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

Summary

The Commodity Credit Corporation can sell surplus farm products it got through its loan work to foreign governments if the President says it’s OK. Those governments must keep the goods in reserve at least five years from when they get them. They may only rotate stock to stop spoilage. They may not sell the goods unless a war or a war emergency badly interrupts normal supplies. Any price break must not be below the world market price for unrestricted use as set by the Secretary of Agriculture, and any allowed discount for holding the stock can’t be bigger than the average storage and holding costs the Secretary estimates the Corporation would face for another 18 months. For cotton sold under these rules, the cotton must be sampled and picked where it is stored on the day the sale contract is signed. Cotton moved after that day and sampled elsewhere cannot be sold under the contract. Payment must be completed within 60 days after delivery. No more than 500,000 bales of cotton may be sold under these terms.