§1442 Price Support and Acreage Requirements for Corn and Other Feed Grains

Summary

When base acreages apply to corn, the Secretary must make price support for corn depend on two things. A producer must set aside cropland equal to 15% of their farm’s corn base acres, by putting that land into either the acreage reserve or the conservation reserve and keep it in the normal rotation. The producer must also not plant more than their farm base acreage for corn. The Secretary can still give price support to a producer who does not meet these rules, but not at a higher level than to those who do, if the Secretary thinks it helps the program. Corn acreage allotments will not apply to the 1956 crop. By December 15, 1956, the Secretary must hold a vote of 1956 corn producers in the commercial corn-producing area. If two-thirds or more vote for the price-support approach described here, then no acreage allotments will be set for counties or farms in that area for 1957 and later crops, and Commodity Credit Corporation support will be set at a level the Secretary thinks helps sell corn through normal markets without encouraging uneconomic overproduction. The law sets specific support levels. For the 1956 crop of grain sorghums, barley, rye, and oats the support level is 76% of the parity price on May 1, 1956. For corn grown outside the commercial corn area (when base acreages apply), support must be 82½% of the support level for corn in the commercial area given to producers who follow acreage limits. If 1957 corn in the commercial area receives support for producers who do not meet acreage limits, then support for the 1957 crops of grain sorghums, barley, rye, oats, and corn outside the commercial area must be at least 70% of parity at the start of the marketing year. The Secretary must set that level to be fair compared with the noncomplying corn support and must consider normal price relationships, feed value, supply and demand, and the ability to sell stocks acquired through support.