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Sec. 1434.42 Maturity of loans. 1434.43 Support rates. 1434.44 Discounts.

cheddar cheese shall be U.S. Grade A or higher.

(d) The products shall be manufactured in the United States from milk produced in the United States, and shall be located in the United States and shall not have been previously owned by CCC. Purchases will be made in carlot weights specified in the announcements. Grades and weights shall be evidenced by inspection certificates issued by the U.S. Department of Agriculture. (Sec. 4(d), 62 Stat. 1070, as amended; 15 U.S.C. 714b(d)) [35 F.R. 6063, Apr. 14, 1970]

PART 1434-HONEY Subpart-Honey Price Support Regulations for

1970 and Subsequent Crops Sec. 1434.1 General statement. 1434.2 Administration. 1434.3 Eligible producers. 1434.4 Eligibility requirements. 1434.5 Miscellaneous requirements. 1434.6 Availability, disbursement, and

maturity of loans. 1434.7 Eligibile honey. 1434.8 Ineligible honey. 1434.9 Approved storage. 1434.10 Warehouse receipts. 1434.11 Warehouse charges and packaging. 1434.12 Applicable forms. 1434.13 Liens. 1434.14 Fees and charges. 1434.15 Setoffs. 1434.16 Determination of quantity. 1434.17 Determination of quality. 1434.18 Interest rate. 1434.19 Transfer of producer's interest pro

hibited. 1434.20 Insurance. 1434.21 Loss or damage. 1434.22 Personal liability of the producer. 1434.23 Quantity for warehouse storage loan. 1434.24 Quantity for farm storage loan. 1434.25 Release of the honey under loan. 1434.26 Liquidation of farm storage loans. 1434.27 Liquidation of warehouse storage

loans. 1434.28 Purchases from producers. 1434.29 Settlement. 1434.30 Foreclosure. 1434.31 Charges not to be assumed by CCC. 1434.32 Handling payments and collections

not exceeding $3. 1434.33 Death, incompetency, or disappear

ance. 1434.34 Definitions. 1434.35 ASCS Commodity Office and Data

Processing Center. Subpart—1970 Crop Honey Loan and Purchase

Program 1434.40 Purpose. 1434.41 Availability.

Subpart-Standards for Approval of Warehouses

for Extracted Honey 1434.50 General statement and adminis

tration. 1434.51 Basic standards. 1434.52 Bonding requirements. 1434.53 Examination of warehouses. 1434.54 Exceptions. 1434.55 Approval of warehouses; requests

for reconsideration. 1434.56 Exemption from requirements. Subpart-Honey Price Support Regu

lations for 1970 and Subsequent Crops AUTHORITY: The provisions of this subpart issued under sec. 4, 62 Stat. 1070, as amended; 15 U.S.C. 714b. Interpret or apply sec. 5, 62 Stat. 1072, secs. 201, 401, 63 Stat. 1052, 1054; 15 U.S.C. 714c; 7 U.S.C. 1446, 1421.

SOURCE: The provisions of this subpart appear at 35 F.R. 11773, July 23, 1970; 35 F.R. 13077, Aug. 18, 1970, unless otherwise noted. § 1434.1 General statement.

This subpart contains the regulations which set forth the requirements with respect to price support for the 1970 and each subsequent crop of extracted honey for which a price support program is authorized. Price support will be made available through loans on and purchases of eligible honey. Farm storage loans will be evidenced by notes and secured by chattel mortgages. Warehouse storage loans will be evidenced by notes and security agreements and secured by the pledge of warehouse receipts representing eligible honey in approved warehouse storage. The producer may also sell to CCC any or all of his eligible honey which is not security for a price support loan by delivering the honey to CCC. As used in this subpart “CCC” means the Commodity Credit Corporation and “ASCS” means the Agricultural Stabilization and Conservation Service of the U.S. Department of Agriculture. § 1434.2 Administration.

(a) Responsibility. The Commodity Programs Division, ASCS, will administer this subpart under the general direction and supervision of the Deputy Administrator, State and County Operations, in accordance with program provisions and policy determined by the CCC Board of Directors and the Executive Vice Presi

dent, CCC. In the field, this subpart will be administered by the various Agricultural Stabilization and Conservation State and County Committees (hereinafter severally called State Committee and county committee), ASCS Commodity Office and the ASCS Data Processing Center.

(b) Documents. Any member of the county committee, the county executive director, or other employee of the ASCS county office designated by the county executive director to act in his behalf is authorized to approve documents in accordance with the provisions of this program except where otherwise specified in this subpart. Any such designation shall be in writing and a copy thereof shall be on file in the county office.

(c) Limitation of authority. The authority conferred by this subpart to administer the honey price support program does not include authority to modify or waive any of the provisions of this subpart.

(d) State committee. The State committee may take any action which is authorized or required by this subpart to be taken by the county committee but which has not been taken by such committee. The State committee may also (1) correct or require a county committee to correct any action which was taken by such county committee but which is not in accordance with this subpart or (2) require a county committee to withhold taking any action which is not in accordance with this subpart.

(e) Executive Vice President, CCC. No delegation of authority herein shall preclude the Executive Vice President, CCC, or his designee, from determining any question arising under this subpart or from reversing or modifying any determination made pursuant to a delegation of authority in this subpart. $ 1434.3 Eligible producers.

(a) Producer. An eligible producer shall be a person (i.e., an individual, partnership, association, corporation, estate, trust, or other legal entity) who extracts honey produced by bees owned by him.

(b) Estates and trusts. A receiver of of an insolvent debtor's estate, an executor or an administrator of a deceased person's estate, a guardian of an estate of a ward or an incompetent person, and trustee of a trust estate will be considered to represent the insolvent debtor, the

deceased person, the ward or incompetent, and the beneficiary of a trust respectively, and the production of the receiver, executor, administrator, guardian, or trustee shall be considered to be the production of the person he represents. Loan or purchase documents executed by such legal representative will be accepted by CCC only if they are legally valid and such person has the authority to sign the applicable documents.

(c) Minors. A minor who is otherwise an eligible producer shall be eligible for price support only if he meets one of the following requirements: (1) The right of majority has been conferred on him by court proceedings or statute; (2) a guardian has been appointed to manage his property and the applicable price support documents are signed by the guardian; (3) any note signed by the minor is cosigned by a financially responsible person; or (4) a bond is furnished under which a surety guarantees to protect CCC from any loss incurred for which the minor would be liable had he been an adult.

(d) Approved cooperative. A cooperative marketing association which is approved by the Executive Vice President, CCC, pursuant to Part 1425 of this chapter, to obtain price support on a crop of extracted honey, may obtain price support on the eligible production of such crop of the honey on behalf of its members. The term “producer" as used in this subpart and on applicable price support forms shall refer both to an eligible producer as defined in paragraphs (a), (b), and (c) of this section and to such

approved cooperative marketing association.

(e) Approval by county committee. If a producer has been convicted of a criminal act or has made a misrepresentation in connection with any price support program or has unlawfully disposed of any loan collateral or if the county committee has had difficulty in settling a loan with the producer because of his failure to protect properly the mortgaged honey or for other reasons, the producer may be denied price support until the county committee is satisfied that CCC will be fully protected against any possible loss other than loss assumed by CCC under the regulations in this subpart.

(f) Joint loans. Two or more eligible producers may obtain a joint loan on eligible honey produced and extracted


by them if stored in the same farm stor- trol over the production, handling or age facility or, in the case of a warehouse disposition of the honey. If price supstorage loan, if the warehouse receipt port is made available through an is issued jointly to such producers. Each approved cooperative marketing associaproducer who is a party to a joint loan tion, the beneficial interest in the honey will be jointly and severally responsible must always have been in the producer and liable for the breach of the obliga- members who delivered the honey to the tions set forth in the loan documents and approved cooperative or its member coin the applicable regulations in this operatives or must always have been subpart.

in them and former producers whom (g) Warehouse storage loans to ware- they succeeded before the honey was housemen. Except as provided in $1434.- extracted, except as provided in the case 10, warehouse storage loans may be made of heirs of a deceased producer. Honey to a warehouseman who in his capacity acquired by a cooperative marketing asas a producer tenders to CCC warehouse sociation shall not be eligible for price receipts issued by him on honey produced support if the producer members who and extracted by him only in those delivered the honey to the cooperative States where the issuance and pledge of or its member cooperatives do not resuch warehouse receipts is valid under tain the right to share in the proceeds State law.

from the marketing of the honey as pro(35 F.R. 11773, July 23, 1970, as amended by

vided in Part 1425 of this chapter. Amdt. 1, 35 F.R. 19567, Dec. 24, 1970)

(c) Succession of interest. To meet the § 1434.4 Eligibility requirements.

requirements of succession to a former

producer, the rights, responsibilities and (a) Requesting price support. To ob

interest of the former producer with retain price support on eligible honey, a spect to ownership of the bees which producer must request a loan on, or produced the honey shall have been subnotify the ASCS county office of his

stantially assumed by the person claimintention to sell his eligible commodity

ing succession. Mere purchase of the by completing a Purchase Agreement

honey prior to extraction or its inheri(Form CCC-614), no later than the date

tance without acquisition of any addispecified in the crop year supplement. tional interest in the production unit

(b) Beneficial interest. To be eligible shall not constitute succession. for price support, the beneficial interest (d) Doubtful cases. Any producer or in the honey must be in the producer cooperative in doubt as to whether his tendering it as security for a loan or for interest in the honey complies with the purchase and must have always been in requirements of this section should, behim or in him and a former producer fore requesting price support, make whom he succeeded as owner of the bees available to the county committee all before the honey was extracted, except pertinent information which will permit that heirs who (1) succeed to the bene- a determination to be made by CCC. ficial interest of a deceased producer, (2) assume the decedent's obligation un

§ 1434.5 Miscellaneous requirements. der a loan if a loan has already been (a) Security. The county office shall obtained, and (3) assure continued safe file or record as required by State law storage of the honey, if under farm all chattel mortgages which cover honey storage loan, shall be eligible for price under loan and stored on leased premises, support as producers whether such suc- or in leased bulk tanks, described in cession occurs before or after extraction § 1434.9(a) (1). The cost of filing and reof the honey. A producer shall be con- cording shall be for the account of CCC. sidered to have transferred the bene- (b) Revenue stamps. Farm Storage ficial interest to a quantity of honey Note, Chattel Mortgage and Security when the producer enters into a contract Agreements, and Warehouse Storage or otherwise becomes obligated to deliver Note and Security Agreements, must such quantity of honey to a person who have State and documentary revenue does not meet the requirements for suc- stamps affixed thereto where required cession of interest. A simple option to by law. purchase the honey for a reasonable (c) Restrictions in use of agents. A consideration shall not be considered a producer shall not delegate to any pertransfer of a beneficial interest unless son (or his representative) who has any the option holder also exercises some con- interest in storing, processing, or mer

chandising honey authority to exercise plement thereto in order to be eligible on behalf of the producer any of the for a loan or for delivery under a loan producer's rights or privileges under this or purchase. Honey described in § 1434.8 program or any note, chattel mortgage is not eligible. and security agreement, or other instru- (a) Production. The honey must have ment executed in obtaining price support been produced and extracted in the under this program, unless the person United States by an eligible producer (or his representative) to whom author- during the calendar year for which price ity is delegated is serving in the capacity support is requested. of a farm manager for the producer. Any (b) Floral source. Honey from the delegation of authority given in violation floral sources listed below and honey of this paragraph shall be without force having similar flavor shall be eligible for and effect and shall not be recognized by price support and shall be classed as CCC.

follows: & 1434.6 Availability, disbursement, and

(1) Table honey. Table honey means maturity of loans.

honey having a good flavor of the pre

dominant fioral source which can be (a) Where to request price support. readily marketed for table use in all A producer shall request price support parts of the country. Such sources inat the local ASCS county office of the

clude alfalfa, bird's-foot trefoil, blackcounty in which the honey is stored. An

berry, brazil brush, catsclaw, clover, cotapproved cooperative marketing associa- ton, firewood, gallberry, huajillo, lima tion must request price support at the bean, mesquite, orange, raspberry, sage, ASCS county office for the county in

saw palmetto, soybean, sourwood, star which the principal office of the coopera- thistle, sweetclover, tupelo, vetch, westtive is located unless the State commit

ern wild buckwheat, wild alfalfa, and tee designates some other ASCS county

similar mild flavors, or blends of mild office. In the case of an approved co- flavored honeys, as determined by the operative marketing association having

Director, Commodity Programs Division, operations in two or more States, re

ASCS. quests may be made at the county office

(2) Nontable honey. Nontable honey for the county in which its principal

means honey having a predominant office for each such State is located.

flavor of limited acceptability for table (b) Availability and maturity date.

use but which may be considered suitable The availability and maturity date ap- for table use in areas in which it is proplicable to loans and purchases will be

duced. Such honeys include those with specified in the annual crop year supple

a predominant flavor of aster, athel, ment to the regulations in this subpart,

avocado, buckwheat (except western except that whenever the final date of availability or the maturity date falls

wild buckwheat), cabbage palmetto, on a nonworkday for ASCS county offices,

dandelion, eucalyptus, goldenrod, heartthe applicable final date shall be ex

sease (smartweed), horsemint, tended to include the next work day.

grove, manzanita, mint, partridge pea, (c) Disbursements of loans. Disburse

rattan vine, safilower, salt cedar (Tamament of loans will be made to producers rix Gallica), spanish needle, spikeweed, by means of drafts drawn on CCC or by titi-toyon (Christmas berry), tulip-popcredit to the producers account. The lar, wild cherry, and similarly flavored producer shall not present the loan docu- honey or blends of such honeys, as determent for disbursement unless the honey mined by the Director, Commodity Procovered by the mortgage or pledge has

grams Division, ASCS. been extracted and is in approved stor

(c) Containers. The honey must be age. If the honey was not either in exist

packed in metal containers of a capacity extracted at the time of disbursement, the total amount disbursed

of not less than 5 gallons or greater than under the loan shall be refunded

70 gallons and of a style used in normal promptly by the producer.

commercial practice in the honey indus

try or stored in bulk tanks described in § 1434.7 Eligible honey.

subparagraph (3) of this paragraph. All Honey must meet the requirements of containers and tanks shall meet the rethis section in addition to other appli- quirements of the Food, Drug, and cable eligibility requirements of this Cosmetic Act and regulations issued subpart and the applicable annual sup- thereunder.




(1) Five-gallon. The 5-gallon con- (c) Containers. Honey packed in steel tainers must contain approximately 60 drums which have removable liners of pounds of honey and shall be new, clean, polyethylene, or other materials is not sound, uncased, and free from apprecia- eligible for price support regardless ble dents and rust. The handle of each of whether it meets other eligibility container must be firm and strong requirements. enough to permit carrying the filled can.

§ 1434.9 Approved storage. The cover and can opening must not be damaged in any way that will prevent a (a) Loans. Loans will be made only tight seal. Cans which are punctured or

on honey in approved storage as defined have been punctured and resealed by

in this section. soldering will not be acceptable.

(1) Farm storage. Approved farm (2) Steel drums. Steel drums must be storage shall consist of a storage strucopen-end type, filled to their rated ca- ture located on or off the farm (excludpacities and be new, or used drums which ing public or commercial warehouses) have been reconditioned inside and out- which is determined by the county comside. They must be clean, treated to pre

mittee to be under the control of the vent rusting and fitted with gaskets producer and to afford safe storage for which provide a tight seal.

honey. Producers may also obtain loans (3) Tanks. Tanks used for bulk stor- on honey packaged in eligible containage shall be stainless steel or aluminum ers and stored on leased space in facilior steel tanks coated on the inside with ties owned by third parties in which the a material which, (i) complies with the

honey of more than one person is stored Food, Drug, and Cosmetic Act and reg- if the honey on such leased space to be ulations issued thereunder, (ii) is suit- placed under loan is segregated from all able for use in contact with honey, and

other honey, is identified by markings (iii) shall not adulterate the honey, im

on each container of honey, and if the part any off color, odor, taste, or any

segregated quantity of honey is identiother characteristics which would other- fied by a lot number and the name of wise change the value of the honey stored

the producer as owner thereof. In additherein. Bulk tanks shall have equipment

tion, producers may obtain loans on available for liquifying crystallized

honey stored in bulk tanks owned by honey.

others if use of the bulk tank is obtained (d) Moisture requirements for loan.

by a lease between the person using the "To be eligible for a warehouse storage

bulk tank and the owner thereof. A copy loan, honey must not contain in excess

of the lease shall be obtained by the of 18.5 percent moisture.

county office before a loan is made. The

lease shall authorize the producer and $ 1434.8 Ineligible honey.

any person having an interest in the (a) Floral source. Honey from the fol- honey to enter on the premises to inlowing floral sources is not eligible for spect and examine the honey and shall price support regardless of whether it permit a reasonable time to such permeets other eligibility requirements: sons to remove the honey from the Andromeda, bitterweed, broomweed, premises on its termination. Except as cajeput, chinquapin, dog fennel, desert provided in § 1434.3(f) in the case of hollyhock, gumweed, mescal, onion, joint loans, only the producer lessee may prickly pear, prune, queen's delight, rab- obtain price support on such bulk stored bit brush, snowbrush (Ceanothus), snow

honey and only eligible honey belonging on-the-mountain, tarweed, and similar

to the producer lessee may be stored in

the bulk tanks. The chattel mortgage objectionably flavored honey or blends of honey as determined by the Director,

and security agreement shall cover all

the honey stored in the bulk tank. Commodity Programs Division, ASCS.

(2) Warehouse storage. Approved If any blends of honey contain such in

warehouse storage or an approved wareeligible honey, the lot as a whole shall house shall consist of a public warebe considered ineligible for loan or de- house for which a CCC Honey Storage livery for purchase.

Contract is in effect and which is ap(b) Contamination or poisonous sub- proved for price support purposes or a stances. Honey which is contaminated warehouse operated by an approved coor which contains chemicals or other operative as defined in § 1434.3(d) and substances poisonous to man or animals licensed to store honey under the United is not eligible for price support.

States Warehouse Act.

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