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Title 7, AgricultureRelease 119-110

§1359ff Provisions Applicable to Producers

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 › § 1359ff

Last updated Sep 22, 2026|Official source

Summary

Processors who get a sugar allotment must promise to share it fairly with the farmers they buy from, based on the farmers’ past production. If a farmer or group of farmers disagree with a processor about the split, either side can ask the Secretary to settle by arbitration. The arbitration should start within 45 days of the request and finish within 60 days. If a sugar beet plant closes and the growers want to send beets to a different processor, the growers can ask the Secretary to change the allotments. The Secretary can raise the new processor’s allotment up to that processor’s capacity, with the processor’s agreement. Any increase comes out of the closed plant’s allotment, and the Secretary must decide within 60 days after the petition. If a State has a State allotment and more than 250 sugarcane growers (excluding Puerto Rico), the Secretary must check whether, without limits, growers would produce more sugar than processors need to fill the allotment and keep a normal carryover. If so, the Secretary must set a proportionate share for each sugarcane farm that limits how many acres may be harvested for sugar or seed that year. Key steps: the Secretary sets a per-acre yield goal at no less than the average per-acre yield for the two highest years among 1999, 2000, and 2001; adjusts that goal by the average recovery rate; divides the State allotment by that adjusted yield to get a State acreage allotment; divides that acreage allotment by the sum of all adjusted acreage bases to get a uniform reduction percentage; and applies that percentage to each farm’s acreage base to get the farm’s share. A farm’s acreage base is the average acres planted (and counted as planted) for harvest in the two highest of 1999–2001; acres lost to drought, flood, or other disasters may be counted as harvested. Farmers must not knowingly harvest more than their share. A violation counts only if the processor markets sugar that exceeds the processor’s allocation. The penalty is one and one-half times the U.S. market value of the excess sugar, and penalties are split fairly among the farmers who supplied the excess. County and State committees can waive or change deadlines when lateness will not harm the system. If a disaster cuts the crop so processors cannot meet the State allotment and normal carryover, the Secretary may let producers harvest more or suspend proportionate shares.

Full Legal Text

Title 7, §1359ff

Agriculture, Source: USLM XML via OLRC

(a)Processor assurances
(1)In general
If allotments for a crop year are allocated to processors under section 1359dd of this title, the Secretary shall obtain from the processors such assurances as the Secretary considers adequate that the allocation will be shared among producers served by the processor in a fair and equitable manner that adequately reflects producers’ production histories.
(2)Arbitration
(A)In general
Any dispute between a processor and a producer, or group of producers, with respect to the sharing of the allocation to the processor shall be resolved through arbitration by the Secretary on the request of either party.
(B)Period
The arbitration shall, to the maximum extent practicable, be—
(i)commenced not more than 45 days after the request; and
(ii)completed not more than 60 days after the request.
(b)Sugar beet processing facility closures
(1)In general
If a sugar beet processing facility is closed and the sugar beet growers that previously delivered beets to the facility elect to deliver their beets to another processing company, the growers may petition the Secretary to modify allocations under this subpart to allow the delivery.
(2)Increased allocation for processing company
The Secretary may increase the allocation to the processing company to which the growers elect to deliver their sugar beets, with the approval of the processing company, to a level that does not exceed the processing capacity of the processing company, to accommodate the change in deliveries.
(3)Decreased allocation for closed company
The increased allocation shall be deducted from the allocation to the company that owned the processing facility that has been closed and the remaining allocation shall be unaffected.
(4)Timing
The determinations of the Secretary on the issues raised by the petition shall be made within 60 days after the filing of the petition.
(c)Proportionate shares of certain allotments
(1)Definition of seed
(A)In general
In this subsection, the term “seed” means only those varieties of seed that are dedicated to the production of sugarcane from which is produced sugar for human consumption.
(B)Exclusion
The term “seed” does not include seed of a high-fiber cane variety dedicated to other uses, as determined by the Secretary.
(2)In general
(A)States affected
In any case in which a State allotment is established under section 1359cc(f) of this title and there are in excess of 250 sugarcane producers in the State (other than Puerto Rico), the Secretary shall make a determination under subparagraph (B).
(B)Determination
The Secretary shall determine, for each State allotment described in subparagraph (A), whether the production of sugarcane, in the absence of proportionate shares, will be greater than the quantity needed to enable processors to fill the allotment and provide a normal carryover inventory of sugar.
(3)Establishment of proportionate shares
If the Secretary determines under paragraph (2) that the quantity of sugar produced from sugarcane produced by producers in the area covered by a State allotment for a crop year will be in excess of the quantity needed to enable processors to fill the allotment for the crop year and provide a normal carryover inventory of sugar, the Secretary shall establish a proportionate share for each sugarcane-producing farm that limits the acreage of sugarcane that may be harvested on the farm for sugar or seed during the crop year the allotment is in effect as provided in this subsection. Each such proportionate share shall be subject to adjustment under paragraph (8) and section 1359cc(g) of this title.
(4)Method of determining
For purposes of determining proportionate shares for any crop of sugarcane:
(A)The Secretary shall establish the State’s per-acre yield goal for a crop of sugarcane at a level (not less than the average per-acre yield in the State for the 2 highest years from among the 1999, 2000, and 2001 crop years, as determined by the Secretary) that will ensure an adequate net return per pound to producers in the State, taking into consideration any available production research data that the Secretary considers relevant.
(B)The Secretary shall adjust the per-acre yield goal by the average recovery rate of sugar produced from sugarcane by processors in the State.
(C)The Secretary shall convert the State allotment for the crop year involved into a State acreage allotment for the crop by dividing the State allotment by the per-acre yield goal for the State, as established under subparagraph (A) and as further adjusted under subparagraph (B).
(D)The Secretary shall establish a uniform reduction percentage for the crop by dividing the State acreage allotment, as determined for the crop under subparagraph (C), by the sum of all adjusted acreage bases in the State, as determined by the Secretary.
(E)The uniform reduction percentage for the crop, as determined under subparagraph (D), shall be applied to the acreage base for each sugarcane-producing farm in the State to determine the farm’s proportionate share of sugarcane acreage that may be harvested for sugar or seed.
(5)Acreage base
For purposes of this subsection, the acreage base for each sugarcane-producing farm shall be determined by the Secretary, as follows:
(A)The acreage base for any farm shall be the number of acres that is equal to the average of the acreage planted and considered planted for harvest for sugar or seed on the farm in the 2 highest of the 1999, 2000, and 2001 crop years.
(B)Acreage planted to sugarcane that producers on a farm were unable to harvest to sugarcane for sugar or seed because of drought, flood, other natural disaster, or other condition beyond the control of the producers may be considered as harvested for the production of sugar or seed for purposes of this paragraph.
(6)Violation
(A)In general
Whenever proportionate shares are in effect in a State for a crop of sugarcane, producers on a farm shall not knowingly harvest, or allow to be harvested, for sugar or seed an acreage of sugarcane in excess of the farm’s proportionate share for the crop year, or otherwise violate proportionate share regulations issued by the Secretary under section 1359hh(a) of this title.
(B)Determination of violation
No producer shall be considered to have violated subparagraph (A) unless the processor of the sugarcane harvested by such producer from acreage in excess of the proportionate share of the farm markets an amount of sugar that exceeds the allocation of such processor for a crop year.
(C)Civil penalty
Any producer on a farm who violates subparagraph (A) by knowingly harvesting, or allowing to be harvested, an acreage of sugarcane for sugar in excess of the farm’s proportionate share shall be liable to the Commodity Credit Corporation for a civil penalty equal to one and one-half times the United States market value of the quantity of sugar that is marketed by the processor of such sugarcane in excess of the allocation of such processor for the crop year. The Secretary shall prorate penalties imposed under this subparagraph in a fair and equitable manner among all the producers of sugarcane harvested from excess acreage that is acquired by such processor.
(7)Waiver
Notwithstanding the preceding subparagraph, the Secretary may authorize the county and State committees established under section 590h(b) of title 16 to waive or modify deadlines and other proportionate share requirements in cases in which lateness or failure to meet the other requirements does not affect adversely the operation of proportionate shares.
(8)Adjustments
Whenever the Secretary determines that, because of a natural disaster or other condition beyond the control of producers that adversely affects a crop of sugarcane subject to proportionate shares, the amount of sugar from sugarcane produced by producers subject to the proportionate shares will not be sufficient to enable processors in the State to meet the State’s cane sugar allotment and provide a normal carryover inventory of sugar, the Secretary may uniformly allow producers to harvest an amount of sugarcane in excess of their proportionate share, or suspend proportionate shares entirely, as necessary to enable processors to meet the State allotment and provide a normal carryover inventory of sugar.

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 1359ff, act Feb. 16, 1938, ch. 30, title III, § 359f, as added Pub. L. 101–624, title IX, § 902, Nov. 28, 1990, 104 Stat. 3484; amended Pub. L. 102–237, title I, § 111(h), Dec. 13, 1991, 105 Stat. 1834; Pub. L. 102–535, Oct. 27, 1992, 106 Stat. 3526, related to provisions applicable to producers, prior to the general amendment of this subpart by Pub. L. 107–171.

Amendments

2014—Subsec. (c)(1)(B). Pub. L. 113–79 inserted period at end. 2008—Subsec. (c). Pub. L. 110–246, § 1403(f), added par. (1), redesignated former pars. (1) to (7) as (2) to (8), respectively, in par. (3), substituted “paragraph (2)” for “paragraph (1)”, “quantity of sugar produced from sugarcane” for “quantity of sugarcane”, and “paragraph (8)” for “paragraph (7)”, in par. (6)(C), substituted “acreage of sugarcane for sugar” for “acreage of sugarcane”, in par. (8), substituted “the amount of sugar from sugarcane” for “the amount of sugarcane”, and struck out former par. (8) which related to petition to modify allocations to allow delivery to another sugarcane processing company if a processing facility was closed and the growers that had delivered sugarcane to the facility prior to closure had elected to deliver their sugarcane to another company.

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. § 1359ff

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110