
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: 7USC1340]

 
                          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. 1340. Supplemental provisions relating to wheat marketing 
        quotas; marketing penalty for rice; crop loans on cotton, wheat, 
        rice, tobacco, and peanuts
        
    Notwithstanding the other provisions of this chapter--
        (1) The farm marketing quota for any crop of wheat shall be the 
    actual production of the acreage planted to such crop of wheat on 
    the farm less the farm marketing excess. The farm marketing excess 
    shall be an amount equal to twice the projected farm yield 
    multiplied by the number of acres of such crop of wheat on the farm 
    in excess of the farm acreage allotment for such crop unless the 
    producer, in accordance with regulations issued by the Secretary and 
    within the time prescribed therein, establishes to the satisfaction 
    of the Secretary the actual production of such crop of wheat on the 
    farm. If such actual production is so established, the farm 
    marketing excess shall be an amount equal to the actual production 
    of the number of acres of wheat on the farm in excess of the farm 
    acreage allotment for such crop. In determining the farm marketing 
    quota and farm marketing excess, any acreage of wheat remaining 
    after the date prescribed by the Secretary for the disposal of 
    excess acres of wheat shall be included as acreage of wheat on the 
    farm, and the production thereof shall be appraised in such manner 
    as the Secretary determines will provide a reasonably accurate 
    estimate of such production. Any acreage of wheat disposed of in 
    accordance with regulations issued by the Secretary prior to such 
    date as may be prescribed by the Secretary shall be excluded in 
    determining the farm marketing quota and farm marketing excess. 
    Self-seeded (volunteer) wheat shall be included in determining the 
    acreage of wheat. Marketing quotas for any marketing year shall be 
    in effect with respect to wheat harvested in the calendar year in 
    which such marketing year begins notwithstanding that the wheat is 
    marketed prior to the beginning of such marketing year.
        (2) Whenever farm marketing quotas are in effect with respect to 
    any crop of wheat, the producers on a farm shall be subject to a 
    penalty on the farm marketing excess of wheat at a rate per bushel 
    equal to 65 per centum of the parity price per bushel of wheat as of 
    May 1 of the calendar year in which the crop is harvested. Each 
    producer having an interest in the crop of wheat on any farm for 
    which a farm marketing excess of wheat is determined shall be 
    jointly and severally liable for the entire amount of the penalty on 
    the farm marketing excess.
        (3) The farm marketing excess for wheat shall be regarded as 
    available for marketing, and the penalty and the storage amount or 
    amounts to be delivered to the Secretary of the commodity shall be 
    computed upon twice the normal production of the excess acreage. 
    Where, upon the application of the producer for an adjustment of 
    penalty or of storage, it is shown to the satisfaction of the 
    Secretary that the actual production of the excess acreage is less 
    than twice the normal production thereof, the difference between the 
    amount of the penalty or storage as computed upon the basis of twice 
    the normal production and as computed upon the basis of actual 
    production shall be returned to or allowed the producer. The 
    Secretary shall issue regulations under which the farm marketing 
    excess of the commodity for the farm may be stored or delivered to 
    him. Upon failure to store or deliver to the Secretary the farm 
    marketing excess within such time as may be determined under 
    regulations prescribed by the Secretary, the penalty computed as 
    aforesaid shall be paid by the producer. Any wheat delivered to the 
    Secretary hereunder shall become the property of the United States 
    and shall be disposed of by the Secretary for relief purposes in the 
    United States or in foreign countries or in such other manner as he 
    shall determine will divert it from the normal channels of trade and 
    commerce.
        (4) Until the producers on any farm store, deliver to the 
    Secretary, or pay the penalty on, the farm marketing excess of any 
    crop of wheat, 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.
        (5) The penalty upon wheat stored shall be paid by the producer 
    at the time, and to the extent, of any depletion in the amount of 
    the commodity so stored, except depletion resulting from some cause 
    beyond the control of the producer.
        (6) Whenever the planted acreage of the then current crop of 
    wheat on any farm is less than the farm acreage allotment for such 
    commodity, the total amount of the commodity from any previous crops 
    required to be stored in order to postpone or avoid payment of 
    penalty shall be reduced by that amount which is equal to the normal 
    production of the number of acres by which the farm acreage 
    allotment exceeds the planted acreage. The provisions of section 
    1326(b) and (c) of this title shall be applicable also to wheat.
        (7) Until the farm marketing excess of wheat is stored or 
    delivered to the Secretary or the penalty thereon is paid, each 
    bushel of the commodity produced on the farm which is sold by the 
    producer to any person within the United States shall be subject to 
    the penalty as specified in paragraph (2) of this section. Such 
    penalty shall be paid by the buyer, who may deduct an amount 
    equivalent to the penalty from the price paid to the producer. If 
    the buyer fails to collect such penalty, such buyer and all persons 
    entitled to share in the wheat marketed from the farm or the 
    proceeds thereof shall be jointly and severally liable for such 
    penalty.
        (8) The marketing penalty for rice produced in the calendar year 
    in which any marketing year begins (if beginning with or after the 
    1941-1942 marketing year) shall be at a rate equal to 50 per centum 
    of the basic rate of the loan for cooperators for such marketing 
    year under section 1302 of this title and this section.
        (9) Omitted.
        (10) The provisions of this section are amendatory of and 
    supplementary to this chapter, and all provisions of law applicable 
    in respect of marketing quotas and loans under such chapter as so 
    amended and supplemented shall be applicable, but nothing in this 
    section shall be construed to amend or repeal sections 1301(b)(6), 
    1323(b), or 1335(d) of this title.
        (11) The persons liable for the payment or collection of the 
    penalty or any amount of wheat 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.
        (12) If marketing quotas for wheat are not in effect for any 
    marketing year, all previous marketing quotas applicable to wheat 
    shall be terminated, effective as of the first day of such marketing 
    year. Such termination shall not abate any penalty previously 
    incurred by a producer or relieve any buyer of the duty to remit 
    penalties previously collected by him.

(May 26, 1941, ch. 133, 55 Stat. 203; Dec. 26, 1941, ch. 626, Sec. 2, 55 
Stat. 860; Dec. 26, 1941, ch. 636, 55 Stat. 872; Aug. 29, 1949, ch. 518, 
Sec. 3(b), 63 Stat. 676; July 14, 1953, ch. 194, Sec. 3, 67 Stat. 151; 
Aug. 28, 1954, ch. 1041, title III, Sec. 313, 68 Stat. 905; Pub. L. 87-
128, title I, Sec. 122(d), Aug. 8, 1961, 75 Stat. 297; Pub. L. 87-703, 
title III, Secs. 309, 319, Sept. 27, 1962, 76 Stat. 618, 624; Pub. L. 
87-801, Oct. 11, 1962, 76 Stat. 909; Pub. L. 89-321, title V, 
Sec. 511(b), Nov. 3, 1965, 79 Stat. 1205.)

                       References in Text

    Section 1302 of this title, referred to in par. (8), was repealed by 
act Oct. 31, 1949, ch. 792, title IV, Sec. 414, 63 Stat. 1057.
    Section 1323(b) of this title, referred to in par. (10), was 
repealed by act Aug. 28, 1954, ch. 1041, title III, Sec. 304, 68 Stat. 
902, and had provided that no farm marketing quota with respect to any 
crop of corn shall be applicable to any farm on which the normal 
production of the acreage planted to corn is less than 300 bushels.
    Section 1335(d) of this title, referred to in par. (10), was 
repealed by Pub. L. 87-129, title I, Sec. 122(e), Aug. 8, 1961, 75 Stat. 
297, and had provided that no farm marketing quota with respect to wheat 
shall be applicable in any marketing year to any farm on which the 
normal production of the acreage planted to wheat of the current crop is 
less than 200 bushels.

                          Codification

    Section was not enacted as part of the Agricultural Adjustment Act 
of 1938 which comprises this chapter.
    Par. (9), which directed the Commodity Credit Corporation to make 
loans upon the 1941 to 1946 cotton, wheat, rice, tobacco, and peanut 
crops for which producers did not disapprove marketing quotas at the 
rate of 85% of parity to cooperators and, to noncooperators, at the rate 
of 60% of the rate specified for cooperators and limited to that amount 
of the commodity as would be subject to penalty if marketed by the 
noncooperators, was omitted from the Code.


                               Amendments

    1965--Par. (1). Pub. L. 89-321 substituted ``projected farm yield'' 
for ``normal yield of wheat per acre established for the farm''.
    1962--Par. (1). Pub. L. 87-703, Sec. 319(1), substituted requirement 
that computation of the farm marketing excess initially be double the 
farm normal yield of wheat times the excess acres, such excess acres 
being reduced to the actual yield times the excess acres, upon proof by 
the producer of the actual yield, for provision that the farm marketing 
excess could not be more than the actual production of wheat on the farm 
less the normal production of the farm acreage allotment and provided 
that the acreage of wheat not disposed of by the prescribed date would 
be considered wheat acreage, with the wheat production thereon appraised 
for the purposes of determining the farm marketing quota and farm 
marketing excess, that wheat acreage disposed of prior to the disposal 
date would not be considered acreage and that the acreage of volunteer 
wheat not disposed of would be considered wheat acreage.
    Par. (2). Pub. L. 87-703, Sec. 319(2), increased from 45 to 65 per 
centum the rate of penalty on farm marketing excess and provided for 
joint and several liability for such penalty.
    Par. (3). Pub. L. 87-703, Sec. 319(3), required computation of the 
farm marketing excess initially upon twice the normal yield and 
eliminated reference to corn. Act Aug. 28, 1954, had made the section in 
applicable to corn.
    Par. (4). Pub. L. 87-703, Sec. 319(4), inserted ``and any subsequent 
crop of wheat subject to marketing quotas in which the producer has an 
interest'' after ``produced on the farm'' and struck out reference to 
corn. Act Aug. 28, 1954, had made the section inapplicable to corn.
    Pars. (5), (6). Pub. L. 87-703, Sec. 319(5), (6), struck out 
reference to corn. Act Aug. 28, 1954, had made section inapplicable to 
corn.
    Par. (7). Pub. L. 87-703, Sec. 319(7), (8), redesignated par. (8) as 
(7), and inserted provision for joint and several liability for penalty 
and struck out reference to corn, respectively. Act Aug. 28, 1954, had 
made section inapplicable to corn. Provisions of former par. (7), which 
provided a 15-acre exemption but provided for a farm marketing quota on 
1962 crop of wheat to any farm on which the acreage of wheat exceeded 
the smaller of (1) 13.5 acres, or (2) of the highest number of acres 
actually planted to, wheat on the farm for harvest in any of the 
calendar years 1959, 1960, or 1961 and provisions of former par. (7), 
added by Pub. L. 87-703, Sec. 309, which provided for a farm marketing 
quota on 1963 crop of wheat to any farm on which the acreage of wheat 
exceeded the smaller of (1) 15 acres, or (2) the highest number of acres 
actually planted to wheat on the farm for harvest in any of the calendar 
years 1959, 1960, or 1961, or 1963 (provided by Pub. L. 87-801), were 
repealed by such section 319(7) and are covered by section 1335 of this 
title.
    Pars. (8) to (10). Pub. L. 87-703, Sec. 319(7), redesignated pars. 
(9) to (11) as (8) to (10). Former par. (8) redesignated (7).
    Par. (11). Pub. L. 87-703, Sec. 319(9), added par. (11). Former par. 
(11) redesignated (10).
    Par. (12). Pub. L. 87-703, Sec. 319(9), added par. (12). Former par. 
(12), which limited farm marketing excess for any crop of wheat and 
provided for return to producer of difference between amount of penalty 
or storage as computed upon farm marketing excess before adjustment and 
as computed upon adjusted farm marketing excess, where a downward 
adjustment in amount of farm marketing excess was made, was repealed by 
such section 319(9).
    1961--Par. (7). Pub. L. 87-128 authorized Secretary to prescribe 
regulations relating to the exemption of farms from marketing quotas on 
any crop of wheat, specified the exemption for the 1962 crop and 
eliminated marketing penalty provisions relating to nonallotment farms 
under the Soil Conservation and Domestic Allotment Act.
    1954--Act Aug. 28, 1954, amended section generally to make it 
inapplicable to corn.
    1953--Act July 14, 1953, omitted penalty for marketing corn in 
excess of quotas and changed penalty for marketing wheat in excess of 
quotas from 50 per centum of basic loan rate on commodity for 
cooperators to 45 per centum of parity price.
    1949--Par. (9). Act Aug. 29, 1949, struck out ``cotton and'' after 
``penalty for''.
    1941--Par. (10). Act Dec. 26, 1941, ch. 626, substituted ``1941, 
1942, 1943, 1944, 1945 and 1946 crops of the commodities cotton, corn, 
wheat, rice, tobacco and peanuts'' for ``1941 crop of the commodities 
cotton, corn, wheat, rice, or tobacco'' and ``for the marketing year 
beginning in the calendar year in which such crop is harvested'' for 
``marketing year beginning in 1941.''
    Par. (12). Act Dec. 26, 1941, ch. 636, added par. (12).


                    Effective Date of 1962 Amendment

    Amendment by section 319 of 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.


                    Effective Date of 1953 Amendment

    Amendment by act July 14, 1953, effective with respect to 1954 and 
subsequent crops of wheat, see section 5 of act July 14, 1953, set out 
as a note under section 1334 of this title.

                          Transfer of Functions

    Administration of program of Commodity Credit Corporation 
transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, 
Sec. 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100, set out in 
the Appendix to Title 5, Government Organization and Employees.

                  Exceptions From Transfer of Functions

    Functions of Corporations of Department of Agriculture, boards of 
directors and officers of such corporations; Advisory Board of Commodity 
Credit Corporation; and Farm Credit Administration or any agency, 
officer or entity of, under, or subject to supervision of said 
Administration excepted from functions of officers, agencies, and 
employees transferred to Secretary of Agriculture by 1953 Reorg. Plan 
No. 2, Sec. 1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as 
a note under section 2201 of this title.


                       Inapplicability of Section

    Section inapplicable to crops of wheat planted for harvest in 
calendar years 1996 through 2002, see section 7301(c) of this title.
    Pub. L. 101-624, title III, Sec. 304, Nov. 28, 1990, 104 Stat. 3400, 
provided that: ``The joint resolution entitled `A joint resolution 
relating to corn and wheat marketing quotas under the Agricultural 
Adjustment Act of 1938, as amended', approved May 26, 1941 (7 U.S.C. 
1330 and 1340) shall not be applicable to the crops of wheat planted for 
harvest in the calendar years 1991 through 1995.''
    Pub. L. 99-198, title III, Sec. 311, Dec. 23, 1985, 99 Stat. 1395, 
provided that: ``The joint resolution entitled `A joint resolution 
relating to corn and wheat marketing quotas under the Agricultural 
Adjustment Act of 1938, as amended', approved May 26, 1941 (7 U.S.C. 
1330 and 1340), shall not be applicable to the crops of wheat planted 
for harvest in the calendar years 1986 through 1990.''
    Pub. L. 97-98, title III, Sec. 304, Dec. 22, 1981, 95 Stat. 1227, 
provided that: ``Public Law 74, Seventy-seventh Congress (55 Stat. 203, 
as amended) [this section] shall not be applicable to the crops of wheat 
planted for harvest in the calendar years 1982 through 1985.''
    Pub. L. 95-113, title IV, Sec. 406, Sept. 29, 1977, 91 Stat. 927, 
provided that: ``Public Law 74, Seventy-seventh Congress (55 Stat. 203, 
as amended) [this section] shall not be applicable to the crops of wheat 
planted for harvest in the calendar years 1978 through 1981.''
    Pub. L. 91-524, title IV, Sec. 406, Nov. 30, 1970, 84 Stat. 1367, as 
amended by Pub. L. 93-86, Sec. 1(13), Aug. 10, 1973, 87 Stat. 229, 
provided that: ``Public Law 74, Seventy-seventh Congress (68 Stat. 905) 
[this section], shall not be applicable to the crops of wheat planted 
for harvest in the calendar years 1971 through 1977.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1334, 1335, 7301 of this 
title.
