(e) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this section.

(f) The Secretary shall carry out the special program through the Commodity Credit Corporation. (7 U.S.C. 1445d.)

PRODUCER STORAGE PROGRAM FOR WHEAT AND FEED GRAINS

SEC. 110.20g (a) The Secretary shall formulate and administer a program under which producers of wheat and, in the discretion of the Secretary, producers of feed grains will be able to store wheat and feed grains when such commodities are in abundant supply and extend the time period for their orderly marketing. The Secretary shall establish safeguards to assure that wheat and feed grains held under the program shall not be utilized in any manner to unduly depress, manipulate, or curtail the free market. The authority provided by this section shall be in addition to other authorities available to the Secretary for carrying out producer loan and storage operations. (b) In carrying out the producer storage program, the Secretary may provide original or extended price support loans for wheat and feed grains at the same level of support as provided by this Act under terms and conditions designed to encourage producers to store wheat and feed grains for extended periods of time in order to promote orderly marketing when wheat or feed grains are in abundant supply. Among such other terms and conditions as the Secretary may prescribe by regulation, the program shall provide for (1) repayment of such loans in not less than three years nor more than five years; (2) payment to producers of such amounts as the Secretary determines appropriate to cover the cost of storing wheat and feed grains held under the program; (3) a rate of interest determined by the Secretary based upon the rate of interest charged the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust such interest; (4) recovery of amounts paid for storage, and for the payment of additional interest or other charges in the event such loans are repaid by producers before the market price for wheat or feed grains has reached the price levels specified in clause (5) of this subsection; (5) conditions designed to induce producers to redeem and market the wheat or feed grains securing such loans without regard to the maturity dates thereof whenever the Secretary determines that the market price of wheat has attained a specified level which is not less than 140 per centum nor more than 160 per centum of the then current level of price support for wheat or such apropriate level for feed grains, as determined by the Secretary; and (6) conditions prescribed by the Secretary under which the Secretary may require producers to repay such loans, plus accrued interest thereon, refund amounts paid for storage, and pay such additional interest and other charges as may be required by regulation, whenever the Secretary determines that the market price for the commodity is not less than 175 per centum of

20 Sec. 110 was added by Sec. 1101 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 951, Sept. 29, 1977.

the then current level of price support for wheat or such appropriate level for feed grains as determined by the Secretary under this Act. (c) The Secretary shall announce the terms and conditions of the producer storage program as far in advance of making loans as practicable. In such announcement, the Secretary shall specify the quantity of wheat or feed grains to be stored under the program which the Secretary determines appropriate to promote the orderly marketing of such commodities. The quantity of wheat shall not be less than three hundred million bushels nor more than seven hundred million bushels: Provided, That such maximum amount may be adjusted by the Secretary as necessary to meet such commitments as may be assumed by the United States pursuant to an international agreement containing provisions relating to grain reserves.

(d) Notwithstanding any other provision of law, whenever the extended loan program authorized by this section is in effect, the Commodity Credit Corporation may not sell any of its stocks of wheat or feed grains at less than 150 per centum of the then current level of price support for such commodity: Provided, That such restriction shall not apply to

(1) sales of such commodities which have substantially deteriorated in quality or as to which there is a danger of loss or waste through deterioration or spoilage; and

(2) sales or other disposals of such commodities under (A) the fifth and sixth sentences of section 407 of this Act; (B) the Act of September 21, 1959 (73 Stat. 574, as amended; 7 U.S.C. 1427 note), and (C) section 813 of the Agricultural Act of 1970. (e) The Secretary may, with the concurrence of the owner of grain stored under the program authorized by this section, reconcentrate all such grain stored in commercial warehouses at such points as the Secretary deems to be in the public interest, taking into account such factors as transportation and normal marketing patterns. The Secretary shall permit rotation of stocks and facilitate maintenance of quality under regulations which assure that the holding producer or warehouseman shall, at all times, have available for delivery at the designated place of storage both the quantity and quality of grain covered by his commitment.

(f) Whenever grain is stored under the provisions of this section. the Secretary may buy and sell at an equivalent price, allowing for the customary location and grade differentials, substantially equiv alent quantities of grain in different locations or warehouses to the extent needed to properly handle, rotate, distribute, and locate such commodities which the Commodity Credit Corporation owns or controls. Such purchases to offset sales shall be made within two market days following the sales. The Secretary shall make a daily list available showing the price, location, and quantity of the transactions.

(g) The Secretary shall use the Commodity Credit Corporation. to the extent feasible, to fulfill the purposes of this section. In addition, to the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall utilize the usual and

customary channels, facilities, and arrangements of trade and commerce. (7 U.S.C. 1445e.)

INTERNATIONAL EMERGENCY FOOD RESERVE

SEC. 111.20h The President is encouraged to enter into negotiations with other nations to develop an international system of food reserves to provide for humanitarian food relief needs and to establish and maintain a food reserve, as a contribution of the United States toward the development of such a system, to be made available in the event of food emergencies in foreign countries. The reserves shall be known as the International Emergency Food Reserve (7 U.S.C. 1445f.)

AGRICULTURAL COMMODITIES UTILIZATION PROGRAM

SEC. 112.201 Notwithstanding any other provision of this Act(a) The Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the acreage set aside or diverted from the production of a commodity for any crop year under this title to be devoted to the production of any commodity (other than the commodities for which acreage is being set aside or diverted) for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such purpose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income.

(b) (1) During any year in which there is no set-aside or diversion of acreage under this title, the Secretary may formulate and administer a program for the production, subject to such terms and conditions as the Secretary may prescribe, of commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such purpose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income. Under the program, producers of wheat, feed grains, upland cotton, and rice shall be paid incentive payments to devote a portion of their acreage to the production of commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel.

(2) The payments under this subsection shall be at such rate or rates as the Secretary determines to be fair and reasonable, taking into consideration the participation necessary to ensure an adequate supply of the agricultural commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuels.

20h Sec. 111 was added by Sec. 1102 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 953, Sept. 29, 1977. 201 Sec. 112 was added by Sec. 201 of the Emergency Agricultural Act of 1978. P.L. 95-279, 91 Stat. -, May 15, 1978.

(3) The Secretary may issue such regulations as the Secretary deems necessary to carry out the provisions of this subsection. (4) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this subsection.

(5) The provisions of this subsection shall become effective October 1, 1978. (7 U.S.C.)

[RURAL DEVELOPMENT ACT OF 1972

PILOT PROJECTS FOR THE PRODUCTION AND MARKETING OF INDUSTRIAL HYDROCARBONS AND ALCOHOLS FROM AGRICULTURAL COMMODITIES AND FOREST PRODUCTS

SEC. 509.201 (a) The Secretary is authorized and directed to formulate and carry out a pilot program for the production and marketing of industrial hydrocarbons derived from agricultural commodities and forest products for the purpose of stabilizing and expanding the market for such commodities and products and expanding the Nation's supply of industrial hydrocarbons.

(b) The Secretary shall provide for four pilot projects for the production of industrial hydrocarbons and alcohols from agricultural commodities and forest products by guaranteeing loans, not to exceed $15,000,000 per each such project, to public, private, or cooperative organizations organized for profit or nonprofit, or to individuals for a term not to exceed twenty years at a rate of interest agreed upon by the borrower and lender.

(c) No loan may be guaranteed under this section unless (1) research 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 sample-grade 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.

201 This section was added by Sec. 1420 of the Food and Agricultural Act of 1977. P.L. 95-113, 91 Stat. 998, Sept. 29, 1977.

(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. 201.21 The Secretary is authorized and directed to make available (without regard to the provisions of title III) price support to producers for22 tung nuts, soybeans,22a honey,23 milk, sugar beets, and sugar cane as follows:

(a)

238

***22

(b) The price of honey 23 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.24

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 amendmen 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, (p. 198) 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. 195).

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.

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.

23 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.

#4 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.