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Title 7, AgricultureRelease 119-110

§1359ee Reassignment of Deficits

Title 7 › CHAPTER 35 — AGRICULTURAL ADJUSTMENT ACT OF 1938 › SUBCHAPTER II — LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES › Part B — Marketing Quotas › subpart vii — flexible marketing allotments for sugar › § 1359ee

Last updated Sep 22, 2026|Official source

Summary

The Secretary must check, while sugar allotments are in effect, whether any cane or beet sugar processor will not be able to sell the sugar they were given. The check is based on current stocks, expected production and sales, and other relevant facts. If a cane processor can’t sell its share, the Secretary must first move the shortfall to other processors in the same State based on their ability and the growers’ interests. If there is still a shortfall, the Secretary must spread it to other cane sugar States by capacity, then sell sugar from the Commodity Credit Corporation’s stocks unless those sales would strongly affect sugar prices, and finally allow imports of raw cane sugar if needed. For beet sugar, the Secretary must first reassign the shortfall to other beet processors, then use CCC stocks (unless sales would strongly affect prices), and then allow imports if needed. For beet sugar, the Secretary must use the January World Agricultural Supply and Demand Estimates from the World Agricultural Outlook Board for the first decision and make the first reassignment within 30 days after that report is released. Any processor that receives reassigned sugar has its allocation increased by that amount.

Full Legal Text

Title 7, §1359ee

Agriculture, Source: USLM XML via OLRC

(a)Estimates of deficits
At any time allotments are in effect under this subpart, the Secretary, from time to time, shall determine whether (in view of then-current inventories of sugar, the estimated production of sugar and expected marketings, and other pertinent factors) any processor of sugarcane will be unable to market the sugar covered by the portion of the State cane sugar allotment allocated to the processor and whether any processor of sugar beets will be unable to market sugar covered by the portion of the beet sugar allotment allocated to the processor.
(b)Reassignment of deficits
(1)Cane sugar
If the Secretary determines that any sugarcane processor who has been allocated a share of a State cane sugar allotment will be unable to market the processor’s allocation of the State’s allotment for the crop year—
(A)the Secretary first shall reassign the estimated quantity of the deficit to the allocations for other processors within that State, depending on the capacity of each other processor to fill the portion of the deficit to be assigned to it and taking into account the interests of producers served by the processors;
(B)if after the reassignments the deficit cannot be completely eliminated, the Secretary shall reassign the estimated quantity of the deficit proportionately to the allotments for other cane sugar States, depending on the capacity of each other State to fill the portion of the deficit to be assigned to it, with the reassigned quantity to each State to be allocated among processors in that State in proportion to the allocations of the processors;
(C)if after the reassignments the deficit cannot be completely eliminated, the Secretary shall reassign the estimated quantity of the deficit to the Commodity Credit Corporation and shall sell such quantity of sugar from inventories of the Corporation unless the Secretary determines that such sales would have a significant effect on the price of sugar; and
(D)if after the reassignments and sales, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports of raw cane sugar.
(2)Beet sugar
(A)In general
If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment will be unable to market that allocation—
(i)the Secretary first shall reassign the estimated quantity of the deficit to the allotments for other sugar beet processors, depending on the capacity of each other processor to fill the portion of the deficit to be assigned to it and taking into account the interests of producers served by the processors;
(ii)if after the reassignments the deficit cannot be completely eliminated, the Secretary shall reassign the estimated quantity of the deficit to the Commodity Credit Corporation and shall sell such quantity of sugar from inventories of the Corporation unless the Secretary determines that such sales would have a significant effect on the price of sugar; and
(iii)if after the reassignments and sales, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports of raw cane sugar.
(B)Timing
In carrying out subparagraph (A), the Secretary shall—
(i)make an initial determination based on the World Agricultural Supply and Demand Estimates approved by the World Agricultural Outlook Board for January that shall be applicable to the crop year for which allotments are required; and
(ii)provide for an initial reassignment under subparagraph (A)(i) not later than 30 days after the date on which the World Agricultural Supply and Demand Estimates described in clause (i) is released.
(3)Corresponding increase
The allocation of each processor receiving a reassigned quantity of an allotment under this subsection for a crop year shall be increased to reflect the reassignment.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 made identical

Amendments

to this section. The

Amendments

by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Prior Provisions

A prior section 1359ee, act Feb. 16, 1938, ch. 30, title III, § 359e, as added Pub. L. 101–624, title IX, § 902, Nov. 28, 1990, 104 Stat. 3484; amended Pub. L. 102–237, title I, § 111(g), Dec. 13, 1991, 105 Stat. 1833, related to reassignment of sugar deficits, prior to the general amendment of this subpart by Pub. L. 107–171.

Amendments

2025—Subsec. (b)(2). Pub. L. 119–21 designated existing provisions as subpar. (A) and inserted heading, redesignated former subpars. (A) to (C) as cls. (i) to (iii), respectively, of subpar. (A) and realigned margins, and added subpar. (B). 2008—Subsec. (b)(1)(D), (2)(C). Pub. L. 110–246, § 1403(e), inserted “of raw cane sugar” after “imports”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an

Effective Date

note under section 8701 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 1359ee

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110