§713a–6 Sale of surplus agricultural commodities to foreign governments

Summary

Even if other laws say otherwise, the Commodity Credit Corporation, with the President’s approval, may sell surplus farm commodities it got through its loan programs to foreign governments. Those governments must keep the commodities in reserve for at least five years from the date they get them, except they may rotate stock to prevent spoilage. They cannot dispose of the goods early unless a war or war emergency causes a serious supply interruption. Any price concession cannot be lower than the world market price for unrestricted use, except a discount up to the estimated average carrying costs the Secretary of Agriculture says the CCC would have for holding the commodities an extra 18 months. Cotton sold under these rules must be sampled and selected where it is stored on the day the sale is signed; cotton moved after that day and sampled elsewhere cannot be sold under the contract. Payment must be made within 60 days after delivery. No more than 500,000 bales of cotton may be sold under these terms.