§8738 — Title 7 Agriculture | U.S. Code

Summary

From when the Act is passed until July 31, 2013, the Secretary must run a program to keep U.S. extra long staple cotton in use at home, grow its exports, and help it compete in world markets. Payments are made only when two things happen at the same time: for four straight weeks the world market price for the cheapest competing extra long staple cotton (after adjusting for U.S. quality, location, and other factors) is lower than the U.S. price, and that world price is under 134 percent of the loan rate. Payments go to U.S. users and exporters who sign up with the Commodity Credit Corporation. The payment equals the price gap in the fourth week multiplied by the documented purchases or export sales made in the week after that four‑week period.

Title 7, §8738

Agriculture — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, during the period beginning on the date of enactment of this Act through July 31, 2013, the Secretary shall carry out a program—

(1)to maintain and expand the domestic use of extra long staple cotton produced in the United States;

(2)to increase exports of extra long staple cotton produced in the United States; and

(3)to ensure that extra long staple cotton produced in the United States remains competitive in world markets.

(b)Under the program, the Secretary shall make payments available under this section whenever—

(1)for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and

(2)the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton.

(c)The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.

(d)Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of enactment of this Act, referred to in subsec. (a), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

§8738 Special Competitive Provisions for Extra Long Staple Cotton