
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: 7USC1358-1]

 
                          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 vi--marketing quotas--peanuts
 
Sec. 1358-1. National poundage quotas and acreage allotments for 
        peanuts
        

(a) National poundage quotas

                          (1) Establishment

        The national poundage quota for peanuts for each marketing year 
    shall be established by the Secretary at a level that is equal to 
    the quantity of peanuts (in tons) that the Secretary estimates will 
    be devoted in each such marketing year to domestic edible use 
    (except seed) and related uses.

                          (2) Announcement

        The national poundage quota for a marketing year shall be 
    announced by the Secretary not later than December 15 preceding the 
    marketing year.

                   (3) Apportionment among States

        The national poundage quota established under paragraph (1) 
    shall be apportioned among the States so that the poundage quota 
    allocated to each State shall be equal to the percentage of the 
    national poundage quota allocated to farms in the State for 1990, 
    for the 1991 through 1995 marketing years, and 1995, for the 1996 
    through 2002 marketing years.

(b) Farm poundage quotas

                           (1) In general

        (A) Establishment

            A farm poundage quota for each marketing year shall be 
        established--
                (i) for each farm that had a farm poundage quota for 
            peanuts for the 1990 marketing year, in the case of the 1991 
            through 1995 marketing years, and the 1995 marketing year, 
            in the case of the 1996 through 2002 marketing years;
                (ii) if the poundage quota apportioned to a State under 
            subsection (a)(3) of this section for any such marketing 
            year is larger than the quota for the immediately preceding 
            marketing year, for each other farm on which peanuts were 
            produced for marketing in at least 2 of the 3 immediately 
            preceding crop years, as determined by the Secretary; and
                (iii) as approved and determined by the Secretary under 
            section 1358c of this title, for each farm on which peanuts 
            are produced in connection with experimental and research 
            programs.

        (B) Quantity

            The farm poundage quota for each marketing year for each 
        farm described in subparagraph (A)(i) shall be the same as the 
        farm poundage quota for the farm for the immediately preceding 
        marketing year, as adjusted under paragraph (2), but not 
        including any increases resulting from the allocation of quotas 
        voluntarily released for 1 year under paragraph (7). The farm 
        poundage quota, if any, for each marketing year for each farm 
        described in subparagraph (A)(ii) shall be equal to the quantity 
        of peanuts allocated to the farm for the year under paragraph 
        (2).

        (C) Transfers

            For purposes of this subsection, if the farm poundage quota, 
        or any part thereof, is permanently transferred in accordance 
        with section 1358a or 1358b of this title, the receiving farm 
        shall be considered as possessing the farm poundage quota (or 
        portion thereof) of the transferring farm for all subsequent 
        marketing years.

        (D) Certain farms ineligible for quota

            Effective beginning with the 1998 crop, the Secretary shall 
        not establish a farm poundage quota under subparagraph (A) for a 
        farm owned or controlled by--
                (i) a municipality, airport authority, school, college, 
            refuge, or other public entity (other than a university used 
            for research purposes); or
                (ii) a person who is not a producer and resides in 
            another State.

                           (2) Adjustments

        (A) Allocation of increased quota generally

            Except as provided in subparagraph (D), if the poundage 
        quota apportioned to a State under subsection (a)(3) of this 
        section for any marketing year is increased over the poundage 
        quota apportioned to farms in the State for the immediately 
        preceding marketing year, the increase shall be allocated 
        proportionately, based on farm production history for peanuts 
        for the 3 immediately preceding years, among--
                (i) all farms in the State for each of which a farm 
            poundage quota was established for the marketing year 
            immediately preceding the marketing year for which the 
            allocation is being made; and
                (ii) all other farms in the State on each of which 
            peanuts were produced in at least 2 of the 3 immediately 
            preceding crop years, as determined by the Secretary.

        (B) Temporary quota allocation

            (i) Allocation related to seed peanuts

                Temporary allocation of quota pounds for the marketing 
            year only in which the crop is planted shall be made to 
            producers for each of the 1996 through 2002 marketing years 
            as provided in this subparagraph.
            (ii) Quantity

                The temporary quota allocation shall be equal to the 
            pounds of seed peanuts planted on the farm, as may be 
            adjusted and determined under regulations prescribed by the 
            Secretary.
            (iii) Additional quota

                The temporary allocation of quota pounds under this 
            paragraph shall be in addition to the farm poundage quota 
            otherwise established under this subsection and shall be 
            credited, for the applicable marketing year only, in total, 
            to the producer of the peanuts on the farm in a manner 
            prescribed by the Secretary.
            (iv) Effect of other requirements

                Nothing in this section alters or changes the 
            requirements regarding the use of quota and additional 
            peanuts established by section 1359a(b) of this title.

        (C) Decrease

            If the poundage quota apportioned to a State under 
        subsection (a)(3) of this section for any marketing year is 
        decreased from the poundage quota apportioned to farms in the 
        State under subsection (a)(3) of this section for the 
        immediately preceding marketing year, the decrease shall be 
        allocated among all the farms in the State for each of which a 
        farm poundage quota was established for the marketing year 
        immediately preceding the marketing year for which the 
        allocation is being made.

        (D) Special rule on tenant's share of increased quota

            Subject to terms and conditions prescribed by the Secretary, 
        on farms that were leased to a tenant for peanut production, the 
        tenant shall share equally with the owner of the farm in that 
        percentage of the quota referred to in subparagraph (A) and 
        otherwise allocated to the farm as the result of the tenant's 
        production on the farm of additional peanuts. Not later than 
        April 1 of each year or as soon as practicable, the tenant's 
        share of any such quota shall be allocated to a farm within the 
        county owned by the tenant or sold by the tenant to the owner of 
        any farm within the county and permanently transferred to that 
        farm. Any quota not so disposed of as provided in this 
        subparagraph shall be allocated to other quota farms in the 
        State under paragraph (6) as part of the quota reduced from 
        farms in the State due to the failure to produce the quota.

        (E) Transfer of quota from ineligible farms

            Any farm poundage quota held at the end of the 1996 
        marketing year by a farm described in paragraph (1)(D) shall be 
        allocated to other farms in the same State on such basis as the 
        Secretary may by regulation prescribe.

                       (3) Quota not produced

        (A) In general

            Insofar as practicable and on such fair and equitable basis 
        as the Secretary may by regulation prescribe, the farm poundage 
        quota established for a farm for any marketing year shall be 
        reduced to the extent that the Secretary determines that the 
        farm poundage quota established for the farm for any 2 of the 3 
        marketing years preceding the marketing year for which the 
        determination is being made was not produced, or considered 
        produced, on the farm.

        (B) Exclusions

            For the purposes of this paragraph, the farm poundage quota 
        for any such preceding marketing year shall not include any 
        increase resulting from the allocation of quotas voluntarily 
        released for 1 year under paragraph (7).

                    (4) Quota considered produced

        For purposes of this subsection, the farm poundage quota shall 
    be considered produced on a farm if--
            (A) the farm poundage quota was not produced on the farm 
        because of drought, flood, or any other natural disaster, or any 
        other condition beyond the control of the producer, as 
        determined by the Secretary;
            (B) the farm poundage quota for the farm was released 
        voluntarily under paragraph (7) for only 1 of the 3 marketing 
        years immediately preceding the marketing year for which the 
        determination is being made; or
            (C) the farm poundage quota was leased to another owner or 
        operator of a farm within the same county for transfer to such 
        farm for only 1 of the 3 marketing years immediately preceding 
        the marketing year for which the determination is being made.

                   (5) Quota permanently released

        Notwithstanding any other provision of law--
            (A) the farm poundage quota established for a farm under 
        this subsection, or any part of the quota, may be permanently 
        released by the owner of the farm, or the operator with the 
        permission of the owner; and
            (B) the poundage quota for the farm for which the quota is 
        released shall be adjusted downward to reflect the quota that is 
        so released.

            (6) Allocation of quotas reduced or released

        (A) In general

            Except as provided in subparagraphs (B) and (C), the total 
        quantity of the farm poundage quotas reduced or voluntarily 
        released from farms in a State for any marketing year under 
        paragraphs (3) and (5) shall be allocated, as the Secretary may 
        by regulation prescribe, to other farms in the State on which 
        peanuts were produced in at least 2 of the 3 crop years 
        immediately preceding the year for which the allocation is being 
        made.

        (B) Set-aside for farms with no quota

            Not more than 25 percent of the total amount of farm 
        poundage quota to be allocated in the State under subparagraph 
        (A) shall be allocated to farms in the State for which no farm 
        poundage quota was established for the immediately preceding 
        year's crop. The allocation to any such farm shall not exceed 
        the average farm production of peanuts for the 3 immediately 
        preceding years during which peanuts were produced on the farm.

        (C) Allocation of quotas reduced or released in Texas

            (i) In general

                In Texas, and subject to terms and conditions prescribed 
            by the Secretary, beginning with the 1991 marketing year, 
            the total quantity of the farm poundage quota, except the 
            percentage allocated to new farms under subparagraph (B), 
            shall be allocated to other farms having poundage quotas for 
            the 1990 marketing year in all counties in which the 
            production of additional peanuts exceeded the total quota 
            allocated to the county for the 1989 marketing year.
            (ii) Basis for allocation to counties

                The allocation of the quota to eligible counties shall 
            be based on the total production of additional peanuts in 
            the respective county for the 1988 crop, except that the 
            total quota allocated to any county under this subparagraph 
            and paragraph (2)(B) shall not be increased by more than 100 
            percent of the basic quota allocated to the county for the 
            1989 marketing year, if that county had more than 10,000 
            tons of quota for the 1989 marketing year.
            (iii) Allocation to other counties

                If the total quota for any such county is so increased 
            by 100 percent, all of the remaining quota set aside under 
            this subparagraph shall be allocated to farms in other 
            counties otherwise meeting the requirements of this 
            subparagraph.
            (iv) Allocation to eligible farms

                The percentage of farm poundage quota available for 
            allocation under this subparagraph shall be allocated only 
            to quota farms from which additional peanuts were delivered 
            under contract with handlers for the marketing year 
            immediately preceding the marketing year for which the 
            allocation is being made. The percentage of the increased 
            quota in each county shall be allocated among the eligible 
            farms in the county on the following basis:
                (I) Factor

                    A factor shall be established for each such eligible 
                farm by dividing the amount of additional peanuts 
                contracted and delivered to handlers from the farm by 
                the total remaining peanuts produced on the farm for the 
                marketing year immediately preceding the marketing year 
                for which the allocation is being made.
                (II) Allocation

                    Each such eligible farm shall be allocated the 
                percentage of the increased quota for the county as its 
                factor bears to the total of the factors for all 
                eligible farms in the county.

                   (7) Quota temporarily released

        (A) In general

            The farm poundage quota, or any portion thereof, established 
        for a farm for a marketing year may be voluntarily released to 
        the Secretary to the extent that the quota, or any part thereof, 
        will not be produced on the farm for the marketing year. Any 
        farm poundage quota so released in a State shall be allocated to 
        other farms in the State on such basis as the Secretary may by 
        regulation prescribe.

        (B) Effective period

            Except as otherwise provided in this section, any adjustment 
        in the farm poundage quota for a farm under subparagraph (A) 
        shall be effective only for the marketing year for which it is 
        made and shall not be taken into consideration in establishing a 
        farm poundage quota for the farm from which the quota was 
        released for any subsequent marketing year.

                       (8) Disaster transfers

        (A) In general

            Except as provided in subparagraph (B), additional peanuts 
        produced on a farm from which the quota poundage was not 
        harvested and marketed because of drought, flood, or any other 
        natural disaster, or any other condition beyond the control of 
        the producer, may be transferred to the quota loan pool for 
        pricing purposes on such basis as the Secretary shall by 
        regulation provide.

        (B) Limitation

            The poundage of peanuts transferred under subparagraph (A) 
        shall not exceed the difference between--
                (i) the total quantity of peanuts meeting quality 
            requirements for domestic edible use, as determined by the 
            Secretary, marketed from the farm; and
                (ii) the total farm poundage quota, excluding quota 
            pounds transferred to the farm in the fall.

        (C) Support rate

            Peanuts transferred under this paragraph shall be supported 
        at 70 percent of the quota support rate for the marketing years 
        in which the transfers occur. The transfers for a farm shall not 
        exceed 25 percent of the total farm quota pounds, excluding 
        pounds transferred in the fall.

(c) Farm yields

                           (1) In general

        For each farm for which a farm poundage quota is established 
    under subsection (b) of this section, and when necessary for 
    purposes of this chapter, a farm yield of peanuts shall be 
    determined for each such farm.

                            (2) Quantity

        The yield shall be equal to the average of the actual yield per 
    acre on the farm for each of the 3 crop years in which yields were 
    highest on the farm out of the 5 crop years 1973 through 1977.

                        (3) Appraised yields

        If peanuts were not produced on the farm in at least 3 years 
    during the 5-year period or there was a substantial change in the 
    operation of the farm during the period (including a change in 
    operator, lessee who is an operator, or irrigation practices), the 
    Secretary shall have a yield appraised for the farm. The appraised 
    yield shall be that quantity determined to be fair and reasonable on 
    the basis of yields established for similar farms that are located 
    in the area of the farm and on which peanuts were produced, taking 
    into consideration land, labor, and equipment available for the 
    production of peanuts, crop rotation practices, soil and water, and 
    other relevant factors.

(d) Referendum respecting poundage quotas

                           (1) In general

        Not later than December 15 of each calendar year, the Secretary 
    shall conduct a referendum of producers engaged in the production of 
    quota peanuts in the calendar year in which the referendum is held 
    to determine whether the producers are in favor of or opposed to 
    poundage quotas with respect to the crops of peanuts produced in the 
    5 calendar years immediately following the year in which the 
    referendum is held, except that, if as many as two-thirds of the 
    producers voting in any referendum vote in favor of poundage quotas, 
    no referendum shall be held with respect to quotas for the second, 
    third, fourth, and fifth years of the period.

                          (2) Proclamation

        The Secretary shall proclaim the result of the referendum within 
    30 days after the date on which it is held.

                       (3) Vote against quotas

        If more than one-third of the producers voting in the referendum 
    vote against quotas, the Secretary also shall proclaim that poundage 
    quotas will not be in effect with respect to the crop of peanuts 
    produced in the calendar year immediately following the calendar 
    year in which the referendum is held.

(e) Definitions

    For the purposes of this subpart and title I of the Agricultural Act 
of 1949 (7 U.S.C. 1441 et seq.):

                       (1) Additional peanuts

        The term ``additional peanuts'' means, for any marketing year--
            (A) any peanuts that are marketed from a farm for which a 
        farm poundage quota has been established and that are in excess 
        of the marketings of quota peanuts from the farm for the year; 
        and
            (B) all peanuts marketed from a farm for which no farm 
        poundage quota has been established in accordance with 
        subsection (b) of this section.

                            (2) Crushing

        The term ``crushing'' means the processing of peanuts to extract 
    oil for food uses and meal for feed uses, or the processing of 
    peanuts by crushing or otherwise when authorized by the Secretary.

                       (3) Domestic edible use

        The term ``domestic edible use'' means use for milling to 
    produce domestic food peanuts (other than those described in 
    paragraph (2)) and seed and use on a farm, except that the Secretary 
    may exempt from this definition seeds of peanuts that are used to 
    produce peanuts excluded under section 1359(c) of this title, are 
    unique strains, and are not commercially available.

                          (4) Quota peanuts

        The term ``quota peanuts'' means, for any marketing year, any 
    peanuts produced on a farm having a farm poundage quota, as 
    determined in subsection (b) of this section, that--
            (A) are eligible for domestic edible use as determined by 
        the Secretary;
            (B) are marketed or considered marketed from a farm; and
            (C) do not exceed the farm poundage quota of the farm for 
        the year.

(f) Crops

    Notwithstanding any other provision of law, this section shall be 
effective only for the 1991 through 2002 crops of peanuts.

(Feb. 16, 1938, ch. 30, title III, Sec. 358-1, as added Pub. L. 101-624, 
title VIII, Sec. 802, Nov. 28, 1990, 104 Stat. 3459; amended Pub. L. 
102-237, title I, Sec. 117(b)(2)(B), Dec. 13, 1991, 105 Stat. 1841; Pub. 
L. 103-66, title I, Sec. 1109(c)(1), Aug. 10, 1993, 107 Stat. 326; Pub. 
L. 104-127, title I, Sec. 155(i)(1)(A), (2)-(4)(A), (5), Apr. 4, 1996, 
110 Stat. 927-929.)

                       References in Text

    The Agricultural Act of 1949, as amended, referred to in subsec. 
(e), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended. Title I 
of the Act is classified generally to subchapter II (Sec. 1441 et seq.) 
of chapter 35A of this title. For complete classification of this Act to 
the Code, see Short Title note set out under section 1421 of this title 
and Tables.


                               Amendments

    1996--Pub. L. 104-127, Sec. 155(i)(1)(A)(i), struck out ``1991 
through 1997 crops of'' before ``peanuts'' in section catchline.
    Subsec. (a)(1). Pub. L. 104-127, Sec. 155(i)(3)(A), substituted 
``domestic edible use (except seed)'' for ``domestic edible, seed,''.
    Pub. L. 104-127, Sec. 155(i)(2), struck out at end ``Notwithstanding 
any other provision of this paragraph, the national poundage quota for a 
marketing year shall not be less than 1,350,000 tons.''
    Pub. L. 104-127, Sec. 155(i)(1)(A)(ii), substituted ``marketing year 
shall'' for ``of the 1991 through 1997 marketing years shall''.
    Subsec. (a)(3). Pub. L. 104-127, Sec. 155(i)(1)(A)(iii), substituted 
``1990, for the 1991 through 1995 marketing years, and 1995, for the 
1996 through 2002 marketing years'' for ``1990''.
    Subsec. (b)(1)(A). Pub. L. 104-127, Sec. 155(i)(1)(A)(iv)(I), 
substituted ``each marketing year'' for ``each of the 1991 through 1997 
marketing years'' in introductory provisions.
    Subsec. (b)(1)(A)(i). Pub. L. 104-127, Sec. 155(i)(1)(A)(iv)(II), 
inserted before semicolon ``, in the case of the 1991 through 1995 
marketing years, and the 1995 marketing year, in the case of the 1996 
through 2002 marketing years''.
    Subsec. (b)(1)(B). Pub. L. 104-127, Sec. 155(i)(4)(A)(i), 
substituted ``including any increases resulting from the allocation of 
quotas voluntarily released for 1 year under paragraph (7).'' for 
``including--
        ``(i) any increases for undermarketings from previous years; or
        ``(ii) any increases resulting from the allocation of quotas 
    voluntarily released for 1 year under paragraph (7).''
    Pub. L. 104-127, Sec. 155(i)(1)(A)(ii), substituted ``marketing year 
for'' for ``of the 1991 through 1997 marketing years for'' in two 
places.
    Subsec. (b)(1)(D). Pub. L. 104-127, Sec. 155(i)(1)(A)(v), added 
subpar. (D).
    Subsec. (b)(2)(A). Pub. L. 104-127, Sec. 155(i)(1)(A)(ii), 
(3)(B)(i), in introductory provisions, struck out ``subparagraph (B) and 
subject to'' after ``Except as provided in'' and substituted ``marketing 
year is increased'' for ``of the 1991 through 1997 marketing years is 
increased''.
    Subsec. (b)(2)(B). Pub. L. 104-127, Sec. 155(i)(3)(B)(ii), 
substituted subpar. (B) relating to temporary quota allocation for 
former subpar. (B) relating to allocation of increased quota in Texas.
    Subsec. (b)(2)(C). Pub. L. 104-127, Sec. 155(i)(1)(A)(ii), 
substituted ``marketing year is'' for ``of the 1991 through 1997 
marketing years is''.
    Subsec. (b)(2)(E). Pub. L. 104-127, Sec. 155(i)(1)(A)(vi), added 
subpar. (E).
    Subsec. (b)(3)(A). Pub. L. 104-127, Sec. 155(i)(1)(A)(ii), 
substituted ``marketing year shall'' for ``of the 1991 through 1997 
marketing years shall''.
    Subsec. (b)(3)(B). Pub. L. 104-127, Sec. 155(i)(4)(A)(ii), 
substituted ``include any increase resulting from the allocation of 
quotas voluntarily released for 1 year under paragraph (7).'' for 
``include--
        ``(i) any increases for undermarketing of quota peanuts from 
    previous years; or
        ``(ii) any increase resulting from the allocation of quotas 
    voluntarily released for 1 year under paragraph (7).''
    Subsec. (b)(8). Pub. L. 104-127, Sec. 155(i)(5), added par. (8).
    Pub. L. 104-127, Sec. 155(i)(4)(A)(iii), struck out par. (8) which 
provided for increase in quota for undermarketings in previous marketing 
years.
    Subsec. (b)(9). Pub. L. 104-127, Sec. 155(i)(4)(A)(iii), struck out 
heading and text of par. (9). Prior to amendment, text read as follows: 
``Notwithstanding the foregoing provisions of this subsection, if the 
total of all increases in individual farm poundage quotas under 
paragraph (8) exceeds 10 percent of the national poundage quota for the 
marketing year in which the increases shall be applicable, the Secretary 
shall adjust the increases so that the total of all the increases does 
not exceed 10 percent of the national poundage quota.''
    Subsec. (f). Pub. L. 104-127, Sec. 155(i)(1)(A)(vii), substituted 
``2002'' for ``1997''.
    1993--Pub. L. 103-66 substituted ``1997'' for ``1995'' in section 
catchline and wherever appearing in subsecs. (a)(1), (b)(1)(A), (B), 
(2)(A), (C), (3)(A), and (f).
    1991--Subsec. (e)(3). Pub. L. 102-237 made a technical amendment to 
the reference to section 1359(c) of this title to reflect the 
renumbering of the corresponding section of the original act.


                             Effective Date

    Section effective beginning with 1991 crop of an agricultural 
commodity, with provision for prior crops, see section 1171 of Pub. L. 
101-624, set out as an Effective Date of 1990 Amendment note under 
section 1421 of this title.


                               Regulations

    Section 809 of title VIII of Pub. L. 101-624 provided that: ``The 
Secretary of Agriculture shall issue such regulations as are necessary 
to carry out this title [enacting this section and sections 1358b, 
1358c, 1359a, and 1445c-3 of this title, amending sections 1373 and 
1445c-2 of this title, repealing sections 1445c and 1445c-1 of this 
title, and enacting provisions set out as notes under sections 1358, 
1358a, 1359, prec. 1361, 1371, 1373, and 1441 of this title] and the 
amendments made by this title. In issuing the regulations, the 
Secretary--
        ``(1) is encouraged to comply with subchapter II of chapter 5 of 
    title 5, United States Code;
        ``(2) shall provide public notice through the Federal Register 
    of any such proposed regulations; and
        ``(3) shall allow adequate time for written public comment prior 
    to the formulation and issuance of any final regulations.''

                  Section Referred to in Other Sections

    This section is referred to in section 7271 of this title.
