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TABLE OF CONTENTS Continued

TITLE XV-RURAL DEVELOPMENT AND CONSERVATION-Continued

Sec. 1503. Aquaculture loan authority.

Sec. 1504. Disposition of excess Federal property to rural fire forces.

Sec. 1505. Rural community fire protection program.

Sec. 1506. Congressional approval of watershed protection and flood prevention

projects.

Sec. 1507. Congressional approval of resource conservation and development project loans.

Sec. 1508. Watershed loan authority.

Sec. 1509. Multiyear set-aside.

Sec. 1510. Authority to make deferred loan payments.

Sec. 1511. Critical lands resource conservation program.

TITLE XVI-FEDERAL GRAIN INSPECTION

Sec. 1601. Records.

Sec. 1602. Supervision fees.

Sec. 1603. Establishment of temporary advisory committee.

Sec. 1604. Technical amendments.

Sec. 1605. Studies of grain inspection and weighing; effective date.

Sec. 1006. Miscellaneous amendments.

Sec. 1607. Conforming amendments.

Sec. 1608. Retention of designations following convictions.

TITLE XVII-WHEAT AND WHEAT FOODS RESEARCH AND
NUTRITION EDUCATION ACT

Sec. 1701. Short title.

Sec. 1702. Findings and declaration of policy.

Sec. 1703. Definitions.

Sec. 1704. Issuance of orders.

Sec. 1705. Permissive terms in orders.

Sec. 1706. Required terms in orders.

Sec. 1707. Exemption.

Sec. 1708. Requirement of referendum.

Sec. 1709. Refund.

Sec. 1710. Petition and review.

Sec. 1711. Enforcement.

Sec. 1712. Suspension and termination of orders.

Sec. 1713. Investigations: power to subpena and take oaths and affirmations:

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Sec. 1803. Establishment of advisory committees.

Sec. 1804. Additional duties of the Secretary.

Sec. 1805. Membership on advisory committees.

Sec. 1806. Advisory committee charter requirements-operating costs.
Sec. 1807. Annual report.

Sec. 1808. Budget prohibitions.

Sec. 1809. Termination of advisory committees.

TITLE XIX-EFFECTIVE DATE

Ses. 1901. Effective date.

TITLE I-PAYMENT LIMITATION FOR WHEAT, FEED
GRAINS, UPLAND COTTON, AND RICE

PAYMENT LIMITATION

SEC. 101. Notwithstanding any other provision of law

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

7 USC 1308.

7 USC 1421 note. 7 USC 1281.

"Payments."

"Person."

Rules and regulations.

Post, p. 919.

7 USC 2266.

Annual report to
Congress.
Contents.

(A) one or more of the annual programs established under the Agricultural Act of 1949, as amended, and the Agricultural Adjustment Act of 1938, as amended, for wheat, feed grains, and 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 more of the annual programs established under such Acts for wheat, feed grains, upland cotton, and rice shall not exceed $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) If the Secretary determines that the total amount of payments which will be earned by any person under the program in effect for any crop will be reduced under this section, the set-aside acreage for the farm or farms on which such person will be sharing in payments earned under such program shall be reduced to such extent and in such manner as the Secretary determines will be fair and reasonable in relation to the amount of the payment reduction.

(4) The Secretary shall issue regulations defining the term "person" and prescribing such rules as the Secretary determines necessary to assure a fair and reasonable application of such limitation: Provided, That the provisions of this section which limit payments to any person shall not be applicable to lands owned by States, political subdivisions, or agencies thereof, so long as such lands are farmed primarily in the direct furtherance of a public function, as determined by the Secretary. The rules for determining whether corporations and their stockholders may be considered as separate persons shall be in accordance with the regulations issued by the Secretary on December 18, 1970, under section 101 of the Agricultural Act of 1970.

FAMILY FARMS

SEC. 102. (a) Congress hereby specifically reaffirms the historical policy of the United States to foster and encourage the family farm system of agriculture in this country. Congress firmly believes that the maintenance of the family farm system of agriculture is essential to the social well-being of the Nation and the competitive production of adequate supplies of food and fiber. Congress further believes that any significant expansion of nonfamily 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 it is the policy and the express intent of Congress that no such program be administered in a manner that will place the family farm operation at an unfair economic disadvantage.

(b) In order that Congress may be better informed regarding the status of the family farm system of agriculture in the United States, the Secretary of Agriculture shall submit to Congress, not later than July 1 of each year, a written report containing current information on trends in family farm operations and comprehensive 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 existing agricultural and agriculture-related programs

are being administered to enhance and strengthen the family farm system of agriculture in the United States, (2) an assessment of how Federal laws may encourage the growth of non family farm operations, and (3) such other information as the Secretary deems appropriate or determines would aid Congress in protecting, preserving, and strengthening the family farm system of agriculture in the United States.

STUDY ON PROHIBITING PAYMENTS TO CERTAIN LEGAL ENTITIES

Report to

Congress.

7 USC 2266 note.

Sec. 103. In furtherance of the policy stated in section 102 of this Act, the Secretary of Agriculture shall conduct a study and report to Congress no later than January 1, 1979, on the impact on participation in the wheat, feed grain, cotton, and rice programs and the production of such commodities in carrying out a statutory provision such as that included in the Food and Agriculture Act of 1977, as passed by the Senate on May 24, 1977, prohibiting the making of payments to certain corporations and other entities under such programs. The study shall. in addition, assess the impact of extending the prohibition against making commodity program payments to tenants on land owned by such corporations and other entities which would be excluded from payments under such a provision. The study shall utilize, to the greatest extent possible, the information on commodity program payments compiled by the Agricultural Stabilization and Conservation Service in determining payment eligibility under section 101 of the Agricultural Act of 1970, as amended, and section 101 of this Act. The Secre- Infra. tary may collect such other information as may be necessary to determine the impact of such a statutory provision and to identify the number and characteristics of producers that would be affected by such a provision.

CONFORMING AMENDMENT

SEC. 104. Section 101 (1) of the Agricultural Act of 1970, as amended. is amended to read as follows:

"(1) The total amount of payments which a person shall be entitled to receive under one or more of the annual programs established by titles IV, V, and VI of this Act for the 1974 through 1976 crops of the commodities and by titles IV and V of the Food and Agriculture Act of 1977 and titles IV, V, and VI of this Act for the 1977 crop of the commodities shall not exceed $20,000.”.

TITLE II-DAIRY AND BEEKEEPER PROGRAMS

DAIRY BASE PLANS

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SEC. 201. Section 201 (e) of the Agricultural Act of 1970, as amended. 7 USC 608c note. is amended to read as follows:

"(e) The provisions of this section shall not be effective after

December 31, 1981, except with respect to orders providing for class I base plans issued prior to such date, but in no event shall any order so issued extend or be effective beyond December 31, 1984.".

PRODUCER HANDLERS

SEC. 202. The legal status of producer handlers of milk under the 7 USC 608c note. provisions of the Agricultural Adjustment Act, as reenacted and

amended by the Agricultural Marketing Agreement Act of 1937, as

amended, shall be the same subsequent to the adoption of the amend 7 USC 601 note. ment made by the Food and Agriculture Act of 1977 as it was prior thereto.

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MILK PRICE SUPPORT

SEC. 203. Section 201 of the Agricultural Act of 1949, as amended, is amended by

(1) striking out the second sentence in subsection (c) and inserting in lieu thereof a new sentence as follows: "Notwithstanding the foregoing, effective for the period beginning on the effective date of the Food and Agriculture Act of 1977 and ending March 31, 1979, the price of milk shall be supported at not less than 80 per centum of the parity price therefor."; and

(2) adding at 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 March 31, 1981, the support price of milk shall be adjusted by the Secretary at 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 which it is applicable.".

TRANSFER OF DAIRY PRODUCTS TO THE MILITARY AND VETERANS HOSPITALS

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

DAIRY INDEMNITY PROGRAM

SEC. 205. The Act of August 13, 1968 (82 Stat. 750, as amended; 7 U.S.C. 450 j, k, and 1), is amended by

(1) inserting after the first sentence a new sentence as follows: "The Secretary is also authorized to make ir:demnity payments for milk, or cows producing such milk, at 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 or toxic substances not included under the first sentence of this section if such chemicals or toxic substances were not used in a manner contrary to applicable regulations or labeling instructions provided 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 OF QUALITY FOR ICE CREAM

SEC. 206. Section 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 regulation adopt a standard of quality for ice cream which shall provide that ice cream shall contain at least 1.6 pounds of

total solids to the gallon, weigh not less than 4.5 pounds to the gallon and contain not less than 20 percent total milk solids, constituted of not less than 10 percent milk fat. In no case shall the content of milk solids not fat be less than 6 percent. Whey shall not, by weight, be more than 25 percent of the milk solids not fat. Only those products which meet the standard issued by the Secretary may bear a symbol thereon indicating that they meet the Department of Agriculture standard for 'ice cream".".

BEEKEEPER INDEMNITY PROGRAM

SEC. 207. Section 804(f) of the Agricultural Act of 1970, as amended, 7 USC 135b note. is amended by striking out "December 31, 1977" and inserting in lieu thereof “September 30, 1981”.

TITLE III-WOOL AND MOHAIR

DECLARATION OF POLICY

SEC. 301. Section 702 of the National Wool Act of 1954, as amended, 7 USC 1781. is amended to read as follows:

"SEC. 702. 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 domestic needs; and that the desired domestic production of wool is impaired by predatory animals and by the depressing effects of wide fluctuations in the price of wool in the world markets. It is hereby declared to be the policy of Congress, as a measure of national security and to promote the general economic welfare, a positive balance of trade, and the efficient use of the Nation's resources, to encourage the continued domestic production of wool at prices fair to both producers and consumers in a manner which will assure a viable domestic wool industry in the future.".

EXTENSION OF ACT; SUPPORT PRICE

SEC. 302. Section 703 of the National Wool 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 "1977" in subsection (b) and inserting in lieu thereof "1976";

(3) inserting immediately before the period at the end of subsection (b) a new proviso as follows: ": Provided further, That 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 to 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 "1976".

TITLE IV-WHEAT

LOAN RATES AND TARGET PRICES FOR THE 1977 THROUGH 1981 CROPS

SEC. 401. Effective only for the 1977 through 1981 crops of wheat, the Agricultural Act of 1949, as amended, is amended to add subsections (a) through (c) to new section 107A as follows:

"SEC. 107A. Notwithstanding any other provision of law

7 USC 1445b.

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