
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: 7USC1339]

 
                          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. 1339. Land use


(a) Penalties: computation, lien, joint and several liability and 
        interest; exceptions: nonsurplus supply crops, substantial 
        impairment, and nonproduction of wheat; diverted acreage: 
        amount, annual identity, and grazing; crops available for 
        marketing

    (1) During any year in which marketing quotas for wheat are in 
effect, the producers on any farm (except a new farm receiving an 
allotment from the reserve for new farms) on which any crop is produced 
on acreage required to be diverted from the production of wheat shall be 
subject to a penalty on such crop, in addition to any marketing quota 
penalty applicable to such crops, as provided in this subsection unless 
(1) the crop is designated by the Secretary as one which is not in 
surplus supply and will not be in surplus supply if it is permitted to 
be grown on the diverted acreage, or as one the production of which will 
not substantially impair the purpose of the requirements of this 
section, or (2) no wheat is produced on the farm, and the producers have 
not filed an agreement or a statement of intention to participate in the 
payment program formulated pursuant to subsection (b) of this section. 
The acreage required to be diverted from the production of wheat on the 
farm shall be an acreage of cropland equal to the number of acres 
determined by multiplying the farm acreage allotment by the diversion 
factor determined by dividing the number of acres by which the national 
acreage allotment (less an acreage equal to the increased acreage 
allotted for 1966 pursuant to section 1335 of this title) is reduced 
below fifty-five million acres by the number of acres in the national 
acreage allotment (less an acreage equal to the increased acreage 
allotted for 1966 pursuant to section 1335 of this title). The actual 
production of any crop subject to penalty under this subsection shall be 
regarded as available for marketing and the penalty on such crop shall 
be computed on the actual acreage of such crop at the rate of 65 per 
centum of the parity price per bushel of wheat as of May 1 of the 
calendar year in which such crop is harvested, multiplied by the normal 
yield of wheat per acre established for the farm. Until the producers on 
any farm pay the penalty on such crop, the entire crop of wheat produced 
on the farm and any subsequent crop of wheat subject to marketing quotas 
in which the producer has an interest shall be subject to a lien in 
favor of the United States for the amount of the penalty. Each producer 
having an interest in the crop or crops on acreage diverted or required 
to be diverted from the production of wheat shall be jointly and 
severally liable for the entire amount of the penalty. The persons 
liable for the payment or collection of the penalty under this section 
shall be liable also for interest thereon at the rate of 6 per centum 
per annum from the date the penalty becomes due until the date of 
payment of such penalty.
    (2) The Secretary may require that the acreage on any farm diverted 
from the production of wheat be land which was diverted from the 
production of wheat in the previous year, to the extent he determines 
that such requirement is necessary to effectuate the purposes of this 
part.
    (3) The Secretary may permit the diverted acreage to be grazed in 
accordance with regulations prescribed by the Secretary.

(b) Payment program for 1964 through 1970 crops; terms and conditions; 
        amount; additional diverted acreage; conservation and soil-
        conserving uses; adjustment; knowledge of exceeding acreage 
        allotment; acreage allotment not exceeded by delivery to 
        Secretary of farm marketing excess or storage in accordance with 
        regulations to avoid or postpone payment of penalty or by farms 
        exempt from marketing quota; new farms ineligible for payments; 
        sharing and medium of payments

    The Secretary is authorized to formulate and carry out a program 
with respect to the crops of wheat planted for harvest in the calendar 
years 1964 through 1970 under which, subject to such terms and 
conditions as he determines are desirable to effectuate the purposes of 
this section, payments may be made in amounts not in excess of 50 per 
centum of the estimated basic county support rate for wheat not 
accompanied by marketing certificates on the normal production of the 
acreage diverted taking into account the income objectives of the 
chapter, determined by the Secretary to be fair and reasonable with 
respect to acreage diverted pursuant to subsection (a) of this section. 
Any producer who complies with his 1964 farm acreage allotment for wheat 
and with the other requirements of the program shall be eligible to 
receive payments under the program for the 1964 crop of wheat. The 
Secretary may permit producers on any farm to divert from the production 
of wheat an acreage, in addition to the acreage diverted pursuant to 
subsection (a) of this section, equal to 50 per centum of the farm 
acreage allotment for wheat: Provided, That the producers on any farm 
may, at their election, divert such acreage in addition to the acreage 
diverted pursuant to subsection (a) of this section, as will bring the 
total acreage diverted on the farm to twenty-five acres. Such program 
shall require (1) that the diverted acreage shall be devoted to 
conservation uses approved by the Secretary; (2) that the total acreage 
of cropland on the farm devoted to soil-conserving uses, including 
summer fallow and idle land but excluding the acreage diverted as 
provided above, shall be not less than the total average acreage of 
cropland devoted to soil-conserving uses including summer fallow and 
idle land on the farm during a representative period, as determined by 
the Secretary, adjusted to the extent the Secretary determines 
appropriate for (i) abnormal weather conditions or other factors 
affecting production, (ii) established crop-rotation practices on the 
farm, (iii) participation in other Federal farm programs, (iv) unusually 
high percentage of land on the farm devoted to conserving uses, and (v) 
other factors which the Secretary determines should be considered for 
the purpose of establishing a fair and equitable soil-conserving acreage 
for the farm; and (3) that the producer shall not knowingly exceed (i) 
any farm acreage allotment in effect for any commodity produced on the 
farm, and (ii) except as the Secretary may by regulations prescribe, 
with the farm acreage allotments on any other farm for any crop in which 
the producer has a share: Provided, That no producer shall be deemed to 
have exceeded a farm acreage allotment for wheat if the entire amount of 
the farm marketing excess is delivered to the Secretary or stored in 
accordance with applicable regulations to avoid or postpone payment of 
the penalty: And provided further, That no producer shall be deemed to 
have exceeded a farm acreage allotment for any crop of wheat if the farm 
is exempt from the farm marketing quota for such crop under section 1335 
of this title. The producers on a new farm shall not be eligible for 
payments hereunder. The Secretary shall provide for the sharing of 
payment among producers on the farm on a fair and equitable basis. 
Payments may be made in cash or in wheat.

(c) Adjustment of payments

    The Secretary may provide for adjusting any payment on account of 
failure to comply with the terms and conditions of the land-use program 
formulated under subsection (b) of this section.

(d) Advance payments

    Not to exceed 50 per centum of any payment to producers under 
subsection (b) of this section may be made in advance of determination 
of performance.

(e) Diverted acreage used for production of certain crops; rate of 
        payment; limitation on rate

    The Secretary may permit all or any part of the diverted acreage to 
be devoted to the production of guar, sesame, safflower, sunflower, 
castor beans, mustard seed, crambe, plantago ovato, and flaxseed, if he 
determines that such production of the commodity is needed to provide an 
adequate supply, is not likely to increase the cost of the price-support 
program and will not adversely affect farm income, subject to the 
condition that payment with respect to diverted acreage devoted to any 
such crop shall be at a rate determined by the Secretary to be fair and 
reasonable taking into consideration the use of such acreage for the 
production of such crops: Provided, That in no event shall the payment 
exceed one-half the rate which otherwise would be applicable if such 
acreage were devoted to conservation uses.

(f) Additional terms and conditions

    The program formulated pursuant to subsection (b) of this section 
may include such terms and conditions, including provision for the 
control of erosion, in addition to those specifically provided for 
herein, as the Secretary determines are desirable to effectuate the 
purposes of this section.

(g) Regulations

    The Secretary is authorized to promulgate such regulations as may be 
desirable to carry out the provisions of this section.

(h) Commodity Credit Corporation funds and authorization of 
        appropriations for payments and administrative expenses

    The Commodity Credit Corporation is authorized to utilize its 
capital funds and other assets for the purpose of making the payments 
authorized in this section and to pay administrative expenses necessary 
in carrying out this section during the period ending June 30, 1965. 
There is authorized to be appropriated such amounts as may be necessary 
thereafter to pay such administrative expenses.

(Feb. 16, 1938, ch. 30, title III, Sec. 339, as added Pub. L. 87-703, 
title III, Sec. 318, Sept. 27, 1962, 76 Stat. 622; amended Pub. L. 88-
297, title II, Sec. 202(7)-(9), Apr. 11, 1964, 78 Stat. 179; Pub. L. 89-
321, title V, Secs. 501(9), (10), 507, Nov. 3, 1965, 79 Stat. 1201, 
1204; Pub. L. 90-559, Sec. 1(1), Oct. 11, 1968, 82 Stat. 996.)


                            Prior Provisions

    A prior section 1339, act Feb. 16, 1938, ch. 30, title III, 
Sec. 339, 52 Stat. 55, related to penalties for marketing wheat in 
excess of quotas, prior to repeal by act July 14, 1953, ch. 194, 
Secs. 2, 5, 67 Stat. 151, 152, effective with respect to the 1954 and 
subsequent crops of wheat. See section 1340(2) of this title.


                               Amendments

    1968--Subsec. (b). Pub. L. 90-559 provided for a one year extension 
through 1970.
    1965--Subsec. (a)(1). Pub. L. 89-321, Sec. 507, inserted ``(less an 
acreage equal to the increased acreage allotted for 1966 pursuant to 
section 1335 of this title)'' after ``national acreage allotment'' 
wherever appearing.
    Subsec. (b). Pub. L. 89-321, Sec. 501(9), substituted ``crops of 
wheat planted for harvest in the calendar years 1964 through 1969'' for 
``1964 and 1965 crops of wheat'', ``50 per centum of the farm acreage 
allotment'' for ``20 per centum of the farm acreage allotment'', and 
``twenty-five acres'' for ``fifteen acres''.
    Subsec. (e). Pub. L. 89-321, Sec. 501(10), authorized Secretary to 
permit all or part of diverted acreage to be devoted to mustardseed, 
crambe, and plantago ovato in addition to previously authorized guar, 
sesame, safflower, sunflower, castor beans, and flax, if he determines 
that such production of the commodity is needed, is not likely to 
increase cost of price-support program, and will not adversely affect 
farm income, and removed from proviso the prohibition against making 
available price supports for production of such crops on diverted 
acreage.
    1964--Subsec. (a)(1). Pub. L. 88-297, Sec. 202(7), temporarily 
suspended land-use penalties and made the diversion of land from the 
production of wheat only a condition of eligibility for receiving wheat 
marketing certificates. See Effective and Termination Dates of 1964 
Amendment note below.
    Subsec. (b). Pub. L. 88-297, Sec. 202(8), inserted in first sentence 
``for wheat not accompanied by marketing certificates'' after ``basic 
county support rate'' and inserted after first sentence ``Any producer 
who complies with his 1964 farm acreage allotment for wheat and with the 
other requirements of the program shall be eligible to receive payments 
under the program for the 1964 crop of wheat.''
    Subsec. (h). Pub. L. 88-297, Sec. 202(9), substituted ``June 30, 
1965'' for ``June 30, 1963''.


                    Effective Date of 1965 Amendment

    Amendment by section 501 of Pub. L. 89-321 effective beginning with 
crop planted for harvest in calendar year 1966, see section 501 of Pub. 
L. 89-321, set out as a note under section 1332 of this title.
    Section 507 of Pub. L. 89-321 provided that the amendment made by 
that section is effective beginning with crop planted for harvest in 
calendar year 1967.


            Effective and Termination Dates of 1964 Amendment

    Section 202(7) of Pub. L. 88-297, as amended by Pub. L. 89-321, 
title V, Sec. 505(1), Nov. 3, 1965, 79 Stat. 1203; Pub. L. 90-559, 
Sec. 1(1), Oct. 11, 1968, 82 Stat. 996, provided that the amendment made 
by that section is effective only with respect to crops planted for 
harvest in calendar years 1964 through 1970.


                             Effective Date

    Section 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 an Effective Date of 1962 
Amendment 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.
    Section inapplicable to 1991 through 1995 crops of wheat, see 
section 303 of Pub. L. 101-624, set out as a note under section 1331 of 
this title.
    Section inapplicable to 1986 through 1990 crops of wheat, see 
section 310(b) of Pub. L. 99-198, set out as a note under section 1331 
of this title.
    Section inapplicable to 1982 through 1985 crops of wheat, see 
section 303 of Pub. L. 97-98, set out as a note under section 1331 of 
this title.
    Section inapplicable to 1978 through 1981 crops of wheat, see 
section 404 of Pub. L. 95-113, set out as a note under section 1331 of 
this title.
    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.


          Diversion Programs; Good Faith Performance; Payments

    Performance in good faith as meeting requirements of this section 
and authorizing payments, see section 1339a of this title.


Wheat Diversion Programs; Credits in Establishment of State, County and 
                    Farm Acreage Allotments for Wheat

    Credits to State, county and farm of acreage diverted from 
production of wheat as though actually devoted to such production, see 
section 1339b of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1334, 1335, 1379c, 1445a of 
this title.
