
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: 7USC1423]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 1423. Adjustments of support prices


(a) In general

    The Secretary may make appropriate adjustments in the support price 
for any commodity (excluding cotton) for differences in grade, type, 
quality, location and other factors. The adjustments shall, so far as 
practicable, be made in such manner that the average support price for 
the commodity will, on the basis of the anticipated incidence of such 
factors be equal to the level of support determined as provided in this 
Act. Beginning with the 1991 crops of wheat, feed grains, and soybeans 
for which price support is provided under this Act, the Secretary shall 
establish premiums and discounts related to cleanliness factors in 
addition to any other premiums or discounts related to quality.

(b) Adjustment in support prices for cotton

    The Secretary may make appropriate adjustments in the support price 
for cotton for differences in quality factors and location. Beginning 
with the 1991 crop, the quality differences (premiums and discounts for 
quality factors) for the upland cotton loan program shall be established 
by the Secretary by giving equal weight to (1) loan differences for the 
preceding crop, and (2) market differences for such crop in the 
designated United States spot markets.

(c) Limitation on adjustments for wheat and feed grains

    Notwithstanding any other provision of this section, for each of the 
1990 through 1995 crops of wheat and feed grains, no adjustment in the 
loan rate applicable to a particular region, State, or county for the 
purpose of reflecting transportation differentials may increase or 
decrease the regional, State, or county loan rate from the level 
established for the previous year by more than the percentage change in 
the national average loan rate plus or minus 3 percent.

(Oct. 31, 1949, ch. 792, title IV, Sec. 403, 63 Stat. 1054; Pub. L. 85-
835, title I, Secs. 108, 111, Aug. 28, 1958, 72 Stat. 993; Pub. L. 89-
321, title VIII, Sec. 802, Nov. 3, 1965, 79 Stat. 1213; Pub. L. 97-98, 
title V, Sec. 507, Dec. 22, 1981, 95 Stat. 1241; Pub. L. 100-203, title 
I, Sec. 1105, Dec. 22, 1987, 101 Stat. 1330-5; Pub. L. 101-624, title 
XI, Sec. 1128, title XX, Sec. 2011, Nov. 28, 1990, 104 Stat. 3508, 
3932.)

                       References in Text

    This Act, referred to in subsec. (a), is act Oct. 31, 1949, ch. 792, 
63 Stat. 1051, as amended, known as the Agricultural Act of 1949, which 
is classified principally to this chapter (Sec. 1421 et seq.). For 
complete classification of this Act to the Code, see Short Title note 
set out under section 1421 of this title and Tables.


                               Amendments

    1990--Pub. L. 101-624, Sec. 2011, inserted at end of subsec. (a) 
``Beginning with the 1991 crops of wheat, feed grains, and soybeans for 
which price support is provided under this Act, the Secretary shall 
establish premiums and discounts related to cleanliness factors in 
addition to any other premiums or discounts related to quality.''
    Pub. L. 101-624, Sec. 1128, in amending section generally, 
designated part of existing text as subsecs. (a), (b), and (c), and in 
subsec. (a) inserted provisions excluding cotton, in subsec. (b) 
substituted reference to 1991 crop for reference to 1982 crop, and 
substituted reference to quality factors for reference to grade, staple 
and micronaire, and in subsec. (c) substituted reference to 1990 through 
1995 crops for reference to 1988 through 1990 crops, substituted 
reference to 3 percent for reference to 2 percent, and struck out 
provisions relating to establishment and duties of a study committee and 
authority of Secretary to review and revise procedures and criteria for 
establishing values of premiums and discounts for grade, staple and 
micronaire for upland cotton program.
    1987--Pub. L. 100-203 inserted at end ``Notwithstanding the 
preceding provisions of this section, for each of the 1988 through 1990 
crops of wheat and feed grains, no adjustment in the loan rate 
applicable to a particular region, State, or county for the purpose of 
reflecting transportation differentials may increase or decrease such 
regional, State, or county loan rate from the level established for the 
previous year by more than the percentage change in the national average 
loan rate plus or minus 2 percent.''
    1981--Pub. L. 97-98 inserted provision directing that beginning with 
1982 crop of upland cotton, the quality differences for the loan program 
be established by giving equal weight to the loan differences for the 
preceding crop and to the market differences for the crop in the nine 
designated United States spot markets and authorizing the Secretary to 
establish a study committee to study and report on alternative methods 
of establishing values of premiums and discounts for grade, staple, and 
micronaire for the upland cotton loan program that accurately represent 
true relative market values and reflect actual market demand for upland 
cotton produced in the United States and to review procedures and 
criteria for determining quality differences, prior to the announcement 
of the loan rate differences for the 1982 crop of upland cotton, and 
based on such review, revise such procedures and criteria to actually 
reflect the actual market value of upland cotton produced in the United 
States.
    1965--Pub. L. 89-321 provided that, in determining support prices 
for 1966 and 1967 rice crops, the Secretary shall use head and broken 
rice value factors for the various varieties which are not lower than 
those with respect to the 1965 crop and which do not differ as between 
any two varieties by a greater amount than the value factors used with 
respect to the 1965 crop for such two varieties differed.
    1958--Pub. L. 85-835 provided for support of split grades, and 
repealed, effective with the 1961 crop, sentence prescribing standard 
cotton grade for parity and price support purposes.


                    Effective Date of 1990 Amendment

    Amendment by section 1128 of Pub. L. 101-624 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 a note under 
section 1421 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section 1801 
of Pub. L. 97-98, set out as an Effective Date note under section 4301 
of this title.

                  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, effective 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 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(b)(1)(J) of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1428, 1444, 1445 of this 
title.
