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PROCLAMATIONS AFFIRMED

Effect of act April 7, 1938, ch. 107, 52 Stat. 202, see note under section 1312 of this title.

CROSS REFERENCE

Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

Supplemental provisions relating to marketing quotas, see section 1330 (10), this title.

§ 1346. Amount of farm marketing quotas; exemption from penalties. (a) The farm marketing quota for cotton for any farm for any marketing year shall be a number of bales of cotton equal to the sum of

(1) A number of bales equal to the normal production or the actual production, whichever is the greater, of the farm acreage allotment, and

(2) A number of bales equal to the amount, or part thereof, of cotton from any previous crop which the farmer has on hand, which, had such amount, or part thereof, been marketed during the preceding marketing year in addition to the cotton actually marketed during such preceding marketing year, could have been marketed without penalty.

(b) The penalties provided for in section 1348 of this title shall not apply to the marketing of cotton produced on any farm for which a farm acreage allotment has been made for the current crop if the production of the current crop does not exceed one thousand pounds of lint cotton. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 346, 52 Stat. 59.)

CROSS REFERENCE

Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

§ 1347. Referendum.-Not later than December 15 of any calendar year in which a proclamation of farm marketing quotas pursuant to the provisions of sections 1341-1350 of this title has been made, the Secretary shall conduct a referendum, by secret ballot, of farmers who were engaged in production of the crop harvested prior to the holding of the referendum to determine whether they favor or oppose such quotas. If more than one-third of the farmers voting in the referendum oppose such quotas, the Secretary shall, prior to the end of such calendar year, proclaim the result of the referendum, and upon such proclamation the quotas shall become ineffective. If a proclamation under section 1345 of this title is made with respect to the 1938 crop, the referendum with respect to such crop shall be held not later than thirty days after the date of the enactment of this chapter and the result thereof shall be proclaimed not later than forty-five days after such date. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 347, 52 Stat. 59.)

PROCLAMATIONS AFFIRMED

Effect of act April 7, 1938, ch. 107, 52 Stat. 202, see note under section 1312 of this title.

§ 1348. Penalties.-Any farmer who, while farm marketing quotas are in effect, markets cotton in excess of the farm market

ing quota for the marketing year for the farm on which such cotton was produced, shall be subject to the following penalties with respect to the excess so marketed: 2 cents per pound if marketed during the first marketing year when farm marketing quotas are in effect; and 3 cents per pound if marketed during any subsequent year, except that the penalty shall be 2 cents per pound if cotton of the crop subject to penalty in the first year is marketed subject to penalty in any subsequent year. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 348, 52 Stat. 59.)

§ 1349. Exceeding acreage allotment as affecting eligibility for payments; statement of compliance.-(a) Any person who knowingly plants cotton on his farm in any year on acreage in excess of the farm acreage allotment for cotton for the farm for such year under section 1344 of this title shall not be eligible for any payment for such year under sections 590a-590q of Title 16.

(b) All persons applying for any payment of money under sections 590a-590q of Title 16, with respect to any farm located in a county in which cotton has been planted during the year for which such payment is offered, shall file with the application a statement that the applicant has not knowingly planted, during the current year, cotton on land on his farm in excess of the acreage allotted to the farm under section 1344 of this title for such year. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 349, 52 Stat. 59; April 7, 1938, ch. 107, § 10, 52 Stat. 204.)

§ 1350. Application to long staple cotton. The provisions of sections 1341-1350 of this title shall not apply to cotton the staple of which is 111⁄2 inches or more in length. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 350, 52 Stat. 60.)

PART V.-MARKETING QUOTAS-RICE

§ 1351. Legislative finding of effect on interstate and foreign commerce and necessity for regulation.-(a) The marketing of rice constitutes one of the great basic industries of the United States with ramifying activities which directly affect interstate and foreign commerce at every point, and stable conditions therein are necessary to the general welfare. Rice produced for market is sold on a Nation-wide market, and, with its products, moves almost wholly in interstate and foreign commerce from the producer to the ultimate consumer. The farmers producing such commodity are subject in their operations to uncontrollable natural causes, in many cases such farmers carry on their farming operations on borrowed money or leased lands, and are not so situated as to be able to organize effectively, as can labor and industry, through unions and corporations enjoying Government sanction and protection for joint economic action. For these reasons, among others, the farmers are unable without Federal assistance to control effectively the orderly marketing of such commodity with the result that abnormally excessive supplies thereof are produced and dumped indiscriminately on the Nationwide market.

(b) The disorderly marketing of such abnormally excessive supplies affects, burdens, and obstructs interstate and foreign

commerce by (1) materially affecting the volume of such commodity marketed therein, (2) disrupting the orderly marketing of such commodity therein, (3) reducing the prices for such commodity with consequent injury and destruction of such commerce in such commodity, and (4) causing a disparity between the prices for such commodity in interstate and foreign commerce and industrial products therein, with a consequent diminution of the volume of interstate and foreign commerce in industrial products.

(c) Whenever an abnormally excessive supply of rice exists, the marketing of such commodity by the producers thereof directly and substantially affects interstate and foreign commerce in such commodity and its products, and the operation of the provisions of sections 1351-1356 of this title becomes necessary and appropriate in order to promote, foster, and maintain an orderly flow of such supply in interstate and foreign commerce. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 351, 52 Stat. 60.)

§ 1352. National acreage allotment.-The national acreage allotment of rice for any calendar year shall be that acreage which the Secretary determines will, on the basis of the national average yield of rice for the five calendar years immediately preceding the calendar year for which such national average yield is determined, produce an amount of rice adequate, together with the estimated carry-over from the marketing year ending in such calendar year, to make available a supply for the marketing year commencing in such calendar year not less than the normal supply. Such national acreage allotment shall be proclaimed not later than December 31 of each year. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 352, 52 Stat. 60.)

CROSS REFERENCE

Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

§ 1353. Apportionment of national acreage allotment-(a) Apportionment among States.-The national acreage allotment of rice for each calendar year shall be apportioned by the Secretary among the several States in which rice is produced in proportion to the average number of acres of rice in each State during the five-year period immediately preceding the calendar year for which such national acreage allotment of rice is determined (plus, in applicable years, the acreage diverted under previous agricultural adjustment and conservation programs) with adjustments for trends in acreage during the applicable period.

(b) Apportionment among producers.-Not less than 97 per centum of the acreage allotted to any State shall be apportioned annually by the Secretary through local and State committees of farmers among the persons producing rice within such State on the basis of past production of rice; land, labor, and available equipment for the production of rice; crop-rotation practices, soil fertility, and other physical factors affecting the production of rice: Provided, That not exceeding 3 per centum of the acreage allotted to each State shall be apportioned annually by the Secretary through local and State committees of farmers among persons who for the first time in the past five years are producing

rice on the basis of the applicable standards of apportionment set forth in this subsection: Provided further, That a person producing rice for the first time in five years shall not be alloted an acreage in excess of 75 per centum of the allotment that would be made to him if he were not producing rice for the first time in such five years. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 353, 52 Stat. 61.)

CROSS REFERENCE

Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

§ 1354. Domestic allotment of rice-(a) Finding and proclamation. Not later than December 31 of each year the Secretary shall ascertain from the latest available statistics of the Department and shall proclaim the total amount of rice which will be needed during the next succeeding marketing year to meet the requirements of consumers in the United States. Such amount is hereinafter referred to as the "domestic allotment of rice."

(b) Apportionment among States.-The domestic allotment of rice for each marketing year shall be apportioned by the Secretary among the several States in which rice is produced in proportion to the average amount of rice produced in each State during the five-year period including the calendar year in which such domestic allotment is announced (plus, in applicable years, the normal production of any acreage diverted under previous agricultural adjustment and conservation programs), with adjustments for abnormal weather conditions and trends in acreage during the applicable period.

(c) Apportionment among producers.-The Secretary shall provide, through local and State committees of farmers, for the allotment of each State apportionment among persons producing rice in such State. The apportionment of the domestic allotment of rice among persons producing rice in each State shall be on the basis of the aggregate normal yields of the acreage allotments established with respect to such persons. Feb. 16, 1938, 3 p. m., ch. 30, title III, § 354, 52 Stat. 61.)

CROSS REFERENCE

Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

§ 1355. Marketing quotas-(a) Proclamation.-If at the time of any proclamation made under the provisions of section 1354 (a) of this title it shall appear from the latest available statistics of the Department that the total supply of rice exceeds the normal supply thereof for the current marketing year by more than 10 per centum of such normal supply, the Secretary shall also proclaim that, beginning on the first day of the marketing year next following and continuing throughout such year a national marketing quota shall be in effect for marketings of rice by producers: Provided, That no marketing quota shall be in effect for the marketing year commencing August 1, 1938. The Secretary shall also ascertain and specify in such proclamation the amount of the

national marketing quota in terms of the total quantity thereof which may be marketed by producers which shall be that amount of rice which the Secretary determines will make available during such marketing year a normal supply.

(b) Referendum.-Within thirty days after the date the issuance of the proclamation specified in subsection (a) of this section, the Secretary shall conduct a referendum, by secret ballot, of producers who would be subject to the national marketing quota for rice to determine whether such producers are in favor of or opposed to such quota. If more than one-third of the producers voting in the referendum oppose such quota, the Secretary shall, prior to the 15th day of February, proclaim the result of the referendum, and such quota shall not become effective.

(c) Apportionment among States and producers.-The national marketing quota shall be apportioned among States and persons producing rice in each State, including new producers, in the manner and upon the basis set forth in section 1354 of this title for the apportionment of the domestic allotment of rice.

(d) Transfer of quotas.-Marketing quotas may be transferred only in such manner and subject to such conditions as the Secretary may prescribe by regulations. (Feb. 16, 1938, 3 p. m., ch. 30, title III § 355, 52 Stat. 62.)

CROSS REFERENCE

Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

§ 1356. Penalties. Any producer who markets rice in excess of his marketing quota shall be subject to a penalty of one-quarter of 1 cent per pound of the excess so marketed. (Feb. 16, 1938, 3 p. m., ch. 30, title III, § 356, 52 Stat. 62.)

§ 1357. Legislative findings. The production, marketing, and processing of peanuts and peanut products employs a large number of persons and is of national interest. The movement of peanuts from producer to consumer is preponderantly in interstate and foreign commerce, and, owing to causes beyond their control, the farmers producing such commodity and the persons engaged in the marketing and processing thereof are unable to regulate effectively the orderly marketing of the commodity. As the quantity of peanuts marketed in the channels of interstate and foreign commerce increases above the quantity of peanuts needed for cleaning and shelling, the prices at which all peanuts are marketed are depressed to low levels. These low prices tend to cause the quantity of peanuts available for marketing in later years to be less than normal, which in turn tends to cause relatively high prices. This fluctuation of prices and marketings of peanuts creates an unstable and chaotic condition in the marketing of peanuts for cleaning and shelling and for crushing for oil in the channels of interstate and foreign commerce. Since these unstable and chaotic conditions have existed for a period of years and are likely, without proper regulation, to continue to exist, it is imperative that the marketing of peanuts for cleaning and shelling and for crushing for oil in interstate and foreign commerce be

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