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indicates the total energy content of the products and byproducts to be manufactured by the loan applicant will exceed the total energy input from fossil fuels used in the manufacture of such products and byproducts, and (2) such other conditions as the Secretary deems appropriate to achieve the purposes of this section are met.

(d) In order to assure that the recipients of loans made under this section have a dependable supply of agricultural commodities at a stable price for use in the pilot projects provided for in this section, the Secretary is authorized to enter into long-term contracts, not exceeding five-years, with the recipients of such loans. Such contracts shall guarantee the recipients of such loans a specified quantity of agricultural commodities annually at mutually agreed upon prices, but the agricultural commodities shall not be sold under any such contracts at less than the price support level prescribed for the commodity concerned unless the commodities are out of condition, unstorable, or samplegrade or lower, as prescribed in Department of Agriculture standards. (e) The Secretary shall supply from Commodity Credit Corporation stocks or, to such extent or in such amounts as are provided in appropriation Acts, purchase such quantities of agricultural commodities as may be necessary to comply with the terms of agreements entered into under this section.

(f) The provisions of this section shall be carried out through the Commodity Credit Corporation. (7 U.S.C. 2669)]

TITLE II-DESIGNATED NONBASIC AGRICULTURAL

COMMODITIES

SEC. 201. The Secretary is authorized and directed to make available (without regard to the provisions of title III) price support to producers for2 tung nuts, soybeans,3 honey,4 milk, sugar beets, and sugar cane5 as follows:

(a)2

*

(b) The price of honey shall be supported through loans, purchases, or other operations at a level not in excess of 90 per centum nor less than 60 per centum of the parity price thereof; and the price of tung nuts for each crop of tung nuts through the 1976 crop shall be supported through loans, purchases, or other operations at a level not in excess of 90 per centum nor less than 60 per centum of the parity price therefor: Provided, That in any crop year through the 1976 crop year in which the Secretary determines that the domestic production of tung oil will be less than the anticipated domestic demand for such oil, the price of tung nuts shall be supported at not less than 65 per centum of the parity price therefor."

(c) The price of milk shall be supported at such level not in excess of 90 per centum nor less than 75 per centum of the parity price therefor as the Secretary determines necessary in order to assure an adequate supply of pure and wholesome milk to meet current needs, reflect changes in the cost of production, and assure a level of farm income adequate to maintain productive capacity sufficient to meet anticipated future needs. Notwithstanding the foregoing, effective for the period beginning on the effective date of the Food and Agriculture Act of 1977 and ending September 30, 1981, the price of milk shall be supported at not less than 80 per centum of the parity price therefor. Such price support shall be provided through purchases of milk and the products of milk.

(d)8 Effective for the period beginning on the effective date of the Food and Agriculture Act of 1977 and ending September 30, 1981, the support price of milk shall be adjusted by the Secretary at the begin

1 Sec. 202 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1361, Nov. 30, 1970, amended the first sentence of Sec. 201 by substituting "and milk" for "milk, butterfat and the products of milk and butterfat" effective only with respect to the period beginning April 1, 1971, and ending March 31, 1974. This amendment was made permanent by Sec. 1(3) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 222, Aug. 10, 1973.

2 Sec. 709 of the Agricultural Act of 1954, P.L. 83-690, 68 Stat. 899, Aug. 28, 1954, deleted the reference to wool in the first sentence and repealed subsection (a), which provided for price support on wool, effective April 1, 1955. Beginning on that date, price support on wool has been made available under Title VII-National Wool Act of 1954 of the Agricultural Act of 1954. (p. 36-12).

Sec. 901 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 949, Sept. 29, 1977, added soybeans to the list of commodities covered by Sec. 201.

4 Sec. 203 of the Agricultural Act of 1954, P.L. 83-690, 68 Stat. 899 Aug. 28, 1954, deleted references to potatoes in the first sentence and in subsection (b) and repealed Sec. 5 of the Act of March 31, 1950, which prohibited price support on Irish potatoes unless marketing quotas were in effect.

Sec. 902 of the Food and Agriculture Act of 1977. P.L. 95-113, 91 Stat. 949 Sept. 29, 1977, added sugar beets and sugar cane to the list of commodities covered by Sec. 201.

Sec.. 201(b) was amended by P.L. 93-225, 87 Stat. 942. Dec. 29, 1973, to continue mandatory price support for tung nuts only through the 1976 crop. The proviso was originally added by Sec. 503 of the Agricultural Act of 1958, P.L. 85-835, 72 Stat. 996, Aug. 28, 1958.

7 Sec. 202 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1361, Nov. 30, 1970, revised subsection (c) effective only with respect to the period beginning April 1, 1971, and ending March 31, 1974. Sec. 1(3) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 222, Aug. 10, 1973, made this change permanent and added the language following "adequate supply" in the first sentence and the second sentence, which made the 80 per centum parity rate effective from Aug. 10, 1973, to March 31, 1975. The present version of the second sentence was substituted by Sec. 203 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 920, Sept. 29, 1977. The ending date of September 30, 1981, was substituted for March 31, 1979, by P.L. 96-127, 93 Stat. 981, Nov. 28, 1979. The version of subsection (c) shown in footnote 25 on p. 180 of Agriculture Handbook No. 444 was effective prior to April 1, 1971. "Subsection (d) was added by Sec. 203 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 920, Sept. 29, 1977. The ending date of September 30, 1981, was substituted for March 31, 1981, by P.L. 96-127, 93 Stat. 981, Nov. 28, 1979.

ning of each semiannual period after the beginning of the marketing year to reflect any estimated change in the parity index during such semiannual period. The Secretary is authorized to adjust the support price of milk at the beginning of each remaining quarter, in the marketing year to reflect any substantial change in the parity index during such quarterly period. Any adjustment under this subsection shall be announced by the Secretary not more than thirty days prior to the beginning of the period to which it is applicable. (7 U.S.C. 1446.)

(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: Provided further, That the 1981 crop of soybeans shall be supported through loans and purchases at not less than $5.02 per bushel.

(f) (1)10 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 13.5 cents per pound raw sugar equivalent. In carrying out the price support program authorized by this subsection, the Secretary shall establish minimum wage rates for agricultural employees engaged in the production of sugar.

(2) Notwithstanding any other provision of law, the Secretary 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. (7 U.S.C. 1446.)

TRANSFER OF DAIRY PRODUCTS TO MILITARY AND VETERANS

HOSPITALS

SEC. 202. [This section appears on p. 41-1 in the section entitled "Donations."]

PRICE SUPPORTS-COTTONSEED AND SOYBEANS

[Sec. 203 is inapplicable through the 1981 crops.]

Subsection (e) was added by Sec. 901 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 949, Sept. 29, 1977. Subsection (e) was amended by Sec. 202(c) of the Agricultural Act of 1980, P.L. 96–494, 94 Stat. 2570, Dec. 3, 1980, by adding the second proviso.

10 Subsection () was added by Sec. 902 of the Food and Agriculture Act of 1977, P.L. 95–113, 91 Stat. 949, Sept. 29, 1977, effective with respect to the 1977 and 1978 crops of sugar beets and sugar cane.

SEC. 203.11 Whenever the price of either cottonseed or soybeans is supported under this Act, the price of the other shall be supported at such level as the Secretary determines will cause them to compete on equal terms on the market. (7 U.S.C. 1446d.)

"Sec. 203 was made inapplicable to the 1971-73 crops by Sec. 608 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1878, Nov. 30, 1970, to the 1974-77 crops by Sec. 1(22) of the Agriculture and Consumer Protection Act of 1978, P.L. 93-86, 87 Stat. 235, Aug. 10, 1973, and to the 1978-81 crops by Sec. 604(c) of the Food and Agriculture Act of 1977, P.L. 96-113, 91 Stat. 939, Sept. 29, 1977. This section, which was added by Sec. 601 of the Agriculture Act of 1956, P.L. 540, 84th Cong., 70 Stat. 212, May 28, 1956, will once more take effect with the 1982 crops.

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