SEC. 701. This title may be cited as the "National Wool Act of 1954." (7 U.S.C. 1781 note.)

SEC. 702.2 It is hereby recognized that wool is an essential, strategic, and energy-efficient commodity which is not produced in the United States in sufficient quantities and grades to meet the domestic needs; and that the desired domestic production of wool is impaired by predatory animals and by the depressing effects of wide fluctuations in the price of wool in the world markets. It is hereby declared to be the policy of Congress, as a measure of national security and to promote the general economic welfare, a positive balance of trade, and the efficient use of the Nation's resources, to encourage the continued domestic production of wool at prices fair to both producers and consumers in a manner which will assure a viable domestic wool industry in the future. (7 U.S.C. 1781.)

SEC. 703.3 (a) The Secretary of Agriculture shall, through the Commodity Credit Corporation, support the prices of wool and mohair, respectively, to the producers thereof by means of loans, purchases, payments, or other operations. Such price support shall be limited to wool and mohair marketed during the period beginning April 1, 1955, and ending December 31, 1981.

(b) The support price for shorn wool for the 1966 and each subsequent marketing year shall be determined by multiplying 62 cents by the ratio of (i) the average of the parity index (the index of prices paid by farmers, including commodities and services, interest, taxes, and farm wage rates, as defined in section 301(a)(1)(C) of the Agricultural Adjustment Act of 1938, as amended) for the three calendar years immediately preceding the calendar year in which such price support is determined and announced to (ii) the average parity index for the three calendar years 1958, 1959, and 1960, and rounding the resulting amount to the nearest full cent: Provided, That for the marketing years beginning January 1, 1971, and ending December 31, 1976, the support price for shorn wool shall be 72 cents per pound, grease basis: Provided further, That for the marketing years beginning January 1, 1977, and ending December 31, 1981, the support price for shorn wool shall be 85 per centum (rounded to the nearest full cent) of the amount calculated according to the foregoing formula.

(c) The support prices for pulled wool and for mohair shall be established at such levels, in relationship to the support price for shorn wool, as the Secretary determines will maintain normal marketing practices

Title VII of the Agricultural Act of 1954, P.L. 83-690, 68 Stat. 910, Aug. 28, 1954.

2 The provisions of this section were substituted for the previous provisions by Sec. 301 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 921, Sept. 29, 1977.

The Food and Agriculture Act of 1965, P.L. 89-321, 79 Stat. 1188, Nov. 3, 1965, amended this section by extending the period for price support to December 31, 1969; by adding as a proviso the language that now appears as the portion of Subsection (b) prior to the first colon; and by deleting what was formerly the fourth sentence of the section. The period was extended to December 31, 1970, by P.L. 90-559, 82 Stat. 996, Oct. 11, 1968. Sec. 301 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1362, Nov. 30, 1973, amended Sec. 703 by deleting all of the third sentence except the language that was formerly the second proviso and which now appears as Subsection (b) down to the first colon: by adding the first proviso to Subsec. (b) and the proviso to subsec. (c); by dividing Sec. 703 into five subsections; and by extending the price support period to December 13, 1973. Sec. 1(7) of the Agriculture and Consumer Protection Act of 1973. P.L. 93-86, 87 Stat. 224, Aug. 10, 1973, substituted "1977" for "1973" each place it appeared and deleted the word "three" in the provisos in Subsecs. (b) and (c). Section 302 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 921, Sept. 29, 1977, amended Subsec. (a) by substituting "1981" for "1977"; Subsec. (b) by substituting "1976" for "1977" and adding the proviso appearing after the word "basis"; and Subsec. (c) by substituting "1976 for "1977".

for pulled wool, and as the Secretary shall determine is necessary to maintain approximately the same percentage of parity for mohair as for shorn wool. The deviation of mohair support prices shall not be calculated so as to cause it to rise or fall more than 15 per centum above or below the comparable percentage of parity at which shorn wool is supported: Provided, That for the marketing years beginning January 1, 1971, and ending December 31, 1976, the support price for mohair shall be 80.2 cents per pound, grease basis.

(d) Notwithstanding the foregoing, no price support shall be made available, other than through payments, at a level in excess of 90 per centum of the parity price for the commodity.

(e) The Secretary shall, to the extent practicable, announce the support price levels for wool and mohair sufficiently in advance of each marketing year as will permit producers to plan their production for such marketing year. (7 U.S.C. 1782.)

SEC. 704. If payments are utilized as a means of price support, the payments shall be such as the Secretary of Agriculture determines to be sufficient, when added to the national average price received by producers, to give producers a national average return for the commodity equal to the support price level therefor: Provided, That the total of all such payments made under this Act shall not at any time exceed an amount equal to 70 per centum of the accumulated totals as of the same date, of the gross receipts from duties collected on and after January 1, 1953, on all articles subject to duty under schedule 11 of the Tariff Act of 1930, as amended. The payments shall be made upon wool and mohair marketed by the producers thereof, but any wool or mohair produced prior to January 1, 1955, shall not be the subject of payments. The payments shall be at such rates for the marketing year or periods thereof as the Secretary determines will give producers the support price level as herein provided. Payments to any producer need not be made if the Secretary determines that the amount of the payment to the producer or all producers is too small to justify the cost of making such payments. The Secretary may make the payment to producers through the marketing agency to or through whom the producer marketed his wool or mohair: Provided, That such marketing agency agrees to receive and promptly distribute the payments on behalf of such producers. In case any person who is entitled to any such payment dies, becomes incompetent, or disappears before receiving such payment, or is succeeded by another who renders or completes the required performance, the payment shall, without regard to any other provisions of law, be made as the Secretary may determine to be fair and reasonable in all the circumstances and provided by regulation. (7 U.S.C. 1783.)

SEC. 705. For the purpose of reimbursing the Commodity Credit Corporation for any expenditures made by it in connection with payments to producers under this title, there is hereby appropriated for each fiscal year beginning with the fiscal year ending June 30, 1956, an amount equal to the total of expenditures made by the Corporation during the preceding fiscal year and to any amounts expended in prior fiscal years not previously reimbursed: Provided, however, That such

*Sections 402 and 403 of the Agricultural Act of 1958, P.L. 85-835, 72 Stat. 995, Aug. 28, 1958, deleted "specific" prior to, and "(whether or not such specific duties are parts of compound rates)" following, the word "duties."

amounts appropriated for any fiscal year shall not exceed 70 per centum of the gross receipts from duties collected during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year on all articles subject to duty under schedule 11 of the Tariff Act of 1930, as amended. For the purposes of the appraisal under the Act of March 8, 1938, as amended (15 U.S.C. 713a-1), the Commodity Credit Corporation shall establish on its books an account receivable in an amount equal to any amount expended by Commodity Credit Corporation in connection with payments pursuant to this title which has not been reimbursed from appropriations made hereunder. (7 U.S.C. 1784.)

SEC. 706. Except as otherwise provided in this title, the amounts, terms, and conditions of the price support operations and the extent to which such operations are carried out shall be determined or approved by the Secretary of Agriculture. The Secretary may, in determining support prices and rates of payment, make adjustments in such prices or rates for differences in grade, quality, type, location, and other factors to the extent he deems practicable and desirable. Determinations by the Secretary under this title shall be final and conclusive. The facts constituting the basis for any operation, payment, or amount thereof when officially determined in conformity with applicable regulations prescribed by the Secretary shall be final and conclusive and shall not be reviewable by any other officer or agency of the Government. (7 U.S.C. 1785.)

SEC. 707. The term "marketing year" as used in this title means the twelve-month period beginning April 1 of each calendar year or, for either wool or mohair, such other period, or periods for prescribed areas, as the Secretary may determine to be desirable to effectuate the purpose of this title. (7 U.S.C. 1786.)

SEC. 708. The Secretary of Agriculture is authorized to enter into agreements with, or to approve agreements entered into between, marketing cooperatives, trade associations, or others engaged or whose members are engaged in the handling of wool, mohair, sheep, or goats or the products thereof for the purpose of developing and conducting on a national, State, or regional basis advertising and sales promotion programs and programs for the development and dissemination of information on product quality, production management, and marketing improvement, for wool, mohair, sheep, or goats or the products thereof. Advertising and sales promotion programs may be conducted outside of the United States for the purpose of maintaining and expanding foreign markets and uses for mohair or goats or the products thereof produced in the United States.5 Provision may be made in such agreement to obtain the funds necessary to defray the expenses incurred thereunder through pro rata deductions from the payments made under section 704 of this title to producers within the production area he determines will be benefited by the agreement and for the assignment and transfer of the amounts so deducted to the person or agency designated in the agreement to receive such amounts for expenditure in accordance with the terms and conditions of the agreement. No agreement containing such a provision for defraying ex

The first two sentences were substituted by Sec. 1(7) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 224, Aug. 10, 1973, for the first sentence of the section.

penses through deductions shall become effective until the Secretary determines that at least two-thirds of the producers who, during a representative period determined by the Secretary, have been engaged, within the production area he determines will be benefited by the agreement, in the production for market of the commodity specified therein approve or favor such agreement or that producers who, during such representative period have produced at least two-thirds of the volume of such commodity produced within the area which will be benefited by such agreement, approve or favor such agreement. Approval or disapproval by cooperative associations shall be considered as approval or disapproval by the producers who are members of, stockholders in, or under contract with such cooperative association of producers. The Secretary may conduct a referendum among producers to ascertain their approval or favor. The requirements of approval or favor shall be held to be complied with if two-thirds of the total number of producers, or two-thirds of the total volume of production, as the case may be, represented in such referendum, indicate their approval or favor. (7 U.S.C. 1787.)

SEC. 709.6

SEC. 710.7*

[Act of June 21, 19768*** That the Secretary of Agriculture is authorized to amend retroactively regulations of the Department of Agriculture pertaining to the computation of price support payments under the National Wool Act of 1954 in order that the amount of such payments may, in the case of any rancher or farmer, be computed on the basis of (1) the net sales proceeds received, or (2) in the case of any rancher or farmer who failed to realize the amount provided for in the sales document, the lesser of the following: (A) the net sales proceeds based on the price the rancher or farmer would have received had there been no default of payment under such document, or (B) the fair market value of the commodity concerned at the time of sale.

SEC. 2. The Secretary of Agriculture is further authorized to reconsider any application filed for the payment of price support under the National Wool Act of 1954 with respect to any commodity marketed during the four marketing years 1969 through 1972 and to make such payment adjustments as he determines fair and equitable on the basis of any amendment to regulations made under authority of the first section of this Act. (7 U.S.C. 1785.)]

6 Section 709 deleted the reference to wool (including mohair) in the first sentence of Sec. 201 of the Agricultural Act of 1949, and repealed subsection (a) thereof relating to price support of wool and mohair.

This section contains an amendment to the Commodity Exchange Act.

P.L. 94-312, 90 Stat. 690.

Sales in General:

Agriculture Act of 1949 Sec. 407.

Export Sales, see Subpart E: Export and Surplus Removal
Sales for Disaster Relief

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SALES IN GENERAL

Agriculture Act of 1949. SEC. 407. The Commodity Credit Corporation may sell any farm commodity owned or controlled by it at any price not prohibited by this section. In determining sales policies for basic agricultural commodities or storable nonbasic commodities, the Corporation should give consideration to the establishing of such policies with respect to prices, terms, and conditions as it determines will not discourage or deter manufacturers, processors, and dealers from acquiring and carrying normal inventories of the commodity of the current crop. The Corporation shall not sell any basic agricultural commodity or storable nonbasic commodity at less than 5 per centum above the current support price for such commodity, plus reasonable carrying charges: Provided, 1 That effective with the beginning of the marketing year for the 1961 crop, the Corporation shall not sell any upland or extra long staple cotton for unrestricted use at less than 15 per centum above the current support price for cotton plus reasonable carrying charges, except that the Corporation may, in an orderly manner and so as not to affect market prices unduly, sell for unrestricted use at the market price at the time of sale a number of bales of cotton equal to the number of bales by which the national marketing quota for such marketing year is reduced below the estimated domestic consumption and exports for such marketing year pursuant to the provisions of section 342 of the Agricultural Adjustment Act of 1938, as amended: Provided further, 2 That beginning August 1, 1964, the Commodity Credit Corporation may sell upland cotton for unrestricted use at not less than 105 per centum of the current loan rate for such cotton under section 103(a) plus reasonable carrying charges: Provided, 3 That the Corporation shall not sell any of its stocks of wheat, corn, grain sorg

1 This proviso was added by section 109 of the Agricultural Act of 1958. P.L. 85-835, 72 Stat. 996. The proviso was superseded as to upland cotton on August 1, 1964, by the proviso which follows it in the text.

2 This proviso, which was added by P.L. 88-297, 78 Stat. 175, April 11, 1964, was superseded by the provisions quoted in footnote 12, for the effective periods therein stated. Such proviso will become fully effective again on August 1, 1982. 3 This proviso was substituted for two previous provisos by Sec. 409 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1367, Nov. 30, 1970, effective only for the 1971, 1972, and 1973 marketing years. Sec. 1(16) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86. 87 Stat. 230. Aug. 10, 1973, made it effective through the 1977 marketing years. Sec. 408(1) of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 927, Sept. 29, 1977, made this proviso effective with respect to the marketing years for the 1978 through 1981 crops.

The previous provisos, which will once again become effective for the 1982 marketing years, read as follows: "Provided, That if a wheat marketing allocation program is in effect, the current support price for wheat shall be the support price for wheat accompanied by marketing certificate and wheat sold shall be accompanied by a marketing certificate." (This proviso was added by the Food and Agriculture Act of 1962, P.L. 87-703, 76 Stat. 631, Sept. 27, 1962. It was superseded for the 1964 through 1970 marketing years by the proviso quoted in footnote 36 on page 185 of Agriculture Handbook No. 444.)

"Provided, That whenever the Secretary of Agriculture determines that the carryover at the end of any marketing year of a price supported agricultural commodity for which a voluntary adjustment program is in effect will be less than 25 per centum (35 per centum in the case of wheat) of the estimated export and domestic consumption of such commodity during such marketing year, the Commodity Credit Corporation shall not sell any of its stocks of such commodity during such year for unrestricted use at less than 115 per centum (120 per centum in the case of wheat whenever its carryover will be less than 25 per centum of such estimated export and domestic consumption) of the current price support loan plus reasonable carrying charges." (This proviso was added by the Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1538, Nov. 11, 1966, effective January 1, 1967.)