Public Law 95-113 (National Agricultural Research, Extension, and Teaching Policy Act of 1977, as amended)

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Public Law 95-113 (National Agricultural Research, Extension, and Teaching Policy Act of 1977, as amended)

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PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 913

Public Law 95-113
95th Congress

An Act
To ~ ~ r o r i dprice
e
and incume protection for farmers and assure consumers of an
abunclance of food and fiher a t reasonable prices, and f o r other purposes.

BL' if enirctecl b y flte Rc,lratc U I I 1Zou.r~
~
of Repiasc~tzfaficesof tile
ii'nifed i?'fufe.s of dmt!r.ica i~ G o t ~ g ~ ~.ysvn~blecl>
~~ss
That this ,let, with
the following table of c o ~ ~ t c n tmay
s , be cited as the '.Food and Agriculture Act of 1977".

TABLEOF COSTESTS

TITLE I-PA\T31EST LIJIITSTIOS FOR WHEBT, FEED GRAINS,
t.'PLA?;D COTTOX, AND RICE
Sec, 101.
SPC.102.
Sec. 103.
Ser. IIH.

Paynlerit limitation.
Faniilp farms.
Studs on prohibiting l~aymentsto certain legal entities.
Conf<~rming
amendment.
TITLE 11-DAIRY

ASD BEEKEEPER PROGRAMS

Sec. 901. D a i r ~base plans.
Sec. 902. Producer handlers.
Sec. 203. Milk price support.
Sec. 904. Transfer of dairy products to the military and veterans hospitals.
Sec. 50.5. Dairy indemnity program.
Src. 2M.Standard of quality for ice cream.
See 207. Beekeeper indemnity program.
T I T L E 111-TOOL

.4ND MOHAIR

Sec. 301. Declaration of policy.
Sec. 302. Extension of Act ; support price.
TITLE IT-WHEAT
Sec. 401.
Sec. 40'2.
Sec. 403.
Sec. 404.
Sec. 40:.
Src. 406.
Sec. 407.
Sec. 408.

Loan rates and target prices for the 1977 through 1981 crops.
Prograni acreages and pagment yields : set-aside program.
Konapplicabilitp of certificate requirements.
Suspension of ~narketingquotas and producer certificate provisions.
Finality of determinations.
Suspension of quota prorisions.
Application of terms in the .4gricultural Act of 1949.
Cornniodity Credit Corporation sales price restrictions for wheat and
feed grains.
See. 409. xonap~)licabilit.r of section 107 of the Agricultural Act of 1949 to t h e
1977 through 1081 crops of wheat.
Src.410. Snnapplicabilitr of section 107 of the Agricultural Act of 1949, a s
amended. to the 1077 crop of wheat.
TITLE V-FEED

GRAINS

Sec. 501. Loan rates and target prices for the 1977 through 1981 crops.
Sec. 509. Program acreages and payment yields ; set-aside program.
Sec. 503. Sonapplicability of section 105 of the Agricultural Act of 1949 to the
1977 through 1981 crops of feed grains.
Sec. 504. Nonapplicability of section 103 of the Agricultural Act of 1949, a s
amended, to the 1977 crop of feed grains.
T I T L E TI-UPLAND

COTTON

Sec. 601. Base acreage allotments; suspension of marketing quotas, and related
provisions.
Sec. 602. Cotton production incentives; loan r a t e and target price; set-aside
program.

Sef't 293
[s.2751

Food and
Agriculture
of 1977.
7 C'SC 1281 note.

PUBLIC LAW 95-113-SEPT.

9 1 STAT. 914

TITLE 1'1-UPLAND
Sec. 603.
Sec. 604.
Sec. 606.
Sec. 606.
Sec. 607.

29, 1977

COTTON-Continued

Commodity Credit Corporation sales price restrictions.
hfiscellaneous cotton provisions.
Skiprow practices.
Preliminary allotments for 1982 crop of upland cotton.
Extra long staple cotton.
TITLE VII-RICE

Sec. 701. National acreage allotmeut and allocation.
Sec. 702. Loan rates, target prices, and set-aside for the 1978 through 1981 crops.
Sec. 703. Suspension of marketing quotas and other provisions.
Sec. 704. Definition of cooperator.
Sec. 705. Conforming amendment.
TITLE VIII-PEANUTS
Sec. 801. Annual marketing quota and State acreage allotment.
Sec. 802. Kational acreage allotment ; national poundage quota ; farm poundage
quota ; and definitions.
Sec. 803. Sale, lease, and transfer of acreage allotments.
Sec. 804. Blarlieting penalties ; disposition of additional peanuts.
Src. 805. Heports and records.
See. 806. Preservation of unused allotments.
Sec. 807. Price support program.
TITLE IX-SOYBEANS

AND SUGAR

Sec. 901. Soybean price support.
Sec. 902. Sugar price support.
TITLE X-AIISCELLANEOTIS
Sec.
Sec.
Sec.
See.
Sec.
See.

1001.
100'2.
1003.
1004.
1005.
1006.

Sec.
Sec.
Sec.
Sec.
Sec.

1101. Producer storage program for wheat and feed grains.
1102. International emergency food reserve.
1103. Disaster reserve.
1104. Farm storage facility loans.
1105. Emergency feed program.

Set-aside of normally planted acreage.
American agriculture protection program.
Budget amendment.
Special grazing and hay program.
Daily release of reports of export sales of agricultural commodities.
Filberts.
TITLE XI-GRAIN

TITLE XII-PUBLIC

RESERVES

LAW 480

Sec. 1201. Authority for the Commodity Credit Corporation to act as purchasing
or s h i ~ p i n g
agent under title I.
Sec. 1202. Title I sales procedures.
Sec. 1208. Increased appropriation limit for title 11.
Rec. 1204. Arailability of commodities.
See. 1205. Financing the sale of food and fiber commodities.
Sec. 1206. Valuation of commodities acquired through price support programs.
See. 1207. Revised regulations governing operations ; bagged commodities.
Sec. 1208. Extension of the program.
Sec. 1209. Use of nonprice-supported commodities under Public Law 480.
Sec. 1210. Special task force on the operation of Public Law 480.
TITLE XIII-FOOD

STAMP AND COMMODITY DISTRIBUTION
PROGRAMS

Sec. 130i. Food Stamp Act of 1964 amendments.
see. 1302. Conforming amendments.
Sec. 1303. Implementation of the Food Stamp Act of 1977.
See. 1304. Commodity distribution programs.

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 915

TABLE
OF COSTESTS-Cjontillued
r ,

1 I 1 LE XIV-NATION,II,
AGR1CI:LTURAL RESEARCH. ESTRSSIOS.
. i S D TEAGHISG POLICY ACT O F 1977

Sec8. 1401. Short title.
SITBT~TI.E
.\-E'IXDINGS, PCRPOSES,A N D DEFINITIOSS
Sec. 1402. Findings.
Sec. 1403. L'orposes.
Ser. 1404. Definitions.
A N D PLANXIKG
OF ~ ~ G R I C U L T U R A RESEARCH.
I.
SC~BTITLE
~<-COORI)ISATIOIV
ESTEXSIOX, A N D TEACHING

Sec.
Sec.
Sec.
Sec.
Sec.
Sec..
SIX.
Sec.
Sec.

1405. Resl)oi~sibilitiesof t h e Secretary a n d Department of Agriculture.
1406. Federal Subconin~itteeon Food and Renewable Resources.
1407. Joint Cuuncil on Food and Agricultural Sciences.
1408. Sational Agric.ultura1 Research and Extension Users Advisory Board.
1409. Existing research programs.
34111 Secretary's report.

141 1. Libraries and i ~ i f o r ~ n a t i onetwork.
n
1412. Support for the Joint Council and Advisors Hoard.
1413. General provisions.

SUBTITLEC-AGRICULTURAL
RESEARCH
A N D EDUCATION
GRANTSA S D
FELLOWSRIPS
Sec. 1414. Proaranl of co~nl)etitive,special, and facilities grants for agricultural
research.
See. 1415. (:rants t o establish or expand schools of veterinary medicine.
to the Research Facilities Act of 196.3.
Sec. 1416. A~i~endnlents
Sec. 1417. Grants and fellowships for food and agricultural sciences education.
Sec. 1418. National agricultural research award.
See. 1419. Grants for research on the production and marketing of alcohols and
industrial hydrocarbons from agricultural commodities and forest
products, and agricultural chemicals and other products from coal
derivatives.
Sec. lT20. l'ilot projects for the production and marketing of industrial hydrocarbons and alcohols from agricultural commodities and forest
products.
A N D EXTENSION
SI.BT~TLE
D-NATIOXAL FOODAND HUMANNUTRITIONRESEARCH
PROGRAM

See.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

14'21.
1422.
1423.
1424.
1426.
1426.
1427.
1g28.

Sec.
Sec.
See.
Sec.
Sec.

1429. Purpose.
1430. Definitions.
1431. Authorization to the Secretary of Agriculture.
1435. Animal Health Science Research Advisory Board.
1433. Appropriations
for continuing animal health and disease research
.. .
programs.
1434. Appropriations for research on national or regional problems.
1435. Availability of appropriated funds.
1436. Withholding of appropriated funds.
1437. Reauirements for use of funds.
1438. ~ a i c h i n gfunds.
1439. Allocations under this subtitle not substitutions.

Findi~>gs
and declarations.
Duties of the Secretary of Agriculture.
Research by the Department of Agriculture.
Study.
Nutrition education program.
Nutrition education materials.
Report to Congress.
Nutritional status monitoring.
SUBTITLEE-ANIMAL HEALTH AND DISE~SERESEARCH

See.
Sec.
Sec.
Snc.
see.
Sec.

PUBLIC LAW 95-113-SEPT.

91 STAT. 916

29, 1977

TITLE XIV-NATIONAL AGRICULTURAL RESEARCH, EXTENSION,
AXD TE.4CHING POLICY ACT OF 1977-Continued
SUBTITLEF-SMALL FARM
RESEARCHAND EXTENSION
Sec.
Sec.
Sec.
See.

1440.
1441.
1442.
1443.

Small farm research and extension programs.
Program moneys.
Definition of small farmer.
Reports.

Sec. 1444. Extension a t 1890 land-grant colleges, including Tuskegee Institute.
Sec. 1445. Sgricultural research a t 1890 land-grant colleges, including Tuskegee
Institute.
SCBTITLEH-SOLAR ENERGYRESEARCHAND DEVELOPMENT
PROGRAMS

PART I-EXISTING

Sec. 1146. Agricultural research.
Sec. 1447. Agricultural extension.
Sec. 1448. Rural development.
PART 2-COMPETITIVE

G R A N T S PROGRAM

Sec. 1449. Competitive grants program.
PART 9-INFORMATION

SYSTEM AND ADVISORY COMMITTEE

Sec. 1450. Solar energy research information system.
Sec. 1451. .%d\-isors Committee.
F A R M S AWD DEMONSTRATON PROJECTS

PART 4-YODEL

Sec. 1452. Model farms.
Sec. 1453. Demonstration projects.
Sec. 1454. Authorization for appropriations.
PART .?--REGIONAL

SOLAR ENERGY

RESEARCH

AND DEVELOPMENT CENTERS

Sec. 1455. Regional solar energy research and development centers.
PART 6-APPROPRIATIONS

AND

DEFINITIONS

Sec. 1456. Authorization for appropriations.
Sec. 1457. Definitions.
SUBTITLEI-INTERNATIOWAL

AGRICULTURAL
RESEARCHAND EXTENSION

Sec. 1458. International agricultural research and extension.
Sec. 1459. Evaluation of the Extension Service and the Cooperative Extension
Services.
Sec. 1460. Weather and water allocation study.
Sec. 1461. Organic farming study.
Sec. 1462. Agricultural research facilities study.
Sec. 1463. Authorization for appropriations for existing and certain new agricultural research programs.
Sec. 1464. Authorization for appropriations for extension education.
See. 1465. Extension programs for Guam and the Virgin Islands of the United
States.
See. 1466. Amendments to the Hatch Act.
Sec. 1467. Payment of funds.
Sec. 1468. Withholding of funds.
Sec. 1469. Auditing, reporting, bookkeeping, and administrative requirements.
Sec. 1470. Rules and regulations.
TITLE XV-RURAL

DEVELOPMENT AND CONSERVATION

See. 1501. Agricultural conservation program.
Sec. 1503. Inclusion of aquaculture and human nutrition among the basic functions of the Department of Agriculture.

PUBLIC LAW 95-113-SEPT.

TIT1,F; XV-RURAL

29, 1977

91 STAT. 917

DEF'ELOPNENT AKD COKSERVATION-Continued

Aquacultare loan authority.
Disposition of excess Federal property to rural fire forces.
Hural 'on~rnunity fire protection program.
Congressional approval of watershed protection and flood prevention
projects.
Sec. 1507. Congressional al)proval of resource coriservation and development
project loans.
Sec. 1508. Watershed loan authority.
Sec. 1509. Multiyear set-aside.
See. 1510. Authority to make deferred loan payments.
Sec. 1511. Critical lands resource conservation program.
Sec.
Sec.
Sec.
See.

1503.
1504.
1505.
1506.

TITIJE XVI-FEDERAL
Sec.
Sec.
Sec.
Sec.
Sec.
See.
Sec.
Sec.

GRAIN IKSPECTION

1601. Records.
1602. Snpervision fees.
1603. Establishment of temporary advisory committee.
1601. Technical amendments.
1605. Studies of grain inspection and weighing; effective date.
1606. htiscellaneous amendments.
1607. Conforming amendments.
1608. Retention of designations following convictions.
AND WHEAT FOODS RESEARCH AND
TIT1,E XVII-WHEAT
SUTRITIOS EDLlCATIOK ACT

Sec.
See.
Sec.
See.
Per.
See.
Sec.
Sec.
Ser.
Sec.
Sec.
Sec.
Sea.

1701. Short title.
1702. Findings and declaration of policy.
1703. Definitions.
1704. Issuance of orders.
1705. Permissive terms in orders.
1706. Required terms in orders.
1707. Exemption.
1708. Requirement of referendum.
1709. Refund.
1710. Petition and review.
1711. Enforcement.
1712. Suspension and termination of orders.
1713. Investigations : power to suhpena and take oaths and affirmations :
aid of courts.
See. 1714. Certification of organizations.
Sec. 1715. Effect on other programs.
Sec. 1716. Regulations.
Sec. 1717. Provisions applicable to amendments.
See. 1718. Separability.
Sec. 1719. Authorization.

Sec.
Sec.
Sec.
Sec.
Sec.
See.
Sec.
Sec.
Sec.

T1TI.E XTIII-DEPARTMEKT O F AGRICULTURE ADVISORY
COMMITTEES
1801. Purposes.
1802. Definitions.
1803. Establishment of advisory committees.
1804. Additional duties of the Secretary.
1805. Membership on advisory committees.
1806 Advisory rommittee charter requirements-operating costs.
1807. Annual report.
1808. Budget prohibitions.
1809. Termination of advisory committees.
TITIJE XIX-EFFECTIVE

DATE

Ses. 1901. Effective date.

TITTiE I-PAYMENT LIBfITATION FOR WHEAT, FEED
GRAINS, UPLAND COTTON, AND RICE
PAPXTENT LIMITATION

SEC.101. Notvithstanding any other provision of law-

(1) The total amount of payments which a person shall be entitled
to receive under-

usc 1308.

91 STAT. 918
7 USC 1421 note.
7 USC 1281.

"Payments."

"Person."
Rules and
regulations.

Post, p. 919.

PUBLIC LAW 95-113-SEPT.

29, 1977

(A) one o r more of the annual programs established under the
Agricultural Act of 1949, as amended, and the Agricultural
ddjnstment Act of 1938, a s amended, for wheat, feed gra.ins, :lnd
upland cotton shall not exceed $40,000 for the 1978 crop and
$45,000 for the 1979 crop :
( B ) the annual rice program established under such Acts shall
not exceed $52;250 for the 1978 crop and $50,000 for the 1979
crop: and
(C) one or illore of the annual programs established under such
Acts for wheat, feed grains, upland cotton, and rice shall not
esceed $50,000 for each of the 1980 and 1981 crops.
(2) The term "payments" as used in this section shall not include
loans or purchases. or any part of any payment which is determined
by the Secretary of Agriculture to represent compensation for disaster
loss or resource adjustment (excluding land diversion payments) or
public access for recreation.
(3) I f the Secretary determines that the total amount of pny~nelits
ivhich will I)e earned by any person nntler the program in effect for
any crop will be reduced under this section, the set-aside acreage for
the farm or farnis on which such person will be sharing in payments
earned r~ndersuch program shall he reduced to such extent and in such
manner as the Secretary determines will be fair and reasonable in
relation to tlie amount of the payment rednction.
( 3 ) The Secretary shall issue regulations defining the tern1 "person"
:~nciprescribing such rules as the Secretary determines nec,essary to
assure a fair : L I ~1.easo11ableapplication of such limitation: P r o c i d ~ d .
Tliat the pr,ovisions of this section which limit paymcnts to any person shaI1 not be applicable to lands owned by St,ates, political subdivisions, or agencies thereof, so long as such lands are farmed prinlarilg
in the, tlirect, furtlierance of a pablic fr~nction.as determined by thc
Secretary. The rules for determining whether corporations ant1 their
stockholders may be considered as separate persons shall be in accordance 11-it11 the regulations issued by the Secretary 011 December 18,
1970, 11nde1.section 101 of the A g r i c ~ ~ l t u r Act
a l of 1970.
FAMILY FARMS

7 USC 2266.

SEC.10". ( a ) Congress hereby specifically reaffirms the historical
policy of the United States to foster and c.nc0urag.e the family farm
s;vstenl of agriculture ill this count,ry. Congress f i r ~ r ~ lbelieves
y
that
the maintc>nanceof the family farm system of agriculture is essential
to the sorial well-being of the Nation and the competitive prodnction
of adeqn:ite supplies of food and fiber. Congress further believes that
any significant expansion of nonfaniily owned large-scale corporate
farming enterprises will be detrimental to the national welfare. It is
neither the policy nor the intent of Congress that agricultural and
agriculture-related programs be administered exclusively for family
farm operations, but i t is the policy and the ex less intent of Congress
t.hat, no sndl program be administered in a anner that will placc.
the family farm o p e r ~ t i o na t an unfair economic disadvantage.
( h ) Tn orrler that Congress may be better informcd regarding the
s t a t l ~ sof tlie family farm system of agriculture in the United States,
the Secretary of ;lpricnltnre shall submit to Congress, not later than
July 1 of each year, a written report contai~lingcurrent information
on trends in family farm operations and conlprellensive national and
State-by-State data on nonfamily farm operations in the United
States. The Secretary shall also include in each such report (1) information on how esisting agricultural and agriculture-related programs

Annual report to
Congress.
Contents.

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 919

are being administered to enliance and strengthen the fanlily far111 system of agriculture in the United States, ( 8 ) a n assessment of how Federal laws may encourage tlie growth of non-family f a r m opcratiolis.
and (3) such other information as the Secr8eta1.y deem5 appropriate or
determines would aid C o n g r e s ~irl protecting, preserving, ant1 str~lngt11ening the family f a r m systern of agricl~lturei n the United States.

SEC. 103. I n furtherance of the policy .-tatrti ill section 102 of tllis Report to
Act, the Secretary of Aigriculturesliall conduct it >tildy and !.epol.t to Congress.
(longress no later than January 1,1979, on the impact on par.t~cip~tioll7 USC 2266 note.
in the wheat, feed grain, cotton. and rice programs and the protluction
of such commodities in carlying out a statutory provision sl~clias that
included in the Food arid Agrictlltlll~Act of 1977. as ptlsse(1 by tlie
Senate on May 21,1977.1)rohibitinp the making of p:lynients to certain
corporations and other entities tinder s ~ ~ cprograms.
li
'I'he stlltly shall.
in :~ddition,assess the impact of extending the prohibition against
making commodity program payments to tenants on land omrnrcl by
such corporations a n d other entities \vhicli would be exclutled from
payments under such x provision. The s t i ~ d ysllall utilize. to tlie greatest e x t ~ n possible,
t
tlic information on commodity progranl payliients
compiled by the Llgrictlltural Stabilization ant1 <'onservatioll Service
in determining payment eligibility anclrr section 10.1 of the .io.l.ictilt w a l Act of 1970, as ariwnded. and section 101 of this -%ct. 7'11e%ec.~~e-1nf.a
tary may collect such otlier infol.mation as may be 1lecessar.y to
l identify the
determine the inlpact of sue-11 a statutory provision a ~ l t to
number a n d characteristics of p r o d ~ i c r that
r ~ 1vo111dbe :~ffect~rl
by sl~cli
13 provision.
.\B1P.X1)31Ex'l'
(.O3*E7~)RA1I%-G
Payments,
SEC.
104. Section 101 (1)of the Agrict11ti11-alAct of 1970. a? a~ne~i(le(l.
limitation.
is amended to read as follo~vs:
"(1) The total amount of payments wllicli a person shall be.entitled 7 USC 1307to receive under one o r more of the annual yrogralns establlslletl by
titles IV. V, and V I of this Art for the 1974 tl~rougll1976 crops of the
coniriiodities and bv titles TV and V of the Food and Agric-ulture Act
of 1977 and tit.les IV, V, a n d V I of this
f o r the 1977 crop of tlie
comnlodities shall not exceed $20.000.".

TITLE 11-DAIRY

A N D BEEKEEPER PROGR,SSPS
DAIRY BASF: PL.\SS

SEC.201. Section 201 (e) of the Agricult~iral. k t of 1970. as a~nendecl. 7 USC 6 0 8 note.
~
is amended to read as follows :
"(e) T h e provisions of this section shall not be effective after
December 31,1981, except with respect to order-s providing f o r class I
base plans issued prior to such. date. but i n no event shall any orcle~.so
issued extend 01. he effective beyonti Deceniber. 31, 1981.".
PRODUCER IT.\xDI.ERS

SEC.202. The legal status of prodacer handlers of 111i1kunder the 7 USC 608c note.
provisions of t,he dpricultur~ala4djustri~entAct, as reenacted ant1
amended by t h e Agricultaral bfarketing Apreemcnt -4ct of 1937. ;IS
amended, shall be the same sttbseqr~entto the adoption of tlie a~nentl- 7 USC 6 0 1 note.
~ i i e n tmade by the Food nnd Apric11lt111-e
of 1977 a s it \\-as prior
t.hereto.

91 STAT. 920

PUBLIC LAW 95-1 13-SEPT. 29, 1977
MILK PRICE SUPPORT

7 U s c 1446.
Post, p. 949.

Adjustments

Announcement.

SEC.203. Section 201 of the Agricultural Act of 1949, as amended,
is amended by(1) striking out the second sent,ence in subsection (c) and
inserting in lieu thereof a new sentence as follows :"Notwithstanding the foregoing, effective for the period beginnin on the effective date of the Food and Agriculture Act of 1 9 4 and ending
March 31, 1979, the price of milk shall be supported a t not less
than 80 per centurn of the parity price tllerefor."; and
(2) adding a t the end thereof a new subsection ( d ) as follows:
" ( d ) Effective for the period beginning on the effective date of the
Food and Agriculture Act of 1977 and ending hfarch 31, 1981, the
support price of milk shall be adjusted by the Secretary a t the beginning of each semiannual period after the beginning of the marketing
year to reflect any estimated change in the parity index during such
semiannual period. The Secretary is authorized to adjust the support
price of milk at the beginning of each remaining quarter in the marketing year to reflect any substantial change in the parity index during
such quarterly period. Any adjustment under this subsection shall be
announced by the Secretary not more than thirty days prior to the
beginning of the period to ~ h i c iht is applicable.".
TRANSFER O F DAIRY PRODUCTS TO THE MILITARY AND VETERANS HOSPITALS

usc 1446a.

SEC.204. Section 202 of the Agricultural Act of 1949, as amended,
is amended by strikin out ''1977" in subsections (a) and (b) and
inserting in lieu thereo "1981".

DAIRY INDEMNITY PROGRAM

7 USC 450j.

7 USC 4501.

SEC.205. The Act of August 13, 1968 (82 Stat.. 750, as amended; 7
U.S.C. 450 j, k, and I), is amended by(1) inserting after the first sentence a new sentence as follows:
"The Secretary is also authorized to make indemnity payments
for milk, or cows producing such milk. a t a fair market value to
any dairy farmer who is directed to remove his milk from commercial markets because of (1) the presence of products of
nuclear radiation or fallout if such contamination is not due to the
fault of the farmer, or (2) residues of chemicals o r toxic substances not included under the first sentence of this section if such
chenlicals o r toxic substances were not used in a manner contrary
to applicable regulations or labeling .instru,ctionsprovided at the
time of use and the contamination is not due to the fault of the
farmer: Provided, That no indemnity payment may be made for
contamination resulting from such residues of chemicals or toxic
substances if the Secretary determines within thirty days after
the date of application for payment that other legal recourse is
available to the farmer."; and
(2) striking out "June 30, 1977" in section 3 and inserting in
lieu thereof "September 30,1981".
STANDARD O F QUALITY FOR ICE CREAM

Regulation.
7 USC 1622.

SEC.206. Sect,ion 203(c) of the Agricultural Marketing Act of 1946
is amended by adding at the end thereof the following: "Within thirty
days after the enactment of the Food and Agriculture,Act of 1977, the
Secretary shall by regulat,ion adopt a standard of quality for ice cream
which shall provide that ice cream shall contain a t least 1.6 pounds of

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 921

total solids to the gallon, weigh not. less than 4.5 pounds to the gallon
nnd contain not less than 20 percent total milk solids, constituted of
not less than 10 percent milkfat. I n no case shall the content of milk
$olids not fat be less than 6 percent. T h e y shall not, by weight, be
more than 25 percent of the milk solids not fat. Only those products
15-hich meet the standard issued by the Secretary may bear a symbol
thereon indicating t,hat they meet the Department of Agriculture
standard for 'ice cream'.".
BZEILEEPER I S D E M S ITT PROGR%M

SEC.207. Section 804 ( f ) of the Sgricultural Act of 1970, as amended, 7 USC 13% note.
is amended by striking out "December 31, 1977" and inserting in lieu
thereof "September 30, 1981".

TITLE 111-WOOL

AFD MOHAIR

DECLARATIOS O F POLICY

SEC.301. Section 702 of the Kational Wool Act of 1954, as amended, 7 USC 1781.
is amended to read as follows :
"SEC.70.2. It is hereby recognized that wool is an essential, strategic,
and energy-efficient commodity which is not produced in the United
States in sufficient quantities and grades to meet the donlestic needs;
and that the desired don~esticproduction of xool is impaired by predatory animals and by the depressing effects of wide ffuctuations in
the price of wool in the world markets. I t is hereby declared to be
the policy of Congress, as a measure of national security and t o promote the general economic welfare, a positive balance of trade, and
the efficient use of the Yation's resources, to encourage the continued
domestic production of v~oolat prices fair to both producers and consumers in a manner which will assure a viable domestic wool industry
in the future.".
EXTESSION O F ACT; SGPPORT PRICE
SEC.302. Section 703 of the National T\'ool Act of 1954, as amended, 7 USC 1782.
is amended by(1) striking out "1977" in subsection ( a ) and inserting in lieu
thereof "1981";
(2) striking out "1917" in subsection (b) and inserting in lieu
thereof "1976":
(3) insert& imnlediately before the period a t the end of
subsection ( b ) a new proviso as follows: ": Provided further,
T h a t for the marketing years beginning January 1, 1977. and
ending December 31, 1981, the support price for shorn wool shall
be 85 per centum (rounded t o the nearest full cent) of the amount
calculated according to the foregoing formula"; and
(4) striking out "1977" in subsection (c) and inserting in lieu
thereof "1916".
TITLE IV-WHEAT
LOAN RATES AND TARGET PRICES FOR THE 1 9 7 7 T H R O U G H 1 9 8 1 CROPS

SEC.401. Effective only for the 1977 through 1981 crops of wheat,
the Agricultural Act of 1949, as amended, is amended t,o add subsections (a) through (c) to new section 107A as follows :
"SEC.IOTA. Notwitllstanding any other provision of lam-

91 STAT. 922
Loans and
purchases.

Reduction.

Payments.
Computation.

Established
prices.

PUBLIC LAW 95-113-SEPT.

29, 1977

"(a) The Secretary sllall make available to producers loans and
purchases at such level, not less than $2.25 per bushel for the 1977 crop
of wheat and $2.35 per bushel for each of the 1978 through 1981 crops
of wheat, nor, in the case of each of the 1977 through 1981 crops, in
excess of 100 per centum of parity, as the Secretary deterni~neswill
maintain its competitive relationship to other grains in domestic and
export markets: P~~ovided,
That if the Secretary determines that the
average price of wheat received by producers in any marketing year
is not more than 105 per centum of the level of loans and purchases for
wheat for such marketing year, the Secretary may reduce the level of
loans and purchases for mheat for the nest marketing year by the
amount the Secretary determines necessary to maintain dornestic and
export markets for grain, except that the level of loans and purchases
shall not be reduced by more than 10 per celltun1 in any year nor below
$2.00 per bushel.
"(b) (1) (A) I n addition, the Secretary shall make available to producers payrnents for each of the 1977 through 1981 crops of wheat in
an amount c o r r ~ p ~ ~as
t e dprovided in this subsection. Payments for the
1977 crop shall be computed by multiplying ( i ) the payment rate, by
(ii) the ~llotmentfor the farm for such crop, by (iii) tlie projected
yield established for the farm for such crop with such adjustments
as the Secretary determines necessary to provide a fair and equitable
yield. Payments for each of the 1978 through 1981 crops shall be computed by multiplying (i) the payment rate, by (ii) the farm program
acreage for the crop, by (iii) the farm program paynient yield for
the crop. I n no event shall payments be made under this paragraph
for any of the 1978 through 1981 crops on a greater acreage than the
acreage actually planted to wheat,.
"(B) The payment rate for mheat shall be the amount by which the
higher of"(i) the national weighted average market price received by
farmers during the first five months of the marketing year for
such crop, as determined by the Secretary, or
"(ii) the loan level determined under subsection (a) of this
section for such crop
is less than the established price per bushel. The established price for
wheat shall be $2.90 per bushel for the 1977 crop and $3.00 per bushel
for the 1978 crop: P~ouided,That for the 1977 crop, the established
price shall be $2.47 per bushel with respect t o any acreage not planted
to wheat within the wheat acreage aallot,ment: P7"ovided further, That
for the 1978 crop, the established price shall be $3.05 per bushel if the
1978 crop of mheat is 1.8 billion bushels or less. For the 1979 crop, t,he
established price shall be $3.00 per bushel adjusted to reflect any change
in (i) the average adjusted cost of production for the two crop years
immediately preceding the 1979 crop year from ( i i ) the average
adjusted cost of procluction for the two crop years immediately preceding the 1978 crop year. For the 1980 and 1981 crops, the established
price shall be the established price for the previous year's crop
adjusted to reflect any change in ( i ) the average adjusted cost of production for the two crop years imn~edintelypreceding the pear for
which the determination is made from (ii) the average adjusted cost,
of product,ion for the two c,rop years ilnnlediately preceding the year
previous to the one for which the determination is made. The adiusted
cost of production for each of such vears shall be determined by the
Secretary on the basis of such information as the Secrefary finds necessary and appropriate for the purpose and shall be lim~tedto ( i ) vari-

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 923

able costs, (ii) machinery ownership costs, and (iii) general farm
overhead costs, allocated to the crops involved on the basis of the proportion of the value of the total production derived from each crop.
"(C) Sutwit~hstandiilgthe foregoing provisions of this sectioll, In Emergency
the event the Secretary adjusts tlie level of loans and purcllases for compensation.
wheat in accordance with the proviso in subsectioi~( a ) of this section,
the. S e c r e t a i ~shall proride emergency compensation by increasing tllc
established price paFments for ~vheatby such amount as t,he Secretary
determines necessary to provide the same total return to proc1uccr.i
as if the acljust~nentin the 1 e ~ eof
l loans and purchases had not been
made : Proricled, That any such increase in established price p a y m c ~ ~ t j
shall not be includecl in the payments subject to liinitation under the
prorisions of section 101 of the Food and ,Igricult~lreAct of 1977.
" (D) The total quantity on 1vhic11 payiilents ~voilld
cther~visebe payable to a producer on a farm for any crop ulider this paragraph &all
be reduced by the quantity on which any disaster paylneni is rnatle tr)
the producer for the crop mnder paragraph (2) of this subsection.
" ( 2 ) (,4) Effective only with respect to the 1978 and 1979 crops of Prevented
wheat, if the Se.cretary determines that tlie producers on a farm are planting disaster
prevented from planting any portion of the acreage intended for whrat payments
to wheat or other nonconserl-ing crops because of drought, floo(1. or
other nat~lralilisastc~r.or other condition b e ~ o n dthe control of the
~)rocli~cers.
the Sec3rrtar.y shnll make a prcve:ited planting disaster pay~ n e n tto the producers on the number of acres so affected but nnt to
exceed the acreage planted to ~iylleatfor harvest (inc'llding any acreage which the producers were prevented from planting to wheat or
other nonconserring crop in lieu of ~vheatbecause of drought, flood,
or other natural disaster. or other condi:ion beyond the control of the
~ ~ r o d u c e r sin) the inlmediately preceding pear. multiplied by 75 per
ceiitum of the farm program payment yield established by the Secretary times a payment rate equal to 331/3 per centum of the c.stab1ished
price per bnsliel for ~vlleat.
"(B) Effective only with respect to the 1978 and 1979 crops of Farm disaster
wheat, if the Secretaiy determines that because of drought, flood, or paymen".
other natural disaster. or other condition beyond the control of tlie
producers, the total quantity of wheat which the p r o d ~ ~ c eare
r s able
to hnrvest on any farm is less than the result of multiplying 60 per
centum of the farm program payment yield established by thc Secrc3tary for such crop by the acreage planted for harvest for such crop, the
Secretary shall make a farm d i ~ a s t e payment
r
to the producers at a rate
equal to 50 per centum of the established price for the crop for the
drficiencv in procluction below 60 per crntnm for the crop.
"(C\ I n the case of the 1977 crop of wheat, disaster payments for Computation.
prevented plantiny shall he compu'ed as provided in section 107 of
this Act. as amended for the 1974 throngh 1977 crops by the Agricnltnre and Consumer Protection Act of 1973, and disaster paymrnts f o r 7 USC 14.4.5a.
low yield shall be compnted in accordance 11-ith the formula provicled
in subparagraph (B) of this paragraph : Proz-ided. That producers
mav elect to receive clisaseer payment!: for low yield conlputed as provided in section 107 of this Act, ns amended for the 1974 through 1977
crops by the Agriculture and Consumer Protect;on Act of 1973 : Provided P ~ r f h ~That
r , no disaster payments for low y i ~ l dmay he made
under this p a r a ~ r n p hprior to October 1.1977.
"(c) The Srcretary shall pro\-ide for the sharing of payments made
under this section for any farm among the producers an the fa1311 on
a fair and equitable basis.".

91 STAT. 924

PUBLIC LAW 95-113-SEPT.

29, 1977

PROGRAlvI AXCEAOES AND PAYBIENT YlELUS j SET-ASIDE PROGRAM

Ante, p. 921.
Proclamation.

Revision.

Adjustment.

Program
factor.

SEG.402. Effect,ive only for the 1978 through 1981 crops of wheat,
the Agricultural A d of 1949, as amended, is amended by adding subsect,ions (d) through (i) to section IOTA to read as follows:
" ( d ) (1) The Secretary shall prtwlainl a national program acreag.
for each of the 1978 through 1981 crops of wheat. The proclamation
shall be made not later than August 15 of each calendar year for the
crop harvested in tlie next succeeding calendar year, except that In the
case of the 1978 crop the procla~iiationshall be made as soon as pracf icable after rnactnient of the Food and Ikgriculli~reAct of 1977. The
Secrc.tary may revise the national prograni acreage first proclaimed
for any crop year for the purpose of determining the allocation factor
tulder paragraph (2) of this sulsection if the Sectaetary det.ermine;
it necessary based upon the latest information, and the Secretary shall
proclaim such revised national program acreage as soon as i t is uradc.
The national program acreage for wheat shall be the nurnFer of
liarrrsted acres the Secretary deter~nines(on the basis of the weighted
national average of the farm program payment yields for the crop for
\\-l~ichthe detc.r~~rination
is made) \\-ill produce the q ~ ~ a n t i t(less
y
iuiports) that tlie Secretary estimates will be 11tilizec1dol~lesticnllyand
for export dtiring the ~narketingyear for such crop. I f the Secretary
determines that carryover stocks of \vht.nt are excessive or an Increase
in s t t ~ k sis needed to assure clesirable carryover, the Secretary may
atljnst the national program acreage by the amo~intthe Secretary
(letermines will acco~nplishthe desired increase or decrease in carryover stoclrs.
"(2) The Secretary shall determine a program allocation factor for
each crop of wheat. The allocation factor for wheat shall be determined by dividing the national program acreage for tlie crop by the
number of acres which the Secretary estimates will be harvested for
.
in no event shall the allocation factor for
sr~cllcrop: P v m i d ~ d That
any crop of wheat be rnore than 100 per centum nor less than 80 per
centum.
L L ( 3 The
)
individual farm rogram acreage for each crop of wheat
shall be determined by multip ying the allocation factor by the aclaea,ne
of wheat planted for harvest on the farms for which individnal farm
progralll acreages are required to be dete1.1niiiec1:Z'rocfidad, That the
wheat acreage eligible for payments shall not be further reduced by
application of the allocation factor if the producers reduce the ncreage of wheat planted for harvest on the farm from the previous year
by at least the percentage recommended by the Secretary in the procla111ationof the national program acreage made not later than August 15
prior to the year in which the crop is harvested, or in the case of
the 1978 crop, the proclamation first made after enactment of the
Food and Agriculture Act of 1977. The Secretar.~shall provide fair
and equitable treatment for producers on farms on which the acl-eage
of wheat pIanted for harvest is less than for the preceding year, lmt
the reduction is insufficient to exempt the farm from the application
of the allocation factor. I n establishing the allocation factor for wheat,
the Secretary is authorized to make such adjustment as the Secretary
deems necessary to take into account the extent of exemption of farins
under the foregoing provisions of this paragraph.
"(e) The farm program payment yield for each crop of wheat shall
be the vield established for the farm for the previolls crop gear,
adjusted by the Secretary to provide a fair and equitable yield. If no

Payment yield.

PUBLIC LAW 95-1 13-SEPT.

29, 1977

payment yield for wheat was established for the farm in the pr.evious
crop year, the Secretary is authorized to determine such yield as the
Secretary finds fair and reasonable. Sotviitlistanding the foregoing
provisions of this subsection. in the determination of yields, the Secretary hllall take into account the actual yields proved by the producer,
and neither such yields nor the farm program payment yield estabished on the basis of such yields shall be reduced under other provisions of this subsection. I f the Secretary determines it necessary, the
Secretary may establish national, State, or county program payment
yields on the basis of historical yields, as adjusted by the Secretary to
correct for abnormal factors affecting such yields in the liistorical
period, or, if such data are not available, on the Secretary's estimate of
actual yields for the crop year involved. I n the event national. State, or
county program payment yields are established, the farm program
payment yields shall balance to the national, State, or county program
payment yields.
" ( f ) (1) The Secretary shall provide for a set-aside of cropland if
the Secretarv determines that the total supply of wheat trill. ill the
absence of such a set-aside, likely be e s c e s s ~ ?al;inp
~e
into acconnt the
need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emergency. The Secretary shall
announce any such set-aside not later than August 15 prior to the year
in which the crop is harvested, except that in the case of the 1978 crop,
the announcement shall be made as soon as practicable after enactment of the Food and Agriculture Act of 1977. I f a set-aside of cropland is in effect under this subsection, then as a condition of eligibility
for loans, purchases, and payments authorized by this section, the
producers on a farm must set aside and devote to conservation uses an
acreage of cropland equal to a specified percentage, as cletermined by
the Secretary, of the acreage of wheat planted for h a r v e ~ tfor the
crop year for which the set-aside is in effect. The Secretary may limit
the acreage planted to wheat. Such limitation shall be applied on a
uniform basis t o all wheat-producing farms. The set-aside acreage
shall be devoted to conservation uses, in accordance with regulations
issued by the Secretary, which will assure protection of such acreage
from weeds and wind and water erosion: however, the Secretary may
permit, subject to such terms and conditions as the Secretary may prescribe. all or any part of the set-aside acreage to be devoted to sweet
sorghum, hay, and grazing or the production of guar, sesame, safflower,
sunflower, castor beans, mustard seed, crambe. plantago ovato, flfisseed, triticale, oats, rye, or other commodity, if the Secretary determines that such production is needed to provide an adequate supply,
is not likely to increase the cost of the price support program, and will
not adversely affect farm income.
"(2) The Secretary may make land diversion payments to producers
of wl!eat. \~*hetheror not a set-aside for wheat is in effect. if the Secretarp determines that such land diversion payments are necessaq to
assist in ncljusting the total national acreage of heat to desirable
goals. Such land diversion payments shall be made to producers on a
farm who. t o the extent prescribed by the Secretary, devote t o
approved conservation uses an acreage of cropland on the farm in
accordance with land diversion contracts entered into by the Secretary
with such producers. The amounts payable to producers under land
diversion contracts may be determined through the submission of bids
for such contracts by producers in such manner as the Secretary may
prescribe or through such other means as the Secretary determines

9 1 STAT. 925

Cropland setaside.

Announcement.

Acreage
limitation.

Land diversion
payments

Contacts, bids.

91 STAT. 926

PUBLIC LAW 95-113-SEPT.

29. 1977

appropriate. I n cleterniiiiing the acceptability of contract offers, the
Secxetary sliall talie illto consideratlo11 the extent of the diversion to
be un~lertalceilby the producers and t l ~ eproductivity of the acreage
clivertecl. Tlie Secretary sliall limit the total acreage to be diverted
uilcler agreenients in any county or local coniniunity so as not to affect
adversely the ecoiior~iyof the couilty or local coninlunity.
Wildlife habitats.
"(3) The set-asicle acreage and the additional diverted acreage rnay
be tleroted to wildlife food plots or wildlife habitat in conforriiity
wit11 standards established by tlie Secretary ill consultatio~lwith wildPayments.
life agencies. The Secretary niay pay an appropriate share of tlie cost
of practices designed to carry out tlie purposes of tlie foregoing sentence. Tlie Secretary may provicle for an ailditioilal payment on such
acreage in an amount dt.termined by the Secretary to be appropriate
in relation to tlie benefit to the ge~?eralpublic if the producer agrees to
permit, ~ ~ i t l i o other
ut
conipensat~on,access to all or sucll portion of
the farm, as the Secretary niay p~.escribe,by the general public, f o r
hunting, trapping, fishing, and hiking, subject to applicable State and
Federal regula t ions.
Adjustments.
''(-1.) The Secretary may make such adjllst~iicntsin individual setaside acreages under this sect~onas the Secretary Geteriiiincs nepeseary
to correct for abnormal factors affecting procluct~on,and to glve due
consideration to tillable acreage, crop-rotation practices, types of soil,
soil and water conservation measures, and topography, and such other
factors as the Secretary deellis necessary.
Agreement,
" ( 5 ) I f the operator of tlie farm desires to participate in the profiling.
gram fornlulatetl uncler this snbsec,tjon, the operator shall file an
agreement to clo so no later than such date as the Secretary may prescribe. Loans, p u r c h a s e ~and
~ payments under this section shall be
made available to producers on such farm only if the producers set
aside and devote to approved soil conserving uses an acreage on the
farm equal to the rluiiiber of acres which the operator agrees to set
aside and devote to approved soil conserving uses, and the agreement
Termination or
shall so provide. The Secretary may, by niutual agreement with the
modification.
proclncers. terminate or modify any sncll agreement entered into pursuant to this subsection if the Secretary determines such action necessary because of a n einergelicy created by dronght or otlier disaster, or
in order to prevent or alleviate a shortage in the supply of agricultural
commodities.
L L ( gI) n any case in which the failure of a producer to comply fully
with the terms and conditions of the program forn~lllatedunder this
section precllides the making of loans, pnrcliases, and payments, the
Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary deternlines to be equitable in
relation to the serioi~snessof the default.
Regulations.
" ( h ) The Secretary is authorized to issue such regulations as the
Secretary determines necessary to carry out the provisions of this
section.
" ( i ) The Secretary shall carry out the program authorized by this
section through the Commodity Credit Corporation.".
NONAPPLICABILITY O F C,ERTIFICATE REQUIRENENTS

7 USC 1379d
note.
7 UsC
1379d-1379j.

SEC.403. Sections 379d, 379e, 379f, 379,q, 37911, 379i. and 379j of the
Agricultural Adjustment Act of 1938 (which deal with marketing certificate requirements for processors and exporters) shall not be appli-

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 927

cable to wheat processors or exporters during the period July 1,1973,
through May 31,1982.
SUSPENSIOX O F MARKETING QVOTAS A S D PRODUCER CERTIFICATE
PROVISIONS

SEC.404. Sections 331,332,333,334,335,336,338,339,379b, and 379c 7 USC 1331 note.
of the Agricultural Adjustment Act of 1938, as amended, shall not 7 USC
be applicable to the 1978 through 1981 crops of wheat.
1331-1333,
1334, 1335,

FINALITY O F DETERMINATIONS

1336,
1339, 1338,
1379b,

SEC.405. Effective only for the 1978 through 1981 crops, section 385 1379c.
of the Agricultural Adjustment Act of 1938 as amended, is amended 7 USC 1385.
by amending the first sentence to read as fo\lows: "The facts constituting the basis for any Soil Conservation Act payment, any payment
under the wheat, feed grain, upland cotton, and rice programs authorized by the L4gricultural Act of 1949 and this Act, any loan, or price 7 use 1421 note.
support operation, or the amount thereof, when officially determined
in conformity with the applicable regulations prescribed by the Secretary or by the Commodity Credit Corporation, shall be final and
conclusive and shall not be reviewable by any other officer or agency
of the Government.".
SUSPENSION O F QUOTA PROVISIONS

SEC.406. Public Law 74, Seventy-seventh Congress (55 Stat. 203, as 7 USC 1330 note.
amended) shall not be applicable to the crops of wheat planted for 7 U S c 1330,
1340.
harvest in the calendar years 1978 through 1981.
APPLICATION O F TERMS I N THE AGRICULTURAL ACT O F 1 9 4 9

SEC.407. Section 408(k) of the Agricultural Act of 1949, as added
by the Agricultural Act of 1970, as amended, to be effective for the 7 USC 1428.
1971 through 1977 crops, shall be effective for the 1978 through 1981
crops, and shall read as follows :

" (k) References made in sections 402,403,406, and 416 to the terms post, P. 956.
'support price', 'level of support', and 'level of price support' shall 7 USC 17363
be considered to apply as well to the level of loans and purchases for
wheat and feed grains under this Act; and references made to the
terms 'price support'? 'price support operations', and 'price support
program' in such sectlons and in section 401 (a) shall be considered as Post, p. 956.
applying as well to the loan and purchase operations for wheat and
feed grains under this Act.".
COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS FOR WHEAT
AND FEED GRAINS

SEC.408. Effective only with respect to the marketing years for the
1978 throu h 1981 crops, section 407 of the Agricultural Act of 1949,
as amendeif is amended by7 usc 1427.
( l h striking out in the third sentence the language following
the t ird colon and inserting in lieu thereof the following: "Provided, That the Corporation shall not sell any of its stocks of
wheat, corn, grain sorghum, barley, oats, and rye respectively a t

91 STAT. 928

PUBLIC LAW 95-113-SEPT.

29, 1977

less than 115 per centum of the current national average loan rate
for the commodity, adjusted for such current market differentials
reflecting grade, quality, location, and other value factors as the
Secretary determines appropriate, plus reasonable carrying
charges.'' ;
(2) striking out in the fifth sentence "current basic county support rate including the value of any applicable price-support payment in kind (or a comparable price if there 1s no current basic
county support rate)" and inserting in lieu thereof the following:
"current basic coun,ty loan rate (or a comparable price if there is
no current basic county loan rate) "; and
(3) striking out in the seventh sentence ", but in no event shall
the purchase prlce exceed the then current support price for such
con~modities" and inserting in lieu thereof the following: "or
unduly affecting market prices, bpt in no event shall the purchase
price exceed the Corporation's mrnimum sales price for such commodities for unrestricted use".
ZTONAPPLICABILITY O F SECTION 1 0 7 OF TIIE AGRICULTURAL ACT O F 1 9 4 9
TO THE 1 9 7 7 THROUGH 1 9 8 1 CROPS OF WHEAT

7 USC 1445a
note.

7 USC 1445a.

SEC.409. Section 107 of the ,4gricultural Act of 1949, as amended,
shall not be applicable to the 1977 through 1981 crops of wheat.
NOSAPPLICABILITY O F SECTION 1 0 7 O F THE AGRICULTURAL ACT O F 1949,
AS AMENDED, TO THE 1 9 7 7 CROP O F WHEAT

7 USC 1445a
note.

SEC.410. Except as otherwise provided in section 101 of this Act,
section 107 of the L4gricuItural Act of 1949, as added by the hgricultural Act of 1970, as amended, to be effective only for the 1974 through
1977 crops of wheat, shall not be applicable to the 1977 crop of wheat.
T I T L E V-FEED

GRAIYS

LOAN RATES A S D TARGET PRICES FOR THE 1 9 7 7 TIIROUQH 1 9 8 1 CROPS

Loans and
purchases.

7 USC 1 4 4 4 ~ .

Reduction.

SEC.501. Effective only for the 1977 through 1981 crops, the Agric,ulturaI Act of 1949, as amended, is arnended by adding subsections
(a) through (c) to a new section lO5d as follows :
"SEC.105A. Notwithstanding any other provision of law"(a) (1) The Secretary shall make available to producers loans and
purchases a t such level, not less than $2.00 per bushel, for each of the
1977 through 1981 crops of corn, as the Secretary determines will
encourage the exportation of feed grains and not result in excessive
total stocks of feed grains in the United States: Provided, That if the
Secretary determines that the average price of corn received by producers in any marketing year is not more than 105 per centum of the
level of loans and purchases for corn for such marketing year, the Secretary may reduce the level of loans and purchases for corn for the nest
marketing year by the amount the Secretary determines necessary to
maintain domestic and export markets for grain, except that the level
of loans and purchases shall not be reduced by more than 10 per centum
in any year nor below $1.75 per bushel.
"(2) The Secretary shall make available to producers loans and
purchases on each of the 1977 through 1981 crops of barley, oats, and
rye, respectively, a t such level as the Secretary determines is fair and
reasonable in relation to the level that loans and purchases are made
available for corn, taking into consideration the feeding value of such

PUBLIC LAW 95-113-SEPT.

29, 1977

commodity in relation to corn and other factors specified in section
401(b) of this Act, and on each crop of grain sorghums at such level
as the Secretary deternlines is fair and reasonable in relation to the
level tliat loans and purchases are made available for corn, taking into
consideration the feeding value and average transportation costs to
rnarket of grain sorghun~sin relation to corn.
" ( b ) (1) (A) I n addition, the Secretary shall make available to producers payments for each of the 1977 through 1981 crops of corn,
grain sorghums, and, if designated by the Secretary, oats and barley,
in an amount computed as provided in this subsection. Payments for
tlle 1977 crop shall be computed by multiplying ( i ) the pay~ilentrate,
by (ii) the allotment for the farm for such crop, by (iii) the yield established for the farm for the preceding crop with such adjustments
as the Secretary deternlines necessary to provide a fair and equitable
yield. Paynlents for each of tlle 1978 through 1981 crops shall be computed by multiplying ( i ) the payment rate, by (ii) the f a m i program
acreage for the crop, by (iii) the farm prograni payment yield for the
crop. I n no event shall payments be ~ n a d eunder this paragraph for
any of the 1978 through 1981 crops on a greater acreage than the acreage actually planted to such feed grains.
"(B) The payment rate for corn shall be the amount by urhich the
higher of" (1) the national weighted average marlret price received by
farmers (luring the first five niontlis of the marketing year for
such crop, as determined by the Secretary, or
"(2) the loan level deter~ninedunder subsection ( a ) for sucli
crop
is less than the established price per bushel. The established price for
corn shall be $2.00 per bushel in the case of the 1977 crop, except tliat
the established price shall be $1.70 per bushel with respect to any acreage not planted t o corn within the feed grain allotment. The established price for corn shall be $2.10 per bushel in the case of the 1978
crop, and for the 1979 through 1981 crops the establislied price shall be
the established price for the previous year's crop adjusted to reflect any
change in ( i ) the average adjusted cost of production for the two crop
gears im~nediatelvpreceiling the year for ~~*llicli
the deterniination is
made from (ii) the average adjusted cost of production for the two
crop years immediately preceding the gear previous to the one for
which the deternlination is made. The adjusted cost of production for
each of slicli years shall be determined by the Secretary on tlle basis of
such information as the Secretary finds necessary and appropriate
for the purpose and sllall be limited to ( i ) variable costs, (ii) machinery ownership costs. and (iii) general far111overhead costs, allocated
to the crops involvecl on the basis of the proportion of the value of the
total production derived from each crop.
"(C) Piotwitli~tandingthe foregoing provisions of this section, in
the event the Secretary adjusts the level of loans and purchases for
corn in accordance with the proviso in snbsection ( a ) (1) of this section, the Secretary shall provide emergency compensation by increasing the established price payments for corn by sucli amount as the
Secretary deternlines necessary to provide the same total return to
producers as if the adjustment in the level of loans and purchases had
not been made : Provid~d,That any such increase in established price
payments shall riot be included in the payments subject to limitation
under the provisions of section 101 of the Food and Agriculture Act
of 1977.
"(D) The payment rate for grain sorghums and, if designated by
the Secretary, oats and barley, shall be such rate as the Secretary

91 STAT. 929
7 USC 1421.

Payments.

Established price
per bushel.
Adjusted cost of
production.

Emergency
compensation.

9 1 STAT. 930

Prevented
planting disaster
payments.

Farm disaster
payment.

7 USC 1307 note.

7 USC l a b .

PUBLIC LAW 95-113-SEPT.

29, 1977

determines fair and reasonable in relation to the rate at which
payments are made available for corn.
"(E) The total quantity on which payments would otherwise be
payable to a producer on a farm for any crop under this paragraph
shall be reduced by the quantity on which any disaster payment is
made to the producer for the crop under paragraph (2) of this
subsection.
"(2) (A) Effective only with respect to the 1978 and 1979 crops of
feed grains, if the Secretary determines that the producers on a farm
are prevented froin planting any portion of the acreage intended for
feed grains to feed grains or other nonconserving crops because of
drought, flood, or other natural disaster, or other condition beyond
t,he control of the producers, the Secretary shall make a prevented
planting disaster payment to the producers on t1:e number of acres
so affected but not to exceed the acreage planted to feed grains for
harvest (including any acreage which the producers were prevented
from planting to feed grains or other nonconserving crop in lieu of
feed grains because of drought, flood, or other natural disaster, or other
condition beyond the control of the producers) in the immediately preceding year multiplied by 75 per centum of the farm program payment yield for feed grains established by the Secretary times a
payment rate equal to 33% per centum of the established price per
bushel.
"(B) Effective only with respect to the 1978 and 1979 crops of feed
grains, if the Secretary determines that because of drought, flood, or
other natural disaster, or other condition beyond the control of the
producers, the total quantity of feed grains which the producers are
able to harvest on any farm is less than the result of multiplying 60
per centum of the farm program payment yield established by the
Secretary for such crop by the acreage planted for harvest for such
crop, the Secretary shall make a farm disaster payment to the producers a t a rate eqnal to 50 per centum of the established price for the
crop for the deficiency in production below 60 per centum for the crop.
"(C) I n the case of the 1977 crop of feed grains, disaster payments
for prevented planting for feed grains shall be computed as provided
in section 105 of this Act, as amended for the 1974 through 1977 crops
by the Agriculture and Consumer Protection Act of 1973, and di~aster
payments for low yield shall be computed in accordance with the
formula provided in subparagraph (B) of this paragraph : Presided,
That producers may elect to receive disaster payments for low yield
computed as provided in section 105 of this Act, as amended for the
1974 through 1977 crops by the Agriculture and Consun~erProtection
Act of 1973 : Prozfided further, That no disaster paymerlts for low
yield may be made under this paragraph prior to October 1, 1977.
"(c) The Secretary shall provide for the sharing of payments made
under this section for any farm among producers 011 the farm on a
fair and equitable basis.".
PROGRAM ACREAGES A N D PAYMENT YIELDS ;SET-ASIDE PROGRAM

Proclamation.

Ante, p. 928.

Revision.

SEC.502. Effective only for the 1978 through 1981 crops of feed
grains, the 14gricultural Act of 1949, as amended, is amended by addin subsections (d) through (i) to section 105A to read as follows:
'(d) (1) The Secretary shall proclaim a national program acreage
for each of the 1978 through 1981 crops of feed grains. The proclamation shall be made not later than November 15 of each calendar year
for the crop harvested in the next succeeding calendar year. The Secretary may revise the national program acreage first proclaimed for

PUBLIC LAW 95-113-SEPT.

29, 1977

any crop year for the purpose of determining the allocation factor
under paragraph ( 2 ) of this subsection if the Secretary determines
it necessary based upon the latest inforination, and tlie Secretary shall
proclailn such revised national program acreage as soon as it is made.
The national propranl acreage for feed grains shall be the number of
liarl-ested acres the Secretary determines (on the basis of tlie weighted
national average of the farm program payment yields for the crop for
which tlie determination is made) \\-ill produce the quantity (less
imports) that tlie Secretary estimates \\-ill be utilized doniestically and
for export during the marketing year for such crop. I f the Secretary
deterillines that tlie carryover stocks of feed grains are excessive or an
increase in stocks is needed to assure desirable carryover, the Secretary
may adjnst the national propranl acreage by the amount the Secretary
determines will accomplish the desired increase or decrease in carryover stoclis.
"(2) T h e Secretary shall determine a program allocation factor for
each crop of feed grains. The ~llocationfactor for feed grains shall be
determined by div~clingthe national program acreage for the crop by
the number of acres which the Secretary estimates \\-ill be harvested
for such crop: P ~ ~ o z ~ iThat
d ~ d ,in no event shall the allocation factor
for any crop of feed grains be more than 100 per centum nor less than
80 per centum.
" ( 3 ) The inclividlial farm program acreage for each crop of feed
prains shall be determined by multiplying the allocation factor by the
acreage of feed grains planted for harvest on the farms for which
individual farm program acreages are required to be determined:
Prozqided, That the feed grain acreage eligible for payments shall not
be further reduced by application of the allocation factor if the producers reduce the acreage of feed grains planted for harvest on tlie
farm from the previous year by at least the percentage recommended
by the Secretary in tlie proclamation of the national program acreage
made not later than Yorember 15 prior to the year in ~ ~ l i i cthe
h crop
is harvested. The Secretary shall proride fair and equitable treatment
for producers on farms on which the acreage of feed grains planted
for harvest is less than for tlie preceding year, but the reduction is
insufficient to exempt the farm from the application of the allocation
factor. I n establishing the allocation factor f o r feed grains, the Secretary is authorized to make such adjustment as the Secretary deems
necessary to take into account the extent of exemption of farms under
the forenoing pro\-isions of this paragraph.
"(e) The farm program payment yield for each crop of feed grains
shall be the yield established for the farm for the previous crop year,
adjusted by the Secretary to proxride a fair and equitable yield. I f no
payment yield for feed grains was established for the farm in the
previous crop year. the Secretary is authorized to determine such yield
3s the Secretary finds fair and reasonable. Not~vithstandingthe foregoing prorisions of this subsection. in the determination of vields, the
Secretary shall take into account the actual yields proved by the producer, and neither such yields nor the farm nrogram payment yield
established on the basis of such yields shall be reduced under other
provisions of this subsection. I f the Secretary determines it necessary,
the Secretary may establish national. State, or county program paymerit gields on the hasis of historical yields, as adjusted by the Secretary to correct for abnormal factors affecting such vields in the
historical period, or. if such data are not available, on the Secretary's
estimate of actual yields for the crop year involved. I n the event
national. State, or coilnty program payment gields are established, the

91 STAT. 931

Adjustment.

Program
allocation factor-

Adjustment.

Payment yield.

PUBLIC LAW 95-113-SEPT.

91 STAT. 932

29, 1977

farm program payment yields shall balance t o the national, State, or
county rogram payment yields.
Cropland set"(f)
The Secretary shall provide for a set-aside of cropland if
aside.
the Secretary determines that the total supply of feed grains will, in
the absence of such a set-aside, likely be excessive taking into account
the need for an adequate carryover to rrlaintain reasonable and stable
Anno~ncement. supplies and prices and to meet a national emergency. Any such setaside shall be announced by the Secretary not later than November 15
of each calendar year for the crop harvested in the next calendar year.
I f a set-aside of cropland is in effect under this subsection, then as a
condition of eligibility for loans, purchases, and payments authorized
by this section on corn, grain sorghums, and, if designated by the Secretary, barley and oats, respectively, the producers on a farm must set
aside and devote to conservation uses an acreage of cropland equal to a
specified percentage, as determined by the Secretary, of the feed grain
acreage planted for harvest for the crop year for which the set-aside is
Limitation.
in effect. The Secretary may limit the acreage planted to feed grains.
Such limitation shall be applied on a uniform basis to all feed grainproducing farms. The set-aside acreage shall be devoted to conservation uses, in accordance with regulations issued by the Secretary, which
will assure protection of such acreage from weeds and wind and water
erosion; however, the Secretary may permit, subject to such terms and
conditions as the Secretary may prescribe, all or any part of the setaside acreage to be devoted to sweet sorghum, hay, and grazing o r the
production of guar, sesame, saflo~r~er,
sunflower, castor beans, mustard
seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other
commodity, if the Secretary determines that such production is needed
to provide an adequate supply, is not likely to increase the cost of the
price support program, and will not adversely affect farm income.
Land-diversion
"(2) The Secretary may make land diversion payments to producers
payments.
of feed grains, whether or not a set-aside for feed grains is in effect,
if the Secretary determines that such land diversion payments are
necessary to assist in adjusting the total national acreage of feed
grains to desirable goals. Such land diversion payments shall be made
to producers on a farm who, t o the extent prescribed by the Secretary,
devote to approved conservation uses an acreage of cropland on the
farm in accordance with land diversion contracts entered into hv the
Contracts, bids.
Secretary with such producers. The amounts payable to producers
under land diversion contracts may be determined through the subnlission of bids for such contracts by producers in such manner as the
Secretary may prescribe or through such other means as the Secretary
determines appropriate. I n determining the acceptability of contract
offers, the Secretary shall take into consideration the extent of the
diversion to be undertaken by the producers and the productivity of
the acreage diverted. The Secretary shall limit the tot,al acreage to be
diverted under agreements in any county or local community so as not
to affect adversely the economy of the county or local community.
" (3) The set-aside acreage and the additi'onal diverted acreage may
be devoted to wildlife food plots or wildlife habitat in conformitp with
standards established by the Secretary in consultation with wiIdIife
Payments.
agencies. The Secretary may pay an appropriate share of the cost of
practices designed to carry out the purposes of the foregoing sentence. The Secretary may provide for an additiona1 payment on such
acreage in an amount determined by the Secretary t o be appropriate in
relation to the benefit to the general public if the producer agrees t o
permit, witholit other compensation, access to all or such portion of the
farm, as the Secretary may prescribe, by the general public, for hunt-

PUBLIC LAW 95-113-SEPT.

91 STAT. 933

29, 1977

ing, trapping, fishing, and hiking, subject to applicable State and
Federal regulations.
"(4) The Secretary may malie such adjustments in individual setaside acreages under this section as the, Secretary determines necessary
t o correct for abnormal factors affecting production, and to give due
consideration to tillable acreage, crop-rotation practices, t pes of soll,
soil and water conservatlon measures, and topography, an such other
factors as the Secretary deems necessary.
"(5) I f the operator of the farm desires to participate in the program formulated under this subsection, the operator shall file an agreement to do so no later than such date as the Secretary may prescribe.
Loans, purchases, and payments under this section shall be made available to producers on such farm only if the producers set aside and
devote to approved soil conserving uses an acreage on the farm equal
to the number of acres which the operator agrees to set aside and
devote to approved soil conserving uses, and the agreement shall so
provide. The Secretary may, by mutual agreement with the producers,
terminate or modify any such agreement entered into pursuant to
this subsection if the Secretary determines such action necessary
because of an emergency created by drought or other disaster, or in
order to.. prevent
.
or alleviate a shortage in the supply of agricultural
commodities.
"(g) I n any case in which the failure of a producer to comply fully
with the terms and conditions of the program formulated under this
section precludes the making of loans, purchases, and payments, the
Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary determines to be equitable in
relation to the seriousness of the default.
"(h) T h e Secretary is authorized to issue such regulations as the
Secretary determines necessary to carry out the provisions of this
section.
"(i) The Secretary shall carry out the program authorized by this
section through the Commodity Credit Corporation.".

Adjustments.

Agreement filing.

Termination or
modification.

Regulations.

NONAPPLICAnILITY O F

SECTION 1 0 6 O F THE AGRICULTURAL ACT O F 1 9 4 9 ,
TO THE 1 9 7 7 T H R O C G H 1 9 8 1 CROPS O F FEED GRAINS

SEC.503. Section 105 of the A ricultural Act of 1949. as amended, 7 USC 1444b
shall not be applicable to the 197f through 1981 crops of feed grains.

7 USC 1441note.

NONAPPLICABILITY O F SECTION 1 0 5 O F THE AGRICULTERAL ACT O F 1 9 4 9 ,
AS AMENDED, TO THE 1 9 7 7 CROP O F FEED GRAINS

SEC.504. Except as otherwise provided in section 501 of this Act, 7 USC
section 105 ( a ) and (b) (1) of the Agricultural Act of 1949, as added note.
by the Agricultural Act of 1970, as amended, to be effective only for
the 1974 through 1977 crops of feed grains, shall not be applicable to
the 1977 crop of feed grains.
T I T L E VI-UPLAND

COTTON

BASE ACREAGE ALLOTMENT6 j SUSPENSION O F MARKETING QUOTAS, A N D
RELATED PROVISIONS

SEC.601. Sections 342,343,344,345,346, and 377 of the Agricultural 7 USC 1342 noteAdjustment Act of 1938, as amended, shall not be applicable to upland
cotto11 of the 1978 through 1981 crops.
1345, 1346,
1377.

:~~~:~&~

91 STAT. 934

PUBLIC LAW 95-113-SEPT.
COTTON PRODUCTION IxCENTIVES

SET-ASIDE

7 USC 1444.

Interest rate,
quarterly
establishment.
Nonrecourse
loans, extension.

Import quota,
Presidential
establishment.
Conditions.

29, 1977

; LOAN

RATE AND TARGET PRICE ;
PROGRAM

SEC.602. Effective only with respect to the 1978 through 1981 crops
of upland cotton, except as otherwise provided herein, section 103 of
the Agricultural Act of 1949, as amended, is amended by adding at
the end thereof a new subsection ( f ) as follows :
The Secretary shall, upon presentatioll of ~varehouse
b L ( f(1)
)
receipts reflecting accrued storage c h a r ~ of
s not more than sixty days,
make available for the 19'78 through 1981 crops of upland cotton t o
cooperators noilrecourse loans for a term of ten months from the first
day of the month in which the loan is made at such level as will reflect
f o r Strict Low SIiddling one and one-sixteenth inch upland cotton
(micronaire 3.5 through 4.9) a t average location in the United States
the smaller of ( i ) 85 per centum of tlle average price (weighted by
market and month) of such quality of cotton as quoted in the designated United States spot markets during the four-year period ending
J u l y 31 ill the ?ear in which the loan level is announced, or (ii) 90 per
centum of the average, for the first two full weeks of October of the
year in which the loan level is announced, of the five l o \ ~ e s tpriced
growths of the growths quoted for Strict Riiddliilg one and one-sixteenth inch cotton C.I.F. Sorthern Europe (adjusted downward by
the average difference during the period d p r i l 15 through October 15
of the year in which the loan is announced betmen snch average
Sorthern Europe price quotation of such quality of cotton and the
market quotations in the designated T'nited States spot markets for
Strict Low Middling one and one-sisteenth inch cotton (micronaire
3.5 through 4.0)). The loan level for any crop of cotton shall be
determined and announced by tlle Secretary not later than Xovember 1
of the calendar year preceding the marketing year for which such
loan is to be efl'ective. and such level shall not thereafter be changed.
The rate of interest on loans to cooperators under the provisions of
this paragraph shall be established quarterly by the Commodity
Credit Corporation on the basis of tl:e lowest c~wrentinterest rate on
ordinary obligations of the United States. Sonrecourse loans provided
for in this sul)srction, shall, upon request of the cooperator during the
tenth nlonth of the loan period for the cotton, be made available for
an additional term of eight months: Provided, That euch request to
extend the loan period shall not be approved in a month when the
average price of Strict Low Riddling one and one-sixteenth inch rotton
(micronaire 3.5 through 4.9) in the designated spot markets for the
preceding month esceeded 130 per centum of thc average price of such
q~lalityof cotton in such markets for the preceding thirty-six month
period: Provided further, That whenever the Secretary determines
that the average price of Strict Low Middling one and one-sixteenth
inch cotton (micronaire 3.5 through 4.9) in the designated spot markets
for a month esceeded 130 per centnm of the, areraqe price of snch
quality of cotton in such markets for the preceding thirty-sis months.
notwithstanding any other provision of law, the President shall immediately establish and proclaim a special limited global import quota
for upland cotton subject to the following conditions :
" ( A ) The amount of the special quota shall be equal to trventyone days of domestic mill consumption of upland cotton at the
seasonally adjusted average rate of the most recent three months
for which data are available;
"(B) I f a special quota has been established under this subsection during the preceding twelve months, the amount of the quota
next established hereunder shall be the smaller of twenty-one days

PUBLIC LAW 95-113-SEPT.

29, 1977

of domestic mill consumption calculated as set forth in clause
(A) of this subsection or the amount required to increase the
supply to 130 per centum of the demand;
" ( C ) AS used in clause (B) of this paragraph, the term 'supply'
means, using the latest official data of the Bureau of the Census,
the United States Department of Agriculture, and the United
States Department of the Treasury, the carryover of upland cotton at the beginning of the marketing year (adjusted to four hundred and eighty-pound bales) in which the special quota is
established, plus production of the current crop, plus imports to
the latest date available during the marketing year, and the term
'demand' means the average seasonally adjusted annual rate of
domestic lnill consum tion in the most recent three months for
which data are availa le, plus the larger of average exports of
upland cotton during the preceding six marketing years or cumulative exports of upland cotton, plus outstanding export sales for
the marketing year in which the special quota is established; and
" ( D ) When a special quota is established under the provisions
of this subsection, a ninety-day period from the effective date of
the proclamation shall be allowed for entering cotton under such
quota.
" (2) Sotwithstanding the foregoing provisions of this subsection, a
special quota period shall not be established that overlaps an existing
special quota period.
" (3) Kotwithstanding any other provision of law, the foregoing
provisions of this subsection with respect to extension of the loan
period and to proclamation of the special quota shall become effective
upon the effective date of the Food and ..4griculture Act of 1977 even
though the cotton may be of a crop prior to the 1978 crop.
"(4) Payments shall be made for each crop of upland cotton to the
producers on each farm a t a rate equal to the amount by which the
higher of" ( A ) the average market price received by farmers for upland
cotton during the calendar year which includes the first five
months of the marketing year for such crop, as determined by the
Secretary, or
"(33) the loan level determined under paragraph (1) for such
crop
is less than the established price per pound times in each case (i) the
farm program acreage for cotton, determined in accordance ~ i t parah
graph (9) of this subsection (but in no event on a greater acreage than
the acreage actually planted to cotton for harvest), multiplied by (ii)
the farm program payment yield for cotton determined in accordance
with paragraph (10) of this subsection. F o r the 1978 through 1981
crops, the established price shall be the established price for the previous year's crop adjusted to reflect any change in (i) the average
adjusted cost of production for the two crop years immediately preceding the year for which the determination is made from (fi) the
average adjusted cost of production for the two crop years immediately
preceding the year previous to the one for which the determination
is made. The adjusted cost of production for each of such years shall
be determined by the Secretary on the basis of such information as the
Secretary finds necessary and appropriate for the purpose and shall
be limited to ( i ) variable costs, (ii) machinery ownership costs, and
(iii) general farm overhead costs, allocated to the crops involved on
the basis of the proportion of the value of the total production derived
from each crop : Provided,That in no event shall the established price
for the 1978 crop be less than 52 cents per pound and for each subse-

91 STAT. 935

"Supply."

"Demand."

Payments.

Established
price.

Adjusted cost of
production.

91 STAT. 936

PUBLIC LAW 95-113-SEPT.

29, 1977

q11ent crop be less than 51 cents per pound. The total quantity on which
payments would otherwise be payable to a producer for any crop under
this paragraph shall be reduced by the quantity on which any disaster
paylncnt is made to the producer for the crop under paragraph (5) (B)
of this snbsection.
Prevented
'L(5)(A) Effective only with respect to the 1978 and 1979 crops of
planting disaster upland cotton, if the Secretary determines that the producers on a farm
payments.
are prevented from planting any portion of the acreage intended f o r
cot.ton to cotton or ot,her nonc.onserving crops because of drought, flood,
or other natural disaster, or other condition beyond the control of the
producers, the Secretary shall make a prevented planting disaster payment to the producers on the number of acres so affected but not to
exceed the acreage planted to cotton for harvest (including any acreage which the producers were prevented from planting to cotton or
other nonconserving crop in lieu of cotton because of drought, flood, or
other natural disaster, or otlier contlition beyond the control of the
prodncers) in the immediately prececling year, lli~iltipliedby 75 per
centum of the farm program payment yield established by the Secretary times a payment rate equal to 33% per centum of the established
price for the crop.
"(B) Effective only with respect to the 1978 and 1979 crops of
upland cotton, if the Secretary determines that because of drought,
flood, or other natliral disaster, or other condition beyond the control
of the produce^.^. the total quantity of cotton which the producers are
able to harvest on any farm is less than the result of multiplying 75
per centom of the farm program payment yield established by the Secretary for such crop by the acreage planted to harvest for such crop,
the Secretary shall make a farm disaster payment to the producers a t a
rate equal to 331/3 per centum of the established price for the crop for
the deficiency in production below 75 per centum for the crop.
Payment sharing.'
"(6) The Secretary shall provide for the sharing of payments made
under this sltbsection for any farm among the producers on the farm
on a fair and equitable basis.
'' (7) The Secretary shall establish for each of the 1978 through 1981
National program
acreage.
crops of upland cotton a national program acreage. Such national proAnnouncement.
gram acreage shall be announced by the Secretary not later than
December 15 of the calendar year preceding the year for rrllirh sllch
Revision.
acreage is established. The Secretary map revise the national program
acreage first announced for any crop year for the piirpose of determining the allocation factor under paragraph (8) of this snbsection
if the Secretarv determines it necessary based upon the latest information, and the Secretary shall announce such revised national program
acreage as soon as it.has been made. The national program acreage shall
be the number of harvested acres the Secretary determines (on the
basis of the estimated weighted national average of the farm program
yields for t,he crop for which the determination is made) will prodl~ce
the quantity (less imports) that the Secretary estimates will be utilized domestically and for export during the marketing year for such
Adjustment.
crop. The nztional program acreage shall be subject to such adjust'
ment as the Secretary determines necessary, talrinp into considerat ion
the estimated carryover supply. so as to provide for an adequat,e but
not excessive total supply of cotton for the marketing year for the crop
for which such national program acreage is established. I n no event
shall the national program acreage be less than 10 million acres.
Allocation factor.
"(8) The Secretary shall determine a program allocation factor for
each crop of upIand cotton. The allocation factor (not to exceed 100
per centum) shall be determined by dividing the national program

PUBLIC LAW 95-113-SEPT.

29, 1977

acreage for the crop by the number of acres which the Secretary estimates will be harvested for such crop.
"(9) The individual farm program acreage for each crop of upland
cotton shall be determined by multiplying the allocation factor by the
acreage of cotton planted for harvest on the farms for vvhicl~individual farm program acreages are required to be determined: Provided, That the cotton acreage eligible for payment on a farm shall not
be further reduced by application of the allocation factor if the producers reduce the acreage of cotton planted for harvest on the farm
from the previous year by at least the percentage recommended by the
Secretary in the annou~lcenlentof the national program acreage made
not later than December 15 of the calendar year preceding the year for
which such acreage is established. The Secretary shall provide fair and
eq~iitabletreatment for producers 011 farms on which the acreage of
cotton planted for harvest is less than for the preceding year, but the
reduction is insufficient to exempt the farm from the application of the
allocation factor. I n establishing the allocation factor, the Secretary
is authorized to make such adjustment as the Secretary deems necessary to take into account the extent of exemption of farms under the
foregoing provisions of this paragraph.
"(10) The farm program payment yield for each crop of upland
cotton shall be determined on the basis of the actual yields per harvested acre on the farm for the preceding three years : Prozv'd~d,That
the actual yielcls shall be adjusted by the Secretary for abnormal yields
in any year caused by drought, flood, or other natural disaster, or other
condition beyond the control of the reducers. I n case f a n n yield
data for one or more years are unavaila le or there was no production,
the Secretary shall provide for appraisals to be made on the basis of
actual yields and program payment yields for similar farms in the
area for which data are available. Notwithstanding the foregoing provisions of this paragraph. in the determination of yields, the Secretary shall take into account the actual yields proved by the producer,
and neither snch yields nor the farm program payment yield established on the basis of such yields shall be reduced under other provisions of this paragraph. If the Secretary determines it necessary, the
Secretary may establish national, State, or county program payment
yields on the basis of historical yields, as adjusted by the Secretary
to correct for abnormal factors affecting such yields in the historical
period, or. if such data are not available, on the Secretary's estimate
of actual yields for the crop year involved. I n the event national, State,
or county program payment yields are established, the farm program
payment yields shall balance to the national, State, or county program
payment yields.
"(11) ( A ) The Secretary shall provide for a set-aside of cropland if
the Secretary determines that the total supply of upland cotton will,
in the absence of such a set-aside. likely be excessive taking into account
the need for an adequate carryover to maintain reasonable and
stable supplies and prices and to meet a national emergency. If a setaside of cropland is in effect ander this paragraph, then as a condition
of eligibility for loans, purchases, and payments on upland cotton, the
producers on a farm must set aside and devote to conservation uses an
acreage of cropland equal to a specified percentage as determined by
the Secretary (but not to exceed 28 per centum), of the acreage of
upland cotton planted for harvest for the crop year for which a
set-aside is in effect. The set-aside acreage shall be devoted to conservation uses in accordance with regulations issued by the Secretary
which will assure protection of such acreage from weeds and wind and
water erosion; however, the Secretary may permit, subject t o such

91 STAT. 937

Payment yields.

Cropland setaside.

Regulations.

91 STAT. 938

Limitation.

Land diversion
payments.

Contracts.

Wildlife habitat.

Payment.

Agreement,
filing.

Termination or
modification.

PUBLIC LAW 95-113-SEPT.

29, 1977

terms and conditions as the Secretary may prescribe, all or any part
of the set-aside acreage to be devoted to sweet sorghum, hay, and
grazing or the production of guar, sesame, safflower, sunflower, castor
beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats,
rye, or other commodity, if the Secretary determines that such production is needed to prqvide an adequate supply, is not likely to
increase the cost of the price support program, and will not adversely
affect farm income. The Secretary may limlt the acreage planted to
nplai~dcotton. Such limitation shall be applied on a uniform basis
to all cotton-producing farms. Producers on a farm who knowingly
plant cotton in excess of the permitted cotton acrea.ge for the farm
shall be ineligible for cotton loans or payments with respect t o that
farm.
"(73) Tlie Secretary may make land diversion payments to producers
of upland cotton, whether or not a set-aside for upland cotton is in
effect, if the Secretary determines that such land diversion payments
are necessary to assist in adjusting the total national acreage of upland
cotton to desirable goals. Such land diversion payments shall be made
to producers on a farin who, to the extent prescribed by the Secretary,
devote to approved conservation uses an acreage of cropland on the
farm in accordance with land diversion contracts entered into by
the Secretary with such producers. The anlounts payable to producers
under land diversion contracts may be determined through the submission of bids for such contracts by producers in such manner as
the Secretary mag prescribe or through such other means as. !he
Secretary determines appropriate. I n determining the acceptability
of contract offers, the Secretary shall talre into consideration the extent
of the diversion to be undertaken by the producers and the productivity
of the acreage diverted. The Secretary shall limit the total acreage to
be diverted under agreements in any county or local community so
as not to affect adversely the economy of the county or local community.
" ( C ) The set-aside acreage and the additional diverted acreage may
be devoted to wildlife food plots or wildlife habitat, in conformity
with standards established by the Secretary in consultation with wlldlife, agencies. The Secretary lnay pay an appropriate share of the
cost of practices designed to carry out the purposes of the foregoing
sentence. The Secretary may provide for an additional payment on
such acreage in an amount determined by the Secretary t o be appropriate i n relation to the benefit to the ge.nera1 public if the producer
agrees to permit, without other compensation, access to all or such
port,ion of the farm, as the Secretary may prescribe, by the general
public, for hunting, trapping, fishing, and hiking, subject to applicable
State and Federal regulations.
"(12) I f the operator of the farm desires to participate i n the program formulated under this subsection. the operator shall file an
agreement to do so no later than such date as the Secret,ary inay prescribe. Loans. purchases, and payments under this subsection shall be
made available to the produce^.^ on such farm only if the producers set
aside and devote t o approved soil conserving uses an acreage on the
farm equal to the number of acres which the operator agrees to set
aside and devote to approved soil conserving uses, and the agreement
shall so provide. The Secretary may, bv mutual agreement with the
prod~~cers,
terminate or modify any such agreement entered into pnrsuant t o this subsection if the Secretary determines such action
necessary because of an emergency created by drought or o,ther disaster, or i n order to alleviate a shortage in the supply of agricultural
commodities.

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 939

" (13) The Secretary shall provide adequate safeguards to protect Safeguards.
the interests of tenants and sharecroppers.
" (14) I n any case in which the failure of a producer to comply fully
with the terms and conditions of the program formulated under this
subsection precludes the making of loans, purchases, and payments,
the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary determines to be equitable In
relation to the seriousness of the default.
"(15) The Secretary is authorized to issue such regulations as the Regulations.
Secretary determines necessary t o carry out the provisions of this
subsection.
"(16) The Secretary shall carry out the program authorized by this
subsection through the Commodity Credit Corporation.
"(17) The provisions of subsection 8 (g) of the Soil Conservation
and Domestic Allotment Act, as amended (relating t o assignment of 16 USC 590h.
payments), shall apply to payments under this subsectio~~.".
CO&ZMODITY C,REDIT CORPORATION SALES PRICE RESTRICTIONS

SEC. 603. Effecti~eonly with respect to the period beginning Cotton.
August 1. 1978. and ending July 31.1982. the tenth sentence of section
407 of the Agricultural Act of 1949. as amended. is amended by strik- 7 USC 1427.
ing out all of that sentence through the words "110 per cen'um of the
loan rate, and (2)" and inserting in lieu thereof the following: "Kot,withstanding any other provision of lam, (1) the Commodity Credit
Corporation shall sell upland cotton for unrestricted use at the same
prices as it sells cotton for export, in no event, however, a t less than
115 per centum of the loan rate for Strict Low Mid-dling one and onesixteenth inch upland cotton (micronaire 3.5 through 4.9) adjusted
for such current market differentials reflecting grade, quality, location,
and other value factors as the Secretary determines appropriate plus
reasonable carrying charges, and (2)".
MISCELLANEOUS COTTON PROVISIOKS

SEC.604. ( a ) Section 408(b) of the Agricultural Act of 1949, as Cooperator.
amended. is amended by inserting immediately before the period a t the 7 USC 1428.
end of t.he first sentence the following: L L : Provided furtlzr. That for
the. 1978 through 1981 crops of upland cotton, a cooperator shall be a
producer on a farm 1%-110has set aside the acreage required under sccAnte, p. 934.
tion 103(f)
(b) 'Section 408(1) of the Agricultural Act of 1949, as added by
the Agricultural Act of 1970. as amended. t o be effective for the 1971
through 1977 crops, shall be effective for the 1978 through 1981 crops,
and shall read as follows :

"(1) References made in sections 402, 403. 406, and 416 to the
terms 'support price', 'lerel of support', and 'level of price support'
shall be considered to apply as well to the lerel of loans and purchases
for upland cotton under this Act; and references made to the terms
'price support', 'price support operations'. and 'price support program'
in such sections and in section 401 (a) shall be considered as applying
as well to the loan and purchase operations for upland cotton under
this Act.".
(c) Sections 103(a) and 203 of the Agricultural Act of 1949, as
amended, shall not be applicable t o the 1978 through 1981 crops.

Post, p. 956.
7 use 1736,
1431.
Post, p. 956.
7 USC 1446d
note.

7 USC 1444,
1446d.

9 1 STAT. 940

PUBLIC LAW 95-113-SEPT.

29, 1977

SKIPROW PRACTICES

7 USC 1374.

SEC.605. Section 374(a) of the Ag~iculturalAdjustment Act of
1938, as amended, is amended by striklng out "1977" in the last sentence and inserting in lieu thereof "1981".
PRELIMINARY ALLOTMENTS FOR 1 9 8 2 CROP O F UPLAND COTTON

7 USC 1342 note.

7 USC 1379.

SEC.606. Notwithstanding any other provision of law, the permanent State, county, and farm base acreage allotments for the 1977 crop
of upland cotton. adjustecl for any underplant,ings in 1977 and reconstituted as provided in section 379 of the Agricultural Adjustment Act
of 1938, as amended, shall again become effective as preliminary allotments for the 1982 crop.
EXTRA LOKG STAPLE COTTON

7 USC 1441.

SEC.607. Section 101(f) of the Agricultural Act of 1949, as
amended, is amended by striking out the words "Afiddling one-inch"
appearing in the first sentence and inserting in lieu thereof "Strict
Low hliddling one and one-sixteenth inch".
TITLE VII-RICE
S.tTIOX.41.

7 USC 1352
and note.

.\('RE.tGE

ALLOTMEST . t S D ALLOCATION

SEC.701. Effective beginning with the 1978 crop of rice, section 101
of the Rice Production Act of 1975 is amended by striking out "1976
nnd 1977" each place it occurs and inserting in lieu thereof L'1976
through 1981".
LOAX RATES, TARGET PRICES, AND GET-ASIDE FOR THE 1 9 T 8
TIIROcQII 1 9 8 1 CROPS

7 USC 1441.
Established
price.

Adjusted cost of
production.

Loans and
purchases.

SEC.702. Effective only for the 1978 through 1981 crops of rice, sect,ion 101 of the bgricultural Act of 1949, as amended, is amended by
adding n new subsection ( h ) as f o l l o ~ :~ s
"(h) Xotwithstanding any other provision of law"(1) F o r the 1978 through 1981 crops of rice, the established
price for the purpose of making payments under this subsection
shall be the established price for the previous pear's crop adjusted
to reflect any change in (i) the average adjusted cost of prodnction for the two crop years immediately preceding the year for
which the determination is made from (ii) the average adjusted
cast of production for the t ~ crop
o years immediatelv preceding
the pear previous to the one for which the determination is made.
The adjusted cost of production for each of such years shall be
determined by the Secertary on the basis of such informat,ion as
the Secretary finds necessary and appropriate for the purpose and
shall be limited to (i) variable costs, (ii) machinery ownership
costs. and (iii) general farm overhead costs, allocated to the crops
involved on the basis of the proportion of the value of the total
prodnction derived from each crop.
"(2) The Secretary shall make available, to cooperators in the
several States of the United States, loans and purchases for each
of the 1978 through 1981 crops of rice a t such level as bears the
same ratio to the loan lerol for tho preceding year's crop as the
established price for each such crop bears to the established price
for the preceding year's crop. I f the Secretary det,ermines that

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 941

loans and purchases a t the foregoing level for ally of the 1978
through 1981 crops would substantially discourage the exportation of rice and result in excessive stocks of rice in the United
States, the Secretary may, notwithstanding the foregoing provisions of this paragraph, establish loans and purchases for such
crop or crops a t such level, not less than $6.31 per hundredtveight
nor more than the parity price thereof, as the Secretary determines necessary to avoid such consequences. The loans and purchases shall be made available to cooperators on a farm with
respect t o a quantity of rice determined by multiplying the allotment by the yield established for the farm, as determined in the
manner described i n the second sentence of paragraph (4) ( A ) of
this subsection.
"(3) The Secretary shall make available to cooperators pay- Payments.
ments for each of the 1978 through the 1981 crops of rice grown
i n the several States of the United States at a rate equal to the
amount by which the established price for the crop of rice exceeds
the higher of"(A) the national average market price received by farmers during the first five months of the marketing year for such
crop, as deter~llinedby the Secretary. or
'((13) the loan level determined under paragraph (2) for
such crop.
"(4) (A) The paynlents for each such crop shall be made available to cooperators on a farm with respect to a quantity of rice
determined by multiplying that portion of the allotnlent planted
to rice by the yield established for the farm: Proclided, That an
acreage on the farm ~vhichthe Secretary determines was not,
planted to rice because of drought, flood, or other natural disaster,
or other condition beyond the control of the cooperato~~s
shall be
considered to be an acreage planted to rice. The yield for the farm
for any year shall be determined on the basis of the actual yields
per harvested acre for the three preceding years: Pr.orided, That
the actual yields shall be adjusted by the Secretary for abno~.n~al
yields in any year caused by drought, flood, other natural disaster,
or other condition beyond the control of the cooperators. The total
cl~~antity
on ~vhichpayments would otherwise be pagable to a
cooperator for any crop under this subparagraph shall be reduced
by the quantity on which any disaster payment is nlade to the
cooperator on a farm for the crop under this paragraph.
L b ( REffective
)
only with respect to the 1978 and 1979 crops of Prevented
rice. if the Secretary rleternlines that the persons involved in pro- planting disaster
ducing rice on a farm are prevented from planting all or any por- payments.
tion of the acreage allotments of producers on the farm or the farm
acreage allotment to rice or other nonconserring crops because of
drought, flood, or other natural disaster. or other condition beyond
the control of the producers, the Secretary shall make a prevented
planting disaster payment to cooperators on a farm in an amount
determined by multiplying ( i ) the number of such acres so
affected. by (ii) the yield established for the farm, by (iii) 33%
per centum of the established price for rice, except that the Secretary shall make no payment pursuant to this sentence on a farm
from which acres were transferred under section 352(d) of the
Agricultural Adjustnlent Act of 1938, as amended, with respect to 7 USC 1352.
the transferred acreage.
"(C) Effective only with respect to the 1978 and 1979 c ~ p ofs Farm disaster
rice. if the Secretary determines that because of dron,zht. flood. or payments.
other natural disaster, or other condition beyond the control of the

91 STAT. 942

7 USC 1352.

Cropland setaside.

Eligibility.

Land diversion
payments.

Contracts.

Bids, submittal.

PUBLIC LAW 95-113-SEPT.

29, 1977

producers, the total quantity of rice which the persons involved
in producing rice on a farm are able to harvest on the acreage
allotments of producers on the farm or the farm acreage allotment
is less than the result of multiplying 75 per centum of the yield
established for the farm by the acreage within the allotment
planted to rice for harvest for such crop, the Secretary shall
make a farm disaster payment to the cooperators on the farm for
the deficiency in production below 75 per centum of the crop a t a
rate equal to 331/3 per centum of the established price for the
crop.
"(D) Any payment made under subparagraphs (B) and (C)
of this paragraph with regard to acres transferred under section
352(d) of the Agricultural Adjustment ,4ct of 1938, as amended,
shall be calculated with respect to the farm yield established on
the farm to which such acres were transferred.
" (5) The Secretary shall provide for a set-aside of cropland
if the Secretary determines that the total supply of rice will, in
the absence of such set-aside, likely be excessive taking into
account the need for an adequate carryover to maintain reasonable
and stable supplies and prices and to meet a national emergency.
If a set-aside of cropland is in effect under this paragraph, then
as a condition of eligibility for loans, purchases, and payments
under this subsection, the cooperators on a farm must set aside
and devote to conservation uses an acreage of cropland equal to
(i) such percentage of the farm acreage allotment as may be specified by the Secretary (not to exceed 30 per centum of the farm
acreage allotment), plus, if required by the Secretary, (ii) the
acreage of cropland on the farm devoted in preceding years to soil
conserving uses, as determined by the Secretary. The set-aside
acreage shall be devoted to conservation uses, in accordance with
regulations issued by the Secretary, which will assure protection
of such acreage from weeds and wind and water erosion;
ho\vevcr, the Secretary may permit, subject to such terms and conditions as the Secretary nlay prescribe, all or any part of the setaside acreage to be devoted to sweet sorghum, hay, and grazing or
the production of guar, sesame, safflolr-er, sunflower, castor beans,
mustard seed, crambe, plantago ovato, flaxseed, triticale, oats,
rye, or other commodity, if the Secretary determines that such
production is needed to provide an adequate supply of such commodities, is not likely t o increase the cost of the price support
prEgram. and will not adversely affect farm income.
(6) The Secretary may make land diversion payments to
cooperators, whether or not a set-aside for rice is in effect, if the
Secretary determines that such land diversion payments are necessary to assist in adjusting the total national acrea.ge of rice to
desirable goals. Such land diversion payments shall be made to
cooperators on a farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts
entered into by the Secretary with such cooperators. The amounts
payable to cooperators under land diversion contracts may be
determined through the submission of bids for such contracts by
cooperators in such manner as the Secretary may prescribe or
through such other means as the Secretary determines appropriate. I n determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 943

be undertaken by the cooperators and the productivity of the
acreage diverted. The Secretary shall limit the total acreage to be
diverted under agreements in any county or local community so
as not to affect adversely the economy of the county or local
community.
"(7) The set-aside acreage and the additional diverted acreage Consultation.
ma,v be devoted to wildlife food lots or wildlife habitat in conf o ~ r n ~with
y standards establishid by the Secretary in consultation with wildlife agencies. The Secretary may pay an appropriate Payment.
share of the cost of practices designed to carry out the purposes of
the foregoing sentence. The Secretary may provide for an additional p a y ~ ~ l e nont such acreage in an amount determined by the
Secretary to be appropriate in relation to the benefit to the general public if the cooperator agrees to permit, without other
compensation, access to all or such portion of the farm, as the
Secretary may prescribe, by the general public, for hunting,
trapping, fishing, and hiking, subject to applicable State and
Federal regulations.
"(8) I f the operator of the farm desires to participate in the Agreement,
program formulated under this subsection the operator shall file filing.
an agreement to do so no later than such date as the Secretary may
prescribe. Loans, purchases, and payments under this subsection
shall be made available to cooperators on such farm only if such
cooperators set aside and devote to approved soil conserving uses
an acreage on the farm equal t o the number of acres which the
operator of the farm agrees to set aside and devote to approved
soil conserving uses, and the agreement shall so provide. The Sec- Termination or
retary may, by mutual agreement with the cooperators on the modification.
farm, terminate or modify any such agreement entered into pursuant to this subsection if the Secretary determines such action
necessary because of any emergency created by drought o r other
disaster, or in order to alleviate a shortage in the supply of rice.
"(9) The Secretary shall provide adequate safeguards t o pro- Safeguards.
tect the interests of tenants and s ~ a r e c r o p p ~ rincluding
s,
provision for sharing, on a fair and equitable basis in payments under
this subsection.
"(10) I n any case in which the failure of a cooperator to comply fully with the terms and conditions of the program formulated
under this subsection precludes the makin of loans, purchases,
and payments, the Secretary may, neverthe ess, make such loans,
purchases, and pa.yments in such amounts as the Secretary
determines to be eauitable in relation to the seriousness of the
default.
"(11) The Secretary is authorized to issue such regulations Regulations.
as the Secretary determines necessary to carry out the provisions
of this subsection.
"(12) The Secretary shall carry out the program authorized by
this subsection through the Commodity Credit Corporation.
' L (13) The provisions of subsection 8 (g) of the Soil Conservation and Domestic Sllotment Act (relating to assignment of 16 USC 590h.
payments) shall apply to payments under this subsection.".

SUSPENSION O F MARKETING QUOTAS AND OTHER PROVISIONS

SEC.703. Sections 353, 354, 355, 356, and 377 of the Agricultural 7 USC 1353 note.
Adjustment Act of 1938, as amended, shall not be applicable t o the 7 USC 13531978 through 1981 crops of rice.
1356, 1377.

9 1 STAT. 944

PUBLIC LAW 95-113-SEPT.

29, 1977

DEFINITION O F COOPERATOR

Ante,

p. 939.

SEC. 704. The last proviso in the first sentence of section 408(b)
of the Agricultural Act of 1949, as added b section 303 of the Rice
Production Act of 1975, is amended by stri ing out "and 1977" and
inserting in lieu thereof "through 1981".

CONFORMING AMENDMENT

7 USC 1736b.

SEC.705. Section 408(m) of the AgricuIturaI Act of 1949, as added
by the Rice Production Act of 1975, to be effective for the 1976 and
1977 crops, shall be effective for the 1978 through 1981 crops, and
shall read as follows :

Post, p. 956.
7 USC 1736.
Ante* pp.

"(m) References made in sections 402,403,406, 407, and 416 to the
terms 'support price', 'level of support', and 'level of price support'
shall bc considered to apply as well to the level of loans and purchases
for rice under this Act; and references made to the terms 'price support9, 'price support operation', and (price support program' in such
sections and in section 401(a) shall be considered as applying as well
to the loan and purchase operations for rice under this Act.".

9279

939.
1431.

P. 956.

T I T L E VIII-PEANUTS
ANNUAL MARKETING QUOTA AND STATE ACREAGE ALLOTMENT

SEC.801. Section 358 of the Agricultural Adjustment Act of 1938;

7 USC 1358.
as amended, is amended as follows :
7 USC 1358 note.
(a) Subsections ( a ) and (e) shall not be applicable to the 1978
7 USC

through 1981 crops of peanuts.
(b) Subsection (c) (1) is amended, effective for the 1978 through
1981 crops of peanuts, by striking out the period at the end of the
second sentence and inserting in lieu thereof the following: ": Provided,That the peanut acreage allotment for the State of New Mexico
shall not be reduced below the 1977 acreage allotment as increased
pursuant to subsection ( c ) (2) of this section.".
NATIOX'SL ACREAGE ALLOTMENT ; NATIONAL POUNDAGE QUOTA ; FARM
POUNDAGE QUOTA ; AND DEFINITIONS

SEC.802. Effective for the 1978 through 1981 crops of peanuts, section 358 of the Agricultural Adjustment Act of 1938, as amended, is
amended bv adding at the end thereof new subsections (,k,) through
as follows :
(?'(k) The Secretary shall, not later than December t of each year,
announce a national acreage allotment for peanuts for the following
crop taking into consideration projected domestic use, exports, and a
reasonable carrvover: Provided. That such allotment shall be not less
than one milliog six hundred and fourteen thousand acres.
"(1) The Secretary shall, not later than December 1 of each year,
announce a minimum national poundage quota for peanuts for the
followinp marketing pear of the followlnp amounts : 1978, 1,680,000
tons ; 1979, 1,596.000 tons ; 1980, .1,516,000 .tons ; and 1981, 1,440,000
tons. I f the Secretary determines that the minimum national poundage
quota for any marketing year is insufficient to meet total estimated

Announcements.

PUBLIC LAW 95-113-SEPT.

29, 1977

requirements for domestic edible use and a reasonable carryover, the
national poundage quota for the marketing year may be increased by
the Secretary to the extent determined by t.he Secretary to be necessary
to meet such requirements.
"(m) For each farm for which a farm acreage allotment has been
established, a farm yield for peanuts shall be determined. Such yield
shall be equal to the average of the actual yield per acre on the far111
for each of the three crop years in which yields were highest on the
farm out of the five crop years 1973 through 1977: Provided, That if
peanuts were not produced on the farm in a t least three years during
such five-year period or there was a subst.antia1 change in the operation of the farm during such period (including, but not limited to,
a change in operator, lessee who is an operator, or irrigation practices), the Secretary shall have a ;yield appraised for the farnl. The
appraised yield shall be that amount determined to be fair and reasonable on the basis of yields established for similar farms which are
locatetl in the nrrn of the farni and on u-hich peanuts were produced,
taking into consideration land. labor. and eqnip~nentavailable for the
production of peanuts, crop rotation practices, soil and water, and
other relevant factors.
"(n) For each farm, a farm base production poundage shall be
established equal to the quantity determined by multiplying the farni
peanut acreage allotment by the farm yield determined in accordance
with subsection (m) of this section.
" ( 0 ) For each farm, a farm poundage quota shall be established by
the Secretary for each marketing year equal to the farm base proilnction poundage multiplied by a factor determined by the Secretary,
such that the total of all farm poundage quotas will equal the national
poundage quota for such marketing year. The poundage quota so
determined, beginning with the 1979 crop for any farm, shall be
increased by the number of pounds by which marketings of quota, peanuts from the farm during the immediately preceding marketing year
were less than the farm poundage qnota : Prozqided, That total marketings shall not exceed actual production from the farm acreage allotment: P?.oz*idedfurther, That the grower must have planted in such
preceding lnarketing year that part of the farm allotment estimated
on the basis of the farm yield to be sufficient to produce the total farm
poundage quota: Praorided fttrthpr. That if the total of all such
increases in individnal far111ponndaee quotas exceeds 10 per centum of
the national poundage quota for the marketing year, the Secretary
shall adjust such increases so that the total of all increases does not
exceed 10 per centum of the national poundage quota.
" ( p ) For the purposes of this part and title I of the Agricultural
Act of 1949, as amended" (1) 'guota peanuts' means, for any marketing year, any peanuts which are eligible for domestic edible use as determined by
the Secretary. which are marketed or considered marketer1 from
a farm, and which do not exceed the farm poundage quota of such
farm for such year;
" (2) 'additional peanuts' means, for any marketing year, any
peanuts which are marketed from a farm and which are In exccss
of the marlretings of quota peanuts from such farm for such year
but not in excess of the actual production of the farm tbcrcage
allotment;
" (3) 'cmsliing' means the processing of peanuts to ext,ract oil
for food uses and meal for feed uses, or the processing of peanuts

91 STAT. 945

Farm yield.

Farm base
production
poundage.
Farm poundage
quota.

Limitation.

Adjustment.

Definitions.
7 USC 1441.

91 STAT. 946

PUBLIC LAW 95-113-SEPT.

29, 1977

by crushing or otherwise when authorized by the Secretary; and
"(4) 'domestic edible use' means use for milling t o produce
domestic food peanuts and seed and use on a farm.".
SALE, LEASE, AND TRANSFER OF ACREAGE ALLOTMENT

7 USC 1358a.

SEC.803. Effective for the 1978 through 1981 crops of peanuts, section 358a of the Agricultural Adjustment Act of 1938, as amended, is
amended by(1) in subsection (a)(i) stl,il;ing out if he determines that it will not impair
the eflecrive operation of the. peanut ~ ~ ~ a r k e tquota
i n g or price
support l~sograi11.":and
(ii) strilcing out "may" each place that term appears and
inserting "sllnll" in lieu thereof: and
(2) adding nt the ciid thereof a new subsection (i) as follows:
"(i) Sot\vitllstnndin,rr any other provision of this section, transfers
shall be on the basis of the farm base prod~ictionpoundage, and the
acreage allot~nentfor the receiving farm shnll be increased by an
amount determined by dividing the number of pounds transferred by
the farm yield for the receil-ing farm, and the acreage allotment for
the transferring farm shall be reduced by an amount determined by
dividing the number of pounds transferred by the farm yield for th?
transferring farm.".

MARKETING PENALTIES

7 USC 1359.

Post, p. 947.

Penalty.

;

DISPOSITION O F ADDITION.114

PEANUTS

SEC.804. Effect,ive for the 19'78 through 1981 crops of peanut,^, section 359 of the Agricultural Adjustment Act of 1938, as amended, is
amended by(1) striking out in the first sentence of subsection (a) '"75 per
centum of the support price for" and inserting in lieu thereof
"120 per centum of the support price for quota";
(2) inserting after the first. sentence of subsection (a) a new
sentence as f o l l o ~ s "The
:
marketing of any additional peanuts
from a farm shall be subject to the same penalty unless the peanuts, in accordance with regulations established by the Secretary.
are placed under loan a t the additional loan rate under the loan
program made available under sec.tion 108 (b) of the Agricultural
Act of 1949 and not redeemed by the prodncers or are marketed
under contracts between handlers and producers pursuant to the
provisions of subsection (i) of this section.":
(3) striking. out "normal yield" in subsection (a) and inserting
in lieu thereof "farm yield"; and
(4) adding at the end thereof new snbsections ( f ) through ( j )
as fo1lon.s :
" ( f ) Only quota peanuts may be retained for use as seed or for other
uses on a farm and when so retained shall be considered as mnrlretings
of quota peanuts. Additional peanuts shall not be retained for use on
a farm and shall not be marlreted for dolnestic edible use. Seed for
planting of any peanut acreage in the TTnited States shall be obtained
solely from quota peanuts marlreted or considered marketed for
domestic edible use.
" ( g ) Upon a finding by the Secretary that the peanuts marketed
from any crop for domestic edible use by a handler are larger in quantity or higher in grade or quality than the peanuts that could rcasonably be produced from the quantity of peanuts having the grade,

PUBLIC LAW 95-113-SEPT.

29, 1977

9 1 STAT. 947

kernel content, and quality of the quota peanuts acquired by such
handler from such crop for such marketing, such handler shall be subject to a penalty equal to 120 per centum of the loan level for quota
peanuts on the peanuts which the Secretary determines are in excess
of the quantity, grade, or quality of the peanuts that could reasonably
have been produced from the peanuts so acquired.
"(h) The Secretary shall require that the handling and disposal of
additional peanuts be supervised by agents of the Secretary or by area
marketing associations designated pursuant to section 108(c) of the
Agricultural Act of 1949. Quota and additional peanuts of like type infa.
and segregation or quality may, under regulations prescribed by the
Secretary, be commingled and exchanged on a dollar value basis to
facilitate warehousing, handbng, and marketing.
" (i) Handlers may, under regulations prescribed by the Secretary, Contracts.
contract with producers for the purchase of additional peanuts for
crushing, export, or both. All such contracts shall be completed and
submitted to the Secretary (or if designated by the Secretary, the area
association) for approval prior to June 15 of the year in which the
crop is produced.
"(i) Subject to the provisions of sction 407 of the Agricultural Act
of 1949, as amended, any peanuts owned or controlled by the Com- Ante, p. 927,
modity Credit Corporation may be made available for domestic edible 939use in accordance with regulations established by the Secretary. Additional peanuts received under loan shall be offered for sale for
domestic edible use at prices not less than those required to cover all
costs incurred with respect to such peanuts for such items as inspection,
warehousing, shrinkage. and other expenses, plus (1) 100 per centum
of the loan value of quota peanuts if the additional peanuts are sold
and paid for during the harvest season upon delivery by the producer,
or (2) 105 per centunl of t,he loan value of quota peanuts if the additional peanuts are sold after delivery by the producer but not later
than December 31 of the marketing year, or (3) 107 per centum of the
loan value of quota peanuts if the additional peanuts are sold later
than December 31 of the marketing year.".
REPORTS AND RECORDS

SEC.805. Effective for the 1978 through 1981 crops of peanuts, the
first sentence of section 373 (a) of the Agricultural Adjustment Act of
1938, as amended, is amended by inserting immediately before ''all 7 USC 1373.
brokers and dealers in peanuts" the following: "all farmers engaged
in the production of peanuts,".
PRESERVATION O F UNUSED ALLOTMENTS

SEC.806. Effective for the 1978 through 1981 crops of peanuts,
section 377 of the Agricultural Adjustment Act of 1938, as amended, 7 USC 1377.
is amended by inserting after the words "farm acreage allotment for
such year" the followmg: "or, in the case of peanuts, an acreage
sufficient to produce 75 per centum of the farm poundage quota".
PRICE SUPPORT PROGFiAM

SEC.807. Effective for the 1978 through 1981 crops of peanuts, title I
of the Agricultural Act of 1949, as amended, is amended by adding at
the end thereof a new section 108 as follows:

91 STAT. 948

PUBLIC LAW 95-113-SEPT.

29, 1977

"SEC.
108. Xotwithstanding any other provision of law"(a) The Secretary shall make price support available to producers
through loans, purchases, or other operations on quota peanuts for
each of the 1978 through 1981 crops at such levels as the Secretary
finds appropriate, takin.g into consideration the eight factors specified
7 USC 1421.
in section 401(b) of this Act, and any change in the index of prices
paid by farmers for production items, interest, taxes, and wage rates
durin the period beginning January 1 and endin.. December 31 of
the cafendor gear immediate1 preceding the nmrlretmg year for which
the level of support is being jetermined. but not less than $420 per ton.
The levels of support so announced shall not be reduced by any deducAdjustments.
tions for inspection, handling, or storage: Procided, That the Secretary may make adjustments for location of peanuts and such other
adjustments as are authorized by section 403 of this Act.
7 USC 1423.
"(b) The Secretary shall make price support available to producers
through loans, purchases, or other operations 011 additional peanuts
for each of the 1978 through 1981 crops. I n determining support levels,
the Secretary shall take into consideration the demand for peanut oil
and peanut meal, expected prices of other vegetable oils and protein
meals, and the demand for peanuts in foreign marltets. The Secretary
shall announce the level of support for additional peanuts of each crop
not later than February 15 preceding the marketing year for which the
level of support is being determined.
Warehouse
"(c) (1) I n carrying out subsections (a) and (b) of this ~ection.the
storage loans.
Secretary may make warehouse storage loans available in each of the
three prodncinp areas (described in 7 CFR 8 1446.4 (1977) ) to a designated area marketing association of peanut producers which is selected
and approved by the Secretary and which is operated primarily for
the purpose of conducting such loan activities. Such associations may
be used in administrative and supervisory activities relating to price
support and marketing activities under this section and section 359 of
Ante, p. 946.
the Apricnltnral Adiustment Act of 1938, as amended. Such loans
shall include3in addition to the price support value of the peanuts, such
costs as snch association reasonably may incur in carrying out such
responsibilities in its operations and activities under this section and
section 359 of the ,4gricultural Adjustment Act of 1938, as amended.
Pools,
"(2) The Secretary map require that each such association establish
establishment.
pools and maintain complete ancl accurate records by type for nuota
Record retention. peanuts handled nndcr loans and for additional peannts prodnced
~vithonta contract between handler and producer described in section
Net gains.
359(i) of the Agricultural Adj~lstmrnt-4ct of 1938. Net gains on peanuts in each pool. unless otherwise approved by the Secretary, shall be
distributed in proportion to the value of the peanuts placed in the pool
by each grower. Net gains for peanuts in each pool shall ronsist of ( A )
for quota peanuts, the ne,t pains over and above the loan indebtedness
ancl other costs or losses incurred on peanuts placed in sncl~pool plus
an amount from the pool for additional peannts to the extent, of the
net gains from the sale for domestic food and related uses of additional peanuts in the pool for additional peanuts equal to any loss on
disposition of all peanuts in the pool for quota peanuts and ( R ) for
additional pcannts, the net gains over and above the loan indebtedness
and other costs or losses incurred on peanuts placed in the pool for
additional peanuts less any amot~ntallocated to offset any loss on the
7 USC 1445c.

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 949

pool for quota peanuts as provided in clause (A) of this paragraph.
Yotwithstanding any other provision of this subsection, any distribution of net gains on additional peanuts of any type to any producer
shall be reduced to the extent of any loss by the Commodity Credit
Corporation on quota peanuts of a different type placed under loan
by such grower.".
T I T L E IX-SOPBEASS

A S D SUGAR

SOYBEAX PRICE SUPPORT

SEC.901. Effective only with respect to the 1978 through 1981 crops
of soybeans. section 201 of the Agricultural Act of 1949, as amended,
is amended by(1) inserting in the first sentence after "tung nuts," the following : "soybeans," ; and
(2) adding at the end thereof a new snbsection ( e ) as follow-s:
" ( e ) The price of the 1978 through 1981 crops of soybeans shall be
srlpportrd tllroi~pllloans and purchases at such levels as the Secretary
determines appropriate in relation to conlpeting commodities and taliing into consideration domestic and foreign supply and demantl facThat notwithstancling the provisions of s ~ c t i o n1001 of
tors : P~>o?*iclad.
the Food and Agriculture Act of 1977, the Secretary shall not require
a set-aside of soybean acreage as a condition of eligibility for price support for any conunodity supported under the provisions of this Act.".

Ante, p. 920.

SUGAR PRICE SUPPORT

SEC.902. Effective only with respect to the 1977 and 1978 crops of
sugar beets and sugar cane, section 201 of the Agricultural ,4ct of 1949,
as amended, is alnended by(1) striking out in the first sentence "honey, and millr" and
inserting in lieu thereof the following: "honey, milk, sugar beets,
and sugar cane"; and
(2) adding a t the end thereof a new subsection ( f ) as follo~rs:
" ( f ) (1) The price of the 1977 and 1978 crops of sugar beets and
sugar cane, respectively. shall be supported through loans or purchases
it-it11 respect to the processed products thereof at a level not in excess
of 65 per centunl nor less than 52.5 per centum of the parity price thrrefor : Prol.ided, That the support level may in no event be less than 13.5
cents per pound raw sugar equivalent. I n carrying out the prlce sup- Minimum wage
port program authorized by this subsection, the Secretary shall estab- rates,
lish nlinimnm wage rates for agricultural employees engaged in the establishment.
production of sugar.
" ( 2 ) Notwithstanding any other provision of law, the Secretary Suspension.
may suspencl the operation of the price support program authorized by
this subsection whenerer the Secretary determines that an international sugar agreement is in effect which assures the maintenance in the
United States of a price for sugar not less than 13.5 cents per pound
ram sugar equivalent.
<'(3) Nothing in this subsection shall affect the authority of the
Secretary to establish under any other provision of law a price support program for that portion of the 1877 crop of sugar cane and sugar
beets marketed prior to the implementation of the program authorized
by this sibsection.".

9 1 STAT. 950

PUBLIC LAW 95-113-SEPT.

SET-ASlDE

29, 1977

O F NORMAI,I,Y PLANTED ACREAGE

SEC.1001. Notwithstanding any other provision of law, whenever
a set-aside is in effect for one or inore of the 1978 through 1981 crops of
wheat, feed grains, upland cotton, and rice, the Secretary of Agnculture, may require, as a condition of eligibility for loans, purchases. and
1421note. payn~entsunder the Sgricultural Act of 1949, as amended, that the
acreage norlnally planted to crops designated by the Secretary,
adjusted as deemed necessary by the Secretary to be fair and equitable
among producers, shall be reduced by the acreage of set-aside or
tlivers~on.

7 USC 1309.

A X B R I C A S AORIC,ULTURE PROTECTIOS PROCIZ.iM

7 USC 1310.

"Commodity."

Q E ~ ' .10.02. ( a ) Yotwithstanding any other provision of law, wliencxver the President or any other nlenlber of the execiitive 1)ranch of the
Federal Government causes to be suspended, based upon s detern~ination of short supply, t,he commercial export sales of any co~nmodity,as
defined in subsection (c) of this section, to any country or area with
~vhichthe United States otherwise continues com~ncrcialtrade, the
Secretary of Agriculture shall, on the day the s~ispensiollis initiated,
set the loan level for such commodity under the Agricultnral Act of
1949, as amended. if a loan program is in effect for the conunodity, at
00 per centunl of the parity price for the commodity, as such parity
p i c e is determined on the day the suspension is initiated.
(b) Any loan level established pursuant to subsection ( a ) of this
section shall remain in effect as long as the suspension of colnlnercial
export sales described in subsection (a) remains in effect.
(c) F o r purposes of this section, the term "commodity" sliall include
a n y of the following: wheat, corn. grain sorglinm, soybeans, oats, rye,
barley. rice, flasseed?and cotton.
BUDGET AMENDMENT

Price supports.
7 USC 1447.

7 USC 1446.

SEC.1003. ( a ) Effective only with respect to the 1978 tlirougll 1981
crops, section 801 of the Agricultural Act of 1949 is amerided by adding a t the end thereof a new sentence as follows: "The Se,cretary is
authorized to make price support available under this title for the 1978
through 1981 crops of flaxseed, dry edible beans, gum naval stores, and
in the case of the 1979 through 1981 crops, sugar beets and sugar cane,
and for any other nonbasic commodity not designated in title 11,
except that such authority shalI terminate with respect to any colnmodity, other than those listed in this sentence, a t the end of any crop
year in which the net outlays for the commodity exceed $50 nill lion.".
(b) The amendment made by this section to the Agricultural Act of
1949 shall not be operative in any manner with respect to any price
support program in effect on the date of enactment of this ,2ct.
SPECIAL GRAZING AND H 4 Y PROGRAM

7 USC 1445d.

SEC.1004. Title I of the Agricultnral Act of 1949, as aiiiended, is
amended by adding a t the end the.reof a new section 109 as follows:
"SEC.109. Notwithstanding any other provision of law" (a) The Secretary is authorized to administer a. special wheat acreage grazing and hay program (hereinafter in this section refer-red to as
the 'special program') in each of the crop gears 1978 through 1081.

PUBLIC LAW 95-113-SEPT.

29, 1977

Under the special program, a producer shall be permitted to designate,
under such regulations as established by the Secretary, a portion.of the
acreage on the farm intended to be planted to wheat, feed grams, or
upland cotton for harvest, not in excess of 40 per centum thereof, or
50 acres, whichever is greater, which shall be planted to wheat or some
other commodity other than corn or grain sorghum) and use$ by the
producer for grazing purposes or hay rather than for commercial grain
production. A producer who elects to participate in the special program
shall receive a payment as provided in subsection (c) of this section.
.'(b) Any producer 11-110 elects to participate in the special prograiii
under this section shall designate the specific acreage on the farm which
is to be used for the purposes set forth in subsection ( a ) of this section.
S o crop other than hay may be harvested from acreage included in the
special program.
" (c) The Secretary shall pay the producer participating in the special program an amount determined by inultiplying the farm program
payment yield for wheat established for the farm, by the number of
acres included in the special program. by a rate of payment determined
by the Secretary to be fair and reasonable. The producer shall not be
eligible for any other payment or price support on any portion of the
acreage for the farin \ ~ h i c hthe producer elects to include in the special
program.
" ( d ) Acreage included in the special program shall be in addition to
any acreage inclucled in any acreage set-aside program otherwise provided for by law.
"(e) The Secretary is authorized to issue such regulations as the
Secretary deternliiles necessary to carry out the provisions of this
section.
" ( f ) The Secretary shall carry out the special program through the
Comn~odityCredit Corporation.".

91 STAT. 951
Acreage,
designation.

Payment.

Regulations.

DAILY RELEASE O F REPORTS O F EXPORT SALES O F AGRICELTCR.1L

COJfJIODITIES

SEC.1005. Section 812 of the Agricultural Act of 1970 is amended 7
by inserting immediately after the third sentence thereof a new sentence as follows: "TVhen the Secretary requires that such information
be reported by exporters on a daily basis, the information compiled
from individual reports shall be made available to the public daily.'!.

usc 612~-3.

FILBERTS

SEC.1006. Section 8e of the Agricultural Adjustment Act, as
reenacted and amended by the Agricultural Marketing Agreement Act
of 1937, is amended by inserting after "oranges, onions, walnuts, 7
dates," the following: "filberts,".
T I T L E XI-GRAIN

use 60ge-1.

RESERVES

PRODCCER STORAGE PROGRAM FOR WHEAT AND FEED GRAINS

SEC.1101. Title I of the Agricultural Act of 1949, as amended, is
amended by adding at the end thereof a new section 110 as follows:
"SEC.110. (a) The Secretary shall formulate and administer a program under which producers of wheat and, in the discretion of the
Secretary, producers of feed grains will be able t o store wheat and

USC

91 STAT. 952
Safeguards.

Terms and
conditions.

Waiver.

Announcement.

Restriction.

PUBLIC LAW 95-1 13-SEPT.

29, 1977

feed grains when such commodities are in abundant supply and extend
the time period for their orderly marketing. The Secretary shall establish safeguards to assure that wheat and feed grains held under the
program shall not be utilized in any manner to unduly depress, manipulate, or curtail the free market. The authority provided by this section shall be in addition to other authorities available to the Secretary
for carrying out producer loan and storage operations.
"(b) I n carrying out the producer storage program, the Secretary
may provide original or extended price support loans for wheat and
feed grains at the same level of support as provided by this Act under
terms and conditions d e s i p e d to encourage producers to store wheat
and feed grains for ext,ended periods of time in order to promote
orderly marketing when wheat or feed prains are in abundant supply.
.$mong such other terms and conditions as the Secretary may prescribe
by regulation. tlie program shall provide for (1) repayment of such
loans in not less than three years nor more than fir-e years; ( 2 ) payment to producers of such anlounts as the Secretary determines appropriate to cover the cost of storing v-heat and feed grains held under the
program; (3) a rate of interest determined by the Secretary based
upon the rate of interest charged the Commodity Credit Corporation
by the United States Treasury. except that the Secretary mag waive or
: ~ d j i ~such
s t interest: (4)recovery of amolmts paid for storage, and for
the payment of additional interest or other charges in the event such
loans are repaid by prodncers before the market price for wheat or
feed prains has reached the price levels specified in clause ( A ) of this
snhsection: (5) conditions designed to induce producers to redeem
and market the wheat or feed grains securing s ~ ~ cloans
h
without
repard to the maturity dates thereof ~rheneverthe Secretary determines thnt the market price of wheat has attained a specified level
which is not less than 140 ner centnm nor more than 160 per centnm
of the then current level of price support for ~ v l ~ e or
a t s~ichappropriate level for feed prains, as determined by the Secretary; and (6)
conditions prescribed by the Secretary under ~rhichthe Secretary may
require prodncers to repay such loans, plus accrued interest thereon.
refnnd amounts paid for storage. and pay such additional interest and
other charges as may be required by repnlation, whenever the Secretary determines that the niarlret price for the commodity is not less
than 175 per centum of the then current. level of price support for
wheat or snch a p ~ r o p r i a t elevel for feed grains as determined by the
Secretary under this Act.
"(c) The Secretary shall annonnce the t e r m and conditions of the
producer storage program as far in advance of malring loans as practicable. I n ~ n c hannonncement. the Secretary shall specify tlie quantity
of wheat or feed prains to be stored under the program whirl1 the Secretnry determines anpropriate to promote the orclerly marketing of
snch con~modities.The quantity of wheat shall not be less than three
hi~ndredn~illionbushels nor Inore than seven hundred million bushels :
Provjrl~d,That siich maximnm amount may be adjnstcd by the Secretary as necessary t o meet snch commitments as niay be assumed by the
TTnitetl St2te.c:pursuant to an int~rnationnlagreement containing provisions relating to grain reserves.
"(d) NotWitllstanding any other provision of law, whenever the
extended loan program authorized by this section is in effect. the C0111modity Credit Corporation may not sell nnv of its stoclis of wheat or
feed prains at less than 150 per centuln of the then current level of
price support for sr~chcommodity: Ppo~+ided,
That such restriction
shall not apply to-

PUBLIC LAW 95-113-SEPT.

29, 1977

"
sales of such commodities which have substantially deteriorate in quality o r as to which there is a danger of loss or waste
through deterioration or spoilage ;and
"(2) sales or other disposals of such commodities under (A) the
fifth and sixth sentences of section 407 of this Act; (B) the Act
of September 21, 1959 (73 Stat. 574, as amended; 7 U.S.C. 1427
note), and (C) section 813 of the Agricultural Act of 1970.
"(e) The Secretary may, with the concurrence of the owner of grain
stored under the program authorized by this section, reconcentrate all
such grain stored in commercial warehouses a t such points as the Secretary deems to be in the public interest, taking into account such factors as transportation and normal marketing patterns. The Secretary
shall permit rotation of stocks and facilitate maintenance of quality
under regulations which assure that the holding producer or warehouseman shall, at all times, have available for delivery a t the designated place of storage both the quantity and quality of grain covered
by his commitment.
" ( f ) Whenever grain is stored under the provisions of this section,
the Secretary may buy and sell a t an equivalent price, allowing for the
customary location and grade differentials, substantially equivalent
quantities of grain in different locations or warehouses to the extent
needed to properly handle, rotate. distribute, and locate such commodities which the Commodity Credit Corporation owns or controls. Such
purchases to offset sales shall be made within two market daysfollowing the sales. The Secretary shall make a daily list available showing
the price, location. and quantity of the transactions.
"(g) The Secretary shall use the Commodity Credit Corporation,
to the extent feasible, to fulfill the purposes of this section. I n addition, to the maximum extent practicable consistent with the fulfillment
of the purposes of this section and the effective and efficient administration of this section, the Secretary shall utilize the usual and customary
channels, facilities, and arrangements of trade and commerce.".

91 STAT. 953

7 USC 1427.
P. 927.
Iafra.
Grain
reconcentration.

Ante,

Purchases.

Daily list.

INTERNATIONAL ENERGENCY FOOD RESERVE

SEC.1102. Title I of the Agricultural Act of 1949, as amended, is
a~nendedby adding a t the end thereof a new section 111as follows:
"SEC.111. The President is encouraged to enter into negotiations Negotiationswith other nations to develop an international system of food reserves Reserve system,
to provide for humanitarian food relief needs and to establish and
USC
maintain a food reserve, as a contribution of the United States toward
the development of such a system, to be made available in the event
of food emergencies in foreign countries. The reserves shall be known
as the International Emergency Food Reserve.".
DISASTER RESERVE

SEC.1103. Section 813 of the Agricultural Act of 1970, as added
by the Agriculture and Consumer Protection Act of 1973, is amended 7 USC 14278.
as follows :
(a) Subsection (b) is amended to read as follows:
Commodity
" (b) The Secretary shall acquire such commodities through the price acquisition.
support program. However, if the Secretary determines that no wheat,
feed grains, or soybeans are available through the price support pro-

9 1 STAT. 9 5 4

Commodity
disposition.

Ante, pp. 927.
939.

PUBLIC LAW 95-113-SEPT.

29, 1977

gram at locat,ions where they may be economically utilized to alleviate
distress caused by a natural disaster, the Secretary is authorized to
purchase through the facilities of the Commodity Credit Corporation
such wheat, feed grains, soybeans, hay, or other livestock forages as
the Secretary deems necessary for disposition in accordance with the
authority provided in subsection (d) of this section. The Secretary
may acquire wheat, feed grains, soybeans, hay, or other .livestocIr
forages at such locations, a t such times, and in such quantities as the
Secretary finds necessary and appropriate and may pay such transportation and other costs as may be required to permit disposition of such
wheat, feed grains, soybeans, hay, and other livestock forages under
subsect,ion ( d ) of this section.".
(b) Subsection ( d ) is amended to read as follows:
'<( d ) The Secretary is also authorized to dispose of such commodities
only for (1) use in relieving distress (A') in any State, the District
of Columbia, Puerto Rico, Guam, or the Virgin Islands of the United
States, ( R ) in connection with any major disaster or emergency
determined by the President to warrant assistance by the Federal
Government under the Disaster Relief Act of 1974 (88 Stat. 143, as
amended; 42 U.S.C. 5121), and (C) in connection with any emergency determined by the Secretary to warrant assistance under section
407 of the Agricult~uralAct of 1949 (63 Stat. 1055, as amended; 7
U.S.C. 1427). the Act of September 21,1959 (73 Stat. 574, as amended;
7 1T.S.C. 1427 note), or section 1105 of the Food and Agriculture Act
of 1977: or (2) use in connection with a state of civil defense emergency as proclaimed by the President or by concurrent resolution of
the Congress in accordance with the provisions of the Federal Civil
Defense Act of 1950, as amended (50 U.S.C. App. 2251-2297).".
FARM STORAGE FACILITY LOANS

Limitations.

SEC.1104. Effective only with respect to the fiscal years beginning
October 1, 1977, and ending September 30, 1981, sectSon 4 ( h ) of the
Commodity Credit Corporation Charter Act (62 Stat.. 1070, as
amended: 15 1T.S.C. 714b(h)) is amended by inserting immediately
before the period at the end of the second sentence the following:
" :And prozlided further, That to encourage the storage of dry or high
moisture grain, soybeans, and rice, and high moisture forage and
silage on farms, where the commodities can be stored a t the lowest
cost, the Corporation shall-during the period beginning October 1.
1977, and ending September 30, 1981-make secured storage facility
loans not to exceed $50,000 to growers of such commodities in amounts
not less than 75 per centum of t.he total construction cost of such facility, including but not limited to the cost of structural and equipment
foundations. electrical systems, grain handling systems, drying equipment, and site preparation, or. in the discretion of the Corporation,
such loans may be made in such amounts not to exceed $50,000 to cover
remodeling costs of existing storage fncilities, as are set forth in regulations issued by the Secretary: the size of such facility for which a
Ioan is obtained shall be based upon the amount of space required to
store the quantity of the commodity estimated to be produced by the
borrower during a two-year period; such loans shall be for a period
not to exceed ten years a t an interest rate based upon t,he rate of interest charged the Corporation by the United States Treasury; and the
loans shall be deducted from the proceeds of price support loans or
purchase agreements made between the Corporation and the growers".

PUBLIC LAW 95-113-SEPT.
EMERGExCY

29, 1977

91 STAT. 955

FEED PROGFUM

SEC. 1105. ( a ) Sot~r-ithstandinpany other provision of law, the
Secretary of Agriculture may implement an emergent? feed prpgram
for assistance in the preservation and maintenance of l~vestockin any
area of the United States. including Puerto Rico. Guam. and the Virgin Islands of the United States, where, because of flood, drought,
fire, hurricane. earthquake, storm, or other natural disaster. the Secretary determines that an emergency exists.
(b) The Secretarv shall not provide. assistance under this section to
any person unless all of the following conditions created by the emergency are present :
(1) The person has suffered a substantial loss in the livestock
feed normally produced on the farm for such person's livestock;
(2) The person does not hare sufficient feed for such person's
livestock for the estimated period of the emergency; and
(3) The person is required t.0 make feed purchases during the
period of the emergency in quantities larger than such person
would normally make.
(c) Persons eligible for assistance under the program formulated
under this section may be reimbursed for not to exceed 50 per centum
of the cost of the feed purchased by such eligible persons during the
period of emergency, as announced bv the Secretary of Agriculture,
or a t such lower rate as may be established by the Secretary.
(d) Any person who disposes of any feed for ~ ~ h i such
c h person is
reimbursed under this section. in any manner other than as authorized
by the Secretary, shall be subject to a penalty equal to the market
value of the feed involved. to be recovered by the Secretary in a civil
suit brought for that purpose. Tn addition, such person shall be subject to a fine of not, more than $10,000. or imprisonment for not more
ihan one year, or both.
(e) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this section.
( f ) The Secretam shall carry out the program authorized by this
section through the Commodity Credit Corporation.
( g ) Notwithstanding any other provision of law, the Secretary
shall not delegate the authority to administer the emerge.ncy feed
program to any other department. agency, or entity, public or private.

7 UsC 2267.

Conditions.

Penalty.

Regulations.

B r T H O R I T Y FOR THE COM3fOI)ITY CREDIT CORPORATIOX TO 4 C T AS
PURCHASISG OR SHIPPISC A G E S T UNDER TITLE I

SEC.1201. Section 102 of the Agricultural Trade Development and
Assistance Act of 1954, as amended. is amended by inserting immedi- 7 USC 1702.
ately before the period at the end thereof the following: "and, when
requested by the purchaser of such commodities, may serve as the purchasing or shipping agent, or both, in arranging the purchasing or
shipping of such commodities".
TITIZ I SALES PROCEDURES

SEC.1202. Title 1 of the Agricultural Trade Development and
Assistance Act of 1954, as amended, is amended by adding a t the end
thereof a new section 115 as follows :

9 1 STAT. 956

PUBLIC LAW 95-113-SEPT.

29, 1977

"SEC.115. (a) NO plirchases of food commodities shall be financed
under this title unless they are made on the basis of an invitation for
bid pub1icl;v advertised jn the TTnited Stat,rs and on the basis of bld
offerings which shall conform to such invitation and shall be received
and publicly opened in the United States. All a\varcls in the purchase
of conlmodities financed under this title shall be consistent with o en,
competitive. and responsive bit1 procetlures, as determined by the ecretary of Agriculture. Conimissions, fers, or other payments to any
selling agent shall- unless IT-aiveclby the Secretary-be prohibited in
any purchase of food commodities financed under this title.
Payment, reports
" ( b ) PTot\i*ithstanding any other provision of law, any commission,
to Secretary.
fee, or other con~pcnsationof any kind paid or to be paid by any supplier of a commodity or ocean transportation financed by the Commodity Credit C o r ~ ~ o r a t i olulder
n
this title. to any agents, brokers! or
other representatives of the importer or importing country, including
a corporation owner1 or co~ltrolledby the importer or the government
of the importing country, shall be reported to the Secretary of Agrlculture by the supplier of the commoclity or ocean transportation. The
report shall identify the person or entity to whom the payment.1~made
and the transaction in connection wit11 which the payment IS made.
Information,
The Secretary shall maintain such information for public ~nspect,ion,
availability to
pnblish a report the?,eof annually, and forward a copy of the report to
public.
the Committee on dpricnltnre xnd the Committee on Internationnl
Publication.
Relations of thr House of Representativrs and the Committee on AgriTransmittal to
cnlture. N~itrition,and Forestry of the Senate. Any supplier of a comcongressional
modity or ocean transportation 11-1io fails to file such a report or who
committees.
files
a false report shall be ineligible to furnish-directly
or indiPenalty.
rectly-commodities or ocean transportation financed under this title
for a period of five years.".
Bids.
7 USC 1715.

INCREASED APPROPRIATION LIMIT FOR TITLE I1

7 USC 1724.

SEC.1203. Section 204 of the Agricnltural Trade Development and
Assistance Act of 1054, as amended, is amended by striking out
"$6On,O00.0OO" in the first sentence and inserting in lieu thereof
"$750,000,000".
AVAILABILITY O F COMMODITIES

7 USC 1731.

Sec. 1204. Section 401(a) of the Agricultural Trade Development
and Assistance Act of 1964, as amended, is amended by striking out
the period at the end of the last sentence and inserting in lieu thereof
a comma and the following: "unless the Secretary of Agriculture
determines that some part of the supply thereof should be used to
carry out urgent humanitarian purposes of this Act,.".
F I S A N C I N G THE SALE O F FOOD A N D FIBER COMMODITIES

7 USC 1732.

SEC.1205. Section 402 of the Bgricultural Trade Development and
Assistance Act of 1954, as amended, is amended by adding a t the end
thereof a new sentence as follows: "In the allocation of funds made
available under title I of this Act, priority shall be given to financing
the sale of food and fiber commodities.".
VALUATION O F COMMODITIES ACQUIRED THROUGH PRICE SUPPORT PROGRAM6

7 USC 1733.

SEC.1206. Section 403 of the Agricultural Trade Development and
Assistance Act of 1954, as amended, is amended by(1) inserting " ( a ) " immediately after the section designation;
and

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 957

(2) adding at the end thereof a new subsection (b) as follows:
"(b) Notwithstanding any other provision of law, in determining the reimbursement due the Commodity Credit Corporation for
all costs incurred under this Act, commodities from the Commodity
Credit Corporation inventory, which mere acquired under a domestic
price support program, shall be valued at the export market price
therefor, as determined by the Secretary of Agriculture, as of the
time the coniniodity is made available under this Act.".
REVISED RECUL.\TIONS

GOVERNING OPERATIONS ; BAGGED COMMODITIES

SEC.1207. Section 408 of the Agricultural Trade Development and
Assistance Act of 1954, as amended, is amended by adding a t the end 7 USC 1736b.
thereof new subsections ( d ) and (e) as follows :
" ( d ) (1) Not later than six months following the date of enactment of this subsection, and at each two-year interval thereafter, the
Secretary of Agriculture shall issue revised regulations governing all
operations under title I of this Act, including. operations r e l ~ t i n gto
purchasing countries, suppliers of cornmoditles or ships, and purchasing or shipping agents. The repillations shall include, but not be
limited to, prohibitions against conflicts of interest, as determined by
the Secretary, between ( A ) recipient countries (or other purchasing
entities) and their agents, (B) suppliers of commodities, (C) suppliers of ships, and (D) other shipping interests.
"(2) The regulations shall be designed to encourage an increase in
the number of exporters participating in the program.
" ( 3 ) All revised regulations governing operations under title I and Transmittal to
title I11 of this Act shall be transmitted to Congress by the Secretary
7 USC 1701,
as soon as practicable after their issuance.
"le) lIagged commodities for the purpose of financing by the Commodity Credit Corporation under this Act may, subject to regulations
issned by the Secretary of Agriculture, be considered 'exported' upon
delivery a t port, and upon presentation of a dock receipt in lieu of an
on-board bill of lading.".
EXTENSION OF THE PROGRAM

SEC.1208. Section 409 of the Agricultural Trade Development and
Assistance Act of 1954, as amended, is amended by striking out "1977." 7 USC 1736~.
and inserting in lieu thereof the following: "1981. New spending
authority provided for title I of this Act by the amendment ,tothis section made by the Food and Agriculture Act of 1977 shall be effective
for any fiscal year only to such extent or in such amounts as are provided i'n appropriation Acts.".
SEC.1209. It is the sense of Congress fhat there be no discrimination 7 USC 1691note.
between "price-supported" and "nonprice-supported" commodities in
the programing of commodities under the Agricultural Trade Devel7 USC 1691 et
opment and Assistance Act of 1954, as amended (Public Law 480).
seq.

SPECIAL TASK FORCE ON THE OPERATION O F PUBLIC LAW 4 8 0

given 7 USC 1691note.
SEC.1210. (a) It is the sense of Congress that attention
to handling, storage, transportation, and administrative procedures
in order to make improvements in the operation of the Agricultural

91 STAT. 958
7 USC 1691 et
seq.

Appointment.
Review and
report.

Report to
Congress.
Legislative
recommendations.

PUBLIC LAW 95-113-SEPT.

29, 1977

Trade Developlnent and Assistance Act of 1954, as amended (Public
Lam 480). Toward this objective, the Secretary of Agriculture shall
appoint a special task force to review and report upon the administration of the Act.
(b) Such review shall include, but not be limited to, organizational
arrangements for the administration of Public Law 480, or parts
thereof, title I allocation criteria and procedures, quality control,
including handling and storage through the first stage of distribution
in the recipient country, and regulation of businesses and organizations
to which services are contracted under Public Law 480.
(c) Not later than eighteen months following enactment of this Act,
the Secretary of dgricultllre shall transmit to Congress the report of
such task force, along with administrative actions the Semcretary has
taken or intends to take as a result of such report, and recommendations, if any, for legislative changes.
TITLE XIII-FOOD STAMP AND COMMODITY
DISTRIBUTION PROGRAMS
FOOD STAMP ACT OF 1 9 6 4 AMENDMENTS

Effective date.
7 USC 2011 note.

SEC.1301. Effective October 1, 1917, the Food Stamp Act of 1964,
as amended, is amended to read as follo~rs:
"SHORT TITLE

Food Stamp Act
of 1977.
7 USC 2011 note.

"SECTION1. This Act may be cited as the 'Food Stamp Act of 1977'.

7 USC 2011.

"SEC.2. I t is hereby declared to be the policy of Congress, in order to
promote the general velfare, to safeguard the health and well-being
of the Nation's population by raising levels of nutrition among lowincome households. Congress hereby finds that the limited food purchasing po-rer of low-income households contributes to hunger and
malnutrition among members of such households. Congress further
finds that increased utilization of food in establishing and maintaining
adequate national levels of nutrition will promote the distribution in a
beneficial manner of the Nation's agricllltural abundance and will
strengthen the Nation's agricultural economy, as well as result in
more orderly marketing and distribution of foods. To alleviate such
hunger and malnutrition, a food stamp program is herein authorized
which \rill permit low-income ho~lsel~olds
to obtain n more nutritious
diet through normal channels of trade by increasing food purchasing
power for all eligible households who apply for participation.

7 USC 2012.

L'S~
3. ~
AS. used in this Act, the term :
"(a) 'Allotment' means the total value of coupons a household is
authorized to receive during each month.
"(b) 'Authorization card' means the document issued by the State
agency to an eligible household which shows the allotment the household is entitled to be issued.
"(c) 'Certification period' means the period for which households
shall be eligible to receive authorization cards. I n the case of a honsehold all af whose members are included in a federally aided public

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 959

assistance or general assistance grant, the period shall coincide with
the period of such grant. I n the case of all other llousel~oldsthe period
shall be not less than three months: P ~ o v i d e d T
, h a t such period may
be up to twelve nlontlls for any household consisting entirely of nnemployable or elderly o r primarily self-nnployed pelsons, or as short, as
circumstances require for those households as to which there is a snbstantial lil~elihoodof frequent changes in income or household status.
and for any household on initial certification, as determined by the
Secretary.
" (d) 'Coupon' Illeans any coupon, stamp, or type of certific,ate issued
pursuant to the provisions of this Act.
"(e) 'Coupon issuer' means any office of the State agency or any
person, partnership, corporation, organization, politicnl subdivision,
or other entitv with which a State agency has cont,racted for. or t o
which it has delegated fnnct.ionn1 responsibility in connection with,
the issuance of c o ~ ~ p o to
n shouseholds.
" ( f ) 'Drug addiction or alcoholic treatment and rehabilitation program' means any such program conducted by a private nonprofit
organization or institution ~ d i i c his certified by the State agency or
agencies designated by the Governor as resl~onsiblefor tlie administration of the State's programs for alcoholics and drug addicts pur(Comprehensir-e Alcohol Abuse and 42 USC4551
suant to Pnblic 1 , a ~91-616
~
Alcoholism Prevention. Treatment. and Rel~abilitationAct of 1970) note.
and Public lJaw 92-95.? ( D n ~ p
Abuse Office and Treatment Act of 21 USC 1101
1972) as providing treatment that can lead to the rehabilitation of note.
drug addic,ts or alcoholics.
"(g) 'Food' means (1) any food or food prodiict for home consumption except alcoholic beverages, tobacco. and hot foods or hot food
prorlucts reaclv for immediate consumption other than those al~thorized
pursuant to clauses (3). (4), and (5) of this subsection, (2) seeds and
plants for use in gardens to produce food for tlie personal consumption of the eligible household. (3) in the case of those persons who
are sixty years of age or over or ~ v h oreceive supplemental security
income benefits under title X V I of the Social Security Act. and their 42 USC 1381.
spouses, meals prepared by and sewed in senior citizens' centers.
apartment buildings occupied primarily by such persons, public or
prirate nonprofit establishments (eating or other~~ise.)
that feed such
persons. private establishments that contract. with the appropriate
agency of the State to offer meals for such persons at concessional
prices. and meals prepared for and served to residents of federally
subsidized housing for the elderly, (4) in the case of persons sixty
years of age or o\.er and persons r h o are physically or mentally handicapped or o t h e r ~ ~ i sso
e disabled that they are unable adequately to
pre.pare, all of their meals, meals prepared f o r and dellix-ered to them
(and their spouses) a t their home by a publlc or private nonprofit
organization or by a private establishment that contracts with the
appropriate State agency to perform such services at concessional
prices. (5) in the case of narcotics addicts or alcol~olicsserved by drug
addiction or alcoholic treatment and rehabilitation programs, meals
prepared and sen-ed under such programs. and (6) in the case of certain eligible h o ~ ~ s e l ~ olivinc
l d s in .t 1aska. e q n i ~ ~ m efor
n t procuring food
by hunting and fishing, such as nets. hoolrs, rods. harpoons, and Bnives
(but not equipment for purposes of transportation, clothing. or shelter,
and not firearms. ammunition, and esplosires) if the Secretary determines that such households are located in an area of the State where
it is estremely difficlllt to reac.h stores selling food and t h a t such households depend to a substantial extent upon hunting and fishing for
subsistence.

9 1 STAT. 960

PUBLIC LAW 95-113-SEPT.

29, 1977

"(h) (Food stamp program' means the program operated pursuant
to the provisions of this Act.
"(i) 'Household' means (1) an individual who lives alone or who,
while living with others, customarily purchases food and prepares
meals for home consumption separate and apart from the others, or
else pays compensation to the others for such meruls, or (2) a group
of individuals who live together and customarily purchase food and
prepare meals together for home consumption or else live with others
and pay compensation to the others for such meals. I n neither event
shall any individual or group of individuals constitute a household if
they reside in an institution or boarding house,. For the purposes of
this subsection, residents of federally subsidized housing for the elderly
and narcotics addicts or alcoholics who live under the supervision
of a private nonprofit institution for the purpose of regular participation in a drug or alcoholic treatment program shall not be considered
residents of institutions.
" ( j ) 'Reservation' means the geographically defined area o r areas
over which a tribal organization (as that term is defined in section
3(p) of t,his Act) exercises governmental jurisdiction.
"(k) 'Retail food store' means (1) an establishment or recognized
department thereof or house-to-house trade route, over 50 per centum
of whose food sales volume consists of staple food items for home preparation and consumption, s11cl1as meat, poultry, fish, bread, cereals,
vegetables, fruits, dairy products. and the like, but not including accessory food items, such as coffee, tea, cocoa, carbonated and uncarbonated
drinks. candy. condiments, and spices, (2) an establishment, organization or prograr~lreferred to in subsections (g) ( 3 ) , (4), and (5) of
this section, (3) a store purveying the hunting and fishing equipment
described in subsection (g) (6) of this section, and (4) any private
nonprofit cooperative food purchasing venture, including those in
\Thich the members pay for food purchased prior to the receipt of such
food.
''(1) 'Se,cretary' means the Secretary of Agriculture.
"(m) 'State' means the fifty States, the District of Columbia, Guam,
Puerto Rico, the Virgin Islands of the United States, and the reservations of an Indian tribe whose tribal organization meets the requirements of this Act for participation as a State agency.
&'(n) 'State agency' means (1) the agency of State. goyernment,
including the local officesthereof, which has the respons~billtyfor the
administration of the federallp aided publlc assistance programs
within such State, and in those States where such assistance programs
are operated on a decentralized basis, the term shall include the cqunterpart local agencies administering such programs, and (2) the tribal
organization of an Indian tribe determined by the Secretary to be
capable of effectively administering a food distribution program under
section 4(b) of this Act or a food stamp program under section 11(d)
of this Act.
"(0) 'Thrifty food plan' means the diet required to feed a family of
four persons consisting of a man and a woman twenty through fiftyfour, a child six through eight, and a child nine through eleven years
of age, determined in accordance with the Secretary's calculations. The
cost of such diet. shall be the basis for uniform allotments for all households regardless of their actual composition, except that the Secretary
shall (1) make household-size adjust.ments taking into account economies of scale, (2) make cost adjustments in the t.hrifty food plan for
Alaska and Hawaii to reflect the cost of food in those States, (3) make
cost adjustments in the separate thrifty food plans for Guam, Puerto

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 961

Rico, and the Virgin Islands of the TJnited States to reflect the cost of
food in those States, but not to exceed the cost of food in the fifty
States and the District of Columbia, and (4) adjust the cost of such
diet every January 1 and July 1 to the nearest dollar increment to
reflect changes in the cost of the thrifty food plan for the six months
ending the preceding September 31)and March 31, respectively.
" ( p ) 'Tribal organization' means the recognized governing body of
an Indian tribe (including the tribally recognized intertribal organization of such t,ribes), as the term %dian tribe' is defined in the Indian
Self-Determination Act (25 I7.S.('. 450b ( b ) ) as \\-ell as any Indian 25 USC 450f
tribe, band. or con~nlunityholding a treaty T\-itha State government. note.

"ESTABLISHMENT

O F THE FOOD STAMP PROGR4M

"SEC. 4. ( a ) Subject to the availability of funds appropriated under Administration.
section 18 of this Act, the Secretary is authorized t o formulate and 7 USC 2013administer a food stamp program under which, at the request of the
State agency, eligible households within the State shall be provided
an opportunity to obtain a more nutritious diet through the issuance
to them of an allotment. The coupons so receired by sncll households Coupons.
sl!all be used only to purchase food from retail food stores which have
been approved for participation in the food stamp program. Coupons
issued and used as provided in this Act shall be redeemable a t face
value by the Secretary throng11 the facilities of the Treasury of the
TTnited States.
"(b) I n jurisdictions where the food stamp program is in operation, Distribution of
there shall be no distribution of federally donated foods to households food.
under the authority of any law, except that distribution may be made
(1) on a temporary basis under programs authorized by law to meet
disaster relief needs, or ( 2 ) for the purpose of the commodity supplemental food program. Distribution of commodities, with or without Request by tribal
the food stamp program, shall also be made whenever a request for organization.
concurrent or separate food program operations, respectively, is made
by a trihal organization. I n the event of distribution on all or part of
an Indian reservation, the appropriate agency of the State qoverninent in the area involved shall be responsible for such distribution,
e,xcept that, if the Secretary determines that the tribal organization
is capable of effectively and efficiently administering such distribution,
then such tribal organizations shall administer such distribution :Procqided, That the Secretarv shall not approve any plan for such distribution which permits any household on any Indian reservation t o
participate simultaneously in the food stamp program and the distribution of federally donated foods. The Secretary is authorized to Administrative
pay such amounts for administrative costs of such distribution .on costs.
Indian reservations as the Secretary finds necessary for effect~ve
administration of such distribution by a State agency o r tribal
organization.
"(c) The Secretary shall issue such regulations consistent with this Regulations.
-4ct as the Secretary deems necessary or appropriate for the effective
and efficient administration of the food stamp program and shall promulgate all such regulations in accordance with the procedures set
forth in section 553 of title 5 of the TTnited States Code. I n addition, Statement,
prior to issuing any regulation, the Secretary shall provide the Coin- transmittal to
mittee on Agriculture of the House of Representatires and the Committee on Agriculture, Nutrition. and Forestry of the Senate a copy of committees.
the regulation with a detailed statement justifying it.

91 STAT. 962

Standards.

State plans.

Income
standards,
guidelines.

PUBLIC LAW 95-113-SEPT.

29, 1977

"SEC.5. ( a ) Participation in the food stamp program shall be limited
to those llouseholds wl~oseincomes and other financia1 resources, heId
singly o r in joint ownership, are determined to be a substantial limiting
factor in permitting them to obtain a more nutritious diet. Assistance
under this program shall be furnished t o all eligible households who
make application for such participation.
"(b) The Secretary shall establish uniform national standards of
eligibility (other than the income standards for Alaska, Hawaii, Guam,
Puert.0 Rico, and the Virgin Islands of the United States established in
accordance with subsections (c) and (e) of this section) for participation by houscholds in the food stamp program in accordance with the
provisions of t,his section. No plan of operation submitted by a State
agency shall be approved unless the standards of eligibility meet those
established by the Sec,retary, and no State agency shall impose any
other standards of eligibility as a condition for participating in the
program.
" (c) The income standards of eligibility shall be the nonfarm income
por-erty guidelines prescribed by the O6ce of Management and Budget
adjusted annually pursuant to section 625 of the Economic Opportunity Act of 1964, as amended (42 U.S.C. 2971d), for the fort,y-eight
States and the District of Columbia, Alaska, Hawaii, Puerto Rico, the
Virgin Islands of the United States, and Guam, respectively :Provided,
That in no event shall the standards of eligibility for Puerto Rico, the
Virgin Islands of the IJnited States, or Guam exceed those in the fortyeight contiguous States: P~*ouidedf u r t h e r , That the income poverty
guidelines for the period commencing July 1,1978, shall be made as up
to date as possible by multiplying the income povert,y guidelines for
1977 by the change between the average 1977 Consumer Price Index
and the Consumer Price Index for March 1978. utilizing the most current procedures which have been used by the Office of Management and
Budget. and the income poverty guidelines for future periods shall be
sinlilarly adjusted.
L'(d) Household income for purposes of the food. stamp program
shall include all income from whatever source exc~l~~rling.
only (1) any
gain or benefit which is not in the form of money payable directly to a
householcl, (2) any income in the certification period which IS received
too infrequently or irregularly t o be reasonablv anticipated, but not. in
excess of $30 in a quarter, ( 3 ) all ednc,ational loans on which payment
is deferred. grants, scholarships, fellowships, veterans' educational
benefits, and the like to the extent t.hat they are use,d foy t'liition and
mandatory school fees at an institution of higher education or school
for the h a n d i c a p ~ d ,(4) all loans other than educationa1 loans on
which repavment is deferred, (5) reimbursements which do not exceed
expenses actually incurred and which do not represent a gain or benefit
to the honsehold, (6) moneys received and used for the care and maintenance of a third-party beneficiary who IS not a household member,
(7) income earned by a child who is a member of the household, who is
a student, and who has not attained his eighteenth birthday,
moneys
received in the form of nonrecurring lump-sum payments, mcluding,
but not limited to, income tax refun,ds, rebates, or credits, retroactive
Iump-sum social security or railroad retirement pension payments and
retroactive lump-sum insurance settlements :Provided. That such payments shall be counted a s resources, unless specifically excluded by
other laws, (.9) the cost of producing self-employed income, and (10)
anv income that any other law specifically e7:ludes from consideration
as income for the purpose of determining eligbility for the food stamp
program.

(e)

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 963

"(e) I n computing liousellsld income, the Secretary shall alloz~a Standard
standard deduction of $60 a month for each ho~tsehold,except that deduction,
honselloldr; in Alaska, Hawaii, (iuarn. Puerto Rico, and the Virgin allowance.
Islands of the [-nitecI States shall be alloli~eda standard deduction
determined by the Secretary in accordance with the best a\railable
information on the relationship of actlial or potential itemized deductions claimed under the food stanlp program in those areas to such
deductions in the forty-eight contiguons States and the District of
Colunibia. 81ich standard ded~ictions,starting J u l y 1, 1978. shall be Adjustment.
adjusted every July 1and January 1 to the nearest $5 to reflect changes
in the Consumer Price Znclex of the Bureau of Labor Statistics for
iteins other tlian food for the six months ending the preceding March
31 and September 80. respectively. ,211 liouseholds with earned income Additional
shall be allowed an additional dednction of 20 per centum of all earned deductionsincome (other than that excluded by subsection ( d ) of this section)
to conipensate for taxes. other mandatory cled~~ctions
from salary, and
work expenses. Households shall also be entitled to (1) a dependent
care deduction, the maximum allowable level of which shall be the
same as that for the excess shelte~expense cletluction coiitai~~ed
in clause
(2) of this subsection, for the actnal cost of payments necessary for
the cale of a dependent, regardless of the dependent's age. \\-lien such
care enables a Iionsehold mcntber to accept or coiltinl~remployment,
or training or education which is preparatory for eml~loyment,or
(2) an excess shelter expense deduction to the extent that the monthly
amount expended by a holisel~oldfor shelter exceeds an amount rqual
to 50 per centlun of monthly householcl incorne after all other applicad , the ainoiint of such Limitation.
ble dediictions have heen allo~ved: P ? . o ~ ' i d ~That
excess shelter expense deduction shall not exceed $75 a month in the
forty-eight contiguous States and the District of Colnmbia. and shall
not exceed, in Alaska, Hawaii, Guani. Puerto Rico, and the T'irgin
Islanrls of t.he United States, amonnts determined by the Secretary in
accordance with the best a\.ailable inforniation on the relationship of
the actnal shelter costs in those areas to such costs in the forty-eight
contiguous States aiid the District of Col~imbia.adjusted anni~ally
(commencing July 1, 1978) to the nearest $5 increment to refiect
changes in the ~lielter.fuel, arid utilities colnponents of housing costs
in the Consunler Price Index published by the Bureau of Labor
Statistics of the Department of 1,abor for the twelve-month period
ending tlie preceding March 31, or ( 3 ) a deduction combining the
dependent care and excess shelter expense deductions under clauses
(1) and (2) of this subsection, the maximum allowable level of which
shall not exceed the maximum allowable deduction under clalise ( 2 ) of
this subsection.
" ( f ) Household income shall be calculated by the State agency for Calculation by
the purpose of deternlining honsehold elifibility. The State agency State agency.
i n calcillating Iiouseholil income shall take into account the income
reasonably anticipated to be received by the household in the certification period for which eligibility is being determined and the income
which has been received by the household during the thirt,y days
preceding the filing of its application for food stamps so that the
State agency may reasonably ascertain the income that is and will be
actually available to the household for the certification period, except
that for (1) those households which by contract for other than an
hourly or piecework basis, or by self-employment, derive their annual
income in a period of time shorter than one year, income shall be calculated by being averaged over a twelve-month period and (2) those

91 STAT. 9 a

Financial
resources,
allowances.

Study, report to
congressional
committees.

Emergency
standards.
42 USC 5142.

Food Stamp
Disaster Task
Force.
Establishment.

7 USC 2015.

PUBLIC LAW 95-113-SEPT.

29, 1977

households which receive nonexcluded income of the type specified
in subsection (d) (3) of this section, income sllall be calculated by
being averaged over the period for which it is provided.
"(g) The Secretary shall prescribe the types and allowable amounts
of financial resources (liquid and nonliquid assets) an eligible household may own, and shall, in so doing, assure that a household otherwise eligible to participate in the food stamp program will not be
eligible to partic,ipate if its resources exceed $1,750, or, in the case of
a household consisting of two or more persons, one of whom is age 60
or over, if its resources exceed $3,000. The Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow the
regulations in force as of June 1, 1977, and shall, in addition, (1)
include in financial resources any boats, snowmobiles, and airplanes
used for recreational purposes, any vacation homes, any mobile homes
used primarily for vacation purposes, and any licensed vehicle (other
than one used to produce earned income) used for househoId transportation or used to obtain or continue employment or to transport
disabled household members to the extent that the fair market value
of any such vehicle exceeds $4,500, and (2) study and develop means
of improving the effectiveness of these resource requirements in limiting participation to households in need of food assistance, and implement and report the results of such study and the Secretary's plans to
the Committee on Agriculture of the House of Representatives and the
Committee on Apiculture, Nutrition, and Forestry of the Senate no
later than June 1-1978.
" ( h ) (1) The kecretary shall, after consultation with the official
empowered to exercise the authority provided for by section 302 ( a ) of
the Disaster Relief Act of 1974. estabIish temworarv emerpencv
., standardspof eligibility for the duration of the e&erg&cy for households
who are victims of a disaster which disrupts commercial channels of
food distribution, if such households are in need of temporary food
assistance and if commercial channels of food distribution have again
become available to meet the tempo,rary food needs of such households.
Such standards as are prescribed for individual emergencies may be
promulgated without regard to section 4(c) of this Act or the procedures set forth in section 553 of title 5 of the United States Code.
"(2) The Secretary shall establish a Food Stamp Disaster Task
Force, to assist States in implementing and operating the disaster program, which shall be available to go into a disaster area and provide
direct assistance to State and local officials.

"SED.6. (a) I n addition to meeting the standards of eligibility prescribed in section 5 of this Act, households and individuals who are
members of eligible households must also meet and comply with the
specific requirements of this section to be eligible for participation in
the food stamp pro am.
"(b) No indivigal who is a member of a household otherwise
eligible to participate in the food stamp program shall be eligible to
participate for ( 1 ) three months after such individual has been found
by a State agency after notice and hearing a t the State level, or after
failure to appeal a local hearing to the State level, to have fraudulently
used, presented, transferred, acquired, received, possessed, or altered
coupons or authorization cards, or (2) a period of not less than six and
not more than twenty-four months, as determined by the court, after

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 965

such individual has been found by a court of appropriate jurisdiction,
with a State or a political subdivision thereof or the United States as
prosecutor or plaintiff, to have been criminally or civilly fraudulent in
the use, presentation, transfer, acquisition, receipt, possession, or alteration of coupons or authorization cards, o r ( 3 ) both of the periods
specified in clauses (1) and (2) of this subsection. Each such period of
ineligibility is to take effect immediately upon the relevant adniinistrative o r judicial finding and to remain in effect, without possibility of
administrative stay, unless and until the finding of fraud is sul~sequently reversed by a court of appropriate jurisdiction, but in no event
shall the period of disqualification be subject to judicial review.
" ( c ) No household shall be eligible to participate in the food stamp
program if i t refuses to cooperate in providing information to the
State agency that is necessary for making a determination of its eligibility or for completing any subsequent review of its eligibility.
Every household that is participating in the food stamp program Changes, report
shall report or cause to be reported to the State agency, on a form to Sfate agencydesigned or approved by the Secretary (that shall contain a description
in understandable terms in prominent and boldface lettering of the
appropriate civil and crinlinal provisions dealing with violations of
t,his Act, including the penalties therefor, by members of an eligible
household) changes in income or household circumstances which the
Secret,ary deems necessary in order to assure accurate eligibility and
benefit determinations. The reporting requirement prescribed by this
subsection shall be the sole such requirement for reporting changes in
income o r i n household circumstances for participating households.
" ( d ) (1) Unless otherwise exempted by the provisions of paragraph
( d ) (2) of this subsection, no ho~~sehold
shall be eligible for assistance under this Act if i t includes a physically and mentally fit person
between the ages of eighteen and sixty who ( i ) refuses at the time of
application and once every six months thereafter to register for
employment in a manner determined by the Secretary; (ii) refuses to
fulfill whatever reasonable reporting and inqniry about employment
requirements as are prescribed by the Secretary; (iii) is head of the
household and voluntarily quits any job without good cause. unless
the household was certified for benefits under this Act immediately
prior to such unemployment :Provided, T h a t the period of ineligibility
shall be sixty days from the time of the voluntary quit; or (iv) refuses
without good cause to accept, an offer of employment at a wage
not less than the higher of either the applicable State o r Federal
minimum wage, or 80 per centum of the wage that would have governed had the minimum hourly rate under t,he F a i r Labor Standards
Act of 1938, as amended (29 U.S.C. 206(a) (1) ), been applicable to
the offer of employment, and a t a site or plant not then subject to a
strike or lockout,.
" (2) A person who otherwise would be required to comply ~ i t the
h
Exemptions.
requirements of paragraph (1) of this subsection shall be exempt
from such requirements if he or she is (A) currently subject
to and complying with a work registration reql~irementunder title
I V of the Social Security Act, as amended (42 U.S.C. 602). o r the
Federal-State unemployment compensation system; ( R ) a parent
or other member of a household with responsibility for the care of a
dependent child under age twelve or of an incapacitated person : ( C ) a
parent or other caretaker of a child in a household where there is
another able-bodied parent who is subject to the requirements of this
subsection; (D) a bona fide student enrolled a t least half time in

91 STAT. 966

PUBLIC LAW 95-113-SEPT.

29, 1977

any recognized school, training program, or institution of higher education (except that any such person shall be subject to the requirements of paragraph (1) of this subsection during any period of more
than thirty days when such school or program is in vacation o r recess
and any such person enrolled in an institution of higher education
shall be subject to the requirements of subsection (e) (3) ( R ) of this
section as well) ; (E) a regular participant in a drug addiction or
alcoholic treatment and rehabilitation program; o r (P) employed a
minimum of thirty hours per week o r receiving weekly earnings which
equal the minimum hourly rate under the F a i r Labor Standards Act
of 1938, as amended (29 U.S.C. 206(a) ( 1 ) ) , multiplied by thirty
hours.
"(3) TO the extent that a State employment service is assigned
responsibility for administering the provisions of subsection ( d ) of
this section, it shall comply with regulations issued jointly by the
Secretary and the Secretary of Labor, which regulations shall be
patterned to the maximum extent practicable on the work incentive
program requirements set forth in title I V of the Social Security Act
(42 U.S.C. 630 et. seq.) and shall take into account the diversity of
the needs of the food stamp work registration population.
" (e) No individi~alwho is a member of a household otherwise eligible
to participate in the food stamp program under this section shall be
eligible to participate in the food stamp program as a member of that
o r any ot,her household if he or she (1) has reached his o r her
eighteenth birthday, (2) is enrolled at least half time in an institution of higher education, and ( 3 ) ( A ) is properly claimed or could
properly be claimed as a dependent child for Federal income tax
purposes by a taxpayer who is not a member of an eligible honsehold o r (R) during the regular school year (i) is not employed
a minimum of twenty hours per week or is not participating in
a federally financed work study program, (ii) does not have weekly
earning! which at, least eqiial the minimum hourly rate ilnder
the Fair Labor Standards Act of 1938. as amended (89 U.S.C.
206 ( a ) (1) ) , multiplied by twenty hours, (iii) is not registered for
work amounting t o at least twenty hours per week, (iv) is not the
head of a household containing one or more other persons who are
dependents of that individual because he or she suppliqs more than
half of their support, or (v) is not covered by an e ~ e m p t ~ ofrom
n the
work registration requirement contained in snbsect,ion (d) of this section other than clause (D) of paragraph (2) of that silbsection.
" ( f ) No individlial who is a member of a household otherwise eligible to participate in the food stamp program under this section shall
be eligible to pad,icipate in the food stamp program as a member of
that or anv other household unless he or she is (1) a resident of the
United States and (2) either ( A ) a citizen or (B) an alien lawfully
admitted for permanent residence as an immigrant as defined by sections 101(a) (15) and 101( a ) (20) of the Immigrat,ion and Nationality
Act (8 U.S.C. 1101(a) (15) and 8 U.S.C. 1101( a ) (20) ) , excluding,
among others, alien visitors, tourists, diplomats, and students who
enter the United States temporarily with no intention of abandoning
their residence in a foreign country; or (C) an alien who entered the
United States prior to June 30, 1948, or such subsequent date as is
enacted by law, has continuoudy maintained his or her residence in
the United States since then, and is not ineligible for citizenship, but
who is deemed t o be lawfi~llyadmitted for permanent residence as a
result of an exercise of discretion by t,he Attorney General pursuant
to section 249 of the Immigration and Nationality Act (8 U.S.C.

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 967

1259) ; or (D) an alien who has qualified for conditional entry pursuant to section 203(a) (7) of the 1mmigrat.ion and Nationality Act (8
U.S.C. 1153( a ) (7) ) because of persecution or fear of persecution on
account of race, rel~gion,or political opinion or because of being
uprooted by catastrophic natural calamity; or ( E ) an alien who is
lawfully present in the United States as a result of an exercise of discretion by the Att.orney General for emergent reasons or reasons
deemed strict.1~
in the public interest pursnant t o section 212(d) ( 5 ) of
the Immigration and Nationality ,4ct (8 U.S.C. 1182(d) (5) ) ; or (F)
an alien within the United States as to whom the A b r n e y General
has withheld rlepoi-tation pursuant t.o section 243 of the Immigration
and Nat,ionalit.y Act (8 U.S.C. 1253(h)) because of the judgment of
the Attorney General that the alien would otherwise be subject to persecution on account of race, religion, or political opinion. No aliens
other than the ones specifically described in clauses ( B ) through (F)
of this subsection shall be eligible t o part.icipate in t.he food stamp
program as a member of any household.
" ( g ) . N o individual who receives supplemental security income
benefits under title X V I of the Social Security ,4ct, State supple- 4.2 USC 1381.
ment.ary payments described in section 1616 of such Act, or payments 4.2 USC 1382~
of the type referred t,o in section 212(a) of Public Law 93-66, as
amended, shall be considered to be n member of a household for any 87 Stat. 155.
month, if, for such month. such individual resides in a State which
provides State supplementary payments (1) of the type described in
section 1616(a) of the Social Security Act and section 212(a) of Public Law 93-66, and (2) the level of which has been found by the Secretary of Health, Education, and Welfare to have been specifically
increased so as to include the bonus value of food stamps.
"(h) No household that knowingly transfers assets for the purpose
of qualifying or attempting to qualify for the food stamp program
shall be eligible to participate in the program for a period of up to one
year from the date of discovery of the transfer.

"SEC. 7. ( a ) Coupons shall be printed under such arrangements and
in such denominations as may be determined by the Secretaq t o be
necessary, and shall be issued only to households which have been duly
certified as eligible to participate in the food stamp program.
"(b) Coupons issued to elipible households shall be used by them
only to purchase food in retail food stores which have been approved
for participation in t.he food stamp program at prices prevailing in
such stores : Provided, That nothing in this Act shall be construed as
anthorizing t.he Secretary to specify the prices at which food may be
sold bv wholesale food concerns or retail food stores: Prosided further, That eligible households using coupons to purchase food may
receive cash in change therefor so long as the cash received does not
equal or exceed the value of the lowest coupon denomination issued.
"(c) Coupons issued to eligible households shall be simple in design
and shall include only such words or illustrations as are required to
explain their purpose and define their denomination. The name of
any public official shall not appear on such coupons.
"(d) The Secretary shall develop an appropriate procedure f o r
determining and monitoring the level of coupon inventories in the
hands of coupon issuers for t,he purpose of providing that such inventories are a t proper levels (taking into consideration the historical and
projected volume of coupon distribution by such issuers). Such procedures shall provide that coupon inventories in the hands of such issuers

Printing.

7 Use 2016.

Design.

Inventory levels,
monitorship.

91 STAT. 968

PUBLIC LAW 95-113-SEPT.

29, 1977

are. not in excess of the reasonable needs of such issuers taking into
consideration the ease with which such coupon inventories may be
Monthly
resupplied. The Secretary shall require each coupon issuer at intervals
operations report. prescribed by the Secretary, but not less often than monthly, to send to
the Secretary or the Secretary's designee, which nlay include the State
agency, a written report of the issuer's o erations during such period.
Oath,
I n addition to other information deemed y the Secretary to be approcertification by
priate, the Secretary shall require that the report contain an oath,. or
issuer.
affirmation, signed by the coupon issuer, or in the case of a corporation
o r other entity not a natural person, by an appropriate official of the
coupon issuer, certifying that the infornlation contained in the report
is true and correct to the best of such person's knowledge and belief.
Delivery and
'<(e) The Secretary shall prescribe appropriate procedures for the
controls,
delivery of coupons to coupon issuers and for the subsequent controls
procedures.
to be placed over such coupons by coupon issuers in order to ensure
adequate accountability.
Financial losses.
" ( f ) Notwithstanding any other provision of this Act, the State
agency shall be responsible to the Secretary for any financial losses
involved in the acceptance, storage, and issuance of coupons.

7 USC 2017.

Report to
Congress.

Applications,
submission.
7 USC 2018.

Qualifications.

Certificate.

"SEC.8 ( a ) The value of the aIlotment which State agencies shall
be authorized to issue t o any households certified as eligible t o participate in the food stamp program shall be equal to the cost to such
households of the thrifty food plan reduced by an amount equal to 30
per centum of the household's income, as determined in accordance
with section 5 of this Act, rounded to the nearest whole dollar: Provided, That for households of one and two persons the minimum allotment shall be $10 per month. The Secretary shall, six months after the
implementation of the elimination of the charge for allotments and
annually thereafter, report to Congress the effect on participation and
cost of this elimination.
"(b) The value of the allotment provided any eligible household
shall not be considered income or resources for any purpose under any
Federal, State, or local laws. including, but not limited to, laws relating to taxation, welfare, and public assistance programs, and no particlpating State o r political subdivision thereof shall decrease any
assistance otherwise provided an individual or individuals because
of the receipt of an allotment under this Act.
"SEC.9. (a) Regulations issued pursuant to this Act shall provide
for the submission of applications for approval by retail food stores
and wholesale food concerns which desire t,o be authorized to accept
and redeem coupons under the food stamp program and for the
approval of those applicants whose participation will effectuate the
purposes of the food stamp program. I n determining the qualifications
of applicants, t.here shall be considered among such other factors as
may be appropriate, the following: (1) the nature and extent of the
food business conducted by the applicant; (2) the volume of coupon
business which may reasonably be expected to be conducted by the
applicant food store or wholesale food concern; and (3) the business
integrity and reputation of the applicant. Approval of an applicant
shall be evidenced by the issuance t o such applicant of a nontransferable certificate of approval.

PUBLIC LAW 95-113-SEPT.

29, 1977

"(b) No wholesale food concern may be authorized to accept and
redeem coupons unless the Secretary determines that its participation
is required for the effective and efficient operation of the food stamp
program. I n addition, no firm may be authorized to accept and redeem
coupons as both a retail food store and as a wholesale food concern
at the same time.
"(c) Regulations issued pursuant to this Act shall require an
applicant retail food store or \i-holesale food concern to submlt information which will r~ermita determination to be made as to whether
such applicant cpal{fies, or continues to qualify, for approval under the
provisions of this Act or the regulations issued pursuant to this Act.
Regulations issued pursuant to this Act shall provide for safeguards
which limit t.he use or disclosure of information obtained under the
authority granted by this subsection to purposes directly connected
with administration and enforcement of the provisions of this Act or
the regulations issued pursuant to this Act.
"(d) Any retail food store or wholesale food concern which has
failed upon application to receive approval t,o participate in the food
stamp program may obtain a hearing on such refusal as provlded in
section 14 of this Act.

91 STAT. 969

Information,
submittal.

Safeguards.

Hearing.

' L S ~10.
c . Regulations issued pursuant to this Act shall ~ r o v i d efor 7 USC 2019.
the redemption of coupons accepted by retail food stores through
approved wholesale food concerns or through banks, with the cooperation of the Treasury Department, except that retail food stores defined
in section 3(k) (4) of this Act shall be authorized to redeem their
members' food coupons prior to receipt by the members of the food
so purchased and private nonprofit organizations or institutions which
serve meals to narcotics addicts or alcoholics in drug addiction o r
alcoholic treatment and rehabilitation programs shall not be authorized to redeem coupons through banks.
"ADMINISTXATION

"SEC.11. (a) The State agency of each participating State shall
assume responsibility for the certification of applicant households and
for the issuance of coupons and the control and accountability thereof.
There shall be kept such records as may be necessary to ascertain
whether the program is being conducted in compliance with the provisions of this Act and the regulations issued pursuant to this Act.
Such records shall be available for inspection and audit at any reasonable time and shall be preserved for such period of time, not less bhan
three years, as may be specified in the regulations issued pursuant to
this Act.
"(b) Certification of a household as eligible in any politioal subdivision shall, in t,he event of removal of such household to another
political subdivision in which the food stamp program is operating,
remain valid for participation in the food stamp program for a period
of sixty days from the date of such removal.
"(c) I n the certification of applicant households for the food stamp
program, there shall be no discrimination by reason of race, sex, religious creed, national origin, or political beliefs.
"(d) The State agency (as defined in section 3(n) (1) of this Act)
of each State desiring to participate in the food stamp program shall
submit for approval a plan of operation specifying the manner in
which such program will be conducted within the State in every politi-

7 USC 2020Record
retention.
Inspection and
audit.

Certification.

Plan of operation,
approval.

91 STAT. 970

PUBLIC LAW 95-113-SEPT.

29, 1977

cal subdivision. I n the case of all or part of an Indian reservation, the
State agency as defined in section 3 (n) (1) of this Act shall be responsible for conducting such program on such reservation unless the Secretary determines that the State agency (as defined in sectlon 3(n) (1) of
this Act) is failing, subsequent to the enactment of this Act, propefly
to administer such program on such reservation in accordance w ~ t h
the purposes of this Act and further determines that the State agency
as defined in section 3 ( n ) (2) of this Act is capable of effectively and
efficiently conducting such program, in light of the distance of the
reservation from State agency-operated certification and issuance centers, the previous experience of such tribal organization in the, operation of programs authorized under the Indian Self-Determinatlon Act
25 USC 450f
(25 U.S.C. 450) and similar Acts of Congress, the tribal organization's
note.
management *and fiscal capabilities, and the adequacy of measures
taken by the tribal organization to ensure that there shall be no discrimination in the operation of the program on the basis of race, color,
sex, or national origin, in which event such State agency shall be
responsible for conducting such program and submitting for approval
a plan of operation specifying the manner in whlch such program will
Training and
be conducted. The Secretary. upon the request o f a tribal organization,
assistance.
shall provide the designees of such organization with appropriate
training and technical assistance to enable them to qualify as expeditiously as possible as a State agency pursuant to section 3 ( n ) (2) of
Consultation with this Act. A State agency, as defined in section 3(n) (1) of t,his Act,
tribal
before it submits its plan of operation to the Secretary for the ,adminisOrganizationtration of the food stamp program on all or part of an Indian reservation, shall consult in p o d faith with the tribal organization about that
portion .of the State's plan of operation pertaining to the implementation of the program for members of the tribe, and shall implement the
program in a manner that is responsive to the needs of the Indians
on the reservation as determined by ongoing consultation with the
tribal organization.
"(e) The State plan of operation required under subsection (d) of
this section shall provide, among such other provisions as may be
required by regulationNotification.
" (1) that the State agency shall (A) inform low-income households about the availability, eligibility requirements, and benefits
of the food stamp program, including, but not limited to, notification to recipients of aid to families with dependent children,
supplemental security income, and unemployment compensation,
distribution of application forms, and associated instructions in
filling out such forms, and on the documentation required pursuant to paragraph (3) of this silbsection; (B) not conduct any
other outreach activities of a noninformational nature in those
areas in which n federally funded community action program is
Bilingual
in operation and conducting food stamp outreach; and (C) use
personnel and
appropriate bilingual personnel and printed material in the
materials.
administration of the program in those portions of political subdivisions in the State in which a substantial number of members
of low-income households speak a language other than English ;
Application,
"(2) that each household which contacts a food stamp office
filing.
in person during office hours to make what may reasonably be
interpreted as an oral or written request for food stamp assistance
shall receive and shall be permitted to file, on the same day that
such contact is first made, a simplified, uniform national application form for participation in the food stamp program desiped
by the Secretary, unless the Secretary approves a deviation from

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 971

that form by a particular State agency because of the use by that
agency of a dual public assistance food stamp application form
pursuant to subsection (i) of this section, the requirements of an
agency's computer system, OF other exigencies as determined by
the Secretary. Each application form shall contain a description Application form.
in understandable terms in prominent and boldface lettering of
the appropriate civil and criminal provisions dealing with violations of this Act, including the penalties therefor, by members of
an eligible household. The State agency shall comply with the
standards established by the Secretary for points and hours of
certification, and for telephone contact by, mail delivery of forms
to and mail return of forms by, and subsequent home or telephone
interview with, the elderly, physically or mentally handicapped,
and persons otherwise unable, solely because of transportation
difficulties and similar hardships, to appear in person a t a certification office or through a representative pursuant to paragraph
(7) of this subsection, so that such persons may have an adequate
opportunity to be certified properly;
"(3) that the State agency shall thereafter promptly determine the eligibility of each applicant household by way of verification only of income other than that determined to be excluded
by section 5 ( d ) of this Act and such other eligibility factors as
the Secretary determines to be necessary to implement sections 5
and 6 of this Act, so as to complete certification of and provide
a n allotment retroactive to the period of application to any eligible household not later than thirty days following its filing of
an application ;
" (4) that the State agency shall insure that each participating Certification
household receive a notice of expiration of its certification immedi- expiration,
ately prior to or a t bhe start of the last month of its certificlation
period advising i t that i t must submit a new application in order Recertification.
to renew ,its eligibility for a new certification period and, further:
bhat each such household which seeks to be certified another time
or more times thereafter by filing an application for such recertification no later than fifteen days prior to the day upon wh,ich its
existing certification period expires shall, if found to be st,ill
eligible, receive its allotment no later than one month after the
receipt of the Iast allotment issued to i t pursuant to its prior
certification, but if such household is found to be ineligible or to
be eligible for a smaller allotment during the new certification
period i t shall not continue to participate and receive benefits on
the basis authorized for the preceding certification period even if
it makes a timely request for a fair hearing pursuant to paragraph
(10) of this subsection;
"(5) the specific standards to be used in determining the eligiwith
bility of applicant households which shall be in ac~~ordance
sections 5 and 6 of this Act and shall include no addibional requirements imposed by the &ate agency;
" (6) that (,4) the State agency shall undertake the certification Certification.
of applicant households in accordance with the general procedures
prescribed by the Secretary in the regulations issued pursuant to
this Act; (B) the State agency personnel utilized in undertaking
such certification shall be employed in~accordancewith the current
standards for a Merit System of Personnel Administration or any
standards later prescribed by the United Sta.tes Civil Service
Commission pursuant to section 208 of the Intergovernmental
Personnel Act of 1970 modifying or superseding such standards 42 USC 4728.
relating to t,he establishment and maintenance of personnel stand-

91 STAT. 972
Personnel.
training.

Safeguards.

Hearing.

Reports.

Poster displays.

Disaster victims.

PUBLIC LAW 95-113-SEPT.

29, 1977

ards on a merit basis; and (C) the State agency shall undertake
to provide a continuing, comprehensive program of training for
all personnel undertaking st~clicertification;
"(7) that any applioant household may be represented in the
certification process and that any eligible household may be represented in coupon issuance or food purchase by a person other
than a ~nerllberof the household so long as that person has been
clearly designated as the represenhtive of that household for
that purpose by the head of the household or the spouse of the
he,ad, and, where the certification process is concerned, the representative is an adult who is sufficiently aware of relevant houseI101d circumstances;
"(8) safeguards which limit the use or disclosure of information obtained from (applicant households to persons directly
connected with the administration or enforcement of the provisions of this Act or the regulakions issued pursuant to this Sct ;
"(9) that households in immediate need because of no income
as de,fined in sections 5 (d) and (e) of this Act receive coupons
on an expedited basis;
"(10) for the granting of a fair hearing and a prompt determinat,ion thereafter to any household aggrieved by the action of
t,he State agency under any provision of its plan of operation
as i t affects the participation of such household in the food stamp
prograrn or by a claim against. the housellold for an overissuance :
Provided, That #anyhousel~oldwhich timely requests such a fair
healing after receiving individual notice of agency actiov reducing or terminating its benefits within the household's certlficatlon
peri'od shall contlnue to participate and receive benefits on fhe
basis authorized immediately prior to the notice of adverse act~on
until such time as the fair hearing is cornpleted and an adverse
decision rendered or until such time as the household's certification period terminates, whichever occurs earlier;
"(11) for the prompt restoration in the form of coupo~zsto
households of any allotme~ltor portion thereof which has been
wrongfully denied or terminated;
"(12) for the subrnission of such reports and other information
as from time to t,inie may be required by the Secretary;
"(13) for compliance with standards set by the Secretary with
respect to points and hours of coupon issuance;
" (14) for indicators of expected performance in the administration of the program ;
<'(15) that the Stat,e agency shall prominently display in all
food stamp and public assistance ofices posters prepared or
obtained by the Secretary describing the information contained
in subparagraphs (A) through (D) of this paragraph and shall
make available in such offices for home use pamphlets prepared
or obtained by the Secretary listing ( A ) foods that contain substantial amounts of recommended daily allowances of vitamins,
minerals, and protein for children and adults; (B) menus that
combine such foods into meals; (C) details on eligibility for other
programs administered by the Secretary that provide nutrition
benefits; and (D) general informabion on the relationship between
health and diet ;and
"(16) that the State agency shall spec,ify a plan of operation for
providing food stamps for households that are victims of a disaster; that such plan shall include, but not be limited to, procedures
for informing the public about the disaster program and how to
apply for its benefits, coordination with Federal and private dis-

PUBLIC LAW 95-113-SEPT.

29, 1977

9 1 STAT. 9 7 3

aster relief agencies and local government officials, application
procedures to reduce hardship and inconvenience and deter fraud,
and instruction of caseworkers in procedures for implementing
and operating the disaster program.
" ( f ) To encourage the purchase of nut,ritious foods, the Secretary Food and
shall extend the expanded food and nutrition education p r o g p m to nutrition
the greatest extent possible to reach food stamp program participants. ProgramThe program shall be further supplemented by the development -of extension.
single concept printed materials, specifically designed for persons wlth
low reading and comprehension levels, on how to buy and prepare
more nutritious and economical meals and on the relationship between
food and good health.
" ( g ) I f the Secretary determines that in the administration of the State
food stamp program there is a failure by a State agency to comply wlth
any of the provisions of this ,4ct, the regulations issued pursuant to this correction.
Act, or the State plan of operation submitted pursuant to subsection
( d ) of this section, the Secretary shall immediately inform such State
agency of such failure and shall allow the State agency a specified
period of time for the correction of such failure. I f the State agency Injunctive relief.
does not correct such failure within that specified period, the Secretary
may refer the matter to the Attorney General with a request that
injunctive relief be solight to require compliance forthwith by the State
agency and, upon suit by the Attorney General in an appropriate district court of the United States having jurisdiction of the geographic
area in which the State agency is located and a showing that noncompliance has occurred, appropriate injunctive relief shall issue.
" ( h ) I f the Secretary determines that there has been negligence or Deposit by States.
fraud on the part of the State agency in the certification of applicant
households, the 'State shall, upon request of the Secretary, deposit into
the Treasury of the United States, a sum equal to the face value of any
coupon or coupons issued as a result of such negligence o r fraud.
"(i) Notwithstanding any other provision of law, the Secretary and System,
the Secretary of Health, Education, and Welfare shall develop a sys- development.
tem by which (1) a single interview shall be conducted to determine
eligibility for the food stamp program and the aid to families with
dependent children program under part A of t,itle I V of the Social
Security Act; (2) households in which all members are recipients of 42 USC 601.
supplemental security income shall be permitted to apply for participation in the food stamp program by executing a simplified affidavit at
the social security office and be certified for eligibility utilizing information contained in files of the Social Security Administration; ( 3 )
households in which all members are included in a federally aided
public assistance or Stat,e or local general assistance grant shall have
their application for participation in the food stamp program contained in the public assistance or general assistance application form;
and (4) new applicants, as well as households which have recently
lost or been denied digibility for public assistance or general assistance, shall be certified for participation in the food stamp program
based on information in the public assistance o r general assistance
case file to the extent that reasonably verified information is available
in such case file.
" ( j ) The Secretary, in conjunction with the Secretary of Health, Joint regulations,
Education, and Welfare, is authorized to prescribe regulations per- USDA-HEWmitting applicants for and recipients of social security benefits to
a ~ w l vfor food stamws at social securitv offices and be certified for
f&dYstamp eligibilit< in such offices in order that the application and
certification for food stamp assistance may be accomplished as efficiently and conveniently as possible.

9 1 STAT. 974

PUBLIC LAW 95-113-SEPT.

29, 1977

"(k) Subject to the approval of the President, post offices in all or
part of the State may issue, upon request by the State agency, food
stamps to eligible households.
'

L MONEY
~
PENALTIES
~
~
A N D DISQTJALIFICATION

O F RETAIL FOOD STORES

AND WHOLESALE FOOD CONCERNS

7 USC 2021.

Review.

7 USC 2022.

Delegation of
authority.

Notice.

7 USC 2023.

Request for
submission of

filing.

"SEC.12. Any approved retail food store or wholesale food concern
may be disqualified for a specified period of time from further participation in the food stamp program, or subjected to a civil money
penalty of up to $5,000 for each violation if the Secretary determines
that its disqualification would cause hardship to food stamp households, on a finding, made as specified in the regulations, that such store
or concern has violated any of the provisions of this Act or the
regulations issued pursuant to this Act. Such disqualification shall be
for such period of time as may be determined in accordance with regulations issued pursuant to this Act. The action of disqualification or
the imposition of a civil money penalty shall be subject to review as
provided in section 14 of this Act.

Y~Ec.13. The Secretary shall have the power to determine the
amount of and settle and adjust any claim and to compromise or deny
all or part of any such claim or claims arising under the provisions of
this Act or the regulations issued pursuant to this Act, including, but
not limited to, claims arising from fraudulent and nonfralidulent
overissuances to recipients. Such powers with respect to claims against
recipients may be delegated by the Secretary to State agencies.

"SEC.14. Whenever an application of a retail food store or wholesale
food concern to part,icipate in the food stamp program is denied pursuant to section 9 of this Act, or a retail food store or wholesale food
concern is disqualified or subjected to a civil money penalty under the
provisions of section 12 of this ,4ct, or all or part of any claim of a
retail food store or wholesale food concern is denied under the provisions of section 13 of this Act, or a claim against a State agency is
stated pursuant to the provisions of section 13 of this Act, notice of
such administrative action shall be issued to the retail food store,
wholesale food concern, or State agency involved. Such notice shall be
delivered by certified mail or personal service. If such store, concern, or
State agency is aggrieved by such action, it may, in accordance with
regulations promulgated under this Act, within ten days of the date
of delivery of such notice, file a written request for an opportunity to
submit information in support of its position to such person or persons
as the regulations may designate. If such a request is not made or if
such store, concern, or State agency fails to submit, information
in support of its position after filing a request, the administrative
determination shall be final. If such request is made by such store,
concern, or State agency, such information as may be submitted by
the store, concern, or State agency, as well as such other information as may be available, shall be reviewed by the person or persons
designated by the Secretary, who shall, subject to the right of judicial review hereinafter provided, make a determination which shall
be final and which shall take effect thirty days after the date of the

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 975

delivery or service of such final notice of determination. If the store, Complaint, filing.
concern, or State agency feels aggrieved by such h a 1 determination,
it may obtain judicial review thereof by filing a complaint against the
United States in the United States court for the district in which it
resides or is engaged in business, or, in the case of a retail food store
or wholesale food concern, in any court of record of the State having
competent jurisdiction, within thirty days after the date of delivery
or service of the final notice of determination upon it, requesting the
court to set aside such det,ermination. The copy of the summons and
complaint required to be delivered to the official or agency whose
order is being attacked shall be sent to the Secretary or such person or
persons as the Secretary may designate to receive service of process.
The suit in the United States district court o r State court shall
be a trial de novo by the court in which the court shall determine
the validity of t.he questioned administrative action in issue. I f
the court determines that such administrative action is invalid, it
shall enter such judgment o r order as it determines is in accordance
with the law and the evidence. During the pendency of such judicial Stay.
review, or any appeal therefrom, the administrative action under
review shall be and remain in full force and effect, unless an application
to the court on not less than ten days' notice. and after hearing thereon
and a showing of irreparable injury, the court temporarily stays such
administrative action pending disposition of such trial or appeal.

"SEC.15. ( a ) Notwithstanding any other provision of this Act, the Coupon
Secretary may provide for the issuance or presentment for redemption redemption.
of coupons to such person or persons, and at such times and in such 7 USC 2024.
manner, as the Secretary deems necessary o r appropriate t o protect
the interests of the United States or t o ensure enforcement of the provisions of this Act or the regulations issued pursuant to this Act.
"(b) Whoever knowingly uses, transfers, acquires, alters, o r possesses
coupons or authorization cards in any manner not, authorized by this
Act or the regulations issued pursuant to this Act shall, if such coupons
o r authorization cards are of the value of $100 o r more, be guilty of a
felony and shall, upon conviction thereof, be fined not more than
$10,000 o r imprisoned for not more than five years, or both, or, if such
coupons or authorization cards are of a value of less than $100, shall
be guilty of a misdemeanor and shall, upon conviction thereof, be fined
not more than $1,000 or imprisoned for not more than one year, or both.
"(c) Whoever presents, or causes to be presented, coupons for payment or redemption of the value of $100 o r more, knowing the same to
have been received, transferred, or used in any manner in violation
of the provisions of this Act or the regulations issued pursuant to thls
Act shall be guilty of a felony and shall, upon conviction thereof, be
h e d not more than $10,000 o r imprisoned for not more than five years,
or both, or, if such coupons are of a value of less than $100, shall be
guilty of a misdemeanor and shall, upon conviction thereof, be fmed
not more than $1,000 or imprisoned for not more than one year, or both.
" ( d ) Coupons issued pursuant to this Act shall be deemed t o be
obligations of the United States within the meaning of section 8 of
title 18, United States Code.
"(e) Any coupon issuer or any officer, employee, o r agent thereof
convicted of failing to provide the report required under section 7 (d)
of this Act or of violating the regulations issued under section 7 ( d )
and (e) of this Act shall be fined not more than $1,000 or imprisoned
for not more than one year, or both.

91 STAT. 976
"(f) Any coupon issuer or any oacer, employee, or agent thereof
convicted of knowingly providing false information in the report
required under section 7(d) of this Act shall be fined not more than
$10,000 or imprisoned not more than five years, or both.
'

7 USC 2025.

Administrahon,
standards.
Reports.

Funds,
withholding.

Federal share,
adjustment.
Effective date.

Annual quality
control plan,
submittal to
Secretary.
Effective date.

COST-SHARING ~AND QUALITY CONTROL
~

"SEC.16. (a) The Secretary is authorized to pay to each State agency
an amount equal to 50 per centum of all administrative costs involved
in each State agency's operation of the f w d stamp program, which
costs shall include, but not be limited to, the cost of (1) outreach,
( 2 ) the certification of applicant households, (3) the acceptance, storage, protection, control, and accouilting of coupons after their delivery
to receiving points within the State, (4) the issuance of coupons to
all eligible households, and (5) fair hearings: Provided, That the
Secretary is authorized to pay each State agency an amount not less
than 75 per centum of the costs of State food stamp program investigations and prosecutions, and is further authorized a t the Secretary's
discretion to pay any State agency admin~steringthe food stamp program on all or part of an Indian reservation under section l l ( d ) of
this Act such amounts for administrative costs as the Secretary determines to be necessary for effective operation of the food stamp
program.
"(b) The Secretary shall (1) establish standards for the effiscient
and effectiveadministration of the food stamp program by the States,
including, but not limited to, staffing standards such as caseload per
certification worker limitations, and (2) instruct each State to submit,
at reguIar intervals, reports which shall specify the specific administrative act,ions proposed to be taken and implemented in order to
meet the e5ciency and effectiveness standards established pursuant
to clause (1) of this subsection. I f the Secretary finds that a State
has failed without good cause to meet any of the Secret.ary7sstandards,
or has failed tocarry out the approved State plan of operation under
section l l ( d ) of this Act, the Secretary shall withhold from the State
such funds authorized under subsections ( a ) and (c) of this section
as the Secretary determines to be appropriate.
"(c) Effective October 1,1978, the Secretary is authorized to adjust
a State agency's federally funded share of administrative costs pursuant to subsection (a) of this section, other than the costs already
shared in excess of 50 per centum as described in the exception clause
of subsection ( a ) of this section, by increasing such share to 60 per
centum of all such administrative costs in the case of a State agency
whose cumulative allotment error rates with respect to eligibility, overissuance, and underissuance as calculated in the quality control
program undertaken pursuant to subsection (d) (1) of this section is
less than five per centum.
"(d) Effective October 1, 1078, and annually thereafter, each State
not receiving an in'creased share of administrative costs pursuant to
subsection (c) of this section shall be required to develop and submit
to the Secretary for approval, as part of the plan of operation required
to be submitted under section 11( d ) of this Act, a quality control plan
for the State which shall specify the actions such State proposes to take
in order to reduce" (1 ) the incidence of error rates in and the value of"(A) food stamp allotments for households which fail to
meet basic program eligibility requirements ;

PUBLIC LAW 95-113-SEPT.

29, 1977

9 1 STAT. 977

"(B) food stamp al1,otments overissued t o eligible households ; and
"(C) food stamp allotments underissued to eligible households; and
"(2) the incidence of invalid decisions in certifying or denying
eligibility.
"(e) As used in this section 'quality control' means monitoring and ''Quality
reducing the rate of errors in determining basic eligibility and benefit control."
levels.
"RESEARCH,

DEB~ONGTRATION, AND EVALUATIONS

''SEC.17. (a) The Secretary may, by way of making contracts with
or grants t o public o r private organizations o r agencies, undertake
research that will help improve the administration and effectiveness of
the food starrlp program in delivering nutrition-related benefits.
(b) (1) The Secretary is authorized to conduct on a trial basis, in
one or more areas of the United States, p.ilot or experimental projects
designed to test program changes that might increase the efficiency of
the food stamp program and improve the delivery of food stamp
benefits to eligible households, including projects involving the payment of the value of allotments in the form of cash to eligible households all of whose members are either age sixty-five or over o r entitled
to supplemental security income benefits under title XVI of the Social
Security Act, the use of countersigned food coupons o r similar identification mechanisms that do not invade a household's privacy, and the
use of food checks or other voucher-type forms in place of food coupons. The Secretary may waive the requirements of this Act to the
degree necessary for such projects to be conducted. except that no
project shall be implemented which would lower or further restrict the
income or resource standards or benefit levels provided pursuant to
sections 5 and 8 of this Act.
"(2) The Secretary shall, jointly with the Secretary of Labor, implement two pilot projects involving the performance of work in return
for food stamp benefits in each of the seven administrative regions
of the Food and Nutrition Service of the Department of Agriculture,
such projects to be ( A ) appropriately divided in each region between
1ocat.ions that are urban and rural in characteristics and anlong locations selected to provide a representative cross-section of political subdivisions in the States and (B) submitted for approval prior to project
implementation, together with the names of the agencies or organizations that will be engaged in such projects. t o the Committee on A g i culture of the House of Representatives and thc Committee on
Agriculture, Nutrition, and Forestry of the Senate. TTnder such pilot
projects, any person who is subject to the work registration requirements pursuant to section 6 ( d ) of this Act, and is a member of a
household that does not have earned income equal to or exceeding the
allot,ment to which the household is otherwise entitled pursuant to
section 8(a) of this S c t , shall be ineligible t o participate in the food
stamp program as a member of any household during any month in
which such person refuses, after not being offered employment in the
private sector of the economy for more than thirty days after the initial registration for employment referred t o in section 6(d) ( I ) (i) of
this Act, to accept an offer of employment from a political subdivision
or a p i m e sponsor pursuant t o the Comprehensive Employment and
Training Act of 1973, as ariiended (29 TT.S.C. 812), for which employment compensation shall be paid in the form of the allotment to which

Contracts or
vants.
7 u s C 2026.
Pilot projects.

42 USC 1381.

Waiver.

Pilot projects.

Submittal for

Eligibility.

91 STAT. 978

2BUSC 801 note.

Joint reports,
issuance to
congressional
committees.

Evaluation
measures.

Study.

26 USC 1 et seq.
Report to
committees.
Recommendations.

PUBLIC LAW 95-113-SEPT.

29, 1977

the household is otherwise entitled pursuant to section 8(a) of this
Act, with each hour of employment entitling the household to a
portion of the allotment equal in value to 100 per centum of the Federal
minimum hourly rate under the Fair Labor Standards Act of 1938,
as amended (29 U.S.C. 206(a) ( 1 ) ) ; which employment shall not,
together with any other hours worked in any other capacity by such
person exceed forty hours a week; and which employment shall not
be used by the enlployer t o fill a job opening created by the action of
such employer in laying off or terminating the employment of any regular employee not supported under this paragraph in anticipation of
filling the vacancy so created by hiring an employee or employees to be
supported under this paragraph: Prozlided, That all of the political
subdivision's or prime sponsor's public service jobs supported under the
Comprehensive Employment and Training Act of 1973, as amended
(29 U.S.C. 812), are filled before such subdivision or sponsor can extend
a job offer pursuant to this paragraph: Proaided further, That the
sponsor of each such project shall provide the assurances required of
prime sponsors under section 205(c) (7), (8), (15), (19), and (24)
of the Comprehensive Employment and Training Act of 1973, as
amended (29 U.S.C. 845 ( c )), and the Secretary shall require such
sponsors to comply with the conditions contained in sections 208(a)
(I), ( 4 ) , and (5) and (c) and 703 (4) of the Comprehensive Employment and Training Act of 1973, as amended (29 U.S.C. 848 ( a ) and
(c) and 983). The Secretary and the Secretary of Labor shall jointly
issue reports to the appropriate committees of Congress on the
progress of such pilot projects no later than six and twelve months
following enactment of this Act, and shall issue a final report describing the results of such pilot. projects no later than eighteen months
following enactment of this Act.
"(c) The Secretary shaIl develop and impIement measures for evaluating, on an annual o r more frequent basis, the effectiveness of the
food stamp propranl in achieving its stated objectives, including, but
not limited to, the program's impact upon the nutritional and economic status of participating households, the program's impact upon
all sectors of the agricultural economy, including farmers and ranchers, as well as retail food stores, and the program's relative fairness t o
households of different income levels, different age composition, different size, and different regions of residence.
" ( d ) h'otwithstanding any other provision of law, the Secretary
shall, in consultation with the Secretary of the Treasury, conduct a
study, through the use of Federal income tax data, of the feasibility,
alternative methods of implementation, and t,he effects of a program t o
recover food stamp benefits from members of eligible households in
which the adjusted gross income of members of such households for a
calendar year (as defined by the Internal Revenue Code of 1954) may
exceed twice the income poverty guideIines set forth in section 5(c)
of t.his ,4ct. Such study shall be conducted in rural and urban areas
only on a v o l u n t ~ r ybasis by food stamp recipients. The Secretary
shall, no later than twelve months and eighteen mont,hs from the date
of enactment of this Act, report the results of the study to the Committees on Apricult.ure and Ways and Means of the House of Representatives and to the Committees on Agriculture, Nutrition, and
Forestry and Finance of the Senate, together with such recomrrlendations as the Secretary deems appropriate,

PUBLIC LAW 95-113-SEPT.
"AUTHORIZATION

29, 1977

91 STAT. 979

FOR APPROPRIATIONS

"SEC.18. ( a ) T o carry out the provisions of t,his Act, there are

7 USC 2027.

hereby authorized to be appropriated not in excess of $5,847,600,000
for the fiscal year ending September 30, 1978; not in excess of
$6,158,900,000 for the fiscal year ending September 30, 1979; not in
excess of $6,188,600,000 for the fiscal year ending September 30,1980;
and not in excess of $6,235,900,000 for the fiscal year ending September 30,1981. Not to exceed one-fourth of 1 per ceiitum of the previous
year's appropriation is authorized in each such fiscal year to carry out
the provisions of section 17 of this Act. Sums appropriates under the
provisions of this Act shall, notwithstanding the provisions of any
other law, continue to remain available until expended.
'L(b) I n any fiscal year, the Secretary shall limit the value of those Allotment value,
allotments issued t o an amount not in excess of the ap~~ropriation
for limitation.
such fiscal gear. If In any fiscal year the Secretary finds that t.he
requirements of participating States mill exceed the limitation set
herein, the Secretary shall direct State agencies to reduce the value
of such allotments to be issued t o households certified as eligible t o
participate in the food stamp program to the extent necessary to comply with the provisions of this subsection."
CONFORMIh-G AMENDMExTS

SEC.1302. ( a ) (1) Section 3 (b) and section 4 (c) of Public Law 93-86
are rej~ealed.
(2) The last sentence of section 416 of the Act of October 31, 1919
(as added by section 411 ( g ) of Public L ~ 92-603),
T
is repealed.
(3) Section 8(c) of Public Law 93-233 is amended by striking out
"the last sentence of section 3(e) of the Food Stamp Act of 1964 (as
amended by subsection ( a ) of this section)" and inserting in lieu
thereof "section 6(g) of t.he Food Stamp Act of 1977".
(4) Section 8 ( f ) of Public Law 93-233 is anlended by striking out
everything through "during such period," and inserting in lieu thereof
"The amendment made by subsection (e) shall not,".
(b) The amendments made by this sect.ion shall be effective
October 1. 1977.

Repeal.
7 USC 2012,
6 1 2 ~note.
Repeal.

i:::tdf:&,e
note.

Effective date.
7 USC 2012 note.

IMPLEMENTATTON O F THE FOOD STAMP S C T O F 1 9 7 7

SEC. 1303. ( a ) The Secretary of Agriculture shall implement the
Food Stamp Act of 1977 as expeditiously as possible consistent, with
the efficient and effective administration of the food sta.mp program.
The provisions of the Food Stamp Act of 1964, as amended, which Continuity.
are relevant to current regulations of t,he Secretary governing the food 7 USC 2011 notestamp program, shall remain in effect until such regulations are
revoked, superseded, amended, or modified by regulations issued pursuant to the Food Stamp Act of 1977. Coupons issued pursuant to the
Food Stamp Act of 1964, as amended, and in general use as of the
effective date of the Food Stamp Act of 1977, shall continue t o be
usable to purchase food, and all other liabilities of t.he Secretary,
States, and applicant o r participating households. under the Food
Stamp Act of 1964, as amended, shall continue in force until finally
resolved or terminated by administrative or judicial sciion, or otherwise.
(b) Pending proceedings under the Food Stamp Act of 1964, as
amended, shall not be abated by reason of any provision of the Food

9 1 STAT. 9 8 0

Quarterly report,
submittal to
congressional
committees.

PUBLIC LAW 95-113-SEPT.

29, 1977

Stamp Act of 1977, but shall be disposed of pilrsnant to the applicable
provisions of the Food Stamp Act of 1964, as amended, in effect prior
to the effective date of the Food Stamp Act of 1977.
(c) Appropriations made available to carry out the Food Stamp
,4ct of 1964, as amended, shall be available to carry out the provisions
of the Food Stamp Act of 1977.
( d ) Tho Secretary shall, within six months of enactment of this
Act, submit a quarterly report to the Senate Committee on Agriculture, Nutrition, and Forestry and t,he House Committee on Agriculture, setting forth the previous quarter's expenditure, by State, for
the food stamp program. Such report shall also include the number of
individnals participating in the program and the cost of administering the program at each State level and a t the national level.
C,OMMODITY DISTRIBUTION PROGRAMS

Effective date.
7 USC 6 1 2 note.
~

Effective date.

7 USC 1307 note.

Payment to State
or local agencies.
7 USC612c note.

SEC. 1304. (a) Effective October 1, 1977, sections 4 (a) and 4 (b) of
the Agriculture and Consumer Protection Act of 1973, as amended,
are amended to read as follows :
"SEC.4. (a) Notwithstanding any other provision of law, the Secretary may, during fiscal years 1978,1979,1980. and 1981, purchase and
distribute sufficient agricultural commodities with funds appropriated
from the general fund of the Treasury to nlaintain the traditional
level of assistance for food assistance programs as are authorized by
law, inclrlding but not limited to distribution to institutions, supplemental feeding programs wherever located, disaster areas, summer
camps for children, the United States Trust Territory of the Pacific
Islands, and Indians, whenever a t,ribal organization requests distribution of federally donated foods pursuant to section 4(b) of the
Food Stamp Act of 1977. In providing for commodity distribution
to Indians, the Secretary shall improve the variety and quantity of
commodities supplied to Indians in order to provide them an opportunity to obtain a more nutritious diet.
" (b) The Secretary may furnish commodities to sulmmer camps for
children in which the number of adults participating in camp activities as compared ~ v i t hthe number of children under 18 years of age
so participating is not unreasonable in Iight of the nature of such
camp and the characteristics of the children in attendance.".
(b) Effective October 1, 1977, the Agriculture and Consumer Protection Act of 1973, as amended, is amended by(1)redesignating section 5 as section 6 ; and
(2) inserting after section 4 a new section 5 as follows :

"SEC.5. (a) Tn carrying out the supplemental feeding program
(hereinafter referred to as the 'commodity supplemental food
program') to which reference is made in section 4 of this Act, the Secretary of Agric~iltureshall pay to each State or local agency administering any such program, for each of the fiscal years 1978 through
1981, an amount equal to its administrative costs not in excess of an
amount equal to 15 per centum of the total amount of the value of
commodities made available to the State or local agency for such
program in such fiscal year.
"(b) During the first three months of any commodity supplemental
food program, or until such program reaches its projected caseload
level, wh~chevercomes first, the Secretary shall pay those administrative costs necessary to commence the program successfi~lly:Pro-

PUBLIC LAW 95-113-SEPT.

29,1977

vi&d, That in no event shall administrative costs paid by the
Secretary for any fiscal year exceed the limitation established in subsection (a) of this section.
'b(c) ddministratire costs for the purposes of the commodity supplemental food program shall include, but not be limited to, expenses
for information and referral, operation, monitoring, nutrition education, start-up costs, and general administration, including staff, warehouse and transportation personnel, insurance, and administration of
the State or local office.
"(d) During each fiscal year the commodity supplemental food
program IS in operation, the types and varieties of commod~tiesand
their proportional amounts shall be determined by the Secretary, but,
if the Secretary proposes to make any significant changes in the types,
varieties, or proportional amounts from those that were available or
were planned at the beginning of the fiscal year (or as were available
during the fiscal year ending June 30, 1976, whichever is greater)
the Secretary shall report such changes before implementation to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Kutrition, and Forestry of t,he Senate.
" (e) The Secretary of ,ilgriculture is authorized to, issue such regulations as may 'benecessary to carry out the commod~tysupplemental
food program.".

T I T L E XIV-NATIONAL
AGRICULTURAL RESEARCH,
EXTENSION, AND TEACHING POLICY ACT OF 1977
SHORT TITLE

SEC.1401. This title niay be cited as the "National Agricultural
Kesearch, Extension, and Teaching Policy Act of 1977".
Subtitle A-Findings,

91 STAT. 981

Repo*to
congressional
cornminees.

Regulations.

National

~~~~~'
Extension, and

Teaching Policy
Act of 1977.
7 U S C J ~ note
O~

Purposes, and Definitions
FINDINGS

SEC.1402. Congress finds t h a t

( 1 ) the Federal Government of the United States has provided

f u n d ~ n support
g
for agricultural research and extension for many
years in order to pro~noteand protect the general health and welfare of the people of the 1-nited States, and this support has significantly contributed to the development of the Nation's
agricultural system ;
(2) the agencies conducting such federally supported research
were established a t different times in response to different and
specific needs and their work is not fully coordinated;
( 3 ) these agencies have only been partially successful in
responding to the needs of all persons affect,ed by their research,
and useful information produced through such federally supported research is not being efficiently transferred to the people
of the United States;
(4) expanded agricultural research and extension are needed to
meet the rising demand for food and fiber caused by increases
in worldwide population and food shortages due to short-term,
localized, and adverse climatic conditions:
(5) increased research is necessary to alleviate inadequacies of
the marketing system (including storage, transportation, and
distribution of agricultural and forest products) which have
impaired United States agricultural production and utilization;

7 USC 3101.

91 STAT. 982

PUBLIC LAW 95-113-SEPT.

29, 1977

(6) advances in food and agricultural sciences and technology
have become increasingly limited by the concentration upon the
thorough development and exploitation of currently known
scientific principles and technological approaches at the espense
of more fundamental research, and a strong research effort in
the basic sciences is necessary to achieve. breakthroughs in knowledge
. that
. . can support new and innovative food and agricultural
technologies ;
(7) Federal funding levels for agricultural research and extension i n recent years have not been commensurate with needs
stemming from changes in United States agricultural practices
and the Gorld food aGd agricultural situatio;;
(8) new Federal initiatives are needed in the areas of(A) research to find alternatives to technologies based on
fossil fuels;
(13) research and extension on human nutrition and food
consumption patterns in order to improve the health and
vitality of the people of the United States;
(C) research to find solutions to environmental problems
caused by technological changes in food and agricultural
production ;
(D) aquacultural research and extension;
(E) research and extension directed toward improving
the management and use of the, Nation's natural and renewable resources, in order to meet the increased demand for
forest products, conserve water resources (through irrigation management, tail water reuse, desalin?tion, crop conversion, and other water conserva.tion techniques), conserve
soil resources, and properly manage rangelands;
(F) improving and e x p ~ n d i n gthe research and extension
programs
in home economics ;
( G ) extension programs in energy conservation;
(HI extension promams in forestrv and natural resources.
wiih special en$ha& to be given "to improving the pro:
ductivity of small private woodlands, modernizing wood
harvesting and utilization, developing and disseminating reliable multiple-use resource management information to all
landowners and consumers, and the general public, wildlife,
watershed, and recreational management, and cultural practices (including reforestation, protection, and related matters)
(I$research on climate, drought, and weather modification
as factors in food and agricultura,l production;
(J) more intensive agricultural research and extension
programs oriented to the needs of small farmers and their
families and the family farm system, which is a vital component of the agricuItura1 production capacity of this
country ;
(K) research t o expand export markets for agricultural
commodities ;
(L) development and implementation, through research, of
more efficient, less wasteful, and environmentally sound methods of producing, processing, marketing, and utilizing food,
fiber, waste products, other nonfood agricultural products,
and forest and rangeland products;
(M) expanded programs of animal disease and health care
research and extension ;

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 983

(N) research !o develop new crops, in order to expand our
use of varied soils and increase the choice of nutritional and
economically viable crops available for cultivation; and
(0)investigation and analysis of the practicabilit
desirability, and feasibility of using organic waste materia s
to improve soil tilth and fertility, and extension programs to
disseminate practical information resulting from such investigations and analyses; and
(9) the existing agricultural research system consist,ing of the
Federal Government, the land-grant colleges and universities,
other colleges and universities engaged in agricultural research,
the agricultural experiment stations, and the private sector constitute an essential national resource whlch must serve as the
foundation for any further strengthening of agricultural research
in the United States.

PURPOSES

SEC.1403. The purposes of this title are to-

7 USC 3102.

(1) establish firmly the Department of Agriculture as the lead
agency in the Federal Government for the food and agricultural
sciences, and to emphasize that agricultural research, extension,
and teaching are distinct missions of the Department of Agnculture ;
(2) undertake the special measures set forth in this title to
improve the coordination and planning of agricultural research,
identify needs and establish pfiorities for such research, assure
that high priority research is glven adequate funding, assure that
national agricultural research, extension, and teaching objectives
are fully achieved, and assure that the results of agricultural
research are effectively communicated and demonstrated to farmers, processors, handlers, consumers, and all other users who can
benefit therefrom ;
( 3 ) increase cooperation and coordination in the performance
of agricultural research by Fedefal departqlents and agencies, the
States, State agricultural experiment stations, colleges and universities, and user groups;
(4) enable the Federal Government, the States, colleges and
universities, and others to implement needed agricultural research,
extension, and teaching programs, including the initiatives specified in section 1402(8) of this title, through the establishment
of new programs and the improvement of existing programs, as
provided for in this title;
(5) establish a new program of grants for high-priority agricultural research to be awarded on the basis of competition among
scientific research workers and all colleges and universities;
( 6 ) establish a new program of grants for facilities and instrumentation used in agricultural research; and
(7) establish a new program of education grants and fellowships to strengthen training and research programs in the
food and agricultural sciences, to be awarded on the basis of
competition.
DEFINITIONS

7 USC 3103.
SEC.
1404. When used in this title(1) the term "Advisory Board" means the National Agricul-

tural Research and Extension Users Advisory Board;
(2) the term "agricultural research" means research in the food
and agricultural sciences;

9 1 STAT. 984

PUBLIC LAW 95-113-SEPT.

29, 1977

(3) the term 'Laquaculture"means the propagation and rearing
of aquacultural species, including, but not limited to, any species
of finfish, mollusk, or crustacean (or other aquatic invertebrate),
amphibian, reptile, or aquatic plant, in controlled or selected
environments ;
(4) the terms "college" and "university" mean an educational
institution in any State which (A) admits as regular students only
persons having a certificate of graduation from a school providing
secondary education, or the recognized equivalent of such a certificate, (B) is legally authorized within such State to provide a program of education beyond secondary education, (C) provides an
educational program for which a bachelor's degree or any other
higher degree is awarded, (D) is a public or other nonprofit institution, and ( E ) is accredited by a nationally recognized accrediting agency or association;
(5) the term "cooperative extension services" means the organizations established at the land-grant colleges and universities
under the Smith-Lever Act of May 8,1914 (38 Stat. 372-374, as
amended ; 7 U.S.C. 341-349), and section 209 (b) of the Act of
October 26, 1974 (88 Stat. 1428, as amended; D.C. Code, sec.
31-1719 (b) ) ;
(6) the term "Department of Agriculture" means the United
States Department of Agriculture;
(7) the term "extension" means the informal education programs conducted in the States in cooperation with the Department
of Agriculture;
(8) the term "food and agricultural sciences" means sciences
relating to food and agriculture in the broadest sense, including
the social, economic, and political considerations of( A ) agriculture, including soil and water conservation and
use, the use of organic waste materials to improve soil tilth
and fertility,. plant and animal production and protection, and
plant and animal health ;
( R ) the processing, distributing, marketing, and utilization
of food and agricultural pmducts;
(C) forestry, including range management, production of
forest and range products, multiple use of forest and range
lands, and urban forestry;
(D) aquaculture ;
( E ) home economics, human nutrition, and family life;
and
( F ) rural and community development ;
(9) the term "Joint Council" means the Joint Council on Food
and Agricultural Sciences ;
(10) the term "land-grant colleges and universities" means
those institutions eligible to receive funds under the Act of July 2,
1862 (12 Stat. 503-505, as amended; 7 U.S.C. 301-305, 307 and
308), or the Act of August 30,1890 (26 Stat. 417419, as amended ;
7 Ui3.C. 321-326 and 328), including the Tuskegee Institute;
(11) the term "Secretary" means the Secretary of Agriculture
of the United States;
(12),,except as provided in subtitIe H of this title, the term
"State means any one of the fifty States, Puerto Rico, Guam,
the District of Columbia, and the Virgin
- Islands of the United
States;
(13) the term "State agricultural experiment stations" means
those institutions eligible to receive funds under the Act of
March 2, 1887 (24 Stat. 440442, as amended; 7 U.S.C. 361a361i) ; and

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 985

(14) the term "teaching?' mFans the formal classroom and laboratory instruction and training in the food and agricultural
sciences conducted at colleges and universities and leading to
baccalaureate and other recognized degrees.
Subtitle B-Coo,rdination and Planning of Agricultural Research,
Extension, and Teaching
RESPONSIBILITIES O F THE SECRETARY AND DEPARTMENT O F AGRICULTURE

SEC.1405. The Department of Agriculture is designated as the lead 7 USC 3121.
agency of the Federal Government for agricultural research (except
with respect t o the biomedical aspects of human nutrition concerned
with diagnosis or treatment of disease), extension, and teaching in the
food and agricultural sciences, and the Secretary, in c a r y i n g out the
Secretary's responsibilities, shall(1) establish jointly with the Secretary of Health, Education,
and Welfare procedures for coordination with respect to nutrition research in areas of mutual interest ;
(2) keep informed of developments in, and the Nation's need
for, research, extension, teaching, and manpower development in
bhe food and agricultural sciences and represent, such need in
deliberations within the Department of Agriculture, elsewhere
within the exe~utivebranch of the United States Government,
and with the several States and 'their desipated land-grant colleges and universities, other colleges and universities, agr.icultura1
and related industries, and other interested institutions and
groups ;
(3) coordinate all agricultural research, extension, and teaching
activity conducted or financed by the Department of Agriculture
and, to the maximum extent practicable, by other agencies of the
executive branch of the United States Government;
(4) take the initiative in establishing coordination of State- State-Federal
Federal cooperative agricultural research, extension, and teach- agricultural
ing programs, funded in whole or in part by the Department of programs.
Agriculture in each State, through the administrative heads of
land-grant colleges and universities and the State directors of
agricultural experiment stations and cooperative extension services, and other appropriate program administrators;
(5) conslilt the Joint Council, b d v i s o y Board, and other
appropriate advisory committees of the Department of Agriculture in the formulation of basic policies, goals, strategies, and
priorities for programs of agricultural research, extension, and
teaching ;
( 6 ) report (as a part of the Department of Agriculture's Report to
annual budget submissions) to the House Committee on Agricul- congressional
ture, the House Committee on Appropriations, the Senate Com- committees.
mittee on Agriculture, Nut,rition, and Forestry, and the Senate
Committee on Appropriations actions taken t o support the
recommendations of the Advisory Board ;
(7) establish appropriate review procedures to assure that agri- Research projects
cultural research projects are timely and properly reported and review
published and that there is no unnecessary duplication of effort pmceduresor overlapping between agricultural research units;
(8) establish Federal or cooperative multidisciplinary research Multidisciplinary
teams,
teams on major agricultural research problems with clearly
defined leadership, budget responsibility, and research programs;
and

9 1 STAT. 986

PUBLIC LAW 95-113-SEPT.

29, 1977

(9) in order to promote the coordination of aagricultura1
research of the Department of Agriculture, conduct a continuing
inventory of ongoing and completed research projects being
mnducte,d within or funded by the Department.
FEDERAL SUBCOMMITTEE ON FOOD AND RENEWABLE RESOURCES

SEC.1406. Section 401 (h) of the National Science and Technology
Policy, Organization, and Priorities Act of 1976 (90 Stat. 471; 42
U.S.C. 6651( h ) ) is amended by adding at the end thereof the following : "Among such standing subcommittees and panels of the Council
shall be the Subcommittee on Food and Renewable Resources. This
subcommittee shall review Federal research and development programs relevant to domestic and world food and fiber production and
distribution, promote planning and coordination of this research m
the Federal Government, and recommend policies and other measures
concerning the food and agricultural sciences for the consideration of
the Council. The subcommittee shall include, but not be limited to,
representatives of each of the following departments or agencies;
the Department of Agriculture, the Department of State, the Department of Defense, the Department of the Interior, the Department of
Health, Education, and 1'CTelfare,the National Oceanic and Atmospheric Administration, the Energy Research and Development Administration, the National Science Foundation, the Environmental
Protect,ion Agency, and the Tennessee Valley Authority. The principal representatives of the Department of Agriculture shall serve as
the chairman of the subcommlttee."
JOINT COUNCIL O N FOOD AND AGRICULTURAL SCIENCES

Establishment.
7 USC 3122.

Membership.

Responsibilities.

SEC.1407. (a) The Secretary shall establish within the Department
of dgrici~lturea committee to be known as the Joint Council on Food
and Agricultural Sciences which shall have a term of five years.
(b) The Joint Council shall be composed of representatives from
the Department of Agriculture and those of its agencies with significant research and extension responsibilites, the Office of Science
and Technology Policy, the land-grant colleges and universities, State
agricultural experiment stations, State cooperative extension services,
and those colleges and universiti?~,other public. and private institutions, producers, and representatives of the public who are interested
in and have a potential to contribute, as determined by the Secretary,
to the formulation of national pollcy in the food and agricultural
sciences. The Joint Council shall be jointly chaired by the Assistant
Secretary of Agriculture responsible for research, extension, and
teaching, and a person to be elected from among the non-Federal
membership of the Joint Council.
(c) The Joint Council shall meet at least once during each threemonth period. At least one meeting each year shall be a combined
meeting with the Advisory Board.
(d) (1) The primary responsibility of the Joint Council shall be
to foster coordination of the agricultural research, extension, and
teaching activities of the Federal Government, the St,ates,colleges and
universities, and other public and private institutions and persons
involved in the food and agricultural sciences.
(2) The Joint Council's responsibilities shall also be to-

PUBLIC LAW 95-113-SEPT.

29, 1977

(A) provide a forum for the interchange of information among
the organizations represented by the members of the Joint Council that will assure improved awareness among these orga1~zations
concerning the agricultural research, extensim, and teach~npprograms, results, and directions of each organlzatioll;
(B) analyze and evaluate the economic, environmental. and
social impacts of agricultural research, extension, and teaching
programs conducted in the United States and determine high
priority agricultural research areas, and submit annual reports
identifying such high priority research areas to the Secretary;
(C) develop and review the effectiveness of a system, for use
by the Secretary, of compiling, maintaining, and disseminating
information about each federally supported agricult.ura1 research
or extension project and, to the maximum extent possible,
information about private agricultural research and extension
projects conducted by colleges and universities, foundations, contract research groups, businesses, and others. Information about
private agricultural research and extension projects shall not
be included in this system unless they are partially or entirely
funded by the Federal Government or the, organizations sponsoring the projects agree to the inclusion of Information about such
projects;
(D) assist the parties in developing, reviewing, and evaluating memoranda of understanding or other documents that detail
the terms and conditions between the Secretary and the participants in agricultural research, extension, and teaching programs under this Act and other Acts ;
(E) assist the Secretary in carrying out the responsibilities
assigned t o the Secretary under this title through planning and
coordination efforts in the food and agricultural sciences that
utilize an effective system of regional and national planning, and
by the development of recommendations and reports describing
current and long-range needs, priorities. and goals in the food
and agricultural sciences and means to achieve these goals;
( F ) develop, and review the effectiveness of, guidelines for use
by the Secretary in rriaking competitive grants under secti'on 2(b) of the Bct of August 4, 1965 (79 Stat. 431: 7 U.S.C.
450i),as amended by section 1414 of this title ;and
(G) prepare and submit to the Secretary, not later than
December 31 of each year, a statement of recommendations
which shall include( i ) the Joint Council's recommendations as to unified
national, regional, or interstate agricultural research, extension, or teaching programs t o be implemented during the
following fiscal year, delineating suggest,ed areas of responsibility for Federal and State agencies in carrying out such
programs, and the overall planning, evaluation, coordination,
and support necessary for such programs, and
(ii) a summary of agricultural research, extension, and
teaching achievements made during, and the status of ongoing projects as of the end of, the prior fiscal year, with respect
t o the programs conducted by the organizations represented
by the members of the Joint Council.
Minority views, if timely submitted, shall be included in the
submission. The Secretary shall submit copies of the statement
to the Subcommittee on Food and Renewable Resources of the
Federal Coordinating Council for Science, Engineering, and
Technology, and the Advisory Board.

91 STAT. 987

!::E;meot

and

review of

F=?;x;~

91 STAT. 988

PUBLIC LAW 95-113-SEPT.

29, 1977

NATIONAL AGRICULTURAL RESEBRCH AND EXTENSION USERS ADVISORY
BOARD

Establishment.
7 USC 3123.
Membership.

Chairman; vicechairman.

Panels.

Responsibilities.

SEC.1408. (a) The Secretary shall establish within the Department
of Agriculture a board to be known as the National Agricultural
Research and Extension Users Advisorv Board which shall have a
term of five years.
(b) The Advisory Board shall be composed of the following
twenty-one members to be appointed by the Secretary(1) four members representing producers of agricultural commodities, forest products, and aquacultural products,
(2) four members representing consumer interests,
(3) two members representing farm suppliers and food and
fiber rJrocessors.
(4j two members representing food marketing interests,
( 5 ) two members representinn environmental interests.'
(6) one member engaged in r&al development work,
(7) two members engaged in human nutrition work.
i 8 j one member re~Fe&ntinganimal health interests.
(9) one member eGgaged i c t r a n ~ ~ o r t a t i oofn food'and agricultural ~ r o d u c tto
s domestic or foreim markets.
(10) &e member representing lagor organizations primarily
concerned with the production, processing, distribution, or transportation of food and agricultural products, and
(11) one member representing private sector organizations
involved in development programs and issues in developing
countries.
(c) The Advisory Board shall select a chairman and vice-chairman
from its membership, at its first meeting each year, who shall serve
in those positions for a term of one year.
(d) The Advisory Board ghall meet a t least once during each fourmonth period. At least one meeting each year shalg be a combined
meeting with the Joint Council.
(e) he Advisory Board is authorized to establish such panels as
it deems appropriate to develop information, reports, advice, and
recommendations for the use of the Advisory Board in meeting its
responsibilities. Members of such panels may include members of the
Advisory Roard. Advisory Board staff members, individuals from
the Department of Agriculture and other departments and agencies
of the Federal Government, and individuals from t'he private sector
who have expertise in the subiect to be examined by the panel.
( f ) ( 1 ) The Advisory Roard s h d l have general responsibilitv for
preparing independent advisory opinions on the food and agrici~ltural
sciences.
(2) The Advisory Board shall have the specific responsibilities
for(A) reviewing the policies, plans, and goals of programs wit.hin
the Department of Apiculture involving the food and agricult,ural sciences, and rel,at,edprograms in other Federal and St.ate
depart,ments and agencies and in the colleges and universities
develoaed bv t,hc Secretarv under this title:
( R ) 'revi&~vinc
and a s s k i n e the extent df agricultural research
n-v-1 extension being conducted bv ~ r i v a t efoundations and businesses. and t.he relationshins of &ch research and extension to
federally supported agricultural research and extension ;
( C ) reviewing and ~rovidingconsultation to the Secretary on
national policies, priorities, and strategies for apricultnral
researc,h and extension for both the short and long term;

PUBLIC LAW 95-113-SEPT.

29, 1977

(D) assessing the overall adequacy of, and making recommendations to the Secretary with regard to, the distribution of
resources and the allocation of funds authorized by this title;
(E) preparing and submitting to the Secretary, not hter than
October 31 of each year, ,a statement of recommendations as to
allocations of responsibilities and levels of funding among federally supported agricultural research and extension programs,
which shall include a review and an assessment of the allocation of funds for agricultural research and extension made for
the preceding fiscal year by the organizations represented on the
Joint Councill. Minority views, if timely submitted, shall be
included in the submission. The Secretary shall submit copies of
the statement to the Subcommittee on Food and Renewable
Resources of the Federal Coordinating Council for Science, Engineering, and Technology, and the Joint Council ; and
(F) not later than March 1 of each year submitting a report
on ~ t appraisal
s
of the President's proposed budget for the food
and agricultural sciences for the fiscal year beginning in sucb
year and the recommendations of the Secretary contained in the
annual report submitted by the Secretary pursuant to the provisions of section 1410 of this M e . Such report shall be submitted
to the President, the House Committee on Agriculture, the House
Committee on Appropriations, the Senate Committee on Agriculture, Nutrition, and Forestry, and the Senate Committee on
Appropriations. The report may include the separate views of
members of the Advisory Board. The first report shall be due not
later than Miarch 1,1979.

91 STAT. 989

Report to
Secretary of
A@cdture.

~
~ to ~
President and
congressional
committees-

EXISTING RESEARCH PROGRAMB

SEC. 1409. I t is the intent of Congress in enactins this title to 7 USC 3124.
augment, coordinate, and supplement the planning, initiation, and
conduct of agricultural research programs existing prior to t!he enactment of this title, except that it is not the intent of Congress in
enacting this title to limit the authority of the 'Secretary of Health,
Education, and Welfare under any Act which the Secretary of Health,
Education, and Welfare administers.

SEC.1410. The Secretary shall submit to the President and Con- Report to
gress bv February 1 of each year a report on the Nat,ion's agricultural President and
research, extension, and teaching activities, and such report shall Congress.
include7 USC 3125.
(1) a review covering the following three categories of activi-

t,iesof the Department of Agriculture with respect to apioultural
research, extension, and teachinq activities and the relationship
of these activities to similar activities of other departments and
agencies of the Federal Government, the States, colleges and
universities, and t,he private sector(A) a current inventory of such activities organized by
statutory authorization and budget outlay;
(B) a current inventorv of such activities organized by
field of basic and applied science; and
(C) a current inventory of such activities organized by
commodity and product category;

PUBLIC LAW 95-113-SEPT.

91 STAT. 990

29, 1977

(2) the statements of recommendations of the Joint Council
developed pursuant to the provisions of section 1407(d) (2) (G)
of this title and the statement of recommendations of the Advisory
Board developed pursuant to the provisions of section 1408(f)
(2) ( E ) of this title; and
(3) in the second and succeeding years, a five-year projection
of national priorities with respect to agricultural research, extension, and teaching, taking into account both domestic and international needs.
LIBRARIES A N D INFORMATION NETWORK

7 USC 3126.

SEC.1411. (a) It is hereby declared to be the policy of Congress

that-

Food and
Nutrition
Information and
Education
Resources
Center.
Establishment.

Appropriation

authorization.
Contract
authority.

(1) cooperation and cooordination among, and the more effective utilization of, disparate agricultural libraries and information units be facilitated;
(2) information and library needs related to agricultural
research and education be effectively planned for, coordinated,
and evaluated ;
(3) a structure for the coordination of the agricaltural libraries
of colleges and universities, Department of Agriculture libraries,
and their closely allied information gathering and disseminating
units be established in close conjunction with private industry
and other research libraries;
(4) effective access by all colleges and universities and Department of Agriculture personnel to literature and information
regarding the food and agricultural sciences be provided; and
( 5 ) programs for training in information utilization with
respect to the food and agricultural sciences, including research
grants for librarians, infor-mation scientists, and agricultural
scientists be established or strengthened.
(b) There is hereby established within the National Agricultural
Library of the Department of Agriculture a Food and Nutrition
Information and Education Resources Center. Such Center shall be
responsible for(1) assembling and collecting food and nutrition education
materials, including the results of nutrition research, training
methods, procedures, and other materials related to the purpose
of this title;
( 2 ) maintaining such information and materials in a library;
and
(3) providing for the dissemination of such information and
materials on a regular basis to St,ate educational agencies and
other interested persons.
(c) F,unds are hereby authorized to be appropriated annually in
such amounts as Congress may determine necessary to support the
purposes of this section. The Secretary is authorized to carry out this
section with existing facilities through the use of grants, contracts, or
such other means as the Secretary deems appropriate and to require
matching of funds. No funds appropriated to support the purposes
of this section shall be used to purchase additional equipment unless
specifically authorized by law subsequent to the date of enactment of
this title.

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 991

SUPPORT FOR THE JOINT COUNCIL AND ADVISORY BOblW

SEC.1412. (a) To assist the Joint Council and Advisory Board in 7 USc 3127.
the performance of their duties, the Secretary is authorized to
appoint(1) not to exceed five full-time professional staff employees
qualified in the food and agricultural sciences, and
(2) an executive director for such staff who shall perform
sudl duties as the chairmen of the Joint Council and the chairman
of the Advisory Board may direct, and who shall receive compensation at a rate not in excess of the rate for GS-18 in the General
Schedule set out in section 5332 of title 5 of the United States
Code.
(b) The Secretary shall provide such additional clerical assistance
and staff personnel as may be required to assist the Joint Council and
Advisory Board in carrying out their duties.
(c) I n formulating their recommendations to the Secretary, the
Joint Council and Advisory Board may obtain the assistance of
Department of Agriculture employees, and, to the maximum extent
practicable, the assistance of employees of other Federal departments
and agencies conducting related programs of agricultural research,
extension, and teaching and of appropriate representatives of colleges
and universities, including State agricultural experiment stations,
cooperative extension sen-ices, and other non-Federal organiz?tions
conducting significant programs in the food and agricultural sciences.
GENERAL PRO\'ISIONS

SEC.1413. (a) Any vacancy in the Joint Council or the Advisory V a d
Board shall not affect their powers under this title and shall be filled 7 USC 31z8.
in the same manner as the original position.
(b) Members of the Joint Council and Advisory Board shall serve Travel expenses.
without compensation, if not otherwise officers or employees of the
United States, except that they shall, while away from their homes or
regular places of business in the performance of services under this
title, be allowed travel expenses, including per diem in lieu of subs~stence,in the same manner as persons employed intermittently in the
Government service are allowed expenses under sections 5701 through
5707 of title 5 of the United States Code.
Subtitle G-Agricultural Research and Education Grants and
Fellowships
PROGRAM O F COMPETITIVF+ SPECIAL, AND FACILITIES GRANTS FOR
AGRICULTURAL RESEARCH

SEC.1414. Section 2 of the Act of August 4, 1965 (79 Stat. 431 ; 7
U.S.C. 450i), is amended to read as follows :
"SEC.2. (a) In order to promote research in food, agriculture, and
related areas, a research grants program is hereby established in the
Department of Agriculture.
"(b) The Secretary of Agriculture is authorized to make competitive
grants, for periods not to exceed five years, to State agricultural
experiment stations, all colleges and universities, other research
institutions and organizations, Federal agencies, private organizations
or corporations, and individuals, for research to further the programs
of the Department of Agriculture. To the greatest extent possible the
Secretary shall allocate these grants to high priority research taking

Grants.

91 STAT. 992

Appropriation
authorization.

Food and
agricultural
research grants.

Annual grants.

Deferred grants.

PUBLIC LAW 95-113-SEPT.

29, 1977

into consideration, when available, the determinations made by the
Joint Council on Food and AgriculturaI Sciences identifying high
priority research areas. I n seeking research proposals and in performing peer review evaluations of such proposals under this subsection,
the Secretary shall seek the widest participation of qualified scientists
in the Federal Government, a11 colleges and universities, State ,agricultural experiment stations, and the private sector. The research grants
shall be made without .regard to matching funds by the recipient or
recipients of such grants. There arc hereby authorized to be appropriated for the purpose of carrying out the provisions of t,his subsection, $25,000,000 for the fiscal year ~ n d i n gSeptember 30, 1978,
$30,00O7000for the fiscal year ending September 30, 1979, $35,000,000
for the fiscal year ending September 30,1980, $40,000,000 for the fiscal
gear ending September 30, 1981, and $50,000,000 for t.he fiscal year
ending September 30,1982, and not in excess of such sums as may after
the date of enactment of the Food and Agriculture Act of 1977 be
authorized b law for any subse uent fiscal year.
"(c) The ccretary of Agricu ture is authorized to make grants, for
periods not to exceed five years in duration"(1) to land-grant colleges and universities, .Stat: ?gricultural
experiment stations, and to all colleges and universltles 11av1n.g a
demonstrable capacity in food and agricultural research. as determined by the Secretary, to carry out research to facilitate or
expand promising breakthroughs in areas of the food and agricultural sciences of importance to the Nation ;and
"(2) to land-grant colleges and universities and State agricultural experiment stations, to facilitate or expand on-gomg StateFederaI food and agricultural research programs that (A)
promote excellence in research, (B) promote the development of
regional research centers, or (C) promote the research partnership between the Department of Agriculture and such colleges
and universities or State agricultural experiment stations.
These grants shall be made without regard to matching funds.
"(d) The Secretary of Agriculture shaIl make annual grants to
support the purchase of equipment, supplies, and land, and the construction, alteration, or renovation of buildings, necessary for the
eonduct of food and agriculturaI research, to"(1) each State agricultural experiment station in an amount
of $100,000 or an amount which is equal to 10 per centum of the
funds received by such station under the Act of March 2, 1887
(24 Stat. 440-442, as amended; 7 U.S.C. 361a-361i), and the Act
of October 10,1962 (76 Stat. 806-807, as amended; 16 U.S.C. 582a,
582a-1-582a-7),
whichever is greater: Provided, That of any
amount in excess of $50,000 made available under Chis paragraph
during any year for allotment to a State agricultural experiment
station, no payment thereof shaIl be made in excess of the amount
which the station makes avaiIabIe during that year for the pur-:
poses for which grants under this paragraph are made available;
and
"(2) each accredited college of veterinary medicine and State
agricultural experiment station which receives funds from the
Federal Government for animaI health research, in an amount
which is equal to 10 per centum of the animal health reqearch funds
received by such college or experiment station from the Federal
Government during the previous fiscal year.
Any college or State aaricultural experiment station eligibIe for annual
grants under this sutsection may elect to defer the receipt of an
annual grant for any fiscal year for up to five years: Provided, That

PUBLIC LAW 95-113-SEPT.

29, 1977

the total amounts deferred may not exceed $1,000,000. Application may
be made for receipt of deferred grants at any time during the five
years, subject to the matching funds requirement of this subsection
and the availability of appropriations under this subsection.
"(e) Each recipient of assistance under this section shall keep such
records as the Secretary of Agriculture shall, by regulation, prescribe,
including records which fully disclose the amount and disposltion by
such recipient of the proceeds of such grants, the total cost of the
project or undertaking in connection with which such funds are given
or used, and the amount of that portion of the costs of the project or
undertaking supplied by other sources, and such other records as mill
facilitate an effective audit. The Secretary of Agriculture and the
Comptroller General of the United States or any of their duly authorized representatives shall have access for the purpose of audit and
examination to any books, documents, papers, and records of the
recipients that are pertinent to the grants received under this section.
"(f) The Secretary of -4griculture shall limit allo~vableoverhead
costs. with respect to grants awarcled under this section, to those necessary to carry out the purposes of t.he grants.
" ( g ) Except as otherwise provided in subsection (b) of this section,
there are hereby antllorized to be appropriated such sums as are n e c
essary to carry out the provisions of this section.
"(h) The Secretary of Agriculture is authorized to issue such
rules and regulations as the Secretary deems necessary to carry out
the provisions of this section.".

9 1 STAT. 993

Recordkeeping.

Audit.

Appropriation
authorization.
Rules and
regulations.

GRANTS TO ESTABLSSH OR EXPAND SCHOOLS O F VETERINARY MEDICINE

SEC.1415. (a) The Secretary shall conduct a program of grants to
States for the purpose of meeting the costs of construction, employing faculty, acquiring equipment, sand taking ocher acition relaking to
the initial establishment and initial operation of schools of veterinary
medicine, or the expansion of existing schools of veterinary medicine,
as determned by the Secretary by regulations. This grant program
shall be based on a mahching formula of 50 per centum Federal and
50 per centum State funding.
(b) Except with respect to the States of Alaska and Hawaii, the
Secretary shall give preference in awarding grants to States which
file, wit.h their application for funds under this seation, assurances
satisfadory t~the Secretary t h a t
(1) the State has established, or has made a reasonable effort
to establish, la veterinary medical training pro am with one or
more States without colleges of veterinary me icine which consists of appropri'ate cooperative agreements providing for a
sharing of curriculum and costs by the individual States; and
(2) the clinical training of the school to be established or
expanded shall emphasize care and preventive medical programs
for f aod-woducing animals.
Notwithstanding clause (1) of this subsection, no State which the
Secretary determines has made a reasonable effort to establish appropriate cooperative agreements s h d l be denied a grant or otherwise
prejudiced because of its failure to establish such cooperative
agreements.
(c) Funds appropriated to carry out this section for any fiseal-gm
shall be apportioned and distributed as follows :
(1) Four per centum shall be retrained by the Department of
Agriculture for administrat+, program assistance to eligible
States, and program coordination.

7 USC 3151.

Grant preference.

Funds,
apportionment.

91 STAT. 994

PUBLIC LAW 95-113-SEPT.

29, 1977

(2) The remainder $hall be apportioned and distributed by
the Secretary to those Stiates which have applied for funds under
this section on such basis as the Secretary may deem appropriate:
Provided,That not less than 50 per centum of such funds shall
be made available to States which have accredited xhools of
veterinary medicine.
AMENDMENTS TO THE RESEARCH FACILITIES ACT O F 1 9 6 3

"Eligible
institution."
7 USC 390b.

Appropriation
authorizations.
7 USC 3 9 0 ~ .

Funds,
apportionment.

Post, p. 1018.
16 USC 582a-2.
7 Usc
321-326a,
328.

SEC.1416. The Act uf d l ~ l y22, 1963 (77 Stat. 90-92, as amended;
7 U.S.C. 390,390a-390k) ,is amended by(1) amending paragraph (2) of section 3 to read as follows:
"(2) the term 'eligibIe institution' Ineans a department established under provisions of the Bat of March 2, 1887 (24 Sht.
440-442, as amended; 7 U.S.C. 361a-361i), and under the direction of la college or university established in any State in
accordance with the Act of July 2, 1862 (12 Stat. 503-505, as
amended; 7 U.S.C. 301-305, 30'7 and 308), a department otherwise eshablished pursuant to staandards prescribed ,by any Stake
the purpose of which is to conduct agricyltural research, bhe
Connecticut Agricultural Experiment Station mat New Haven,
Connecticut, Che Ohio Agricul~tural Experiment Station a t
Wooster, Ohio, and those colleges, universities, and other legal
entities in each State now receiving, or which may hereafter
receive, benefits under the Ad of August 30, 1890 (26 Stat. 417419, as ,amended; 7 U.S.C. 321-326 land 328), including the
Tuskegee Instikute, or the A d of October 10, 1962 (76 Stat.
806-807, as amended; 16 U.S.C. 582a-582a-1-582a-7) ; and";
(2) striking out sections 4 through 12 and inserting in lieu
thereof the following new sections :
"SEC.4. (a) There are hereby authorized to be appropriated for
allocation to eligible institutions tinder this Act to be used for the
purpose set out in section 2 of this Act, $15,000,000 for the fiscal year
ending September 30, 1978, $19,000,000 for the fiscal year ending
September 30, 1979, $23,000,000 for the fiscal year ending September 30.1980, $27,000,000 for the fiscal year ending September 30,1981,
and $31,000,000 for the fiscal year ending September 30,1982, and not
in excess of such sums a s may after the date of enactrment of the Food
and Agriculture Act of 1977 be authorized by law for any subsequent
fiscal year.
" (b) (1) The first $4,000,000 appropriated for research facilities pursuant to this section for any fiscal year shall be apportioned equally
among eligible institutions.
"(2) Any amount in excess of $4,000,000 appropriated under this
section for any fiscal year shall be apportioned as follows: Each eligible institution shall be entitled to an amount which bears the same
ratio to the total amount of funds being allocated in such fiscal year
tmder this paragraph as the amount received by such institution in the
preceding fiscal year bears to the total a.monnt received by all eligible
institutions in such preceding fiscal year. The amount received by
eligible institutions in the preceding fiscal year shall be determined on
the basis of fnnds received under section 3 of the Act of March 2,1887,
section 3 of the Act of October 10,1962, and-with respect to institutions receiving benefits under the Act of llugust 30, 1890, including
Tuskegee Institute-on the basis of funds received under section 2 of
the ,4ct of August 4, 1965 (78 Stat. 431: 7 1T.S.C. 450i), during the
fiscal years ending Septelnber 30, 1977, and September 30, 1978. and

PUBLIC LAW 95-113-SEPT.

29, 1977

on the basis of funds received under section 1445 of the Food and
Agriculture Act of 1977 in subsequent years.
"(c) It shall be the duty and responsibility of the Secretary t o
administer the provisions of this Act under such rules and regulations
as the Secretary may prescribe as necessary therefor.
"SEC.5. AS a condition for receiving funds apportioned under section
4 of this Act, each eligible institution shall submit, in such form as the
Secretary may require, specific proposals for planning, acquisition,
const.ruction, repair, rehabilitation, renovation, or remodeling of buildings, laboratories, and other capital facilities including the acquisition
of fixtures and equipment, including scientific instrumentation, which
are to become part of such buildings. I n a State having more than one
eligible institntion the Secretary shall devise procedures to insure that
the facility proposals of the eligible institutions in such State provide
for a coordinated food and agricultural research program among eligible inst,itutions in such State.
"SEC.6. Any unused portion of the allotment to any eligible institution for any fiscal year shall remain available a t the option of such
institntion for payment to such institution for a period of not more
than five fiscal years following the fiscal year in which such allotment
is first made arailable.
"SEC.7. T17ith respect to multiple-purpose physical facilities, the
segment or portion thereof which is to be utilized for food and agric u l t ~ ~ rresearch
al
sllall be the basis for determination of fund support
under this Act.
"SEC.8. For each fiscal year that funds are made available for allocation the Secretary shall ascertain, at the earliest practicable date
during such year, the amount, of the allocation to which each eligible
institution is entitled and shall notify each such institution in writing
prolnptly thereafter as to the amount of such allocation.
"SEC.9. (a) Any eligible institution authorized to receive payments
under the provisions of section 4 of this Act shall have a chief administrative officer and a duly designated fiscal officer, who shall be the persons responsible for receipt of payments under the Acts referred to in
section 4 ( b ) of this Act. to whom payments can be directed by the
Secretary. Such fiscal officer shall receive and account for all funds
paid to such institution pursuant to the provisions of this ,4ct, and
shall submit a report,, approved by the chief admministrative officer of
such institution, to t.he Secretary on or before the first day of December of each year. Such report shall contain a detailed statement of
the amount received under the provisions of this Act during the preceding fiscal year, and of its disbursements on schedules prescribed by
the Secretary.
"(b) I f any portion of the allotted funds received by the duly
authorized fiscal officer of any eligible institution shall by any action
or contingency be diminished, lost. or misapplied, i t shall be repaid
by the institution concerned, and until repaid no part of any subsequent appropriation shall be allocated or paid to such institution.
"SEC.10. The Secretary shall make an annual report t o Congress
during the first regular session of each year with respect to (1) payments made under this Act, (2) the facilities, by institution, for which
such payments were made, and ( 3 ) whether any portion of the appropriation available for allotment t o any of the eligible institutions has
been withheld and, if so, the reasons therefor.
Y~Ec.11. Three, per centum of funds appropriated under this Act
shall be available to the Secretary for administration of this Act.";
and

91 STAT. 995

Rulesand regulations.
Planning
proposals.
7 USC390d.
p. 994.

7 USC 390e.

Multiple-purpose
physical
facilities.
7 USC 390f.
Funds,
apportionment.
7 USC 39%

Chief
administrative
officer and fiscal
7 USC 390h.

Report to
Secretary of
Agriculture.

Lost or
misapplied
funds.

Report to
Congress.
7 USC 390i.

7 USC 390j.

91 STAT. 996
7 USC 390,390a.

PUBLIC LAW 95-113-SEPT.

29, 1977

(3) striking out '(the State agricultural experiment stations"
each time i t occurs in the title, section 1,and section 2 and inserting in lieu thereof "eligible institutions", and striking out "on a
matching basis," in section 1.
GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES

EDUCATION

7 USC 3152.

Graduate and
postdoctoral
research and
training grants.

Undergraduate
program grants.

Predoctoral and
postdoctoral
fellowships.

Fellowship
review panels.

SEC. 1417. (a) The Secretary shall conduct a program of competitive
grants for all colleges and universities for the purpose of furthering
education in the food and agricultural sciences. These grants shall b0
made in the following two categories :
11) Grants to strengthen programs of training and research in
the food and agricultural sciences for scientists at the raduate
and postdoctoral levels a t all colleges and universities. &ants in
this category may be used for exploratory research by such scientists, the acquisition of instruments, equipment, and facilities for
rasearch and training and other programs and activities aimed
at meeting departmental, interdepartmental, or institutionwide
training and research needs, or a combination thereof. Grants
shall be made on a competitive basis and may cover periods not to
exceed four years. Competition for such grants shall be open to i ~ l l
colleges and universities in the United States which have a capacity for teaching, research, and the dissemination of research
results in the food and agricultural sciences or which are establishing such programs.
(2) Grants to strengthen undergraduate programs in the food
and agricultural sciences at all co1lege.s and universities. Grants
in this category may be used to support programs designed to
improve such undergraduate programs through traditional or
non-traditional courses, curriculums, or teaching modes. Grants
shall be made on a competitive basis and may cover periods not to
exceed two years. Competition for such grants shal! be open to all
colleges and universities or to groups of such inst~tutionswhich
individually or collectively have a capacity for teaching, research,
and the dissemination of research results in the food and agricultural sciences o r which art?establishing such programs.
(b) The Secretary shall conduct a program of predoctoral and postdoctoral fellowships in the food and agricultural sciences. These
fellowships shall be made in the following two categories :
(1) Predoctoral fellowships, each for a period of up to four years.
The purpose of these fellowships shall be to provide training and
increase research capabilities in areas of need as identified by each
State. These fellowships shall be awarded on the basis of merit, as
determined by review panels est,ablished annually by the Secretary,
to graduate students from each of the States, if the following criteria
are satisfied :
(A) the student is enrolled in a graduate degree program in a
college or university ;and
(B) the student intends to pursue or is pursuing a course of
study in the food and agricultural sciences which is directly
related to an area of need as identified by the Governor or chief
executive officer of the State.
At least three such fellowships shall be awarded to students from each
State in every year.
(2) Postdoctoral fellowships, each for a period of from one t o five
years. The purpose of these fellowships shall be to attract highly

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 997

promising investigators to research careers in the basic sciences related
to agriculture and to provide stipends and resea.rch support for their
training and establishment as independent investiga.tors. I n rnakinp
awards under this paragraph, the Secretary shall give priority to
individuals doing basic research a t colleges and universities.
(c) Funds authorized in section 22 of the -4ct of June 29,1935 (49 Funds, transfer.
Stat. 439, as amended; 7 U.S.C. 329), are transferred t o and shall be
administered by the Secretary of Agriculture.
( d ) There are hereby authorized to be appropriated for the pur- Appropriation
poses of carrying out the provisions of this section $25,000,000 for the authorization.
fiscal gear ending September 80, 1978, $30,000,000 for the fiscal year
ending September 30, 1979, $35,000,000 for the fiscal year ending
September 30, 1980, $40,000,000 for the fiscal year ending September
30,1981, and $50,000,000 for the fiscal year ending September 30,1982,
and not in excess of such sums as may after the date of enactment
of this title be authorized by law for any subsequent fiscal year.
NATIONAL AGRICULTURAL RESEARCH SWARD

SEC. 1418. ( a ) The Secretary shall establish the National Agricultural Research Award for research or advanced studies in the food
and agricultural sciences. Two such awards, one for each of the cate.
described
.
in subsection (c) of this section, shall be made in
gories
each fiscal year.
(b) The awards shall not exceed $50,000 per year for a period of
by. the
not to exceed three years to support research o r study
.
recipient.
(c) Awards under this section shall be made in each fiscal year in
two categories as follows :
(1) t o a scientist in recognition of outstanding contributions
to the advancement of the food and agricultural sciences; and
(2) to a research scientist in early career development or a graduate student, in recognition of demonstrated capability and promise of significant future achievement in the food and agricult.ura1
sciences.
(d) The Secretary may establish such nominating and selection
committees, to consist of scientists and others, to receive nominations
and make recommendations for awards under this section, as the
Secretary deems appropriate.

Establishment.
7 USC 3153.

Categories.

Nominating and
selection
committees.

GRANTS FOR RESEARCH O N THE PRODUCTION AND MARKETING OF ALCOHOLS AND INDUSTRIAL HYDROCARBOSS FROM AGRICULTURAL COMMODITIES A N D FOREST PRODUCTS, Ah-D AGRICULTURAL CHEMIC-ILS AND OTHER
PRODUCTS FROM COAL DERNA4TIVES

SEC. 1419. The Secretary shall make grants under this section to 7 USC 3154.
colleges and universities for the purpose of conducting research
related to the production and marketing of (1) coal tar, producer gas,
and other coal derivatives for the mannfacture of agricultural chernicals, methanol, methyl fuel, and alcohol-blended motor fuel (such
agricultural chemicals t o include, but not be limited to, ferti!izers,
herbicides, insecticides, and pesticides), (2) alcohol made from a p i cultural commodities and forest products as a substitute for alcohol
made from petroleum products, and (3) other industrial hydrocarbons
made from agricultural commodities and forest products. There are Appropriation
hereby authorized t o be appropriated for the purposes of carrying out authorization.

91 STAT. 998

PUBLIC LAW 95-113-SEPT.

29, 1977

the provision of this section, $3,000,000 for the fiscal year ending September 30, 1978, and such sums as may be necessary for the four
subsequent fiscal years ending September 30,1979, September 30,1980,
September 30,1981, and September 30,1982 : Provided,That the total
amount of such appropriations shall not exceed $24,000,000 during t.he
five-year period beginning October 1,1977, and ending September 30,
1982, and not in excess of such sums as may after the date of enactment of this title be authorized by law for any subsequent fiscal year :
Provided further, That not more than a total of $3,000,000 may be
awarded to the colleges and universities of m y one State.
PILOT PROJECTS FOR THE PRODUCTION A N D MARKETING O F INDUSTRIAL
H D R O C A R B O N S A N D ALCOHOLS FROBr AGRICULTUIUL COMNODITIES AND
FOREST PRO1)UCTS

7 USC 2669.

Guaranteed
loans.

Contract

authority.

SRC.1420. Title V of the Rural Development Act of 1972 (86 Stat.
671-674. as amended: 7 U.S.C. 3661-9668) is amended by adding at
the end thereof a new section as follows :
"SEC.509. (a) The Secretary is authorized and directed to formulate and carry out a pilot program for the production and marketing
of indusDria1 hydrocarbons derived from agricultural commodities and
forest products for the purpose of stabilizing and expanding the
market for such comniodities and products and expmding the PJation's
supply of industrial hydrocarbons.
"(b) The Secretary shall provide for four pilot projects for the
production of industrial hydrocarbons and alcohols from agricnltural
commodities and forest prodi~ctsby guaranteeing loans, not t.o exceed
$15,000,000 per each such project, to public, private, or cooperative
organizations organized for profit or nonprofit, or to individuals for
a term not to exceed twenty years at a rate, of interest agreed upon
by the borrower and lender.
"(c) No loan may be guaranteed under this section unless (1)
research indicates the total energy content of the products and byproducts to be manufactured by the loan applicant will exceed the total
energy input from fossil fuels used in the nlanufact.ure of such products and byproducts, and (2) such other conditions as the Secretary
deems appropriate to achieve the purposes of this section are met.
"(d) In order to assure that the recipients of loans made under this
section have a dependable supply of agricultural commodities at a
stable price for use in the pilot projects provided for in this section,
the Secretary is authorized to enter into long-term contracts, not
exceeding five years, with the recipients of such loans. Such contracts
shall guarantee the recipients of such loans a specified quantity of
agricultural conlmodities annually at, mutually agreed upon prices, but
the agricultural comn~oditiesshall not be sold under any such contracts
at less than the price support level prescribed for the commodity concerned unless the conlmodities are out of condition, unstorable, or
sample- rade or lower, as prescribed in Department of Agriculture
standarfs.
"(e) The Secretary shall supply from Commodity Credit Corporation stocks or, to such extent or in such amounts as are rovided in
appropriation Acts, purchase such quantities of ngricu?tural commodities as may be necessary to comply with the terms of agreements
entered into under this section.
"( f ) The provisions of t.his section shall be carried out through the
Commoclity Credit Corporntion.".

PUBLIC LAW 95-113-SEPT.
Subtitle >National

29, 1977

91 STAT. 999

Food and H ~ u n a nNutrition Research and
Extension Program

FINDINGS AND DECLARATIONS

SEO.1421. (a,) Congress hereby finds that there is increasing evi-

7 USC 3171.

dence of a relationship between diet and many of the leading causes
of denth in the Unit,ed States: that improved nutrition is an integral
component of preventive health care; that there is a serious need for
research on the chronic effects of diet, on degenerative diseases and
related disorders; that nutrition and health considerations arc important to United States agricultural policy; that there is insufficient
knowledge concerning precise human nutritional requirements. the
interact~onof the various nutritional constituent,^ of food, and differences in nutritional requirements among different population groups
such as infants, children. adolescents, elderly men and women, and
pregnant women; and that thcre is a crit,ical need for objective data
concerning food safety, the potential of food enrichment, and means
to enconrage better nutritional practices.
(b) It is hereby declared to be t.he policy of the United States that
the Department of Agriculture cond~ictresearch in the fields of human
nutrition and the nutritive value of foods and conduct human nutrition
education activities, as provided in this subtitle.
DUTIES O F THE SECRETARY O F AGRICULTURE

SEC.1422. I n order to carry out the policy of this subtitle, the Secre- 7 USC 3172.
tary shall develop and implement a national food and human nutrition
research and extension program that shall include, but not be limited
t*
(1) research OP human nutritional requirements;
(2) research on the nutrient composition of foods and the effects
of agricu~lt~iral
practices, handling, food processing, and cooking
on the nutrients they contain ;
(3) surveillance of the nutritional benefits provided to participants in the food programs administered by the Department of
Agriculture ;
(4) research on the factors affecting food preference and habits;
and
(5) the development of techniques and equipment to assist
consumers in the home or in institutions in selecting food that
supplies a nutritionally adequate diet.
RESEARCH BY THE DEPARTMENT O F AGRICULTIJRE

SEC.1423. (a) The Secretary shall establish research into food and 7 USC 3173.
human nutrition as a separate and distinct mission of the Department
of Agriculture, and the Secretary shall increase support for such
research to a level that provides resources adequate to meet the policy
of this subtitle.
(b) The Secretary, in administering the food and human nutrition
research program, shall periodically consult with the administrators
of the ot,herFederal depart.ments and agencies that have responsibi~lity
for programs dealing with human food and nutrition, as to the specific
research needs of those departments and agencies.

91 STAT. 1000

PUBLIC LAW 95-113-SEPT.

29, 1977

STUDY

Regional food
and human
nutrition research
centers.

3174.
Report to
Congress.

SEC.1424. The Secretary shall perform a study assessing the potential value and cost of establishing regional food and human nutrition
research centers in the United States. This assessment shall examine
the feasibility of using existing Federal facilities in establishing such
centers. The Secretary shall complete this study and submit a report
setting forth the findings of the study and recommendations for the
implementation of these findings, as a part of the plan the Secretary
is required to submit to Congress pursuant to section 1427 of this tible,
not later than one year after the effective date of this title.
NUTRITION EDUCATION PROGRAM

Establishment.

7 USC 3175.

SEC.1425. ( a ) The Secretary shall establish a national education
program which shall include, but not be limited to, the dissemination
of the results of food and human nutrition research performed or
funded by the Department of Agriculture.
(b) I n order to enable low-income individuals and families to engage
in nutritionally sound food purchasing and preparation practices, the
expanded food and nutrition education program presently conducted
under section 3 ( d ) of the Act of May 8,1914 (38 Stat. 373, as amended ;
7 U.S.C. 343 ( d ) ) , shall be expanded to provide for the employment
and training of professional and paraprofessional aides to engage in
direct nutrition education of low-income families and in other appropriate nutrition education programs. Funds for carrying out the provisions of this subsection shall be allocated to each State in an amount
which bears the same ratio to the total amount to be allocated as the
population of the State living a t or below 125 per centum of the income
poverty guidelines prescribed by the Office of Management and Budget
(adjusted pursuant to section 625 of the Economic Opportunity Act
of 1964 (86 Stat. 697, as amended; 42 U.S.C. 2971d)), bears to the
total population of all the States living a t or below 125 per centum of
the income poverty guidelines, as determined by the last preceding
decennial census at the time each such sum is first appropriated. To the
maximum extent practicable, program aides shall be hired from the
indigenous target population. The provisions of this subsection shall
not preclude the Secret,ary from developing educational materials a?d
programs for persons in income ranges above the level designated m
this subsection.
NUTRITION EDUCATION MATERIALS

Elementary and
secondary school
programs.

7 USC 3176.

SEC.1426. I n order to encourage nutrition education programs in
t,he classrooms and lunchrooms of elementary and secondary schools,
the Secretary shall, in consultation with appropriate officers in the
Department of Health, Education, and Welfare, develop and
distribute to State departments of education a comprehensive set of
educational materials on food and nutrition education which shall be
appropriate for all levels of the elementary and secondary education
system.
REPORT TO CONGRESS

7 USC 3177.

SEC.1427. The Secretary shall submit a comprehensive plan for
implementing the national food and human nutrition research. and
extension program provided for by this subtitle to Congress within
one year after the effective date of this title. The plan shall include,
but not be limited to, recommendations relating to research direction,

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 1001

funding levels, needed facilities grants, and use of Federal facilities in
cooperation with States and others, necessary t o achieve the policy
set forth in section 1421 of this title.
NUTRITIONAL STATUS MONITORING

SEC. 1428. (a) The Secretary and the Secretary of Health, Education, and Welfare shall formulate and submit to Congress, within
ninety days after the date of enactment of this title, a proposal for a
comprehensive nutritional status monitoring system, to include :
(1) an assessment system consisting of periodic surveys and
continuous monitoring to determine: the extent of risk of nutrition-related health problems in the United States; which population groups or areas of the country face greatest risk; and the
likely causes of risk and changes in the above risk factors over
time ;
(2) a surveillance system to identify remediable nutritionrelated health risks to individuals or for local areas, in such a manner as to tie detection t o direct intervention and treatment. Such
system should draw on screening and other information from
other health programs, including those funded under titles V,
X V I I I , and X I X of the Social Security Act and section 330 of the
Public Health Service Act ;and
(3). program evaluations to determine the adequacy, efficiency,
effectiveness, and side effects of nutrition-related programs in
reducing health risks to individuals and populations.
(b) The proposal shall provide for coordination of activities under
existing authorities and contain recommendations for any additional
aut,horities necessary to achieve a comprehensive monitoring system.

Report to
Congress.
7 USC 3178.

42 USC 701,
1395, 1396.
42 USC 254~.

Subtitle E-Animal Health and Disease Research
PURPOSE

SEC.1429. It is the purpose of this subtitle to promote the general
welfare through the improved health and productivity of domestic
livestock, poultry, aquatic animals, and other income-producing animals which are essential to the Nation's food supply and the welfare
of producers and consumers of animal product,^; to improve the health
of horses; to facilitate the effective treatment of, and, where possible,
prevent, animal and poultry diseases in both domesticated and wild
:~nimalswhich, if not controlled, would be disastrous to the United
States livestock and poultry industries and endanger the Nation's food
supply ;to minimize livestock and poultry losses due t o transportation
and handling; to protect human health through control of animal
diseases transmissible to humans; to improve methods of controlling
the births of predators and other animals; and otherwise to promote
the general welfare through expanded programs of research and extension to improve animal health. It 1s recognized that the total animal
health and disease research and extension efforts of the several State
colleges and universities and of the Federal Government would be
inore effective if there were close coordination between such programs,
and i t is further recognized that colleges and universities having
accredited colleges of veterinary medicine or departments of veterinary sciences or animal pathology, and similar units conducting
animal health and disease. resea~ch in the State agricultural
experiment stations, are especially vltal in training research workers
in animal health.

usc 3191.

91 STAT. 1002

PUBLIC LAW 95-113-SEPT.

29, 1977

DEFINITIONS

7 USC 3192.

SEC.1430. When used in this subtitle-(1) the term "eligible institution" means any college or university having an accredited college of veterinary medicine or a
department of veterinary science or animal pathology, or a similar
unit conducting animal health and disease research in a State
agricultural experiment station ;
(2) the term "dean" means the dean of a college or university
which qualifies as an eligible institution;
(3) the term "director" means the director of a Sbate agricultural experiment station which qualifies as an eligible institution;
(4) the term "Board" means the Animal Health Science
Research Advisory Board ;and
( 5 ) the term ':animal health resea.rch capacity" means the
capacity of an eligible institution to conduct animal health and
disease research, as determined by the Secretary.
AUTHORIZATION TO THE SECRETARY OF AGRICULTURE

7 USC 3193.

SEC. 1431. I n order to carry out the purpose of this subtitle, the
Secretary is hereby authorized to cooperate with, encourage, and assist
the States in carrying out programs of animal health and disease
research at eligible inst.itutions in the manner hereinafter described in
this subtitle.
ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD

Establishment;
membership.
7 USC 3194.

Travel expenses.

SEC.1432. (a) The Secretary shall establish a board to be known
as the Animal Health Science Research Advisary Board which shall
have a term of five years, and which shall be composed of the following eleven members( 1 ) a representative of the Agricultural Research Service of
the Department of Agriculture,
(2) a representative of the Cooperative State Research Service
of the Depatment of Agriculture,
( 3 ) a representative of the Animal and Plant Health Inspection
Service of the Department of Agriculture,
(4) a representative of the Bureau of Veterinary Medicine of
the Food and Drug Administration of the Department of Health,
Education, and Welfare, and
(5) seven members appointed by the Secretary(A) two persons representing accredited colleges of veterinary medicine,
(B) two persons representing St.ate agricultural experiment stations, and
(C) three persons representing national livestock and poultry organizations.
The members shall serve without compensation. if not otherwise
officers or employees of the United States, except that they sh,all,while
away from t.heir homes or regular places of business in the performance of services for the Board, be allowed travel expenses, including
per diem in lien of subsistence, in the same manner as persons employed
intermittently in the Government service are allowed expenses under
sections 5701 through 5707 of title 5 of the United States Code.
(b) The Board shall meet a t the call of the Secretary, but at least
once annually, to consult with and advise the Secretary with respect

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 1003

to the implementation of this subtitle and to recommend immediate
priorities for the conduct of research programs authorized under this
subtitle, under such rules and procedures for conducting business as
the Secretary shall, in the Secretary's discretion, prescribe.
APPROPRIATIONS FOR CONTIXUING ANIMAL HEALTH AND DISEBSE
RESEARCH PROGRAMS

Sec. 1433. ( a ) There are hereby authorized to be appropriated such
funds, not to exceed $25,000,000 annually, as Congress may determine
necessary to support continuing animal health and disease research
programs a t eligible institutions. Funds appropriated under this section shall be used: ( 1 ) to meet expenses of conducting animal health
and disease research, publishing and disseminating the results of such
research, and contributing t o the retirement of employees subject to
the provisions of the Act of March 4,1940 (54 Stat. 3940, as amended ;
7 U.S.C. 531) ; (2) for administrative planning and direction; and (3)
to purchase equipment and supplies necessary for conducting such
research.
(b) Funds appropriated under subsection (a) of this section for any
fiscal year shall be apport,ioned as follows :
(1) Four per centum shall be retained by the Department of
Agriculture for administration. program assistance to the eligible
institutions, and program coordination.
(2) Forty-eight per centum shall be distributed among the several States in the proportion that the value of and income to producers from domestic livestock and poultry in each State bears to
the total value of and income to producers from domestic livestock
and poultry in all the States. The Secretary shall determine the
total value of and income from domestic livestock and poultry
in all the States and the proportionate value of and income from
domestic livestock and poultry for each State, based on the most
current inventory of all cattle, sheep, swine, horses, and poultry
published by the Department of Agriculture.
(3) Forty-eight per centum shall be distributed among the several States in the proportion that the .animal health research
capacity of the eligible institutions in each State bears to the total
animal health research capacity in all the States. The Secretary
shall determine the animal health research capacity of the eligible
institutions with the advice, when available, of the Board.
(c) I n each State with one or more accredited colleges of veterinary
medicine, the deans of the accredited college or colleges and the director of the State agricultural experiment station shall develop a cornprehensive animal health and disease research program for the
State based on the animal hedth research capacity of each eligible
institution in the State, which shall be submitted to the Secretary for
approval and shall be used for the allocation of funds available to
the State under this section.
(d When the amount available under this section for allotment to
any tate on the basis of domestic livestock and poult,ry values and
income exceeds the amount for which the eligible institution or institutions in the State are eligible on the basis of animal health research
capacity, the excess may be used, a t the discretion of the Secretary, for
remodeling of facilities, construction of new facilities, or increase in
staffig, proportionate to the need for added research capacity.
(e) Whenever a new college of veterinary medicine is established
in a State and is accredited, the Secretary, after consultation with the

Appropriation
authorization.

USC 3195.

Funds,
apportionment.

State animal
health and
disease research
pmgam.

Excess funds.

Funds,
reallocation.

9 1 STAT. 1004

Regional colleges
of veterinary
medicine.

PUBLIC LAW 95-113-SEPT.

29, 1977

dean of such college and the director of the State agricultural experiment station and, where applicable, deans of other accredited colleges
in the State, shall provide for the reallocation of funds available to
the State pursuant to subsection (b) of this section between the new
colle e and other eligible institutions in the State, based on the animal
heal& research capacity of each eligible institution.
(f) Whenever two or more States jointly establish an accredited
regional college of veterinary medicine or jointly support an accredited
college of veterinary medicine serving the States involved, the Secretary is authorized to make funds which are available to such States
pursuant to subsection (b) (2) of this section available for such college in such amount that reflects the combined relative value of and
income from domestic livestock and poultry in the cooperating States,
such amount to be adjusted, as necessary, pursuant to the provisions
of subsections (c) and (e) of this section.
APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS

Appropriation
authorization.

7 USC 3196.

SEC.1434. (a) There are hereby authorized to be appropriated such
funds, not to exceed $15,000,000 annually, as Congress may determine
necessary to support research on specific national or regional animal
health or disease problems.
(b) Funds appropriated under this section shall be allocated by the
Secretary to eligible institutions for work to be done, as mutually
agreed upon between the Secretary and the eligible institution or
institutions. The Secretary shall, whenever possible, consult the Board
in developing plans for the use of these funds.
AVAILABILITY O F APPROPRIATED FUNDS

7 USC 3197.

SEC. 1435. Funds available for allocation under the terns of this
subtitle shall be paid to each State or eligible institution at such times
and in such amounts as shall be determined by the Secretary. Funds
shall remain available for payment of unliquidated obligations for
one additional fiscal year following the year of appropriation.
WITHHOLDING O F APPROPRIATED FUNDS

7 USC 3198.

Report to
President.

SEC.1436. I f the Secretary determines that a State is not entitled
to receive its allocation of the annual appropriation under section
1433 of this title because of its failure to satisfy requirements of this
subtitle or regulations issued under it, the Secretary shall withhold such
amount. The facts and reasons concerning the determination and withholding shall be reported to the President; and the amount involved
shall be kept separate in the Treasury until the close of the next Congress. I f the next Congress does not direct such sum to be paid, it shall
be carried to surplus.
REQUIREMENTS FOR USE OF FUNDS

Research project
proposals.

7 USC 3199.

SEC.1437. With respect to research projects on problems of animal
health and disease to be performed at elig+ble institutions and supported with funds allocated to the States under section 1433 of this
title, the dean or director of each eligible institution shall cause to be
prepared and shall review proposals for such research projects, which
contain data showing compliance with the purpose in section 1429 of
this title and the provisions for use of funds specified in section 1433
(a) of this title, and with general guidelines for project eligibility

PUBLIC LAW 95-113-SEPT.

29, 1977

9 1 STAT. 1005

to be provided by the Secretary with the advice, when available, of the
Board. Such research proposals that are approved by the dean or direc- Report to
tor shall be submitted to the Secretary prior to assibwent of funds Secretav of
thereto with a brief summary showing compliance wlth the provisions Agnculture.
of this subtitle and t,he Secretary's general guidelines.
MATCHING E'UNDS

SEC.1438. No funds in excess of $100,000, exclusive of the funds 7 use 3200.
provided for research on specific national or regional animal health
and disease problems under the provisions of section 1431 of this title,
shall be paid by the Federal Government to any State under this subt,itle during any fiscal year in excess of the amount from non-Federal
sources made available to and budgeted for expenditure by eligible
institutions in the State during the same fiscal year for animal health
and disease research. The Secretary is authorized to make such payments in excess of $100,000 on the certificate of the appropriate official
of the eligible institution having charge of the animal health and
disease resea.rch for which such payments are to be made. If any eligible institution certified for receipt of matching funds fails to make
available and budget for expenditure for animal health and disease
research in any fiscal year sums at least equal to the amount for which
it is certified, the difference between the Federal matching funds available and the funds made available to and budgeted for expenditure
by the eligble institution shall be reapportioned by the Secretary
among other eligible institutions of the same State, if there are any
which qualify therefor, and, if there are none, the Secretary shall reapportion such difference among the other States.
ALLOCATIONS UNDER THIS SUBTITLE NOT SUBSTITUTIONS

SEC.1439. The sums appropriated and allocated to States and 7 USC 3201.
eligible institutions under this subtitle shall be in addition to, and
not in suabst.itution for, sums appropriated or otherwise mlade available
to such Stakes and institutions pursuant to other pr~visionsof lam.
Subtitle F-Small

Farm Research and Extension

SMALL F A R M RESEARCH AND EXTENSION PROGRAMS

SEC.1440. Section 502 of bhe Rural Development Act of 1972 (86
Stat. 671; 7 U.S.C. 2662) is amended by(1) amending subsection (c) to read as follows:
" ( c ) SMALLFARM
RESEARCH
P R O G R A M S . - Sfarm
~ ~ ~research
~
programs shlall consist of p r w a m s of research to develop new approaches
for initiating and upgrading small farmer operations through management techniques, agricultural production twhniques, farm machinery
technology, new products, new marketing techniques, and small farm
finance."; and
(2) adding (at bhe end thereof a new subsection (d) as follows :
"(d) SMALLFARM
EXTENSION
P R O G R A M S . - Sfarm
~ ~ ~ ~extension
programs shall consist of extension programs to improve operations
of small farmers using, to the maximum extent practicable, parapmfessional ~ersonnelto work with small farmers on an intensive basis
to initiateland improve management techniques, agricultural pruduction techniques, farm machinery technology, marketing techniques,

91 STAT. 1006

PUBLIC LAW 95-113-SEPT.

29, 1977

and small farm finance, and to increase utilization by small farmers
of existing services offered by the United St'ates Department of Agriculture and other public and private agencies and organizations.".
PROGRAM MONEYS

7 USC 2662.

Appropriation
authorization.

Funds,
a~~o*ionment.

SEC.1441. Swtioa 503 of the Rural Development Act of 1972 (86
Stat. 672, as amended; 7 U.S.C. 2663) is amended by(1) inserting in subsection (a) a comma and the phrase "except
subsections (c) and (d) of section 502," after the phrase "this
title";
(2) redesignating subsections (c), ( d ) , and ( e ) $as (e), ( f ) ,
and (g),respectively ;
( 3 ) adding new subsections (c) and ( d ) as follows:
" ( c ) There are hereby authorized to be appropriated to carry out
the purposes of subsections ( c ) and (d) of section 502 of this title
not to exceed $20,000,000 for each of the fiscal years ending September 30, 1978, and September 30, 1979.
"(d) Such sums as Congress shall appropriate to oarry out the
purposes of this title pursuant to subsection (c) of this section shall
be distributed by the Secretary as follows:
L'(l)
4 per centum to be used by the Secretary for Federal
administration ;
"(2) 19 per centum to be allocated among the several States
to carry out the programs authorized in subsectiron (c) of sectmion
502 of this title in such lamounts as determined by the Secretary;
and
" (3) 77 per centurn to be allmated among the several States to
carry out the programs authorized in subsection (d) of section
502 of tihis title in such amounts as determined by the Secretary.";
and
(4) striking out in subsection ( f ) , as redesignated by subsection (b) of t h s section, the word "and" after " (b) ,"and inserting
a comma and the phrase "and (d) " 'after " (c) ".
DEFINITION O F SMALL FARMER

SEC. 1442. Section 507 of the Rum1 Development Act of 1972 (86
Stat. 674; 7 U.S.C. 2667) is amended by adding a t the end thereof
a new subsection (c) to read as follows:
"(6) 'Small farmer' means any farmer with gross sales from
farming of $20,000 or less per year.".
REPORTS

SEC.1443. Title V of the Rural Development Act of 1972 (86
Stat. 671-674, as amended; 7 U.S.C. 2661-2668) is amended by adding
at the end thereof a new section 510 to read as follows :
Report to
Congress.
7 USC 2670.

"SEC.510. The Secretary shall evaluate annually the effectiveness
of the programs established under subsections (c) and (d) of section
502 of this title and make a report to Congress not later than February
1 of each year on that evaluation and the operation of the programs
during the preceding fiscal year.".

PUBLIC LAW 95-113-SEPT.
Subtitle G-1890

29, 1977

91 STAT. 1007

Land-Grant College Funding

EXTENSION AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
INSTITUTE

SEC. 1444. (a) There are hereby authorized to be appropriated * P P ~ ~ P ~ ~ ~
annually such sums as Congress may determine necessary to support
continuing agricultural and forestry extension at colleges eligible to
receive funds under the Act of August 30, 1890 (26 Stat. 417419, as
amended ; 7 1T.S.C. 321-326 and 328), including Tuskegee Institute
(hereinafter in this section referred to as "eligible institutions").
Beginning with the fiscal year ending September 30, 1979, there shall
be appropriated under this section for each fiscal year an amount not
less than 4 per centum of the total appropriations for such year under
the ,4ct of May 8. 1914 (38 Stat. 372-374, as amended; 7 U.S.C.
341-349) : Provided. That the amount appropriated for the fiscal year
endin September 30, 1979, sllall not be less than the amount made
availa le for the fiscal year ending September 30,1978, to such eligible
institilt.ions under section 3(d) of the Act of May 8.1914 (38 Stat. 313,
as amended ; 7 1T.S.C. 343 (d) ) . Funds appropriated under this section
shall be used for expenses of conducting extension programs and
activities, and for contributing to the retirement of employees subject
to the provisions of the Act of March 4, 1940 (54 Stat. 3940, as
amended; 7 U.S.C. 331). No more than 20 per centum of the funds
received by an institution in any fiscal year may be carried forward
to the succeeding fiscal year.
Funds,
(b) Beginning with the fiscal year ending September 30, 1979(1) any funds annually appropriated under this section up a~podo-ent.
to the amount appropriated for the fiscal year ending September
30. 1978. pursuant to section 3(d) of the *4ct of May 8, 1914, as
amended, for eligible institutions, shall be allocated among the
eligible institutions in the same proportion as funds appropriated under section 3(d) of the ,4ct of May 8, 1914, as amended,
for the fiscal vear ending September 30, 1978, are allocated
among the eligible institutions; and
(2) any funds appropriated annually under this section in
excess of an amount equal to the amount appropriated under section 3 ( d ) of the Act of Mav 8, 1914, for the fiscal year ending
September 30, 1978, for eligible institutions, shall be distributed
as follows :
(A) A sum equal to 4 per centum of the total amount
appropriated each fiscal year under this section shall be
allotted to the Extension Service of the Department of Agriculture for administrative, technical, and other services, and
for coordinating the extension work of the Department of
Agriculture and the several States.
(B) Of the remainder, 20 per centum shall be allotted
among the eligible institut.ions in equal proportions; 40 per
centum shall be allotted among the eligible institutions in the
proportion that the rural population of the State in which
each eligible inst.itntion is located bears to the total rural population of all the States in which eligible institutions are
located, as determined by the last preceding decennial census;
and the balance shall be allotted among the eligible institutions in the proportion that the farm population of the State
in which each eligible institution is located bears to the total

;;"$~~~,"~;

91 STAT. 1008

PUBLIC LAW 95-113-SEPT.

29,1977

farm population of all the States in which the elieble
institutions are located, as determined by the last preceding
decennial census.
I n computing the distribution of funds allocated under p a r a r p h
(2) of this subsection, the allotments to Tuskegee Institute an Alabama Agricultural and Mechanical University shall be determined
as if each institution were in a separate State.
Comprehensive
(c) The State director of the cooperative extension service and the
program of
administrative head for extension at the eligible institution in each
extension,
State where an eligible institution is located shall jointly develop, by
submittal to
mutual agreement, a comprehensive program of extension for such
Secretary of
State to be submitted for approval by the Secretary within one year
Agriculture.
after the date of enactment of this title.
Entitlement.
(d) On or about the first day of October in each year after enactment of this title, the Secretary shall ascertain whether each eligible
institution is entit,led to receive its share of the annual appropriation
for extension work under this section and the amount which it IS
Work plans.
ent,itledto receive. Before the funds herein provided shall become available to any eligible institution for any fiscal year,.plans for the work
to be carried out under this section shall be submitted by the proper
Report to
officials of each institution and approved by the Secretary. Such sums
Secretary of
shall be paid in equal quarterly payments on or about October 1,JanAgriculture.
uary 1, April 1, and July 1 of each year to the treasurer or ot,herofficer
of the eligible institut,ion duly aut.horized to receive such payments and
such officer shall be required to report to the Secretary on or about the
first day of December of each year a detailed statement of the amount
so received during the previous fiscal year and its disbursement, on
forms prescribed by the Secretary.
(e) I f any portion of the moneys received by any eligible institution
Lost or
misapplied funds. for the support and maintenance of extension work as provided in this
section shall by any action or contingency be dimmished or lost or be
misapplied, it shall be replaced by such institution and until so
replaced no subsequent appropriation shall be apportioned or paid to
such institution. No portion of such moneys shall be applied, directly
or indirectly, to the purchase. erection, pre,servation, or repair of any
building. or buildings, or the purchase or rental of land, or in college
course teaching, lectures in college, or any other purpose not speciInstitutional
fied in this section. It shall be the duty of such institution, annually,
operations, report on or about the first day of January, to make to the Governor of the
to Governor.
State in which it is located a full and detailed report of its operations
in extension work, including a detailed statement of receipts and
expenditures from all sources for this purpose, a copy of which report
shall be sent to the Secretary.
Report to
( f ) I f the Secretaq finds that an eligible instit.ution is not entitled
President.
to receive its share of the annual appropriation. the facts and reasons
therefor shall be reported to the President, and the amount involved
shall be kept separat,e in the Treasurv until the expiration of the next
Congress in order that the institution may, if it should so desire,
appeal to Congress from the determination of the Secretary. If the
next Congress does not direct such sum to be paid. it shall be carried to
surplus.
U.S. mail service,
(4)To the extent that the, official mail consists of correspondence,
use.
bulletins, and reports for furtherance of the purposes of this section. i t
h a l l be transmitted in the mails of the TTnited St,ates under penalty
indicia: Pro?>ided,That each iten1 shall bear such indicia as are prescribed by the Postmaster General and shall be mailed under such

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 1009

regulations as the Postmaster General may from time to time prescribe.
Such items may be mailed from a principal place of business of each
eligible institution or from an established subunit of such institution.
AGRICULTURAL RESEARCH AT 1 8 9 0 LAKD-GRANT COLLEGES, INCLUDING.
TUSKEGEE INSTITUTE

SEC.1445. ( a ) There are hereby authorized to be appropriated annu- Appropriation
ally such sums as Congress may determine necessary to support con- authorization.
tinuing agricultural research at colleges eligible to receive funds under
3222.
the Act of August 30, 1890 (26 Stat. 417419, as amended; 7 U.S.C.
321-326 and 328), including Tuskegee Institute (hereinafter referred
to in this section as "eligible institutions"). Beqinning with the fiscal
year ending September 30, 1979, there shall be appropriated under
this section for each fiscal year an amount not less than 15 per
centum of the total appropriations for such year under section 3 of
the Act of &larch2,1887 (24 Stat. 441, as amended; 7 U.S.C. 361c) : Post9 P- 101%.
Provided, That the amourlt appropriated for the fiscal year ending
September 30,1979, shall not be less than the amount made available in
the fiscal gear ending September 30,1978, to such eligible institutions
under the Act of August 4, 1965 (79 Stat. 431, 7 U.S.C. 450i). Funds
appropriated under this section shall be used for expenses of conducting agricultural research, printing, dissen~inatingthe results of such
research, contributing to the retirement of employees subject to the
provisions of the Act of March 4,1940 (54 Stat. 3940, as amended; 7
U.S.C. 331), administrative planning and direction, and purchase and
rental of land and the construction, acquisition, alteration, or repair
of buildings necessary for conducting agricultural research. The
eligible institutions are authorized to plan and conduct agricultural
research in cooperation with each other and such agencies, institutions,
and individuals as may contribute to the solution of agricultural problems, and moneys appropriated pursuant to this section shall be available for paying the necessary expenses of planning, coordinating, and
conducting such cooperative research.
(b) Beginning with the fiscal year ending September 30, 1979, the Funds,,
funds appropriated in each fiscal year under this section shall be appo*onmentdistributed as follows :
(1) Three per centum shall be available to the Secretary for
administration of this section.
(2) The remainder shall be allotted among the eligible institutions as follows :
(A) $100,000 to each eligible institution.
(B) Of the remaining funds, one-half in an amount which
bears the same ratio to the total amount t o be allotted as the
rural po ulation of the State in which the eligible institution
is locatex bean to the, total rural population of all the States
in which eligible institutions are located, as determined by
the last preceding decennial census; and one-half in an
amount which bears the same ratio to the total amount to be
allotted as the farm population of the State in which the
eligible institution is located bears to the total farm population of all the States in which eligible institutions are
located, as determined by the last preceding decennial census.
I n computing the distribution under this paragraph, the allotments to Tuskegee Institute and Alabama Agricultural and
Mechanical University shall be determined as if each institution
were in a separate State.

91 STAT. 1010
Comprehensive
agricultural
research
program,
submittal to
Secretary of
Agriculture.

PUBLIC LAW 95-113-SEPT.

29, 1977

(c) The director of the State agricultural experiment station in each
State where an eligible institution is located and the chief administrative officer specified in subsection ( d ) of this section in each of the
eligible institutions in such State shall jointly develop, by mutual
agreement, a comprehensive program of agricultural research in such
State, to be submitted for approval by the Secretary within one year
after the date of enactment of this title.
(d) Sums available for allotment to the eligible institutions under
the terms of this section shall be paid to such institutions in equal quarterly payments beginning on or about the first day of October of each
Chief
year upon vouchers approved by the Secretary. The President of each
administrative
eligible institution shall appoint a chief administrative officer who shall
officer,
be
responsible for administration of the program authorized herein,
appointment.
Each eligibIe institution shall designate a treasurer or other officer who
Treasurer,
shall receive and account for all funds allotted to such institution under
designation.
the provisions of this section and shall report, with the approval of the
Report to
Secretary of
chief administrative officer, to the Secretary on or before the first day
Agriculture.
of December of each year a detailed statement of the amount received
under the provisions of this section during the preceding fiscal year
Lost or
and its disbursement on schedules prescribed by the Secretary. If any
misapplied funds. portion of the allotted moneys received by any eligible institution shall
by any action or contingency be diminished, lost, or misapplied, it shall
be replaced by such institution and until so replaced no subsequent
appropriation shall be allotted or paid to such institution. Funds made
available to eligible institlltions shall not be used for payment of negotiated overhead or indirect cost rates.
U.S. mail service,
(e) Bulletins, reports, periodicals. reprints or articles, and other
use.
publications necessary for the dissemination of results of the researc.!~
and experiments funded under this section, including lists of pitblications available for distribution by the eligible institutions, shall be
transmitted in the mails of the United States under penalty indicia:
Provided, That each publication shall bear such indicia as are prescribed by the Postmaster General and shall be mailed under such regulations as the Postmaster General may from time to time prescribe.
Such publications may be mailed from the principal place of business
of each eligible institution or from an established subunit of such
institution.
Rules and
( f ) The Secretary shall be responsible for the proper administration
regulations.
of this section. and is authorized and directed to prescribe such rules
and replations as may be necessary to carry out its provisions. It shall
be the duty of the Secretary to furnish such advice and assistance as
will best promote the purpchses of this section, including participation
in coordination of research initiated under this section by the eligible
institutions, from time to time to indicate such lines of inquiry as to
the Secretarv seem most important, and t.o encourage and assist in
the establishment and maintenance of cooperation by and between
the several eligible institut,ions, t.he State agric~~ltural
experiment
stations. and between them and the Department of Apiculture.
( p ) ( I ) On or before the first day of October in each year after the
enactment of this title. the Secretarv shall ascertain whether each eligible institution is entitled to receive its share of the annual appropriations under this section and the amount which thereupon each is
entitled, respectively, to receive.
Unexpended
(2) Whenever it shall appear to the Secretary from the annual
funds.
statement of receipts and expenditures of funds by any eligible institution that any portion of the preceding annual appropriation allotted
to t.hat institution under t'hissection remalns unexpended, such amount

PUBLIC LAW 95-113-SEPT.

29, 1977

shall be deducted from the next succeeding
- annual allotment to the
institution.
(3) I f the Secretary withholds from any eligible institution any
portion of the appropriations available for allotment, the facts and
reasons therefor shall be reported to t,he President and the amount
involved shall be kept separate in the Treasury until the close of the
next Congress. If the next Congress does not direct such sum to be
vaid. it shall be carried to sur~lus.
(4) The Secretary shall Gake an annual report to Congress during
the first regular session of each year of the receipts and expenditures
and work of the eligible institutions under the provisions of this section and also whether any portion of the appropriation available for
allotment to any institution has been withheld and if so the reasons
therefor.
(h) Nothimz in this section shall be wnstrued to i m ~ a i or
r modifv
the' 16 a1 relatgnship existing between any of the eligible institutiois
and t%e government of the States in which they are respectively
located.
Subtitle H-Solar

91 STAT. 1011

Report to
President.

Report to
Congress.

Energy Research and Development

PART
1-EXISTINGPROGRAXS
ACRICuLrnL m m c H

SEC.1446. Section 1 of the Act of June 29, 1935 (49 Stat. 436, as
amended; 7 U.S.C. 427), is amended by(1) inserting after "electricity and other forms of power;" in
the third sentence the following: "research and development
relating to uses of solar energy with respect to farm buildings,
farm homes, and farm machinery (including equipment used to
dry and cure crops and provide irrigation) ;";and
(2) addin at the end thereof the following new sentence : "For ''Solar energy."
purposes of t%istitle, the tern 'solar energy' means energy derived
from sources (other than fossil fuels) and technologies included
in the Federal Non-Nuclear Energy Research and Development
42 USC 5901
Act of 1974, as amended.".
note.

AGRICULTURAL EXTENSION

SEC.1447. The Act of May 8,1914 (38 Stat. 372-374, as amended;
7 U.S.C. 341-349), is amended by(1) inserting after "subjects relating to agriculture" in section 1the following: ",uses of solar energy with respect to agri- 7 USC 341.
culture,";
(2) adding at the end of section 1 the following new sentence : "Solar energy."
"For the purposes of this Act, the term 'solar energy' means
energy derived from sources (other than fossil fuels) and technologies included in the Federal Non-Nuclear Energy Research
and Development Act of 1974, as amended." ;and
(3) inserting after "demonstrations in agriculture" in section
2 the following: ", uses of solar energy with respect to agri- 7 USC 342.
culture,".
RURAL D E v E L O P r n r n

SEC.1448. (a) Section 303 of the Consolidated Farm and Rural
Development Act (75 Stat. 307, as amended; 7 U.S.C. 1923) is amended
by inserting "(a) " immediately before the first sentence and by adding
the following new subsection :

9 1 STAT. 1012
Definitions.

42 USC 5901
note.

"Solar energy."

Solar energy
research.

7 USC 3241-

PUBLIC LAW 95-113-SEPT.

29, 1977

"(b) For purposes of this subtitle-

" (1) the term 'improving farms' includes, but is not limited to,
the acquisition and installation of any qualified non-fossil energy
system in any residential structure located on a family farm; and
"(2) the t,erm 'qualified non-fossil energy system' means any
system that utilizes technologies to generate fuel, energy, or
energy intensive products from products other than fossil fuels as
included in the Federal Non-Nuclear Energy Research and Development Act of 1974, as amended, which meets such standards as
may be prescribed by the Secretary, taking into consideration
appropriate and available standards prescribed by the Secretary
of Housing and Urban Development.".
(b) Section 312(a) of the Consolidated Farm and Rural Devebpment Act (75 Stat. 312, as amended; 7 U.S.C. 1942(a) ) is amended
by(1) inserting after "poultry, and farm equipment" in clause
(2) the following: "(including equipment which utilizes solar
energy) ";and
(2) adding at the end thereof a new sentence as follows : "For
the purposes of this subtitle, the term 'solar energy' means energy
derived from sources (other than fossil fuels) and technologies
included in the Federal Non-Nuclear Energy Research and Development Act of 1974, as amended.".

SEC.1449. The Secretary shall carry out a program of competitive
grants to persons and organizations, subject to the requirements and
conditions provided for in sections 2(e), 2 ( f ) , and 2(h) of the Act of
August 4, 1965 (79 Stat. 431 ; 7 U.S.C. 450i), as amended by section
1414 of this title, for carrying out research and development relating
to(1) uses of solar energy with respect to farm buildings, farm
homes, and farm machinery (including, but not limited to, equipment used to dry or cure farm crops or forest products, or to
provide irrigation) ;and
(2) uses of biomass derived from solar energy, including farm
and forest products, byproducts, and residues, as substitutes for
nonrenewable fuels and petrochemicals.

PART3-INFORMATIONSYSTEMAND

ADVISORY

COMMITTEE

SOLAR ENERGY RESEARCH INFORMATION SYS'IBM

Solar energy
SEC.1450. The Secretary shall, through the Cooperative State
research projects, Research Service and other agencies within the Department of Agri-

USC 3251.

culture which the Secretary considers appropriate, in consultation
with the Energy Research and Development Administration, other
appropriate United States Government agencies, the National Academy of Sciences, and private and nonprofit institutions involved in
solar energy research projects, by June 1,1978, and by June 1 in each
year thereafter, make a compilation of solar energy research projects
related to agriculture which are being carried out during such yewr by
Federal, State, private, and nonprofit institutions and, where a railable, the results of such projects. Such compilations may include, but
are not limited to, projects dealing with heating and cooling methods
for farm structures and dwellings (such as greenhouses, curing barns,
and livestock shelters), storage of power, operation of farm equipment

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 1013

(including irrigation pumps, crop dryers and curers, and electric
vehicles), and the development of new technologies to be used on farms
which are powered by other than fossil fuels or derivatives thereof.
ADVISORY COBfMITI'EE.

SEC.1451. I n order to assist.the Secretary in carrying out functions Esfablishmen~
assigned to the Secretary under part 4 of this subtitle. the Secretary
is authorized to establish an advisory committee within the Department of Agriculture or utilize an existing advisory committee, if a
suitable one exists, for si~chpurposes.

~ $ $ ~ ~ ~ ~

MODEL FARMS

SEC.1452. ( a ) I n order to promote the establishment and operation
of solar energy demonstration farms within each State, the Secretary
shall distribute funds to carry out the activities described in subsections (b) and (c) of this section and section 1453 of this title to one
or more of the following in each State: the State department of agriculture, the State cooperative extension service, the State agricultural
experiment station, forestry schools eligible to receive funds under the
Act of October 10, 1962 (76 Stat. 806-807, as amended; 16 1T.S.C.
582a, 582a-1-582a-7),
or colleges and universities eligible to receive
funds under t.he Act of August. 30: 1890 (26 Stat. 417-419, as amended;
7 U.S.C. 321-326 and 328), including Tuskegee Institute (hereinafter
in this part referred to as "eli 'ble institutions"), in accordance with
such rules and regulations as t e Secretary may prescribe.
(b) The recipient or recipients in such State shall(1) establish a t least one large model farm which(A) demonstrates all the solar energy projects determined
by the Secretary, in consultation with the recipient o r recipients, to be useful and beneficial to the State;
(B) is located in the State on land owned or operated by
that State and, if practicable, on the State agricultural experiment station farm land; and
(C) includes other farming practices, such as raising livestock and crops, in order to provide a model of a farm which
applies new and improved methods of agriculture through
the use of solar energy as a means of heating, cooling, drying, or curing crops, and providing other farm needs;
(2) sell the products of the model farm established under
paragraph (1) of this subsection and pay to the Secretary that
portion of the proceeds received through each such sale as bears
the same proportion t o the total proceeds as the grants under
this section bear to the total cost of operating the farm. The Secretary shall deposit such funds into a fund which shall be available without fiscal year limitation for use in carrying out the
provisions of this part ;
(3) provide tours of the model farm to farmers and other interested groups and individuals and, upon request, provide such
farmers, groups, and individuals with information concerning
the operation of such model farm and the demonstrations, if any,
established by it under section 1453 of this title;
(4) determine the costs of energg, the income, and the total
cost of the model farm; and

? USC 3261.

Sale of farm
produce.

Farm tours.

Cost
determination.

91 STAT. 1014
Report to
Secretary of
Agriculture.

PUBLIC LAW 95-113-SEPT.

29, 1977

(5) annually compile a report concerning energy usage, income
costs. o~eratinndifficult,ies. and farmer interest with respect
to the &del f l m - a n d the demonstrations, if any, established by
it under section 1453 of this title, and submit the report to the
Secretary along with any recommendations concerning project
changes and specific needs of such farm or demonstrations.
(c) The results obtained from each model farm established under
subsection (b) of this section which prove to be economic~allypract,ical
shall be extended to other farms in each State through the State
cooperative extension service as part of its ongoing energy management and conservation education programs.
DEMONSTRATION PROJECTS

Establishment.
7 USC 3262.

Agreements.

SEC.1453. (a) During each calendar year after the first two calendar
years for which eligible institutions in a State receive grants pursuant
to section 1452 of this title the recipient or recipients of such grants in
each State, in consultation with the Secret.ary, shall establish not less
than ten demonstrations of soIar energy projects which they shall
select from among the projects demonstrated on the model farm estabIished in the State pursuant to section 1452 of this title. Such demonstrations shall be carried out on farms which are already operating in
the State.
(b) The recipient or recipients in each State shall enter into written
agreements with persons who own farms and who are willing to carry
out solar energy project demonstrations under this section. Such agreements shall.include the following provisions concerning solar energy
projects whlch the owners agree to demon5trate on such farms:
(1) The owner shall carry out the projects on the farm for such
period as the Secretary determines to be necessary to fairly demonstrate them.
(2) Tools, cquiprnent, seeds, seedlings, fertilizer, equipment, and
other agricult,ural materials and technology which are necessary
to carry out the projects and which, on the date of such agreement, are not commonly being used on farms in such State, shall
be rovided by the recipient or recipients.
During the demonstration per~od,the recipient or recipients,
with the assistance of the Extension Service of the Department of
Agriculture, shall provide the owner with technical assistance
coiicerning such p r 4 ects.
(4) During the demonstration period and for such other periods
as the reci~ientor reci~ientsdeem necessarv. the owner shall( ~ ) l k e aemonthly
~
record for the fa& of changes, if any,
in energy usage and costs, the amount of agricultural commodities produced, the costs of producing such amount, and
the income derived from prodlicing such a~nount,and of such
other data concerning the projects as the recipient or recipients may require; and
(B) transmit to the recipient or recipients such monthly
records, along with a report containing his or her findings,
conclusions, and recon~mendationsconcerning the proje~ts.
(5) During the demonstration period, the owner shall g v e
tours of the farm to farmers and other interested groups and
individuals and provide them with a summary of the costs of
carrying out such projects.
( 6 ) A11 right, title, and interest to any agricultural commodity
produced on the farm as a result of the projects shall be in the
owner.

Records,
transmittal.

PUBLIC LAW 95-1 1 3-SEPT.

29, 1977

91 STAT. 1015

(7) At the end of the demonstration period, the owner shall have
all right, title, and interest to any materials and technology provided under paragraph (2) of thls subsection.
(8) Such other provisions as the Secretary may, by rule, require. Rules.
AUTHORIZATION FOR APPROPRIATIONS

SEC.1454. There are hereby authorized to be appropriated for dis- 7 USC 3263.
tribution to eligible institutions for use in establishing model farms
and solar energy project demonstrations under the provisions of this
part, $20,000,000 for the period beginning October 1,1977, and ending
September 30, 1981, and thereafter such sums as may subsequent to
the date of enactment of this title be authorized by law for any subsequent fiscal year.
PART
5-REGIONAL SOLAR
ENERGY
RESEARCH
AND DEVELOPMENT
CENTERS
SEC.1455. I n order to provide for agricultural research, develop- Establishment.
ment; and demonstration projects having a national or regional 7USC 3271application, the Secretary shall establish in existing Federal facilities
or in cooperation with State and local government agencies, including
State departments of agriculture, colleges and universities, or other
qualified persons and organizations, including local nonprofit research
groups, not less than three nor more than five regional solar energy
research, development, and demonstration centers in the United States
for the performance of agricultural research, extension work, and
demonstration projects relating to use of solar energy with respect to
farm buildings, farm homes, and farm machinery (including equipment used to dry and cure crops and provide irrigation), to be variously located so as to reflect the unique solar characteristics of different
latitudes and climatic regions within the United States. Funds used
in the operation of such regional centers niay be used for the rehabilitation of existing buildings or facilities to house such centers, but may
not be used for the construction or acquisition of new buildings.

AUTHORIZATION FOR APPROPRIATIONS

SEC.1456. There are hereby authorized to be appropriated such 7 USC 3281.
funds as are necessary to carry out the provisions of parts 2, 3, and
5 of this subtitle.
DEFINITIONS

SEC.1457. For purposes of this subtitle(1) the term "solar energy" means energy derived from sources
(other than fossil fuels) and technologies included in the Federal
- .
Energy Research and Development Act of 1974, as
Non-Nuclear
amended ;and
(2) the term "State" means any State of the United States, the
Commonwealth of Puerto Rico, Guam, the District of Columbia,
American Samoa, and the Virgin Islands of the United States.
Subtitle I-International

7 USC 3282.

Agricultural Research and Extension

SEC.1458. The Secretary, subject to such coordination with other 7 USC 3291.
Federal officials, departments, and agencies as the President may
direct, is authorized to-

91 STAT. 1016

PUBLIC LAW 95-113-SEPT.

29, 1977

(1) expand the operational coordination of the Department of
Agriculture with institutions and other persons throughout the
world performing agricultural research and extension activities
by exchanging research materials and results with such institutions or persons and by conducting with such institutions or
persons joint or coordinated research and extension on problems
of significance to agriculture in the United States;
(2) assist the Agency for International Development with a@culturd research and extension programs in developing countries ;
(3) work with developed countries on agricultural research and
extension, including the stationing of United States scientists a t
national and international institutions in such countries;
(4) assist United States colleges and universities in strengthening their capabilities for agricultural research and extension
relevant to agricultural development activities overseas ; and
(5) further develop within the Department of Agriculture
highly qualified experienced scientists who specialize in intern?tional programs, to be available for the activities described m
this section.
Subtitle J-Studies
EVALUATION O F THE EXTENSION SERVICE AND THE COOPERATIVE
EXTENSION SERVICES

Transmittal to
Congress.
7 USC 3301.

SEC.1459. The Secretary shall transmit to Congress, not later than
March 31, 1979, an evaluation of the economic and social consequences
of the programs of the Extension Service and the cooperative estension services, including those programs relating to. agricultu.ra1
production and distribution, home economics, nutrition education
(including the Expanded Family and Nutrit,ion Education Program),
community development, and 4-H youth programs.
WEATHER AND WATER ALLOC,ATION STUDY

Report to
President and
Congress.
3302.

SEC.1460. The Secretary shall conduct a comprehensive study of
t,he effects of changing climate and weather on crop and livestock
product,ivity and, within twelve months after the date of the enactment of this title, submit to the President and Congress a report
together with pert,inent recommendations, on this study. The study
shall include(1) an assessment of current climate and weather conditions
in the United States and the possible impact of changes in climate and weather conditions on the Nation's economy and l t u r e
food and feed availability and prices;
(2) a review of Federal and State water allocation policies;
and
(3) a consideration of strategies and techniques for dealing
with water shortages in the United States that could occur if
current climate and weather conditions continue or become more
severe.
ORGANIC FARMING STUDY

Report to
President and
Congress.
3303.

SEC.1461. The Secretary shall conduct, and, within twelve months
after the date of enactment of this title, submit to the President and
Congress a report containing the results of and the Secretary's recommendations concerning, an investigation and analysis of t,he practicability, desirabillty, and feasibilit,~of collecting organic waste

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 1017

materials, including manure, crop and food wastes, industrial organic
waste, municipal sewage sludge, logging and, wood-manufacturing
residues, and any other organic refuse, compostlng or similarly treating such materials, and transporting and placing such.inaterials onto
the land to improve soil tilth and fertility. The a?alysis shall include
the projected cost of such collect~on,transportatlon, and placement
in accordance with sound locally approved soil and water conservation
practices.
AGRICULTURAL RESEARCH FACILITIES STUDY

SEC.1462. (a) The Secretary shall conduct a comprehensive study Report to
of the status and future needs of agricultural research facilities and, President and
within fourteen months after the date of enactment of this title, submit to the President and Congress a report on this study.
(b) (1) The report shall cover agricultural research facilities and
materials including, but not limited to, buildings and farms, laboratories, plant, seed, genetic stock, insect, virus, and animal colle.ctions,
and lease and purchase items such as compute,rs, laboratory mstrument,s, and related equipment.
(2) The report shall include recommendations for a program to
provide the United States with the most modern and efficient system
of research facilities needed to advance agricultural research in all
fields, and recommendations with regard to priority requirements for
research instrumentation and facilities needing modernization, construction, or renovation in accordance with t,he requirements of State,
regional, and national priority programs of research and based on
the fullest utilization of human, monetary, and physical resources.

p;&Y..i04.

Subtitle K-Funding

and Miscellaneous Provisions

AUTHORIZATION FOR APPROPRIATIONS FOR EXISTING AND CERTAIN NEW
AGRICULTURAL RESEARCH PROGRAMS

SEC.1463. (a) Notwithstanding any authorization for appropria- 7 USC3311.
tions for agricultural research in any Act enacted prior to the date of
enactment of this title, there are hereby authorized to be appropriated
for the purposes of carrying out the provisions of this title, except subtitle H and sections 1416,1417,1419,1420, and the competitiveprants
program provided for in section 1414, and except that the authorization
for moneys provided under the Act, of March 2,1887 (24 Stat. 440-442,
as amended; 7 U.S.C. %la-361i), is excluded and is provided for m
subsection (b) of this section, $505,000,000 for the fiscal year ending
September 30, 1978, $575,000,000 for the fiscal year ending September 30,1979, $645,000,000 for the fiscal pear ending September 30,1980,
$715,000,000 for the fiscal year ending Se tember 30, 1981, and
$780,000.000 for the fiscal year ending septem%er 30.1982, and not in
excess of such sums as may after the date of enactment of this title be
authorized by law for any subsequent fiscal year.
(b) Notwithstanding any authorization for appropriations for agricultural research at State agricultural experiment stations in any Act
enacted prior t.o the date of enactment of this title, there are hereby
authorized t,o be appropriated for the purpose of conducting agricultural research at State agricultural experiment stations ursuant to the
Act of March 2,1881 (24 Stat. 440-442, as amended; U.S.C. 361%361i), $120,000,000 for the fiscal year ending September 30, 1918,
$145.000,000 for the fiscal vear ending September 30.1979, $170,000,000
for the fiscal year ending September 30,1980, $195,000,000 for the fiscal

91 STAT. 1018

PUBLIC LAW 95-113-SEPT.

29, 1977

year endkg September 30, 1981, and $220,000,000 for the fiscal year
ending September 30,1982, and not in excess of such sums as may after
the date of enactment of this title be authorized by law for any subsequent fiscal year.
AlJTHORIZATION

7 USC 3312.

FOR APPROPRIATIONS FOR EXTENSION EDUCATION

SEC.1464. Notwithstanding any authorization for appropriations for
the Cooperative Extension Service in an Act enacted prior to the date
of enactment of this title, there are here%j authorized to be appropriated for the purposes of carrying out the extension programs of the
Department of Agriculture $260,000,000 for the fiscal year ending September 30,1978, $280,000,000 for the fiscal year ending September 30,
1979, $300,000,000 for the fiscal year ending September 30, 1980,
$320,000,000 for the fiscal year ending September 30, 1981, and
$350,000,000 for the fiscal year ending September 30,1982, and not in
excess of such sums as may after the date of enactment of this title be
authorized by law for any subsequent fiscal year.
EXTENSION PROGRAMS FOR GUAM AND THE VIRGIN ISLANDS O F THE UNITED
STATES

Matching funds.

SEC.1465. Section 3 of the Act of May 8, 1914 (38 Stat. 373, as
amended ;7 U.S.C. 343), is amended by adding thereto a new subsection
(e) to read as follows :
"(e) Insofar as t.he provisions of subsectionsh(b) and (c) of this section, which require or permit Congress to require matching of Federal
funds, apply to the Virgin Islands of the United States and Guam, such
provisions shall be deemed to have been satisfied, for the fiscal years
ending September 30, 1978, and September 30, 1979, only, if the
amounts budgeted and available for expenditure by the Virgin Islands
of the United States and Guam in such years equal the amounts budgeted and available for expenditure by the Virgin Islands of the TTnited
States and Guam in the fiscal year ending September 30,1977.".
AMENDMENTS TO THE HATCH ACT

Repeal.

SEC.
1466. (a) Section 3 (c) (4) of the Act of March 2,1887 (24 Stat.
441, as amended ;7 U.S.C. 361c (c) (4) ) ,is hereby repealed.
(b) Section 3 (c) (5) of such Act (24 Stat. 441, as amended; 7 U.S.C.
3Blc(c) (5) ) is amended by adding a t the end thereof a new sentence to
read as follows :"These administrative funds may be used for transportation of scientists who are not officers or employees of theunited States
to research meetings convened for the purpose of assessing research
opportunities or research planning.".
PAYMENT O F FUNDS

7 USC 3313.

SEC.1467. Except as provided elsewhere in this Act or any other Act
of Congress, funds available for alloltrnent under this title shall be
paid to each eligible institution or State a t such time and in such
amounts as sha1I be determined by the Secretary.
WITHHOLDING O F FUNDS

Report to
President.
7 USC 3314.

SEC.1468. Except as provided elsewhere in t.his Act or any other
Act of Congress, if the Secretary determines that an institution or
State is not entitled to receive its allotment of an annual appropria-

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 1019

tion under any provision of this title because of a failure to satisfy
requirements of this title or regulations issued under it, the Secretary
shall withhold such amounts, the fmts and reasons concerning the
determination and withholding shall be reported to the President, and
the amount involved shall be deposited in the miscellaneous receipts
of the Treasury.
AUDITING, REPORTING, EOOHHEEPING, A N D ADMINISTRATIVE REQUIREMENTS

SEC.1469. Except as provided elsewhere in this Act or any other 7 USC 3315.
Act of Congress(1) assistance provided under this title shall be subject to the
provisions of sections 2(e), 2 ( f ) , and 2(h) of the Act of
dugust 4,1965 (79 Stat. 431 ; 7 U.S.C. 450i), as amended by section 1414 of this title ;
(2) the Secretary shall provide that each recipient of assistance
under this title shall submit an annual report, a t such times and
on such forms as the Secretary shall prescribe, stating the accomplishments of projects (on a project-by-project basis) for which
such assistance was used and accounting for the use of all such
assistance. If the Secretary determines that any portioq of funds Lost or
made available under this title has been lost or applied in a man- misapplied funds.
ner inconsistent with the provisions of this title or regulations
issued thereunder the recipient of such funds shall reimburse the
Federal Government for the funds lost or so applied, and the Secretary shall not make available to such recipient any additional
funds under this Act, until the recipient has so reimbursed the
Federal Government ;
(3) three per centum of the appropridions shall be retained
by the Secretary for the administration of the programs authorized under this title ;and
(4) the Secretary shall establish appropriate criteria for grant
and assistance approval and necessary regulations pertaining
thereto.
RULES AND REGULATIONS

SEC.1470. The Secretary is authorized to issue such rules and regu- 7
lations as the Secretary deems necessary to carry out the provisions
of this title.

usc 3316.

T I T L E XV-RURAL DEVELOPMENT AND
CONSERVATION
AGRICULTURAL CONSERVATION PROGRAM

SEC.1501. (a) Section 8 of the Soil Conservation and Domestic
Allotment Act (49 Stat. 1149, as amended; 16 U.S.C. 590h) is
amended by(1) striking out the first three sentences'of subsection (b) and Conservation and
inserting in lieu thereof the following : "The Secretary is author- environmental
ized t o carry out the policy and purposes specified in section 7 (a) assistance.
of this Act by providing financial assistance t o agricultural producers for carrying out enduring conservation and environmental
enhancement measures. Eligibility for financial assistance shall be
based upon the existence of a conservation or environmental prob-

PUBLIC LA'W 95-113-SEPT.

91 STAT. 1020

lem which reduces the productive capacity of the Nation's land
and water resources or causes degradation
of envirowmental
quality.
"The amount of financial assistance to be provided shall be that
portion of the cost of installin conservation and environmental
enhancement measures which t e Secretary determin?~is qecessary. I n determining the level of payment, considerat~onwlll be
given to (A) the amount of expected conservation or enyironmental benefit accruing to societ ,(B) the total cost of carrying out the
needed measures, (C) the egree to which appropriate conservation or pollution abatement practices will be applied in the absence
of financial wistance, and (D) in order to avoid duplication of
assistance, the degree to which the agricultural producer benefits
from other public programs for conservation and environmental
enhancement.
"The Secretary, in formulating the national program, shall take
into consideration (A) the need to control erosion and sedimentation from agricultural land and to conserve the water resources on
such land, (B) the need to control pollution from animal wastes,
(C) the need to facilitate sound resources management systems
through soil and water conservation, (D) the need to encourage
voluntary compliance by agricultural producers with Federal and
State requirements to solve point and nonpoint sources of pollution, (E) national priorities reflected in the National Environmental Policy Act of 1969 and other congressional and administrative
actions, (F) the degree to which the measures contribute to
the national objective of assuring a continuous supply of food
and fiber necessary for the maintenance of a strong and healthy
peo le and economy, and ((3) the type of conservation measures
neef;ed to improve water quality in rural America.";
(2) designating as a separate paragraph that portion of the
first paragraph of subsection (b) not amended by paragraph (1)
of this subsection; and
$3) striking out the first three paragraphs of s u b ~ t i o n(e)
an inserting in lieu thereof the following: "Payments made by
the Secretary under subsection (b) of this section to agricultural
producers shall be divided among landlords, tenants, and sharecroppers in proportion to the extent such landlords, tenants, and
sharecroppers contribute; to the cost of carrying out the conservation or environmental enhancement measures. The maximum payment- which may be made to any person shall be determined by
the Secretary.".
(b) Section 15 of the Soil Conservation and Domestic Allotment
Act (49 Stat. 1151, as amended; 16 U.S.C. 5900) is amended by(1) adding a t the end of the first sentence three new sentences
as follows: "The amount appropriated shall be available until
expended. A specified amount or percentage of the appropriation
shall be desimated for long-term agreements based on farm and
ranch conservvation plans aFproved buy local conservation districts,
where such districts are organized. The Secretary shall distribute
the funds available for financial assistance among the several
States in accordance with their conservation needs, as determined
by the Secretary."; and
(2) striking out the second paragraph.

42 USC 4321
note.

Funds,
apportionment.

Funds for longterm agreements.

29, 1977

PUBLIC LAW '95-1 13-SEPT.

29, 1977

91 STAT. 1021

INCLUSION OF AQUACULTURE AND HUJIAN NUl'RITION AMOXC THE
BASIC FUNCTIONS OF THE DEPARTMENT O F AGRICULTURE

SEC.1502. ( a ) Section 520 of the Revised Statutes, as amended (7
U.S.C. 2201), is amended by striking out "agriculture and rural
development" and inserting in lieu thereof "agriculture, rural development, aqua.culture, and human nutrition.".
(b) Subsection (a) of section 526 of the Revised Statut.es, as
amended (7 U.S.C. 2204 (a) ) , is amended by striking out "agriculture
and rural development" and inserting in lieu thereof "agriculture,
rural development, aquaculture, and human nutrition".
AQUACULTURE LOAN AUTHORITY

SEC. 1503. ( a ) Section 32(e) of title I11 of the Bankhead-Jones
Farm Tenant Act (50 Stat. 526, as amended; 7 U.S.C. 1011(e)) is
amended by(1) inserting immediately afqer "land utilization" the following: "or lans for the conservation, development, and utilization
of-water or aquacultural purposes"; and
(2) insertin immediately before t,he second sentence a new "Aquaculture."
sentence as foifows: "As used in this subsection, the term 'aquaculture' means the culture or husbandry of aquatic animals or
plants.".
(b) Section 310B(a) of subtitle A of the Consolidated Farm and
Rural Development Act (86 Stat. 663; 7 U.S.C. 1932(a) ) is amended
by(1) striking out the period at the end of the first sentence
and inserting in lieu thereof the following: ",and the wnservation, development, and utilization of water for aquaculture purposes?' ;and
(2) adding at the end t.hereof a new sentence as follows : "As "Aquaculture."
used in this subsection, the term 'aquaculture' means the culture
or husbandry of aquatic animals or plants by private industry
for commercial purposes including the culture and growing of
fish by private industry for the purpose of creating or au-wenting publicly owned and regulated stocks of fish?'.
-

DISPOSITION O F EXCESS FEDERAL PROPERTY M RURAL FIRE FORCES

SEC.1504. Section 402 of the Rural Development Act of 1972
(86 Stat. 670; 7 IT.S.C.2652) is amended by inserting "(a)" before the
first sentence and adding at the end thereof new subsections (b) and
(c) as follows:
"(b) The Secretary, with cooperatidn and assistance from the
Administrator of the General Services Administration, shall encourage
the use of excess personal property (within the meaning of the Federal Property and Administrative Services Act of 1949) by rural 40 USC 471 note
fire forces receiving assistance under this title.
" (c) To promote maxirnvm program ef9ectivenes-s and economy, the
Secretary shall closely coordinate the assiskame provided under this
title with assistance provided under other fire p r d c t i o n and rural
development programs administered by the Secr&a,ry.".
RURAL COMMUNITY FIRE PROTECTION PRQCRAM

SEC.1505. Section 404 of the Rural Development Act of 191-2
(86 Stat. 671, as amended; 7 U.S.C. 2654) is amended by adding at the
end thereof a new sentence as follows: "There is further authorized

~~~&~~

91 STAT. 1022

PUBLIC LAW 95-113-SEPT.

29, 1977

to be appropriated to carry out the provisions of this title not to
exceed $7,000,000 for each of the fiscal years ending September 30,1978,
September 30,1979, and September 30,1980.".
CONGRESSIONAL APPROVAL OF WATERSHED PROTECTION AND FLOOD
PREVENTION PROJECTS

SEC.1506. The Watershed Protection and Flood Prevention Act
(68 Stat. 666, as amended) is amended as follows:
(a) Section 2 (16 U.S.C. 1002) is amended by striking out
"$250,000" and inserting in lieu thereof "$1,000,000".
(b) Section 5 (3) (16 U.S.C. 1005(3) ) is amended by striking out
"$250,000" and inserting in lieu thereof u$l,OOO,OOO".
(c) Section 5(4) (16 U.S.C. 1005(4)) is amended by striking out
"$250,000" and inserting in lieu thereof "$l,000,000'7.
CONGRESSIONAL APPROVAL OF RESOURCE CONSERVATION AND
DEVELOPMENT PROJECT LOANS

SEC.1507. The third sentence of section 32(e) of title I11 of the
Bankhead-Jones Farm Tenant ,4ct. (50 Stat. 525, as amended; 7 U.S.C.
1011(e) ) is amended by striking out "$250,000" and inserting in lieu
thereof "$500,000".
WATERSHED LOAN AUTHORITY

SEC.1508. The last sentence of section 8 of the Watershed Protection
and Flood Prevention Act (70 Stat. 1090, as amended; 16 U.S.C.
1006a) is amended by striking out "five million dollars" and inserting
in lieu thereof "$10,000,000".
XDLTIYEAR SET-ASIDE

SEC.1509. Section 1005 of the Agricultural Act of 1970, as added
by the Agriculture and Consumer Protection Act of 1973 (87 Stat.
243; 16 U.S.C. 1505) is amended by1) striking out "1977" and inserting in lieu thereof L'1981";
2) striking out "1978" and inserting in lieu thereof 'L1982";
and
(3) amending the fourth sentence to read as follows: "Grazing
of livestock under this section shall be prohibited, except in areas
of a major disaster as determined by the President if the Secretary finds there is a need therefor, as a result of such disaster.".
AUTHORITY TO MAKE DEFERRED LOAN PAYMENTS

SEC.1510. The Consolidated Farm and Rural Development Act (75
Stat. 307, as amended) is amended as follows :
(a) Section 309 (7 U.S.C. 1929) is amended by adding in subsection ( f ) ( 3 ) between the words "any" and "defaulted" the words
"deferred or".
(b) Section 309A (7 U.S.C. 1929a) is amended by adding in subsection (g.) (3) between the words "any7' and "defaulted" the words
"deferred or".
CRITIC&

16 USC 59Oq-3.

LANDS RESOURCE CONSERVATION PROGRAM

SEC.1511. Notwithstanding any other provision of law(a) The Secretary of Agriculture is authorized to formulate and
carry out a program with owners and operators of land in the Great

PUBLIC LAW 95-113-SEPT.

29, 1977

91 STAT. 1023

Plains area as described in section 16(b) of the Soil Conservation
and Domestic Allotment Act (49 Stat. 1151, as amended; 16 U.S.C.
590p(b)) t o reduce runoff, soil and water erosion, and otherwise t o
promote the conservation of soil and water resources in such area
through the conversion of cropland from soil depleting uses to conserving uses ~ncludingthe production of soil conserv~ngcover crops.
( b ) To effectuate the purposes of the program, the Secretary may Agreement.
enter into an agreement for a two-year period with an owner or operator as described in subsection ( a ) whereby the owner or operator
shall agree to devote to a soil conserving cover crop a specifically
designated acreage of cropland on the farm up to 50 per centum of
the acreage which had been planted to any soil depleting crop or
crops in any of the two years preceding the date of the agreement.
The agreement shall be renewable for annual periods thereafter subject to t,he mutual agreement of the owner or operator and the Secretary. I n such agreement, the owner or operator shall agree. (1). t~
plant a legume, or if not adapted to such area, an annual, biennial,
or a perennial cover crop, as specified in the agreement; (2) t o dived
from production such portion of one or more crops designated by the
Secretary as the Secretary determines necessary t o effectuate the purpose of the program; ( 3 ) not to harvest any crop from or graze the
designated acreage during the agreement period, unless the Secretary determines that i t is necessary to permit grazing or harvesting
in order t o alleviate damage, hardship, or suffering caused by severe
drought, flood, or other natural disaster, and consents t o such grazlng
o r harvesting subject to an appropriate reduction in the rate of
payment; (4) t o give adequate assurance, as specified by the Secretary, that the land was not acquired for t.he purpose of placing i t in
the program: Provided, That the foregoing provision shall not prohibit the continuation of an agreement by a new owner if an agreement has once been entered into under this section nor prevent an
owner or operator from placing a farm in the program if the farm
was acquired by the owner to replace an eligible f a n n fro111which he
was displaced because of its acquisition by any Federal, State, or
other agency having the right of eminent domain; (5) t o forfeit all
rights to further payments under &heagreement and refund t o the
United States all payments received thereunder upon his violation of
the agreement a t any stage during the time he has control of the
land if the Secretary determines that such violation is of such a nature
as to warrant termination of the agreement, or to make refunds or
accept such payment adjustments as the Secretary may deem appropriate if the Secretary determines that the violation by the owner
or operator does not warrant termination of the agreement; (6)
upon transfer of his right and interest in the farm, during the agreement period, t o forfeit all rights to further payments under the agreement and refund to the United States all payments received
thereunder unless the transferee of any such land agrees with the
Secretary to assume all obligations of the agreement ; (7) not to adopt
any practice specified by the Secretary in the agreement as a practice
which would tend to defeat the purposes of the agreement; and (8)
to such additional provisions as the Secretary determines are desirable to effectuate the purposes of the program o r to facilitate the
practical administration of the program, including such measures as
the Secretary may deem appropriate to keep the designated acreage
from eroding and free from weeds and rodents in accordance with
good conservation systems.
(c) I n consideration for such agreement, the Secretary shall make Annual
annual adjustment payments t o the owner or operator for the period of adjustment
payments.

91 STAT. 1024

PUBLIC LAW 95-113-SEPT.

29, 1977

the agreement at such rate or rates not in excess of $30 per acre as the
Secretary determines to be fair and reasonable. The Secretary may use
a n advertising and bid procedure in determining the lands in any area
t o be covered by agreements and the payment rate therefor. The Secretary and the owner or operator may agrc.e that the annual adjustment
paynierlts for the agreement ~ e r i o dshall be made either up011 approval
of the agreement or in such installl~~ents
as they may agree t o be
desirable: P ~ ~ o u i d eThat
d,
for each year any annual adjustment payment is made in advance of performance, the annual adjustment
payment shall be reduced by 5 per centum.
Termination.
( d ) The Secret.ary may terminate any agreement under the program, by mutual agreement with the owner or operator, if the Secretary detern~inesthat such temnlination would be in the public ~nterest,
and may agree with the owner or operator to such modification of
agreements as the Secretary may determine t o be desirable to carry
out the purposes of the program or facilitate its administration.
Regulations.
(e) The Secretary may, to t.he extent the Secretary deems i t desirable, provide by appropriate regulations for preservat~onof crqpland,
crop acreage, and allotment history applicable to acreage dlverted
from t,he, production of crops to establish vegetative cover for the
purpose of any Federal program under which such history is used
as a basis for an allotnient or other 1imit.ation or for participation in
such program.
Federal and non( f ) I n carrying out the program, the Secretary shall utilize the
Federal officest
services of local, county, and State committees established under secutilization.
tion 8 of the Soil Conservation and 1)omestic Allotlnent Act (49 Stat.
1149, as amended; 16 U.S.C. 590h) and the technical services of the
Soil Conservation Service and soil and water conservation districts.
Program
( g ) I n case, any producer who is entitled to any payment under
payments.
the program dies, becomes incompetent, or disappears before receiving such payment, or is succeeded by another who renders or completes
the required performance, the pay~nentshall, without regard to any
other provisiorls of law, be made as the Secretary may determine to be
fair and reasonable.
( h ) The Secretary shall provide adequate safeguards to prot,ect the
Tenants and
sharecroppers.
interests of tenants and sharecroppers, including provision for sharing, on a fair and equitable basis, in payments under the program.
Regulations.
( i ) The Secretary shall prescribe such regulations as the Secretary
determines necessary to carry out the provisions of this section.
Appropriation
( j ) There are hereby authorized t o be appropriated for the period
authorization.
beginning Oc,tober 1, 199'7, ant1 ending September 30, 1981, such sums
as may be necessary to carry out, the program provided for in this secCommodity
tion. The Secretary is authorized to utilize the facilities, services, and
Credit
authorities of the Commodity Credit Corporation in discharging t,he
Corporation,
Secretary's functions and responsibilities under the program, includutilization.
ing payment of costs of administration : Provided, That the Commodity Credit Corporation shall not make any expenditures for such
purposes unless the Corporation has received funds to cover such
expenditures from appropriations made t o carry out this sec.tion.
T I T L E XVI-FEDERAL

GRAIN I N S P E C T I O N

RECORDS

Record
maintenance.

SEC.1601. Section 12( d ) of the United States Grain Standards Act
(90 Stat. 2882; 7 U.S.C. 87a(d)) is amended by striking out 'File Type application/pdf
Author Potomac Publishing
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Author	Potomac Publishing
File Modified	2006-07-18
File Created	2005-05-27