tion poundage multiplied by a factor determined by the Secretary, such that the total of all farm poundage quotas will equal the national poundage quota for such marketing year. The poundage quota so determined, beginning with the 1979 crop for any farm, shall be increased by the number of pounds by which marketings of quota peanuts from the farm during the immediately preceding marketing j^ear were less than the farm poundage quota: Provided, That total market- Limitation. ings shall not exceed actual production from the farm acreage allotment: Provided further, That the grower must have planted in such preceding marketing year that part of the farm allotment estimated on the basis of the farm yield to be sufficient to produce the total farm poundage quota: Provided further, That if the total of all such Adjustment increases in individual farm poundage quotas exceeds 10 per centum of the national poundage quota for the marketing year, the Secretary shall adjust such increases so that the total of all increases does not exceed 10 per centum of the national poundage quota. "(p) For the purposes of this part and title I of the Agricultural Definitions. 7 USC 1441. Act of 1949, as amended— "(1) 'quota peanuts' means, for any marketing year, any peanuts which are eligible for domestic edible use as determined by the Secretary, which are marketed or considered marketed from a farm, and which do not exceed the farm poundage quota of such farm for such year; "(2) 'additional peanuts' means, for any marketing year, any peanuts which are marketed from a farm and which are in excess of the marketings of quota peanuts from such farm for such year but not in excess of the actual production of the farm acreage allotment; "(3) 'crushing' means the processing of peanuts to extract oil for food uses and meal for feed uses, or the processing of peanuts

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Page:United States Statutes at Large Volume 91.djvu/980

 91 STAT. 946

PUBLIC LAW 9 5 - 1 1 3 — S E P T. 29, 1977 by crushing or otherwise when authorized by the Secretary; and " (4) 'domestic edible use' means use for milling to produce domestic food peanuts and seed and use on a farm.". SALE, LEASE, AND TRANSFER OF ACREAGE ALLOTMENT

7 USC 1358a.

SEC. 803. Effective for the 1978 through 1981 crops of peanuts, section 358a of the Agricultural Adjustment Act of 1938, as amended, is amended by— (1) in subsection (a) — (i) striking out ". if he determines that it will not impair the effective operation of the peanut marketing quota or price support program,": and (ii) striking out "'may" each place that term appears and inserting ""shnU" in lieu thereof: and (2) adding at the end thereof a new subsection (i) as follows: " (i) Xotwithstanding any other provision of this section, transfers shall be on the basis of the farm base production poundage, and the acreage allotment for the receiving farm shall be increased by an amount determined by dividing the number of pounds transferred by the farm yield for the receiving farm, and the acreage allotment for the transferring farm shall be reduced by an amount determined by dividing the number of pounds transferred by the farm yield for th^ transferring farm.". MARKETING P E N A L T I E S; DISPOSITION OF ADDITIONAL

7 USC 1359.

Post, p. 947.

Penalty.

PEANUTS

SEC. 804. Effective for the 1978 through 1981 crops of peanuts, section 359 of the Agricultural Adjustment Act of 1938, as amended, is amended by— (1) striking out in the first sentence of subsection (a) "75 per centum of the support price for" and inserting in lieu thereof "120 per centum of the support price for quota"; (2) inserting after the first sentence of subsection (a) a new sentence as follows: "The marketing of any additional peanuts from a farm shall be subject to the same penalty unless the peanuts, in accordance with regulations established hj the Secretary, are placed under loan at the additional loan rate under the loan program made available under section 108(b) of the Agricultural Act of 1949 and not redeemed by the producers or are marketed under contracts between handlers and producers pursuant to the provisions of subsection (i) of this section."; (3) striking out "normal yield" in subsection (a) and inserting in lieu thereof "farm yield"; and (4) adding at the end thereof new subsections (f) through (j) as follows: " (f) Only quota peanuts may be retained for use as seed or for other uses on a farm and when so retained shall be considered as marketings of quota peanuts. Additional peanuts shall not be retained for use on a farm and shall not be marketed for domestic edible use. 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. " (g) Upon 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,

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Page:United States Statutes at Large Volume 91.djvu/981

 PUBLIC LAW 95-113—SEPT. 29, 1977 kernel content, and quality of the quota peanuts acquired by such handler from such crop for such marketing, such handler shall l3e subject to a penalty equal to 120 per centum of the loan level for quota peanuts on the peanuts which 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. "(h) 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 108(c) of the Agricultural Act of 1949. Quota and additional peanuts of like type and segregation or quality may, under regulations prescribed by the Secretary, be commingled and exchanged on a dollar value basis to facilitate warehousing, handling, and marketing. "(i) Handlers may, under regulations prescribed by the Secretary, contract with producers for the purchase of additional peanuts for crushing, export, or both. All such contracts shall be completed and submitted to the Secretary (or if designated by the Secretary, the area association) for approval prior to June 15 of the year in which the crop is produced. "(]) Subject to the provisions of sction 407 of the Agricultural Act of 1949, as amended, any peanuts owned or controlled by the Commodity Credit Corporation may be made available for domestic edible use in accordance with regulations established by the Secretary. 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 (1) 100 per centum of the loan value of quota peanuts if the additional peanuts are sold and paid for during the harvest season upon delivery by the producer, or (2) 105 per centum 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 (3) 107 per centum of the loan value of quota peanuts if the additional peanuts are sold later than December 31 of the marketing year.".

91 STAT. 947

infra.

Contracts,

Ante, p. 927, ^^9.

REPORTS AND RECORDS

SEC. 805. Effective for the 1978 through 1981 crops of peanuts, the first sentence of section 373(a) of the Agricultural Adjustment Act of 1938, as amended, is amended by inserting immediately before "all 7 USC 1373. brokers and dealers in peanuts" the following: "all farmers engaged in the production of peanuts,". PRESERVATION OF UNUSED

ALLOTMENTS

SEC. 806. Effective for the 1978 through 1981 crops of peanuts, section 377 of the Agricultural Adjustment Act of 1938, as amended, 7 USC 1377. is amended by inserting after the words "farm acreage allotment for such year" the following: "or, in the case of peanuts, an acreage sufficient to produce 75 per centum of the farm poundage quota". PRICE SUPPORT PROGRAM

SEC. 807. Effective for the 1978 through 1981 crops of peanuts, title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 108 as follows:

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Page:United States Statutes at Large Volume 91.djvu/982

 91 STAT. 948

PUBLIC LAW 95-113—SEPT. 29, 1977 ' P E A N U T PROGRAM

7 USC 1445c.

7 USC 1421.

Adjustments. 7 USC 1423.

Warehouse storage loans.

Ante, p. 946.

Pools, establishment. Record retention. Net gains.

"SEC. 108. Notwithstanding any other provision of law— "(a) The Secretary shall make price support available to producers through loans, purchases, or other operations on quota peanuts for each of the 1978 through 1981 crops at such levels as the Secretary finds appropriate, taking into consideration the eight factors specified in section 401(b) of this Act, and any change in the index of prices paid by farmers for production items, interest, taxes, and wage rates during the period beginning January 1 and ending December 31 of the calendar year immediately preceding the marketing year for which the level of support is being determined, but not less than $420 per ton. The levels of support so announced shall not be reduced by any deductions for inspection, handling, or storage: Provided, That the Secretary may make adjustments for location of peanuts and such other adjustments as are authorized by section 403 of this Act. "(b) The Secretary shall make price support available to producers through loans, purchases, or other operations on additional peanuts for each of the 1978 through 1981 crops. In determining support levels, the Secretary shall take 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 markets. The Secretary shall announce the level of support for additional peanuts of each crop not later than February 15 preceding the marketing year for which the level of support is being determined. "(c)(1) In carrying out subsections (a) and (b) of this section, the Secretary may make warehouse storage loans available in each of the three producing areas (described in 7 CFR § 1446.4 (1977)) to a designated area marketing association of peanut producers which is selected and approved by the Secretary and which is operated primarily for the purpose of conducting such loan activities. Such associations may be used in administrative and supervisory activities relating to price support and marketing activities under this section and section 3,59 of the Agricultural Adjustment Act of 1938, as amended. Such loans shall include, in addition to the price support value of the peanuts, such costs as such association reasonably may incur in carrying out such responsibilities in its operations and activities under this section and section 359 of the Agricultural Adjustment Act of 1938, as amended. "(2) The Secretary may require that each such association establish pools and maintain complete and accurate records by type for ouota peanuts handled under loans and for additional peanuts produced without a contract between handler and producer described in section 359 (i) of the Agricultural Adjustment Act of 1938. Net gains on peanuts in each pool, unless otherwise approved by the Secretary, shall be distributed in proportion to the value of the peanuts placed in the pool by each grower. Net gains for peanuts in each pool shall consist of (A) 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 and (B) 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

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Page:United States Statutes at Large Volume 91.djvu/983

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 949

pool for quota peanuts as provided in clause (A) of this paragraph. Notwithstanding any other provision of this subsection, any distribution of net gains on additional peanuts of any type to any producer shall be reduced to the extent of any loss by the Commodity Credit Corporation on quota peanuts of a different type placed under loan by such grower.". TITLE IX—SOYBEANS AND SUGAR \

SOYBEAN PRICE SUPPORT

•

SEC. 901. Effective only with respect to the 1978 through 1981 crops of soybeans, section 201 of the Agricultural Act of 1949, as amended, Ante, p. 920. is amended by— (1) inserting in the first sentence after "tung nuts," the following: "soybeans,"; and (2) adding at the end thereof a new subsection (e) as follows: "(e) The price of the 1978 through 1981 crops of soybeans shall be supported through loans and purchases at such levels as the Secretary determines appropriate in relation to competing commodities and taking into consideration domestic and foreign supply and demand factors: Provided, That notwithstanding the provisions of section 1001 of the Food and Agriculture Act of 1977, the Secretary shall not require a set-aside of soybean acreage as a condition of eligibility for price support for any commodity supported under the provisions of this Act.". SUGAR PRICE

SUPPORT

SEC. 902. Effective only with respect to the 1977 and 1978 crops of sugar beets and sugar cane, section 201 of the Agricultural Act of 1949, as amended, is amended by— (1) striking out in the first sentence "honey, and milk" and inserting in lieu thereof the following: "honey, milk, sugar beets, and sugar cane"; and (2) adding at the end thereof a new subsection (f) as follows: "(f)(1) The price of the 1977 and 1978 crops of sugar beets and sugar cane, respectively, shall be supported through loans or purchases with respect to the processed products thereof at a level not in excess of 65 per centum nor less than 52.5 per centum of the parity price therefor: Provided, That the support level may in no event be less than 13.6 cents per pound raw sugar equivalent. In carrying out the price sup- Minimum wage port program authorized by this subsection, the Secretary shall estab- rates, lish minimum wage rates for agricultural employees engaged in the establishment. production of sugar. "(2) Notwithstanding any other provision of law, the Secretary Suspension may suspend the operation of the price support program authorized by this subsection whenever the Secretary determines that an international sugar agreement is in effect which assures the maintenance in the United States of a price for sugar not less than 13.5 cents per pound raw sugar equivalent. "(3) Nothing in this subsection shall affect the authority of the Secretary to establish under any other provision of law a price support program for that portion of the 1977 crop of sugar cane and sugar .; beets marketed prior to the implementation of the program authorized by this subsection.".

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Page:United States Statutes at Large Volume 91.djvu/984

 91 STAT. 950

PUBLIC LAW 95-113—SEPT. 29, 1977 TITLE X—MISCELLANEOUS SET-ASIDE OF NORMALLY PLANTED ACREAGE

7 USC 1309.

SEC. 1001. Notwithstanding- any other provision of law, whenever a set-aside is in effect for one or more of the 1978 through 1981 crops of wheat, feed grains, upland cotton, and rice, the Secretary of Agriculture may require, as a condition of eligibility for loans, purchases, and 7 USC 1421 note, payments under the Agricultural Act of 1949, as amended, that the acreage normally planted to crops designated by the Secretary, adjusted as deemed necessary by the Secretary to be fair and equitable among producers, shall be reduced by the acreage of set-aside or diversion. AMERICAN AGRICULTURE PROTECTION PROGRAM

7 USC 1310.

"Commodity."

SEC. 1002. (a) Notwithstanding any other provision of law, whenever the President or any other member of the executive branch of the Federal Government causes to be suspended, based upon a determination of short supply, the commercial export sales of any commodity, as defined in subsection (c) of this section, to any country or area with which the United States otherwise continues commercial trade, the Secretary of Agriculture shall, on the day the suspension is initiated, set the loan level for such commodity under the Agricultural Act of 1949, as amended, if a loan program is in effect for the commodity, at 90 per centum of the parity price for the commodity, as such parity price is determined on the day the suspension is initiated, (b) Any loan level established pursuant to subsection (a) of this section shall remain in effect as long as the suspension of commercial export sales described in subsection (a) remains in effect. (c) For purposes of this section, the term "commodity" shall include any of the following: wheat, corn, grain sorghum, soybeans, oats, rye, barley, rice, flaxseed, and cotton. BUDGET AMENDMENT

Price supports. 7 USC 1447.

7 USC 1446.

SEC. 1003. (a) Effective only with respect to the 1978 through 1981 crops, section 301 of the Agricultural Act of 1949 is amended by adding at the end thereof a new sentence as follows: "The Secretary is authorized to make price support available under this title for the 1978 through 1981 crops of flaxseed, dry edible beans, gum naval stores, and in the case of the 1979 through 1981 crops, sugar beets and sugar cane, and for any other nonbasic commodity not designated in title II, except that such authority shall terminate with respect to any commodity, other than those listed in this sentence, at the end of any crop year in which the net outlays for the commodity exceed $50 million.", (b) The amendment made by this section to the Agricultural Act of 1949 shall not be operative in any manner with respect to any price support program in effect on the date of enactment of this Act. SPECIAL GRAZING AND H A Y PROGRAM

7 USC 1445d.

SEC. 1004. Title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 109 as follows: "SEC. 109. Notwithstanding any other provision of law— "(a) The Secretary is authorized to administer a special wheat acreage grazing and hay program (hereinafter in this section referred to as the 'special program') in each of the crop years 1978 through 1981.

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 PUBLIC LAW 95-113—SEPT. 29, 1977 Under the special program, a producer shall be permitted to designate, under such regulations as established by the Secretary, a portion of the acreage on the farm intended to be planted to wheat, feed grains, or upland cotton for harvest, not in excess of 40 per centum thereof, or 50 acres, whichever is greater, which shall be planted to wheat (or some other commodity other than corn or grain sorghum) and used by the producer for grazing purposes or hay rather than for commercial grain production. A producer who elects to participate in the special program shall receive a payment as provided in subsection (c) of this section. "(b) Any producer who elects to participate in the special program under this section shall designate the specific acreage on the farm which is to be used for the purposes set forth in subsection (a) of this section. No crop other than hay may be harvested from acreage included in the special program. "(c) The Secretary shall pay the producer participating in the special program an amount determined by multiplying the farm program payment yield for wieat established for the farm, by the number of acres included in the special program, by a rate of payment determined by the Secretary to be fair and reasonable. The producer shall not be eligible for any other payment or price support on any portion of the acreage for the farm which the producer elects to include in the special program. "(d) Acreage included in the special program shall be in addition to any acreage included in any acreage set-aside program otherwise provided for by law. "(e) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this section. "(f) The Secretary shall carry out the special program through the Commodity Credit Corporation.".

91 STAT. 951 Acreage, designation,

Payment,

Regulations.

DAILY RELEASE OF REPORTS OF EXPORT SALES OF AGRICULTURAL COMMODITIES

SEC. 1005. Section 812 of the Agricultural Act of 1970 is amended 7 USC 612C-3. by inserting immediately after the third sentence thereof a new sentence as follows: "When the Secretary requires that such information be reported by exporters on a daily basis, the information compiled from individual reports shall be made available to the public daily.". FILBERTS

SEC. 1006. Section 8e of the Agricultural Adjustment Act, as reenacted and amended by the Agricultural Marketing Agreement Act of 1937, is amended by inserting after "oranges, onions, walnuts, 7 USC 608e-l. dates," the following: "filberts,". TITLE XI—GRAIN RESERVES P R O D U C E R S TO R A G E P R O G R A M FOR W H E A T AND FEED GRAINS

SEC. 1101. Title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 110 as follows: " P R O D U C E R S TO R A G E PROGRAM FOR WHEAT AND FEED GRAINS

"SEC. 110. (a) The Secretary shall formulate and administer a program under which producers of wheat and, in the discretion of the 7 USC 1445e. Secretary, producers of feed grains will be able to store wheat and

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Page:United States Statutes at Large Volume 91.djvu/986

 91 STAT. 952

Safeguards.

Terms and conditions.

Waiver.

Announcement.

Restriction.

PUBLIC LAW 9 5 - 1 1 3 — S E P T. 29, 1977 feed grains when such commodities are in abundant supply and extend the time period for their orderly marketing. The Secretary shall establish safeguards to assure that wheat and feed grains held under the program shall not be utilized in any manner to unduly depress, manipulate, or curtail the free market. The authority provided by this section shall be in addition to other authorities available to the Secretary for carrying out producer loan and storage operations. " (b) I n carrying out the producer storage program, the Secretary may provide original or extended price support loans for wheat and feed grains at the same level of support as provided by this Act under terms and conditions designed to encourage producers to store wheat and feed grains for extended periods of time in order to promote orderly marketing when wheat or feed grains are in abundant supply. Among such other terms and conditions as the Secretary may prescribe by regulation, the program shall provide for (1) repayment of such loans in not less than three years nor more than five years; (2) payment to producers of such amounts as the Secretary determines appropriate to cover the cost of storing wheat and feed grains held under the program; (3) a rate of interest determined by the Secretary based upon the rate of interest charged the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust such interest; (4) recovery of amounts paid for storage, and for the payment of additional interest or other charges in the event such loans are repaid by producers before the market price for wheat or feed grains has reached the price levels specified in clause (5) of this subsection; (5) conditions designed to induce producers to redeem and market the wheat or feed grains securing such loans without regard to the maturity dates thereof whenever the Secretary determines that the market price of wheat has attained a specified level which is not less than 140 per centum nor more than 160 per centum of the then current level of price support for wheat or such appropriate level for feed srrains, as determined by the Secretary; and (6) conditions prescribed by the Secretary under which the Secretary may require producers to repay such loans, plus accrued interest thereon, refund amounts paid for storage, and pay such additional interest and other charges as may be required by regulation, whenever the Secretary determines that the market price for the commodity is not less than 175 per centum of the then current level of price support for wheat or such appropriate level for feed grains as determined by the Secretary under this Act. " (c) The Secretary shall announce the terms and conditions of the producer storage program as far in advance of making loans as practicable. I n puch announcement, the Secretary shall specify the quantity of wheat or feed grains to be stored under the program which the Secretary determines anpropriate to promote the orderly marketing of such commodities. The quantity of wheat shall not be less than three hundred million bushels nor more than seven hundred million bushels: Provided, That such maximum amount may be adjusted by the Secretary as necessary to meet such commitments as may be assumed by the United States pursuant to an international agreement containing provisions relating to grain reserves. " (d) Notwithstanding any other provision of law, whenever the extended loan program authorized by this section is in effect, the Commodity Credit Corporation may not sell any of its stocks of wheat or feed grains at less than 150 per centum of the then current level of price support for such commodity: Provided, That such restriction shall not apply to—

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Page:United States Statutes at Large Volume 91.djvu/987

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 953

"(1) sales of such commodities which have substantially deteriorated in quality or as to which there is a danger of loss or waste through deterioration or spoilage; and "(2) sales or other disposals of such commodities under (A) the fifth and sixth sentences of section 407 of this Act; (B) the Act 7 USC 1427. of September 21, 1959 (73 Stat. 574, as amended; 7 U.S.C. 1427 Ante, p. 927. Infra. note), and (C) section 813 of the Agricultural Act of 1970. "(e) The Secretary may, with the concurrence of the owner of grain Grain stored under the program authorized by this section, reconcentrate all reconcentration. such grain stored in commercial warehouses at such points as the Secretary deems to be in the public interest, taking into account such factors as transportation and normal marketing patterns. The Secretary shall permit rotation of stocks and facilitate maintenance of quality under regulations which assure that the holding producer or warehouseman shall, at all times, have available for delivery at the designated place of storage both the quantity and quality of grain covered by his commitment. "(f) Whenever grain is stored under the provisions of this section, Purchases the Secretary may buy and sell at an equivalent price, allowing for the customary location and grade differentials, substantially equivalent quantities of grain in different locations or warehouses to the extent needed to properly handle, rotate, distribute, and locate such commodities which the Commodity Credit Corporation owns or controls. Such purchases to offset sales shall be made within two market days following the sales. The Secretary shall make a daily list available showing Daily list, the price, location, and quantity of the transactions. "(g) The Secretary shall use the Commodity Credit Corporation, to the extent feasible, to fulfill the purposes of this section. In addition, to the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall utilize the usual and customary channels, facilities, and arrangements of trade and commerce.". INTERNATIONAL EMERGENCY FOOD RESERVE

SEC. 1102. Title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 111 as follows: ((INTERNATIONAL

E M E R G E N C Y FOOD RESERVE

"SEC. 111. The President is encouraged to enter into negotiations with other nations to develop an international system of food reserves to provide for humanitarian food relief needs and to establish and maintain a food reserve, as a contribution of the United States toward the development of such a system, to be made available in the event of food emergencies in foreign countries. The reserves shall be known as the International Emergency Food Reserve.".

Negotiations. Reserve system, establishment. 7 USC 1445f.

DISASTER RESERVE

SEC. 1103. Section 813 of the Agricultural Act of 1970, as added by the Agriculture and Consumer Protection Act of 1973, is amended as follows: (a) Subsection (b) is amended to read as follows: "(b) The Secretary shall acquire such commodities through the price support program. However, if the Secretary determines that no wheat, feed grains, or soybeans are available through the price support pro-

7 USC 1427a. eommodity acquisition.

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Page:United States Statutes at Large Volume 91.djvu/988

 91 STAT. 954

Commodity disposition.

Ante, pp. 927, 939.

PUBLIC LAW 9 5 - 1 1 3 — S E P T. 29, 1977 gram at locations where they may be economically utilized to alleviate distress caused by a natural disaster, the Secretary is authorized to purchase through the facilities of the Commodity Credit Corporation such wheat, feed grains, soybeans, hay, or other livestock forages as the Secretary deems necessary for disposition in accordance with the authority provided in subsection (d) of this section. The Secretary may acquire wheat, feed grains, soybeans, hay, or other livestock forages at such locations, at such times, and in such quantities as the Secretary finds necessary and appropriate and may pay such transportation and other costs as may be required to permit disposition of such wheat, feed grains, soybeans, hay, and other livestock forages under subsection (d) of this section.". (b) Subsection (d) is amended to read as follows: " (d) The Secretary is also authorized to dispose of such commodities only for (1) use in relieving distress (A) in any State, the District of Columbia, Puerto Rico, Guam, or the Virgin Islands of the United States, (B) in connection with any major disaster or emergency determined by the President to w a r r a n t assistance by the Federal Government under the Disaster Relief Act of 1974 (88 Stat. 143, as amended; 42 U.S.C. 5121), and (C) in connection with any emergency determined by the Secretary to w a r r a n t assistance under section 407 of the Agricultural Act of 1949 (63 Stat. 1055, as amended; 7 U.S.C. 1427), the Act of September 21, 1959 (73 Stat. 574, as amended; 7 U.S.C. 1427 note), or section 1105 of the Food and Agriculture Act of 1977; or (2) use in connection with a state of civil defense emergency as proclaimed by the President or by concurrent resolution of the Congress in accordance with the provisions of the Federal Civil Defense Act of 1950, as amended (50 U.S.C. A p p. 2251-2297).". FARM STORAGE FACILITY LOANS

Limitations.

SEC. 1104. Effective only with respect to the fiscal years beginning October 1, 1977, and ending September 30, 1981, section 4(h) of the Commodity Credit Corporation Charter Act (62 Stat. 1070, as amended; 15 TLS.C. 7 l 4 b (h)) is amended by inserting immediately before the period at the end of the second sentence the following: ": And provided further, That to encourage the storage of dry or high moisture grain, soybeans, and rice, and high moisture forage and silage on farms, where the commodities can be stored at the lowest cost, the Corporation shall—during the period beginning October 1, 1977, and ending September 30, 1981—make secured storage facility loans not to exceed $50,000 to growers of such commodities in amounts not less than 75 per centum of the total construction cost of such facility, including but not limited to the cost of structural and equipment foundations, electrical systems, grain handling systems, d r y i n g equipment, and site preparation, or, in the discretion of the Corporation, such loans may be made in such amounts not to exceed $50,000 to cover remodeling costs of existing storage facilities, as are set forth in regulations issued by the Secretary; the size of such facility for which a loan is obtained shall be based upon the amount of space required to store the quantity of the commodity estimated to be produced by the borrower during a two-year period; such loans shall be for a period not to exceed ten years at an interest rate based upon the rate of interest charged the Corporation by the United States Treasury; and the loans shall be deducted from the proceeds of price support loans or purchase agreements made between the Corporation and the growers".

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Page:United States Statutes at Large Volume 91.djvu/989

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 955

EMERGENCY FEED PROGRAM

SEC. 1105. (a) Notwithstanding any other provision of law, the Secretary of Agriculture may implement an emergency feed program for assistance in the preservation and maintenance of livestock in any area of the United States, including Puerto Rico, Guam, and the Virgin Islands of the United States, where, because of flood, drought, fire, hurricane, earthquake, storm, or other natural disaster, the Secretary determines that an emergency exists. (b) The Secretary shall not provide assistance under this section to any person unless all of the following conditions created by the emergency are present: (1) The person has suffered a substantial loss in the livestock feed normally produced on the farm for such person's livestock; (2) The person does not have sufficient feed for such person's livestock for the estimated period of the emergency; and (3) The person is required to make feed purchases during the period of the emergency in quantities larger than such person would normally make. (c) Persons eligible for assistance under the program formulated under this section may be reimbursed for not to exceed 50 per centum of the cost of the feed purchased by such eligible persons during the period of emergency, as announced by the Secretary of Agriculture, or at such lower rate as may be established by the Secretary. (d) Any person who disposes of any feed for which such person is reimbursed under this section, in any manner other than as authorized by the Secretary, shall be subject to a penalty equal to the market value of the feed involved, to be recovered by the Secretary in a civil suit brought for that purpose. In addition, such person shall be subject to a fine of not more than $10,000, or imprisonment for not more than one year, or both. (e) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this section. (f) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. (g) Notwithstanding any other provision of law, the Secretary shall not delegate the authority to administer the emergency feed program to any other department, agency, or entity, public or private.

7 USC 2267.

Conditions,

Penalty,

Regulations,

TITLE XII—PUBLIC LAW 480 AUTHORITY FOR THE COMMODITY CREDIT CORPORATION TO ACT AS PURCHASING OR S H I P P I N G AGENT UNDER TITLE I

SEC. 1201. Section 102 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by inserting immedi- 7 USC 1702. ately before the period at the end thereof the following: "and, when requested by the purchaser of such commodities, may serve as the purchasing or shipping agent, or both, in arranging the purchasing or shipping of such commodities". TITLE I SALES PROCEDURES

SEC. 1202. Title I of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by adding at the end thereof a new section 115 as follows:

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Page:United States Statutes at Large Volume 91.djvu/990

 PUBLIC LAW 95-113—SEPT. 29, 1977

91 STAT. 956 Bids.

7 USC 1715.

Payment, reports to Secretary.

Information, availability to public. Publication. Transmittal to congressional committees. Penalty.

" SEC. 115. (a) No purchases of food commodities shall be financed under this title unless they are made on the basis of an invitation for bid publicly advertised in the United States and on the basis of bid offerinp:s which shall conform to such invitation and shall be received and publicly opened in the United States. All awards in the purchase of commodities financed under this title shall be consistent with open, competitive, and responsive bid procedures, as determined by the Secretary of Agricultvire. Commissions, fees, or other payments to any selling agent shall—unless waived by the Secretary—be prohibited in any purchase of food commodities financed under this title. " (b) Notwithstanding any other provision of law, any commission, fee, or other compensation of any kind paid or to be paid by any supplier of a commodity or ocean transportation financed by the Commodity Credit Corporation under this title, to any agents, brokers, or other representatives of the importer or importing country, including a corporation owned or controlled by the importer or the government of the importing country, shall be reported to the Secretary of Agriculture by the supplier of the commodity or ocean transportation. The report shall identify the person or entity to whom the payment is made and the transaction in connection wath which the payment is made. The Secretary shall maintain such information for public inspection, publish a report theieof annually, and forward a copy of the report to the Committee on Agriculture and the Committee on International Relations of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. Any supplier of a commodity or ocean transportation who fails to file such a report or who files a false report shall be ineligible to furnish—directly or indirectly—commodities or ocean transportation financed under this title for a period of five years.". INCREASKD APPROPRIATION L I M I T FOR TITLE II

7 USC 1724.

SEC. 1203. Section 204 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by striking out "$600,000,000" in the first sentence and inserting in lieu thereof "$750,000,000". ^,, AVAILABILITY OF COMMODITIES

7 USC 1731.

SEC. 1204. Section 401(a) of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by striking out the period at the end of the last sentence and inserting in lieu thereof a comma and the following: "unless the Secretary of Agriculture determines that some part of the supply thereof should be used to carry out urgent humanitarian purposes of this Act.". <

7 USC 1732.

F I N A N C I N G THE SALE OF FOOD AND FIBER COMMODITIES

SEC. 1205. Section 402 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by adding at the end thereof a new sentence as follows: "In the allocation of funds made available under title I of this Act, priority shall be given to financing the sale of food and fiber commodities.". VALUATION OF COMMODITIES ACQUIRED THROUGH PRICE SUPPORT PROGRAMS

7 USC 1733.

SEC. 1206. Section 403 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by— (1) inserting " (a) " immediately after the section designation; and

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(2) adding at the end thereof a new subsection (b) as follows: "(b) Notwithstanding any other provision of law, in determining the reimbursement due the Commodity Credit Corporation for all costs incurred under this Act, commodities from the Commodity Credit Corporation inventory, which were acquired under a domestic price support program, shall be valued at the export market price therefor, as determined by the Secretary of Agriculture, as of the time the commodity is made available under this Act.". REVISED REGULxVTIONS GOVERNING OPERATIONS; BAGGED COMMODITIES

SEC. 1207. Section 408 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by adding at the end thereof new subsections (d) and (e) as follows: "(d)(1) Not later than six months following the date of enactment of this subsection, and at each two-year interval thereafter, the Secretary of Agriculture shall issue revised regulations governing all operations under title I of this Act, including operations relating to purchasing countries, suppliers of commodities or ships, and purchasing or shipping agents. The regulations shall include, but not be limited to, prohibitions against conflicts of interest, as determined by the Secretary, between (A) recipient countries (or other purchasing entities) and their agents, (B) suppliers of commodities, (C) suppliers of ships, and (D) other shipping interests. "(2) The regulations shall be designed to encourage an increase in the number of exporters participating in the program. "(3) All revised regulations governing operations under title I and title III of this Act shall be transmitted to Congress by the Secretary as soon as practicable after their issuance. "(e) Bagged commodities for the purpose of financing by the Commodity Credit Corporation under this Act may, subject to regulations issued by the Secretary of Agriculture, be considered 'exported' upon delivery at port, and upon presentation of a dock receipt in lieu of an on-board bill of lading.".

7 USC 1736b.

Transmittal to Congress. 7 USC 1701, 1427.

EXTENSION OF THE PROGRAM

SEC. 1208. Section 409 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by striking out "1977." and inserting in lieu thereof the following: "1981. New spending authority provided for title I of this Act by the amendment to this section made by the Food and Agriculture Act of 1977 shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts.".

7 USC 1736c.

USE o r NONPRICE-SUPPORTED COMMODITIES UNDER PUBLIC LAW 4 8 0

SEC. 1209. I t is the sense of Congress that there be no discrimination 7 USC 1691 note, between "price-supported" and "nonprice-supported" commodities in the programing of commodities under the Agricultural Trade Devel7 USC 1691 et opment and Assistance Act of 1954, as amended (Public Law 480). seq. SPECIAL TASK FORCE ON THE OPERATION OF PUBLIC LAW 4 8 0

SEC. 1210. (a) It is the sense of Congress that attention be given 7 USC 1691 note. to handling, storage, transportation, and administrative procedures in order to make improvements in the operation of the Agricultural

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 9 1 STAT. 958

7 USC 1691 et seq. Appointment. Review and report.

Report to Congress. Legislative recommendations.

PUBLIC LAW 9 5 - 1 1 3 — S E P T. 29, 1977 Trade Development and Assistance Act of 1954, as amended (Public Law 480). Toward this objective, the Secretary of Agriculture shall appoint a special task force to review and report upon the administration of the Act. (b) Such review shall include, but not be limited to, organizational arrangements for the administration of Public Law 480, or parts thereof, title I allocation criteria and procedures, quality control, including handling and storage through the first stage of distribution in the recipient country, and regulation of businesses and organizations to which services are contracted under Public Law 480. (c) Not later than eighteen months following enactment of this Act, the Secretary of Agriculture shall transmit to Congress the report of such task force, along with administrative actions the Secretary has taken or intends to take as a result of such report, and recommendations, if any, for legislative changes. TITLE XIII—FOOD STAMP AND COMMODITY DISTRIBUTION PROGRAMS FOOD STAMP ACT OF 19 64 AMENDMENTS

Effective date. 7 USC 2011 note.

SEC. 1301. Effective October 1, 1977, the Food S t a m p Act of 1964, as amended, is amended to read as follows: SHORT TITLE

Food Stamp Act of 1977. 7 USC 2011 note. 7 USC 2011.

"SECTION 1. This Act may be cited as the 'Food S t a m p Act of 1977'. "DECLARATION OF POLICY

•

" SEC. 2. I t is hereby declared to be the policy of Congress, in order to promote the general welfare, to safeguard the health and well-being of the Nation's population by raising levels of nutrition among lowincome households. Congress hereby finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of such households. Congress further finds that increased utilization of food in establishing and, maintaining adequate national levels of nutrition will promote the distribution in a beneficial manner of the Nation's agricultural abundance and will strengthen the Nation's agricultural economy, as well as result in more orderly marketing and distribution of foods. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to obtain a more nutritious diet through normal channels of trade by increasing food purchasing power for all eligible households who apply for participation. "DEFINITIONS

7 USC 2012.

" SEC. 3. As used in this Act, the term: " (a) 'Allotment' means the total value of coupons a household is authorized to receive during each month, " (b) 'Authorization card' means the document issued by the State agency to an eligible household which shows the allotment the household is entitled to be issued. " (c) 'Certification period' means the period for which households shall be eligible to receive authorization cards. I n the case of a household all of whose members are included in a federally aided public

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 PUBLIC LAW 9 5 - 1 1 3 — S E P T. 29, 1977 assistance or general assistance grant, the period shall coincide with the period of such grant. I n the case of all other households the period shall be not less than three months: Provided, That such period may be u p to twelve months for any household consisting entirely of unemployable or elderly or primarily self-employed persons, or as short as circumstances require for those households as to which there is a substantial likelihood of frequent changes in income or household status, and for any household on initial certification, as determined by the Secretary. " (d) 'Coupon' means any coupon, stamp, or type of certificate issued pursuant to the provisions of this Act. " (e) 'Coupon issuer' means any office of the State agency or any person, partnership, corporation, organization, political subdivision, or other entity with which a State agency has contracted for, or to which it has delegated functional responsibility in connection with, the issuance of coupons to households. " (f) ' D r u g addiction or alcoholic treatment and rehabilitation program ' means any such program conducted by a private nonprofit organization or institution which is certified by the State agency or agencies designated by the Governor as responsible for the administration of the State's programs for alcoholics and d r u g addicts pursuant to Public Law 91-616 (Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Kehabilitation Act of 1970) and Public Law 92-255 ( D r u g Abuse Office and Treatment Act of 1972) as providing treatment that can lead to the rehabilitation of d r u g addicts or alcoholics. " (g) 'Food' means (1) any food or food product for home consumption except alcoholic beverages, tobacco, and hot foods or hot food products ready for immediate consumption other than those authorized pursuant to clauses (3), (4), and (5) of this subsection, (2) seeds and plants for use in gardens to produce food for the personal consumption of the eligible household, (3) in the case of those persons who are sixty years of age or over or who receive supplemental security income Isenefits under title X VI of the Social Security Act, and their spouses, meals prepared by and served in senior citizens' centers, apartment buildings occupied primarily by such persons, public or private nonprofit establishments (eating or otherwise) that feed such persons, private establishments that contract with the appropriate agency of the State to offer meals for such persons at concessional prices, and meals prepared for and served to residents of federally subsidized housing for the elderly, (4) in the case of persons sixty years of age or over and persons who are physically or mentally' handicapped or otherwise so disabled that they are unable adequately to prepare all of their meals, meals prepared for and delivered to them (and their spouses) at their home by a public or private nonprofit organization or by a private establishment that contracts with the appropriate State agency to perform such services at concessional prices, (5) in the case of narcotics addicts or alcoholics served by d r u g addiction or alcoholic treatment and rehabilitation programs, meals prepared and served under such programs, and (6) in the case of certain eligible households living in A laska. equipment for procuring food by h u n t i n g and fishing, such as nets, hooks, rods, harpoons, and knives (iaut not equipment for purposes of transportation, clothing, or shelter, and not firearms, ammunition, and explosives) if the Secretary determines that such households are located in an area of the State where it is extremely difficult to reach stores selling food and that such households depend to a substantial extent upon h u n t i n g and fishing for subsistence.

29-194 0

91 STAT. 959

42 USC 4551 "^te. 21 USC 1101 "'^t^-

42 USC 1381.

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 91 STAT. 960

,

^ ''

' '

^

PUBLIC LAW 95-113—SEPT. 29, 1977 "(h) 'Food stamp program' means the program operated pursuant to the provisions of this Act. "(i) 'Household' means (1) an individual who lives alone or who, while living with others, customarily purchases food and prepares meals for home consumption separate and apart from the others, or else pays compensation to the others for such meals, or (2) a group of individuals who live together and customarily purchase food and prepare meals together for home consumption or else live with others and pay compensation to the others for such meals. In neither event shall any individual or group of individuals constitute a household if they reside in an institution or boarding house. For the purposes of this subsection, residents of federally subsidized housing for the elderly and narcotics addicts or alcoholics who live under the supervision of a private nonprofit institution for the purpose of regular participation in a drug or alcoholic treatment program shall not be considered residents of institutions. "(j) 'Reservation' means the geographically defined area or areas over which a tribal organization (as that term is defined in section 3(p) of this Act) exercises governmental jurisdiction. "(k) 'Retail food store' means (1) an establishment or recognized department thereof or house-to-house trade route, over 50 per centum of whose food sales volume consists of staple food items for home preparation and consumption, such as meat, poultry, fish, bread, cereals, vegetables, fruits, dairy products, and the like, but not including accessory food items, such as coffee, tea, cocoa, carbonated and uncarbonated drinks, candy, condiments, and spices, (2) an establishment, organization or program referred to in subsections (g)(3), (4), and (5) of this section, (3) a store purveying the hunting and fishing equipment described in subsection (g)(6) of this section, and (4) any private nonprofit cooperative food purchasing venture, including those in which the members pay for food purchased prior to the receipt of such food. "(1) 'Secretary'means the Secretary of Agriculture. " (m) 'State' means the fifty States, the District of Columbia, Guam, Puerto Rico, the Virgin Islands of the United States, and the reservations of an Indian tribe whose tribal organization meets the requirements of this Act for participation as a State agency. "(n) 'State agency' means (1) the agency of State government, including the local offices thereof, which has the responsibility for the administration of the federally aided public assistance programs within such State, and in those States where such assistance programs are operated on a decentralized basis, the term shall include the counterpart local agencies administering such programs, and (2) the tribal organization of an Indian tribe determined by the Secretary to be capable of effectively administering a food distribution program under section 4(b) of this Act or a food stamp program under section 11(d) of this Act. " (o) 'Thrifty food plan' means the diet required to feed a family of four persons consisting of a man and a woman twenty through fiftyfour, a child six through eight, and a child nine through eleven years of age, determined in accordance with the Secretary's calculations. The cost of such diet shall be the basis for uniform allotments for all households regardless of their actual composition, except that the Secretary shall (1) make household-size adjustments taking into account economies of scale, (2) make cost adjustments in the thrifty food plan for Alaska and Hawaii to reflect the cost of food in those States, (3) make cost adjustments in the separate thrifty food plans for Guam, Puerto

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Rico, and the Virgin Islands of the United States to reflect the cost of food in those States, but not to exceed the cost of food in the fifty States and the District of Columbia, and (4) adjust the cost of such diet every January 1 and July 1 to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the six months ending the preceding September 30 and March 31, respectively. "(p) 'Tribal organization' means the recognized governing body of an Indian tribe (including the tribally recognized intertribal organization of such tribes), as the term 'Indian tribe' is defined in the Indian Self-Determination Act (25 U.S.C. 450b(b)). as well as any Indian 25 USC 450f tribe, band, or community holding a treaty with a State government. note. "ESTABLISHMENT OF THE FOOD STAMP PROGRAM

"SEC. 4. (a) Subject to the availability of funds appropriated under Administration. section 18 of this Act, the Secretary is authorized to formulate and 7 USC 2013. administer a food stamp program under which, at the request of the State agency, eligible households within the State shall be provided an opportunity to obtain a more nutritious diet through the issuance to them of an allotment. The coupons so received by such households eoupons. shall be used only to purchase food from retail food stores which have been approved for participation in the food stamp program. Coupons issued and used as provided in this Act shall be redeemable at face value by the Secretary through the facilities of the Treasury of the United States. " (b) In jurisdictions where the food stamp program is in operation, Distribution of there shall be no distribution of federally donated foods to households food. under the authority of any law, except that distribution may be made (1) on a temporary basis under programs authorized by law to meet disaster relief needs, or (2) for the purpose of the commodity supplemental food program. Distribution of commodities, with or without Request by tribal the food stamp program, shall also be made whenever a request for organization. concurrent or separate food program operations, respectively, is made by a tribal organization. In the event of distribution on all or part of an Indian reservation, the appropriate agency of the State government in the area involved shall be responsible for such distribution, except that, if the Secretary determines that the tribal organization is capable of effectively and efficiently administering such distribution, then such tribal organizations shall administer such distribution: Provided, That the Secretary shall not approve any plan for such distribution which permits any household on any Indian reservation to participate simultaneously in the food stamp program and the distribution of federally donated foods. The Secretary is authorized to Administrative pay such amounts for administrative costs of such distribution on costs. Indian reservations as the Secretary finds necessary for effective administration of such distribution by a State agency or tribal organization. "(c) The Secretary shall issue such regulations consistent with this Regulations. Act as the Secretary deems necessary or appropriate for the effective and efficient administration of the food stamp program and shall promulgate all such regulations in accordance with the procedures set forth in section 553 of title 5 of the United States Code. In addition, Statement, prior to issuing any regulation, the Secretary shall provide the Com- transmittal to mittee on Agriculture of the House of Representatives and the Com- congressional mittee on Agriculture, Nutrition, and Forestry of the Senate a copy of committees. the regulation with a detailed statement justifying it.

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PUBLIC LAW 95-113—SEPT. 29, 1977 "ELIGIBLE HOUSEHOLDS

7 USC 2014.

Standards.

State plans.

Income standards, guidelines.

"SEC. 5. (a) Participation in the food stamp program shall be limited to those households whose incomes and other financial resources, held singly or in joint ownership, are determined to be a substantial limiting factor in permitting them to obtain a more nutritious diet. Assistance under this program shall be furnished to all eligible households who make application for such participation. "(b) The Secretary shall establish uniform national standards of eligibility (other than the income standards for Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States established in accordance with subsections (c) and (e) of this section) for participation by households in the food stamp program in accordance with the provisions of this section. No plan of operation submitted by a State agency shall be approved unless the standards of eligibility meet those established by the Secretary, and no State agency shall impose any other standards of eligibility as a condition for participating in the program. "(c) The income standards of eligibility shall be the nonfarm income poverty guidelines prescribed by the Office of Management and Budget adjusted annually pursuant to section 625 of the Economic Opportunity Act of 1964, as amended (42 U.S.C. 2971d), for the forty-eight States and the District of Columbia, Alaska, Hawaii, Puerto Rico, the Virgin Islands of the United States, and Guam, respectively: Provided, That in no event shall the standards of eligibility for Puerto Rico, the Virgin Islands of the United States, or Guam exceed those in the fortyeight contiguous States: Provided further, That the income poverty guidelines for the period commencing July 1, 1978, shall be made as up to date as possible by multiplying the income poverty guidelines for 1977 by the change between the average 1977 Consumer Price Index and the Consumer Price Index for March 1978, utilizing the most current procedures which have been used by the Office of Management and Budget, and the income poverty guidelines for future periods shall be similarly adjusted. "(d) Household income for purposes of the food stamp program shall include all income from whatever source excluding only (1) any gain or benefit which is not in the form of money payable directly to a household, (2) any income in the certification period which is received too infrequently or iregularly to be reasonably anticipated, but not in excess of $30 in a quarter, (3) all educational loans on which payment is deferred, grants, scholarships, fellowships, veterans' educational benefits, and the like to the extent that they are used for tuition and mandatory school fees at an institution of higher education or school for the handicapped, (4) all loans other than educational loans on which repayment is deferred, (5) reimbursements which do not exceed expenses actually incurred and which do not represent a gain or benefit to the household, (6) moneys received and used for the care and maintenance of a third-party beneficiary who is not a household member, (7) income earned by a child who is a member of the household, who is a student, and who has not attained his eighteenth birthday, (8) moneys received in the form of nonrecurring lump-sum payments, including, but not limited to, income tax refunds, rebates, or credits, retroactive lump-sum social security or railroad retirement pension payments and retroactive lump-sum insurance settlements: Provided, That such payments shall be counted as resources, unless specifically excluded by other laws, (9) the cost of producing self-employed income, and (10) any income that any other law specifically excludes from consideration as income for the purpose of determining eligibility for the food stamp program.

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