§ 1308a. Cost reduction options

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1985

   Food Security Act of 1985

   Pub. L. 99–198 title X § 1009 · 99 Stat. 1354

   Enacted · 7 U.S.C. § 1308a

   Pub. L. 99–198, title X, § 1009, Dec. 23, 1985, 99 Stat. 1453

   Source evidence

   Code source credit
   Pub. L. 99–198, title X, § 1009, Dec. 23, 1985, 99 Stat. 1453

   Enacted provision · exact public law section
   Sec. 1009. cost reduction options (a) Notwithstanding any other provision of law, whenever 7 USC 1308a. the Secretary of Agriculture determines that an action authorized under subsection (c), (d), or (e) will reduce the total of the direct and indirect costs to the Federal Government of a commodity program administered by the Secretary without adversely affecting income to small- and medium-sized producers participating in such program, the Secretary shall take such action with respect to the commodity program involved. (b) In the announcement of the specific provisions of any commodity Contract. program administered by the Secretary of Agriculture, the Secretary shall include a statement setting forth which, if any, of the actions are to be initially included in the program, and a statement that the Secretary reserves the right to initiate at a later date any action not previously included but authorized by this section, including the right to reopen and change a contract entered into by a producer under the program if the producer voluntarily agrees to the change. (c) When a nonrecourse loan program is in effect for a crop of a Loans. commodity, the Secretary may enter the commercial market to purchase such commodity if the Secretary determines that the cost of such purchases plus appropriate carrying charges will probably be less than the comparable cost of later acquiring the commodity through defaults on nonrecourse loans under the program. (d) When the domestic market price of a commodity for which a Loans. nonrecourse loan program is in effect is insufficient to cover the principal and accumulated interest on a loan made under such program, thereby encouraging default by a producer, the Secretary may provide for settlement of such loan and redemption by the producer of the commodity securing such loan for less than the total of the principal and all interest accumulated thereon if the Secretary determines that such reduction in the settlement price will yield savings to the Federal Government due to— (1) receipt by the Federal Government of a portion rather than none of the accumulated interest; (2) avoidance of default; or (3) elimination of storage, handling, and carrying charges on Prohibition. the forfeited commodity, but the Secretary may not reduce the settlement price to less than the principal due on the loan. (e) When a production control or loan program is in effect for a crop of a major agricultural commodity, the Secretary may at any time prior to harvest reopen the program to participating producers for the purpose of accepting bids from producers for the conversion of acreage planted to such crop to diverted acres in return for payment in kind from Commodity Credit Corporation surplus stocks of the commodity to which the acreage was planted, if the Secretary determines that (1) changes in domestic or world supply or demand conditions have substantially changed after announcement of the program for that crop, and (2) without action to further adjust production, the Federal Government and producers will be faced with a burdensome and costly surplus. Such payments in kind shall not be included within the payment limitation of $50,000 per person established under section 1001 of this Act, but shall be limited to a total $20,000 per year per producer for any one commodity. (f) The authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary under any other provision of law.

2. 1989

   Pub. L. 101–134 § 3 · 103 Stat. 780

   1. Inserted · 7 U.S.C. § 1308a(d)

      Pub. L. 101–134, in introductory provisions, inserted “(including the program authorized by section 1445e of this title)” after “nonrecourse loan program”

   2. Substituted · 7 U.S.C. § 1308a(d)

      Pub. L. 101–134, in introductory provisions, substituted “benefits” for “savings”

   3. Struck · 7 U.S.C. § 1308a(d)

      Pub. L. 101–134, in introductory provisions, struck out concluding provisions which read as follows: “but the Secretary may not reduce the settlement price to less than the principal due on the loan”

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 101–134, in introductory provisions, inserted “(including the program authorized by section 1445e of this title)” after “nonrecourse loan program” and substituted “benefits” for “savings” and struck out concluding provisions which read as follows: “but the Secretary may not reduce the settlement price to less than the principal due on the loan”.

   Enacted provision · exact public law section
   SEC. 3. COST REDUCTION OPTIONS. Section 1009(d) of the Food Security Act of 1985 (7 U.S.C. 1308a(d)) is amended— (1) by inserting after “nonrecourse loan program” the following “(including the program authorized by section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e))”; (2) by striking “savings” and inserting “benefits”; and (3) by striking “forfeited commodity,” and all that follows through the period at the end of the sentence and inserting “forfeited commodity.”

3. 2008

   Food, Conservation, and Energy Act of 2008

   Pub. L. 110–246 § 1603(g)(1) · 122 Stat. 1651

   Struck · 7 U.S.C. § 1308a(e)

   Pub. L. 110–246, § 1603(g)(1), struck out “of $50,000” before “per person” in second sentence

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 110–246, § 1603(g)(1), struck out “of $50,000” before “per person” in second sentence.

   Enacted provision · exact public law section
   (1) Section 1009(e) of the Food Security Act of 1985 (7 U.S.C. 1308a(e)) is amended in the second sentence by striking “of $50,000”.

   Effective date note
   Amendment 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 an Effective Date note under section 8701 of this title.

5 of 5 references resolved to an enrolled provision