7 U.S.C. § 1359cc — Establishment of flexible marketing allotments
submitted 88 years ago by Pub. L. 107-171 to r/title-7-AGRICULTURE · 989 words · no verdicts yet
This section sets the overall sugar allotment, divides it between beet and cane sugar, allocates cane sugar among States, and provides adjustment rules.
(a) The Secretary* must establish flexible sugar marketing allotments for a crop year when section 1359bb(b) requires them, following this section. (b)(1) The Secretary must set the total allotment, called the “overall allotment quantity,” high enough to keep raw and refined sugar prices* above forfeiture levels and avoid forfeiture to the Commodity Credit Corporation, but not below 85% of estimated domestic human consumption. (2) Subject to that minimum, the Secretary must adjust the total to keep prices above forfeiture levels and maintain adequate domestic supplies of raw and refined sugar. (c) Divide the total into beet sugar equal to 54.35% and cane sugar equal to 45.65%. (d)(1) A cane allotment may be filled only with sugar processed from domestically grown cane. (2) A beet allotment may be filled only with sugar domestically processed from beets or in-process beet sugar. (e)(1) After a hearing if affected processors and growers request one, and with notice set by regulation, the Secretary must fairly and equitably divide the cane allotment among States where cane is produced, as this subsection and section 1359dd(b)(1)(D) provide. (e)(2)(A) Before allotting cane sugar to another State*, allot 325,000 short tons, raw value, to offshore States. (B) Fairly and equitably divide that amount among offshore States after any requested hearing and required notice, based on (i) past marketings, using the two highest raw-cane production years from 1996–2000; (ii) processors’ ability to market* the crop-year allotment; and (iii) past cane processing, using the 1998–2000 three-year average. (e)(3) Divide the remaining cane allotment among mainland States after any requested hearing and required notice, based on (A) the same past-marketings measure, (B) processors’ ability to market, and (C) past processing, using the three greatest-processing crop years in the mainland States collectively during 1991–2000. (f) Except as section 1359ee allows, a State cane allotment may be filled only with sugar processed from cane grown in that State. (g)(1)(A) Based on section 1359bb(a)(3) reestimates, the Secretary must fairly and equitably raise or lower allotments as appropriate to reflect changes in estimated consumption, stocks, production, or imports. (B) The Secretary may not reduce the overall quantity below 85% of estimated domestic human consumption. (g)(2)(A) When an allotment rises or falls, each processor allocation under section 1359dd and each proportionate share under section 1359ff(c) must rise or fall by the same percentage. (B) For an upward adjustment, the Secretary must give priority among beet processors to those with sugar available. (g)(3) If an allotment is reduced during a crop year and a processor has already marketed more than its reduced allocation, the next allotment established for it must be reduced by the excess amount.
The Secretary* shall establish flexible marketing allotments for sugar for any crop year in which the allotments are required under section 1359bb(b) of this title in accordance with this section.
The Secretary shall establish the overall quantity of sugar to be allotted for the crop year (referred to in this subpart as the “overall allotment quantity”) at a level that is—
sufficient to maintain raw and refined sugar prices* above forfeiture levels to avoid forfeiture of sugar to the Commodity Credit Corporation; but
not less than a quantity equal to 85 percent of the estimated quantity of sugar for domestic human consumption for the crop year.
Subject to paragraph (1), the Secretary shall adjust the overall allotment quantity to maintain—
raw and refined sugar prices above forfeiture levels to avoid the forfeiture of sugar to the Commodity Credit Corporation; and
adequate supplies of raw and refined sugar in the domestic market*.
The overall allotment quantity for the crop year shall be allotted between—
sugar derived from sugar beets by establishing a marketing allotment for a crop year at a quantity equal to the product of multiplying the overall allotment quantity for the crop year by 54.35 percent; and
sugar derived from sugarcane by establishing a marketing allotment for a crop year at a quantity equal to the product of multiplying the overall allotment quantity for the crop year by 45.65 percent.
Each marketing allotment for cane sugar established under this section may only be filled with sugar processed from domestically grown sugarcane.
Each marketing allotment for beet sugar established under this section may only be filled with sugar domestically processed from sugar beets or in-process beet sugar.
The allotment for sugar derived from sugarcane shall be further allotted, among the States in the United States* in which sugarcane is produced, after a hearing (if requested by the affected sugarcane processors and growers) and on such notice as the Secretary by regulation may prescribe, in a fair and equitable manner as provided in this subsection and section 1359dd(b)(1)(D) of this title.
Prior to the allotment of sugar derived from sugarcane to any other State, 325,000 short tons, raw value shall be allotted to the offshore States.
The collective offshore State* allotment provided for under subparagraph (A) shall be further allotted among the offshore States in which sugarcane is produced, after a hearing (if requested by the affected sugarcane processors and growers) and on such notice as the Secretary by regulation may prescribe, in a fair and equitable manner on the basis of—
past marketings of sugar, based on the average of the 2 highest years of production of raw cane sugar from the 1996 through 2000 crops;
the ability of processors to market the sugar covered under the allotments for the crop year; and
past processings of sugar from sugarcane, based on the 3-year average of the 1998 through 2000 crop years.
The allotment for sugar derived from sugarcane, less the amount provided for under paragraph (2), shall be allotted among the mainland States in the United States in which sugarcane is produced, after a hearing (if requested by the affected sugarcane processors and growers) and on such notice as the Secretary by regulation may prescribe, in a fair and equitable manner on the basis of—
past marketings of sugar, based on the average of the 2 highest years of production of raw cane sugar from the 1996 through 2000 crops;
the ability of processors to market the sugar covered under the allotments for the crop year; and
past processings of sugar from sugarcane, based on the 3 crop years with the greatest processings (in the mainland States collectively) during the 1991 through 2000 crop years.
Except as provided in section 1359ee of this title, a State cane sugar allotment established under subsection (e) for a crop year may be filled only with sugar processed from sugarcane grown in the State covered by the allotment.
Subject to subparagraph (B), the Secretary shall, based on reestimates under section 1359bb(a)(3) of this title, adjust upward or downward marketing allotments in a fair and equitable manner, as the Secretary determines appropriate, to reflect changes in estimated sugar consumption, stocks, production, or imports.
In carrying out subparagraph (A), the Secretary may not reduce the overall allotment quantity to a quantity of less than 85 percent of the estimated quantity of sugar for domestic human consumption for the crop year.
Except as provided in subparagraph (B), in the case of any increase or decrease in an allotment, each allocation to a processor of the allotment under section 1359dd of this title, and each proportionate share established with respect to the allotment under section 1359ff(c) of this title, shall be increased or decreased by the same percentage that the allotment is increased or decreased.
If the Secretary makes an upward adjustment under paragraph (1)(A), in adjusting allocations among beet sugar processors, the Secretary shall give priority to beet sugar processors with available sugar.
Whenever a marketing allotment for a crop year is required to be reduced during the crop year under this subsection, if, at the time of the reduction, the quantity of sugar marketed exceeds the processor’s reduced allocation, the allocation of an allotment next established for the processor shall be reduced by the quantity of the excess sugar marketed.
Source credit: (Feb. 16, 1938, ch. 30, title III, § 359c, as added Pub. L. 107–171, title I, § 1403, May 13, 2002, 116 Stat. 189; amended Pub. L. 110–234, title I, § 1403(c), May 22, 2008, 122 Stat. 983; Pub. L. 110–246, § 4(a), title I, § 1403(c), June 18, 2008, 122 Stat. 1664, 1712; Pub. L. 119–21, title I, § 10312(c)(2), July 4, 2025, 139 Stat. 97.)
- 1938Enacted · Pub. L. 107-171 · 116 Stat. 189
- 2008Amended · Pub. L. 110-234 · 122 Stat. 983
- 2008Amended · Pub. L. 110-246 · 122 Stat. 1664, 1712
- 2025Amended · Pub. L. 119-21 · 139 Stat. 97
A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-171 on 1938-02-16.
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