1956 Agricultural Act

8/2/2019 1956 Agricultural Act

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A research project from The National Center for Agricultural Law Research and InformationUniversity of Arkansas School of Law [email protected] (479) 575-7646

Agr ic u l tu ra l Ac t o f 1956Pub. L. No. 84-540, 70 Stat. 188

(Originally cited as ch. 327, 70 Stat. 188)

The digitization of this Act was performed by the University of ArkansasSchool of Laws National Agricultural Law Center under CooperativeAgreement No. 58-8201-4-197 with the United States Department ofAgriculture, National Agricultural Library.


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188

May 28 , 1956[I-loR. 10875]Public Law 540

PUBLIC LAW 54o-MAY 28 , 1956

AN ACTTo enact t he A ~ r i c u l t u r a l Ad of ]j);)(i.

[7 0 STAT.CHAPTER 327

Agricultural Acto f 1956.

Soil Bank Act.

52 Stat . 31 .7 USC 128 1.

Be it enacted by the Senate and House of Representatil'es of theUnited8tatcs of Am-erica in Oongress a88cmbled, That this Act maybe cited as the "'Agricultural Ac t of 195(j".TITLE I -SOIL BAKK ACT

SHORT Trn..':ESEC. 101. This title lllay be c it ed as the "Soil Balik Act".

DECLAHATIOX OF rOL l e rSEC. 102. The Congress hereby finds that the production of ex('essi,'e

~ u p p l i e s of Hg'I'iellltural eommorlities depresses the prices and incomeof farm families; constitutes improper land use and brings about soilerosion, depletion of soil fertility, anti too rapid release of waterf rom lands where it falls, thereby adversely affecting the nat ionalwelfare, impairing the produetive f a c i l i t i e ~ n e ( ' e s ~ a r y for a cOJltinuousand stable supply of agricultural commodities, and endangering anadequate supply of water fo r agrieultural and nonagricultural UBe;overtaxes the facilities of interstate and foreign transportation; congests terminal marliets and handling and processing centers in the flowof commodities f rom producers to consumers; depresses prices ininterstate and foreign commerce; disrupts th e orderly marketing ofcommodities in sueh commerce; and otherwise affects, burdens, andobstructs interstate and foreign commerce. I t is in the interes t ofthe general wel fare that th e soil and water resources of the Nat ionbe not wasted and depleted i n t he producti on of such b:mlensomesurpluses and that interstate and fore,ign commerce in llgricultllralcommodities be protected f rom excessive supplies. I t is herebydeclared to be the policy of the Congress and the purposes of thistitle to protect and increase farm income, to protect the national soil,water , and fores t and wildlife resources from w a ~ t e and depletion, toprotect interstate and foreign commerce from the b u r d e n ~ and obstructions which result. f rom the utilization of farmland for the productionof exee-ssive supplies of agricultural commodities, and to provide fo rthe conservation of such resources and an adequate, balanced, nndorderly flow of such agricultural commodities in interstate and forei7ncommerce. To effectuate the policy of Congress llnd the purposes ofthi s t it le programs are herein authorized to assist farmers to diverta portion of the ir cropland from the production of excessive slIppliesof agricultural commodities, and to curry out II program of :;:\)i1. water,forest and wildlife conservation. The aetivitie::: authorized underthis title are supplementary to tht' aereage nllotments and marketingquohLs authorized unde,r the Agricultural Adjustment Act of 1938,as amended, and together with such acreage allotments and marketingquotas, consti tute an over-all program to pre.vent excessive suppliesof agricultllra.1 commodities f rom burdening and obs truc ting i n t e r ~state and foreign commerce.


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70 STAT.] PUBLIC LAW Mo-MAY 28, 1956SUBTITI.E A-AcREAGE RESERVE PROGRAM

TERMS AND CONDITIONS

189

SEC. 103. (a ) Nothwithstanding any other provision of law, th eSecretary of Agriculture (hereinafter referred to as the "Secretary")is authOljzed and direc ted to formulate and carry out an acreagereserve program fo r the 1956, 1957, 1958, and 1959 crops of wheat,cotton, corn produced i n the commercial corn-producing area, peanuts,rice flue-cured tobaeco, burley tobacco, Maryland tobacco, dark airC U I ' ~ d tobacco, fire-cured tobacco, Virginia sun-cured. tobacco, cigarbinder tobacco types 51, 52, 54, and 55, Ohio cigar filler tobacco types42, 43, aud 44, resl>ectively (hereinafter referred to as "the c ~ m -modity"), under whICh producers shall be compensated fo r reduclllgtheir acreages of the commodity below their farm acreage allotments ortheir farm base acreages, whjchever may be applicable. To be eligiblefor such compensation the producer (1) shall reduce his acreage of thecommodity below his farm acreage allotment or farm base acreage,whichever may be applicable, within such limits as the Secretary mayprescribe, (2) shall specifically designate the aereage so withdrawnfrom the production of such commodity (hereinafter referred to asthe "reserve acreage"), and (3) shall not harvest any crop from, orgraze, the reserve acreage unless the Secretary, after certification b)1the Governor of the State in whieh such acreage is situated of theneed fo r g-razing on such acreage, determines that it is necessaryto permit grazing thereon in order to alleviate damage, hardship, orsuffering- caused by severe drought, flood, or other natural disaster,and consents to such ~ r a z i n g . Reserve acreage of a commodity mayinclude acreaooe whether or not planted to the production of the1956 crop of the commodity prior to the announcement of the acreagereserve p rogram fo r the 1956 crop if t he c rop thereon, if any, shallbe plowed under 01 ' otherwise physically incorporated into the soil,or clipped, mowed, or cnt to prevent maturing so that the reductionin acreage of the commodity below the acreage allotment occurs notlater than 21 days after the enactment of this title, or by such laterdate as may be fixed by the Secretary. The reserve acreage shall bein addition to any a


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190 PUBLIC LAW 540-MAY 28, 1956 [70 STAT .

Corn.

52 Stat . 51 .7 USC 1327.

Post, p . 206.

Negotiable ce rUficatea.

jnsbnents forfei t such benefits, and make sUe'h refunds to the l}niterlStates of payments and benefits received by him, under the eontract,as the ~ e ( ' r e t a r y may rletel'Illine to he !lppropriate.(b ) (1 ) Tbere is hereby established fo r 1956 and fo r eaeh year forwhich all acreage reserve program is ill efl'eet fo r corH a total baseaere:l(Te of corn for the eommerejal corn-producing area proclaimed UIldel' s ~ t i o n 827 of the A;.p'icultural Adjustment Act of Hm8, as amended, of fifty-one million acres. The total base aCl'eagt:> of corn fo r theeommerci;ll c O l ' J I ~ p r o d u c i n g area shall be apportioned hy tile Secretaryamong the cOllnties ill sHell area on the basis of the acreage of corn insueh counties d u r i n ~ the five calendar years immediately preceding thecalendar year in "'hich the apportionment is made (plus, in applicableJears , the acreage diverted under previous agricultural adjustment,conservation, and soil bank programs), with adjustments for abnormalweather conditions, for trends ill aereage during such period and fo rthe, promotion of soil-conservation pratices: Pnmided, That anydownward adjustment for the promotion of soil-conservation pradicesshall not exceed 2 perecntum of the total base acreage that would otherwise be apportioned to the county. The base acreage for t he countyshall be apportioned by the Secretar:r, through the local cOlllmittees,among the farms within the count)' on the basis of past acreag-e ofcorn (planted and diverted), tillable acreage crop-rotation practices,types of soil, and topography.(2 ) This snb'er tion (b) shall become inoperative after W5H if in thereferendum conducted pursuant to section 308 (b), producers do notvote In favor of the, program provided in subsection (c) of such section.

EXTEx'r OF P A H T l C I P A T I O ~ IN PROGRA}[SEC. 1M. For purposes of Ihe acreage reserve program the Seeretaryshall establish a national reserye a c r e a ~ e goal fo r the 1956, 19;)7, ]958,and 111,,9 ewps of each commodily specified in section lO;j (a). Thelimits within which individual farms may participate in the acreagereserve program shall be established in such manner as the Secretarydetermines is reasonablY c:t1culated to achieve the national reserve acre

age goa 1and give prodtlcers a fair and equitable opportunity to partieipate ill the acreage reserve program, t.aking into consideration theiracreage allotments or farIll base acreages, whichever ma.y be applicuble, the supply and demand conditions fo r dift'erent classes, grades,and qualities of the commodity, and such other factors as he deemsappropriate. .t 'U3H'ENSATlOX OF PROI>{1(;}:RS

S.;c. 10;;. (a ) Producers shall be compensated for participating inthe acreage reserve program through the issuance of negotiable certificates which the Commodity Credit Corporation shall redeem inilccordanee with regulations prescribed by the Seeretary (1 ) i n cashupon presentation by the producer or by any holder in dne course or(2) at the option of the producer in the ease of certificate'S issued wilhrespect to grains and upon presentation by him, in grains (sueh grainsto be valued by the Secreta.ry at such levels as he d e t e r m i l l t " ~ ' l will no tl H a t ~ r i a l 1 y impair the market price fo r such grain yet will, to themaXInlllHl extent practicable prW(Hlrap;-e acceptance of payment ing ra ins in lien of cash): Pruvided, That. disposition of quantities ofstocks hereunder in anyone year shall be l imited to 1I0 t more thantwo-thirds of such quantit ies of sueh commodities as the Secretarydetermines would be it reasonable estimate of what would have beenprOdlH'f'd fo r marketing during such marketing year on the acreage


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70 STAT.] PUBLIC LAW 640-MAY 28, 1956 191withheld from }ll'o(ludioll under tIw provisions of this t it 1.,: A lid jJJ'O-I'id('(l !Ilrth()l', That such sto('ks slwll not be r e ] ( ' a ~ d prior to the endof the norlllal harvesting' season fo r tIl(' particular l'Ollllllodity beillgreleased. Compensation undf'l' this sectioJl shall he at such rate orr at es a s th e SeL'retary determines will provide producers with a fajrand reasollable r eturn for reduc ing their :lcl"t>agp of the cOllllllmlity,tllking into consideration th e loss of production of the COllllllodity onthe reserve Hcreag-e, allY savings in cost which result froIll 1I0t plantingtIlt' (,oll1modity 011 the reserve acreage, and the ill('(',ntiH' lI{'cpssary toachieve the reserve a ( , l ' e a ~ e goal. The Secretary shallma}{e :til a(ljust])Ieut III yields fo r drong-ht, flood, or o the r abnormal ('olHlitiolls in{ ' ~ t i m a t i l l g the loss of product ion for purposes of ('stablishill:,! rates ofcompensation. The ratt's of paymt',nt otferf'd under this S(>ctiOll shanbe sueh as to f'llCOllrap:e pI'Odm'(,1's to llIulerplant their allotments])lore thall one year. CommO{lities d e l i n ~ r ( ' d to prm]l1cers in redemption of such certi ficates shall not be elig-ible for tcnfler to Comm.odityCredit Corporation under the price support pl'ogT:un.(b ) Compensation shull be pai d to any Pl'O{]w,'pr foJ' participatingin th e acreage reserve progTam fo r any year including" Ifl;)t) when theSecretary ha s ascertained that such producer has complied with th eacreage reduetion requirements of such program fo r such year.(e) The total eompensation paid producers fo r participating in theaereage reserve program with r espect to any Yfar's crops sha ll no texceed $7,:)(),OOO,OO(\ and "'1th respect to any commodity for any ye arshall not exceed th e amount shown below: Wheat, $:>7;',000,000:cotton, ~ m o o , o o o , O O O ; eorn in the ('ommereinl corll']H'o


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192 PUBLIC LAW 54o-MAY 28, 1956 [7 0 STAT.

Ante, p . 189 .

Ag r e eme n t bySecretary.

storage facilities, or other 80i1-, water-, wildlife-, or forest-conservinguses on a specifically designated acreage of lund on the farm regularlyused in the production of crops (including crops, such as tame hay,alfalfa, aud clovers, which do no t require annual tillage).(:2) To devote to conserving crops or uses, or allow to remain idle,throughout the contract period al l acreage of the remaining land onth e farm which is not less than the acreage normally devoted onlyto c O l . l ; ; . : ~ r , i n g - (,I'OpS or uses or normally allowed to remain idle on suchremaIllIng' a ( ' r e l ~ 7 e .(;-n .xot to hnrvest any ('rop from the acreage establi::;hed inproteC'tiye vt>p:etative cover, excepting timber (in llc('ordauee withS0l111(1 forestry mallagement) and wildlife or other natural productsof such (lCl'eng:e which do Bot increase supplies of feed fu r tlomesticanimals.(4) Xot to ~ r a z e allY acreage established il l protective vep:etative('over prim' to .January 1 195U, or such later date as may he providedin the ('()]ltrad, except pursuant to the provisions of seetion IO;{ (a)P ~ hereof; and jf such ficreag-e is grazed at the end of sudl period,to graze such a C l ' e a ~ e during" the, remainder of the period coveredby the contract il l accordance with sound pasture management.

(;) ~ o to adopt any practice, or divert lallds on th e f arm fromcOllselTatlon. woods, p:raziug-, or other use, to any use spe(' it ied bythe Secretary in the contraet as a practice or nse which would tend todefeat the p l l r p o ~ e s of the contract .(H) (A ) In the event that the Secretary determines that there hasbeen a Ylolatioll of the cOlltraet. (incllHlillg the prohibition of graz ingon conservation ~ l ( T e a g e s ) at any stage during- the t ime such !lroducerha s control of the farm and that sUe'h violation is of such a sn )stantialllatUl'e as to wanalli terminat ion of th e contrnd, to forfeit all rightsto lJayments or grants waleI' the contract, and to r efund to th e United

~ t a t e s al l paylnents Hl ld grants received by him thereunder.(B ) In the ewnt that the Seeretary determines tha t there has beena ,-jolation of th e contract but that such violation is of such a natureas not to ' Y ~ l l T a n t termination of the con tract, to accept such paynlentadjustments, forfeit such benefits, and make such refunds to the rnitedSta tes of paymellts and Lenefits received. by him, under the (;ontraet,as the Senctary may d e ~ e r m i n e to be appropriate.(7) To sueh additional provisions as the ~ e c r e t a r ' y determines :uedesirable and inc ludes in the eontrad to effectuate the purposes ofthis title :md to facilitate the practical administration of th e conservatiun resen-e p l ' o g r a m ~ ineluding provisions relating' to ('ontro] ofnoxious weeds"(b ) In l'etnl'll fo r such ngrf>eInent by the producer th e Secretaryshall agree:(1'; To bear f:uch part of the e'ost (l11C'luding labor) of establishingand m'lintnin ing- vE'['etativt> coveT or water storage- facilities, 01' other80i1-, wafel'-, w i l d 1 i f e ~ 01' forest-conserving uses, on the desi:rllatedacreage as the Secretary determinE'S to he nC'('es:-;ary to efl 'eduate thepurposes of th is t i tle. but Hot to exceed a lllaxiuium alllount pel' acreor f(l{>ility p r r ~ ( , r l b e ( l by the ::-;(,(,l'etary for t he ('ounty or are,l in whidltht:. farm is sitnated and(2) To make an


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70 STAT.] PUBLIC LAW 54o-MAY 28, 1956 193the value of t he land for the production of eommodities customarily~ T o w n on sueh kind of land in the county or area, the prevail ing ratesfor cash ren ta ls for s imilar land in the conuty or area, the incentivenecessary to obtain contracts covering suffieient acreage fo r the substantial accomplishment of the purposes of the conservation reserveprogram, and such other factors as he deems appropriat.e. Such rateor rates may be determined on an individual farm basis, a county orrea basis, or such other basis as the Secretary determines will fnciJitatethe praet ieal adminis trat ion of the program.(c) In determining the lands in any area to be eovered by contractsentered into under this section, the Secretary may use advertising andbid procedure if he determines that such action will contr ibute to theeffective and equitable administration of the conservation reserveprogram,(d) A contract shall no t be terminated under paragraph (6) ofsubsection (a ) unless the natu re o f the vio la tion is such as to defeator substantially impair the purposes of the contract. 'Yhenever theState committee believes that there has been a vio la tion which wouldwarrant termination of a contract, the produccr shall he given writtennotice thereof by registered mail or personal service, and the producershall, if he requests such an opportunity within thirty days after thedelivery or service of such notiee, he given an opportunity to showcause, in an informal proceeding before the county committee underr e g u l a t i ~ m s promulgated by the Secretary, why the contrad should notbe termmated. If the produeer does no t request an opportumty toshow cause why the contract should no t be terminated within suchthirty-day period, the determination of the State committee made inaccordance with r e ~ u l a t i o n s of the Secretary sha.ll be final and conclusive. I f the producer within such thirty-day period requests anopportunity to show cause why the eontract should not be terminated,the county committee, at the conclusion of the proceeding, shall submita report, including its recommendations, to the State committee fora determination, on the basis of such report and such other information as is available to the S ta te committee, as to whether there hasbeen a violation which would warrant termination of the contract.The producer shall he accorded the r i ~ h t , in aeeordmwe with regulations promulgated by the Secretary, to appear before the State committee in connection with the State committee's deterITination of theissue. The producer shall be given written notice by registered mailor personal service of the, State committee:s determination. If theproducer feels agog-rieveti by Bueh determination, he may obtnin jurlieialrevie\v of such determination hy filing n complaint with the PuitedStates dis tr ic t court for the district in whieh the land covered bv thecontract is located, within ninety days nfter the delivery 01 ' Hervrce ofnotice. of such determination, requesting the court to set aside sue,hdetermination. Service. of process in such ~ l ( ' t i o n shall be made inaccordance " ...i th the rule for service of proeess upon the ITnited Statesprescribed by the Rules of Civil Procedure for the Fnited StatesDistrict Courts. The copy of the summons and complaint requiredto be delivered to the officer or agency whose ordt>r is being- attackedshall be sent t o the chairman of the State committee. The action illthe United States distric t court shall be a trial de novo to determinewhether there has been a violation which would w ~ n r a n t terminationof the contract. I f the producer does no t seek judicial review of theState committee's determination within the ninety-day period allowedtherefor, the State committee's determination shall be final and conclusive. The terms "county committee" and "State committee" as usedherein refer to the, county and St.ate committees establisheo underse.ction 8 of the Soil Conservation and. Domestic .AHotment A.ct, asamended.

Adver ti si ng andbids .

TeTmins t i on o(contTacts becauseof violat ions.

49 Stat . 1149,16 USC S90h.


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194 PUBLIC LAW 540-MAY 28, 1956 10 STAT.

Report to Co ngress.

SEC. 108. (a) The Se('retary shall not later th,," Febl'U"ry 1 of eaeh).'rar detcrmine and announce tlie national eOllservatioll reserve goal fo rsuch year. Sueh :.toal shall be that percentage which th e ~ e c r e t a l ' ' y


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70 STAT.] PUBLIC LAW 540-MAY 28, 1956( , ( ) X ~ E R V A T l o X ::U.\TEHL\LS x ~ SEHVl('}:S

195

SEC- ]11. (a ) The Secl' t' t,u'y lllay pUl'ehase or produce conservation lIlatt>dals all(l servicps and llIakl' such materials and servicesavailable to producers Hilder the conservation reserve program toaid them in estahIishillp: vegl:'tative eover or water s t o r a ~ e facilities,or otlier 80i1-, water-, wildlife-, OJ' for('st-coIlScITing uses, under contracts authorized h.y this subtitle B.lllay reimburse any Federal, State,or local goverllllJellf agency fo r conservation lll,ltel'ials and servicesfUl'lIislH>d by sneh ap.-ellcy, and Hlay pay eXpell8eS necessary in rnakillgsnch materials, :llld services available, including al l or part of th ecosts incident to t he delivery, application. or installation of materialsand setTlees.(b) Xotwithst:Ulding any otlH'r proYision of law, in making conseryatioll mat('rials and services ayaihble to pro(lncer8 hereUllder, theSecretary 11111)' make payment s, in ad\':lIl('e of determination of perform:ll1cc by the producers. to persons who fill purchase orders coverin g apl)l'oved conservatioll materials 01 ' who render serviee,s to thef-;eeretllry in furnishing to producers approved conservation materials(\1 ' services fo r th e establ1slmwnt by tlIt' producers of vegetative coveror water s to rage facilities, or other 80i1-, water-, wildlife-. or forest(,ollscn-ing uses. lIluler contracts llllthorized by this subtitle H. The,price at ,vhich purchase orders for any eOlls('Tvation material or servlce are filled may be limitcd, if the Secre tary determines that it isnecessary in the interest of producers and the G()Yernment, to a fairprice fixed in accordance with rcgllltttions prescribed by the Secretnry.

l :n 'ECT ox OTHEH rRO


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196 PUBLIC LAW MQ-MAY 28, 1956RIm,TITLE C ~ G - E N E R A L PROVISIONS

COMPLIANCE WITH ACREAGR ALLOTMENTS

[To STAT.

Poet , p. 208.

Ante, p . 191 .

49 Stat. :1149.1 6 USC 590h.

St:c. 114. No person shall he eligible for payments or compensationunder thi s t it le wi th respect to any farm for any yea r in which (1)the acreag:e of any basic agricultural commodity other than wheat orcorn on the farm exceeds the tarIn acreage allotnlent for the c o m ~modity under title III of the Agricultural Adjustment Act of 1938,as amended, or (2) the wheat acreage on the farm exceeds the largerof t he farm whea t acreage allotment under such title or fifteen acres,or (3) the corn acreage on the farm, in the case of a farm in the( ~ o m r r H ' r c i a l corn-producing area, exceeds the farm base acreage fo rcorn or the farm acreage allotment , whichever is in effect. For thepurpose of this section, a producer shall not be deemed to have exceededhis f arm acreage allotment or farm base acreage, unless such producer knowingly exceeded such allotment or base acreage and, in thecase of wheat , unless such producer knowingly exceeded the farmacreage allotment or fifteen acres, whichever is larger.

REAPPORTIONME1'It"'"T PROHIBITEDSlX'- 115. No acreage diver ted f rom the production of any commodity subject to acreage allotments as a result of participation inthe acreage reserve or conservation reserve programs shall be reapportionedor allotted to any other farm.

CERTIFICATE OF CLA IMANTSEC. 116. Subject to the provisions of section 105 (b), payment orcompensation authorized by t hi s t it le may be made upon the certificate of the claimant, in such form as the Secretary may prescribe,that he has complied with all requirements for such payment andthat the statements and information contained in the application forpayment are correct and true, to the best of his knowledge and belief.

UTIL IZATION OF LOCAL AND STATE COMMIITEESSEC. 117. In administering this title in the continental UnitedStates, the Secretary shall utilize the serviees of local, county, andState comeittees established under sect ion 8 of the Soil Conservation and DomesticAllotmentAct, as amended.

UTILIZATION OF OTlI l ';R AGENCIESSEC. 118. 1\::""ith respect to conservation aspects of any program underthis title, the Secretary shall consult ,\'ith the soil-conservation districts, State foreste.rs, State game and fish agencies, land-grant colleges, and other appropriate agencies of State, governments, and withthe Fish and 1Vildlife Service, in the formulation of program provisions at the State ana county levels. The teehnieal resourees o f the

Soil Conservation Service, the Forest Service, the land-grant colleges,the State foresters, State game and fish agencies, the Fish and ,VildlifeService. and other appropriate technical seTvices shall be, utilized, sofa r as practicable, to assure coordination of eouservatjon activities anda solid technical foundation fo r the program.rTILIZATIOX O}


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70 STAT.] PUBLIC LAW 54(}-MAY 28, 1956 197surveys as develoj)cd by the Soil ('onservation ~ e r v i e c , find shall earl'Yforward to eomp etion as rapidly as possible th e basic bud inventoryof th e :'Iation.

SEC. l:W. (:1) The Secretary i Huthorizf'd t o utilize the facilities,services, authorities, l.Uld fundt:i of the COllllllodity Credit Corporationin disclt:uging his functiolls awl responsibilities under this t it le , in-dudillg payment of costs of adminis trat ion for the Pl 'Ogl 'Hll l t i author-ized under thi s title: Provided, That the Secretary shalL prior toFf'hruar.y 1, IHf>7, or such earlier (late as Inay be practicable, submit tothe Congress a full program of all operations under this title whichwill requil'(, tllf' makillg of expenditures during the fiscal year elHling.fUlW :30, tUM';; allfl, after tTune iW, lU[)7. the ('oInmodity Credit CorporatiOll shall Hot make any expenditures fo r carrying out the pur-poses of this t it le ullless the Corporation has received funds to ('overs1l('1l f'xpenditul"f's from appropriations Blade to carry out th e pur-poses of this title. There are hereb.y authorized to be appropriatedsuch sums as lIlay be necessary to carry out the purposes of this title,ine1uding such anlOunts as may be required to makf' payments to theCorporation fo r it s actual costs incurred or to be incurred under thissectIOn.( b) All f unds "vail "bl e fo r ""rryin/! out the purposes of thi s titleshall be available fo r transfer to such agencies of t he Federal o r S ta tegovernments as the Secretary may request to cooperatf' OJ' ass ist inearrying ou t this title; and for technieal assistullee in formulating andearrying out the p r ( ) ~ r a m s authorized by this title. The Secretarymay make such payments ill advance of determination of performance.

F1NALlTY OF DETEHl\I1NATIONSSEC. 121. The facts constitutinO' the basis fot' any payment or COlll-pensation, or the amount t h ( ' r e o ~ authorized to be made under thistitle, when offif'ially determined in conformity with applicable regu-lations preseribed by the S e c r e t a r y ~ Shllll be final and conclusive andshall Hot be reviewable by auy other offieer or ag-cncy of the Govern-

ment. In case any producer who is entit led to any payment or c o m ~pensation dies, becomes incolllpett'nt, or disappellrs before receivingsuch payment or eompellsntioll, or is succeeded by another who rendersor ('ompletes the required performance, t he payment or cOUllwnsationshall, without regard to any other provisions of law, be made as theSet'retary may determillf' to be fnir and reasonable in llll the circum-stances and so provide by regu1


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198 PUBLIC LAW 54Q-MAY 28, 1956 f 70 STAT.

Ant 6, pp . 189.191.

Report to Co n gress .

68 Stat . 849.22 USC 19350

bl't'll Illade by the landlord, h llllllt:-;, and sharecroppers in the. produc-tiOll of tIle C I ' O P ~ which would hayl' been produced on the acreagediverted from production under the contract and the basis on whichthey , ,ould have sharNl il l such crops or th e proceeds thereof.I 'EX.\LTY FOU (aUZIX( ; OH JlAHYEHTJNG

SEC. 12i3. Any producer who knowingly and willfully grazes orharvests any crop from allY a('l'ea:re in violation of a contract enteredinto lUuler section IO;) 01 ' lo7 shall be subject to it civil penalty equalto 50 pe r centum of the compensation payable fo r eornpli:lllce withellch contract fo r t he yea r in which th e Ylolation OCCllrs. Such pen-alty shall be ill lulditioll to allY amOllnts r equi red to be forfeited ortefullded Ulalel' the provisions of such contract, Hnd shall be recoverable ill a eiyi1 sui t bronght in the 1l:1lUe of the Fnited States.HEG111,ATIOXS

SEC. 124-. The Secretary shall prescribe sueh regulations as he deter-mines necessar.y to car ry out the proyisiolls of this title.I ' lWlJITTIOX ox GOYERN::\lENT L. \XDS PROHIBITED

SEC. 125. The President shall, with respect to farmlands now orhereafter oWlled by the Federal Government, restrict insofar as practi-cable the leasing of such lands fo r the production of price supportedcrops in su rplu s supply. Nothing contained in this section shaHprevent the product ion of sHch crops on national wildlife refug-esunder cooperative permits where such production is ne.cessary to ma1l1tain satisfactory wildlife populations, especially of waterfowl fo rbeneficial nse.1'(lOL1NG o } < ~ CONS:EnVATION RESlmn: LAl'JJ

S ~ : c . 126. "Thenever management of family farms or optimum landuse wil l be aided, the Secretar}' of Agriculture is authorized to permitfarmers to pool their r ights to participate jointly in the. conservationreserve program on property other than their home. farms.TITLE I I -S l 'RPLl 'S DISPOSAL

rnOUI{AJl,{ OF OHDEHLY LIQ"CWATIONSEC. 201. (a ) The Commodity Credit Corporation shall , as rapidlyas possible consistent wi th i ts existing authori ty, the operation of theprice support program, and orderly l iquidation, dispose of a.ll stocksof agricultural commodities held by it.(b) The Sec re ta ry shal l suhmit to Congress within ninety daysafter the enactment of this Act detai led programs, with recommendat ions for any additionalleglslation nee.ded to carry ou t sudi programs,(1) fo r the disposition of sllrplus commodities as required by subsection (a ) above ; (2) fo r a food stamp plan or similar program fo r

distribution through States (including the District of Columbia, th eTerritorics, Pucrto Rico and the Virgin Islands) and local units ofGovernment o f fu tur e sllrplus production to needy persons in the.United States, i ts Terr itor ies, and possessions, so as to pre.vent th eaccumulation of commodities in th e hands of th e Commodity CreditCorporation; and (;l) for strategic stockpiling of foodstuffs and otheragricultural products (A ) inside the Uni ted Sta tes and (B) outsidethe United States as authorized in section 415 of the Mutual Security


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70 STAT.] PUBLIC LAW 540-MAY 28, 1956 199Act of HlflL Tlu' E'h'retary shall report llllHWtlly 011 h i operationsullder subsectioll (a ) and ~ m ( ' h reports shall show-(1) tliP (l'lalltities of surplus conmlOdities 011 hand;(:2) the methods of disposition utilized and the quantities dis

p o ~ ( ' d of dllrillg- the preceding' twelye months;(:-3) ill.(' methods of disposition to be utilize(} and the estinwtNIquantities that call be disposed of during the sUl'ceeding twehemont 118 ;(4) a detaile(} program foJ' tIlt' expansion of markets for surplus agricultural commodities through marketing and utilizationres(l(\l'ch and i l l lPI 'OYPllICllt of lllarlH'ting facilities; and(:") reeOllllllendatiolls fo r additional legislation necessary toHccomplish the purposes of thi s sectioll.

SEC. :20:2. (a) Hereafter the quota for cotton haying' n staple len:,.rthof one alld one-eighth inches or Illore, e ~ t a b l i s h e d September 20, 19:)H,pursuant to section ~ of the Ag'ricultllral Adjustment Ad of 19:38, asa m e n d e d ~ shall apply to the same grades and staple lengths includedin the, qnota when slIch qnota was initially estahlished. Sneh quotashall provide fo r eottoll haying a staple length of OIle and elevellsixteenths inches and longer, and shall establish dates fo r the quotayear which will re-cognize and pBl'lllit entry to conforl ll to normallila rketing practices and requireillents fo r such cotton.(b ) Beginning not later than August 1, 1!);'')fi, tlle Commodity ('1reditCorporation is directed to sell fo r e,xpOl't at competitive , ,-orld pricesits stocks of domestically produced extra long staple cotton Ol l handon the date of ellaetment of this Act. The amount oti'ered a1lel th eprice accepted by the Commodi ty Credi t Corpora tion shal l be suchas to dispose of such quantity in an orderly manner alld within a reasonable period of time.

EXPOHT SALES PHOGIL\)[ :FOR COTTON_ SEC. 2 0 ~ . In furtherllI1l'e of the ClitTent policy of the CommodityCredit Corporation of otrering surplus lip:ril'ultural COllllllodities fo rtillle fo r export ltt l'ompetitive world prices, the Commodity CreditCorporation is directed to nse i ts exist ing powers llnd authoritiesimmediately upon the f'nnetInent o f th is Ad to encourage the exportof l'otton by ofl'ering to make ('otton available at prices not in excessof the level of p1'i('es at which ('oHm)s of ('omparable qualities aloebeing offered ill substantial quantity by other exporting: countries and,in any event, fo r the t 'Ot tOIl marketinp: year beginning AuglIs t 1,

] n t l ( ) ~ at prices 1I0t in excef'S of the minimum prices (plus carrying('hal'ges, heginning ()doher 1, l!);,)(i, as established IHil'suant to Sectioll4117 of the Agricultural Ad of 1D4D) at which coUous of comparablequalities were, sold under the export program anllOllllced by thel ~ l 1 i t e d States Depilltmcnt of Ag'ricultm'e 011 August 12, 19fifi. The('Ol1lIllodity Credit Corporation IlIay accept bids ill excess of the maxilHum prices specified herein but shall not reject bids at such maximnmpricpt-i unless a hip:hcr bid is received fo r tlil' sallie cotton. Cottons ofC(ualities not comparable to those of cottons sold under the programannounced on AUg'uf:t I i , 19;;[), shall he offered at prices no t ill exeessof the TIlliximmll. prices prescribed lwreUlldel' fo r cottonti of qualitiescomparable to those of cottons sold under s1l('h program, ,,-ith appropriate adjus tmen t for differences in quality. Sneh qUHntities ofcot ton shall be sold as wi ll reestablish ~ l I l ( l l l l a i l l t a i l l the fair historical~ 1 J a r e of the world llHlrket for l'llited States cotton, saitl volume to bedt'terl1lined by the Secretary of Agl'icnlture.

54 Stat. 2640.

49 Stat . 773.7 USC 624.

63 Stat. 105S.7 USC 1427.


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200 PUBLIC LAW MO-MAY 28, 1956. - \ ( ; H E E . M E N T ~ LI ) I IT IX{ ; !)II'(IHT:-;

70 STAT.

49 S ta t. 7737 USC 624.

Appropriation.

49 S ta t. 774 .

60 Stat. 596.

68 Stat. 4560

Appropriation.

St:C. :204. The Prpsident may, ,vhencvl'}' he deterlllines such actionappropriate, negotiate with representatives of foreign governmentsin an effort to obtain agreements limiting the export from such countries and thl:' importation into the Cnited States of allY agrkl11turnleommodity 01' product manuflletured thereJl'om or textiles or textileproducts, and the President is authorized to issue regulations governing the. entry or withdrawal from warehouse of allY snch commodity,product, texti les, or texti le produds to carry out any :-;nch agreement. Nothillg herein shan affect the anthori ty provided Hildersectioll 2 of the Agricultural Adjustment ...let (o f l ! ) ~ ) a ) as amended.

APplWl'lUATlON TO SUPI'L:El\IENT SECTIOX 3:! FVNnsS>:C. 205. There is hereby authorized to be appropriated for eachfiscal y e a r ~ beginning- with the fiscal year emling .June ao, 1957, the sumof $500,000,000 to enable the Secretary of Ap;riculture to fnrther carryout the provisions of section 32, Pnblic Law 320, Seventy-fonrthCongress, as amellded (7 P. S. C. (;12c) , subject to all prov is ions oflaw relating to the expenditnre of funds appropriated by such section,except that up to 50 per centum of such $500,000,000 may be devotedduring any fiscal year to anyone agricultural commodity or theproducts thereof.TRANSFER 0 ... BAR'n:RED MATEHTALS TO SUPP].EMENTAL STOCKPILE

SEC. 20fi. (a) Strategic and other materials acqnired by the Com-modity Credit Corporation as It result of barter or exchange of agricultural commodities or products, unless acquired for the nationalstockpile established pursnant to the Strategic aud Critical MaterialsStock Piling Act (50 U. S. C. 98-98h), or for o ther purposes shallbe transferred to the supplemental stockpile established by section104 (b) of the Agricnltural Trade Development and Assistance Act of1954 (7 U. S. C.1704).(b) Strategic materials acqnired by the Commodity Credit Corporation as a result of barter or exchange of agricultural commodities orprodncts may be entered, or withdrawn from warehonse, free of duty.(c ) In order to reimburse the Commodity Credit Corporation formaterials transferred to the supplemental stockpile there are herebyanthorized to be appropriated amonnts equal to the valne of anymaterials so transferred. The value of any such material for thepurpose of this subsection, shall be the lower of the domestic marketprice or the Commodity Credit Corporation's investment therein as ofthe date of such transfer, as determined by the Secretary of Agriculture.

SURPLUS DIsrOSAL ADMINISTRATORSEC. 207. The Secretary of A![ricuJture is authorized to appoint anagricultural surplus disposal administrator, at a salnry rate of notexceeding $15,000 per annum, whose duties shall include such responsi

bil ity for activities of the Department, including those of the Com-modIty Credit Corporation, re la ting to the disposal of snrplns agricultural commodities as the Secretary may direct.


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70 STAT.] PUBLIC LAW 54Q-MAY 28, 1956J'.-\YMI':NT ()}' OCI':AX "!'HEWIIT

201

SEC. 208. The Agl'ieultural Trade Development and A s s i ~ t a n l ' e Actof 1954, as amended, is amended as follows:(a) The first sentence of section 1m (a ) is ,unended by s tr ik ingout the word "and'" following' the words "handling- costs," and byinserting immediately before the period tbe following: "and, (3) al lCommodity Credit Corporation funds expended fo r ocean freight costsauthorized under title 1I hereof fo r purposes of section 4H j of theAgricultural Act of )!J4!J, as amended".(b ) Seetion 201 is amended by strikinl-( ou t "f. o. b. vessels inUnited States ports,".(c) The first sentence of section 20:J is amended to read as follows:"Not more than $500,000,000 ( including the Corporation '8 investment in such commodities) shall be expended fo r al l such transfersand fo r other costs authorized by tbis title" Seetion 203 is furtheramended by add ing a t the end of the section the following: "Suchtransfers may include delivery f. o. b. ,-essels in United States portsand, upon a determination by the President that it is necessary toaccomplish the purposes of this t it le or of section 416 of the Agncultural Ac t of 1949, as amended. ocean freil-(ht charges from l 'nitedStates ports to designated ports of entry abroad may be paid fromfunds available to carry out t hi s t it le on commodities transferredpursuant hereto or donated under said section 416. Funds requiredfor ocean freight costs authorized nnder this ti t1e may be transferredby the Commodity Credit Corporation to such other Federal agency asmay be designatedby the President."COMMISSION 1 '0 RECOJ.l)lEND LEGISLATIOX PROVIDING rolt INCREASED

INDUSTRIAL USE Ot ' AGRlCrLTl;RAL rHonFCTSS.,c. 209. (a ) (1 ) There is hereby established a bipartisan Commission on Increased Industrial Use of Agricul tural Products (hereafter referred to as "the Commission"). The Commission shan becumposed of five memherf;, of whom not more t han th ree shall bemembers of the same politil 'al party, to be appointed by the President

by and with the advice and consent of the Senate. In makiilg suchappointments the President shall give due. consideration to the interestsof nlrious segments of agriculture. One. of the members so appointedshan be designated as Chairman by th e President.(2) ~ l e m b e r s of the Commission shall be paid compensation at therate of $50 per day and sha ll be reimbursed fo r necessary travelingand other expenses incurred by them in the perfol'lllan{'{' of their dutipsas members of the Commission.(3) The Commission is authorized to appoint and fix the compensation, without regard to the civil-service laws and the Classifieation Act of 194H, as a m e n d t " d ~ of an executive d irec to r and suchchemists, engineers, agriculturists, attorneys, and other assistants asit may deem necessary. The Secretary of ..Atrriculture is authorizedto provide the Commission with necessary otfjee space, and may detai l,on a reimbursahle basis, any personnel of the Department of Agriculture to assist t.he, Commission in currying- ont it.s work.(4) lTpon request. of the Commission, any oth er depart.ment oragency of the Government having information or data needed bythe Commission in c ~ l r r y i n g : out its duties nnder this section, shallmake snch information or data available to th e Commission fo r suchpurposes. The Commission shall take such s teps as may he necessaryto pro tect against unauthorized disclosure any such information ordata which may be classified fo r security purposes.

68 Stat. 456.7 USC 1703.

Post , p. 203.7 usc 1721.7 USC 1723.

Post , p . 203.

63 Stat. 954.susc 1071 note.


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202 PUBLIC LAW 54o-MAY 28, 1966 17o STAT .

62 Stat . 697.Report to Co n-gress .

Appropr iat ion.

Terminat ion.

"Fede ra l i r r igation o r drainageprojec t" .

(fi) S('l'\-je(' of an individual as a membpl' of the ('oBlmission orelllploynlPllt of all individual by th e COll1mis:;:iou in a technIcal orproft's:"'iollfll field, on a part-time or full-t ime basis, shall no t be COllsiderf>d as s(',l,,,jec or employment lJrillf!iIl,t! sl1eh individual \vithin th el)J'o,-isiolls of section :2Hl, 2Hi\ 284, 4i34 or IH14 of title 18 of the t"llitedSta tps ( 'ode, or spction 190 of tht' He"ise,] St at ntes (" L S. C. 9!)) .(b ) I t shall be t he duty o f the Commission to prepare and presentto the ('ollgrpss, 1I0t latpl' than .Tune 15, 19;")7, the ne{'essary reCOffiI l l P l } ( l a t i o l l ~ wh](lJ in it s Opllllon will bring about the greatest practieal\lSi." fo r ilHlllstrial IHirposes of ag-l'icultural prorluds not needed forhuman or Hnimal consumption, illellHling. bu t not limited to, use intIlt' mallUfadure of rubber, industrial alcohol, motor fuels, plastics,and o ther p r o d H d ~ .( ') Tlwl't" is hereby authorized to he appropriated such SlUn, no tto exceed $l;,)O,OOO, as lllay he n e e e s ~ a r . y to enable the Commission toCHIT\ , out it s flllH'tiollS.(1 ) rpOll submission of the l'erommt"lHlations refel're(l to in subsectioll (b), the- Commission shall ce.ase to exist.

DONATlOX TO rF.KAL AX)) COHRECTWN.\L TNI:-iTITFTWNSSEC. :210. Xotwithstanding: any other limitations as to the disposalof surplus {'oHlmodities acquired through price support operations jthe Commodit.y C'rerlit Corporation is anthorized OI l such terms andunder such regulntiolls as the Secretary of Agrieulture may deem inthe public interest, and upon application, to donate food commoditiesa('quired through priee support operations to Federal penal llnd corredional i n ~ t i t n t i ( ) n s , and to State correctional institutions fo r minors,other thall those in which fool} service is provided fo r inmates on afee, contrad, 01 ' concession basis.FEDlm.-\I, IHRIGATTON, DR.UNAGE, AND 'FlA)OD-CONTR()I .. PROJECTS

SEc,211. ( ,, ) For a period of three years f rom the date of enactmentof this _-\('t. no agricuHlll'al commodity determined by the Secretary of~ - \ g r i ( ' u H l l r e ill accordance with subsection (e ) to be ill surplus snpply~ h a l l n-'cpive any ('rop loans or Federal farIll payments or benefits ifp 'mYi l on any newly irrigated 01' drained l ands within any Federalirrifratioll or dl'aillftge project hereafter authorized unless such lands" ' e l ~ lIsed fo r the production of such eommodity prior to the enllctmentof this Act.(h) The Seeretary of the Interior and the Secretary of Agriculture~ h a l J ('ause to be included, in all irrigation, drainage, or Hood-control('Olltl'acts elltel'pd into with respect to Federal irrip;ation. drainage, orfloo(l-('olltrol projects hereafter a u t h o r i z e d ~ such provisions as theymay deelll lu-'cessary to provide for the enforcement of the provisiollsof t h i ~ sectioll. For a period of three years f rom the date of enadmentof this L\.ct slIrpllls crops : rrown on lands redaimed by ftood-(,(H1trolprojects hereafter authorized alld the lands so reclaimed shall beinelio'iblp for


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70 STAT.] PUBLIC LAW 540-MAY 28, 1956 203to the Federal reelamation laws peet of .Tune 17, 1902, ~ Stat. ~ 8 8 ,and Acts amendatory thereof or supplem.entary thereto) in effect atthe date of the adoption of this amendment and any irrig-utioll. or drain:l.re project subject to the laws relating to irrigation and ~ r i l i n a g e adn ~ n i s t e r c d by the Department of Agriculture or the Secretary ofAgriculture. PROCESSING OJ' DO:NATED FOOD COl\DIODlTIESS>:c.212. Section 416 of the Agricul tura l Act of 1949, as amended,

is amended by inserting before the last sentence thereof a nmv sentenceus follows: '''In addit ion, in the case of food commodities disposed ofunder this section, the Commodity Credit Corporation may pay thecost of processing such c o m n H ~ d i t i e s into a f o r I I ~ suitable for h o n ~ ( ~ orinstitutIOnal usc, such proeessmg to be accomphshed through pnvatetrade facilities to the greate:-,t extent possible.. 'TITLE I I I -MARKETING QUOTAS AND ACREAGE

ALLOTMENTSEXl'EXSION OF SL;mn:NDEH AND H E A P r O H T l O N M E ~ T PROVISIONS FOR WHEAT

ACR}:AGE ALWTMENTSSEC. ~ O J . Section ~ ~ (f) of t.he Agricultural Adjust.ment. Act. of1938, as amended, is amended by striking out "1955" wherever it appears in such subsection and inser6ng in l ieu thereof "1955, 1956, or1957".

ACREAGE ALLCYrl\fEN'I'S } ~ O R COTTON FOR 1957 AND l!);,)8SEC. 302. Section ~ 4 of the Agricultural Adjust.ment. Act of 1938,as amended, is hereby amended by adding at t.he end thereof the follow-ing: "Notwithstandlng the foregoing provisions of this se(tion, thenat.ional marketing quot.a fo r cotton fo r 1957 and 1958 shall be not.less than the number of bales required to provide a national acreageallotment. fo r 1957 and 19f)8 equal t.o t.he national acreage allotmentfor 1956: Provided, Tha t if the acreage allotment. for any St.at.e fo r

1957 or 1958 is less than it.s allot.ment fo r th e preceding year by morethan 1 pe r centum, such State allotment shall he increased so thatthe reduetion shall not exceed 1 per C'Amtum per annum, and the aereage required for such increase shall be in addItion to the national acreage a llotment for such year. Additional acreage apportioned to aState for 1957 or 1!)fjH under the foregoinp: proviso shall not be takeninto account in establishing future State allotments."COTTON-8MALL FAR:U Al..LOTl\fl:NTS

SEC. : 1 0 ~ . (a) Section ~ 4 (h) of th e Agricult.ural Adjust.ment Act.of 19:18, as amended, is amended hy inserting before the period at theend thereof a colon and the following: "Provided, That there ishereby established a national acreage reserve consisting of one hundred thousand acres which shall be in addition to the national acreageallotment; and sueh reserve shall be apportioned to t he S ta te s on th ebasis of their needs for additional acreage for establishing minimumfarm allotments under suhsection (f ) (I) , as determined bv the Secre-tary without regard to State and county acreage resel'-\'(',s (pxceptthat. the amount apportioned to Nevada shall be one t.housand acres),a,nd th e additional acreage so apportioned to th e Stat.e shall he apportIoned to the counties on the same basis and added to the


18/27

204 PUBLIC LAW 54Q-MAY 28 , 1956 [7 0 STAT.

63 Stat . 671.7 USC 1 34 4.

63 Stat . 671.7 USC 1344.

68 Stat . 9047 USC 1344.

he used to illcrease the county reserve ahove Ii) per ('{'J)tum of theeounty allotment determined without regard to such additional acreage). Additional acreage apportioned to a State for any year underth e foregoing proviso shall no t be t aken into account in establishingfuture State acreage allotments. Needs for additional acreage underth e foregoing: ~ r o v i s o and under the last proviso in subsection (e )shall be determllled as though allotments were first computed withoutregard to subsection (f) (1)."(b) Section ;)44 (e ) of the Agriculturul Adjustment Act of HJ38, asamended, is amended by inserting before the period at th e end thereofa colon and the followmg: "Provided furth(!/', That if the additionalacreage allocated to a Sta te under the proviso in suhsectiol1 (b) isless than the requirements as determined by the Sccretnry fo r establishing minimum farm allotments fo r th e State under subsection (f)(1), tlie acreage reserved by the State committee under this subsection~ h a l l no t be less than the smaller of (1) the remaining' acreage sodetermined to be required fo r establishing minimum farm allotmentsor (2) :> per centum of th e State acreage"1I0tment; und the acreagewh ich the State committee is required to reserve under this provisoshall be allocated to couuties on the basis of their needs fo r additionalacreage for establishing minimum farm allotments under subseetion(f ) (1), and added to the county acreage ullotment fo r apportionmentto farms pursuant to subsection (f) of this section (except that no partof such additional acreage shall be used to incIease the county reserveabove 15 pE'r centum of t he county a llotment detel'minNI withoutreg-ard to such additional acreages)."(c ) Section :>44 (f) of the Agricultural Adjustment Act of 1938,as amended, is amended by changing paragraph (1) to r e . ~ d as follows:"(1) Insofar as such acreage is available, there shall be nllotted thesmaller of the following: (A) four acres; or (B ) the highest numberof acr, s planted t o cot ton in any year of such three-year period."(d) The f irst sentence of section :>44 ( f) (6) of such Act isamended to read as follows: "Notwithstanding t.he provisions of paragraph (2 ) of this subsection, if the county committee recommends suchaction and the Secre tary determines that such act ion wil l r esul t in amore equitable distribution of th e county allotment nmoIlg- farms inthe county, the remainder of th e county acreage allotment (aftermaking allotments as provided in paragraph (1) of th is subsection)shall be allotted to f arms o ther thau farms to which an allotment hnsbeen made under paragraph (1) (B ) of this subsection so that th eallotmE'ut to each farm under this paragraph t o ~ t " t h e r with the amountof the allotment of such farm under paragr"ph (1) (A ) of this subsection shall be a prescribed percentag-e (which percentalle, shall beth e same fo r all such farms In the county) of the averag-e acreag-eplanted t o cotton on the fa rm during the thr ee yea rs immediat elypreceding the year fo r ,vhich sHch allotment is determinNl, adjust.edas may be necessary fo r abnormal conditions affecting planting-s durinA"such threeyear period: Pl'ovided, That. the ('ounty committee may ini ts discretion l im it any farm acreage allotment est3blished under th eprovisions of this paragraph for any y e ~ l r to an acreage not in excessof 50 pe r centum of the cropland on tlw farm, as determined pursuantto the provisions of paragraph (2) of this suhsection: Provided fur-ther, That any part o f the county acreage allotment not apportjonedunder this parap:raph by reason of the mitial application of such 50per centum limItation shall be added to the county acreage reserveunder paragraph (3) of this subsection and shall be available f or t hepurposes specified therein."

8 e ~ t f i ~ ~ c t i v lt y of (e ) The amendments made by this section shall be effective onlywith respect to 1957 and 1958 ('raps. For the Hl56 crop, an acreage


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70 STAT.) PUBLIC LAW 540-MAY 28 . 1956 205in each State equal to the acreage allotted in such State which theSe{'retary determines will not be planted, plneed in the acreage reSeITeor conservation reserve, or considered as planted under section 377of the Agricultural Adjustment Ad of 1\):>8, as amended, may heapportioned by the Seeretary alllong farms in sueIt State, having allotments of less t han the sma ll er of the following-: (1) four acres, 01 '(2) the highest number of acres planted to cotton in any of the years1953, ID54, and 1955.

} l I N T ~ I r . ~ f ACHE.-H.a: ALLOTMEXTS FOR RICESEC. 304. Section 853 (c) of the Agricultural Adjustment Act of1n8, as amended, is amended by adding at the end thereof thefollowing- :" (5 ) Each of the State acreage allotments for 1956 heretofore proclaimed by the Secretary, after adding thereto any a c r e a ~ e apportionedto farms in the State from the reserve acreage set aside pursuant tosubsection (a) of this section, shall be increased by such amount asmay be necessary to pro"ide such State with au allotment of not lessthan 85 per centum of it s final allotment established for 1955. Any

additional acreag-e required to provide such minimum allotment shallbe additional to t he national acreage allotment. In any Sta te havingcounty acreage allotments for 1 9 5 6 ~ the increase in the State aDotmpntshall be apportione,d amonp: counties in the S ta te on the same basis ast he S ta te allotment was heretofore apportioned among the counties,bu t without regard to adjustments for trends in acreage."(6) The national acreage allotments of rice for 1957 and 1958 shallbe not less than the national acreap:e allotment for 1956, including anyacreage allotted under paragraph (;)) of this subsection. and suchnational allotments for 1957 and 1958 shall he apportioned among theStates in the same proportion that they shared in the total acreageallotted in W56:'INCREASE IN PE. \NF f )IARKETLSG PENAL'nES

SEC. 305. Effective beginning with the HJ5G crop, section 35n (a) ofthe AO'ricultural Adjustment Ad of W;18, as amended, is amended byamend'ing the first sentence thereof to re,ad as follows: "Themarketingof any peanuts in excess of the marketing quota for the farm on whichsuch peanuts are produced, or the marketing of peanut s f rom anyfarm for which no acreage allotment wns determined, shall be subjectto a penalty at a rate e,qual to 75 per centum of the support price forpeanuts for the mHrketing year (August l-.July ;11).'COLLECTION 01" PEXNTT ) L\RKET IXG PENA l..TIES

SEC. 306. Section 3MI of the Agrieultural Adjustment Ad of W;18,as amended, is amended by adding two new subsections as follows:"(d) The person l iable for payment or colleetion of the penal typrovided hy this section shall he l iable also fo r interest thereon at therate of 6 per centum per annum from the date the penalty becomes dueuntil the date of payment of such penalty."(e) Unti l the amount of the peual ty provided by this section is:paid, a l ien on the crop of peanuts with respeet to which such penaltyIS incurred, and on any subseqnent crop of peanuts subject to marketingquotas in whieh the person liahle fo r paylllent of the penalty has aninterest shall he in effect in f a"or of the United States'"

POlit, p . 206.

69 Stat. 46 ':" USC 1353.

61 Stat . 721.7 USC 1359.

55 Stat . 90 .7 USC 1359.


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206 PUBLIC LAW 54Q-MAY 28 , t956r IU ;SERVATION OP UXUSED ACREAGE ALLOTMENTS

[7 0 STAT.

52 Stat . 66 .7 USC 1376.

52 Stat. 31 .7 USC 1281.63 Stat . 10517 USC 1441.

SEC. a07. The Agricul tural Adjustment Act of 1 ~ ) i : 1 8 , as amended,is amenued by inserting after section 37(; a new section as follows:" I'HESlmVATION OF UNUSJ,l'Cial eorn-producing area for any county, or forallY farm, With respect to the 1957 and subsequent crops, and pr icesllpport nwde available fo r such crops by Commodity Credit Corporation shall be at such level as the Secretary determines will assist producers in marketing corn ill t.he normal channels of trade bu t notencourage the uneconomic production of corn.(d ) Kotwithstanding any other provision of law, (1) th e level ofprice SUPP01:t fo r the 1 ~ ) 5 6 .:r op o f grain sorghums, .harle):', rye, andoats, respeetlvely, shall be 16 pe r ceutum of the panty pnce fo r the


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70 STAT.] PUBLIC LAW 54o-MAY 28, 1956 207COllll lH)(l i ty as of .May 1, Ifl5H, (2) the ]evel of price support fo r CO I'llproduced outsifle the l'ommereial ('Ol'Jl-pl'oducing- a rea, f or any cropfo r which base i\e}"eages ar e in efl'f'd (except as pl'O\.-ided il l (a) below),~ h a l l be t : l ~ l / 2 pCI' ( '( 'ntmH of t he level of price support fo r corn in th e('ol1lllwl'cial COrll-pl'oducing urea to produeers complying with acreagelimitations, and (a) if pnee support is made ava ilabl e for the 19[)7crop of ('Ol"n in th e cOlllmeJ'cial cOI'Il-producing area to producers Hotcomplying with :It'l'l'a:re limitations, price support shall be mIttIe available fo r the IH57 ('rop of grain soqdlUlllS, barley, 1')'1:', oats. and cornproduced outside the ('Ollllllercial corll-producing area, re:-:;pecti"e]y,at a len>l, no t less than 70 pe r centum of th e parity price, as of th ebeginllillf[ of th e marketing year, (h>tel'mined by the f-le(TPtary to hefair and n ~ a s o l l a b l e in r el at ion to the level at which price support ismade availahle fo r


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208 PUBLIC LAW 54Q-MAY 28, 1956 f70 STAT.R ule s a nd regula tions.Appropriations.

52 Stat . 38 .7 USC 1301 .t .seq.

S2 Stat . 60 .7 USC 1351.

(e ) The Secretary of Agriculture may prescribe such rules and regulations as Inay be appropriate to carry out the purposes of this section.(f ) There a re hereLy authorized to be appropriated such sums asHlay be necessary to carry out the objects of thi s section, such sums toremain availaLle llnijI expended.S1TDY uF PUleE THE.xDS FeR FUHEt 'T l ) l lODlTTS

~ E f ' . 402. The Secretary of AgTieUltUl'f' shnl1lllake a s tndy of pricetrt'llds and n ' l : t t i o l l ~ h i p s fo r basic forest prllducts slIch as sawlogs andpulpwood and within one year f rom the date of enactment of this Actshall submit a l'f',port thereon to the Congress.TITLE Y-CERTIFICATE PHOGIL\.M FOR InCE

SEC. ,jil l. Title III of the Agricultural Adjustmeut Act of 19a5. asamended, is amended (1) by changing the designation thereof to readas follO\n: "TITLE I I I -LOANS, PAInTY PAYMENTS. CON-SUj\fER SAFEGUAIWS. MARKETING QUOTAS, AND j\IARKETING CERTIFICATES"; (2) hy changing the designation ofsubtitle D t he reof to read as follows: "SCB'rI ' l1..E E- :MISCELLAXEOU8Pm)\'lSIOXS .\:."1> AI'l 'ROPIU.\TIOKS"; and (a) by inserting after subtitleC a new subti tle D, as follows:

"SFBTITLE D-RTCE C E R T I F I C A T J ' ~ S"LEGISLATH'E FINDlNGS

"SEC. :)803. The movement of rice from producer to consumer ispreponderantly in interstate and foreign commerce, and the sma llquantity of rice which does not move in interstate or foreign commerceaffects such cOlllmeree. In order to provide an adequate and balancedflow of rice in interstate and foreign commerce and to assure consumersan adequa te and s teady supply of rice at fair prices it is necessaryto regulate al l commerce in r ice in the manner provided in this subtitle.These findings are supplemental to and in addition to the findingscontained in section 3;")1 of th is Act."EFFECTIVE DATE AND T E R ~ n N A T I O N

"SEC. aSOb. Sed ions asoe throngh aSOg (c) shall be effective beginBing- with the first crop of rice, subsequent, to the 1956 crop mid priorto the 1959 crop, fo r w1li


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70 STAT.] PUBLIC LAW 54G-MAY 28, 1956 209in the ITnited States and any expected enlargement in such consumption predicated upon population trcw]s, increased per capita consumptioll, and other relevant factors.

"AI 'I 'ORTION) . fEKT OF I 'UDL\HY ~ . lUiET Q"COTA"SEC. 380d. (a ) The p rima ry market quota for r ice shall be apportioned by t he Sec re ta ry among the several States on the basis of the

a v e r a ~ e yield pe r acre of rice in each State during t he thr ee yea rsimmediately preceding the year for which the quota is proclaimed(or in the case of the apportiollment for H);,57, during the two yearspreceding such year) multiplied by the acreage allotment of suchState fo r such year."(b) The Sta te primary market quota shall be apportioned by theSecretary 1l11lOllg farms DB the basis of the acreage allotment establisbed fo r eacb farm multiplied by the normal yield pe r ane for thefarIll."REVIEW UF PRDfAHY )IAR]\:ET QFOTA

"SEC. :180e. Notice of the primary market quota shall be mailed tothe opera tor of the farm to which sueh qnota applies. The farmoperator may have sueh quota revie\yed in accordance with the provisions of sections 863 to 368, inelusive, of this Act.

" l 'R ICE S lTI ) ()RT"SEC 380f. (a) Notwi thstanding any o ther prOVIsIOn of law, th eC"ommodity Credit Corporation sha111nake price support available tocooperators through loans, purchases, or other operations on any cropof r ice for which a program is in effect under sections aHOc through380g (c) at such lew], not less thall 50 pe r centulll or more than 90per centum of the parity price therefor, as the Secretary determineswill no t discourage or prevent the exportation of r ice produced inthe United States."( b) Section 101 of the Agricultural c\ct of In49, as amended, shall

not. apply to price support maoe aVllilable on rice of any crop towhich this section is applicable, bu t ull the otlwr provisions of sHchAct, to the exten t not inconsisten t with this suutitle, shall apply toprice support oper:ltions carried ou t lllHler this section.; 'CERTIFlC. \TES

"SEC. ;J80g. (a) The Secretary of Agriculture shall for each marketin g yeur issue certificates to cooperators fo r a qn:lntity of rice equalto the primary marketing- quota for t he farm for suclJ marketing year,but not exceeding th(> normal yield of the acreage plante(l to rice onthe farm. The certificate shall have the value speelfied in subsection(e) of this section.~ (b) The lalldlord, tenants, and sharecroppers on the farlll shallshare in the certificates isslled ",ith respect to the farm ill the sameproportion as they sha re in the rice produ{'ed on the fann or the proceeds therefrom."(c) The p r o v i ~ i o l l s of spctlon :385 of this ~ \ . c t shall be applicableto certifil'at.es issued to pro(]ueers l lndf'l ' this section."( d) The Commodity Credit COl'pOrlltioll shall issue and sell certifi.eates to persons engaged jn th e processing of rough r ice or the importing of processed rice. Each such cer ti fica te shall be sold for auamonnt equal to the value thereof, as spedfied in subsection (e ) ofthis sectioll.

i,nzs 0 - 'i7 - 18 (Vel . 70)

52 Stat . 63 -7 U SC 1 3 6 3 -1368.

63 Stat . 1051.7 USC 1441.

52 Stat . 68 .7 USC 1 38 5.


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210 PUBLIC LAW 54D-MAY 28 , 1956 17o STAT .

68 Stat. 897.7USC 1741.

"(e) The value of each certificate issued Ullder this section shallbe equal to the difference between 90 per centum of the parity priceof rice as of the beginning of the marketill:,! year for which theeert.itieate is issup

be made with resped to rice of such crop, imported rice, or riceacquired from Commodity Credit Corporation. The amount of suchpayment per hundredweight shall he the amount by which the estimat.eo average price paid producers during the marketing year forthe preceding crop exceeds the estimated average support price forthe first crop for which a program is made effective. There arehereby authorized to be appropriated such sums as may be necessaryto make payment to Commodity Credit Corporation fo r expenditurespursuant to this section."RICE SET-ASIDF.

"SEC. 380i. All rough and processed rice in the inventories of Commodity Credit Corporation as of sixty days after the heginning ofthe marketing year for the first crop for which a program is in effectunder sections 380e throngh a80g (c), not exceeding twenty millionhundredweight of rough rice or its equivalent in processed rice maybe transferred to and be made a part of the commodity set-aside ofrice "gtablished pursuant to section 101 of the Agrieultural Actof 1954.

"EXEMPTIONS"SEC. 380j. The provisions of this subtitle shall no t apply to nonirrigated rice produced on any farm on which the acreage planted tononlrrigated rice does not exceed three acres, and the provisions ofsections a80c through 380g (c ) shall not app ly to rice produced inPuerto Rico or Hawaii.

"PROCESSING RESTRICTIONS"SEC. 3HOk. (a ) Eaeh person who on or after the behrinning of the

marketing year for the first eTop for which a program is in effeetunder sections 3HOc through 380g (e), engages In the proeessing ofrough rice in the 'United States shall, upon processing any quantity ofrough rice, acquire certificates issued under seetion 380g of this Actin an amount sufficient to eover such quantity of rough rice."(b) The requirements of subsection (a ) of t his section shall notbe applicable to the proeessing in Puerto Rico or Hawaii of roughrice grown in Puerto Rico or Hawaii, respeetively.


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70 STAT.] PUBLIC LAW 54Q-MAY 28, 1956 211"(c) FPOll the exportation from the l ~ l l i t f ' d States to allY couniryotlier thall Cllb,l of any \H'of'essed rice with respect to whid1 certificateswere acquired in aceort allce with the. requirements of ~ l 1 b s p d i o n (a )of this section or section ;)801, the Commodity Cn'dit Corporation

shall pay to the l'xpOl"ter all amount equal to the vallie of the certificates fo r the rongh rice equivalent of su('h processed rice."nU'OHT JU>;THH..'THlXS

SEC. i3Hlll. End1 p e l ' ~ O l l who, 011 or after the beginning of the marketing year f or th e nrst crop fo r which a program is in effect under~ e d i o i l s 3HOc through aHOg (c), imports processed rice into the, UnitedStates shall :lcquire certificates lsslH'd under section :iS0g- of this _-\ctcovering the rough rice e(!l1ivalent of sueh processed rice.

"HE(;CL.\TH1XS'SEC. ;i8()lll. The ~ l ' l ' r c t a r y sllall p l ' t ' ~ ( ' I ' i b e regulations gOYCrnIngthe i S ~ l l a n c e , redemption, acquisition, use, tl' ,lllsfer, amI dispositionof certificates herelllHler.

"C l nL PEr-.< A L T I E ~"SEC. :-{801l. ~ \ I l Y persoll who violates or a t t e m p t ~ to viobte, or whoparticipates o r llids ill the violation of, any of the provisions of sections :l80k or ; j ~ 0 1 of thi s Act, 01 ' regnlations pres


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212 PUBLIC LAW 540-MAY 28, 1958 bo STAT.

52 Stat . 41 .7 USC 1301.

7 USC 14 460

"( d) ' U n i t t ~ d States' means the several States, the Territories ofITawnii find ~ \ J H s k a , the Distrid of Columbia, and the Commonwealth of Puerto Hico."(e) 'exporter' means the cOllsignor named in the hill of ladingunde.r which the processed rice is exported: jJroL'idr:t!, }wllwveJ',That any other person may oe considered to he the exporter iftlte consignor nalHed in the bill of lading: waives his claim infavor of such other person."(f) 'rough rice equivalent' l l le: l l lS the quantity 'o f rough ricenormally used (as determined by tbe Secretary of Agriculture)il l the production of a particular quantity of processed rice, butshall not be more than one hundred pounds of rOllgh rice fo reach sixty-eight pounds of processed rice."(g) ' imporf means to enter, or withdraw from warehouse, forconsumptioll."N O R ~ I A L YIELD p on m eE

SEC. 502. Paragraph (13) of section 301 (b) of the AgricultnralAdjustment Act of 1938, as amended, is amended by (1) redesignatingsubparagraph (E) as subparagraph (0 ) ; and (2) striking out subparagraph (D) and inserting in lieu thereof the following:"(D) 'Normal yield for any county, in the case of rice, shall he theaverage yield per acre of rice for t l u ~ ('ounty during the five calendaryears immediately precedin;.r the year for which such normal yield isdetermined, adjusted for ahnormal weather conditions and for trendsin yields. If for any such year data are not avnilable, or there is noactual yield, an appraised yield fo r sneh year, detennined in accordance with regulatIOns issued by the Secretary, taking into considerat ion the yields obtained in snrronnding' eounties during: sueh year andthe yield in years for which data ar e available, shall be used as theactual yield fo r such year."(E) 'Normal yield' for any farm, in the case of r ice, shall be theaverage yield per acre of rice fo r the farm dn ring the five calendaryears immediately preceding" the yea r for which such normal yield isdetermined, adjusted for abnormal weather conditions and for trendsin yields. I f f or any such year the data are not available or there is110 actual yield, then the normal yield for the farm shall be appraisedin accordance with I ' e ~ n l : t t i o l l s issued b.y the S e c r e t a r y ~ taking: intoconsideration almormal ,,-eather conditions, trends in yields. thenormal yield for the county, th e yields obtained on adjacent furIllsduring' such year and the yield in years for ,,,hich data are nvailable."(F) In applying subparagl"l\phs (D) and (E), if on ac("ount ofdrought, flood, insect pe-sts, plant disease, or other uncontrollahlenatural cause, the yield fo r any year of such five-year period i s lessthan 75 per ccntum of the average, 75 pel' centum of S\1ch average shallhe substituted therefor in caklllat-ing: the normal yield pel' 3ere. If ,on account of abnormally favorable weather conditions, the yield fo rany year of sueh five-year period is in excess of 125 pe r centum of the

a n ~ r a ~ f ' , 12,;') per celltulll of snch aver,l:,re shall be suhstitllted thereforin calculating: the normal yield per acre."

J>H!CE i - i r p P O H ' I ' ~ - C O ' l T O K ~ E E n . \XD 1"(IYBEANSSEC. GO!. ( a) T it le II of the .\.gricultural Act of 1949, as amended. isamended by adding at th e end thereof a new section as follows:"SEC. 203. 'Vheneyer the price of either cottonseed or SOylWllllS issupported under this ~ \ c t , the pl'iee of the other shnll he supported at


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70 STAT,] PUBLIC LAW 541-MAY 28, 1956 213such level as the Secretary determines wil l cause them to compete onequal terms on the market."(b) The amendment made by this section shan take effect with the1956 crop.

TRANSITIONAL PARITY FOR R\RIC COMMODITIES FROZEN DUIUNG 1957SEC. 602. Section 301 (a) (1 ) (E) (ii) of the Agricultural Adjustment Act of 1938, as amended ( i U. S. C. 1301 (a ) (1) (E) (ii isamended by inserting after "full calendar years" the following: "(notcounting 1956 in the case of basic agricultural commodities)-". The Report to Co n-. . gress .Secretary shall make a thorough study of pOSSIble methods of improv-ing the parity formula and report thereon, with specific recommenda-tions, including d raf ts o f necessary legislation to carry out suchrecommendations, to Congress not later than January 31, 195i.Approved May 28, 1956.

1956 Agricultural Act

Documents

Transcript of 1956 Agricultural Act