Public Law 74–104

That the Act entitled “An Act to provide for the protection or land resources against soil erosion, and for other purposes”, approved April 27, 1935, is amended by inserting at the end thereof the following:

“Sec. 7.

(a)(a)

It is hereby declared to be the policy of this Act also to secure, and the purposes of this Act shall also include, (1) preservation and improvement of soil fertility; (2) promotion of the economic use and conservation of land; (3) diminution of exploitation and wasteful and unscientific use of national soil resources; (4) the protection of rivers and harbors against the results of soil erosion in aid of maintaining the navigability of waters and water courses and in aid of flood control; and (5) reestablishment, at as rapid a rate as the Secretary of Agriculture determines to be practicable and in the general public interest, of the ratio between the purchasing power of the net income per person on farms and that of the income per person not on farms that prevailed during the five-year period August 1909–July 1914, inclusive, as determined from statistics available in the United States Department of Agriculture, and the

Powers conferred to assist voluntary action.

maintenance of such ratio. The powers conferred under sections 7 to 14, inclusive, of this Act shall be used to assist voluntary action

Parity of production with domestic consumption.

calculated to effectuate the purposes specified in this section. Such powers shall not be used to discourage the production of supplies of foods and fibers sufficient to maintain normal domestic human consumption as determined by the Secretary from the records of domestic human consumption in the years 1920 to 1929. inclusive, taking into consideration increased population, quantities of any commodity that were forced into domestic consumption by decline in exports during such period, current trends in domestic consumption and exports of particular commodities, and the quantities of substitutes available for domestic consumption within any general

Adequate supply of commodities to be maintained.

class of food commodities. In carrying out the purposes of this section due regard shall be given to the maintenance of a continuous and stable supply of agricultural commodities adequate to meet consumer demand at prices fair to both producers and consumers.

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“(b)“(b)

The Secretary of Agriculture shall cooperate with States, in the execution of State plans to effectuate the purposes of this section, by making grants under this section to enable them to carry out such plans.

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“(c)“(c)

Any State which submits to the Secretary, prior to such time and in such manner and form as the. Secretary prescribes, a State plan to effectuate the purposes of this section shall be entitled to payments, as provided in this section, for the year to which such plan is applicable, if such plan is approved by the Secretary as provided in this section.

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“(d)“(d)

No such plan shall be approved unless by its terms:

“(1)“(1)

It provides that the agency to administer the plan shall be such State agency as may be designated by the Secretary if such agency is authorized by the State, or such other State agency as is authorized by the State and approved by the Secretary;

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“(2)“(2)

It provides for such methods of administration, and such participation in the administration of the plan by county and community committees or associations of agricultural producers organized for such purpose, as the Secretary finds necessary for the effective administration of the plan; and

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“(3)“(3)

It provides for the submission to the Secretary of such reports as he finds necessary to ascertain whether the plan is being carried out according to its terms, and for compliance with such requirements as the Secretary may prescribe to assure the correctness of and make possible the verification of such reports.

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“(e)“(e)

Such plan shall be approved if the Secretary finds that there

Approval provisions.

is a reasonable prospect that—

“(1)“(1)

Substantial accomplishment in effectuating the purposes of this section will be brought about through the operation of such plan and the plans submitted by other States, and

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“(2)“(2)

The operation of such plan will result in as substantial a furtherance of such accomplishment as may reasonably be achieved through the action of such State.

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“(f)“(f)

Upon approval of any State plan for any year the Secretary

Allocations.

shall allocate to such State such sum (not in excess of the maximum amount fixed in pursuance of subsection (g) for such State for such year) as he finds necessary to carry out such plan for such year, and thereupon shall certify to the Secretary of the Treasury for payment to such agency of the State as the Secretary of Agriculture certifies is designated in the plan, and the Secretary of the Treasury shall pay to such agency, one-fourth of the amount so allocated. The remainder of the amount so allocated shall be similarly certified and paid in such installments (payable prior to the end of the calendar year) as may be provided in the plan. No such installment shall be

Conditions.

certified for payment if the Secretary of Agriculture finds that, prior to the due date of such installment, there has been a substantial failure by the State to carry out the plan according to its terms, or that the further operation of the plan according to its terms will not tend to effectuate the purposes of this section. No amount shall be certified for payment under any such installment in excess of the amount the Secretary finds necessary for the effective carrying out of the plan during the period to which the installment relates.

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“(g)“(g)

On or before November 1 of each year, the Secretary shall

Determination of apportionments.

apportion among the several States the funds which will be available for carrying out State plans during the next calendar year, and in determining the amount to be apportioned to each State, the Secretary shall take into consideration the acreage and value of the major soil depleting and major export crops produced in the respective States during a representative period and the acreage and productivity of land devoted to agricultural production (including dairy products) in the respective States during a representative period: Provided, however, That apportionments of funds available for carrying out

Proviso.

Apportionments for 1936 and 1937.

the purposes specified in this section for the year 1936 may be made at any time during 1936, and apportionments for 1937 may be made at, any time during 1937. Notwithstanding the making of an apportionment

Availability of funds.

to any State for any calendar year, the funds apportioned to any State for which no plan has been approved for such year, and any amount apportioned to any State which is not required to carry out an approved plan for such State for such year, shall be available for carrying out the provisions of sections 7 to 14, inclusive, of this Act.

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“Sec. 8.

(a)(a)

In order to carry our the purposes specified in section

Powers of Secretary where State plan inonperative.

7 (a) during the period necessary to afford a reasonable opportunity for legislative action by a sufficient number of States to assure the effectuation of such purposes by State action and in order to promote the more effective accomplishment of such purposes by State action thereafter, the Secretary shall exercise the powers conferred in this

Exceptions.

section during the period prior to January 1, 1938, except with respect to farming operations commenced in any State after the effective date of a State plan for such State approved pursuant to section 7. No such powers shall be exercised after December 31, 1937, except with respect to payments or grants in connection with farming operations carried out prior to January 1, 1938.

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“(b)“(b)

Subject to the limitations provided in subsection (a) of this section, the Secretary shall have power to carry out the purposes specified in clauses (1), (2), (3), and (4) of section 7 (a) by making payments or grants or other aid to agricultural producers, including tenants and share-croppers, in amounts, determined by the Secretary to be fair and reasonable in connection with the effectuation of such purposes during the year with respect to which such payments or grants are made, and measured by, (1) their treatment or use of their land, or a part thereof, for soil restoration, soil conservation, or the prevention of erosion, (2) changes in the use of their land, (3) a percentage of their normal production of any one or more agricultural commodities designated by the Secretary which equals that percentage of the normal national production of such commodity or commodities required for domestic consumption, or (4)

Amount of payment.

any combination of the above. In determining the amount of any payment or grant measured by (1) or (2) the Secretary shall take into consideration the productivity of the land affected by the farming practices adopted during the year with respect to which

Administrative requirements and limitations.

such payment is made. In carrying out the provisions of this section, the Secretary shall, as far as practicable, protect the interests of tenants and share-croppers. In carrying out the provisions of this section, the Secretary is authorized to utilize county and community committees of agricultural producers and the agricultural extension service, or other approved agencies. In carrying out the provisions of this section, the Secretary shall not have power to enter into any contract binding upon any producer or to acquire any land or any right or interest therein. In carrying out the provisions of this section, the Secretary shall, in every practicable manner, protect the interests of small producers. The Secretary in administering this section shall in every practical way encourage and provide for soil conserving and soil rebuilding practices rather than the growing of soil depleting commercial crops.

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“(c)“(c)

Any payment or grant of aid made under subsection (b) shall be conditioned upon the utilization of the land, with respect to which such payment is made, in conformity with farming practices which the Secretary finds tend to effectuate the purposes specified in clause (1), (2), (3), or (4) of section 7 (a).

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“Sec. 9.

The Secretary is authorized to conduct surveys, investigations, and research relating to the conditions and factors affecting, and methods of accomplishing most effectively, the policy and purposes of section 7 (a). Notwithstanding any provision of existing law, the Secretary is authorized to make public such information as he deems necessary to carry out the provisions of this Act.

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“Sec. 10.

The term ‘agricultural commodity’ as used in this Act means any such commodity and any regional or market classification, type, or grade thereof.

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“Sec. 11.

All funds available for carrying out this Act shall be available for allotment to the bureaus and offices of the Department of Agriculture and for transfer to such other agencies of the Federal or State Governments as the Secretary may request to cooperate or assist in carrying out this Act.

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“Sec. 12.

Whenever the Secretary finds that the exercise of the

Use of funds for expansion of markets, etc.

Ante, p. 1148.

powers conferred in this section will tend to carry out the purpose specified in clause (5) of section 7 (a), or will tend to provide for and maintain a continuous and stable supply of agricultural commodities adequate to meet consumer demand at prices fair to both producers and consumers, or both, he shall use such part as he deems necessary of the sums appropriated to carry out this Act for the expansion of domestic and foreign markets or for seeking new or additional markets for agricultural commodities or the products thereof or for the removal or disposition of surpluses of such commodities or the products thereof.

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“Sec. 13.

Notwithstanding the foregoing provisions of this Act,

Agricultural Adjustment Administration, execution of powers by.

the Secretary is authorized and directed to provide for the execution by the Agricultural Adjustment Administration of such powers conferred upon him under sections 7 to 14, inclusive, of this Act as he deems may be appropriately exercised by such Administration, and for such purposes the provisions of law applicable to the appointment and compensation of persons employed by the Agricultural Adjustment Administration shall apply.

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“Sec. 14.

The facts constituting the bases for any payment or

Bases for payments; review.

grant or the amount thereof authorized to be made under section 7 or 8 hereof, when officially determined in conformity with rules or regulations prescribed by the Secretary of Agriculture, shall be reviewable only by the Secretary of Agriculture.

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“Sec. 15.

To enable the Secretary of Agriculture to carry out the

Appropriations authorized.

Post, p. 1183.

purposes of sections 7 and 8 there is hereby authorized to be appropriated for any fiscal year not exceeding $500,000,000.

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“Sec. 16.

The obligations incurred for the purpose of carrying out,

Limitation on Incurred obligations.

for any calendar year, the provisions of sections 7 to 14, inclusive, of this Act shall not exceed $500,000,000.

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“Sec. 17.

(a)(a)

This Act shall apply to the United States, the Territories

Application of Act.

of Alaska and Hawaii, and the possession of Puerto Rico, and as used in this Act, the term ‘State’ includes Alaska, Hawaii, and Puerto Rico.

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“(b)“(b)

This Act may be cited as the ‘Soil Conservation and Domestic

Citation of title.

Allotment Act’.

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Sec. 2.

Section 32 of the Act to amend the Agricultural Adjustment

Agricultural Adjustment Act, amendment.

Ante, p. 774.

Reestablishing farmers’ purchasing power.

Act, and for other purposes, approved August 24, 1935, is amended by striking out clause (3) and inserting in lieu thereof, “(3) reestablish farmers’ purchasing power by making payments in connection with the normal production of any agricultural commodity for domestic consumption. Determinations by the Secretary as to what constitutes

Finality of decisions.

diversion and what constitutes normal channels of trade and commerce and what constitutes normal production for domestic consumption shall be final.” and by striking out that part of the last sentence thereof which precedes the second proviso and inserting in lieu thereof: “The sums appropriated under this section shall be

Expenditures.

expended for such one or more of the above-specified purposes, and at such times, in such manner, and in such amounts as the Secretary of Agriculture finds will effectuate substantial accomplishment of any one or more of the purposes of this section:”.

Sec. 3.

The unexpended balance of the funds appropriated by the

Dairy and beef cattle industries, relief.

Authorizations extended.

Vol. 48, pp. 805, 528.

U. S. C., p. 161; Supp. I, p. 26.

second paragraph of Public Resolution Numbered 27, Seventy-third Congress, approved May 25, 1934, to carry out section 2 and section 6 of the Act entitled “An Act to amend the Agricultural Adjustment Act so as to include cattle and other products as basic agricultural commodities, and for other purposes”, approved April 7, 1934, and the unexpended balance of the funds appropriated or reappropriated

Ante, p. 775.

by section 37 of Public Act Numbered 320, Seventy-fourth Congress, entitled “An Act to amend the Agricultural Adjustment Act, and for other purposes”, is authorized to be made available for the purposes enumerated in said Acts until June 30, 1937. The authorization, which is limited to June 30, 1936, contained in section 37 of Public Act Numbered 320, Seventy-fourth Congress, is likewise extended so that the funds therein authorized are authorized to be made available until June 30, 1937.

Sec. 4.

The sum of $2,000,000 of the unobligated balance of the appropriation for relief purposes contained in the Emergency Relief Appropriation Act of 1935, approved April 8, 1935, is hereby made available to the Secretary of Agriculture for allocation and payment to the States in the Southern Great Plains area, or to farmers therein, for wind erosion control, under plans to be approved by the Secretary of Agriculture.

Sec. 5.

Section 22 of the Agricultural Adjustment Act, as amended, is amended by inserting after the words “this title” wherever they appear the following: “or the Soil Conservation and Domestic Allotment Act, as amended”; and by striking out the words “an adjustment” wherever they appear and inserting in lieu thereof the word “any”.