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]

1434.51

1434.52

1434.53

1434.54 1434.55

Basic standards.

Bonding requirements.

Examination of warehouses.
Exceptions.

Approval of warehouses; requests
for reconsideration.

1434.56 Exemption from requirements. Subpart-Honey Price Support Regulations 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.

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 an 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 storage facility or, in the case of a warehouse storage loan, if the warehouse receipt is issued jointly to such producers. Each producer who is a party to a joint loan will be jointly and severally responsible and liable for the breach of the obligations set forth in the loan documents and in the applicable regulations in this subpart.

(g) Warehouse storage loans to warehousemen. Except as provided in §1434.10, warehouse storage loans may be made to a warehouseman who in his capacity as a producer tenders to CCC warehouse receipts issued by him on honey produced and extracted by him only in those States where the issuance and pledge of such warehouse receipts is valid under State law.

[35 F.R. 11773, July 23, 1970, as amended by Amdt. 1, 35 F.R. 19567, Dec. 24, 1970] § 1434.4 Eligibility requirements.

(a) Requesting price support. To obtain price support on eligible honey, a producer must request a loan on, or notify the ASCS county office of his intention to sell his eligible commodity by completing a Purchase Agreement (Form CCC-614), no later than the date specified in the crop year supplement.

(b) Beneficial interest. To be eligible for price support, the beneficial interest in the honey must be in the producer tendering it as security for a loan or for purchase and must have always been in him or in him and a former producer whom he succeeded as owner of the bees before the honey was extracted, except that heirs who (1) succeed to the beneficial interest of a deceased producer, (2) assume the decedent's obligation under a loan if a loan has already been obtained, and (3) assure continued safe storage of the honey, if under farm storage loan, shall be eligible for price support as producers whether such succession occurs before or after extraction of the honey. A producer shall be considered to have transferred the beneficial interest to a quantity of honey when the producer enters into a contract or otherwise becomes obligated to deliver such quantity of honey to a person who does not meet the requirements for succession of interest. A simple option to purchase the honey for a reasonable consideration shall not be considered a transfer of a beneficial interest unless the option holder also exercises some con

trol over the production, handling or disposition of the honey. If price support is made available through an approved cooperative marketing association, the beneficial interest in the honey must always have been in the producer members who delivered the honey to the approved cooperative or its member cooperatives or must always have been in them and former producers whom they succeeded before the honey was extracted, except as provided in the case of heirs of a deceased producer. Honey acquired by a cooperative marketing association shall not be eligible for price support if the producer members who delivered the honey to the cooperative or its member cooperatives do not retain the right to share in the proceeds from the marketing of the honey as provided in Part 1425 of this chapter.

(c) Succession of interest. To meet the requirements of succession to a former producer, the rights, responsibilities and interest of the former producer with respect to ownership of the bees which produced the honey shall have been substantially assumed by the person claiming succession. Mere purchase of the honey prior to extraction or its inheritance without acquisition of any additional interest in the production unit shall not constitute succession.

(d) Doubtful cases. Any producer or cooperative in doubt as to whether his interest in the honey complies with the requirements of this section should, before requesting price support, make available to the county committee all pertinent information which will permit a determination to be made by CCC. § 1434.5 Miscellaneous requirements.

(a) Security. The county office shall file or record as required by State law all chattel mortgages which cover honey under loan and stored on leased premises, or in leased bulk tanks, described in § 1434.9(a) (1). The cost of filing and recording shall be for the account of CCC.

(b) Revenue stamps. Farm Storage Note, Chattel Mortgage and Security Agreements, and Warehouse Storage Note and Security Agreements, must have State and documentary revenue stamps affixed thereto where required by law.

(c) Restrictions in use of agents. A producer shall not delegate to any person (or his representative) who has any interest in storing, processing, or mer

chandising honey authority to exercise on behalf of the producer any of the producer's rights or privileges under this program or any note, chattel mortgage and security agreement, or other instrument executed in obtaining price support under this program, unless the person (or his representative) to whom authority is delegated is serving in the capacity of a farm manager for the producer. Any delegation of authority given in violation of this paragraph shall be without force and effect and shall not be recognized by CCC.

§ 1434.6

Availability, disbursement, and maturity of loans.

(a) Where to request price support. A producer shall request price support at the local ASCS county office of the county in which the honey is stored. An approved cooperative marketing association must request price support at the ASCS county office for the county in which the principal office of the cooperative is located unless the State committee designates some other ASCS county office. In the case of an approved cooperative marketing association having operations in two or more States, requests may be made at the county office for the county in which its principal office for each such State is located.

(b) Availability and maturity date. The availability and maturity date applicable to loans and purchases will be specified in the annual crop year supplement to the regulations in this subpart, except that whenever the final date of availability or the maturity date falls on a nonworkday for ASCS county offices, the applicable final date shall be extended to include the next work day.

(c) Disbursements of loans. Disbursement of loans will be made to producers by means of drafts drawn on CCC or by credit to the producers account. The producer shall not present the loan document for disbursement unless the honey covered by the mortgage or pledge has been extracted and is in approved storage. If the honey was not either in existence or extracted at the time of disbursement, the total amount disbursed under the loan shall be refunded promptly by the producer.

§ 1434.7 Eligible honey.

Honey must meet the requirements of this section in addition to other applicable eligibility requirements of this subpart and the applicable annual sup

plement thereto in order to be eligible for a loan or for delivery under a loan or purchase. Honey described in § 1434.8 is not eligible.

(a) Production. The honey must have been produced and extracted in the United States by an eligible producer during the calendar year for which price support is requested.

(b) Floral source. Honey from the floral sources listed below and honey having similar flavor shall be eligible for price support and shall be classed as follows:

(1) Table honey. Table honey means honey having a good flavor of the predominant floral source which can be readily marketed for table use in all parts of the country. Such sources include alfalfa, bird's-foot trefoil, blackberry, brazil brush, catsclaw, clover, cotton, firewood, gallberry, huajillo, lima bean, mesquite, orange, raspberry, sage, saw palmetto, soybean, sourwood, star thistle, sweetclover, tupelo, vetch, western wild buckwheat, wild alfalfa, and similar mild flavors, or blends of mild flavored honeys, as determined by the Director, Commodity Programs Division, ASCS.

(2) Nontable honey. Nontable honey means honey having a predominant flavor of limited acceptability for table use but which may be considered suitable for table use in areas in which it is produced. Such honeys include those with a predominant flavor of aster, athel, avocado, buckwheat (except western wild buckwheat), cabbage palmetto, dandelion, eucalyptus, goldenrod, heart(smartweed), horsemint, grove, manzanita, mint, partridge pea, rattan vine, safflower, salt cedar (Tamarix Gallica), spanish needle, spikeweed, titi-toyon (Christmas berry), tulip-poplar, wild cherry, and similarly flavored honey or blends of such honeys, as determined by the Director, Commodity Programs Division, ASCS.

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(c) Containers. The honey must be packed in metal containers of a capacity of not less than 5 gallons or greater than 70 gallons and of a style used in normal commercial practice in the honey industry or stored in bulk tanks described in subparagraph (3) of this paragraph. All containers and tanks shall meet the requirements of the Food, Drug, and Cosmetic Act and regulations issued thereunder.

(1) Five-gallon. The 5-gallon containers must contain approximately 60 pounds of honey and shall be new, clean, sound, uncased, and free from appreciable dents and rust. The handle of each container must be firm and strong enough to permit carrying the filled can. The cover and can opening must not be damaged in any way that will prevent a tight seal. Cans which are punctured or have been punctured and resealed by soldering will not be acceptable.

(2) Steel drums. Steel drums must be open-end type, filled to their rated capacities and be new, or used drums which have been reconditioned inside and outside. They must be clean, treated to prevent rusting and fitted with gaskets which provide a tight seal.

(3) Tanks. Tanks used for bulk storage shall be stainless steel or aluminum or steel tanks coated on the inside with a material which, (i) complies with the Food, Drug, and Cosmetic Act and regulations issued thereunder, (ii) is suitable for use in contact with honey, and (iii) shall not adulterate the honey, impart any off color, odor, taste, or any other characteristics which would otherwise change the value of the honey stored therein. Bulk tanks shall have equipment available for liquifying crystallized honey.

(d) Moisture requirements for loan. To be eligible for a warehouse storage loan, honey must not contain in excess of 18.5 percent moisture.

(a) Floral source. Honey from the following floral sources is not eligible for price support regardless of whether it meets other eligibility requirements: Andromeda, bitterweed, broomweed, cajeput, chinquapin, dog fennel, desert hollyhock, gumweed, mescal, onion, prickly pear, prune, queen's delight, rabbit brush, snowbrush (Ceanothus), snowon-the-mountain, tarweed, and similar objectionably flavored honey or blends of honey as determined by the Director, Commodity Programs Division, ASCS. If any blends of honey contain such ineligible honey, the lot as a whole shall be considered ineligible for loan or delivery for purchase.

(b) Contamination or poisonous substances. Honey which is contaminated or which contains chemicals or other substances poisonous to man or animals is not eligible for price support.

(c) Containers. Honey packed in steel drums which have removable liners of polyethylene, or other materials is not eligible for price support regardless of whether it meets other eligibility requirements.

§ 1434.9 Approved storage.

(a) Loans. Loans will be made only on honey in approved storage as defined in this section.

(1) Farm storage. Approved farm storage shall consist of a storage structure located on or off the farm (excluding public or commercial warehouses) which is determined by the county committee to be under the control of the producer and to afford safe storage for honey. Producers may also obtain loans on honey packaged in eligible containers and stored on leased space in facilities owned by third parties in which the honey of more than one person is stored if the honey on such leased space to be placed under loan is segregated from all other honey, is identified by markings on each container of honey, and if the segregated quantity of honey is identified by a lot number and the name of the producer as owner thereof. In addition, producers may obtain loans on honey stored in bulk tanks owned by others if use of the bulk tank is obtained by a lease between the person using the bulk tank and the owner thereof. A copy of the lease shall be obtained by the county office before a loan is made. The lease shall authorize the producer and any person having an interest in the honey to enter on the premises to inspect and examine the honey and shall permit a reasonable time to such persons to remove the honey from the premises on its termination. Except as provided in § 1434.3 (f) in the case of joint loans, only the producer lessee may obtain price support on such bulk stored honey and only eligible honey belonging to the producer lessee may be stored in the bulk tanks. The chattel mortgage and security agreement shall cover all the honey stored in the bulk tank.

(2) Warehouse storage. Approved warehouse storage or an approved warehouse shall consist of a public warehouse for which a CCC Honey Storage Contract is in effect and which is approved for price support purposes or a warehouse operated by an approved cooperative as defined in § 1434.3(d) and licensed to store honey under the United States Warehouse Act.