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Code · STATUTES-AT-LARGE · Vol. 52 STAT. · February 14, 1938 · Public Law 430

Public Law 430.

28,961 words·~132 min read·/statutes-at-large/vol-52/public-law-430·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(/us/pl/75/429)] *Be it enacted by the. Senate and House of Representatives of the United States of America in Congress assembled*, That the SecretaryAgricultural College of New Mexico.Land conveyance to, authorized. of the Interior is authorized and directed to convoy by patent deed to the Regents of the Agricultural College of New Mexico, a corporation, upon payment by such corporation of a purchase price atPurchase price. 52 Stat. 30 Description.the rate of $1.25 per acre, the following-described lands:
Sections 19, 29, and 30, the northeast quarter of section 31, the east half of the southeast quarter of section 31, township 22 south, range 4 east, New Mexico principal meridian. Such lands shall be used for the Reversionary provision.establishment of a recreational site and for educational purposes. The patent for such lands shall contain an express condition that if the corporation fails to use such lands for such purposes, or attempts to alienate such lands, title thereto shall revert to the United States.
Any patent issued hereunder shall contain a reservation to the *Proviso*.Minerals, etc.United States of all mineral deposits in the lands patented: *Provided*, That such minerals so reserved shall be prospected for, mined, and removed only in accordance with regulations which may be prescribed by the Secretary of the Interior. Approved, February 14, 1938. To protect foreign diplomatic and consular officers and the buildings and premises occupied by them in the District of Columbia. 1938-02-15 29 Chapter 52 Stat. 30 75 3 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
Digitization Vendor 2024-11-15 public [CHAPTER 29] JOINT RESOLUTION To protect foreign diplomatic and consular officers and the buildings and premises occupied by them in the District of Columbia. February 15, 1938[[S. J. Res. 191](/us/bill/75/sjres/191)][[Pub. Res., No. 79](/us/pl/75/79)] *Resolved by the Senate and House of Representatives of the United States of America in Congress assembled*, District of Columbia.Protection of foreign diplomatic, etc., officers and property.
That it shall be unlawful to display any flag, banner, placard, or device designed or adapted to intimidate, coerce, or bring into public odium any foreign government, party, or organization, or any officer or officers thereof, or to bring into public disrepute political, social, or economic acts, views, or purposes of any foreign government, party, or organization, or to intimidate, coerce, harass, or bring into public disrepute any officer or officers or diplomatic or consular representatives of any foreign government, or to interfere with the free and safe pursuit of the duties of any diplomatic or consular representatives of any foreign government, within five hundred feet of any building or premises within the District of Columbia used or occupied by any foreign government or its representative or representatives as an embassy, Police permits.legation, consulate, or for other official purposes, except by, and in accordance with, a permit issued by the superintendent of police of Unlawful assembly, etc.the said District; or to congregate within five hundred feet of any such building or premises, and refuse to disperse after having been ordered so to do by the police authorities of the said District.
Sec. 2. Jurisdiction of offenses. The police court of the District of Columbia shall have jurisdiction of offenses committed in violation of this joint resolution; Penalty for violation.and any person convicted of violating any of the provisions of this joint resolution shall be punished by a fine not exceeding $100 or by *Proviso*.Picketing incident to bona-fide labor disputes.imprisonment not exceeding sixty days, or both: *Provided, however*, That nothing contained in this joint resolution shall be construed to prohibit picketing, as a result of bona-fide labor disputes regarding the alteration, repair, or construction of either buildings or premises occupied, for business purposes, wholly or in part, by representatives of foreign governments.
Approved, February 15, 1938. To provide for the conservation of national soil resources and to provide an adequate and balanced flow of agricultural commodities in interstate and foreign commerce and for other purposes. 1938-02-16 30 Chapter 52 Stat. 31 75 3 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-11-15 public 52 Stat. 31 [CHAPTER 30] AN ACT To provide for the conservation of national soil resources and to provide an adequate and balanced flow of agricultural commodities in interstate and foreign commerce and for other purposes.
February 16, 1938[[H. R. 8505](/us/usc/t75/hr/8505)][[Public, No. 430](/us/pl/75/430)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That this Act mayAgricultural Adjustment Act of 1938. be cited as the “Agricultural Adjustment Act of 1938”. declaration of policy Sec. 2. It is hereby declared to be the policy of Congress toDeclaration of policy. continue the Soil Conservation and Domestic Allotment Act, as amended, for the purpose of conserving national resources, preventing the wasteful use of soil fertility, and of preserving, maintaining, and rebuilding the farm and ranch laud resources in the national public interest; to accomplish these purposes through the encouragement of soil-building and soil-conserving crops and practices; to assist in the marketing of agricultural commodities for domestic consumption and for export; and to regulate interstate and foreign commerce in cotton, wheat, corn, tobacco, and rice to the extent necessary to provide an orderly, adequate, and balanced flow of such commodities in interstate and foreign commerce through storage of reserve supplies, loans, marketing quotas, assisting farmers to obtain, insofar as practicable, parity prices for such commodities and parity of income, and assisting consumers to obtain an adequate and steady supply of such commodities at fair prices.
TITLE I— AMENDMENTS TO SOIL CONSERVATION ANDTitle I—Amendments to Soil Conservation and Domestic Allotment Act.Powers of Secretary under soil-conservation program.[49 Stat. 1150](/us/stat/49/1150); [50 Stat. 329](/us/stat/50/329).[16 U. S. C., Supp. III, § 590h](/us/usc/t16/s590h).*Post*, p. 744. DOMESTIC ALLOTMENT ACT powers under soil-conservation program Sec. 101. Section 8
(b)and
(c)of the Soil Conservation and Domestic Allotment Act, as amended, are amended to read as follows:" “(b) Subject to the limitations provided in subsection
(a)of this section, the Secretary shall have power to carry out the purposes specified in clauses (1), (2), (3), (4), and
(5)of section 7
(a)byAid to agricultural producers, etc. mailing payments or grants of other aid to agricultural producers, including tenants and sharecroppers, in amounts determined by the Secretary to be fair and reasonable in connection with the effectuation of such purposes during the year with respect to which such payments or grants are made, and measured by
(1)their treatment or use of their land, or a part thereof, for soil restoration, soil conservation, or the prevention of erosion;
(2)changes in the use of their land;
(3)their equitable share, as determined by the Secretary, ofConditions governing amounts. the normal national production of any commodity or commodities required for domestic consumption; or
(4)their equitable share, as determined by the Secretary, of the national production of any commodity or commodities required for domestic consumption and exports adjusted to reflect the extent to which their utilization of cropland on the farm conforms to farming practices which the Secretary determines will best effectuate the purposes specified in section 7 (a); or
(5)any combination of the above. In arid or semiarid sections,
(1)and (2)Arid or semiarid sections, facilities for applying water. above shall be construed to cover water conservation and the beneficial use of water on individual farms, including measures to prevent run-off, the building of check dams and ponds, and providing facilities for applying water to the land. In determining the amount ofProductivity of land to be considered. any payment or grant measured by
(1)or
(2)the Secretary shall take into consideration the productivity of the land affected by the farming practices adopted during the year with respect to which such 52 Stat. 32 Utilization of local, etc., committees.payment is made. In carrying out the provisions of this section in the continental United States, the Secretary is directed to utilize the services of local and State committees selected as hereinafter provided. Administrative areas; restriction.The Secretary shall designate local administrative areas as units for administration of programs under this section. No such local area shall include more than one county or parts of different counties. Selection of local committees.Farmers within any such local administrative area, and participating or cooperating in programs administered within such area, shall elect annually from among their number a local committee of not more than three members for such area and shall also elect annually from among their number a delegate to a county convention for the electionCounty committee, election, composition, etc. of a county committee. The delegates from the various local areas in the county shall, in a county convention, elect, annually, the county committee for the county which shall consist of three members Selection of secretary; eligibility of county agent.who are farmers in the county. The local committee shall select a secretary and may utilize the county agricultural extension agent for such purpose. The county committee shall select a secretary who may be the county agricultural extension agent. If such county agricultural extension agent shall not have been elected secretary of such committee, he shall be ex officio a member of the county committee. The county agricultural extension agent shall not have the power to vote. In any county in which there is only one local committee the local committee shall also be the county committee. State committee, composition, etc.In each State there shall be a State committee for the State composed of not less than three or more than five farmers who are legal residentsEx officio members of State and county committees. of the State and who are appointed by the Secretary. The State director of the Agricultural Extension Service shall be ex officio a member of such State committee. The ex officio members of the county and State committees shall be in addition to the number of members of such committees hereinbefore specified. The Secretary shall make such regulations as are necessary relating to the selection and exercise of the functions of the respective committees, and to the administration, through such committees, of such programs.Protection of interests of tenants and sharecroppers. In carrying out the provisions of this section, the Secretary—shall, as far as practicable, protect the interests of tenants and sharecroppers; is authorized to utilize the agricultural extension Producer-controlled cooperative associations.service and other approved agencies; shall accord such recognition and encouragement to producer-owned and producer-controlled cooperative associations as will be in harmony with the policy toward cooperative associations set forth in existing Acts of Congress and as will tend to promote efficient methods of marketing and distribution;Power to acquire land, etc., denied. shall not have power to acquire any land or any right or interest therein; shall, in every practicable manner, protect the interests of small producers; and shall in every practical way encourage and provide for soil-conserving and soil-rebuilding practices rather Rules, etc., governing payments.than the growing of soil-depleting crops. Rides and regulations governing payments or grants under this subsection shall be as simple and direct as possible, and, wherever practicable, they shall be classified on two bases:
(a)Soil-depleting crops and practices,
(b)soil-building crops and practices. “(c) Acreage allotments, apportionment.
(1)In apportioning acreage allotments under this section in the case of wheat and corn, the National and State allotments and the allotments to counties shall be apportioned annually on the basis of the acreage seeded for the production of the commodity during the ten calendar years immediately preceding the calendar year in which the national acreage allotment is determined (plus, in applicable years, the acreage diverted under previous agricultural adjustment and conservation programs), with adjustments Adjustments.for abnormal weather conditions and trends in acreage during the applicable period. 52 Stat. 33 “(2) In the case of wheat, the allotment to any county shall beWheat. apportioned annually by the Secretary, through the local committees, among the farms within such county on the basis of tillable acres, crop-rotation practices, type of soil, and topography. Not more than 3 per centum of such county allotment shall be apportioned to farms on which wheat has not been planted during any of the three marketing years immediately preceding the marketing year in which the allotment is made. “(3) In the case of corn, the allotment to any county shall beCorn. apportioned annually by the Secretary, through the local committees, among the farms within such county on the basis of tillable acreage, type of soil, topography, and crop-rotation practices. “(4) Notwithstanding any other provision of this subsection, if,Acreage planted less than allotment. for any reason other than flood or drought, the acreage of wheat, cotton, corn, or rice planted on the farm is less than 80 per centum of the farm acreage allotment for such commodity for the purpose of payment, such farm acreage allotment shall be 25 per centum in excess of such planted acreage. “(5) In determining normal yield per acre on any farm underWheat or corn, normal yield determination.*Post*, pp. 204, 205. this section in the case of wheat or corn, the normal yield shall be the average yield per acre thereon for such commodity during the ten calendar years immediately preceding the calendar year in which such yield is determined, adjusted for abnormal weather conditions and trends in yields. If for any reason there is no actual yield, orAppraisal, if no actual yield. the data therefor are not available for any year, then an appraised yield for such year, determined in accordance with regulations of the Secretary, shall be used. If, on account of drought, flood, insectYield less than 75 percent due to drought, etc. pests, plant disease, or other uncontrollable natural cause, the yield in any year of such ten-year period is less than 75 per centum of the average (computed without regard to such year), such year shall be eliminated in calculating the normal yield per acre. “(d) Any payment or grant of aid made under subsection (b)Payments conditioned upon conforming to prescribed practices. shall be conditioned upon the utilization of the land, with respect to which such payment is made, in conformity with farming practices which the Secretary finds tend to effectuate any one or more of the purposes specified in clause (1), (2), (3), (4),or
(5)of section 7 (a). “Any payment made under subsection
(b)with respect to any farm (except for lands which the Secretary determines should notPermanent grazing lands. be utilized for the harvesting of crops but should be permanently used for grazing purposes only) shall, if the number of cows kept on such farm, and in the county in which such farm is located, for the production of milk or products thereof (for market), exceeds the normal number of such cows, be further conditioned upon the utilization of the land, with respect to which such payment is made, so that soil-building and soil-conserving crops planted or producedSoil-building, etc., crops. on an acreage equal to the land normally used for the production of soil-depleting crops but, as a condition of such payment, not permitted to be so used, shall be used for the purpose of building and conserving the fertility of the soil, or for the production of agricultural commodities to be consumed on the farm, and not for market. Whenever it is determined that a county, as a whole, isPayments where county complies with provisions. in substantial compliance with the provisions of this paragraph, no payment shall be denied any individual farmer in the county by reason of this paragraph; and no payment shall be denied a fanner by reason of this paragraph unless it has been determined that the farmer has not substantially complied with the provisions of this paragraph. Whenever the Secretary finds that by reason of drought,Shortage of feed due to drought, etc. flood, or other disaster, a shortage of feed exists in any area, he shall so declare, and to the extent and for the period he finds 52 Stat. 34necessary to relieve such shortage, the operation of the condition provided in this paragraph shall be suspended in such area and, if necessary to relieve such shortage, in other areas defined by him. Term “for market” defined.As used in this paragraph, the term ‘for market’ means for disposition by sale, barter, or exchange, or by feeding (in any form) to dairy livestock which, or the products of which, are to be sold, Farm consumption excluded; term construed.bartered, or exchanged; and such term shall not include consumption on the farm. An agricultural commodity shall be deemed consumed on the farm if consumed by the farmer’s family, employees, or household, or if fed to poultry or livestock other than dairy livestock on his farm; or if fed to dairy livestock on his farm and such dairy livestock, or the products thereof, are to be consumed by his family, Investigations of adverse effects of programs on livestock, etc., producers.employees, or household. Whenever the Secretary has reason to believe the income of producers of livestock (other than dairy cattle) or poultry in any area from such sources is being adversely affected by increases in the supply for market of such livestock or poultry, as the case may be, arising as a result of programs carried out under this Act, he shall make an investigation with respect to the existence of such facts. If, upon investigation, the Secretary finds that the income of producers of such livestock or poultry, as the case may be, in any area from any such source is being adversely affected by such increases, he shall, as soon as practicable, make such provisions in the administration of this Act with respect to the use of diverted acres as he may find necessary to protect the interests of producers of such livestock or poultry in the affected area.” " Reductions and increases in payments under soil conservation program.[49 Stat, 1149](/us/stat/49/1149); [50 Stat. 329](/us/stat/50/329).[16 U. S. C., Supp. III, § 590b](/us/usc/t16/s590b).reductions and increases in payments under soil conservation program Sec. 102. Section 8 of the Soil Conservation and Domestic Allotment Act, as amended, is further amended by adding a new subsection as follows:" “(e) Division of payments between landlords, tenants, etc. Payments made by the Secretary to farmers under subsection
(b)shall be divided among the landlords, tenants, and sharecroppers of any farm, with respect, to which such payments are made, in the same proportion that such landlords, tenants, and sharecroppers are entitled to share in the proceeds of the agricultural commodity Exceptions.with respect to which such payments are made, except that payments based on soil-building or soil-conserving practices shall be divided in proportion to the extent which such landlords, tenants, and share-croppersDirect payments. contribute to the carrying out of such practices. Such payments shall be paid by the Secretary directly to the landlords, Rates to permit setting aside funds to cover specified increases.tenants, or sharecroppers entitled thereto, and shall be computed at rates which will permit the Secretary to set aside out of the funds available for the making of such payments for each year an amount sufficient to permit the increases herein specified to be made within Ranges of increased payments.the limits of the funds so available. If with respect to any farm the total payment to any person for any year would be: “(1) Not more than $20, the payment shall be increased by 40 per centum; “(2) More than $20 but not more than $40, the payment shall be increased by $8, plus 20 per centum of the excess over $20; “(3) More than $40 but not more than $60, the payment shall be increased by $12, plus 10 per centum of the excess over $40; “(4) More than $60 but not more than $186, the payment shall be increased by $14; or “(5) More than $186 but less than $200, the payment shall be increased to $200. 52 Stat. 35 In the case of payments of more than $1, the amount of the payment which shall be used to calculate the 40-, 20-, and 10-per-centum increases under clauses (1), (2), and
(3)shall not include that part, if any, of the payment which is a fraction of a dollar. “Beginning with the calendar year 1939, no total payment for anyMaximum amount for any year. year to any person under such subsection
(b)shall exceed $10,000. In the case of payments made to any individual, partnership, or estate on account of performance on farms in different States, Territories, or possessions, the $10,000 limitation shall apply to the total of the payments for each State, Territory, or possession, for a year and not to the total of all such payments.” " tenant provisionsTenant provisions. Sec. 103. Section 8 of the Soil Conservation and Domestic Allotment[49 Stat. 1119](/us/stat/49/1119); [50 Stat. 329](/us/stat/50/329).[16 U. S. C., Supp. III, § 590h](/us/usc/t16/s590h). Act, as amended, is further amended by adding the following new subsections:" “(f) Any change between the landlord and the tenants or share-croppers,Change in relationship between landlord and tenants, etc. with respect to any farm, that would increase over the previous year the amount of payments or grants of other aid under subsection
(b)that would otherwise be made to any landlord shall not operate to increase such payment or grant to such landlord. AnyReduction in number of tenants below average. reduction in the number of tenants below the average number of tenants on any farm during the preceding three years that would increase the payments or grants of other aid under such subsection that would otherwise be made to the landlord shall not hereafter operate to increase any such payment or grant to such landlord. Such limitations shall apply only if the county committee finds thatFinding by county committee. the change or reduction is not justified and disapproves such change or reduction. “(g) A payment which may be made to a farmer under this section,Assignment of payment.*Post*, p. 205. may be assigned, without discount, by him in writing as security for cash or advances to finance making a crop. Such assignment shall be acknowledged by the farmer before the county agricultural extension agent and filed with such agent. The farmer shall file with such county agricultural extension agent an affidavit stating that the assignment is not made to pay or secure any pre-existing indebtedness. This provision shall not authorize any suit against orNo liability imposed. impose any liability upon the Secretary or any disbursing agent if payment to the farmer is made without regard to the existence of any such assignment.” " apportionment of fundsApportionment of funds. Sec. 104. Section 15 of the Soil Conservation and Domestic Allotment[49 Stat. 1151](/us/stat/49/1151).[10 U. S. C., Supp. III, § 590o](/us/usc/t10/s590o). Act, as amended, is amended by inserting at the end thereof the following new paragraph:" “The funds available for payments (after allowing for estimatedAllocation of funds available for payments.*Post*, pp. 744, 819. administrative expenses, and not to exceed 5 per centum for payments with respect to range lands, noncrop pasture lands, and naval stores) shall be allocated among the commodities produced with respect to which payments or grants are to be computed. In allocatingBasis of apportionment. funds among the commodities the Secretary shall take into consideration and give equal weight to
(1)the average acreages planted to the various commodities (including rotation pasture), for the ten years 1928 to 1937, adjusted for abnormal weather and other conditions, including acreage diverted from production under the agricultural adjustment and soil conservation programs;
(2)the value at parity prices of the production from the allotted acreages of the various commodities for the year with respect to which the payment 52 Stat. 36is made;
(3)the average acreage planted to the various commodities during the ton years 1928 to 1937, including the acreage diverted from production under the agricultural adjustment and soil conservation programs, in excess of the allotted acreage for the year with respect to which the payment is made; and
(4)the value based on average prices for the preceding ten years of the production of Rate of payment.the excess acreage determined under item (3). The rate of payment used in making payments to the producers of each commodity shall be such that the estimated payments with respect to such commodity shall equal the amount of funds allocated to such commodity as herein provided. For the purpose of allocating funds and computing payments or grants the Secretary is authorized to consider as a commodity a group of commodities or a regional or market Use of funds for purpose of computing payments.classification of a commodity. For the purpose of computing payments or grants, the Secretary is authorized to use funds allocated to two or more commodities produced on farms of a designated regional or other classification to compute payments with respect to one of such commodities on such farms, and to use funds, in an amount equal to the estimated payments which would be made in any county, for [16 U. S. C., Supp. III, § 590h](/us/usc/t16/s590h).*Proviso*.Wheat acreage allotments, 1938.making payments pursuant to a special program under section 8 approved by the Secretary for such county: *Provided*, That farm acreage allotments shall be made for wheat in 1938, but in determining compliance wheat shall he considered in the group with other crops for which special acreage allotments are not made.” " effective time of sections 101, 102, 103, and 104 Sec. 105. Effective time of sections 101–104.*Post*, p. 202. The amendments made by sections 101, 102, 103, and 104 shall first be effective with respect to farming operations carried out in the calendar year 1938. Nothing contained herein shall require reconstituting, for 1938, any county or other local committee which has been constituted prior to February 1, 1938. TITLE II—Title II—Adjustment in freight rates, new uses and markets, and disposition of surpluses. ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS, AND DISPOSITION OF SURPLUSES adjustments in freight rates for farm products Sec. 201. Transportation of farm products, complaints as to rates, charges, practices, etc., to Interstate Commerce Commission.
(a)The Secretary of Agriculture is authorized to make complaint to the Interstate Commerce Commission with respect to rates, charges, tariffs, and practices relating to the transportation of farm products, and to prosecute the same before the Commission. Before hearing or disposing of any complaint (filed by any person other than the Secretary) with respect to rates, charges, tariffs, and practices relating to the transportation of farm products, the Commission shall cause the Secretary to be notified, and, upon application by the Secretary, shall permit the Secretary to appear and be heard.
(b)Secretary a party to proceeding if complaint afreets public interest. If such rate, charge, tariff, or practice complained of is one affecting the public interest, upon application by the Secretary, the Commission shall make the Secretary a party to the proceeding. In such case the Secretary shall have the rights of a party before the Commission and the rights of a party to invoke and pursue original and appellate judicial proceedings involving the Commission’s Liability of Secretary.determination. The liability of the Secretary in any such case shall extend only to liability for court costs.
(c)Use of facilities of Department of Agriculture. For the purposes of this section, the Interstate Commerce Commission is authorized to avail itself of the cooperation, records, services, and facilities of the Department of Agriculture. 52 Stat. 37
(d)The Secretary is authorized to cooperateAssistance to cooperative associations of farmers making complaint. with and assist cooperative associations of farmers making complaint to the Interstate Commerce Commission with respect to rates, charges, tariffs, and practices relating to the transportation of farm products. new uses and new markets for farm commoditiesNew uses and new markets for farm commodities.Regional research laboratories, establishment, etc.*Post*, p. 745. Sec. 202.
(a)The Secretary is hereby authorized and directed to establish, equip, and maintain four regional research laboratories, one in each major farm producing area, and, at such laboratories, to conduct researches into and to develop new scientific, chemical, and technical uses and new and extended markets and outlets for farm commodities and products and byproducts thereof. Such research and development shall be devoted primarily to those farm commodities in which there are regular or seasonal surpluses, and their products and byproducts.
(b)For the purposes of subsection (a), the Secretary is authorizedReal or personal property, acquisitions. to acquire land and interests therein, and to accept in the name of the United States donations of any property, real or personal, to any laboratory established pursuant to this section, and to utilize voluntary or uncompensated services at such laboratories. Donations toDonations. any one of such laboratories shall not be available for use by any other of such laboratories.
(c)In carrying out the purposes of subsection (a), the SecretaryCooperation with other agencies, etc.; terms and conditions. is authorized and directed to cooperate with other departments or agencies of the Federal Government, States, State agricultural experiment stations, and other State agencies and institutions, counties, municipalities, business or other organizations, corporations, associations, universities, scientific societies, and individuals, upon such terms and conditions as he may prescribe.
(d)To carry out the purposes of subsection (a), the Secretary isSums authorized. authorized to utilize in each fiscal year, beginning with the fiscal year beginning July 1, 1938, a sum not to exceed $4,000,000 of the funds appropriated pursuant to section 391 of this Act, or section 15 of the*Post*, pp. 69, 744;[49 Stat. 1151](/us/stat/49/1151). Soil Conservation and Domestic Allotment Act, as amended, for such fiscal year. The Secretary shall allocate one-fourth of such sumAnnunl allocation to each laboratory. annually to each of the four laboratories established pursuant to this section.
(e)The Secretary shall make a report to Congress at the beginningReport to Congress. of each regular session of the activities of, expenditures by, and donations to the laboratories established pursuant to subsection (a).
(f)There is hereby allocated to the Secretary of Commerce forPromotion of sale of farm commodities, etc.*Post*, p. 745. each fiscal year, beginning with the fiscal year beginning July 1, 1938, out of funds appropriated for such fiscal year pursuant to section 391 of this Act, or section 15 of the Soil Conservation and*Post*, p. 69; [49 Stat. 1151](/us/stat/49/1151). Domestic Allotment Act, as amended, the sum of $1,000,000 to be expended for the promotion of the sale of farm commodities and products thereof in such manner as he shall direct. Of the sumSurvey of causes of reduction in exports of American agricultural commodities. allocated under this subsection to the Secretary of Commerce for the fiscal year beginning July 1, 1938, $100,000 shall be devoted to making a survey and investigation of the cause or causes of the reduction in exports of agricultural commodities from the United States, in order to ascertain methods by which the sales in foreign countries of basic agricultural commodities produced in the United States may be increased.
(g)It shall be the duty of the Secretary to use available fundsUse of funds for stimulating, etc., use of farm commodities. to stimulate and widen the use of all farm commodities in the United States and to increase in every practical way the flow of such commodities and the products thereof into the markets of the world. 52 Stat. 38 Sec. 203. Exportation of unmanufactured cotton.[49 Stat. 775](/us/stat/49/775).[7 U. S. C., Supp. III, § 612c](/us/usc/t7/s612c). Section 32, as amended, of the Act entitled “An Act to amend the Agricultural Adjustment Act, and for other purposes”, approved August 24, 1935, is amended by striking out “: *Provided further*, That no part of the funds appropriated by this section shall be used for the payment of benefits in connection with the exportation of unmanfactured 1 1 1So in original. cotton ”, and is further amended by adding Allocation to any one commodity limited.at the end thereof the following: “Notwithstanding any other provision of this section, the amount that may be devoted, during any fiscal year after June 30, 1939, to any one agricultural commodity or the products thereof in such fiscal year, shall not exceed 25 per centum of the funds available under this section for such fiscal year.” Federal Surplus Commodities Corporation.Continuation until June 30, 1942.[50 Stat. 323](/us/stat/50/323).[7 U. S. C., Supp. III, § 612c](/us/usc/t7/s612c).continuation of federal surplus commodities corporation Sec. 204. The Act entitled “An Act to extend the time for purchase and distribution of surplus agricultural commodities for relief purposes and to continue the Federal Surplus Commodities Corporation”, approved June 28, 1937 (Public, Numbered 165, Seventy-fifth Congress), is amended by striking out “continued, until June 30, 1939,” and inserting in lieu thereof “continued, until June 30, 1942,”. Report to Congress.The Federal Surplus Commodities Corporation shall submit to Congress on the first day of each regular session an annual report setting forth a statement of the activities, receipts, and expenditures of the Corporation during the previous fiscal year. TITLE III—Title III—Loans, parity payments, etc. LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, AND MARKETING QUOTAS Subtitle A—Subtitle A—Definitions, etc. Definitions, Loans, Parity Payments, and Consumer Safeguards definitions Sec. 301. Definitions.
(a)General definitions.— For the purposes of this title and the declaration of policy—
(1)“Parity”, as applied to prices for any agricultural commodity. “Parity”, as applied to prices for any agricultural commodity, shall be that price for the commodity which will give to the commodity a purchasing power with respect to articles that farmers buy equivalent to the purchasing power of such commodity in the base period; and, in the case of all commodities for which the base period is the period August 1909 to July 1914, which will also reflect current interest payments per acre on farm indebtedness secured by real estate, tax payments per acre on farm real estate, and freight rates, as contrasted with such interest payments, tax payments, and Base period.freight rates during the base period. The base period in the case of all agricultural commodities except tobacco shall be the period August 1909 to July 1914, and, in the case of tobacco, shall be the period August 1919 to July 1929.
(2)“Parity”, as applied to income. “Parity”, as applied to income, shall be that per capita net income of individuals on farms from farming operations that bears to the per capita net income of individuals not on farms the same relation as prevailed during the period from August 1909 to July 1914.
(3)“Interstate and foreign commerce.” The term “interstate and foreign commerce” means sale, marketing, trade, and traffic between any State or Territory or the District of Columbia or Puerto Rico, and any place outside thereof; or between points within the same State or Territory or within the District of Columbia or Puerto Rico, through any place outside thereof; or within any Territory or within the District of Columbia or Puerto Rico. 52 Stat. 39
(4)The term “affect interstate and foreign commerce” means,“Affect interstate and foreign commerce.” among other things, in such commerce, or to burden or obstruct such commerce or the free and orderly flow thereof; or to create or tend to create a surplus of any agricultural commodity which burdens or obstructs such commerce or the free and orderly flow thereof.
(5)The term “United States” means the several States and Territories“United States.” and the District of Columbia and Puerto Rico.
(6)The term “State” includes a Territory and the District of“State.” Columbia and Puerto Rico.
(7)The term “Secretary” means the Secretary of Agriculture,“Secretary”; “Department” and the term “Department” means the Department of Agriculture.
(8)The term “person” means an individual, partnership, firm,“Person.” joint-stock company, corporation, association, trust, estate, or any agency of a State.
(9)The term “corn” means field corn.“Corn.”
(b)Definitions applicable to one or more commodities.— For theDefinitions applicable to one or more commodities. purposes of this title—
(A)“Actual production” as applied to any acreage of corn“Actual production” as applied to any acreage of corn. means the number of bushels of corn which the local committee determines would be harvested as grain from such acreage if all the corn on such acreage were so harvested. In case of a disagreement between the farmer and the local committee as to the actual production of the acreage of corn on the farm, or in case the local committee determines that such actual production is substantially below normal, the local committee, in accordance with regulations of the Secretary, shall weigh representative samples of ear corn taken from the acreage involved, make proper deductions for moisture content, and determine the actual production of such acreage on the basis of such samples.
(B)“Actual production” of any number of acres of cotton on a“Actual production” of any number of acres of cotton on a farm. farm means the actual average yield for the farm times such number of acres.
(2)“Bushel” means in the case of ear“Bushel”, ear and shelled corn. corn that amount of ear corn, including not to exceed 15½ per centum of moisture content, which weighs seventy pounds, and in the case of shelled corn, means that amount of shelled corn including not to exceed 15% per centum of moisture content, which weighs fifty-six pounds.
(A)“Carry-over”, in the case of corn and rice, for any marketing“Carry-over”, in the case of corn and rice. year shall be the quantity of the commodity on hand in the United’States at the beginning of such marketing year, which was produced in the United States prior to the beginning of the calendar year then current.
(B)“Carry-over” of cotton for any marketing year shall be the Cotton.quantity of cotton on hand either within or without the United States at the beginning of such marketing year, which was produced in the United States prior to the beginning of the calendar year then current.
(C)“Carry-over” of tobacco for any marketing year shall be theTobacco. quantity of such tobacco on hand in the United States at the beginning of such marketing year, which was produced in the United States prior to the beginning of the calendar year then current, except that in the case of cigar-filler and cigar-binder tobacco the quantity of type 46 on hand and theretofore produced in the United States during such calendar year shall also be included.
(D)“Carry-over” of wheat, for any marketing year shall be theWheat. quantity of wheat on hand in the United States at the beginning of such marketing year, not including any wheat which was produced in the United States during the calendar year then current, and not including any wheat held by the Federal Crop Insurance Corporation*Post*, p. 72. under Title V. 52 Stat. 40
(4)“Commercial corn-producing area”;counties included.
(A)“Commercial corn-producing area” shall include all counties in which the average production of corn (excluding corn used as silage) during the ten calendar years immediately preceding the calendar year for which such area is determined, after adjustment for abnormal weather conditions, is four hundred and fifty bushels or more per farm and four bushels or more for each acre of farm land in the county.
(B)Counties bordering area producing prescribed average. Whenever prior to February 1 of any calendar year the Secretary has reason to believe that any county which is not included in the commercial corn-producing area determined pursuant to the provisions of subparagraph (A), but which borders upon one of the counties in such area, or that any minor civil division in a. county bordering on such area, is producing (excluding corn used for silage) an average of at least four hundred and fifty bushels of corn per farm and an average of at least four bushels for each acre of farm land in the county or in the minor civil division, as the case may be, he shall cause immediate investigation to be made to determine such fact. If, upon the basis of such investigation, the Secretary finds that such county or minor civil division is likely to produce corn in such average amounts during such calendar year, he shall proclaim such determination, and, commencing with such calendar year, such county Exclusion from area, investigation.shall be included in the commercial corn-producing area. In the case of a county included in the commercial corn-producing area pursuant to this subparagraph, whenever prior, to February 1 of any calendar year the Secretary has reason to believe that facts justifying the inclusion of such county are not likely to exist in such calendar year, he shall cause an immediate investigation to be made with respect thereto. If, upon the basis of such investigation, the Secretary finds that such facts are not likely to exist in such calendar year, he shall proclaim such determination, and commencing with such calendar year, such county shall be excluded from the commercial corn-producing area.
(5)“Farm consumption” of corn. “Farm consumption” of corn means consumption by the farmer’s family, employees, or household, or by his work stock; or consumption by poultry or livestock on his farm if such poultry or livestock, or the products thereof, are consumed or to be consumed by the farmer’s family, employees, or household.
(6)“Market”, in the case of cotton, wheat, and tobacco.
(A)“Market”, in the case of cotton, wheat, and tobacco, means to dispose of by sale, barter, or exchange, but, in the case of wheat, *Post*, p. 72.does not include disposing of wheat as premium to the Federal Crop Insurance Corporation under Title V.
(B)Corn. “Market”, in the case of corn, means to dispose of by sale, barter, or exchange, or by feeding (in any form) to poultry or livestock which, or the products of which, are sold, bartered, or exchanged, or to be so disposed of.
(C)Rice. “Market”, in the case of rice, means to dispose of by sale, barter, or exchange of rice used or to be used for human consumption.
(D)“Marketed”, “marketing”, and “for market.” “Marketed”, “marketing”, and “for market” shall have corresponding meanings to the term “market” in the connection in which they are used.
(7)“Marketing year”, in the case of specified commodities. “Marketing year” means, in the case of the following commodities, the period beginning on the first and ending with the second date specified below: Corn, October 1–September 30; Cotton, August 1–July 31; Rice, August 1–July 31; Tobacco (flue-cured), July 1–June 30; Tobacco (other than flue-cured), October 1–September 30; Wheat, July 1–June 30. 52 Stat. 41
(8)“National average yield” as applied to cotton or wheat shall“National average yield” as applied to cotton or wheat. be the national average yield per acre of the commodity during the ten calendar years in the case of wheat, and during the five calendar years in the case of cotton, preceding the year in which such national average yield is used in any computation authorized in this title, adjusted for abnormal weather conditions and, in the case of wheat, but not in the case of cotton, for trends in yields.
(9)“Normal production” as applied to any number of acres of“Normal production” as applied to corn, cotton, or wheat. corn, cotton, or wheat means the normal yield for the farm times such number of acres.
(A)“Normal supply” in the case of corn, cotton, rice, and“Normal supply” in the case of corn, cotton, rice, and wheat. wheat shall be a normal year’s domestic consumption and exports of the commodity, plus 7 per centum in the case of corn, 40 per centum in the case of cotton, 10 per centum in the case of rice, and 15 per centum in the case of wheat, of a normal year’s domestic consumption and exports, as an allowance for a normal carry-over.
(B)The “normal supply” of tobacco shall be a normal year’sTobacco. domestic consumption and exports plus 175 per centum of a normal year’s domestic consumption and 65 per centum of a normal year’s exports as an allowance for a normal carry-over.
(A)“Normal year’s domestic consumption”, in the case of“Normal year’s domestic consumption” in the case of corn and wheat. corn and wheat, shall be the yearly average quantity of the commodity, wherever produced, that was cosumed 1 1So in original. in the United States during the ten marketing years immediately preceding the marketing year in which such consumption is determined, adjusted for current trends in such consumption.
(B)“Normal year’s domestic consumption”, in the case of cottonCotton and tobacco. and tobacco, shall be the yearly average quantity of the commodity produced in the United States that was consumed in the United States during the ten marketing years immediately preceding the marketing year in which such consumption is determined, adjusted for current trends in such consumption.
(C)“Normal year’s domestic consumption”, in the case of rice,Rice. shall be the yearly average quantity of rice produced in the United States that was consumed in the United States during the five marketing years immediately preceding the marketing year in which such consumption is determined, adjusted for current trends in such consumption.
(12)“Normal year’s exports” in the case of corn, cotton, rice,“Normal year’s exports” in the case of corn, cotton, rice, tobacco, and wheat. tobacco, and wheat shall be the yearly average quantity of the commodity produced in the United States that was exported from the United States during the ten marketing years (or, in the case of rice, the five marketing years) immediately preceding the marketing year in which such exports are determined, adjusted for current trends in such exports.
(A)“Normal yield” for any farm, in the case of corn, shall“Normal yield” for any farm in the case of corn.*Post*, p. 202. be the average yield per acre of corn for the farm during the ten calendar years immediately preceding the year in which such normal yield is used in computing any farm marketing quota or adjustment thereof, adjusted for abnormal weather conditions and trends in yields.
(B)“Normal yield” for any farm, in the case of wheat or cotton,Wheat or cotton.*Post*, p. 202. shall be the average yield per acre of wheat or cotton for the farm, adjusted for abnormal weather conditions, and, in the case of wheat but not in the case of cotton, for trends in yields, during the ten calendar years in the case of wheat, and five calendar years in the 52 Stat. 42case of cotton, immediately preceding the year with respect to which such normal yield is used in any computation authorized under this title.
(C)Appraisal in absence of available data. In applying subparagraph
(A)or (B), if for any such year the data are not available, or there is no actual yield, an appraised yield for such year, determined in accordance with regulations issued by the Secretary, shall be used as the actual yield for such year. Drought, flood, etc.In applying such subparagraphs, if, on account of drought, flood, insect pests, plant disease, or other uncontrollable natural cause, the yield in any year of such ten-year period or five-year period, as the case may be, is less than 75 per centum of the average (computed without regard to such year) such year shall be eliminated in calculating the normal yield per acre.
(D)“Normal yield” per acre of rice. “Normal yield” per acre of rice for any land planted to rice in any year shall be the average yield per acre thereof during the five calendar years immediately preceding the calendar year for which such normal yield is determined. If, for any reason, there is no actual yield or the data therefor are not available for any year, then an appraised yield for such year, determined in accordance with the regulations of the Secretary, shall be used. If the average of the normal yields for all lands planted to rice in any year in the State (weighted by the acreage allotments therein) exceeds the average yield per acre for the State during the period used in determining normal yields, the normal yields for such lands in the State shall be reduced pro rata so that the average of such normal yields *Post*, p. 202.shall not exceed such State average yield.
(14)“Reserve supply level” in the case of corn.
(A)“Reserve supply level”, in the case of corn, shall be a normal year’s domestic consumption and exports of corn plus 10 per centum of a normal year’s domestic consumption and exports, to insure a supply adequate to meet domestic consumption and export needs in years of drought, flood, or other adverse conditions, as well as in years of plenty.
(B)Tobacco. “Reserve supply level” of tobacco shall be the normal supply plus 5 per centum thereof, to insure a supply adequate to meet domestic consumption and export needs in years of drought, flood, or other adverse conditions, as well as in years of plenty.
(15)“Tobacco” defined. “Tobacco” means each one of the kinds of tobacco listed below comprising the types specified as classified in Service and Regulatory Announcement Numbered 118 of the Bureau of Agricultural Economics of the Department: Flue-cured tobacco, comprising types 11, 12, 13, and 14; Fire-cured and dark air-cured tobacco, comprising types 21, 22, 23, 24, 35, 36, and 37; Burley tobacco, comprising type 31; Maryland tobacco, comprising type 32; Cigar-filler and cigar-binder tobacco, comprising types 42, 43, 44, 45, 46, 51, 52, 53, 54, and 55; Cigar-filler tobacco, comprising type 41. The provisions of this title shall apply to each of such kinds of tobacco severally.
(16)“Total supply” of corn, cotton, rice, and wheat.
(A)“Total supply” of corn, cotton, rice, and wheat for any marketing year shall be the carry-over of the commodity for such marketing year plus the estimated production of the commodity in the United States during the calendar year in which such marketing year begins.
(B)Tobacco. “Total supply” of tobacco for any marketing year shall be the carry-over at the beginning of such marketing year plus the estimated production thereof in the United States during the calendar year in which such marketing year begins, except that the 52 Stat. 43estimated production of type 46 tobacco during the marketing year with respect to which the determination is being made shall be used in lieu of the estimated production of such type during the calendar year in which such marketing year begins in determining the total supply of cigar-filler and cigar-binder tobacco.
(c)The latest available statistics of the Federal Government shallLatest statistics to be used in making determinations. be used by the Secretary in making the determinations required to be made by the Secretary under this Act. loans on agricultural commoditiesLoans on agricultural commodities. Sec. 302.
(a)The Commodity Credit Corporation is authorized,Authority of Commodity Credit Corporation. upon recommendation of the Secretary and with the approval of the President, to make available loans on agricultural commodities (including dairy products). Except as otherwise provided in thisAmount, terms, and conditions. section, the amount, terms, and conditions of such loans shall be fixed by the Secretary, subject to the approval of the Corporation and the President.
(b)The Corporation is directed to make available to cooperatorsLoans upon wheat if price below 52 per centum of parity price.*Post*, p. 820. loans upon wheat during any marketing year beginning in a calendar year in which the farm price of wheat on June 15 is below 52 per centum of the parity price on such date, or the July crop estimateIf July estimate is in excess of normal year’s domestic consumption and exports. for wheat is in excess of a normal year’s domestic consumption and exports, at rates not less than 52 per centum and not more than 75 per centum of the parity price of wheat at the beginning of the marketing year. In case marketing quotas for wheat are in effectLoans to noncooperators. in any marketing year, the Corporation is directed to make available, during such marketing year, to noncooperators, loans upon wheat at 60 per centum of the rate applicable to cooperators. A loan on wheatLimitation. to a noncooperator shall be made only on so much of his wheat as would be subject to penalty if marketed.
(c)The Corporation is directed to make available to cooperatorsLoans upon cotton, when made. loans upon cotton during any marketing year beginning in a calendar year in which the average price on August 1 of seven-eighths Middling spot cotton on the ten markets designated by the Secretary is below 52 per centum of the parity price of cotton on such date, or the August crop estimate for cotton is in excess of a normal year’s domestic consumption and exports, at rates not less than 52 per centum and not more than 75 per centum of the parity price of cotton as of the beginning of the marketing year. In case marketingLoans to noncooporators. quotas for cotton are in effect in any marketing year, the Corporation is directed to make available, during such marketing year, to noncooperators, loans upon cotton at 60 per centum of the rate applicable to cooperators. A loan on cotton to a noncooperator shallLimitation. be made only on so much of his cotton as would be subject to penalty if marketed.
(d)The Corporation is directed to make available loans upon cornLoans upon corn, when made.*Post*, p. 820. during any marketing year beginning in the calendar year in which the November crop estimate for corn is in excess of a normal year’s domestic consumption and exports, or in any marketing year when on November 15 the farm price of corn is below 75 per centum of the parity price, at the following rates: 75 per centum of such parity price if such estimate does notRates. exceed a normal year’s consumption and exports and the farm price of corn is below 75 per centum of the parity price on November 15; 70 per centum of such parity price if such estimate exceeds a normal year’s domestic consumption and exports by not more than 10 per centum;52 Stat. 44 65 per centum of such parity price if such estimate exceeds a normal year’s domestic consumption and exports by more than 10 per centum and not more than 15 per centum; 60 per centum of such parity price if such estimate exceeds a normal year’s domestic consumption and exports by more than 15 per centum and not more than 20 per centum; 55 per centum of such parity price if such estimate exceeds a normal year’s domestic consumption and exports by more than 20 per centum and not more than 25 per centum; 52 per centum of such parity price if such estimate exceeds a normal year’s domestic consumption and exports by more than 25 per centum. Loans to cooperators and noncooperators within prescribed area.Loans shall be made to cooperators in the commercial corn-producing area at the applicable rate of the above schedule. Loans shall be made to noncooperators within such commercial corn-producing area but only during a marketing year in which farm marketing quotas are in effect and only on corn stored under seal pursuant to section 324, and the rate of such loans shall be 60 per centum of the applicableLoans to cooperators outside prescribed area. rate under the above schedule. Loans shall be made to cooperators outside such commercial corn-producing area, and the rate of such loans shall be 75 per centum of the applicable rate under the above schedule.
(e)Modification of rates. The rates of loans under subsections (b), (c), and
(d)on wheat, cotton, and corn not of standard grade, type, staple, or quality shall be increased or decreased in relation to the rates above provided by such amounts as the. Secretary prescribes as properly reflecting differences from standard in grade, type, staple, and quality.
(f)Cooperators, provisions governing. For the purposes of subsections (b), (c), and (d), a cooperator shall be a producer on whose farm the acreage planted to the commodity for the crop with respect to which the loan is made does not exceed the farm acreage allotment for the commodity under this title, or, in the case of loans upon corn to a producer outside the commercial corn-producing area, a producer on whose farm the acreage planted to soil-depleting crops does not exceed the farm acreage allotment for soil-depleting crops for the year in which the loan is made under the Soil Conservation and Domestic Allotment Producer innocently exceeding his allotment.Act, as amended. For the purposes of this subsection a producer shall not be deemed to have exceeded his farm acreage allotment unless such producer knowingly exceeded his farm acreage allotment.
(g)Adverse referendum on marketing quotas; loan restriction. Notwithstanding any other provision of this section, if the farmers producing cotton, wheat, corn, or rice indicate by vote in a referendum carried out pursuant to the provisions of this title that marketing quotas with respect to such commodity are opposed by more than one-third of the farmers voting in such referendum, no loan shall be made pursuant to this section with respect to the commodity during the period from the date on which the results of the referendum are proclaimed by the Secretary until the beginning of the second succeeeding 1 1So in original. marketing year for such commodity. This subsection shall not limit the availability or renewal of any loan previously made.
(h)Personal liability for deficiencies arising from sale of collateral, etc. No producer shall be personally liable for any deficiency arising from the sale of the collateral securing any loan under this section unless such loan was obtained through fraudulent representations by the producer.
(i)Facilities and personnel. In carrying out this section the Corporation is directed, with the consent of the Secretary, to utilize the services, facilities, and personnel of the Department. 52 Stat. 45 parity payments Sec. 303. If and when appropriations are made therefor, the SecretaryParity payments on normal production.*Post*, p. 819. is authorized and directed to make payments to producers of corn, wheat, cotton, rice, or tobacco, on their normal production of such commodities in amounts which, together with the proceeds thereof, will provide a return to such producers which is as nearly equal to parity price as the funds so made available will permit. AllApportionment of funds. funds available for such payments with respect to these commodities shall, unless otherwise provided by law, be apportioned to these commodities in proportion to the amount by which each fails to reach the parity income. Such payments shall be in addition to and not in substitution for any other payments authorized by law. consumer safeguardsConsumer safeguards. Sec. 304. The powers conferred under this Act shall not he used toProduction sufficient to maintain normal domestic human consumption. discourage the production of supplies of foods and fibers sufficient to maintain normal domestic human consumption as determined by the Secretary from the records of domestic human consumption in the years 1920 to 1929, inclusive, taking into consideration increased population, quantities of any commodity that were forced into domestic consumption by decline in exports during such period, current trends in domestic consumption and exports of particular commodities, and the quantities of substitutes available for domestic consumption within any general class of food commodities. In carryingContinuous supply adequate to meet consumer demand. out the purposes of this Act it shall be the duty of the Secretary to give due regard to the maintenance of a continuous and stable supply of agricultural commodities from domestic production adequate to meet consumer demand at prices fair to both producers and consumers. Subtitle B— Marketing QuotasSubtitle B—Marketing quotas. Part I—Tobacco. part I— marketing quotas—tobacco legislative finding Sec. 311
(a)The marketing of tobacco constitutes one of the greatLegislative finding. basic industries of the United States with ramifying activities which directly affect interstate and foreign commerce at every point, and stable conditions therein are necessary to the general welfare. Tobacco produced for market is sold on a Nationwide market and, with its products, moves almost wholly in interstate and foreign commerce from the producer to the ultimate consumer. The farmers producing such commodity are subject in their operations to uncontrollable natural causes, are widely scattered throughout the Nation, in many cases such farmers carry on their farming operations on borrowed money or leased lands, and are not so situated as to be able to organize effectively, as can labor and industry through unions and corporations enjoying Government protection and sanction. For these reasons, among others, the farmers are unable without Federal assistance to control effectively the orderly marketing of such commodity with the result that abnormally excessive supplies thereof are produced and dumped indiscriminately on the Nationwide market.
(b)The disorderly marketing of such abnormally excessive supplies affects, burdens, and obstructs interstate and foreign commerce by
(1)materially affecting the volume of such commodity marketed therein,
(2)disrupting the orderly marketing of such commodity therein,
(3)reducing the price for such commodity with consequent injury and destruction of interstate and foreign commerce in such 52 Stat. 46commodity, and
(4)causing a disparity between the prices for such commodity in interstate and foreign commerce and industrial products therein, with a consequent diminution of the volume of interstate and foreign commerce in industrial products.
(c)Whenever an abnormally excessive supply of tobacco exists, the marketing of such commodity by the producers thereof directly and substantially affects interstate and foreign commerce in such commodity and its products, and the operation of the provisions of this Part becomes necessary and appropriate in order to promote, foster, and maintain an orderly flow of such supply in interstate and foreign commerce. National marketing quota.national marketing quota Sec. 312. Proclamation by Secretary when supply exceeds reservo supply level.*Post*, p. 205.
(a)Whenever, on the 15th day of November of any calendar year, the Secretary finds that the total supply of tobacco as of the beginning of the marketing year then current exceeds the reserve supply level therefor, the Secretary shall proclaim the amount Date quota effective.of such total supply, and, beginning on the first day of the marketing year next following and continuing throughout such year, a national marketing quota shall be in effect for the tobacco marketed during Amount.such marketing year. The Secretary shall also determine and specify in such proclamation the amount of the national marketing quota in terms of the total quantity of tobacco which may be marketed, which will make available during such marketing year a supply of Date of proclamation.tobacco equal to the reserve supply level. Such proclamation shall be made not later than the 1st day of December in such year.
(b)Burley tobacco, and fire-cured and dark air-cured tobacco, marketing quota. Whenever in the case of burley tobacco, and fire-cured and dark air-cured tobacco, respectively, the total supply proclaimed pursuant to the provisions of subsection
(a)of this section exceeds the reserve supply level by more than 5 per centum and a national marketing quota is not in effect for such tobacco during the marketing year then current, a national marketing quota shall also be in effect for such tobacco marketed during the period from the date of such proclamation to the end of such current marketing year, Amount.and the Secretary shall determine and shall specify in such proclamation the amount of such national marketing quota in terms of the total quantity which may be marketed, which will make available during such current marketing year a supply of tobacco equal Effective date of subsection.to the reserve supply level. The provisions of this subsection shall not be effective prior to the beginning of the marketing year beginning in the calendar year 1938.
(c)Referendum. Within thirty days after the date of the issuance of the proclamation specified in subsection
(a)of this section, the Secretary shall conduct a referendum of farmers who were engaged in production of the crop of tobacco harvested prior to the holding of the referendum to determine whether such farmers are in favor of or opposed to such quota. If in the case of burley tobacco, or fire-cured and dark air-cured tobacco, respectively, farmers would be subject to a national quota for the next succeeding marketing year pursuant to the provisions of subsection
(a)of this section, and also to a national marketing quota for the current marketing year pursuant to the provisions of subsection
(b)of this section, the referendum shall Effect of vote.provide for voting with respect to each such quota. If more than one-third of the farmers voting in the referendum oppose such quota, the Secretary shall, prior to the 1st day of January, proclaim the result of the referendum and such quota shall not be effective thereafter. 52 Stat. 47
(d)In connection with the determination and proclamation ofQuota for 1938–1939 marketing year, determination and proclamation. any marketing quota for the 1938–1939 marketing year, the determination by the Secretary pursuant to subsection
(a)of this section shall be made and proclaimed within fifteen days following the date of the enactment of this Act, and the proclamation of the SecretaryReferendum. pursuant to subsection
(c)of this section shall be made within forty-five days following the date of the enactment of this Act.
(e)Marketing quotas shall not be in effect with respect to cigar-fillerCigar-filler tobacco, type 41.*Post*, p. 120. tobacco comprising type 41 during the marketing year beginning in 1938 or the marketing year beginning in 1939. apportionment of national marketing quotaApportionment of national marketing quota.Basis.*Post*, p, 202. Sec. 313.
(a)The national marketing quota for tobacco established pursuant to the provisions of section 312, less the amount to be allotted under subsection
(c)of this section, shall be apportioned by the Secretary among the several States on the basis of the total production of tobacco in each State during the five calendar years immediately preceding the calendar year in which the quota is proclaimed (plus, in applicable years, the normal production on the net acreage diverted under previous agricultural adjustment and conservation programs), with such adjustments as are determined to be necessary to make correction for abnormal conditions of production, for small farms, and for trends in production, giving due consideration to seed bed and other plant diseases during such five-year period: *Provided, however*, That to prevent in any case too*Proviso*.Flue-cured tobacco, basis for fixing quota. sharp and sudden reduction in acreage of tobacco production in any State, the marketing quota for flue-cured tobacco for any State for any marketing year shall not be reduced to a point less than 75 per centum of the production of flue-cured tobacco in such State for the year 1937.
(b)The Secretary shall provide, through the local committees, forAllotments through local committees.Basis. the allotment of the marketing quota for any State among the farms on which tobacco is produced, on the basis of the following: Past marketing of tobacco, making due allowance for drought, flood, hail, other abnormal weather conditions, plant bed, and other diseases; land, labor, and equipment available for the production of tobacco; crop-rotation practices; and the soil and other physical factors affecting the production of tobacco: *Provided*, That, except for farms on*Proviso*.Quota, except for farms on which tobacco produced for first time in 5 years. which for the first time in five years tobacco is produced to be marketed in the marketing year for which the quota is effective, the marketing quota for any farm shall not be less than the smaller of either
(1)three thousand two hundred pounds, in the case of flue-cured tobacco, and two thousand four hundred pounds, in the case of other kinds of tobacco, or
(2)the average tobacco production for the farm during the preceding three years, plus the average normal production of any tobacco acreage diverted under agricultural adjustment and conservation programs during such preceding three years.
(c)The Secretary shall provide, through local committees, forAllotment among farms producing tobacco for first time in 5 years. the allotment of not in excess of 5 per centum of the national marketing quota
(1)to farms in any State whether it has a State quota or not on which for the first time in five years tobacco is produced to be marketed in the year for which the quota is effective and (2)Increased allotments to small farms. for further increase of allotments to small farms pursuant to the proviso in subsection
(b)of this section on the basis of the following: Land, labor, and equipment available for the production of tobacco; crop-rotation practices; and the soil and other physical factors affecting the production of tobacco: *Provided*, That farm marketing quotas*Proviso*.Limitation. established pursuant to this subsection for farms on which tobacco is produced for the first time in five years shall not exceed 75 per 52 Stat. 48centum of the farm marketing quotas established pursuant to subsection
(b)of this section for farms which are similar with respect to the following: Land, labor, and equipment available for the production of tobacco, crop-rotation practices, and the soil and other physical factors affecting the production of tobacco.
(d)Transfers restricted. Farm marketing quotas may be transferred only in such manner and subject to such conditions as the Secretary may prescribe *Post*, p. 202.by regulations. Penalties.penalties Sec. 314. Marketing in excess of marketing quota for farm on which produced; exceptions. The marketing of any tobacco in excess of the marketing quota for the farm on which the tobacco is produced, except the marketing of any such tobacco for nicotine or other byproduct uses, Penalty.shall be subject to a penalty of 50 per centum of the market price of such tobacco on the date of such marketing, or, if the following rates are. higher, 3 cents per pound in the case of flue-cured, Maryland, or hurley, and 2 cents per pound in the case of all other kinds Payment of penalty.of tobacco. Such penalty shall be paid by the person who acquires such tobacco from the producer but an amount equivalent to the penalty may be deducted by the buyer from the price paid to the producer in case such tobacco is marketed by sale; or, if the tobacco is marketed by the producer through a warehouseman or other agent, such penalty shall be paid by such warehouseman or agent who may deduct an amount equivalent to the penalty from the price paid to *Proviso*.Tobacco marketed directly to person outside United States.the producer: *Provided*, That in case any tobacco is marketed directly to any person outside the United States the penalty shall be paid and remitted by the producer. part II—Part II—Marketing quotas—Corn. marketing quotas—corn legislative finding Sec. 321. Legislative finding. Corn is a basic source of food for the Nation, and corn produced in the commercial corn-producing area moves almost wholly in interstate and foreign commerce in the form of corn, livestock, and livestock products. Abnormally excessive and abnormally deficient supplies of corn acutely and directly affect, burden, and obstruct interstate and foreign commerce in corn, livestock, and livestock products. When abnormally excessive supplies exist, transportation facilities in interstate and foreign commerce are overtaxed, and the handling and processing facilities through which the flow of interstate and foreign commerce in corn, livestock, and livestock products is directed become acutely congested. Abnormally deficient supplies result in substantial decreases in livestock production and in an inadequate flow of livestock and livestock products in interstate and foreign commerce, with the consequence of unreasonably high prices to consumers. Violent fluctuations from year to year in the available supply of corn disrupt the balance between the supply of livestock and livestock products moving in interstate and foreign commerce and the supply of corn available for feeding. When available supplies of corn are excessive, corn prices are low and farmers overexpand livestock production in order to find outlets for corn. Such expansion, together with the relative scarcity and high price of corn, forces farmers to market abnormally excessive supplies of livestock in interstate commerce at sacrifice prices, endangering the financial stability of producers, and overtaxing handling and processing facilities through which the flow of interstate and foreign commerce in livestock and livestock products is directed. Such excessive marketings deplete livestock on farms, and livestock marketed in interstate and 52 Stat. 49foreign commerce consequently becomes abnormally low, with resultant high prices to consumers and danger to the financial stability of persons engaged in transporting, handling, and processing livestock in interstate and foreign commerce. These high prices in turn result in another overexpansion of livestock production. Recurring violent fluctuations in the price of corn resulting from corresponding violent fluctuations in the supply of corn directly affect the movement of livestock in interstate commerce from the range cattle regions to the regions where livestock is fattened for market in interstate and foreign commerce, and also directly affect the movement in interstate commerce of corn marketed as corn which is transported from the regions where produced to the regions where livestock is fattened for market in interstate and foreign commerce. Substantially all the corn moving in interstate commerce, substantially all the corn fed to livestock transported in interstate commerce for fattening, and substantially all the corn fed to livestock marketed in interstate and foreign commerce, is produced in the commercial corn-producing area. Substantially all the corn produced in the commercial corn-producing area, with the exception of a comparatively small amount used for farm consumption, is either sold or transported in interstate commerce, or is fed to livestock transported in interstate commerce for feeding, or is fed to livestock marketed in interstate and foreign commerce. Almost all the corn produced outside the commercial corn-producing area is either consumed, or is fed to livestock which is consumed, in the State in which such corn is produced. The conditions affecting the production and marketing of corn and the livestock products of corn are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of disparities between the supplies of livestock moving in interstate and foreign commerce and the supply of corn available for feeding, and provide for orderly marketing of corn in interstate and foreign commerce and livestock and livestock products in interstate and foreign commerce. The national public interest requires that the burdens on interstate and foreign commerce above described be removed by the exercise of Federal power. By reason of the administrative and physical impracticability of regulating the movement of livestock and livestock products in interstate and foreign commerce and the inadequacy of any such regulation to remove such burdens, such power can be feasibly exercised only by providing for the withholding from market of excessive and burdensome supplies of corn in times of excessive production, and providing a reserve supply of com available for market in times of deficient production, in order that a stable and continuous flow of livestock and livestock products in interstate and foreign commerce may at all times be assured and maintained. farm marketing quotasFarm marketing quotas. Sec. 322.
(a)Whenever in any calendar year the Secretary determinesWhen effective; termination. from available statistics of the Department, including the August production estimate officially published by the Division of Crop and Livestock Estimates of the Bureau of Agricultural Economics of the Department, that the total supply of corn as of October 1 will exceed the normal supply thereof by more than 10 per centum, marketing quotas shall be in effect in the commercial corn-producing area for the crop of corn grown in such area in such calendar year, and shall remain in effect until terminated in accordance with the provisions of this title. 52 Stat. 50
(b)Determination of acreage. The Secretary shall determine, on the basis of the estimated average yield of corn in such area for such crop, the acreage in such area which the Secretary determines would make available for the marketing year beginning October 1 a supply of corn (together with the estimated production of corn in the United States outside such “Marketing percentage”area) equal to the normal supply. The percentage which the number of acres so determined is of the total number of acres of the *Post*, p. 52.acreage allotment under section 328 shall be proclaimed by the Secretary. Such percentage is referred to herein as the “marketing percentage”.
(c)Proclamation by Secretary. The Secretary shall proclaim his determinations of facts under subsection
(a)and his determination of the marketing percentage under subsection
(b)not later than August 15.
(d)Referendum. Within twenty days after the date of the issuance of the proclamation provided for in subsection
(c)of this section, the Secretary shall conduct a referendum, by secret ballot, of farmers who would be subject to such quotas to determine whether such Effect of vote.farmers are in favor of or opposed to such quotas. If more than one-third of the farmers voting in the referendum oppose such quotas, the Secretary shall, prior to September 10, proclaim the result of the referendum and such quotas shall not become effective.
(e)September production estimates, use of, in determining continuation of marketing quotas. Whenever it shall appear from the September production estimates officially published by the Division of Crop and Livestock Estimates of the Bureau of Agricultural Economics of the Department, that the total supply of corn as of the beginning of the next succeeding marketing year will not exceed the normal supply by more than 10 per centum thereof, the Secretary shall proclaim such fact prior to September 20, if farm marketing quotas have been proclaimed for such marketing year. Thereupon such quotas shall not become effective. Amount of farm marketing quota.amount of farm marketing quota Sec. 323. Computation.
(a)The farm marketing quota for any farm with respect to any crop of corn shall be an amount of corn equal to the sum of—
(1)The amount of corn used as silage; and
(2)The actual production of the acreage of corn not used as silage less the amount required for farm consumption and less the storage amount applicable to the farm as ascertained under section 324.
(b)Quota not applicable; when. No farm marketing quota with respect to any crop of com shall be applicable to any farm on which the normal production of the acreage planted to corn is less than three hundred bushels. storage amountsStorage amounts. Sec. 324. Determination of.
(a)If the acreage of corn on the farm does not exceed the marketing percentage of the farm acreage allotment, there shall be no storage amount.
(b)If the acreage of corn on the farm exceeds the marketing percentage of the farm acreage allotment, the storage amount shall be a number of bushels equal to the smallest of the following amounts—
(1)The normal production of the acreage of corn on the farm in excess of the marketing percentage of the farm acreage allotment;
(2)The amount by which the actual production of the acreage of corn on the farm exceeds the normal production of the marketing percentage of the farm acreage allotment; or
(3)The amount of the actual production of the acreage of corn on the farm not used for silage. 52 Stat. 51
(c)If the storage amount ascertained under subsection
(b)is less than 100 bushels, there shall be no storage amount. penaltiesPenalties. Sec. 325.
(a)Any farmer who, while any farm marketing quota isFarmer marketing amount in excess of aggregate quotas. in effect for his farm with respect to any crop of corn, markets corn produced on the farm in an amount which is in excess of the aggregate of the farm marketing quotas for the farm in effect at such time, shall be subject to a penalty of 15 cents per bushel of the excessPenalty.Liability based on storage provisions. so marketed. Liability for such penalty shall not accrue until the amount of corn stored under seal on such farm or in storage cribs rented by the farmer or under his control is less than the storage amount applicable to such crop plus the storage amounts, if any, applicable to other crops.
(b)If there is stored under seal on the farm or in such cribs anPresumption of non-violation; when. amount of corn equal at least to the storage amount applicable to such crop plus such storage amounts applicable to such other crops, the farmer shall be presumed not to be violating the provisions of subsection (a). When the amount of corn stored under seal on thePresumption of violation. farm or in such cribs is less than the storage amount applicable to such crop plus such storage amounts applicable to such other crops, the farmer shall be presumed to have marketed, while farm marketing quotas were in effect, corn in violation of the provisions of subsection
(a)to the extent that the amount of corn so stored is less than the aggregate of such storage amounts. In any action brought toBurden of proof. enforce the collection of penalties provided for in this section, the farmer, to the extent that the amount of corn so stored is less than the aggregate of such storage amounts shall have the burden of proving that he did not market corn in violation of the provisions of subsection (a).
(c)For the purposes of this Part, corn shall be deemed to beStorage regulations. stored by the farmer under seal only if stored in such manner as to conform to the requirements of such regulations as the Secretary shall prescribe in order more effectively to administer this Part. adjustment of farm marketing quotas Sec. 326.
(a)Whenever in any county or other area the SecretaryAdjustment of farm marketing quotas. finds that the actual production of corn plus the amount of corn stored under seal in such county or other area is less than the normal production of the marketing percentage of the farm acreage allotments in such county or other area, the Secretary shall terminate farm marketing quotas for corn in such county or other area.
(b)Whenever, upon any farm, the actual production of the acreageProduction less than normal production of marketing percentage of farm acreage allotment. of corn is less than the normal production of the marketing percentage of the farm acreage allotment, there may be marketed, without penalty, from such farm an amount of corn from the corn stored under seal pursuant to section 324 which, together with the actual*Ante*, p. 50. production of the then current crop, will equal the normal production of the marketing percentage of the farm acreage allotment.
(c)Whenever, in any marketing year, marketing quotas are notWhen quotas not in effect, termination of previous quotas. in effect with respect to the crop of corn produced in the calendar year in which such marketing year begins, all marketing quotas applicable to previous crops of corn shall be terminated. proclamations of supplies and commercial corn-producing area Sec. 327. Not later than September 1, the Secretary shall ascertainProclamations of supplies and commercia1 corn-producing area.*Post*, p. 205. and proclaim the total supply, the normal supply, and the reserve supply level for such marketing year. Not later than February 1, 52 Stat. 52the Secretary shall ascertain and proclaim the commercial corn-producing area. The ascertainment and proclamation of the commercial corn-producing area for 1938 shall be made not later than ten days after the date of the enactment of this Act. acreage allotment Sec. 328. Acreage allotment.*Post*, pp. 202, 205. The acreage allotment of corn for any calendar year shall be that acreage in the commercial corn-producing area which, on the basis of the average yield for corn in such area during the ten calendar years immediately preceding such calendar year will produce an amount of corn in such area, which the Secretary determines will, together with corn produced in the United States outside the commercial corn-producing area, make available a supply for the marketing year beginning in such calendar year, equal to the reserve supply level. The Secretary shall proclaim such acreage allotment not later than February 1 of the calendar year for which such acreage allotment was determined. The proclamation of the acreage allotment for 1938 shall be made as soon as practicable after the date of the enactment of this Act. apportionment of acreage allotment Sec. 329. Apportionment of acreage allotment.
(a)The acreage allotment for corn shall be apportioned by the Secretary among the counties in the commercial corn-producing area on the basis of the acreage seeded for the production of corn during the ten calendar years immediately preceding the calendar year in which the apportionment is determined (plus, in applicable years, the acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and for trends in acreage during such*Proviso*.Limitation. period and for the promotion of soil-conservation practices: *Provided*, That any downward adjustment for the promotion of soil-conservation practices shall not exceed 2 per centum of the total acreage allotment that would otherwise be made to such county.
(b)County allotment. The acreage allotment to the county for corn shall be apportioned by the Secretary, through the local committees, among the farms within the county on the basis of tillable acreage, crop-rotation practices, type of soil, and topography. Part III—Marketing quotas—Wheat. part III— marketing quotas—wheat legislative findings Sec. 331. Legislative findings. 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. 52 Stat. 53 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. 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, and to provide for an adequate flow of wheat end its products in interstate and foreign commerce. The provisions hereof for regulation of marketings by producers of wheat whenever an abnormally excessive supply of such commodity exists are necessary in order to maintain an orderly flow of wheat in interstate and foreign commerce under such conditions. proclamations of supplies and allotments Sec. 332. Not later than July 15 of each marketing year for wheat,Proclamations of supplies and allotments. the Secretary shall ascertain and proclaim the total supply and the normal supply of wheat for such marketing year, and the national acreage allotment for the next crop of wheat. national acreage allotment Sec. 333. The national acreage allotment for any crop of wheatNational acreage allotment.*Post*, p. 775. shall be that acreage which the Secretary determines will, on the basis of the national average yield for wheat, produce an amount thereof adequate, together with the estimated carry-over at the beginning of the marketing year for such crop, to make available a supply for such marketing year equal to a normal year’s domestic consumption and exports plus 30 per centum thereof. The national acreage allotment for wheat for 1938 shall be sixty-two million five hundred thousand acres. apportionment of national acreage allotment Sec. 334.
(a)The national acreage allotment for wheat shall beApportionment. apportioned by the Secretary among the several States on the basis of the acreage seeded for the production of wheat during the ten calendar years immediately preceding the calendar year in which the national acreage allotment is determined (plus, in applicable years, the acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and for trends in acreage during such period. 52 Stat. 54
(b)State acreage allotment.*Post*, p. 203. The State acreage allotment for wheat shall be apportioned by the Secretary among the counties in the State, on the basis of the acreage seeded for the production of wheat during the ten calendar years immediately preceding the calendar year in which the national acreage allotment is determined (plus, in applicable years, the net acreage, diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and trends in acreage during such period and for the promotion of soil-conservation practices.
(c)County allotment. The allotment to the county shall be apportioned by the Secretary, through the local committees, among the farms within the county on the basis of tillable acres, crop-rotation practices, type of soil, and topography. Not more than 3 per centum of such county allotment shall be apportioned to farms on which wheat has not been planted during any of the three marketing years immediately preceding the marketing year in which the allotment is made. Marketing quotas.marketing quotas Sec. 335. Effective upon proclamation of the Secretary.
(a)Whenever it shall appear that the total supply of wheat as of the beginning of any marketing year will exceed a normal year’s domestic consumption and exports by more than 35 per centum, the Secretary shall, not later than the May 15 prior to the beginning of such marketing year, proclaim such fact and, during the marketing year beginning July 1 and continuing throughout such marketing year, a national marketing quota shall be in effect with Contents of proclamation.respect to the marketing of wheat. The Secretary shall ascertain and specify in the proclamation the amount of the national marketing quota in terms of a total quantity of wheat and also in terms of a marketing percentage of the national acreage allotment for the current crop which he determines will, on the basis of the national average yield of wheat, produce the amount of the national marketing quota. Marketing quotas for any marketing year shall be in effect with respect to wheat harvested in the calendar year in which such marketing year begins notwithstanding that the wheat is marketed prior to the beginning of such marketing year. No marketing quota with respect to the marketing of wheat shall be in effect for the marketing year beginning July 1, 1938, unless prior to the date of the proclamation of the Secretary, provision has been made by law for the payment, in whole or in part, in 1938 of parity payments with respect to wheat.
(b)Amount of national marketing quota, computation. The amount of the national marketing quota for wheat shall be equal to a normal year’s domestic consumption and exports plus 30 per centum thereof, less the sum of
(1)the estimated carry-over of wheat as of the beginning of the marketing year with respect to which the quota is proclaimed and
(2)the estimated amount of wheat which will be used on farms as seed or livestock feed during the marketing year.
(c)Farm marketing quota, computation. The farm marketin quota for any farm for any marketing year shall be a number of bushels of wheat equal to the sum of—
(1)A number of bushels equal to the normal production of a number of acres determined by applying the marketing percentage specified in the quota proclamation to the farm acreage allotment for the current crop; and
(2)A number of bushels of wheat equal to the amount, or part thereof, of wheat from any previous crop which the farmer as on hand which, had such amount, or part thereof, been marketed during the preceding marketing year in addition to the wheat actually marketed during such preceding marketing year, could have been marketed without penalty. 52 Stat. 55 In no event shall the farm marketing quota for any farm be lessMinimum farm marketing quota. than the normal production of half the farm acreage allotment for the farm.
(d)No farm marketing quota with respect to wheat shall beSmall crop farms. applicable in any marketing year to any farm on which the normal production of the acreage planted to wheat of the current crop is less than one hundred bushels. referendum Sec. 336. Between the date of the issuance of any proclamationReferendum. of any national marketing quota for wheat and June 10, the Secretary shall conduct a referendum, by secret ballot, of farmers who will be subject to the quota specified therein to determine, whether such farmers favor or oppose such quota. If more than one-thirdEffect of vote on quote. of the farmers voting in the referendum oppose such quota, the Secretary shall, prior to the effective date of such quota, by proclamation suspend the operation of the national marketing quotas with respect to wheat. adjustment and suspension of quotas Sec. 337.
(a)If the total supply as proclaimed by the SecretaryAdjustment and suspension of quotas. within forty-five days after the beginning of the marketing year is less than that specified in the proclamation by the Secretary under section 335 (a), then the national marketing quota specified in the proclamation under such section shall be increased accordingly.
(b)Whenever it shall appear from either the July or the August production estimates, officially published by the Division of Crop and Livestock Estimates of the. Bureau of Agricultural Economics of the Department, that the total supply of wheat as of the beginning of the marketing year was less than a normal year’s domestic consumption and exports plus 30 per centum thereof, the Secretary shall proclaim such fact prior to July 20, or August 20, as the case may be, if farm marketing quotas have been announced with respect to the crop grown in such calendar year. Thereupon such quotas shall become ineffective. transfer of quotas Sec. 338. Farm marketing quotas for wheat shall not be transferable,Transfer of quotes. but, in accordance with regulations prescribed by the Secretary for such purpose, any farm marketing quota in excess of the supply of wheat for such farm for any marketing year may be, allocated to other farms on which the acreage allotment has not been exceeded. penalties Sec. 339. Any farmer who, while farm marketing quotas are inPenalties. effect, markets wheat in excess of the farm marketing quota for the farm on which such wheat was produced, shall be subject to a penalty of 15 cents per bushel of the excess so marketed. Part IV—Marketing quotas—Cotton. part IV— marketing quotas—cotton legislative findings Sec. 341. American cotton is a basic source of clothing and industrialLegislative findings. products used by every person in the United States and by substantial numbers of people in foreign countries. American cotton is sold on a worldwide market and moves from the places of pro52 Stat. 56 duction almost entirely in interstate and foreign commerce to processing establishments located throughout the world at places outside the State where the cotton is produced. Fluctuations in supplies of cotton and the marketing of excessive supplies of cotton in interstate and foreign commerce disrupt the orderly marketing of cotton in such commerce with consequent, injury to and destruction of such commerce. Excessive supplies of cotton directly and materially affect the volume of cotton moving in interstate and foreign commerce and cause disparity in prices of cotton and industrial products moving in interstate and foreign commerce with consequent diminution of the volume of such commerce in industrial products. The conditions affecting the production and marketing of cotton are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of excessive supplies of cotton and fluctuations in supplies, cannot prevent indiscriminate dumping of excessive supplies on the Nationwide and foreign markets, cannot maintain normal carry-overs of cotton, and cannot provide for the orderly marketing of cotton in interstate and foreign commerce. It is in the interest of the general welfare that interstate and foreign commerce in cotton be protected from the burdens caused by the marketing of excessive supplies of cotton in such commerce, that a supply of cotton 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 excessive supplies of cotton. The provisions of this Part affording a cooperative plan to cotton producers are necessary and appropriate to prevent the burdens on interstate and foreign commerce caused by the marketing in such commerce of excessive supplies, and to promote, foster, and maintain an orderly flow of an adequate supply of cotton in such commerce. finding and proclamation of supplies, and so forth Sec. 342. Finding and proclamation of supplies, etc. Not later than November 15 of each year the Secretary shall find and proclaim
(a)the total supply, the normal supply, and the carry-over of cotton as of August 1 of such year,
(b)the probable domestic consumption of American cotton during the marketing year commencing August 1 of such year,
(c)the probable exports of American cotton during such marketing year, and
(d)the estimated carry-over of cotton as of the next succeeding August 1. For the marketing year 1937–1938 the Secretary shall make all the findings and proclamations provided for in this section not later than ten days after the date of the enactment of this Act. amount of national allotment Sec. 343. Amount of national allotment.
(a)Not later than November 15 of each year the Secretary shall find and proclaim the amount of the national allotment of cotton for the succeeding calendar year in terms of standard bales of five hundred pounds gross weight. The national allotment shall be the number of bales of cotton adequate, together with the estimated carry-over as of August 1 of such succeeding calendar year, to make available a supply of cotton, for the marketing year begi52 Stat. 57 ning on such August 1, equal to the normal supply. The findingFinding and proclamation of, for 1938; time limitation. and proclamation of the national allotment for the calendar year 1938 shall be made not later than ten days after the date of the enactment of this Act.
(b)If the national allotment for 1938 or 1939 is determined to beDetermination of, for 1938 or 1939. less than ten million bales, the national allotment for such year shall be ten million bales for such year, as the case may be. If the national allotment for 1938 or 1939 is determined to be more than eleven million five hundred thousand bales, it shall be eleven million five hundred thousand bales for such year, as the case may be.
(c)Notwithstanding the foregoing provisions of this section, theIncrease, for 1938 and 1939.*Post*, p. 203. national allotment for 1938 and for 1939 shall be increased by a number of bales equal to the production of the acres allotted under section 344
(e)for such year. apportionment of national allotmentApportionment of national allotment. Sec. 344.
(a)The national allotment for cotton for each yearBasis. (excluding that portion of the national allotment provided for in section 343 (c)) shall be apportioned by the Secretary among the several States on the basis of the average, for the five, years preceding the year in which the national allotment is determined, of the normal production of cotton in each State. The normal productionNormal production defined. of a State for a year shall be
(1)the quantity produced therein plus
(2)the normal yield of the acres diverted in each county in the State under the previous agricultural adjustment or conservation programs. The normal yield of the acres diverted in any county in any year shall be the average yield per acre of the planted acres in such county in such year times the number of acres diverted in such county in such year.
(b)The Secretary shall ascertain, on the basis of the average yield“State acreage allotment.”*Post*, p. 203. per acre in each State, a number of acres in such State which will produce a number of bales equal to the allotment made to the State under subsection (a). Such number of acres is referred to as the “State acreage allotment”. The average yield per acre for any State shall be determined on the basis of the average of the normal production for the State for the years used in computing the allotment to the State, and the average, for the same period, of the acres planted and the acres diverted in the State.
(1)The State acreage allotment (less the amount requiredCounty apportionment. for apportionment under paragraph (2)) shall be apportioned annually by the Secretary to the counties in the State. The apportionment to the counties shall be made on the basis of the acreage planted to cotton during the five calendar years immediately preceding the calendar year in which the State allotment is apportioned (plus, in applicable years, the acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and trends in acreage during such five-year period.
(2)Not more than 2 per centum of the State acreage allotmentFarms not used for cotton production during preceding three years. shall be apportioned to farms in such State which were not used for cotton production during any of the three calendar years immediately preceding the year for which the allotment is made, on the basis of land, labor, and equipment available for the production of cotton; crop rotation practices; and the soil and other physical facilities affecting the production of cotton. 52 Stat. 58
(d)Allotment to county, apportionment among farms through local committees.Basis. The allotment apportioned to the county under subsection
(c)(1), plus any amount allotted to the county under subsection (e), shall be apportioned by the Secretary, through the local committees, among the farms within the county on the following basis:
(1)To each farm on which cotton has been planted during any of the previous three years there shall be allotted the smaller of the following—
(A)Five acres; or
(B)The highest number of acres planted to cotton (plus the acres diverted from the production of cotton under the agricultural adjustment or conservation programs) in any year of such three-year period;
(2)Allotments under other provisions. Not more than 3 per centum of the amount remaining, after making the allotments provided for under paragraph (1), shall be allotted, upon such basis as the Secretary deems fair and equitable, to farms (other than farms to which an allotment has been made under paragraph
(1)(B)) to which an allotment of not exceeding fifteen acres may be made under other provisions of this subsection; and
(3)Remainder to farms on which cotton planted during any of previous 3 years; exception.*Post*, p. 203. The remainder of the total amount available to the county shall be allotted to farms on which cotton has been planted during any of the previous three years (except farms to which an allotment has been made under paragraph
(1)(B)). The allotment to each farm under this paragraph, together with the amount of the allotment to such farm under paragraph
(1)(A), shall be a prescribed percentage (which percentage shall be the same for all such farms in the county or administrative area) of the acreage, during the preceding year, on the farm which is tilled annually or in regular rotation, excluding from such acreage the acres devoted to the production of wheat, tobacco, or rice for market or for feeding to livestock for market: *Provided however*,*Proviso*.Acreage allotment restriction. That if a farm would be allotted under this paragraph an acreage, together with the amount of the allotment to such farm under paragraph
(1)(A), in excess of the largest acreage planted to cotton plus the acreage diverted from the production of cotton under the agricultural adjustment or conservation program during any of the preceding three years, the acreage allotment for such farm shall not exceed such largest acreage so planted and diverted in any such year.
(e)Allotment to counties for 1938 and 1939.*Post*, p. 203. For 1938 and 1939, the Secretary shall allot to the several counties, to which an apportionment is made under subsection (c), a number of acres required to provide a total acreage for allotment under this section to such counties of not less than 60 per centum of the sum of
(1)the acreage planted to cotton in such counties in 1937, plus
(2)the acreage therein diverted from cotton production in 1937 under the agricultural adjustment and conservation program. The acreage so diverted shall be estimated in case data are not available at the time of making such allotment.
(f)Consideration of different conditions in apportioning allotments. In apportioning the county allotment among the farms within the county, the Secretary, through the local committees, shall take into consideration different conditions within separate administrative areas within a county if any exist, including types, kinds, and productivity of the soil so as to prevent discrimination among the *Post*, p. 203.administrative areas of the county. marketing quotas Sec. 345. Marketing quotas.*Post*, p. 205. Whenever the Secretary determines that the total supply of cotton for any marketing year exceeds by more than 7 per centum the normal supply thereof for such marketing year, the 52 Stat. 59Secretary shall proclaim such fact not later than November 15 of such marketing year (or, in case of the marketing year 1937–1938, within ten clays after the date of enactment of this Act), and marketing quotas shall be in effect during the next succeeding marketing year with respect to the marketing of cotton. Cotton produced in the calendar year in which such marketing year begins shall be subject to the quotas in effect for such marketing year notwithstanding that it may be marketed prior to August 1. amount of farm marketing quotas Sec. 346.
(a)The farm marketing quota for cotton for anyAmount of farm marketing quotas. farm for any marketing year shall be a number of bales of cotton equal to the sum of—
(1)A number of bales equal to the normal production or the actual production, whichever is the greater, of the farm acreage allotment, and
(2)A number of bales equal to the amount, or part thereof, of cotton from any previous crop which the fanner has on hand, which, had such amount, or part thereof, been marketed during the preceding marketing year in addition to the cotton actually marketed during such preceding marketing year, could have been marketed without penalty.
(b)The penalties provided for in section 348 shall not apply to the marketing of cotton produced on any farm for which a farm acreage allotment has been made for the current crop if the production of the current crop does not exceed one thousand pounds of lint cotton. referendum Sec. 347. Not later than December 15 of any calendar year in whichReferendum.*Post*, p. 205. a proclamation of farm marketing quotas pursuant to the provisions of this Part has been made, the Secretary shall conduct a referendum, by secret ballot, of farmers who were engaged in production of the crop harvested prior to the holding of the referendum to determine whether they favor or oppose such quotas. If more than one-third of the farmers voting in the referendum oppose such quotas, the Secretary shall, prior to the end of such calendar year, proclaim the result of the referendum, and upon such proclamation the quotas shall become ineffective. If a proclamation under section 345 is made with respect to the 1938 crop, the referendum with respect to such crop shall be held not later than thirty days after the date of the enactment of this Act and the result thereof shall be proclaimed not later than forty-five days after such date. penalties Sec. 348. Any farmer who, while farm marketing quotas are inPenalties. effect, markets cotton in excess of the farm marketing quota for the marketing year for the farm on which such cotton was produced, shall be subject to the following penalties with respect to the excess so marketed: 2 cents per pound if marketed during the first marketing year when farm marketing quotas are in effect; and 3 cents per pound if marketed during any subsequent year, except that the penalty shall be 2 cents per pound if cotton of the crop subject to penalty in the first year is marketed subject to penalty in any subsequent year. ineligibility for payments Sec. 349.
(a)Any person who knowingly plants cotton on hisIneligibility for payments. farm in any year on acreage in excess of the farm acreage allotment 52 Stat. 60 *Ante*, p. 57.for cotton for the farm for such year under section 344 shall not be eligible for any payment for such year under ths Soil Conservation and Domestic Allotment Act, as amended.
(b)Sworn statement to be filed.*Post*, p. 204. All persons applying for any payment of money under the Soil Conservation and Domestic Allotment Act, as amended, shall file with the application a statement verified by affidavit that the applicant has not knowingly planted, during the current year, cotton on land on his farm in excess of the acreage allotted to the farm under section 344 for such year. Any person who knowingly swears falsely in any statement required under this subsection shall be guilty of perjury. long staple cotton Sec. 350. Long staple cotton. The provisions of this Part shall not apply to cotton the staple of which is 1½ inches or more in length. part V—Part V—Marketing quotas—Rice. marketing quotas—rice legislative finding Sec. 351. Legislative finding.
(a)The marketing of rice constitutes one of the great basic industries of the United States with ramifying activities which directly affect interstate and foreign commerce at every point, and stable conditions therein are necessary to the general welfare. Rice produced for market is sold on a Nationwide market, and, with its products, moves almost wholly in interstate and foreign commerce from the producer to the ultimate consumer. The farmers producing such commodity are subject in their operations to uncontrollable natural causes, in many cases such farmers carry on their farming operations on borrowed money or leased lands, and are not so situated as to be able to organize effectively, as can labor and industry, through unions and corporations enjoying Government sanction and protection for joint economic action. For these reasons, among others, the farmers are unable, without Federal assistance, to control effectively the orderly marketing of such commodity with the result that abnormally excessive supplies thereof are produced and dumped indiscriminately on the Nationwide market.
(b)The disorderly marketing of such abnormally excessive supplies affects, burdens, and obstructs interstate and foreign commerce by
(1)materially affecting the volume of such commodity marketed therein,
(2)disrupting the orderly marketing of such commodity therein,
(3)reducing the. prices for such commodity with consequent injury and destruction of such commerce in such commodity, and
(4)causing a disparity between the prices for such commodity in interstate and foreign commerce and industrial products therein, with a consequent diminution of the volume of interstate and foreign commerce in industrial products.
(c)Whenever an abnormally excessive supply of rice exists, the marketing of such commodity by the producers thereof directly and substantially affects interstate and foreign commerce in such commodity and its products, and the operation of the provisions of this Part becomes necessary and appropriate in order to promote, foster, and maintain an orderly flow of such supply in interstate and foreign commerce. national acreage allotment Sec. 352. National acreage allotment. The national acreage allotment of rice for any calendar year shall be that acreage which the Secretary determines will, on the basis of the national average yield of rice for the five calendar years immediately preceding the calendar year for which such 52 Stat. 61national average yield is determined, produce an amount of rice adequate, together with the estimated carry-over from the marketing year ending in such calendar year, to make available a supply for the marketing year commencing in such calendar year not less than the normal supply. Such national acreage allotment shall be proclaimed not later than December 31 of each year. apportionment of national acreage allotment Sec. 353.
(a)The national acreage allotment of rice for each calendarApportionment of national acreage allotment. year shall be apportioned by the Secretary among the several States in which rice is produced in proportion to the average number of acres of rice in each State during the five-year period immediately preceding the calendar year for which such national acreage allotment of rice is determined (plus, in applicable years, the acreage diverted under previous agricultural adjustment and conservation programs) with adjustments for trends in acreage during the applicable period.
(b)Not less than 97 per centum of the acreage allotted to anyAllotments to States, apportionment through local, etc., committees. State shall be apportioned annually by the Secretary through local and State committees of farmers among the persons producing rice within such State on the basis of past production of rice; land, labor, and available equipment for the production of rice; crop-rotation practices, soil fertility, and other physical factors affecting the production of rice: *Provided*, That not exceeding 3 per centum of the*Provisos*.Apportionment to persons producing rice for first time in five years. acreage allotted to each State shall be apportioned annually by the Secretary through local and State committees of farmers among persons who for the first time in the past five years are producing rice on the basis of the applicable standards of apportionment set forth in this subsection: *Provided further*, That a person producingAcreage restriction. rice for the first time in five years shall not be allotted an acreage in excess of 75 per centum of the allotment that would be made to him if he were not producing rice for the first time in such five years. domestic allotment of rice Sec. 354.
(a)Not later than December 31 of each year the SecretaryDomestic allotment of rice. shall ascertain from the latest available statistics of the Department and shall proclaim the total amount of rice which will be needed during the next succeeding marketing year to meet the requirements of consumers in the United States. Such amount is hereinafter referred to as the “domestic allotment of rice”.
(b)The domestic allotment of rice for each marketing year shallAnnual apportionment among rice-producing States. be apportioned by the Secretary among the several States in which rice is produced in proportion to the average amount of rice produced in each State during the five-year period including the calendar year in which such domestic allotment is announced (plus, in applicable years, the normal production of any acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and trends in acreage during the applicable period.
(c)The Secretary shall provide, through local and State committeesApportionment of allotment to producers; basis. of farmers, for the allotment of each State apportionment among persons producing rice in such State. The apportionment of the domestic allotment of rice among persons producing rice in each State shall be on the basis of the aggregate normal yields of the acreage allotments established with respect to such persons. 52 Stat. 62 marketing quotas Sec. 355. Marketing quota.*Ante*, p. 61.
(a)If at the time of any proclamation made under the provisions of section 354
(a)it shall appear from the latest available statistics of the Department that the total supply of rice exceeds the normal supply thereof for the current marketing year by more Secretary’s proclamation; effect of.than 10 per centum of such normal supply, the Secretary shall also proclaim that, beginning on the first day of the marketing year next following and continuing throughout such year a national marketing quota shall be in effect for marketings of rice by producers: *Provided*, *Proviso*.No quota, marketing year commencing August 1, 1938.Amount of national quota.That no marketing quota shall be in effect for the marketing year commencing August 1, 1938. The Secretary shall also ascertain and specify in such proclamation the amount of the national marketing quota in terms of the total quantity thereof which may be marketed by producers which shall be that amount of rice which the Secretary determines will make available during such marketing year a normal supply.
(b)Referendum. Within thirty days after the date of the issuance of the proclamation specified in subsection
(a)of this section, the Secretary shall conduct a referendum, by secret ballot, of producers who would be subject to the national marketing quota for rice to determine whether such producers are in favor of or opposed to such Effect of vote on quota.quota. If more than one-third of the producers voting in the referendum oppose such quota, the Secretary shall, prior to the 15th day of February, proclaim the result of the referendum, and such quota shall not become effective.
(c)Apportionment among States and rice producers.*Ante*, p. 61. The national marketing quota shall be apportioned among States and persons producing rice in each State, including new producers, in the manner and upon the basis set forth in section 354 for the apportionment of the domestic allotment of rice.
(d)Transfers. Marketing quotas may be transferred only in such manner and subject to such conditions as the Secretary may prescribe by regulations. penalties Sec. 356. Penalties. Any producer who markets rice in excess of his marketing quota shall be subject to a penalty of one-quarter of 1 cent per pound of the excess so marketed. Subtitle C—Administrative provisions. Subtitle C— Administrative Provisions Part I—Publication and review of quotas. part I— publication and review of quotas application of part Sec. 361. Application of Part. This Part shall apply to the publication and review of farm marketing quotas established for tobacco, corn, wheat, cotton, *Ante*, p. 45.and rice, established under subtitle B. publication and notice of quota Sec. 362. Publication and notice of quota. All acreage allotments, and the farm marketing quotas established for farms in a county or other local administrative area shall, in accordance with regulations of the Secretary, be made and kept freely available for public inspection in such county or other local administrative area. An additional copy of this information shall be kept available in the office of the county agricultural extension agent or with the chairman of the local committee. Notice of the farm marketing quota of his farm shall be mailed to the farmer. 52 Stat. 63 review by review committee Sec. 363. Any farmer who is dissatisfied with his farm marketingReview by review committee. quota may, within fifteen days after mailing to him of notice as provided in section 362, have such quota reviewed by a local review*Ante*, p. 62. committee composed of three farmers appointed by the Secretary. Such committee shall not include any member of the local committee which determined the farm acreage allotment, the normal yield, or the farm marketing quota for such farm. Unless application for review is made within such period, the original determination of the farm marketing quota shall be final. review committee Sec. 364. The members of the review committee shall receive asReview committee members, compensation. compensation for their services the same per diem as that received by the members of the committee utilized for the purposes of the Soil Conservation and Domestic Allotment Act, as amended. The members of the review committee shall not be entitled to receive compensation for more than thirty days in any one year. institution of proceedings Sec. 365. If the farmer is dissatisfied with the determination of theInstitution of proceedings for review. review committee, he may, within fifteen days after a notice of such determination is mailed to him by registered mail, file a bill in equity against the review committee as defendant in the United States district court, or institute proceedings for review in any court of record of the State having general jurisdiction, sitting in the county or the district in which his farm is located, for the purpose of obtaining a review of such determination. Bond shall be given in an amount andBond. with surety satisfactory to the court to secure the United States for the costs of the proceeding. The bill of complaint in such proceedingBill of complaint, service of. may be served by delivering a copy thereof to any one of the members of the review committee. Thereupon the review committee shallCertification and filing of transcript of record. certify and file in the court a transcript of the record upon which the determination complained of was made, together with its findings of fact. court review Sec. 366. The review by the court shall be limited to questions ofCourt review. law, and the findings of fact by the review committee, if supported by evidence, shall be conclusive. If application is made to the court for leave to adduce additional evidence, and it is shown to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for failure to adduce such evidence in the hearing before the review committee, the court may direct such additional evidence to be taken before the review committee in such manner and upon such terms and conditions as to the court may seem proper. The review committee may modify its findings of fact or its determination by reason of the additional evidence so taken, and it shall file with the court such modified findings or determination, which findings of fact shall be conclusive. At the earliest convenient time, the court, in term time or vacation, shall hear and determine the case upon the original record of the hearing before the review committee, and upon such record as supplemented if supplemented, by further hearing before the review committee pursuant to direction of the court. The court shall affirm the review committee’s determination, or modified determination, if the court determines that the same is in accordance with law If the court determines that such determination or modified determination is 52 Stat. 64not in accordance with law, the court shall remand the proceeding to the review committee with direction either to make such determination as the court shall determine to be in accordance with law or to take such further proceedings as, in the court’s opinion, the law requires. stay of proceedings and exclusive jurisdiction Sec. 367. Stay of proceedings and exclusive jurisdiction. The commencement of judicial proceedings under this Part shall not, unless specifically ordered by the court, operate as a stay of the review committee’s determination. Notwithstanding any other provision of law, the jurisdiction conferred by this Part to review the legal validity of a determination made by a review committee pursuant to this Part shall be exclusive. No court of the United States or of any State shall have jurisdiction to pass upon the legal validity of any such determination except in a proceeding under this Part. no effect on other quotas Sec. 368. No effect on other quotas. Notwithstanding any increase of any farm marketing quota for any farm as a result of review of the determination thereof under this Part, the marketing quotas for other farms shall not be affected. Part II—Adjustment of quotas and enforcement. part II.— adjustment of quotas and enforcement general adjustments of quotas Sec. 371. General adjustments of quotas.
(a)If at any time the Secretary has reason to believe that in the case of corn, wheat, cotton, rice, or tobacco the operation of farm marketing quotas in effect will cause the amount of such commodity which is free of marketing restrictions to be less than the normal supply for the marketing year for the commodity then current, he shall cause an immediate investigation to be made with respect thereto. In the course of such investigation due notice and opportunity for hearing shall be given to interested persons. If upon the basis of such investigation the Secretary finds the existence of such fact, he shall proclaim the same forthwith. He shall also in such proclamation specify such increase in, or termination of, existing quotas as he finds, on the basis of such investigation, is necessary to make the amount of such commodity which is free of marketing restrictions equal the normal supply.
(b)Emergencies, etc. If the Secretary has reason to believe that, because of a national emergency or because of a material increase in export demand, any national marketing quota for corn, wheat, cotton, rice, or tobacco should be increased or terminated, he shall cause an immediate investigation to be made to determine whether the increase or termination is necessary in order to effectuate the declared policy of this Act or to meet such emergency or increase in export demand. If, on the basis of such investigation, the Secretary finds that such increase or termination is necessary, he shall immediately proclaim such finding (and if he finds an increase is necessary, the amount of the increase found by him to be necessary) and thereupon such quota shall be increased, or shall terminate, as the case may be.
(c)National marketing quota increase; effect of. In case any national marketing quota for any commodity is increased under this section, each farm marketing quota for the commodity shall be increased in the same ratio.
(d)Corn. In the case of corn, whenever such proclamation specifies an increase in marketing quotas, the storage amounts applicable to corn shall be adjusted downward to the amount which would have been required to be stored if such increased marketing quotas had 52 Stat. 65been in effect. Whenever in the case of corn, such proclamation provides for termination of marketing quotas, storage under seal shall no longer be required. payment and collection of penaltiesPenalties. Sec. 372.
(a)The penalty with respect to the marketing, by sale,Payment and collection. of wheat, cotton, or rice, if the sale is to any person within the United States, shall be collected by the buyer.
(b)All penalties provided for in Subtitle B shall be collected and*Ante*, p. 45. paid in such manner, at such times, and under such conditions as the Secretary may by regulations prescribe. Such penalties shall be remitted to the Secretary by the person liable for the penalty, except that if any other person is liable for the collection of the penalty, such other person shall remit the penalty. The amount of such penalties shall be covered into the general fund of the Treasury*Post*, p. 204. of the United States. reports and records Sec. 373.
(a)This subsection shall apply to warehousemen, processors,Reports and records. and common carriers of corn, wheat, cotton, rice, or tobacco, and all ginners of cotton, all persons engaged in the business of purchasing corn, wheat, cotton, rice, or tobacco from producers, and all persons engaged in the business of redrying, prizing, or stemming tobacco for producers. Any such person shall, from time to time on request of the Secretary, report to the Secretary such information and keep such records as the Secretary finds to be necessary to enable him to carry out the provisions of this title. Such information shall be reported and such records shall be kept in accordance with forms which the Secretary shall prescribe. For the purpose of ascertainingExamination of books, etc. the correctness of any report made or record kept, or of obtaining information required to be furnished in any report, but not so furnished, the Secretary is hereby authorized to examine such books, papers, records, accounts, correspondence, contracts, documents, and memoranda as he has reason to believe are relevant and are within the control of such person. Any such person failing to make anyPenalty provision. report or keep any record as required by this subsection or making any false report or record shall be deemed guilty of a misdemeanor and upon conviction thereof shall be subject to a fine of not more than $500.
(b)Farmers engaged in the production of corn, wheat, cotton,Proof of acreage, marketing, etc., by farmers. rice, or tobacco for market shall furnish such proof of their acreage, yield, storage, and marketing of the commodity in the form of records, marketing cards, reports, storage under seal, or otherwise as the Secretary may prescribe as necessary for the administration of this title.
(c)All data reported to or acquired by the Secretary pursuantAcquired data to be kept confidential. to this section shall be kept confidential by all officers and employees of the Department, and only such data so reported or acquired as the Secretary deems relevant shall be disclosed by them, and then only in a suit or administrative hearing under this title. measurement of farms and report of plantings Sec. 374. The Secretary shall provide, through the county andMeasurement of farms and report of plantings. local committees, for measuring farms on which corn, wheat, cotton, or rice is produced and for ascertaining whether the acreage planted for any year to any such commodity is in excess of the farm acreage allotment for such commodity for the farm under this title. If in the case of any farm the acreage planted to any such commodity on 52 Stat. 66the farm is in excess of the farm acreage allotment for such commodity for the farm, the committee shall file with the State committee a written report stating the total acreage on the farm in cultivation and the acreage planted to such commodity. regulations Sec. 375. Regulations.
(a)The Secretary shall provide by regulations for the identification, wherever necessary, of corn, wheat, cotton, rice, or tobacco so as to afford aid in discovering and identifying such amounts of the commodities as are subject to and such amounts thereof as are not subject to marketing restrictions in effect under this title.
(b)The Secretary shall prescribe such regulations as are necessary for the enforcement of this title. court jurisdiction Sec. 376. Court jurisdiction. The several district courts of the United States are hereby vested with jurisdiction specifically to enforce the provisions of this title. If and when the Secretary shall so request, it shall be the duty of the several district attorneys in their respective districts, under the direction of the Attorney General, to institute proceedings to collect the penalties provided in this title. The remedies and penalties provided for herein shall be in addition to, and not exclusive of, any of the remedies or penalties under existing law. Subtitle D—Subtitle D—Miscellaneous provisions and appropriations.Part I—Miscellaneous. Miscellaneous Provisions and Appropriations part I— miscellaneous cotton price adjustment payments Sec. 381. Cotton price adjustment payments, 1937 crop.[50 Stat. 762](/us/stat/50/726).*Post*, pp. 204, 745.
(a)For the purposes of the provisions (relating to cotton price adjustment payments with respect to the 1937 cotton crop) of the Third Deficiency Appropriation Act, fiscal year 1937, a producer shall be deemed to have complied with the provisions of the 1938 agricultural adjustment program formulated under the [50 Stat. 754](/us/stat/50/754).legislation contemplated by Senate Joint Resolution Numbered 207, Seventy-fifth Congress, if his acreage planted to cotton in 1938 does [49 Stat. 163, 1148](/us/stat/49/163/1148).[16 U. S. C., Supp. III, §§ 590a–590q](/us/usc/t16/s590a–590q).*Ante*, p. 57.not exceed his farm acreage allotment for 1938 under the Soil Conservation and Domestic Allotment Act, as amended (including the amendments made by this Act), or under section 344 of this Act, Producer innocently exceeding his allotment.whichever is the lesser. For the purposes of this subsection a producer shall not be deemed to have exceeded his farm acreage allotment unless such producer knowingly exceeded his farm acreage allotment. Such compliance shall not be required in any case where In cases of crop failure, etc.the producer is not engaged in cotton production in 1938. In cases where in 1937 a total or partial crop failure resulted from hail, drought, flood, or boll-weevil infestation, if the producer is otherwise eligible for payment, payment shall be made at the rate of 3 cents per pound on the same percentage of the producer’s normal base production established by the Secretary as in the case of other producers.Status of cotton not sold prior to July 1, 1938. For the purpose of such provisions of the Third Deficiency Appropriation Act, fiscal year 1937, cotton not sold prior to July 1, 1938, shall be held and considered to have been sold on June 30, 1938, Filing of applications for payment, time limitation.and all applications for price adjustment payments shall be filed with the Secretary not later than July 15, 1938. Such payments shall be made at the earliest practicable time. Application for payment may be made by the 1937 operator of a farm on behalf of all persons engaged in cotton production on the farm in 1937 and need be signed only by such operator, but payment shall be made directly 52 Stat. 67to each of the persons entitled thereto. In case any person who isPayment in ease of death, etc. entitled to payment hereunder dies, becomes incompetent, or disappears before receiving such payment or is succeeded by another who renders or completes the required performance, payment shall, without regard to any other provisions of law, be made as the Secretary may determine to be fair and reasonable in all the circumstances and provide by regulations.
(b)Any producer for whom a loan has been made or arrangedCommodity Credit Corporation, cotton transfers to. for by the Commodity Credit Corporation on cotton of his 1937 crop and who has complied with all the provisions of the loan agreement except section 8 thereof, may, at any time before July 1, 1938, transfer his right, title, and interest in and to such cotton to the Corporation; and the Corporation is authorized and directed to accept such right, title, and interest in and to such cotton and to assume all obligations of the producer with respect to the loan on such cotton, including accrued interest and accrued carrying charges to the date of such transfer. The Corporation shall notify the SecretaryNotice to Secretary. of Agriculture of each such transfer, and upon receipt of such notice, the Secretary shall as soon as compliance is shown, or a national marketing quota for cotton is put into effect, forthwith pay to such producer a sum equal to 2 cents per pound of such cotton, and the amount so paid shall be deducted from any price adjustment payment to which such producer is entitled.
(c)The Commodity Credit Corporation is authorized on behalf ofSale of acquired 1937 crop. the United States to sell any cotton of the 1937 crop so acquired by it, but no such cotton or any other cotton held on behalf of the United States shall be sold unless the proceeds of such sale are at least sufficient to reimburse the United States for all amounts (including any price-adjustment payment) paid out by any of its agencies with respect to the cotton so sold. After July 31, 1939, the CommodityLimitation. Credit Corporation shall not sell more than three hundred thousand bales of cotton in any calendar month, or more than one million five hundred thousand bales in any calendar year. The proceeds derivedUse of proceeds from sales. from the sale of any such cotton shall be used for the purpose of discharging the obligations assumed by the Commodity Credit Corporation with respect to such cotton, and any amounts not expended for such purpose shall be covered into the Treasury as miscellaneous receipts. extension of 1937 cotton loan Sec. 382. The Commodity Credit Corporation is hereby authorizedExtension of 1937 cotton loan. and directed to provide for the extension, from July 31, 1938, to July 31, 1939, of the maturity date of all notes evidencing a loan made or arranged for by the Corporation on cotton produced during the crop year 1937–1938. This section shall not be construed to prevent the sale of any such cotton on request of the person liable on the note. insurance of cotton and reconcentration of cotton Sec. 383.
(a)The Commodity Credit Corporation shall place allInsurance of cotton. insurance of every nature taken out by it on cotton, and all renewals, extensions, or continuations of existing insurance, with insurance agents who are bona fide residents of and doing business in the State where the cotton is warehoused: *Provided*, That such insurance may*Proviso*.Cost. be secured at a cost not greater than similar insurance offered on said cotton elsewhere.
(b)Cotton held as security for any loan heretofore or hereafterReconcentration of cotton.*Post*, p. 762. made or arranged for by the Commodity Credit Corporation shall not hereafter be reconcentrated without the written consent of the producer or borrower. 52 Stat. 68 report of benefits Sec. 384. Report of benefits. The Secretary shall submit to Congress an annual report of the names of persons to whom, during the preceding year, [49 Stat. 163, 1148](/us/stat/49/1148).[16 U. S. C., Supp. III, §§ 590a–590q](/us/usc/t16/s590a–590q).payments were made under the Soil Conservation and Domestic Allotment Act, as amended, together with payments under section 303 of this Act, if any, if the total amount paid to such person exceeded $1,000. finality of farmers’ payments and loans Sec. 385. Finality of farmers’ payments and loans. The facts constituting the basis for any Soil Conservation Act payment, parity payment, or loan, or the amount thereof, when officially determined in conformity with the applicable regulations prescribed by the Secretary or by the Commodity Credit Corporation, shall be final and conclusive and shall not be reviewable by any other officer or agency of the Government. Sec. 386. Interest of Members of Congress.Provisions not to apply to loans, etc., hereunder; exception.[R. S. § 3741](/us/rs/3741); [41 U. S. C. § 22](/us/usc/t41/s22).[18 U. S. C. §§ 204, 205](/us/usc/t18/s204/205).*Ante*, p. 67. The provisions of section 3741 of the Revised Statutes (U. S. C., 1934 edition, title 41, sec. 22) and sections 114 and 115 of the Criminal Code of the United States (U. S. C., 1934 edition, title 18, secs. 204 and 205) shall not be applicable to loans or payments made under this Act (except under section 383 (a)). photographic reproductions and maps Sec. 387. Photographic reproductions and maps. The Secretary may furnish reproductions of such aerial or other photographs, mosaics, and maps as have been obtained in connection with the authorized work of the Department to farmers and governmental agencies at the estimated cost of furnishing such reproductions, and to persons other than farmers at such prices (not less than estimated cost of furnishing such reproductions) as the Secretary may determine, the money received from such sales to be deposited in the Treasury to the credit of the appropriation charged with the cost of making such reproductions. This section shall not affect the power of the Secretary to make other disposition of such or similar materials under any other provisions of existing law. utilization of local agencies Sec. 388. Utilization of local agencies.[49 Stat. 1149](/us/stat/49/1149); [50 Stat. 329](/us/stat/50/329).[16 U, S. C., Supp. III, §§ 590h, k](/us/usc/t16/s590h/k).*Ante*, p. 31.
(a)The provisions of section 8
(b)and section 11 of the Soil Conservation and Domestic Allotment Act, as amended, relating to the utilization of State, county, local committees, the extension service, and other approved agencies, and to recognition and encouragement of cooperative associations, shall apply in the administration of this Act; and the Secretary shall, for such purposes, utilize the same local, county, and State committees as are utilized under [49 Stat. 1148–1151](/us/stat/49/1148–1151).sections 7 to 17, inclusive, of the Soil Conservation and Domestic Allotment Act, as amended. The local administrative areas designated under section 8
(b)of the Soil Conservation and Domestic Local administrative areas.Allotment Act, as amended, for the administration of programs under that Act, and the local administrative areas designated for the administration of this Act shall be the same.
(b)Payments to county committees for administrative excuses.*Post*, p. 746. The Secretary is authorized and directed, from any funds made available for the purposes of the Acts in connection with which county committees are utilized, to make payments to comity committees of farmers to cover the estimated administrative expenses incurred or to be incurred by them in cooperating in carrying out Pro rata deductions from payments.the provisions of such Acts. All or part of such estimated administrative expenses of any such committee may be deducted pro rata from the Soil Conservation Act payments, parity payments, or loans, or other payments under such Acts, made unless payment of such expenses is otherwise provided by law. The Secretary may 52 Stat. 69make such payments to such committees in advance of determination of performance by farmers. personnel Sec. 389. The Secretary is authorized and directed to provide forPersonnel. the execution by the Agricultural Adjustment Administration of such of the powers conferred upon him by this Act as he deems may be appropriately exercised by such Administration; and for such purposes the provisions of law applicable to appointment and compensation of persons employed by the Agricultural Adjustment Administration shall apply. separability Sec. 390. If any provision of this Act, or the application thereofSeparability provision. to any person or circumstance, is held invalid, the validity of the remainder of the Act and the application of such provision to other persons or circumstances, and the provisions of the Soil Conservation and Domestic Allotment Act, as amended, shall not be affected thereby. Without limiting the generality of the foregoing, if any provision of this Act should be held not to be within the power of the Congress to regulate interstate and foreign commerce, such provision shall not be held invalid if it is within the power of the Congress to provide for the general welfare or any other power of the Congress. If any provision of this Act for marketing quotas with respect to any commodity should be held invalid, no provision of this Act for marketing quotas with respect to any other commodity shall be affected thereby. If the application of any provision for a referendum should be held invalid, the application of other provisions shall not be affected thereby. If by reason of any provision for a referendum the application of any such other provision to any person or circumstance is held invalid, the application of such other provision to other persons or circumstances shall not be affected thereby. Part II—Appropriations and administrative expenses. partII — appropriations and administrative expenses appropriations Sec. 391.
(a)Beginning with the fiscal year ending June 30, 1938,Appropriations for each fiscal year, authorized. there is hereby authorized to be appropriated, for each fiscal year for the administration of this Act and for the making of soil conservation and other payments such sums as Congress may determine, inSums additional to amount available.[49 Stat. 1151](/us/stat/49/1151). addition to any amount made available pursuant to section 15 of the Soil Conservation and Domestic Allotment Act, as amended.
(b)For the administration of this Act (including the provisionsAmount for administration, fiscal year 1938.*Post*, pp. 84, 744, 1126. of title V) during the fiscal year ending June 30, 1938, there is hereby authorized to be made available from the funds appropriated for such fiscal year for carrying out the purposes of sections 7 to 17 of the Soil Conservation and Domestic Allotment Act, as amended,[49 Stat. 1148–1151](/us/stat/49/1148–1151). a sum not to exceed $5,000,000. administrative expenses Sec. 392.
(a)The Secretary is authorized and directed to makeAdministrative expenses.*Post*, p. 745. such expenditures as he deems necessary to carry out the provisions of this Act, including personal services and rents in the District of Columbia and elsewhere, traveling expenses (including the purchase, maintenance, and repair of passenger-carrying vehicles), supplies and equipment, law books, books of reference, directories, periodicals, and newspapers. 52 Stat. 70
(b)Limitation on expenditure.[49 Stat. 1148–1151](/us/stat/49/1148–1151); [50 Stat. 329](/us/stat/50/329).[16 U. S. C., Supp. III, § 590g–590q](/us/usc/t16/s590g–590q). In the administration of this title, sections 7 to 17, inclusive, of the Soil Conservation and Domestic Allotment Act, as amended, and section 32, as amended, of the Act entitled “An Act to amend the Agricultural Adjustment Act, and for other purposes”, approved August 24, 1935, the aggregate amount expended in any fiscal year, beginning with the fiscal year ending June 30, 1939, for administrative expenses in the District of Columbia, including regional offices, shall not exceed 1 per centum of the total amount available for such fiscal year for carrying out such Acts, and the aggregate amount expended in any fiscal year for administrative expenses in the several States (not including the expenses of county and local committees) shall not exceed 2 per centum of the total amount available for such Deductions from payments or loans.fiscal year for carrying out such Acts. In the event any administrative expenses of any county or local committee are deducted in any fiscal year, beginning with the fiscal year ending June 30, 1939, from Soil Conservation Act payments, parity payments, or loans, each farmer receiving benefits under such provisions shall be apprised, in the form of a statement to accompany the check evidencing such benefit payment or loan, of the amount or percentage deducted from such benefit payment or loan on account of such County, etc., committee personnel, names, etc., to be posted annually.administrative expenses. The names and addresses of the members and employees of any county or local committee, and the amount of such compensation received by each of them, shall be posted annually in a conspicuous place in the area within which they are employed. allotment of appropriations Sec. 393. Allotment of appropriations. All funds for carrying out the provisions of this Act shall be available for allotment to bureaus and offices of the Department, and for transfer to such other agencies of the Federal Government, and to such State agencies, as the Secretary may request to cooperate or assist in carrying out the provisions of this Act. TITLE IV—Title IV—Cotton pool participation trust certificates. COTTON POOL PAR TICIPATION TRUST CERTIFICATES Sec. 401. Appropriation authorized.*Post*, p. 747. There is hereby authorized to be appropriated, from any moneys in the Treasury of the United States not otherwise appropriated, the sum of $1,800,000, or so much thereof as may be required by the Secretary to accomplish the purposes hereinafter declared and authorized. The Secretary of the Treasury is hereby authorized and directed to pay to, or upon the order of, the Secretary, such a part or all of the sum hereby authorized to be appropriated at the request of the Secretary. Sec. 402. Secretary authorized to draw any part or all of sum; deposit under special symbol number. The Secretary is hereby authorized to draw from the Treasury of the United States any part or all of the sum hereby authorized to be appropriated, and to deposit same to his credit with the Treasurer of the United States, under special symbol number, to be available for disbursement for the purposes hereinafter stated. Sec. 403. Sum available for cotton pool participation trust certificates.*Post*, p. 204. The Secretary is hereby authorized to make available, from the sum hereby authorized to be appropriated, to the manager of the cotton pool, such sum or sums as may be necessary to enable the manager to purchase, take up, and cancel, subject to the restrictions hereinafter reserved, pool participation trust certificates, form C-5-I, where such certificates shall be tendered to the manager, cotton pool, by the person or persons shown by the records of the Department to have been the lawful holder and owner thereof on 52 Stat. 71May 1, 1937, the purchase price to be paid for the certificates soPurchase price. purchased to be at the rate of $1 per five-hundred-pound bale for every bale or fractional part thereof represented by the certificates C-5-I. The Secretary is further authorized to pay directly, or toCosts and incidental expenses. advance to, the manager of the cotton pool, to enable him to pay costs and expenses incident to the purchase of certificates as aforesaid, and any balance remaining to the credit of the Secretary, orBalance covered into Treasury. the manager, cotton pool, not required for the. purchase of these certificates in accordance with provisions of this Act, shall, at the expiration of the purchase period, be covered into the Treasury of the United States as miscellaneous receipts. Sec. 404. The authority of the manager, cotton pool, to purchasePurchase and payment for certificates; time limitation.*Post*, p. 204.*Proviso*.Consummation after expiration of time limit. and pay for certificates hereunder shall extend to and include the 31st day of July 1938: *Provided*, That after expiration of the said limit, the purchase may be consummated of any certificates tendered to the manager, cotton pool, on or before July 31, 1938, but where for any reason the purchase price shall not have been paid by the manager, cotton pool. The Secretary is authorized to promulgate suchRules, regulations, etc. rules, regulations, and requirements as in his discretion are proper to effectuate the general purposes of this title, which purpose is here stated to be specifically to authorize the purchase of outstanding pool participation trust certificates, form C-5-I, for a purchase price to be determined at the rate of $1 per bale, or twenty one-hundredths cent per pound, for the cotton evidenced by the said certificates, provided such certificates be tendered by holders thereof in accordance with regulations prescribed by the Secretary not later than the 31st day of July 1938, and provided such certificates may not be purchased from persons other than those shown by the records of the Department to have been holders thereof on or before the 1st day of May 1937. Sec. 405. The Secretary is authorized to continue in existence theContinuation of 1933 pool. 1933 cotton producers pool so long as may be required to effectuate the purposes of this title. All expense incident to the accomplishmentPayment of expenses. of purposes of this title may be paid from funds hereby authorized to be appropriated, for which purpose the fund hereby authorized to be appropriated shall be deemed as supplemental to such funds as are now to the credit of the Secretary, reserved for the purpose of defraying operating expenses of the pool. Sec. 406. After expiration of the time limit herein established, theCertificates standing, etc., after expiration of limit. certificates then remaining outstanding and not theretofore tendered to the manager, cotton pool, for purchase, shall not be purchased and no obligation on account thereof shall exist. Sec. 407. Nothing in this title shall be construed to authorize thePayment to assignee, etc.; restriction.*Post*, p. 204. manager, cotton pool, to pay the assignee or any holder of such cotton pool participation trust certificates, form C-5-I, transferred on or before May 1, 1937, as shown by the records of the Department of Agriculture, more than the purchase price paid by the assignee or holder of such certificate or certificates with interest at the rate of 4 per centum per annum from the date of purchase, provided the amount paid such assignee shall not exceed $1 per bale. Before making payment to any assignee, whose certificates were transferred on or before May 1, 1937, such assignee shall file with the manager, cotton pool, an affidavit showing the amount paid by him for such certificate and the date of such payment, and the manager, cotton pool, is authorized to make payment to such assignee bastid upon the facts stated in said affidavit as aforesaid. 52 Stat. 72 TITLE V—Title V—Crop insurance. CROP INSURANCE short title and application of other provisions Sec. 501. Short title; application of other provisions. This title may be cited as the “Federal Crop Insurance Act”. Except as otherwise expressly provided the provisions in titles I to IV, inclusive, shall not apply with respect to this title, and the term “Act” wherever it appears in such titles shall not be construed to include this title. declaration of purpose Sec. 502. Declaration of purpose. It is the purpose of this title to promote the national welfare by alleviating the economic distress caused by wheat-crop failures due to drought and other causes, by maintaining the purchasing power of farmers, and by providing for stable supplies of wheat for domestic consumption and the orderly flow thereof in interstate commerce. Sec. 503. Federal Crop Insurance Corporation; creation, principal, etc., offices. To carry out the purposes of this title, there is hereby created as an agency of and within the Department of Agriculture a body corporate with the name “Federal Crop Insurance Corporation” (herein called the Corporation). The principal office of the Corporation shall be located in the District of Columbia, but there may be established agencies or branch offices elsewhere in the United States under rules and regulations prescribed by the Board of Directors. Capital stock.capital stock Sec. 504. Amount, subscription, etc.*Post*, p. 747.
(a)The Corporation shall have a capital stock of $100,000,000 subscribed by the United States of America, payment for which shall, with the approval of the Secretary of Agriculture, be subject to call in whole or in part by the Board of Directors of the Corporation. Stock impairment restoration.Any impairment of the capital stock described in this subsection shall be restored only out of operating profits of the Corporation.
(b)Sum authorized for purchase of stock. There is hereby authorized to be appropriated not more than $100,000,000 for the purpose of subscribing to said stock. No part of Limitation on appropriations to be made.such sum shall be available prior to July 1, 1938. The appropriation for such purpose for the fiscal year ending June 30, 1939, shall not exceed $20,000,000 and shall be made only out of the unexpended balances for the fiscal year ending June 30, 1938, of the sums [49 Stat. 1151](/us/stat/49/1151).[16 U. S. C., Supp. III, § 590o](/us/usc/t16/s590o).Receipts for U. S. payments.appropriated pursuant to section 15 of the Soil Conservation and Domestic Allotment Act, as amended.
(c)Receipts for payments by the United States of America for or on account of such stock shall be issued by the Corporation to the Secretary of the Treasury and shall be evidence of the stock ownership by the United States of America. Management of Corporation.management of corporation Sec. 505. Board of Directors.
(a)The management of the Corporation shall be vested in a Board of Directors (hereinafter called the “Board”) subject Composition, appointment.to the general supervision of the Secretary of Agriculture. The Board shall consist of three persons employed in the Department of Agriculture who shall be appointed by and hold office at the pleasure of the Secretary of Agriculture.
(b)Vacancies, quorum, etc. Vacancies in the Board so long as there shall beSeal. two members in office shall not impair the powers of the Board to execute the functions of the Corporation, and two of the members in office shall constitute a quorum for the transaction of the business of the Board. 52 Stat. 73
(c)The Directors of the Corporation appointed as hereinbeforeCompensation, expenses. provided shall receive no additional compensation for their services as such directors but may be allowed actual necessary traveling and subsistence expenses when engaged in busmess of the Corporation outside of the District of Columbia.
(d)The Board shall select, subject to the approval of the SecretaryManager. of Agriculture, a manager, who shall be the executive officer of the Corporation with such power and authority as may be conferred upon him by the Board. general powersGeneral powers. Sec. 506. The Corporation—
(a)shall have succession in its corporate name;Corporate name.
(b)may adopt, alter, and use a corporate seal, which shall beseal. judicially noticed;
(c)may make contracts and purchase or lease and hold suchContracts, property holdings, etc. real and personal property as it deems necessary or convenient in the transaction of its business, and may dispose of such property held by it upon such terms as it deems appropriate;
(d)subject to the provisions of section 508 (c), may sue and beMay sue and be sued.*Post*, p. 74. sued in its corporate name in any court of competent jurisdiction, State or Federal: *Provided*, That no attachment, injunction, garnishment,*Proviso*.Attachments, injunctions, etc. or other similar process, mesne or final, shall be issued against the Corporation or its property;
(e)may adopt, amend, and repeal bylaws, rules, and regulationsBylaws, rules, etc. governing the manner in which its business may be conducted and the powers granted to it by law may be exercised and enjoyed;
(f)shall be entitled to the free use of the United States mails inFranking privilege. the same manner as the other executive agencies of the government;
(g)with the consent of any board, commission, independent establishment,Use of facilities, etc., of Government agencies. or executive department of the Government, including any field service thereof, may avail itself of the use of information, services, facilities, officials, and employees thereof in carrying out the provisions of this title;
(h)may conduct researches, surveys, and investigations relatingResearches, surveys, etc. to crop insurance for wheat and other agricultural commodities;
(i)shall determine the character and necessity for its expendituresExpenditures. under this title and the manner in which they shall be incurred, allowed, and paid, without regard to the provisions of any other laws governing the expenditure of public funds and such determinations shall be final and conclusive upon all other officers of the Government; and
(j)shall have such powers as may be necessary or appropriate forPowers customary in corporations. the exercise of the powers herein specifically conferred upon the Corporation and all such incidental powers as are customary in corporations generally. personnelPersonnel. Sec. 507.
(a)The Secretary shall appoint such officers and employeesAppointment without regard to civil-service laws. as may be necessary for the transaction of the business of the Corporation, which appointments may be made without regard to the civil-service laws and regulations, fix their compensationCompensation according to Classification Act.[5 U. S. C. §§ 661–674; Supp. III, §§ 673, 673c](/us/usc/t5/s661–674/673/673c). in accordance with the provisions of the Classification Act of 1923, as amended, define their authority and duties, delegate to them such of the powers vested in the Corporation as he may determine, require bond of such of them as he may designate, and fix the penalties and pay the premiums of such bonds. The appointment of officials andAppointments based on merit. the selection of employees by the Secretary shall be made only on the basis of merit and efficiency. 52 Stat. 74
(b)Benefits of Employees’ Compensation Act extended to employees.[39 Stat. 742](/us/stat/39/742).[5 U. S. C. §§ 751–796](/us/usc/t5/s751–796). Insofar as applicable, the benefits of the Act entitled “An Act to provide compensation for employees of the United States suffering injuries while in the performance of their duties, and for other purposes”, approved September 7, 1916, as amended, shall extend to persons given employment under the provisions of this title, including the employees of the committees and associations referred to in subsection
(c)of this section and the members of such committees.
(c)Producer committees, utilization in administration of Act.Expenses. The Board may establish or utilize committees or associations of producers in the administration of this title and make payments to such committees or associations to cover the estimated administrative expenses to be incurred by them in cooperating in carrying out this title and may provide that all or part of such estimated expenses may be included in the insurance premiums provided for in this title.
(d)Allotment of funds. The Secretary of Agriculture may allot to bureaus and offices of the Department of Agriculture or transfer to such other agencies of the State and Federal Governments as he may request to assist in carrying out this title any funds made available pursuant to the provisions of section 516 of this Act.
(e)*Post*, p. 77.Producer-owned, etc., cooperative associations. In carrying out the provisions of this title the Board may, in its discretion, utilize producer-owned and producer-controlled cooperative associations. crop insurance Sec. 508. Crop insurance. To carry out the purposes of this title the Corporation is authorized and empowered—
(a)Authority of Corporation to insure wheat against losses due to unavoidable causes.*Post*, p. 835. Commencing with the wheat crop planted for harvest in 1939, to insure, upon such terms and conditions not inconsistent with the provisions of this title as it may determine producers of wheat against loss in yields of wheat due to unavoidable causes, including drought, flood, hail, wind, winterkill, lightning, tornado, insect infestation, plant disease, and such other unavoidable causes as may be*Proviso*.Terms, coverage provisions, etc. determined by the Board: *Provided, however*, That for the first three years of operation under this title contracts of insurance shall not be made for periods longer than one year. Such insurance shall not cover losses due to the neglect or malfeasance of the producer or to the failure of the producer to reseed in areas and under circumstances Minimum and maximum amount.where it is customary to reseed. Such insurance shall cover not less than 50 or more than 75 per centum, to be determined by the Board, of the recorded or appraised average yield of wheat on the insured farm for a representative base period subject to such adjustments as the Board may prescribe to the end that the average yields fixed for farms in the same area, which are subject to the same conditions, may Condition.be fair and just. The Board may condition the issuance of such insurance in any county or area upon a minimum amount of participation in a program of crop insurance formulated pursuant to this title.
(b)Premiums. To fix adequate premiums for such insurance, payable either in wheat or cash equivalent as of the due date thereof, on the basis of the recorded or appraised average crop loss of wheat on the insured farm for a representative base period subject to such adjustments as the Board may prescribe to the end that the premiums fixed for farms in the same area, which are subject to the same Collection.conditions, may be fair and just. Such premiums shall be collected at such time or times, in such manner, and upon such security as the Board may determine.
(c)Claims, adjustment and payment. To adjust and pay claims for losses either in wheat or in cash equivalent under rules prescribed by the Board. In the event that any claim for indemnity under the provisions of this title is denied 52 Stat. 75by the Corporation an action on such claim may be brought against the Corporation in the district court of the United States in and for the district in which the insured farm is located, and exclusive jurisdiction is hereby conferred upon such courts to determine such controversies without regard to the amount in controversy: *Provided*,*Proviso*.Time for filing suit. That no suit on such claim shall be allowed under this section unless the same shall have been brought within one year after the date when notice of denial of the claim is mailed to the claimant.
(d)From time to time, in such manner and through such agenciesAdditional powers of Board. as the Board may determine, to purchase, handle, store, insure, provide storage facilities for, and sell wheat, and pay any expenses incidental thereto, it being the intent of this provision, however, that, insofar as practicable, the Corporation shall purchase wheat only at the rate and to a total amount equal to the payment of premiums in cash by farmers or to replace promptly wheat sold to prevent deterioration; and shall sell wheat only to the extent necessary to cover payments of indemnities and to prevent deterioration: *Provided, however*, That nothing in this section shall prevent prompt*Proviso*.Offset purchases and sales. offset purchases and sales of wheat for convenience in handling. The restriction on the purchase and sale of wheat provided in this section shall be made a part of any crop insurance agreement made under this title. Notwithstanding any provision of this title, there shall be no limitation upon the legal or equitable remedies available to the insured to enforce against the Corporation the foregoing restriction with respect to purchases and sales of wheat. indemnities exempt from levy Sec. 509. Claims for indemnities under this title shall not be liableIndemnities exempt from levy. to attachment, levy, garnishment, or any other legal process before payment to the insured or to deduction on account of the indebtedness of the insured or his estate to the United States except claims of the United States or the Corporation arising under this title. deposit of funds Sec. 510. All money of the Corporation not otherwise employedDeposit of funds. may be deposited with the Treasurer of the United States or in any bank approved by the Secretary of the Treasury, subject to withdrawal by the Corporation at any time, or with the approval of the Secretary of the Treasury may be invested in obligations of the United States or in obligations guaranteed as to principal and interest by the United States. Subject to the approval of the SecretaryDepositories. of the Treasury, the Federal Reserve banks are hereby authorized and directed to act as depositories, custodians, and fiscal agents for the Corporation in the performance of its powers conferred by this title. tax exemption Sec. 511. The Corporation, including its franchise, its capital,Tax exemption. reserves, and surplus, and its income and property, shall be exempt from all taxation now or hereafter imposed by the United States or by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. fiscal agent of government Sec. 512. When designated for that purpose by the Secretary ofFiscal agent of Government. the Treasury, the Corporation shall be a depository of public money, except receipts from customs, under such regulations as may be pre52 Stat. 76 scribed by said Secretary; and it may also be employed as a financial agent of the Government; and it shall perform all such reasonable duties, as a depository of public money and financial agent of the Government, as may be required of it. accounting by corporation Sec. 513. Accounting. The Corporation shall at all times maintain complete and accurate books of account and shall file annually with the Secretary of Agriculture a complete report as to the business of the Annual audit.Report to Congress.Corporation. The financial transactions of the Corporation shall be audited at least once each year by the General Accounting Office for the sole purpose of making a report, to Congress, together with such recommendations as the Comptroller General of the United States *Proviso*.Prior examination.may deem advisable: *Provided*, That such report shall not be made until the Corporation shall have had reasonable opportunity to examine the exceptions and criticisms of the Comptroller General or the General Accounting Office, to point out errors therein, explain or answer the same, and to file a statement which shall be submitted by the Comptroller General with his report. Crimes and offenses.crimes and offenses Sec. 514. False, etc., statements.
(a)Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of influencing in any way the action of the Corporation, or for the purpose of obtaining for himself or another money, property, or Penalty.anything of value, under this title, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both.
(b)Speculating in any agricultural commodity, etc. No person shall, while acting in any official capacity in the administration of this title, speculate, directly or indirectly, in any agricultural commodity or product thereof, to which this title applies, or in contracts relating thereto, or in the stock or membership interests of any association or corporation engaged in handling, Penalty.processing, or disposing of any such commodity or product. Any person violating this subsection shall upon conviction thereof be fined not more than $10,000 or imprisoned not more than two years, or both.
(c)Embezzlement, etc. Whoever, being connected in any capacity with the Corporation,
(1)embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to the Corporation or pledged or otherwise entrusted to it; or
(2)with intent, to defraud the Corporation, or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Corporation, makes any false entry in any book, report, or statement of, or to, the Corporation or draws any order, or issues, puts forth, or assigns any note or other obligation or draft, mortgage, judgment, or decree thereof; or
(3)with intent to defraud the Corporation, participates or shares in or receives directly or indirectly any money, profit, property, or benefits through any transaction, Penalty.loan, commission, contract, or any other act of the Corporation, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.
(d)Concealment, etc., of property held by Corporation as security. Whoever willfully shall conceal, remove, dispose of, or convert to his own use or to that of another, any property mortgaged or pledged to, or held by, the Corporation, as security for any Penalty.obligation, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both. 52 Stat. 77
(e)Whoever conspires with another to accomplish any of the actsConspiracy. made unlawful by the preceding provisions of this section shall, on conviction thereof, be subject to the same fine or imprisonment, or both, as is applicable in the case of conviction for doing such unlawful act.
(f)The provisions of sections 112, 113, 114, 115, 116, and 117Application of designated sections of Criminal Code.[18 U. S. C. §§ 202–207](/us/usc/t18/s202–207). of the Criminal Code of the United States (U. S. C., title 18, secs. 202 to 207, inclusive) insofar as applicable, are extended to apply to contracts or agreements with the Corporation under this title: *Provided, however*, That the provisions of section 3741 of the*Proviso*.Interest of Members of Congress.[R. S. § 3741](/us/rs/3741).[41 U. S. C. § 22](/us/usc/t41/s22).[18 U. S. C. §§ 204, 205](/us/usc/t18/s204/205). Revised Statutes (U. S. C., title 41, sec, 22) and sections 114 and 115 of the Criminal Code of the United States shall not apply to any crop-insurance agreements made under this title. advisory committee Sec. 515. The Secretary of Agriculture is authorized to appointAdvisory committee. from time to time an advisory committee, consisting of not more than five members experienced in agricultural pursuits and appointed with due consideration to their geographical distribution, to advise the Corporation with respect to carrying out the purposes of this title. The compensation of the members of such committee shall beCompensation. determined by the Board but shall not exceed $10 per day each while actually employed and actual necessary traveling and subsistence expenses, or a per diem allowance in lieu thereof. appropriations and regulations Sec. 516.
(a)There are hereby authorized to be appropriated suchAppropriations authorized.*Post*, p. 746. sums, not in excess of $6,000,000 for each fiscal year beginning after June 30, 1938, as may be necessary to cover the operating and administrative costs of the Corporation, which shall be allotted to the Corporation in such amounts and at such time or times as the Secretary of Agriculture may determine: *Provided*, That expenses*Proviso*.Certain expenses deemed nonadministrative. in connection with the purchase, transportation, handling, or sale of wheat may be considered by the Corporation as being nonadministrative or nonoperating expenses. For the fiscal year ending JuneAmount for fiscal year 1939. 30, 1939, the appropriation authorized under this subsection is authorized to be made only out of the unexpended balances for the fiscal year ending June 30, 1938, of the sums appropriated pursuant to section 15 of the Soil Conservation and Domestic Allotment Act,[49 Stat. 1151](/us/stat/49/1151).[16 U. S. C., Supp. III, § 590o](/us/usc/t16/s590o).Regulations. as amended.
(b)The Secretary and the Corporation, respectively, are authorized to issue such regulations as may be necessary to carry out the provisions of this title. separability Sec. 517. The sections of this title and subdivisions of sections areSeparability. hereby declared to be separable, and in the event any one or more sections or parts of the same of this title be held to be unconstitutional, the same shall not affect the validity of other sections or parts of sections of this title. right to amend Sec. 518. The right to alter, amend, or repeal this title is herebyRight to amend. reserved. Approved, February 16, 1938, 3 p. m. To provide for the annual inspection of all motor vehicles in the District of Columbia. 1938-02-18 31 Chapter United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-11-15 52 Stat. 78 75 3 public 52 Stat. 78 [CHAPTER 31] AN ACT To provide for the annual inspection of all motor vehicles in the District of Columbia. February 18, 1938[[S. 2194](/us/bill/75/s/2194)][
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  • 52 Stat. 31
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  • 41 USC 22
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  • 5 USC 661–674
  • 52 Stat. 74
  • 5 USC 751–796
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  • 18 USC 202–207
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