7 U.S.C. § 1346 — Penalties

submitted 88 years ago by ch. 30 to r/title-7-AGRICULTURE · 997 words · no verdicts yet

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When cotton marketing quotas apply, the producer owes a penalty on the farm marketing excess. Special rules govern interest, the Government’s lien, and an export-acreage option for 1966 through 1970 crops.

(a) When a cotton crop is subject to farm marketing quotas, the producer owes a penalty on the farm marketing excess. The rate is 50 percent of cotton’s parity price per pound on June 15 of the crop’s calendar year. (b) The excess is treated as available for marketing, and the penalty is calculated on the normal production of cotton acreage above the farm acreage allotment. If the excess is reduced under the proviso in section 1345, the difference between the original and adjusted penalties must be returned or credited to the producer. (c) The person responsible for paying or collecting the penalty also owes interest at 6 percent per year from the penalty’s due date until payment. (d) Until the penalty is paid, all cotton produced on the farm and marketed by the producer is subject to the penalty, and the United States has a lien on the entire crop. (e) For 1966 through 1970 upland-cotton crops, a farm operator may give up price support by applying to the county committee for additional acreage. The operator may then plant no more than the farm allotment under section 1344 plus acreage assigned from the national export market acreage reserve, and may market all cotton from that crop for export without this penalty. This applies only to farms that had upland-cotton allotments in 1965 and are operated by the same operator or the operator’s heir. The reserve is 250,000 acres for 1966. For later crops it is 250,000 acres if the preceding marketing year’s carryover is expected to fall by at least 1,000,000 bales; 187,500 acres if the fall is at least 750,000 but less than 1,000,000 bales; 125,000 acres if it is at least 500,000 but less than 750,000; 62,500 acres if it is at least 250,000 but less than 500,000; and none if it is less than 250,000 bales. The Secretary assigns the reserve based on applications. An application may not exceed the acreage available on the farm for upland cotton. After assignment, the Secretary must give operators a reasonable time to cancel applications and agreements to give up price support and return assigned acreage through the county committee. Returned acreage may be reassigned to eligible farms with outstanding applications. An operator who gives up price support under this subsection may not receive price support for that crop’s cotton from another farm in which the operator has a controlling or substantial interest, as the Secretary determines. Cotton planted above the section 1344 allotment is not counted in setting future State, county, or farm allotments. The farm operator, or cotton purchasers, must provide a Secretary-prescribed bond or undertaking to export all cotton produced on the farm that year, without a Government export subsidy and within the specified time. Failure makes the provider liable for liquidated damages approximating the subsection (a) penalty. The Secretary may allow an equal payment instead of a bond. If the bond or payment is not provided as required, or if planting exceeds the section 1344 allotment plus assigned reserve acreage, the acreage above the section 1344 allotment is treated as excess for this section and section 1345. Amounts collected must be sent to the Commodity Credit Corporation.

the actual law source: uscode.house.gov ↗public domain

(a)

Whenever farm marketing quotas are in effect with respect to any crop of cotton, the producer shall be subject to a penalty on the farm marketing excess at a rate per pound equal to 50 per centum of the parity price per pound for cotton as of June 15 of the calendar year in which such crop is produced.

(b)

The farm marketing excess of cotton shall be regarded as available for marketing and the amount of penalty shall be computed upon the normal production of the acreage on the farm planted to cotton in excess of the farm acreage allotment. If a downward adjustment in the amount of the farm marketing excess is made pursuant to the proviso in section 1345 of this title, the difference between the amount of the penalty computed upon the farm marketing excess before such adjustment and as computed upon the adjusted farm marketing excess shall be returned to or allowed the producer.

(c)

The person liable for payment or collection of the penalty shall be liable also for interest thereon at the rate of 6 per centum per annum from the date the penalty becomes due until the date of payment of such penalty.

(d)

Until the penalty on the farm marketing excess is paid, all cotton produced on the farm and marketed by the producer shall be subject to the penalty provided by this section and a lien on the entire crop of cotton produced on the farm shall be in effect in favor of the United States.

(e)

Notwithstanding any other provision of this chapter, for the 1966 through 1970 crops of upland cotton, if the farm operator elects to forgo price support for any such crop of cotton by applying to the county committee of the county in which the farm is located for additional acreage under this subsection, he may plant an acreage not in excess of the farm acreage allotment established under section 1344 of this title plus the acreage apportioned to the farm from the national export market acreage reserve, and all cotton of such crop produced on the farm may be marketed for export free of any penalty under this section: Provided, That the foregoing shall be applicable only to farms which had upland cotton allotments for 1965 and are operated by the same operator as in 1965 or by his heir.

For the 1966 crop the national export market acreage reserve shall be 250,000 acres. For each subsequent crop—


If the carryover at the end of the marketing year for the preceding crop is estimated to be less than the carryover at the beginning of such marketing year by—	The national export market acreage reserve shall be—
At least 1,000,000 bales	250,000 acres.
At least 750,000 bales, but not as much as 1,000,000 bales	187,500 acres.
At least 500,000 bales, but not as much as 750,000 bales	125,000 acres.
At least 250,000 bales, but not as much as 500,000 bales	62,500 acres.
Less than 250,000 bales	None.

The national export market acreage reserve shall be apportioned to farms by the Secretary on the basis of the applications therefor. No application shall be accepted for a greater acreage than is available on the farm for the production of upland cotton. After apportionments are thus made to farms, the Secretary shall provide farm operators a reasonable time in which to cancel their applications (and agreements to forgo price support) and surrender to the Secretary through the county committee the export market acreage assigned to the farm. Acreage so surrendered shall be available for reassignment by the Secretary to other eligible farms to which export market acreage has been apportioned on the basis of the applications remaining outstanding. The operator of any farm who elects to forgo price support for any such crop under this subsection shall not be eligible for price support on cotton of such crop produced on any other farm in which he has a controlling or substantial interest as determined by the Secretary. Acreage planted to cotton in excess of the farm acreage allotment established under section 1344 of this title shall not be taken into account in establishing future State, county, and farm acreage allotments. The operator of any farm to which export market acreage is apportioned, or the purchasers of cotton produced on such farm, shall, under regulations issued by the Secretary, furnish a bond or other undertaking prescribed by the Secretary providing for the exportation, without benefit of any Government cotton export subsidy and within such time as the Secretary may specify, of all cotton produced on such farm for such year. The bond or other undertaking given pursuant to this subsection shall provide that, upon failure to comply with the terms and conditions thereof, the person furnishing such bond or other undertaking shall be liable for liquidated damages in an amount which the Secretary determines and specifies in such undertaking will approximate the amount payable on excess cotton under subsection (a). The Secretary may, in lieu of the furnishing of a bond or other undertaking, provide for the payment of an amount equal to that which would be payable as liquidated damages under such bond or other undertaking. If such bond or other undertaking is not furnished, or if payment in lieu thereof is not made as provided herein, at such time and in the manner required by regulations of the Secretary, or if the acreage planted to cotton on the farm exceeds the sum of the farm acreage allotment established under section 1344 of this title and the acreage apportioned to the farm from the national export market acreage reserve, the acreage planted to cotton in excess of the farm acreage allotment established under section 1344 of this title shall be regarded as excess acreage for purposes of this section and section 1345 of this title. Amounts collected by the Secretary under this subsection shall be remitted to the Commodity Credit Corporation.

Source credit: (Feb. 16, 1938, ch. 30, title III, § 346, 52 Stat. 59; Aug. 29, 1949, ch. 518, § 1, 63 Stat. 674; Pub. L. 89–321, title IV, § 401(2), Nov. 3, 1965, 79 Stat. 1192; Pub. L. 90–559, § 1(2), Oct. 11, 1968, 82 Stat. 996.)

history & why it existsrecord from the source credit

1938Enacted · Act of Feb. 16, 1938, ch. 30 · 52 Stat. 59
1949Amended · Act of Aug. 29, 1949, ch. 518 · 63 Stat. 674
1965Amended · Pub. L. 89-321 · 79 Stat. 1192
1968Amended · Pub. L. 90-559 · 82 Stat. 996

A history note hasn’t been published yet. The record shows enactment by ch. 30 on 1938-02-16.

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