appraised yield shall be that amount determined to be fair and reasonable on the basis of yields established for similar farms which are located in the area of the farm and on which peanuts were produced, taking into consideration land, labor, and equipment available for the production of peanuts, crops rotation practices, soil and water, and other relevant factors. (7 U.S.C. 1358 (m).)

(n) 105b For each farm, a farm base production poundage shall be established equal to the quantity determined by multiplying the farm peanut acreage allotment by the farm yield determined in accordance with subsection (m) of this section. (7 U.S.C. 1358 (n).)

(0)105b For each farm, a farm poundage quota shall be established by the Secretary for each marketing year equal to the farm base production poundage multiplied by a factor determined by the Secretary, such that the total of all farm poundage quotas will equal the national poundage quota for such marketing year. The poundage quota so determined, beginning with the 1979 crop for any farm, shall be increased by the number of pounds by which marketings of quota peanuts from the farm during the immediately preceding marketing year were less than the farm poundage quota: Provided, That total marketings shall not exceed actual production from the farm acreage allotment: Provided further, That the grower must have planted in such preceding marketing year that part of the farm allotment estimated on the basis of the farm yield to be sufficient to produce the total farm poundage quota: Provided further, That if the total of all such increases in individual farm poundage quotas exceeds 10 per centum of the national pondage quota for the marketing year, the Secretary shall adjust such increases so that the total of all increases does not exceed 10 per centum of the national poundage quota. (7 U.S.C. 1358 (0).)

(p) 105b For the purposes of this part and title I of the Agricultural Act of 1949, as amended

(1) "quota peanuts" means, for any marketing year, any peanuts which are eligible for domestic edible use as determined by the Secretary, which are marketed or considered marketed from a farm, and which do not exceed the farm poundage quota of such farm for such year;

(2) "additional peanuts" means, for any marketing year, any peanuts which are marketed from a farm and which are in excess of the marketings of quota peanuts from such farm for such year but not in excess of the actual production of the farm acreage allotment;

(3) "crushing" means the processing of peanuts to extract oil for food uses and meal for feed uses, or the processing of peanuts by crushing or otherwise when authorized by the Secretary; and

(4) "domestic edible use" means use for milling to produce domestic food peanuts and seed and use on a farm (7 U.S.C. 1358 (p).)

SALE, LEASE AND TRANSFER OF PEANUT ACREAGE ALLOTMENTS SEC. 358a 106 (a) Notwithstanding any other provision of law for the 1968 and succeeding 107 crop years, the Secretary 107a (1) shall 107a permit the owner and operator of any farm for which a peanut acreage allotment is established under this Act to sell or lease all or any part or the right to all or any part of such allotment to any other owner or operator of a farm in the same county for transfer to such farm; and (2) shall 107a permit the owner

106 Sec. 358a was added by P.L. 90-211, 81 Stat. 658, Dec. 18, 1967.

107 P.L. 91-568, 84 Stat. 1499, Dec. 22, 1970, extended the applicability of the "notwithstanding" clause to "succeeding" crop years.

107 The clause ", ", if he determines that it will not impair the effective operation of the peanut marketing quota or price support program," was deleted and "shall" was substituted for "may" by sec. 803 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 946, Sept. 29, 1977, effective for the 1978 through 1981 crops of peanuts.

of a farm to transfer all or any part of such allotment to any other farm owned or controlled by him. (7 U.S.C. 1358a (a).)

(b) Transfers under this section shall be subject to the following conditions: (1) no allotment shall be transferred to a farm in another county; (2) no transfer of an allotment from a farm subject to a mortgage or other lien shall be permitted unless the transfer is agreed to by the lienholders; (3) no sale of a farm allotment from a farm shall be permitted if any sale of allotment to the same farm has been made within the three immediately preceding crop years; (4) no transfer of allotment shall be effective until a record thereof is filed with the county committee of the county in which such transfer is made and such committee determines that the transfer complies with the provisions of this section; and (5) if the normal yield established by the county committee for the farm to which the allotment is transferred does not exceed the normal yield established by the county committee for the farm from which the allotment is transferred by more than 10 per centum, the lease or sale and transfer shall be approved acre for acre, but if the normal yield for the farm to which the allotment is transferred exceeds the normal yield for the farm from which the allotment is transferred by more than 10 per centum, the county committee shall make a downward adjustment in the amount of the acreage allotment transferred by multiplying the normal yield. established for the farm from which the allotment is transferred by the acreage being transferred and dividing the result by the normal vield established for the farm to which the allotment is transferred: Provided, That in the event an allotment is transferred to a farm which at the time of such transfer is not irrigated, but within five years subsequent to such transfer is placed under irrigation, the Secretary shall also make an annual downward adjustment in the allotment so transferred by multiplying the normal yield established for the farm from which the allotment is transferred by the acreage being transferred and dividing the result by the actual yield for the previous year, adjusted for abnormal weather conditions, on the farm to which the allotment is transferred: Provided further, That, notwithstanding any other provision of this Act, the adjustment made in any peanut allotment because of the transfer to a higher producing farm shall not reduce or increase the size of any future National or State allotment and an acreage equal to the total of all such adjustment shall not be allotted to any other farms. (7 U.S.C. 1358a (b).) (c) The transfer of an allotment shall have the effect of transferring also the acreage history and marketing quota attributable to such allotment and if the transfer is made prior to the determination of the allotment for any year the transfer shall include the right of the owner or operator to have an allotment determined for the farm for such year: Provided, That in the case of a transfer by lease the amount of the allotment shall be considered, for the purpose of determining allotments after the expiration of the lease, to have been planted on the farm from which such allotment is transferred. (7 U.S.C. 1358a (c).)

(d) The land in the farm from which the entire peanut allotment has been transferred shall not be eligible for a new farm peanut allot

ment during the five years following the year in which such transfer is made. (7 U.S.C. 1358a (d).)

(e) Any lease may be made for such term of years not to exceed five as the parties thereto agree, and on such other terms and conditions except as otherwise provided in this section as the parties thereto agree. (7 U.S.C. 1358a (e).)

(f) The lease of any part of a peanut acreage allotment determined for a farm shall not affect the allotment for the farm from which such allotment is transferred or the farm to which it is transferred, except with respect to the crop year or years specified in the lease. The amount of the acerage allotment which is leased from a farm shall be considered for purposes of determining future allotments to have been planted to peanuts on the farm from which such allotment is leased and the production pursuant to the lease shall not be taken into account in establishing allotments for subsequent years for the farm to which such allotment is leased. The lessor shall be considered to have been engaged in the production of peanuts for purposes of eligibility to vote in the referendum. (7 U.S.C. 1358a (f).)

(g) The Secretary shall prescribe regulations for the administration of this section which may include reasonable limitation on the size of the resulting allotments on farms to which transfers are made and such other terms and conditions as he deems necessary, but the total peanut allotment transferred to any farm by sale or lease shall not exceed fifty acres. (7 U.S.C. 1358a (g).

(h) If the sale or transfer occurs during a period in which the farm is covered by a conservation reserve contract, cropland conversion agreement, or other similar land utilization agreement the rates of payment provided for in the contract or agreement of the farm from which the transfer is made shall be subject to an appropriate adjustment, but no adjustment shall be made in the contract or agreement of the farm to which the transfer is made. (7 U.S.C. 1358a (h).)

(i)107b Notwithstanding any other provision of this section, transfers shall be on the basis of the farm base production poundage, and the acreage allotment for the receiving farm shall be increased by an amount determined by dividing the number of pounds transferred by the farm yield for the receiving farm, and the acreage allotment for the transferring farm shall be reduced by an amount determined by dividing the number of pounds transferred by the farm yield for the transferring farm. (7 U.S.C. 1358a (i).)

MARKETING PENALTIES

SEC. 359. (a) The marketing of any peanuts in excess of the marketing quota for the farm on which such peanuts are produced, or the marketing of peanuts from any farm for which no acreage allotment was determined, shall be subject to a penalty at a rate equal to 120

107b Subsec. (1) was added by Sec. 803 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 946, Sept. 29, 1977, effective for the 1978 through 1981 crops of peanuts.