7 U.S.C. § 1441–1a: Marketing certificates for…

Summary

Allow the Commodity Credit Corporation (CCC) to pay people who agree to join its program with negotiable marketing certificates between August 1, 1986, and July 31, 1991 when the world price for a class of rice (adjusted to U.S. quality and location) is below the loan repayment rate. The aim is to keep U.S. rice competitive and support exports. Each certificate’s value equals the loan repayment rate minus the world market price for that rice, using a formula the Secretary of Agriculture publishes after public comment. The CCC can help holders turn certificates into cash or exchange them for CCC-owned rice or other CCC-owned farm commodities or products, at times and prices the Secretary decides; normal price limits for CCC sales do not apply. Owners may ask for particular commodities or storage sites when practical. If a certificate isn’t redeemed within a reasonable number of days, storage and carrying costs (set by the Secretary) will be deducted from its value. The Secretary must act to avoid hurting producers’ incomes. Certificates can be transferred to other exporters or approved persons under Secretary rules.

Title 7, §1441–1a

Agriculture, Source: USLM XML via OLRC

(a)Authority of Commodity Credit Corporation to issue negotiable marketing certificates

Notwithstanding any other provision of law, whenever, during the period beginning August 1, 1986, and ending July 31, 1991, the world price for a class of rice (adjusted to United States qualities and location), as determined by the Secretary of Agriculture, is below the current loan repayment rate for that class of rice, to make United States rice competitive in world markets and to maintain and expand exports of rice produced in the United States, the Commodity Credit Corporation, under such regulations as the Secretary may prescribe, shall make payments, through the issuance of negotiable marketing certificates, to persons who have entered into an agreement with the Commodity Credit Corporation to participate in the program established under this section. Such payments shall be made in such monetary amounts and subject to such terms and conditions as the Secretary determines will make rice produced in the United States available at competitive prices consistent with the purposes of this section, including such payments as may be necessary to make rice in inventory on August 1, 1986, available on the same basis.

(b)Determination of value of certificates

The value of each certificate issued under subsection (a) shall be based on the difference between—

(1)the loan repayment rate for the class of rice; and

(2)the prevailing world market price for the class of rice, as determined by the Secretary of Agriculture under a published formula submitted for public comment before its adoption.

(c)Commodity Credit Corporation assistance in redemption, marketing, or exchange of certificates

The Commodity Credit Corporation, under regulations prescribed by the Secretary of Agriculture, may assist any person receiving marketing certificates under this section in the redemption of certificates for cash, or marketing or exchange of such certificates for (1) rice owned by the Commodity Credit Corporation or (2) (if the Secretary and the person agree) other agricultural commodities or the products thereof owned by the Commodity Credit Corporation, at such times, in such manner, and at such price levels as the Secretary determines will best effectuate the purposes of the program established under this section. Notwithstanding any other provision of law, any price restrictions that may otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this section.

(d)Exchange of certificates for commodities and products

Insofar as practicable, the Secretary shall permit owners of certificates to designate the commodities and the products thereof, including storage sites thereof, such owners would prefer to receive in exchange for certificates. If any certificate is not presented for redemption, marketing, or exchange within a reasonable number of days after the issuance of such certificate (as determined by the Secretary), reasonable costs of storage and other carrying charges, as determined by the Secretary, shall be deducted from the value of the certificate for the period beginning after such reasonable number of days and ending with the date of the presentation of such certificate to the Commodity Credit Corporation.

(e)Prevention of adverse effects

The Secretary of Agriculture shall take such measures as may be necessary to prevent the marketing or exchange of agricultural commodities and the products thereof for certificates under this section from adversely affecting the income of producers of such commodities or products.

(f)Transfer of certificates

Under regulations prescribed by the Secretary of Agriculture, certificates issued to rice exporters under this section may be transferred to other exporters and persons approved by the Secretary.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Food Security Act of 1985, 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.

§1441–1a Marketing Certificates for Rice

Summary

Title 7, §1441–1a

Notes & Related Subsidiaries

Editorial Notes

Short Title

Citations & Metadata