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PART III-MARKETING QUOTAS—WHEAT

LEGISLATIVE FINDINGS

[SECS. 331, 332, 333, 334, 335, 336, 338, and 339 are inapplicable through the 1981 crop of wheat.]

SEC. 331. Wheat is a basic source of food for the Nation, is produced throughout the United States by more than a million farmers, is sold on the country-wide market and, as wheat or flour, flows almost entirely through instrumentalities of interstate and foreign commerce from producers to consumers.

Abnormally excessive and abnormally deficient supplies of wheat on the country-wide market acutely and directly affect, burden, and obstruct interstate and foreign commerce. Abnormally excessive supplies overtax the facilities of interstate and foreign transportation, congest terminal markets and milling centers in the flow of wheat from producers to consumers, depress the price of wheat in interstate and foreign commerce and otherwise disrupt the orderly marketing of such commodity in such commerce. Abnormally deficient supplies result in an inadequate flow of wheat and its products in interstate and foreign commerce with consequent injurious effects to the instrumentalities of such commerce and with excessive increases in the prices of wheat and its products in interstate and foreign commerce.

It is in the interest of the general welfare that interstate and foreign commerce in wheat and its products be protected from such burdensome surpluses and distressing shortages, and that a supply of wheat be maintained which is adequate to meet domestic consumption and export requirements in years of drought, flood, and other adverse conditions as well as in years of plenty, and that the soil resources of the Nation be not wasted in the production of such burdensome surpluses. Such surpluses result in disastrously low prices of wheat and other grains to wheat producers, destroy the purchasing power of grain producers for industrial products, and reduce the value of the agricultural assets supporting the national credit structure. Such shortages of wheat result in unreasonably high prices of flour and bread to consumers and loss of market outlets by wheat producers.

The conditions affecting the production and marketing of wheat are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of such surpluses and shortages and the burdens on interstate and foreign commerce resulting therefrom, maintain normal supplies of wheat, or provide for the orderly marketing thereof in interstate and foreign commerce.

Wheat which is planted and not disposed of prior to the date prescribed by the Secretary for the disposal of excess acres of wheat is an addition to the total supply of wheat and has a direct effect on

Section 404 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1366, Nov. 30, 1970, made sections 331, 332, 335, 336, 338 and 339 inapplicable to the 1971, 1972, and 1973 crops. Section 1(11) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 229, August 10, 1973, made them inapplicable through the 1977 crops. Sec. 404 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977, made such sections inapplicable to the 1978 through 1981 crops of wheat.

the price of wheat in interstate and foreign commerce and may also affect the supply and price of livestock and livestock products. In the circumstances, wheat not disposed of prior to such date must be considered in the same manner as mechanically harvested wheat in order to achieve the policy of the Act.

The diversion of substantial acreages from wheat to the production of commodities which are in surplus supply or which will be in surplus supply if they are permitted to be grown on the diverted acreage would burden, obstruct, and adversely affect interstate and foreign commerce in such commodities, and would adversely affect the prices of such commodities in interstate and foreign commerce. Small changes in the supply of a commodity could create a sufficient surplus to affect seriously the price of such commodity in interstate and foreign commerce. Large changes in the supply of such commodity could have a more acute effect on the price of the commodity in interstate and foreign commerce and, also, could overtax the handling, processing, and transportation facilities through which the flow of interstate and foreign commerce in such commodity is directed. Such adverse effects caused by overproduction in one year could further result in a deficient supply of the commodity in the succeeding year, causing excessive increases in the price of the commodity in interstate and foreign commerce in such year. It is, therefore, necessary to prevent acreage diverted from the production of wheat to be used to produce commodities which are in surplus supply or which will be in surplus supply if they are permitted to be grown on the diverted acreage.

The provisions of this part affording a cooperative plan to wheat producers are necessary in order to minimize recurring surpluses and shortages of wheat in interstate and foreign commerce, to provide for the maintenance of adequate reserve supplies thereof, to provide for an adequate and orderly flow of wheat and its products in interstate and foreign commerce at prices which are fair and reasonable to farmers and consumers, and to prevent acreage diverted from the production of wheat from adversely affecting other commodities in interstate and foreign commerce. (7 U.S.C. 1331.)

PROCLAMATIONS OF SUPPLIES AND ALLOTMENTS

[Sec. 332 is inapplicable through the 1981 crop of wheat.] SEC. 332.2 (a) Whenever prior to April 15 in any calendar year the Secretary determines that the total supply of wheat in the marketing year beginning in the next succeeding calendar year will, in the absence of a marketing quota program, likely be excessive, the Secretary shall proclaim that a national marketing quota for wheat shall be in effect for such marketing year and for either the following marketing year or the following two marketing years, if the Secretary determines and declares in such proclamation that a two- or three-year marketing quota program is necessary to effectuate the policy of the Act. (U.S.C. 1332(a).)

(b) If a national marketing quota for wheat has been proclaimed

2 See footnote 1. Section 332 was enacted by Pub. L. 87-703, 76 Stat. 620, approved September 27, 1962. For the text of old section 332, see Pub. L. 83-690, 68 Stat. 903, approved August 28, 1954. The proclamations were deferred to June 1, 1959, for the crop year of 1960 and July 15, 1962, for the 1963 crop year.

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for any marketing year, the Secretary shall determine and proclaim the amount of the national marketing quota for such marketing year not earlier than January 1 or later than April 15 of the calendar year not earlier than January 1 or later than April 15 of the calendar year preceding the year in which such marketing year begins. The amount of the national marketing quota for wheat for any marketing year shall be an amount of wheat which the Secretary estimates (i) will be utilized during such marketing year for human consumption in the United States as food, food products, and beverages, composed wholly or partly of wheat, (ii) will be utilized during such marketing year in the United States for seed, (iii) will be exported either in the form of wheat or products thereof, and (iv)3 will be utilized during such marketing year in the United States as livestock (including poultry) feed, excluding the estimated quantity of wheat which will be utilized for such purpose as a result of the substitution of wheat for feed grains under section 3284 of the Food and Agriculture Act of 1962; less (A) an amount of wheat equal to the estimated imports of wheat into the United States during such marketing year and, (B) if the stocks of wheat owned by the Commodity Credit Corporation are determined by the Secretary to be excessive, an amount of wheat determined by the Secretary to be a desirable reduction in such marketing year in such stocks to achieve the policy of the Act: Provided, That if the Secretary determines that the total stocks of wheat in the Nation are insufficient to assure an adequate carryover for the next succeeding marketing year, the national marketing quota otherwise determined shall be increased by the amount the Secretary determines to be necessary to assure an adequate carryover: And provided further, That the national marketing quota for wheat for any marketing year shall be not less than one billion bushels. (7 U.S.Č. 1332(b).)

(c) If, after the proclamation of a national marketing quota for wheat for any marketing year, the Secretary has reason to believe that, because of a national emergency or because of a material increase in the demand for wheat, the national marketing quota should be terminated or the amount thereof increased, he shall cause an immediate investigation to be made to determine whether such action is necessary in order to meet such emergency or increase in the demand for wheat. If, on the basis of such investigation, the Secretary finds that such action is necessary, he shall immediately proclaim such finding and the amount of any such increase found by him to be necessary and thereupon such national marketing quota shall be so increased or terminated. In case any national marketing quota is increased under this subsection, the Secretary shall provide for such increase by increasing acreage allotments established under this part by a uniform percentage. (7 U.S.C. 1332(c).)

(d)5 Notwithstanding any other provision of this Act, the Secretary shall not proclaim a national marketing quota for the crops of

The language in (iv) was amended, effective beginning with the crop planted for harvest in the calendar year 1966, by Pub. L. 89-321, 79 Stat. 1199, approved November 3, 1965.

See p. 22-8.

A new subsection (d) was added to section 332, effective beginning with the crop planted for harvest in the calendar year 1966 by P.L. 89-321, 79 Stat. 1199, Nov. 3, 1965. P.L. 88-297, 78 Stat. 178, April 11, 1964, provided that the Secretary shall not proclaim a national marketing quota for the 1965 crop of wheat. The final year of the period was extended from 1969 to 1970 by P.L. 90-559, 82 Stat. 996, Oct. 11, 1968.

wheat planted for harvest in the calendar years 1966 through 1970, and farm marketing quotas shall not be in effect for such crops of wheat. (7 U.S.C. 1332(d).)

NATIONAL ACREAGE ALLOTMENT

[SEC. 333 is inapplicable through the 1981 crop of wheat.]

SEC. 333. The Secretary shall proclaim a national acreage allotment for each crop of wheat. The amount of the national acreage allotment for any crop of wheat shall be the number of acres which the Secretary determines on the basis of the projected national yield and expected underplantings (acreage other than that not harvested because of program incentives) of farm acreage allotments will produce an amount of wheat equal to the national marketing quota for wheat for the marketing year for such crop, or if a national marketing quota was not proclaimed, the quota which would have been determined if one had been proclaimed. (7 U.S.C. 1333.)

APPORTIONMENT OF NATIONAL ACREAGE ALLOTMENT

[SEC. 334 is inapplicable through the 1981 crop of wheat.] SEC. 334.6 (a) The national allotment for wheat, less a reserve of not to exceed 1 per centum thereof for apportionment as provided in this subsection and less the special acreage reserve provided for in this subsection, shall be apportioned by the Secretary among the States on the basis of the preceding year's allotment for each such State, including all amounts allotted to the State and including for 1967 the increased acreage in the State allotted for 1966 under section 335, adjusted to the extent deemed necessary by the Secretary to establish a fair and equitable apportionment base for each State, taking into consideration established crop rotation practices, estimated decrease in farm allotments because of loss of history, and other relevant factors. The reserve acreage set aside herein for apportionment by the Secretary shall be used (1) to make allotments to counties in addition to the county allotments made under subsection (b) of this section, on the basis of the relative needs of counties for additional allotments because of reclamation and other new areas coming into production of wheat, or (2) to increase the allotment for any county, in which wheat is the principal crop produced, on the basis of its relative need for such increase if the average ratio of wheat acreage allotment to cropland on old wheat farms in such county is less by at least 20 per centum than such average ratio on old wheat farms in an adjoining county or counties in which wheat is the principal grain crop produced or if there is a definable contiguous area consisting of at least 10 per centum of the cropland acreage in such county in which the average ratio of wheat acreage

Section 404 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1366, Nov. 30, 1970, made sections 333 and 334 inapplicable to 1972 and 1973 crops. Section 1(11) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 229, August 10, 1973, made these sections inapplicable to the 1974 through 1977 crops. Secs. 333 and 334 were made inapplicable to the 1978 through 1981 crops of wheat by Sec. 404 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977.

Section 333 and subsection (a) of section 334 were amended effective beginning with the crop planted for harvest in the calendar year 1966, by the Food and Agriculture Act of 1965, P.L. 89-321, 79 Stat. 1199, Nov. 3, 1965. Subsection (a) of section 334 was further amended by P.L. 90-243, 81 Stat. 781, Jan. 2, 1968, by inserting the language "(1)" between the words "used" and "to" and by adding "or (2) . . .' " and the next sentence.

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