§1339 Land Use

Summary

Requires farmers under wheat marketing quotas to take some acreage out of wheat and sets penalties and payment rules for what happens on that diverted land. If a farmer grows any crop on acreage that must be diverted, the farmer must pay a penalty unless the Agriculture Secretary says that crop won’t create a surplus or won’t hurt the program, or unless no wheat is grown on the farm and the farmer did not join the payment program. New farms that got an allotment from the reserve are not hit with this penalty. How much land each farm must divert is based on the farm’s wheat allotment and a national diversion factor tied to cuts below 55,000,000 acres. The penalty is figured on the actual acres planted at a rate equal to 65% of the parity price per bushel of wheat on May 1 of the harvest year, multiplied by the farm’s normal wheat yield per acre. Until the penalty is paid, the United States can put a lien on the farm’s wheat. All producers with a share of the crop are jointly responsible. Interest at 6% per year runs from when the penalty is due until it is paid. The Secretary can require the same fields be diverted as the year before and may allow grazing on diverted land under rules the Secretary sets. From 1964 through 1970 the Secretary can run a land‑use payment program to pay up to 50% of an estimated county support rate for wheat for normal production on diverted acres, subject to terms the Secretary sets. Farmers who met their 1964 allotment and program rules can get payments for the 1964 crop. The Secretary may let farmers divert extra acres equal to 50% of the farm allotment or, if they choose, divert enough to make total diverted land 25 acres. Diverted acres must be used for approved conservation purposes. The farm’s total soil‑conserving acreage must be at least its usual amount, with adjustments for weather, rotations, other programs, and similar factors, and producers must not knowingly exceed acreage limits for any commodity. New farms are not eligible for payments. Payments must be shared fairly among farm participants and may be cash or wheat. The Secretary can reduce payments for noncompliance and may pay up to 50% in advance before checking performance. The Secretary may allow certain oilseed and specialty crops on diverted land if needed, but payment for those acres may not exceed half the conservation payment rate. The Secretary may add terms such as erosion control and make regulations. The Commodity Credit Corporation can use its funds for these payments and related admin costs through June 30, 1965, and further admin funding may be appropriated later.