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Title 7, AgricultureRelease 119-102

§1435 Production of Commodities for Conversion Into Alcohol or Hydrocarbons for Use as Motor Fuels or Other Fuels; Terms and Conditions; Determinations; Payments, Etc., for Program

Title 7 › CHAPTER 35A — PRICE SUPPORT OF AGRICULTURAL COMMODITIES › SUBCHAPTER I — GENERAL PROVISIONS › § 1435

Last updated Aug 21, 2026|Official source

Summary

The Secretary of Agriculture can allow any of the land set aside under the Agricultural Act of 1949 to be used to grow crops that will be turned into alcohol or hydrocarbons for motor fuel or other fuels. The Secretary must set rules. The Secretary can only do this if it will help provide enough crops for fuel, will not likely raise the cost of price-support programs, and will not hurt farm income. If no set-aside or diversion is in effect in a year under the 1949 Act, the Secretary can create a program to produce crops for fuel. Farmers who grow wheat, feed grains, upland cotton, and rice can get incentive payments to devote some acreage to that use. The Secretary will set fair payment rates, can make rules to run the program, and Congress may fund it as needed.

Full Legal Text

Title 7, §1435

Agriculture, Source: USLM XML via OLRC

(a)The Secretary of Agriculture shall permit, subject to such terms and conditions as the Secretary shall prescribe, all or any part of the acreage set aside or diverted under the Agricultural Act of 1949 [7 U.S.C. 1421 et seq.] from the production of a commodity for any crop year to be devoted to the production of any commodity for conversion into alcohol or hydrocarbons for use as motor fuel or other fuel, if the Secretary of Agriculture determines that such production is desirable in order to provide an adequate supply of commodities for such conversion, is not likely to increase the cost of price support programs, and will not adversely affect farm income.
(b)(1)During any year in which no set-aside or diversion of acreage is in effect under the Agricultural Act of 1949 [7 U.S.C. 1421 et seq.], the Secretary of Agriculture may formulate and administer a program for the production, subject to such terms and conditions as he may prescribe, of commodities for conversion into alcohol or hydrocarbons for use as motor fuel or other fuel. Under such program, producers of wheat, feed grains, upland cotton, and rice shall be paid incentive payments to devote a portion of their acreage to such production.
(2)The payments under this subsection shall be made at such rate or rates as the Secretary of Agriculture determines to be fair and reasonable, taking into consideration the participation necessary to ensure an adequate supply of commodities for such conversion.
(3)The Secretary may issue any regulations necessary to carry out the provisions of this subsection.
(4)There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this subsection.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Agricultural Act of 1949, referred to in subsecs. (a) and (b)(1), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, which is classified principally to this chapter (§ 1421 et seq.). For complete classification of this Act to the Code, see

Short Title

note set out under section 1421 of this title and Tables. Codification Section was enacted as part of the Food and Agriculture Act of 1977 as added by the Biomass Energy and Alcohol Fuels Act of 1980 which is title II of the Energy and Security Act, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see

Short Title

note set out under section 1421 of this title and Tables.

Reference

Citations & Metadata

Citation

7 U.S.C. § 1435

Title 7, Agriculture

Last Updated

Aug 21, 2026

Release point: 119-102