
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: 7USC1359ff]

 
                          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 vii--marketing quotas--sugar and crystalline fructose
 
Sec. 1359ff. Provisions applicable to producers


(a) Processor assurances

    Whenever allotments for a fiscal year are allocated to processors 
under section 1359dd of this title, the Secretary shall obtain from the 
processors such assurances as the Secretary considers adequate that the 
allocation will be shared among producers served by the processor in a 
fair and equitable manner that adequately reflects producers' production 
histories. Any dispute between a processor and a producer, or group of 
producers, with respect to the sharing of the processor's allocation 
shall be resolved through arbitration by the Secretary on the request of 
either party.

(b) Proportionate shares of certain allotments

                           (1) In general

        (A) States affected

            In any case in which a State allotment is established under 
        section 1359cc(f) of this title and there are in excess of 250 
        sugarcane producers in the State (other than Puerto Rico), the 
        Secretary shall make a determination under subparagraph (B).

        (B) Determination

            The Secretary shall determine, for each State allotment 
        described in subparagraph (A), whether the production of 
        sugarcane, in the absence of proportionate shares, will be 
        greater than the quantity needed to enable processors to fill 
        the allotment and provide a normal carryover inventory of sugar.

              (2) Establishment of proportionate shares

        If the Secretary determines under paragraph (1) that the 
    quantity of sugarcane produced by producers in the area covered by a 
    State allotment for a fiscal year will be in excess of the quantity 
    needed to enable processors to fill the allotment for the fiscal 
    year and provide a normal carryover inventory of sugar, the 
    Secretary shall establish a proportionate share for each sugarcane-
    producing farm that limits the acreage of sugarcane that may be 
    harvested on the farm for sugar or seed during the fiscal year the 
    allotment is in effect as provided in this subsection. Each such 
    proportionate share shall be subject to adjustment under paragraph 
    (7) and section 1359cc(g) of this title.

                      (3) Method of determining

        For purposes of determining proportionate shares for any crop of 
    sugarcane:
            (A) The Secretary shall establish the State's per-acre yield 
        goal for a crop of sugarcane at a level (not less than the 
        average per-acre yield in the State for the preceding 5 years, 
        as determined by the Secretary) that will ensure an adequate net 
        return per pound to producers in the State, taking into 
        consideration any available production research data that the 
        Secretary considers relevant.
            (B) The Secretary shall adjust the per-acre yield goal by 
        the average recovery rate of sugar produced from sugarcane by 
        processors in the State.
            (C) The Secretary shall convert the State allotment for the 
        fiscal year involved into a State acreage allotment for the crop 
        by dividing the State allotment by the per-acre yield goal for 
        the State, as established under subparagraph (A) and as further 
        adjusted under subparagraph (B).
            (D) The Secretary shall establish a uniform reduction 
        percentage for the crop by dividing the State acreage allotment, 
        as determined for the crop under subparagraph (C), by the sum of 
        all adjusted acreage bases in the State, as determined by the 
        Secretary.
            (E) The uniform reduction percentage for the crop, as 
        determined under subparagraph (D), shall be applied to the 
        acreage base for each sugarcane-producing farm in the State to 
        determine the farm's proportionate share of sugarcane acreage 
        that may be harvested for sugar or seed.

                          (4) Acreage base

        For purposes of this subsection, the acreage base for each 
    sugarcane-producing farm shall be determined by the Secretary, as 
    follows:
            (A) The acreage base for any farm shall be the number of 
        acres that is equal to the average of the acreage planted and 
        considered planted for harvest for sugar or seed on the farm in 
        each of the 5 crop years preceding the fiscal year the 
        proportionate share will be in effect.
            (B) Acreage planted to sugarcane that producers on a farm 
        were unable to harvest to sugarcane for sugar or seed because of 
        drought, flood, other natural disaster, or other condition 
        beyond the control of the producers may be considered as 
        harvested for the production of sugar or seed for purposes of 
        this paragraph.

                            (5) Violation

        (A) In general

            Whenever proportionate shares are in effect in a State for a 
        crop of sugarcane, producers on a farm shall not knowingly 
        harvest, or allow to be harvested, for sugar or seed an acreage 
        of sugarcane in excess of the farm's proportionate share for the 
        fiscal year, or otherwise violate proportionate share 
        regulations issued by the Secretary under section 1359hh(a) of 
        this title.

        (B) Determination of violation

            No producer shall be considered to have violated 
        subparagraph (A) unless the processor of the sugarcane harvested 
        by such producer from acreage in excess of the proportionate 
        share of the farm markets an amount of sugar that exceeds the 
        allocation of such processor for a fiscal year.

        (C) Civil penalty

            Any producer on a farm who violates subparagraph (A) by 
        knowingly harvesting, or allowing to be harvested, an acreage of 
        sugarcane in excess of the farm's proportionate share shall be 
        liable to the Commodity Credit Corporation for a civil penalty 
        equal to one and one-half times the United States market value 
        of the quantity of sugar that is marketed by the processor of 
        such sugarcane in excess of the allocation of such processor for 
        the fiscal year. The Secretary shall prorate penalties imposed 
        under this subparagraph in a fair and equitable manner among all 
        the producers of sugarcane harvested from excess acreage that is 
        acquired by such processor.

                             (6) Waiver

        Notwithstanding the preceding subparagraph, the Secretary may 
    authorize the county and State committees established under section 
    590h(b) of title 16 to waive or modify deadlines and other 
    proportionate share requirements in cases in which lateness or 
    failure to meet the other requirements does not affect adversely the 
    operation of proportionate shares.

                           (7) Adjustments

        Whenever the Secretary determines that, because of a natural 
    disaster or other condition beyond the control of producers that 
    adversely affects a crop of sugarcane subject to proportionate 
    shares, the amount of sugarcane produced by producers subject to the 
    proportionate shares will not be sufficient to enable processors in 
    the State to meet the State's cane sugar allotment and provide a 
    normal carryover inventory of sugar, the Secretary may uniformly 
    allow producers to harvest an amount of sugarcane in excess of their 
    proportionate share, or suspend proportionate shares entirely, as 
    necessary to enable processors to meet the State allotment and 
    provide a normal carryover inventory of sugar.

(Feb. 16, 1938, ch. 30, title III, Sec. 359f, as added Pub. L. 101-624, 
title IX, Sec. 902, Nov. 28, 1990, 104 Stat. 3484; amended Pub. L. 102-
237, title I, Sec. 111(h), Dec. 13, 1991, 105 Stat. 1834; Pub. L. 102-
535, Oct. 27, 1992, 106 Stat. 3526.)


                               Amendments

    1992--Subsec. (b)(1)(B). Pub. L. 102-535, Sec. 3(a), substituted 
``production of sugarcane'' for ``production of sugar'' and inserted 
``of sugar'' before period at end.
    Subsec. (b)(2). Pub. L. 102-535, Sec. 3(b), (c), substituted 
``sugarcane produced by producers in the area'' for ``sugar processed 
from all crops by all processors'' and inserted ``of sugar'' after 
``provide a normal carryover inventory'' and ``paragraph (7) and'' after 
``adjustment under''.
    Subsec. (b)(5)(B), (C). Pub. L. 102-535, Sec. 1, added subpars. (B) 
and (C) and struck out former subpar. (B) which read as follows: ``(B) 
Civil penalty.--Any producer who violates subparagraph (A) shall be 
liable to the Commodity Credit Corporation for a civil penalty in an 
amount equal to 3 times the United States market value, at the time of 
the commission of the violation, of the quantity of sugar produced from 
that quantity of sugarcane involved in the violation. The quantity of 
sugarcane involved shall be determined based on the per-acre yield goal 
established under paragraph (3).''
    Subsec. (b)(7). Pub. L. 102-535, Sec. 2, added par. (7).
    1991--Subsec. (b)(1)(A). Pub. L. 102-237, Sec. 111(h)(1), 
substituted ``250 sugarcane producers in the State (other than Puerto 
Rico)'' for ``250 producers in such State''.
    Subsec. (b)(2)(A). Pub. L. 102-237, Sec. 111(h)(2), substituted 
``establish a proportionate share for each sugarcane-producing farm that 
limits the acreage of sugarcane that may be harvested on the farm for 
sugar or seed during'' for ``establish proportionate shares for the crop 
of sugarcane that is harvested during''.
    Subsec. (b)(3). Pub. L. 102-237, Sec. 111(h)(3), added par. (3) and 
struck out former par. (3) which read as follows: ``For purposes of 
determining proportionate shares for any crop of sugarcane:
        ``(A) The Secretary shall establish the State's per-acre yield 
    goal for a crop at a level (not less than the average per-acre yield 
    in the State for the preceding 5 years, as determined by the 
    Secretary) that will ensure an adequate net return per pound to 
    producers in the State, taking into consideration any available 
    production research data that the Secretary deems relevant.
        ``(B) The Secretary shall convert the State allotment for the 
    fiscal year involved into a State acreage allotment for the crop by 
    dividing the State allotment by the per-acre yield goal for the 
    State, as established under subparagraph (A).
        ``(C) The Secretary shall establish a uniform reduction 
    percentage for the crop by dividing the State acreage allotment, as 
    determined for the crop under subparagraph (B), by the sum of all 
    acreage bases in the State, as determined by the Secretary, that the 
    Secretary estimates would otherwise be harvested for the production 
    of the crop of sugarcane.
        ``(D) The uniform reduction percentage for the crop, as 
    determined under subparagraph (C), shall be applied to the acreage 
    base for each farm covered by the State allotment to determine the 
    farm's proportionate share for the crop.''
    Subsec. (b)(4). Pub. L. 102-237, Sec. 111(h)(3), added par. (4) and 
struck out former par. (4) which read as follows: ``For purposes of this 
subsection, the acreage base for each sugarcane-producing farm shall be 
determined by the Secretary, as follows:
        ``(A) The acreage base for any crop shall be the number of acres 
    that is equal to the average of the acreage planted and considered 
    planted for harvest for sugar or seed on the farm in each of the 5 
    crop years preceding the crop year.
        ``(B) Acreage that producers on a farm were unable to harvest to 
    sugarcane for sugar or seed because of drought, flood, other natural 
    disaster, or other condition beyond the control of the producers 
    shall be considered as harvested to sugarcane for sugar or seed for 
    purposes of this paragraph.''
    Subsec. (b)(5). Pub. L. 102-237, Sec. 111(h)(3), added par. (5) and 
struck out former par. (5) which read as follows:
    ``(A) In general.--Whenever proportionate shares are in effect in a 
State for a crop of sugarcane, no producer in the State knowingly may 
harvest for sugar or seed an acreage of sugarcane of the crop in excess 
of the farm's proportionate share for the crop or otherwise violate 
proportionate share regulations issued by the Secretary under section 
1359hh(a) of this title.
    ``(B) Civil penalty.--Any producer who violates subparagraph (A) 
shall be liable to the Commodity Credit Corporation for a civil penalty 
in an amount equal to 3 times the United States market value, at the 
time of the commission of the violation, of that quantity of sugar 
involved in the violation. The quantity of sugar involved shall be 
determined based on the per-acre yield goal established under paragraph 
(3).''


                       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)(E) of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1359cc, 1359gg, 1359ii, 
1359jj of this title.
