§1441–1a Marketing Certificates for Rice

Summary

When, between August 1, 1986 and July 31, 1991, the world price for a class of rice (adjusted to U.S. quality and location) is below the loan repayment rate for that class, the Commodity Credit Corporation will issue negotiable marketing certificates to people who sign up for the program. The Secretary of Agriculture sets the rules and decides payment amounts to help U.S. rice sell at competitive world prices and to keep and grow rice exports. Payments can also cover rice already in inventory on August 1, 1986. Each certificate’s value equals the difference between the loan repayment rate and the world market price as worked out by the Secretary under a published formula that was opened for public comment. The Corporation can help redeem certificates for cash or let them be exchanged for rice it owns, or for other agricultural commodities it owns if both sides agree. Normal price limits on how the Corporation sells commodities do not apply to these certificates. Owners may, when practical, say which commodities or storage sites they prefer. If a certificate isn’t used within a reasonable time set by the Secretary, storage and carrying costs are taken from its value. The Secretary must act to keep these exchanges from hurting farm incomes. Certificates given to rice exporters can be transferred to other exporters and approved people under the Secretary’s rules.