
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: 7USC1359]

 
                          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. 1359. Marketing penalties

    (a) The marketing of any peanuts in excess of the marketing quota 
for the farm on which such peanuts are produced, or the marketing of 
peanuts from any farm for which no acreage allotment was determined, 
shall be subject to a penalty at a rate equal to 75 per centum of the 
support price for peanuts for the marketing year (August 1 to July 31). 
Such penalty shall be paid by the person who buys or otherwise acquires 
the peanuts from the producer, or, if the peanuts are marketed by the 
producer through an agent, the penalty shall be paid by such agent, and 
such person or agent may deduct an amount equivalent to the penalty from 
the price paid to the producer. The Secretary may require collection of 
the penalty upon a portion of each lot of peanuts marketed from the farm 
equal to the proportion which the acreage of peanuts in excess of the 
farm-acreage allotment is of the total acreage of peanuts on the farm. 
If the person required to collect the penalty fails to collect such 
penalty, such person and all persons entitled to share in the peanuts 
marketed from the farm or the proceeds thereof shall be jointly and 
severally liable for the amount of the penalty. All funds collected 
pursuant to this section shall be deposited in a special deposit account 
with the Treasurer of the United States and such amounts as are 
determined, in accordance with regulations prescribed by the Secretary, 
to be penalties incurred shall be transferred to the general fund of the 
Treasury of the United States. Amounts collected in excess of determined 
penalties shall be paid to such producers as the Secretary determines, 
in accordance with regulations prescribed by him, bore the burden of the 
payment of the amount collected. Such special account shall be 
administered by the Secretary and the basis for, the amount of, and the 
producer entitled to receive a payment from such account, when 
determined in accordance with regulations prescribed by the Secretary, 
shall be final and conclusive. Peanuts produced in a calendar year in 
which marketing quotas are in effect for the marketing year beginning 
therein shall be subject to such quotas even though the peanuts are 
marketed prior to the date on which such marketing year begins. If any 
producer falsely identifies or fails to account for the disposition of 
any peanuts, an amount of peanuts equal to the normal yield of the 
number of acres harvested in excess of the farm acreage allotment shall 
be deemed to have been marketed in excess of the marketing quota for the 
farm, and the penalty in respect thereof shall be paid and remitted by 
the producer. If any amount of peanuts produced on one farm is falsely 
identified by a representation that such peanuts were produced on 
another farm, the acreage allotments next established for both such 
farms shall be reduced by that percentage which such amount was of the 
respective farm marketing quotas, except that such reduction for any 
such farm shall not be made if the Secretary through the local 
committees finds that no person connected with such farm caused, aided, 
or acquiesced in such marketing; and if proof of the disposition of any 
amount of peanuts is not furnished as required by the Secretary, the 
acreage allotment next established for the farm on which such peanuts 
are produced shall be reduced by a percentage similarly computed. 
Notwithstanding any other provisions of this subpart, no refund of any 
penalty shall be made because of peanuts kept on the farm for seed or 
for home consumption.
    (b) The provisions of this subpart shall not apply, beginning with 
the 1959 crop, to peanuts produced on any farm on which the acreage 
harvested for nuts is one acre or less provided the producers who share 
in the peanuts produced on such farm do not share in the peanuts 
produced on any other farm. If the producers who share in the peanuts 
produced on a farm on which the acreage harvested for nuts is one acre 
or less also share in the peanuts produced on other farm(s) the peanuts 
produced on such farm on acreage in excess of the allotment, if any, 
determined for the farm shall be considered as excess acreage and the 
marketing penalties provided by subsection (a) of this section shall 
apply.
    (c) The word ``peanuts'' for the purposes of this chapter shall mean 
all peanuts produced, excluding any peanuts which it is established by 
the producer or otherwise, in accordance with regulations of the 
Secretary, were not picked or threshed either before or after marketing 
from the farm, or were marketed by the producer before drying or removal 
of moisture from such peanuts either by natural or artificial means for 
consumption exclusively as boiled peanuts.
    (d) The person liable for payment or collection of the penalty 
provided by 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.
    (e) Until the amount of the penalty provided by this section is 
paid, a lien on the crop of peanuts with respect to which such penalty 
is incurred, and on any subsequent crop of peanuts subject to marketing 
quotas in which the person liable for payment or the penalty has an 
interest shall be in effect in favor of the United States.

(Feb. 16, 1938, ch. 30, title III, Sec. 358d, formerly Sec. 359, as 
added Apr. 3, 1941, ch. 39, Sec. 1, 55 Stat. 90; amended July 9, 1942, 
ch. 497, Sec. 1(2), (3), 56 Stat. 653; Aug. 1, 1947, ch. 445, Sec. 2, 61 
Stat. 721; July 3, 1948, ch. 827, title II, Sec. 207(d), 62 Stat. 1257; 
Mar. 31, 1950, ch. 81, Sec. 6(a), 64 Stat. 42; Apr. 12, 1951, ch. 28, 
Sec. 2, 65 Stat. 31; Mar. 28, 1952, ch. 110, 66 Stat. 27; May 28, 1956, 
ch. 327, title III, Secs. 305, 306, 70 Stat. 205; Pub. L. 85-127, Aug. 
13, 1957, 71 Stat. 344; Pub. L. 85-717, Sec. 2, Aug. 21, 1958, 72 Stat. 
709; Pub. L. 95-113, title VIII, Sec. 804, Sept. 29, 1977, 91 Stat. 946; 
Pub. L. 96-31, July 7, 1979, 93 Stat. 81; Pub. L. 97-98, title VII, 
Sec. 704, Dec. 22, 1981, 95 Stat. 1251; Pub. L. 99-198, title VII, 
Sec. 704, Dec. 23, 1985, 99 Stat. 1435; Pub. L. 101-82, title VI, 
Sec. 601, Aug. 14, 1989, 103 Stat. 586; renumbered Sec. 358d and amended 
Pub. L. 102-237, title I, Sec. 117(a), (b)(2)(C), Dec. 13, 1991, 105 
Stat. 1841.)


                               Amendments

    1991--Subsec. (b). Pub. L. 102-237, Sec. 117(b)(2)(C)(i), made a 
technical amendment to the reference to subsection (a) of this section 
to reflect a change in the reference to the corresponding provision of 
the original act.
    Subsecs. (m)(1)(C), (i), (ii), (p)(1), (r)(2)(A). Pub. L. 102-237, 
Sec. 117(b)(2)(C)(ii), made a technical amendment to the reference to 
section 1445c-2 of this title to reflect the renumbering of the 
corresponding section of the original act.
    1989--Subsec. (p)(2)(B)(i). Pub. L. 101-82, Sec. 601(1), which 
temporarily directed that ``(less such reasonable allowances for 
shrinkage as the Secretary may prescribe)'' be struck out was executed 
by striking out ``(less such reasonable allowance for shrinkage as the 
Secretary may prescribe)'' after ``in all of the following quantities'' 
to reflect the probable intent of Congress. See Effective and 
Termination Dates of 1989 Amendment note below.
    Subsec. (p)(2)(B)(iv). Pub. L. 101-82, Sec. 601(2), added cl. (iv).
    1985--Subsecs. (m) to (s). Pub. L. 99-198 temporarily added subsecs. 
(m) to (s). See Effective and Termination Dates of 1985 Amendment note 
below.
    1981--Subsecs. (f) to (l). Pub. L. 97-98 temporarily added subsecs. 
(f) to (l). See Effective and Termination Dates of 1981 Amendment note 
below.
    1979--Subsec. (k). Pub. L. 96-31 temporarily added subsec. (k). See 
Effective and Termination Dates of 1979 Amendment note below.
    1977--Subsec. (a). Pub. L. 95-113, Sec. 804(1)-(3), temporarily 
substituted ``penalty at a rate equal to 120 per centum of the support 
price for quota peanuts'' for ``penalty at a rate equal to 75 per centum 
of the support price for peanuts'' and ``farm yield'' for ``normal 
yield'' and inserted provision that the marketing of any additional 
peanuts from a farm be subject to the 120 per centum penalty unless the 
peanuts, in accordance with regulations established by the Secretary, 
are placed under loan at the additional loan rate under the loan program 
made available under section 1445c(b) of this title and not redeemed by 
the producers or are marketed under contracts between handlers and 
producers pursuant to the provisions of subsection (i) of this section. 
See Effective and Termination Dates of 1977 Amendment note below.
    Subsecs. (f) to (j). Pub. L. 95-113, Sec. 804(4), temporarily added 
subsecs. (f) to (j). See Effective and Termination Dates of 1977 
Amendment note below.
    1958--Subsec. (b). Pub. L. 85-717 provided that after 1959 the one 
acre exemption applies only if producers do not share in peanuts 
produced on any other farm.
    1957--Subsec. (c). Pub. L. 85-127 inserted ``, or were marketed by 
the producer before drying or removal of moisture from such peanuts 
either by natural or artificial means for consumption exclusively as 
boiled peanuts''.
    1956--Subsec. (a). Act May 28, 1956, Sec. 305, substituted ``75 per 
centum of the support price for peanuts for the marketing year (August 
1-July 31)'' for ``50 per centum of the basic rate of the loan 
(calculated to the nearest tenth of a cent) for farm marketing quota 
peanuts for the marketing year August 1-July 31''.
    Subsecs. (d), (e). Act May 28, 1956, Sec. 306, added subsecs. (d) 
and (e). Former subsecs. (d) and (e) were repealed by act July 3, 1948.
    1952--Subsecs. (f) to (i). Act Mar. 28, 1952, repealed subsecs. (f) 
to (i), which permitted farmers to grow peanuts for oil in excess of 
marketing quotas.
    1951--Subsec. (a). Act Apr. 12, 1951, inserted sentence beginning 
``Notwithstanding any other''.
    Subsec. (g). Act Apr. 12, 1951, established 1948 as the year to be 
referred to in cases where no peanuts were harvested in 1947, and 
provided that the Secretary may authorize peanut buyers to purchase 
excess peanuts from producers at specified price levels.
    1950--Subsecs. (g) to (i). Act Mar. 31, 1950, added subsecs. (g) to 
(i).
    1948--Subsecs. (d), (e). Act July 3, 1948, repealed subsecs. (d) and 
(e) which related to referendums and appropriations.
    1947--Act Aug. 1, 1947, amended section generally, changing the 
penalty for excess marketing of peanuts from a flat penalty of 3 cents 
per pound to 50 per cent of the basic loan rate and substituted last two 
sentences for former last sentence which provided a $25 penalty per acre 
for falsely indemnifying or failing to account for peanuts produced in 
subsec. (a), striking out subsec. (b) exempting peanuts to be sold and 
crushed for oil or used for seed from excess marketing penalty, and 
redesignating subsecs. (c) to (g) as (b) to (f), respectively.
    1942--Subsecs. (b), (d). Act July 9, 1942, amended subsecs. (b) and 
(d).


            Effective and Termination Dates of 1989 Amendment

    Section 601 of Pub. L. 101-82 provided that the amendment made by 
that section is effective only for 1988 through 1990 crops of peanuts.


            Effective and Termination Dates of 1985 Amendment

    Section 704 of Pub. L. 99-198 provided that the amendment made by 
that section is effective only for 1986 through 1990 crops of peanuts.


            Effective and Termination Dates of 1981 Amendment

    Section 704 of Pub. L. 97-98 provided that the amendment made by 
that section is effective only for 1982 through 1985 crops of peanuts.


            Effective and Termination Dates of 1979 Amendment

    Pub. L. 96-31 provided that the amendment made by Pub. L. 96-31 is 
effective for 1978 through 1981 crops of peanuts.


            Effective and Termination Dates of 1977 Amendment

    Section 804 of Pub. L. 95-113 provided that the amendment made by 
that section is effective for 1978 through 1981 crops of peanuts.


                    Effective Date of 1957 Amendment

    Pub. L. 85-127, as amended by Pub. L. 86-358, Sept. 22, 1959, 73 
Stat. 642; Pub. L. 87-239, Sept. 14, 1961, 75 Stat. 512; Pub. L. 88-76 
July 25, 1963, 77 Stat. 92; Pub. L. 89-321, title VII, Sec. 704, Nov. 3, 
1965, 79 Stat. 1210; Pub. L. 90-559, Sec. 1(1), Oct. 11, 1968, 82 Stat. 
996; Pub. L. 91-524, title VIII, Sec. 802, Nov. 30, 1970, 84 Stat. 1381, 
provided that the amendment made by Pub. L. 85-127 is effective for 1957 
and subsequent crops of peanuts.


                    Effective Date of 1956 Amendment

    Section 305 of act May 28, 1956, provided that the amendment made by 
that section is effective beginning with 1956 crop.


                    Effective Date of 1948 Amendment

    Amendment by act July 3, 1948, effective Jan. 1, 1950, see section 
303 of act July 3, 1948, set out as a note under section 1301 of this 
title.


                            Savings Provision

    Act Mar. 28, 1952, which repealed subsecs. (f) to (i), also provided 
that the repeal should not affect rights or obligations arising under 
marketing-quota or price support operations with respect to 1951 or 
prior crops of peanuts.

                          Transfer of Functions

    Functions of all officers, agencies, and employees of Department of 
Agriculture transferred, with certain exceptions, 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.
    Functions of all officers of Department of the Treasury, and 
functions of all agencies and employees of such Department, with certain 
exceptions, transferred to Secretary of the Treasury, with power vested 
in him to authorize their performance or performance of any of his 
functions, by any of such officers, agencies, and employees, by 1950 
Reorg. Plan No. 26, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 
Stat. 1280, set out in the Appendix to Title 5, Government Organization 
and Employees. Treasurer of the United States, referred to in this 
section, is an officer of Department of the Treasury.
    Administration of program of Commodity Credit Corporation 
transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, 
Sec. 501, 11 F.R. 7877, 60 Stat. 1100, set out in the Appendix to Title 
5.

                  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

    Subsections (a), (b), (d), and (e) of this 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)(D) of this title.
    Pub. L. 101-624, title VIII, Sec. 801(3), Nov. 28, 1990, 104 Stat. 
3459, provided that subsecs. (a), (b), (d), and (e) of this section are 
inapplicable to 1991 through 1995 crops of peanuts.
    Section 701(3) of Pub. L. 99-198 provided that subsecs. (a), (b), 
(d), and (e) of this section are inapplicable to 1986 through 1990 crops 
of peanuts.
    Section 701(3) of Pub. L. 97-98 provided that subsecs. (a), (b), 
(d), and (e) of this section are inapplicable to 1982 through 1985 
peanut crops.

                  Section Referred to in Other Sections

    This section is referred to in sections 1358-1, 1359a, 7301 of this 
title.
