7 U.S.C. § 5671: Agricultural embargo protection

Summary

If the President or another federal official stops or limits the export of a U.S. farm product to a country or area for national security or foreign policy reasons, and that limit is not a total ban on all U.S. exports to that place, and sales to that place in the previous year were more than 3 percent of U.S. exports of that product, the Agriculture Secretary must pay the affected producers. How the payment is figured depends on the program the commodity has. For commodities in the Title I farm program, the payment equals the producer’s program yield (or farm yield) times the crop acreage base times the shortfall between 100 percent of the parity price and the average market price received in the 60-day period after the restriction. For other commodities with price support, the payment equals that same price shortfall times the quantity the producer sold while the restriction was in effect. Payments cover each marketing year (or part of one) during the restriction and are paid in equal amounts every 90 days, starting 90 days after the restriction begins. The Secretary must use the Commodity Credit Corporation and may write rules to carry out these payments.

Title 7, §5671

Agriculture, Source: USLM XML via OLRC

(a)Prerequisites; scope of compensation

Notwithstanding any other provision of law, if—

(1)the President or other member of the executive branch of the Federal Government causes the export of any agricultural commodity to any country or area of the world to be suspended or restricted for reasons of national security or foreign policy under the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) or under any other provision of law;

(2)such suspension or restriction of the export of such agricultural commodity is imposed other than in connection with a suspension or restriction of all exports from the United States to such country or area of the world; and

(3)sales of such agricultural commodity for export from the United States to such country or area of the world during the year preceding the year in which the suspension or restriction is imposed exceeds 3 percent of the total sales of such commodity for export from the United States to all foreign countries during the year preceding the year in which the suspension or restriction is in effect;

the Secretary shall compensate producers of the commodity involved by making payments available to such producers, as provided in subsection (b) of this section.

(b)Amount of payments

If the Secretary makes payments available to producers under subsection (a), the amount of such payment shall be determined—

(1)in the case of an agricultural commodity for which payments are authorized to be made to producers under Title I of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.), by multiplying—

(A)the farm program payment yield for the producer or the yield established for the farm for the commodity involved; by

(B)the crop acreage base established for the commodity; by

(C)the amount by which the average market price per unit of such commodity received by producers during the 60-day period immediately following the date of the imposition of the suspension or restriction is less than 100 percent of the parity price for such commodity, as determined by the Secretary on the date of the imposition of the suspension or restriction; or

(2)in the case of other agricultural commodities for which price support is authorized for producers under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), by multiplying the amount by which the average market price per unit of such commodity received by the producers during the 60-day period immediately following the date of the imposition of the suspension or restriction is less than 100 percent of the parity price for such commodity, as determined by the Secretary on the date of the imposition of the suspension or restriction, by the quantity of such commodity sold by the producer during the period that the suspension or restriction is in effect.

(c)Time for payments

Payments under paragraph (1) of subsection (b) shall be made for each marketing year or part thereof during which the suspension or restriction is in effect and shall be made in equal amounts at 90-day intervals, beginning 90 days after the date of the imposition of the suspension or restriction.

(d)Commodity Credit Corporation

The Secretary shall use the Commodity Credit Corporation in carrying out the provisions of this section.

(e)Regulations

The Secretary may issue such regulations as are determined necessary to carry out this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Export Administration Act of 1979, referred to in subsec. (a)(1), is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, which was classified principally to section 2401 et seq. of the former Appendix to Title 50, War and National Defense, prior to editorial reclassification and renumbering as chapter 56 (§ 4601 et seq.) of Title 50, and was repealed by Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232, except for section 11A, 11B, and 11C thereof (50 U.S.C. 4611, 4612, 4613). The Agricultural Act of 1949, referred to in subsec. (b)(1), (2), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, which is classified principally to chapter 35A (§ 1421 et seq.) of this title. Title I of the Act is classified generally to subchapter II (§ 1441 et seq.) of chapter 35A of this title. For complete classification of this Act to the Code, see

Short Title

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

§5671 Agricultural Embargo Protection