
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1321]

 
                          TITLE 7--AGRICULTURE
 
             CHAPTER 35--AGRICULTURAL ADJUSTMENT ACT OF 1938
 
 SUBCHAPTER II--LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING 
                   QUOTAS, AND MARKETING CERTIFICATES
 
                        Part B--Marketing Quotas
 
                  subpart ii--acreage allotments--corn
 
Sec. 1321. Legislative finding of effect on interstate and 
        foreign commerce and necessity of regulation
        
    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 foreign 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 corn 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.

(Feb. 16, 1938, ch. 30, title III, Sec. 321, 52 Stat. 48.)


                       Inapplicability of Section

    Section inapplicable to 1996 through 2002 crops of loan commodities, 
peanuts, and sugar and inapplicable to milk during period beginning Apr. 
4, 1996, and ending Dec. 31, 2002, see section 7301(a)(1)(A) of this 
title.
