§5677 Trade Compensation and Assistance Programs

Summary

When, after April 4, 1996, the President or another executive official stops U.S. farm exports to a country for national security or foreign policy reasons, and no other country with farm trade ties joins the stoppage within 90 days, the Secretary must run a trade compensation assistance program to help farmers affected by that suspension. The Secretary picks the option that helps farmers most. The Secretary can either pay producers for estimated price losses, or set aside funds equal to 90 percent of the average yearly value of U.S. farm exports to that country over the last 3 years to boost exports or send food to developing countries. Payments can last up to 3 fiscal years. Money comes from the Commodity Credit Corporation. The rule does not apply during war or armed hostility. Partial-year suspensions generally get the full yearly amount, and suspensions for short supply are handled under section 1310.