
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1331]

 
                          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 iii--marketing quotas--wheat
 
Sec. 1331. Legislative finding of effect on interstate and 
        foreign commerce and necessity of regulation
        
    Wheat is a basic source of food for the Nation, is produced 
throughout the United States by more than a million farmers, is sold on 
the country-wide market and, as wheat or flour, flows almost entirely 
through instrumentalities of interstate and foreign commerce from 
producers to consumers.
    Abnormally excessive and abnormally deficient supplies of wheat on 
the country-wide market acutely and directly affect, burden, and 
obstruct interstate and foreign commerce. Abnormally excessive supplies 
overtax the facilities of interstate and foreign transportation, congest 
terminal markets and milling centers in the flow of wheat from producers 
to consumers, depress the price of wheat in interstate and foreign 
commerce, and otherwise disrupt the orderly marketing of such commodity 
in such commerce. Abnormally deficient supplies result in an inadequate 
flow of wheat and its products in interstate and foreign commerce with 
consequent injurious effects to the instrumentalities of such commerce 
and with excessive increases in the prices of wheat and its products in 
interstate and foreign commerce.
    It is in the interest of the general welfare that interstate and 
foreign commerce in wheat and its products be protected from such 
burdensome surpluses and distressing shortages, and that a supply of 
wheat be maintained which is adequate to meet domestic consumption and 
export requirements in years of drought, flood, and other adverse 
conditions as well as in years of plenty, and that the soil resources of 
the Nation be not wasted in the production of such burdensome surpluses. 
Such surpluses result in disastrously low prices of wheat and other 
grains to wheat producers, destroy the purchasing power of grain 
producers for industrial products, and reduce the value of the 
agricultural assets supporting the national credit structure. Such 
shortages of wheat result in unreasonably high prices of flour and bread 
to consumers and loss of market outlets by wheat producers.
    The conditions affecting the production and marketing of wheat are 
such that, without Federal assistance, farmers, individually or in 
cooperation, cannot effectively prevent the recurrence of such surpluses 
and shortages and the burdens on interstate and foreign commerce 
resulting therefrom, maintain normal supplies of wheat, or provide for 
the orderly marketing thereof in interstate and foreign commerce.
    Wheat which is planted and not disposed of prior to the date 
prescribed by the Secretary for the disposal of excess acres of wheat is 
an addition to the total supply of wheat and has a direct effect on the 
price of wheat in interstate and foreign commerce and may also affect 
the supply and price of livestock and livestock products. In the 
circumstances, wheat not disposed of prior to such date must be 
considered in the same manner as mechanically harvested wheat in order 
to achieve the policy of the chapter.
    The diversion of substantial acreages from wheat to the production 
of commodities which are in surplus supply or which will be in surplus 
supply if they are permitted to be grown on the diverted acreage would 
burden, obstruct, and adversely affect interstate and foreign commerce 
in such commodities, and would adversely affect the prices of such 
commodities in interstate and foreign commerce. Small changes in the 
supply of a commodity could create a sufficient surplus to affect 
seriously the price of such commodity in interstate and foreign 
commerce. Large changes in the supply of such commodity could have a 
more acute effect on the price of the commodity in interstate and 
foreign commerce and, also, could overtax the handling, processing, and 
transportation facilities through which the flow of interstate and 
foreign commerce in such commodity is directed. Such adverse effects 
caused by overproduction in one year could further result in a deficient 
supply of the commodity in the succeeding year, causing excessive 
increases in the price of the commodity in interstate and foreign 
commerce in such year. It is, therefore, necessary to prevent acreage 
diverted from the production of wheat to be used to produce commodities 
which are in surplus supply or which will be in surplus supply if they 
are permitted to be grown on the diverted acreage.
    The provisions of this subpart affording a cooperative plan to wheat 
producers are necessary in order to minimize recurring surpluses and 
shortages of wheat in interstate and foreign commerce, to provide for 
the maintenance of adequate reserve supplies thereof, to provide for an 
adequate and orderly flow of wheat and its products in interstate and 
foreign commerce at prices which are fair and reasonable to farmers and 
consumers, and to prevent acreage diverted from the production of wheat 
from adversely affecting other commodities in interstate and foreign 
commerce.

(Feb. 16, 1938, ch. 30, title III, Sec. 331, 52 Stat. 52; Pub. L. 87-
703, title III, Sec. 310, Sept. 27, 1962, 76 Stat. 618.)


                               Amendments

    1962--Pub. L. 87-703 provided additional findings respecting the 
addition of wheat to total supply of wheat and effect of such addition 
on price of wheat and supply and price of livestock and livestock 
products, the need to prevent the use of acreage diverted from wheat 
production to produce other commodities in surplus supply and the 
consequences of a small or large change in the supply of a commodity and 
the necessity of a cooperative plan to wheat producers to provide for 
flow of wheat at fair and reasonable prices to farmers and consumers and 
to prevent diverted acreage from production of wheat from adversely 
affecting other commodities in interstate and foreign commerce.


                    Effective Date of 1962 Amendment

    Amendment by Pub. L. 87-703 effective only with respect to programs 
applicable to crops planted for harvest in calendar year 1964 or any 
subsequent year and marketing years beginning in calendar year 1964, or 
any subsequent year, see section 323 of Pub. L. 87-703, set out as a 
note under section 1301 of this title.


                       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.
    Pub. L. 101-624, title III, Sec. 303, Nov. 28, 1990, 104 Stat. 3400, 
provided that: ``Sections 331 through 339, 379b, and 379c of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through 1339, 1379b, 
and 1379c) shall not be applicable to the 1991 through 1995 crops of 
wheat.''
    Pub. L. 99-198, title III, Sec. 310(b), Dec. 23, 1985, 99 Stat. 
1395, provided that: ``Sections 331, 339, 379b, and 379c of such Act 
[the Agricultural Adjustment Act of 1938] (7 U.S.C. 1331, 1339, 1379b, 
and 1379c) shall not be applicable to the 1986 through 1990 crops of 
wheat.''
     Pub. L. 97-98, title III, Sec. 303, Dec. 22, 1981, 95 Stat. 1227, 
provided that: ``Sections 331, 332, 333, 334, 335, 336, 338, 339, 379b, 
and 379c of the Agricultural Adjustment Act of 1938 [this section and 
sections 1332, 1333, 1334, 1335, 1336, 1338, 1339, 1379b, and 1379c of 
this title] shall not be applicable to the 1982 through 1985 crops of 
wheat.''
    Pub. L. 95-113, title IV, Sec. 404, Sept. 29, 1977, 91 Stat. 927, 
provided that: ``Sections 331, 332, 333, 334, 335, 336, 338, 339, 379b, 
and 379c of the Agricultural Adjustment Act of 1938, as amended [this 
section and sections 1332, 1333, 1334, 1335, 1336, 1338, 1339, 1379b, 
and 1379c of this title], shall not be applicable to the 1978 through 
1981 crops of wheat.''
    Pub. L. 91-524, title IV, Sec. 404(1), Nov. 30, 1970, 84 Stat. 1366, 
as amended by Pub. L. 93-86, Sec. 1(11), Aug. 10, 1973, 87 Stat. 229, 
provided that this section is not applicable to 1971 through 1977 crops 
of wheat.
