
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: 7USC1346]

 
                          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 iv--marketing quotas--cotton
 
Sec. 1346. Penalties

    (a) Whenever farm marketing quotas are in effect with respect to any 
crop of cotton, the producer shall be subject to a penalty on the farm 
marketing excess at a rate per pound equal to 50 per centum of the 
parity price per pound for cotton as of June 15 of the calendar year in 
which such crop is produced.
    (b) The farm marketing excess of cotton shall be regarded as 
available for marketing and the amount of penalty shall be computed upon 
the normal production of the acreage on the farm planted to cotton in 
excess of the farm acreage allotment. If a downward adjustment in the 
amount of the farm marketing excess is made pursuant to the proviso in 
section 1345 of this title, the difference between the amount of the 
penalty computed upon the farm marketing excess before such adjustment 
and as computed upon the adjusted farm marketing excess shall be 
returned to or allowed the producer.
    (c) The person liable for payment or collection of the penalty 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.
    (d) Until the penalty on the farm marketing excess is paid, all 
cotton produced on the farm and marketed by the producer shall be 
subject to the penalty provided by this section and a lien on the entire 
crop of cotton produced on the farm shall be in effect in favor of the 
United States.
    (e) Notwithstanding any other provision of this chapter, for the 
1966 through 1970 crops of upland cotton, if the farm operator elects to 
forgo price support for any such crop of cotton by applying to the 
county committee of the county in which the farm is located for 
additional acreage under this subsection, he may plant an acreage not in 
excess of the farm acreage allotment established under section 1344 of 
this title plus the acreage apportioned to the farm from the national 
export market acreage reserve, and all cotton of such crop produced on 
the farm may be marketed for export free of any penalty under this 
section: Provided, That the foregoing shall be applicable only to farms 
which had upland cotton allotments for 1965 and are operated by the same 
operator as in 1965 or by his heir.
    For the 1966 crop the national export market acreage reserve shall 
be 250,000 acres. For each subsequent crop--




If the carryover at the end of the     The national export market
 marketing year for the preceding       acreage reserve shall be--
 crop is estimated to be less than
 the carryover at the beginning of
 such marketing year by--
At least 1,000,000 bales.............  250,000 acres.
At least 750,000 bales, but not as     187,500 acres.
 much as 1,000,000 bales.
At least 500,000 bales, but not as     125,000 acres.
 much as 750,000 bales.
At least 250,000 bales, but not as     62,500 acres.
 much as 500,000 bales.
Less than 250,000 bales..............  None.



    The national export market acreage reserve shall be apportioned to 
farms by the Secretary on the basis of the applications therefor. No 
application shall be accepted for a greater acreage than is available on 
the farm for the production of upland cotton. After apportionments are 
thus made to farms, the Secretary shall provide farm operators a 
reasonable time in which to cancel their applications (and agreements to 
forgo price support) and surrender to the Secretary through the county 
committee the export market acreage assigned to the farm. Acreage so 
surrendered shall be available for reassignment by the Secretary to 
other eligible farms to which export market acreage has been apportioned 
on the basis of the applications remaining outstanding. The operator of 
any farm who elects to forgo price support for any such crop under this 
subsection shall not be eligible for price support on cotton of such 
crop produced on any other farm in which he has a controlling or 
substantial interest as determined by the Secretary. Acreage planted to 
cotton in excess of the farm acreage allotment established under section 
1344 of this title shall not be taken into account in establishing 
future State, county, and farm acreage allotments. The operator of any 
farm to which export market acreage is apportioned, or the purchasers of 
cotton produced on such farm, shall, under regulations issued by the 
Secretary, furnish a bond or other undertaking prescribed by the 
Secretary, providing for the exportation, without benefit of any 
Government cotton export subsidy and within such time as the Secretary 
may specify, of all cotton produced on such farm for such year. The bond 
or other undertaking given pursuant to this subsection shall provide 
that, upon failure to comply with the terms and conditions thereof, the 
person furnishing such bond or other undertaking shall be liable for 
liquidated damages in an amount which the Secretary determines and 
specifies in such undertaking will approximate the amount payable on 
excess cotton under subsection (a) of this section. The Secretary may, 
in lieu of the furnishing of a bond or other undertaking, provide for 
the payment of an amount equal to that which would be payable as 
liquidated damages under such bond or other undertaking. If such bond or 
other undertaking is not furnished, or if payment in lieu thereof is not 
made as provided herein, at such time and in the manner required by 
regulations of the Secretary, or if the acreage planted to cotton on the 
farm exceeds the sum of the farm acreage allotment established under 
section 1344 of this title and the acreage apportioned to the farm from 
the national export market acreage reserve, the acreage planted to 
cotton in excess of the farm acreage allotment established under section 
1344 of this title shall be regarded as excess acreage for purposes of 
this section and section 1345 of this title. Amounts collected by the 
Secretary under this subsection shall be remitted to the Commodity 
Credit Corporation.

(Feb. 16, 1938, ch. 30, title III, Sec. 346, 52 Stat. 59; Aug. 29, 1949, 
ch. 518, Sec. 1, 63 Stat. 674; Pub. L. 89-321, title IV, Sec. 401(2), 
Nov. 3, 1965, 79 Stat. 1192; Pub. L. 90-559, Sec. 1(2), Oct. 11, 1968, 
82 Stat. 996.)


                               Amendments

    1968--Subsec. (e). Pub. L. 90-559 provided for a one year extension, 
substituting ``1966 through 1970'' for ``1966, 1967, 1968, and 1969''.
    1965--Subsec. (e). Pub. L. 89-321 added subsec. (e).
    1949--Act Aug. 29, 1949, amended section generally. Former 
provisions of section were covered by section 1345 of this title.


                       Inapplicability of Section

    Section inapplicable to 1984 and subsequent crops of extra long 
staple cotton, see section 3 of Pub. L. 98-88, set out as a note under 
section 1342 of this title.
    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 upland cotton, 
see section 502 of Pub. L. 101-624, set out as a note under section 1342 
of this title.
    Section inapplicable to 1986 through 1990 crops of upland cotton, 
see section 502 of Pub. L. 99-198, set out as a note under section 1342 
of this title.
    Section inapplicable to 1982 through 1985 crops of upland cotton, 
see section 501 of Pub. L. 97-98, set out as a note under section 1342 
of this title.
    Section inapplicable to 1978 through 1981 crops of upland cotton, 
see section 601 of Pub. L. 95-113, set out as a note under section 1342 
of this title.
    Pub. L. 91-524, title VI, Sec. 601(1), Nov. 30, 1970, 84 Stat. 1371, 
as amended by Pub. L. 93-86, Sec. 1(19)(A), Aug. 10, 1973, 87 Stat. 233, 
provided that this section is inapplicable to 1971 through 1977 crops of 
upland cotton.


      Removal of Marketing Penalties on Certain Long Staple Cotton

    Act Jan. 9, 1951, ch. 1215, 64 Stat. 1237, provided that the 
marketing penalty provided in this section, shall not be applied to long 
staple cotton of the 1950 crop ginned on saw type gins where such action 
was necessary to conserve the cotton because of frost or weather damage.

                  Section Referred to in Other Sections

    This section is referred to in section 1349 of this title.
