§713a–6 Sale of Surplus Agricultural Commodities to Foreign Governments

Summary

The Commodity Credit Corporation, with the President’s okay, may sell surplus farm commodities from its loan operations to foreign governments. Those governments must keep the commodities in reserve at least five years, except for limited rotation to prevent spoilage, and may only dispose of them sooner if a war or war emergency seriously interrupts normal supplies. Any price discount cannot exceed the estimated average carrying charges the Secretary of Agriculture says CCC would have for holding the goods 18 more months. For cotton, samples must be taken and chosen where the cotton is stored on the day the sale is signed. Cotton moved after that day and sampled elsewhere cannot be sold under the agreement. Payment must be settled within 60 days after delivery, and no more than 500,000 bales of cotton may be sold under these terms.