from such crop of cotton shall be subject to marketing quotas, including cotton of such crop available for marketing prior to the beginning or after the ending of the marketing year which begins in the year when such crop of cotton is planted.

§ 722.66 Farm marketing quota and farm marketing excess.

(a) Farm marketing quota. The farm marketing quota for the current year's crop shall be that number of pounds of lint cotton of such crop produced on the farm less the amount of the farm marketing excess for such year's crop.

(b) Farm marketing excess. The county committee shall establish the farm marketing quota and farm marketing excess for each farm on which the acreage planted to cotton in the current year exceeds the farm allotment. The farm marketing excess for the current year's crop shall be the normal production of the acreage planted to cotton on the farm in excess of the farm allotment for such year's crop. For a farm having a zero allotment, or no allotment, the entire acreage planted to cotton shall be used in determining the farm marketing excess. Where it is established to the satisfaction of the county committee by any producer on the farm in accordance with § 722.68 that the actual production of cotton on the farm in the current year is less than the normal production of the acreage planted to cotton on the farm in such year, the farm marketing excess shall be adjusted downward to the amount by which such actual production exceeds the normal production of the farm allotment.

(7 U.S.C. 1375) [31 F.R. 6574, May 3, 1966, as amended by Amdt. 5, 33 F.R. 6701, May 2, 1968]

§ 722.67 Notice of farm marketing excess and farm marketing quota.

The county committee shall mail to the farm operator a written notice of farm marketing excess and farm marketing quota for any farm with a farm marketing excess. The notice shall contain substantially the following statement: "To all persons who as operator, landlord, tenant, or sharecropper, for the crop year shown above, are interested in the cotton described herein and produced on this farm." Notice so given shall constitute notice to all such persons. Such notice shall also contain a brief statement of the procedure whereby

application for review of the marketing quota may be made under section 363 of the Act. Such notice shall bear the actual or facsimile signature of a member of the county committee. The facsimile signature may be affixed by the county committeeman or an employee of the county office. A copy of each notice containing a notation thereon of the date of mailing the notice to the operator of the farm shall be kept among the permanent records of the county committee and, upon request, a copy thereof, duly certified as a true and correct copy shall be furnished without charge to any person who as operator, landlord, tenant, or sharecropper, is interested in the cotton produced in the current year on the farm for which the notice is given.

§ 722.68 Farm marketing excess adjust

ment.

(a) Application for adjustment in the farm marketing excess. Any producer having an interest in the cotton produced in the current year on a farm with a farm marketing excess may apply in writing to the county committee for a downward adjustment of the farm marketing excess on the basis of the amount of cotton produced in such year on the farm. Any such application shall be filed with the county committee not later than the earlier of (1) 60 days after harvest of such cotton crop is completed on the farm or by such later date as is approved by the State committee on the basis of a recommendation by the county committee and a showing that the producer's failure to apply for such adjustment within the 60-day period was due to circumstances beyond his control or (2) March 15 of the year following the year in which the cotton was planted. If the harvesting of cotton on the farm has not been completed by March 15 of the year following the year in which the cotton was planted but an application has been timely filed under this paragraph, the producer may request the county committee to provide for an estimate to be made of the amount of unharvested cotton on the farm in order that a final determination of the actual production on the farm for such year may be made. The county committee shall notify the applicant of the time and place of the hearing regarding his application. Unless application for an adjustment in the farm marketing excess is made within the period of time provided

for in this paragraph, the farm marketing excess as determined pursuant to § 722.66 shall be final as to the producers on the farm. Notwithstanding the foregoing provisions of this paragraph whenever the county committee determines that no cotton has been or will be produced on a farm with a farm marketing excess for the year for which such farm marketing excess is determined, the county committee may adjust the farm marketing excess and notify the operator of such adjustment, as provided in paragraph (b) of this section.

(b) County committee action on an application for adjustment in the farm marketing excess. The county committee shall consider each application on the basis of facts known by or made available to it and on the basis of such evidence as may be presented to it by the applicant. The cotton acreage on the farm for the crop year in question shall be determined by official measurement, or such other method of ascertaining acreage as may be authorized for the farm under section 374(a) of the act (79 Stat. 1210), before the county committee approves a determination of the actual production of cotton on the farm. The actual production of cotton in such crop year on any farm shall be determined in view of the relevant facts, including the acreage planted to cotton in such crop year on the farm, the past production on the farm, the actual yields per acre in such crop year for other farms in the community which are similar with regard to farming practices followed, type of soil and productivity; the harvesting, ginning and sales of the cotton produced on the farm in such crop year; and weather conditions and other factors in such crop year affecting the production of cotton on the farm and in the locality in which the farm is situated. In the consideration of any application for adjustment in the farm marketing excess the producer shall have the burden of proof. The evidence presented by the applicant may be in the form of written statements or other documentary evidence or of oral testimony in a hearing before the county committee during its consideration of the application. In order to expedite the consideration of applications, the county committee shall receive, in advance of the time fixed for consideration of the application, any written statement or documentary evidence offered by or on behalf of the applicant, and the application may be dis

posed of upon the basis of such statement or evidence, together with any other information bearing on or establishing the facts, which is available to the county committee, unless the applicant appears before the county committee at the time fixed for consideration of the application and requests a hearing for the purpose of offering additional documentary evidence or oral testimony, in support of the application. Every such hearing shall be open to the public. The county committee shall make its determination in connection with each application not later than 5 calendar days next succeeding the day on which the consideration of the application was concluded. The determination of the county committee shall be in writing and shall contain (1) a concise statement of the grounds upon which the applicant sought an adjustment in the amount of the farm marketing excess, (2) a concise statement of the findings of the county committee upon the question of fact and (3) the determination of the county committee as to the farm marketing quota, the actual production of cotton on the farm, the farm marketing excess, and the penalty due on the farm marketing excess. The determination made by the county committee under this paragraph shall be subject to approval by a representative of the State committee. A notice showing the result of the determination made as aforesaid, shall be mailed to the operator of the farm and also to the applicant if he is not such operator.

(c) Application for adjustment in the farm marketing excess in cases where the initial notice of farm marketing excess mailed after 30 days prior to expiration of filing period established under paragraph (a) of this section. Notwithstanding the provisions of paragraph (a) of this section, in any case where the initial notice of farm marketing excess is mailed to the farm operator any time after a date which is 30 days prior to the expiration date for filing application for the crop year under paragraph (a) of this section, any producer having any interest in the cotton produced on the farm in such crop year may apply in writing to the county committee for a downward adjustment in the amount of the farm marketing excess on the basis of the amount of cotton produced in such crop year on the farm. Any such application shall be filed with the county committee not later than 30 days after

the date of mailing of such notice of farm marketing excess to the farm operator. The county committee shall keep a record of each application so made and the date thereof. The county committee shall notify the applicant of the time and place of the hearing regarding his application. Unless application for an adjustment in the farm marketing excess in cases arising under this paragraph is made within the period of time provided for in this paragraph, the farm marketing excess as determined pursuant to § 722.66 shall be final as to the producers on the farm. The procedures provided in paragraph (b) of this section shall be followed to the extent practicable in cases arising under this paragraph.

§ 722.69

Publication of the farm allotment, projected yield, marketing quota, and marketing excess.

A record of the farm allotment, projected yield, farm marketing quota, and farm marketing excess established for farms in the county shall be kept readily available in the office of the county committee for public inspection for a period of not less than 30 calendar days. At the end of such period, the records shall be filed in the office of the county committee and remain readily available for further public inspection. Copies of notices, or other compilations upon which the pertinent data are shown may be used for this purpose.

§ 722.70 Marketing quotas for upland cotton and extra long staple cotton not interchangeable, special situations for transfer of marketing quotas between farms.

A farm marketing quota for cotton established for a farm may not be assigned or otherwise transferred in whole or in part to any other farm except in the following special situations: (a) Release and reapportionment of cotton allotments under section 344 (m) (2) of the act; (b) natural disaster transfers of cotton allotments under section 344(n) of the act; (c) transfers of pooled cotton allotments under section 378 of the act; (d) transfers of allotments for upland cotton only under section 344a of the act; (e) exchange of rice allotments for upland cotton only under subsection (h) of section 344a of the act; and (f) transfers of cotton allotments under 7 U.S.C. 1305. Under sections 345 and 347 of the act, farm marketing quotas

are established for each crop year for both upland and extra long staple cotton. The farm marketing quota established for a crop of upland cotton may not be used in whole or in part in connection with the marketing of extra long staple cotton nor may the farm marketing quota established for a crop of extra long staple cotton be used in whole or in part in connection with the marketing of upland cotton.

§ 722.71

Successors-in-interest.

Any person who succeeds to the interest of a producer in a farm, or in a cotton crop produced on a farm, for which a farm marketing quota and farm marketing excess were established, including a farm on which cotton was planted in a crop year but for which a farm cotton allotment was not established for such crop year, shall, to the same extent as his predecessor, be entitled to all the rights and privileges incident to such marketing quota and marketing excess and be subject to the penalty on the farm marketing excess and to the lien on the entire crop of cotton and to the restrictions on the marketing of cotton. However, a successor to a deceased producer shall not be personally liable for an unpaid marketing quota penalty incurred by the producer prior to his death, but a suit may be brought to enforce the lien for the penalty against the cotton. § 722.72

Review of quotas.

station or (b) operated by a person under a written agreement with a publicly owned agricultural experiment station, approved by the State committee, whereby the experiment station bears the costs and risks of production of the cotton and the proceeds of the crop inure to the benefit of the experiment station. Farm marketing quotas shall apply to any other cotton produced by a publicly owned agricultural experiment station which is not produced for experimental purposes only.

§ 722.74 Determination of planted acreage.

The county committee shall provide for determining the acreage planted to cotton on farms in accordance with Part 718 of this chapter, as amended.

IDENTIFICATION OF COTTON

Each producer of cotton shall, at the time he markets any cotton, identify the cotton to the buyer as being (a) not subject to the penalty provided under this subpart and not subject to the lien for such penalty, or (b) subject to the penalty provided under this subpart and subject to the lien for such penalty. The producer shall furnish to the buyer in connection with such identification of the cotton the following:

(1) Name and address of producer.

(2) County and State where farm on which the cotton was produced is located. (3) Farm number.

(4) Whether the cotton is current year's crop or carryover cotton.

§ 722.76 Identification of cotton by buyer.

Each buyer of cotton from a producer shall obtain from such producer the identification of cotton required under § 722.75. In addition, before acquiring any cotton, each buyer of cotton shall obtain from the county committee of each county where the cotton being offered to him was produced, or from the State executive director, a list showing the names and addresses of producers and the farm number for each farm in the county on which such producers are subject to the penalty for the current year's crop and any unpaid penalty for a previous crop. If there are no farms in such county subject to the penalty for the current year's crop or a previous crop, the list shall so state. The county

committee or the State executive director shall furnish such list to any buyer of cotton upon request. The buyer shall determine whether the name of the producer and farm number furnished him by the producer who identifies cotton under § 722.75 appear on the list obtained for the applicable county. If the name of the producer and farm number so furnished appear on such list, or if the producer identifies the cotton as subject to penalty, the buyer shall take the cotton as subject to penalty at the applicable rate and to the lien for the penalty.

§ 722.77 Marketing of penalty free cot

ton.

Each buyer of cotton which is identified in accordance with §§ 722.75 and 722.76 as not subject to the penalty provided under this subpart and not subject to the lien for such penalty, may purchase the cotton so identified without collection, deduction, or payment of the penalty.

§ 722.78 Marketing of penalty cotton.

or

Each buyer of cotton which is identified in accordance with § 722.75 § 722.76 as being subject to the penalty and the lien for such penalty shall take such cotton as subject to penalty at the applicable rate and to the lien for the penalty and such buyer shall collect the required penalty or deduct the required penalty from the purchase price of the cotton and remit the amount thereof to the county committee. In addition, each buyer of cotton shall collect penalty at the applicable rate or deduct such penalty from the purchase price of the cotton and remit the amount thereof to the county committee in each case where such buyer has not obtained the applicable list as required under § 722.76. PENALTY

§ 722.79 Rate of penalty.

(a) Upland cotton: The rate of penalty for upland lint cotton is 50 percent of the parity price for upland cotton as of June 15 of the year in which the cotton is planted, as provided in section 346 (a) of the act.

(b) Extra long staple cotton: The rate of penalty for extra long staple lint cotton is the higher of 50 percent of the parity price for ELS cotton as of June 15 of the year in which the ELS cotton is planted, or 50 percent of the support price for such crop of ELS cotton as pro

Until

(b) Extra long staple cotton. the penalty on any farm marketing excess of ELS cotton for any crop year is paid, all ELS cotton produced on the farm in such crop year and marketed shall be subject to the penalty at the rate prescribed in § 722.79 (b) for ELS cotton and a lien on such entire crop of ELS cotton produced on the farm shall be in effect in favor of the United States. Notwithstanding the definition of ELS cotton in § 722.64 (b) (10), the lien in favor of the United States under this paragraph applies to the varieties of cotton named in such definition wherever grown in the United States.

§ 722.81 Interest on unremitted penalty.

The person liable for the payment or collection of the penalty shall be liable also for interest on the amount of penalty which is not remitted in accordance with § 722.78 at the rate of 6 percent per annum from the final date for remitting the penalty until the date such penalty is remitted. The computation of interest on any penalty due shall be made beginning with the day following the final date for remitting the penalty. § 722.82 Payment of penalty by producers.

(a) Producer liable for payment of penalty. Each producer having an interest in the crop of cotton on any farm produced in a crop year for which a farm marketing excess has been determined shall be liable for the entire amount of the penalty on the farm marketing excess. The amount of the penalty which any producer shall pay shall nevertheless be reduced by the amount of the penalty which is paid by another producer or a buyer of cotton produced on the farm.

(b) Time when penalty becomes due and payable. The farm marketing excess for a farm shall be regarded as available for marketing and the penalty thereon shall become due at the time any cotton produced on the farm is harvested or is available for harvest. The amount of the penalty on the farm marketing excess for any farm shall be remitted on the date it become due or not later than March 15 of the year following the year in which the cotton was planted, even though the cotton is not harvested: Provided, That the penalty on any bale or lot of cotton marketed from a farm for which the penalty on the farm marketing excess has not been paid shall be due on the date of such marketing and shall be remitted not later than 7 calendar days next succeeding the end of the calendar week in which the cotton was marketed.

(c) Time when penalty becomes due in cases where the initial notice of farm marketing quota and farm marketing excess mailed after 30 days prior to time when penalty would become due under paragraph (b) of this section. Notwithstanding the provisions of paragraph (b) of this section, in any case where the initial notice of farm marketing quota and farm marketing excess is mailed to the farm operator any time after a date which is 30 days prior to the time when penalty would become due under paragraph (b) of this section, the penalty on the farm marketing excess shall become due 30 days after mailing of such notice of farm marketing quota and farm marketing excess to the farm operator.

§ 722.83

Payment of penalty by buyers.

(a) Buyers liable for payment of penalty. Each person within the United States who buys or acquires from the producer any cotton subject to the lien for the penalty shall be liable for and shall pay the amount of the penalty on each pound thereof in satisfaction of the lien thereon.

(b) Time when penalty becomes due. The penalty to be paid by any buyer pursuant to paragraph (a) of this section shall become due at the time the cotton is marketed and shall be remitted not later than 7 calendar days next succeeding the end of the calendar week in which the cotton was marketed. Cotton shall be deemed to be sold when either title to or actual or constructive possession of the cotton is delivered by or on behalf