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LAw 897-80TH CONGRESS]
[CHAPTER 827-2D SESSION]

[PUBLIC

[H. R. 6248]
AN ACT
To authorize the Secretary of Agriculture to stabilize prices of agricultural com~
modities; to amend section 22 of the Agricultural Adjustment Act, reenacted
by the Agricultural Marketing Agreen:ent Act of 1937; and for other purposes.

Be it enacted by the Senate and House of Representatives of the
.United States of America in Congress assembled, That this Act may
be cited as the "Agricultural .Act of 1948".
TITLE I-1949 PRICE

STABILIZA~ION

SECTION 1. Notwithstanding any other provision of law, the Secre~
t.ary of Agriculture is authorized and directed through any instrumen~
tahty or agency within or under the direction of the Department of
Agnculture, by loans, purchases, or other operations-.
(a) To support prices received by producers of cotton, wheat, corn,
tobacco, rice, and peanuts marketed before June 30, 1950, if producers
have not disapproved marketing quotas for such commodity for the
marketin(J' year beginning in the calendar year in which the crop is
harvested. The pnce support authorized by this subsection shall be
made available as follows:
·
(1} To cooperators at the rate of 90 per centum of the parity
price for the commodity as of the beginning of the marketing year;
(2) To noncooperators at the rate of 60 per centum of the rate
specified in ( 1) above and only on so much of the commodity as
would be subject to penalty if marketed.
All provisions of law applicali1e with respect to loans under the Agri~
cultural Adjustment Act of 1938, as amended, shall, insofar as they are
consistent with the provisions of this subsection, be applicable with
respect to loans or other price-support operations authorized under this
subsection, except that for the purpose of computing tl1e parity price
for Maryland tobacco the base penod shall be the period August 1936
to July- 1941 in lieu of the perwd August 1919 to July 1929.
(b) To support until January 1, 1950, a price to producers of commodities with respect to which the Secretary of Agriculture by public
announcement pursuant to the provisions of the Act of July 1, 1941,
as amended, requested an expansion of production of not less than 60
per centum of the parity or comparable price therefor nor more than
the level at which such commodity was supported in 1948, except that
Irish potatoes harvested before January 1, 1949, milk and its products,
hogs, chickens, and eggs shall be supported at 90 per centum of the
parity or comparable price. The comparable price for any such commodity shall be determined and used by the Secretary for the purposes
of this subsection if the production or consumption of such commodity
has so changed in extent or character since the base period as to result




(PUB. L.LW897.)

2

in a price out of line with parity prices for the commodities referred
to in (a) hereof. In carryina out the provisions of this subsection
the Secretary of Agriculture shall have the authority to require compliance with production goals and marketing regulations as a condition
·
to eligibility of producers for price support.
(c) Sections 1 and 3 of the Act approved August 5, 1947 {Public
Law 360, Eightieth Congress), are amended by striking out in each
section the date "December 31, 1948" wherever it appears and inserting
in lieu thereof the date "June 30, 1950".
(d) It is hereby declared to be the policy of the Congress that the
lending and purchase operations of the Department of Agriculture
(other than those referred to in subsections {a) , (b) t and (c) hereof)
shall be carried out until January 1, 1950, so as to brmg the price and
income of the producers of other agricultural commodities not covered
by subsections {a), (b), and (c) to a fair parity relationship with the
commodities included under subsections (a), (b), and (c), to the extent
that funds for such operations are available after takmg into account·
the operations with respect to the commodities covered by subsections
(a), (b), and (c). In carrying out the provisionso:fthis subsection the
Secretary of Agriculture shall have the authorit;y ~o require compliance
with production goals and marketing regulatiOns as a condition to
eligibility cf producers for price support.
SEc. 2. From any funds available to the Department of Agriculture
or any agency operating under its direction for price support operations or for the disposal of agricultural commodities, the Secretary of
Agriculture is authorized and directed to use such sums as may be
necessary to carry out the provisions of section 1 of this Act.
SEc. 3. Section 22 of the kgricultural Adjustment Act, as added by
section 31 of the Act of August 24, 1935 {49 Stat. 773), reenacted by
section 1 of the Agricu~tural Marketing Agreement Act of 1937 (50
Stat. 246), as amended, is hereby amended to read as follows:
"SEC. 22. (a) Whenever the President has reason to believe that any
article or articles are being or are practically certain to be imported
into the United States under such conditions and in such quantities as
to render or tend to render ineffective, or materially interfere with,
any program or operation undertaken under this title or the Soil Conservation and Domestic Allotment Act, as amended, or section 32,
Public Law Numbered 320, Seventy-fourth Congress, approved
August 24, 1935, as amended, or any loan, purchase, or other program
or operation undertaken by the Department of Agriculture, or any
agency operating under its direction, with respect to any agricultural
commodity or product thereof, or to reduce substantially the amount
of any product processed in the United States from. any agricultural
commodity or product thereof with respect to which any such program
or operation is being undertaken, he shall cause an immediate investigation to be made by the United States Tariff Commission, which shall
give precedence to investigations under this section to determine such
facts. Such investigation shall be made after due notice and opportunity for hearing to interested parties, and shall be conducted subject
to such regulations as the President shall specify.
"(b) If, on the basis of such investigation and report to him of




3

[PUB. LAW897.[

findings and recommendations made in connection therewith, the
President finds the existence of such facts, he shall by proclamation
impose such fees not in excess of 50 per centum ad valorem or such
quantitative limitations on any article or articles which may be
entered, or withdrawn from warehouse, for consumption as he finds
and declares shown by such investigation to be necessary in order that
the entry of such article or articles will not render or tend to render
ineffective, or materially interfere with, any program or operation
referred to in subsection (a), of this section, or reduce substantially
the amount of any product processed in the United States from any
such agricultural commodity or product thereof with respect to which
any such prog-ram or operation is being undertaken : Provided, That
no proclamatiOn under this section shall impose any limitation on the
total quantity of any article or articles which may be entered, or withdrawn from warehouse, for consumption which reduces such permissible total quantity to proportionately less than 50 per centum of the
total quantity of such artiCle or articles which was entered, or withdrawn from warehouse, for consumption during a representative
period as determined by the President: And provided further, That in
designating any article or articles, the President may describe them
by physical qualities, value, use, or upon such other bases as he shall
determine.
"(c) The fees and limitations imposed by the President by proclamation under this section and any revocation, suspension, or modification
thereof, shall become effective on such date as shall be therein specified,
and such fees shall be treated for administrative purposes and for the
purposes of section 32 of Public Law Numbered 320, Seventy-fourth
Congress, approved August 24, 1935, as amended, as duties imposed
by the Tariff Act of 1930, but such fees shall not be considered as duties
for the purpose of granting any preferential concession under any
international obligatiOn of the United States.
" (d) After investigation, report, finding, and dechration in the
manner provided in the case of a proclamatiOn issued pursuant to subsection (b) of this section, any proclamation or provisiOn of such proclamation may be suspended or terminated by the President whenever
he finds and proclaims that the circumstances requiring the proclamation or provision thereof no longer exist or may be modified by the
President whenever he finds and proclaims that changed circumstances
re7,uire such modification to carry out the purposes of this section.
' (e) Any decision of the President as to facts under this section
shall be final.
" (f) No proclamation under this section shall be enforced in contravention of an:y treaty or other international agreement to which the
United States 1s or hereafter becomes a party."
SEc. 4. Section 8 (a), as amended, of the Soil Conservation nnd
Domestic Allotment Act is amended (a) by striking out "January 12
1949" wherever appearing therein and inserting in lieu thereof
"January 1, 1951", and (b) by striking out "December 31, 1948" and
inserting in lieu thereof "December 31, 1950".
Sec. 5. Notwithstanding any of the provisions of this Act, the Act
of July 28, 1945 (59 Stat. 506) shall continue in effect.
SEC. 6. This title shall take effect on January 1, 1949, except that
sections 3 and 4 shall take effect on the date of enactment of this Act.




4

[PUll. LA.W897.)

TITLE

II-AMENDMENTS TO THE AGRICULTURAL
ADJUSTMENT ACT OF 1938

DEFINITIONS OF "PARITY PRICE", "CARRY-OVEn", "NORl.'.fAL SUPPLY", AND
11TOTAL SUPPLY"

SEc. 201. Section 301 of the Agricultural Adjustment Act of 1938 is
amended( a) By striking out paragraphs (1) and (2) of subsection (a) and
inserting in lieu thereof the following:
"(1) (A) The 'parity price' for any agricultural commodity, as of
any date, shall be determined by multiplYing the adjusted base price
of such commodity as of such date by tlie parity index as of such date.
"(B) The 'adjusted base price' of any agricultural commodity, as
of any date, shall be (i) the average of the prices received by farmers
for such commodity, at such times as the Secretary may select during
each year of the ten-year period ending on the 31st of December last
before such date, or during each marketing season beginning in such
period if the Secretary determines use of a calendar year basis to be
impracticable, divided by (ii) the ratio of the general level of prices
received by farmers for agricultural commodities during such period
to the general level of prices received by farmers for agricultural
commodities during the period January 1910 to December 1914,
inclusive.
"(C) The 'parity index', as of any date, shall be the ratio of (i) the
general level of prices for articles and services that farmers buy,
mterest on farm mdebtedness secured by farm real estate, and taxes
on farm real estate, for the calendar. month ending last before such
date to (ii) the general level of such prices, rates, and taxes during
the period January 1910 to December 1914, inclusive.
"(D) The prices and indices provided for herein, and the data used
in computing them, shall be determined by the Secretary, whose·
determination shall be final.
"(E) Notwithstanding the provisions of subparagt"aph (A), the
transitional :r;>arity price for any agricultural commodity, computed
as provided m this subparagraph, shall be used as the parity price
for such commodity until such date after January 1, 1950, as such
transitional :parity price may be lower than the parity price, computed
as provided m subparagraph (A), for such commodity. The transitional parity price for any agricultural commodity as of any date
shall be"(i) its parity price determined in the manner used prior to
the effective date of the Agricultural Act of 1948, less
"(ii) five per centum o£ the parity price so determined multiplied oy the number of full calendar years which, as of such date,
_
have elapsed after January 1,1949.
"(F) Notwithstanding the provisions of subparagraphs (A) and
(E), if the :r;>arity price for any agricultural commodity, com.ruted
as provided m subparagraphs (A.) and (E) appears to be senously
out of line with the parity prices of other agricultural commodities,
the Secretary may, and upon the request of a substantial number of
interested producers shall, hold public hearings to determine the
proper relationship between the parity price of such commodity and
the parity prices of other agricultural commodities. Within sixty




5

[Pun. Lt.w897.)

dnys after commencin~ such hearing the Secretary shall complete such
hearing, proclaim his findings as to whether the facts require a revision.
of the method of computing the parity price of such commodity, and
put into effect any rmrision so found to be required.
"(2) 'Parity', as applied to income, shall be that gross income from
agriculture which will provide the farm operator and his family with
a standard of living equivalent to those afforded persons dependent
upon other gainful occupation. 'Parity' as applied to income from
any agricultural commodity for any year, shall be that gross income
which bears the same relationship to purity income from agriculture
for suoh year as the average gross income from such commodity for
the preceding ten calendar years bears to the average gross income
:£rom agriculture for such ten calendar years."
(b) By amending paragraph (3) (A) of subsection (b) to read
as follows:
"(A) 'Carry-over', in the case of corn, rice, and peanuts for any
marketing year shall be the quantity of the commodity on hand in the
United States at the beginning of such marketing year, not including
any quantity which was produced in the United States during the
calendar year then current."
(c) By amending paragraph (3) (B) of subsection (b) to read
as follows:
"(B) 'Carry-over' of cotton for any marketing year shall be the
quantity of cotton on hand within the United States at the beginning
of such marketing year, which was produced in the United States
prior to the beginning of the calendar year then current, plus the
quantity on hand within the United States at the beginning of such
marketmg year which was produced outside the United States."
(d) By stril{ing out paragraph ( 10) of subsection (b) and inserting
in lieu thereof the following:
"(10) (A) 'Normal supply' in the case of corn, cotton, rice,
wheat, and peanuts for any marketing year shall be ( i )·the estimated domestic consumption of the commodity for the marketing
year ending immediately prior to the marketing year for which
normal supply is being determined, plus (ii) the estimated exports
of the commodity for the marketino- year for which normal supply
is being determined, plus (iii) an ~lowance for carry-over. :The
allowance for carry-over shall be the following percentage of the
sum of the consumption and exports used in computing normal
supply: 7 per centum in the case of corn; 30 per centum in the case
of cotton; 10 per centum in the case of rice; 15 per centum in the
case of wheat; and 15 per centum in the case of peanuts. In
determining normal supply the Secretary shall make such adjustments for current trends m consumption and for unusual conditions as he may deem necessary.
"(B) 'Normal supply' in the case of tobacco shall be a normal
year's domestic consumption and exports~ plus 175 per centum of
a normal year's domestic consumption and 65 per centum of a
normal year's exports as an allowance for a normal carry-over."
(e) By amending paragraph (16) of subsection (b) to read as
follows:
" (A) 'Total supply' of cotton, wheat, corn, rice, and peanuts for any
marketing year shall be the carry-over of the commodity fot· such




I

[PUB.LAW897.]

6

marketing year, plus the estimated production of the commodity in the
United States during the calendar year in which such marketing year
begins and the estimated imports of the commodity into the United
States during such marketing year.
"(B) 'Total supply' of tobacco for any marketing year shall be the
raiTy·over at the be~inning of such marketing year plus the estimated
production thereof m the United States durmg the calendar year in
which such marketing year begiris, except that the estimated production of type-46 tobacco during the marketing year with respect
to which the determination is being made shall be used in lieu of the
estimated production of such type during the calendar year in which
such marketing year be~ins in determinmg the total supply of cigar
filler and cigar binder tooacco."
·
PRICE SUPI'ORT

SEc. 202. (a) Section 302 of the Agricultural Adjustment Act of
1938, as amended, is amended to read as follows:
"SEc. 302. (a) The Secretary, throu~h the Commodity Credit Corporation (except as provided in subsection (c)) and other means available to him, is authorized to support prices of agricultural commodities
to producers through loans, purchases, payments, and other operations.
Except as otherwise provided in this section, the amounts, terms, and
conditions of such price support operations, and the extent to which
such operations nre carried out, shall, in the case of operations carried
out by Commodity Credit Corporation, be determined by the Corporation with the approval and subject to the direction of the Secretary,
and, in the case of operntions carried out by other means, be determined
by the Secretary. In making such determinations, consideration shall
be given to (1) the supply of the commodity in relation to the demand
therefor, (2) the price levels at which other commodities are being
supported, ( 3) the availability of funds, (4) the perishability of
the commodity, (5) its importance to agricu1ture and the natwnal
economy, (6) the ability to dispose of stocks acquired through a price
support operation, (7) the need for offsetting temporary losses of
export markets, and (8) the ability and willingness of producers to
keep supplies in line with demand. Compliance by the producer with
acreage allotments, production goals, and marketin~ practices prescribed by the Secretary may be required as a conditiOn of eligibility
for price support. The Secretary shall in all cases give consideration
to the practiCability of supporting prices indirectly, as by the development of improved mercliandising methods, rather thnn directly by
purchase or loan.
"(b) (1) Price support shall be made avnilable to producers of any
basic agricultural commodity at levels determined as hereinafter provided in this subsection. On the basis of the latest available statistics
of the Department of A~riculture as of the beginning of each marketing year for each such basic agricultural commodity, the Secretary
shall, with respect to such marketing year and such basic agricultural
commodity.
" ( i) estimate the total supply;
" ( ii) determine the normal supply; and
"(iii) determine the percentage which the estimated total supply is of the normal supply (such percentage being referred to
herein as the 'supply percentage').




7

IPUB.LAW897.1

"(2) The level at which the price of such basic agricultural commodity for such marketing year shall be supported for cooperators
(other than cooperators outside the commercml corn-producing area,
in the case of corn) shall not exceed 90 per centum of the parity price
of such commodity as of the be.ginnin~ of the marketing year or be less
than the percentage of its parity price as of the beginning of such
marketing year determined from the following table:
The level of support shall
be not less than the following percentage of
the parity price :

If the supply percentage is:
Not 1nore than 70-----------------------------------------l\lore than 70 but not more than 72-------------------------More than 72 but not more than 74-------------------------1\Iore than 74 but not more than 76-------------------------More than 76 but not more than 78-------------------------l\Iore than 78 but not more than 80-------------------------1\lore than 80 but not more than 82-------------------------1\Iore than 82 but not more than 8-L------------------------1\Iore than 84 but not more than 86-------------------------l\lore than 86 but not more than 88-------------------------l\Iore than 88 but not more than 90-------------------------More than 90 but not more than 02-------------------------1\Iore than 92 but not more than !J4-------------------------More than 94 but not more than 0(L_________________________
More than 96 but not more than 08--------------------------

1\lore than 98 but not more tbnn 102 ____________ ._____________
l\Iore than 102 but not more than 104-----------------------l\lore than 104 but not more than 106-----------------------1\lore than 106 but not Inore than 108-----------------------1\lore than 108 but not more than 110-----------------------l\Iore than 110 but not morl.' than 112-----------------------!\lore than 112 but not more than 114-----------------------:\lore than
JUore than
l\Iore than
1\lore than
More than
More than
!\lore than
More thnn

114 but not more than 116------------------------

116 but not more than 118-----------------------118 but not more than 120-----------------------120 but not more than 122-----------------------122 but not more than 124-----------------------124 but not more than 126________________________
126 but not more than 128-----------------------128 but not morl.' than 130-----------------------~Iorethnn 130----------------------------------------------

00
89
88

87
86
85
84
83

82
81
80
79

78
77
76

75
74
73

72
71
70
69

68
67
66
G5

64

oa

62
61
60

" ( 3) Notwithstanding the foreA"oing provisions of this section".( A) ~he minimum leve~ of price support to cooperators for ~ny
basic agricultural coron.odity shall be 120 per centum of the mmimuni level determined from the foregoing table, if acreage allotments a:re in effect at the beginning of the planting season for
such commodity, or if marketing quotas are in effect at the beginning of the marketing year for such commodity; but in no case
shall the level of price ~upport for any commodity be increased
thereby above 90 per ce1:tum of its parity price as of the beginning
of the marketing- year; and
"(B) the level of prire support for any basic agricultural commodity normally marketed in any marketing year with respect to
which marketing quotas have been disapproved by producers shall
be 50 per centum of the parity price of such commodity as of the
beginning of such marketing year.
"(4) The level at which the price of corn shall be supported for
cooperators outside the commercial corn-producing area shnll be




[Pus. LAw 897.)

8

75 per centum of the level at which the price is supported for cooperators in the commercial corn-producing area with respect to corn.
"(5) Notwithstanding the foregoing provisions of this section, the
level of price support to cooperators for any crop of tobacco for which
marketing quotas are in effect shall be 90 per centum of its parity price
as of the beginning of the marketing year.
" (c) The support price for any nonbasic agricultural commodity
shall not exceed 90 per centum of the parity price for the commodity as
of the beginning of the marketing year or season in the case of a
commodity marketed on a marketing year or seasonal basis, and as of
January 1 in the case of any other commodity. Any price support
operation undertaken with respect to either turkeys or chickens shall
be applicable to all chickens, including broilers, appropriate adjustments being made as provided in subsection (e) of this section:
Pr07Jided, That if any price support operation is undertaken with
respect to either chicKens or turkeys, the same parity price support
operation shall be undertaken with respect to ducks and ducklings and
other poultry. The price of wool shall be supported at such level,
not in excess of 90 per centum nor less than 60 per centum of its
parity price as of January 1, as the Secretary may consider necessary
m order to encourage au annual production of approximately
360,000,000 pounds of shorn wool. The price of any kind of Irish
potatoes harvested after December 31, 1949, shall be supported at not
less than 60 per centum nor more than 90 per centum of the parity
price for Irish potatoes as of the beginning of its marketing season.
The Commodity Credit Corporation shall not carry out any operation
to support the price of any nonbasic agricultural commodity (other
than Irish potatoes) which is so perishable in nature as not to be
re.asonably storable without excessive loss or excessive cost; but any
such operation may be carried o~t by the Secretary through other
means available to him such as those provided by section 32, Public
Law Numbered 320, Seventy-fourth Congress, approved August 24,
1935, as amended: Pr£?vfded, That the ~oregoing. provisions .shall not
be construed to prolub1t the Commod1ty Credit CorporatiOn from
supporting the price of any perishable nonbasic agricultural commodity by a loan, purchase, payment, or other operation undertaken
with respect to a storable commodity processed from such perishable
nonbasic agricultural commodity: PrO'IJided further, That the Secretary, in carrying out programs with respect to perishable and nonperishable commodities under !"ection 32 of Pubhc Law Numbered 320,
Seventy-fourth Con~ress, ar.proved August 24, 1935, as amended, and ·
section 6 of the N atwnal School Lunch Act, may utilize the services
and facilities of the Commodity Credit Corporation (including but
not limited to procurement by contract) and make advance payments
to it: A11d provided further, That in any fiscal year, if at the end of
the preceding fiscal year the sums appropriated unde.r said section 32
and remaining unexpended do not exceed $300,000,000, Commodity
Credit Corporation may, as provided in section 302 (a) of this Act,
carry out any operation to support the price of any such perishable,
nonbasic agricultural commod1ty to the e.."'ttent that the reserve for the
postwar price support of agriculture established pursuant to the First
Supplemental Appropriation Rescission Act of 1946 (60 Stat. 8) and
other funds appropriated for agricultural price support are sufficient




9

(P'OB. LAW897.)

to cover any losses which may be incurred in connection with such
operation.
" (d) Notwithstanding the foregoing provisions of this section, price
support operations at levels in excess of the maximum level of price
support otherwise prescribed in this section may be undertaken whenever it is determined by the Secretary after reasonable public notice
and public heariHg with records of said hearing and a finding thereon
by said Secretary available to the public that price support at such
increased levels is necessary in order to increase or maintain the production of any agricultural commodity in the interest of national
security.
"(e) Appropriate adjustments may be made in the support price
for any commodity for differences in grade, type, staple, quality, location, and other factors. Such adjustments shall be made in such
manner that the average support price for such commodity in each
· marketing year wi1li on the basis of the anticipated incidence of such
factors, be equal to t 1e level determined as provided in this section for
such marketing year.
" (f) For the purposes of this section·
"(1) A 'cooperator' with respect to any basic agricultural commodity shall be a producer ofl who:;e farm the acreage planted to
the commodity does not exceed the farm acreage allotment for the
commodity under this title, or, in the case of price support for
corn to a producer outside the commercial corn-producing area,
a producer who COJl1plies with conditions of eligibility prescribed
by the Secretary. For the purposes of this subsection a producer
shall not be deemed to have exceedt>d his farm acreage allotment
unless such producer knowingly exceeded such allotment.
"(2) A 'basic agricultural commodity' shall mean any of the
commodities cotton, wheat, corn, tobacco, rice, and peanuts of
a crop harvested after December 31, 1949.
" ( 3) A 'nonbasic agricultural commodity' shall mean any
agricultural commodity other than a basic agricultural commodity.
"(g) No producer shall be personally liable for any deficiency arising from the sale of the collateral securing any loan made under
authority of this section unless sn!'h loan was obtained through fraudulent representations by the prou1eer. This provision shall not, however, be construed to prevent Commodity Credit Corporation or the
Secretary from requiring producers to assume liability for deficiencies
in the grade, quality, or quantity of commodities stored on the farm
or delivered by them, for failure properly to care for and preserve commodities, or for :failure or refusal to deliver commodities in accordance
with the requirements of the program.
"(h) The Commodity Credit Corporation shall not sell any farm
commodity owned or controlled by it at less than ( 1) a price determined
on a pricing basis for its stocks of such commodity on hand, which
makes due allowance for grade, type, quality, location, and other
factors and which is reasonably calculated to reimburse it for costs
incurred by it with respect to such stocks; (2) a price halfway between
the support price, if any, and the parity price of such commodity; or
(3) a price equivalent to 90 per centum of the parity price of such
commodity, whichever price is the lowest, except that the foregoing
restrictions shall not apply to (A) sales for new or byproduct uses;




(PUB. LAW 897.)

10

(B) sales of peanuts for the extraction of oil; (C) sales for seed or feed
if such sales will not substantially impair any price-support program;
tD) sales of commodities which have substantially deteriorated in
quality or of nonbasic perishable commodities where there is danger
of loss or waste through spoilage; (E) sales for the purpose of establishing claims against persons who have committed fraud, misrepresentation, or other wrongful acts with respect to the commodity; (F)
sales for export; (G) sales of wool; and (H) sales for other than
primary uses."
(b) Section 381 (c) of the Agricultural Adjustment Act of 1938
is repealed.
MARKETING QUOTAS
CORN

SEc. 203. (a) The first sentence of section 322 (a) of the Agricultural
Adjustment Act of 1938 is amended to read as follows:
""Whenever in any calendar year the Secretary determines"(!} that the total supply of corn for the marketing year beginning in such calendar year will exceed the normal supply for
such marketing year by more than 20 per centum; or
"(2) that the total supply of'corn for the marketing year ending in such calendar year is not less than the normal supply for
the marketing year so ending, and that the average farm price
for corn for three successive months of the marketing year so
ending does not exceed 66 per centum of parity
the Secretary shall, not later than November 15 of such calendar year,
proclaim such fact and marketing quotas shall be in effect in the
commercial corn producing area for the crop of corn grown in such
area in the next succeeding calendar year and shall remain in effect
until terminated in accordance with the provisions of this title."
(b) Sections 322 (b) and 322 (c) of the Agricultural Adjustment
Act of 1938 and the joint resolution entitled "Jpint resolution relating
to section 322 of the Agricultural Adjustment Act of 1938, as amended",
approved July 26, 1939 (53 Stat. 1125), are hereby repealed.
(c) Section 322 (d) of the Agricultural Adjustment Act of 1938
is amended ( 1) by striking out " (c)" and inserting in lieu thereof
"(a)", and (2) by striking out "September" and mserting in lieu
thereof "March".
WHEAT

SEC. 204. (a) Section 335 (a) of the Agricultural Adjustment Act
of 1938 is amended by striking out the first two sentences thereof and
inserting in lieu thereof the :following:
")Vhenever in any calendar year the Secretary determines"(!) that the total supply of wheat for the marketing year
beginning in such calendar year will exceed the normal supply
:for such marketing year by more than 20 per centum; or
"(2) that the total supply of wheat :for the marketing year
ending in such calendar year is not less than the normal supply
for the marketing year so ending, and that the average :farm price
for .wheat :for: three successive months of the marketing year so
endmg does not exceed 66 per centum of parity
the Secretary shall, not later than July 1 of such calendar year, proclaim such :fact and, during the marketmg year beginning July 1 of the




11

(PUB. LAW 897.J

next succeeding calendar year -and continuing throughout such marketing year, a national marketing quota shall be in effect with respect
to the marketing of wheat."
(b) The first sentence of section 336 of the Agricultural Adjustment
Act of 1938 is amended by striking out "June 10" and inserting in
lieu thereof "July 25".
COTTON

SEc. 205. The first sentence of section 345 of the Agricultural
Adjustment Act o:f 1938 is amended to read as :follows:
".Whenever during any calendar year the Secretary dete~mines"(1) that the total supply of cotton for the marketmg year
beginning in such calendar year will exceed the normal supply
for such marketing year by more than 8 per centum ; or
. "(2) that the total supply of cotton for the marketing year endmg m ·such calendar year 1s not less than the normal supply for
such marketing year, and that the average farm price for cotton
for three successive mont11s of such marketing year does not
exceed 66 per centum of panty
the Secretary shall, not later tha·n November 15 of such calendar year,
proclaim such fact and marketing quotas shall be in effect with res\>ect
to cotton during the marketing year beginning in the next succeec ing
calendar year."
RICE

SEc. 206. The first sentence of section 355 (a) of the Agricultural
Adjustment Act of 1938 is amended to read as follows:
"'Vhenever during any calendar year the Secretary determines-" ( 1) that the total supply of rice for the marketing year beginning in such calendar year will exceed the normal supply for such
marketing year by more than 20 per centum; or
"(2) tliat the total supply of rice for the marketing year ending in such calendar year is not less than. the normal supply for
such marketing year, and that the average farm price for rice for
three successive months of such marketmg year does not exceed
66 per centum of parity
the Secretary shall, not later than December 31 of such calendar year,
proclaim such fact and, during the marketing year beginning in the
next succeeding calendar year and continuing throughout such marketing year, a national marketing quota shall lie in effect with respect to
the marketinl! of rice by producers."
SEC. 207. The Agricultural Adjustment Act of 1938 is amended( a) By inserting in section 328 after the words "outside the commercial corn-producing area" the following: "or imported";
(b) By inserting in section 333 after "for such crop" the following:
"and imports";
(c) By inserting in section 343 (a) after "August 1 of such succeeding calendar year" the following: "and imports" j
(d) By striking out sections 359 (d) and 359 ~e) ;
(e) By striking out of section 385 "or loan" and inserting in lieu
thereof "loan, or price support operation".
TOBACCO

SEc. 208. Section 312 (a) of the Agricultural Adjustment Act of
1938 is amended by inserting before the period at the end of the first




(PUB, LAW 897.f

12

sentence a colon and the following: "Provided, That the Secretary
shall proclaim a national marketing quota for each marketing year
for each ldnd of tobacco for which a national marketing quota was
proclaimed for the immediately preceding marketing year, and shall
proclaim a national marketing quota for Virginia sun-cured tobacco
for each marketing year for which a quota is proclaimed for firecured tobacco, and, beginning on the first day of the marketing year
next following and continuing throughout such year, a national marketing quota shall be in effect for the tobacco marketed during such
market.ing year."

TITLE III-MISCELLANEOUS
SECTION 3 2 FUNDS

SEc. 301. Section 32, as amended, of the Act entitled "An Act to
amend the Agricultural Adjustment Act, and for other purposl'B",
approved August 24, 1!>35 (U. S. C., title 7, sec. 612c), is amended
by adding at the end thereof the following:· "The sums appropriated
under this section shall, notwithstanding the provisions of any other
law, continue to remain available for the purposes of this section
until expended; but any excess of the amount remaining unexpended
at the end of any fiscal year over $300,000~000 shall, in the same manner as though it had been appropriated for the service of such fiscal
year, be subject to the provisions of section 3690 of the Revised
Statutes (U.S. C., title 31, sec. '112), and section 5 of the Act entitled
'An Act making appropriations for the legislative, executive, and
judicial expenses of the Government for the year ending June thirtieth,
eighteen hundred and seventy-five, and for other purposes' (U. S. C.,
title 31, sec. 713) ."
"PARITY"-oTHER STATUTES

SEc. 302. (a) Section 2 (1) of the Agricultural Adjustment Act, ns
reenacted and amended by the Agricultural Marketing Agreement Act
of 1937, is amended to read as follows:
"{1) Throughthe exercise of the powers conferred upon the Secretary of Agriculture under this title, to establish and maintain such
orderly marketing conditions for agricultural commodities in interstate commerce as will establish, as the prices to farmers, parity prices
as defined by section 301 (a) {1) of the Agricultural Adjustment Act
of 1938."
(b) Section Sc (18) of the Agricultural Adjustment Act, us reenacted and amended by the Agriculturall\Iarketing Agreement Act of
1!>37, is amended to read as follows:
"(18) The Secretary of Agriculture, prior to prescribing any term
in any marketing agreement or order, or amendment thereto, relating
to milk or its products, if such term is to fix minimum prices to be paid
to producers or associations of producers, or prior to modifying the
price fixed in any such term, shall ascertain the parity prices of such
commodities. The prices which it is declared to be the policy of Congress to establish in section 2 of this title shall, for the purposes of such
agreement, order, or amendment, be adjusted to reflect the price of
feeds, the available supplies of feeds, and other economic conditions
which affect market supply and demand for milk or its products in the




13

(PUB. LAW897.)

marketing area to which the contemplated marketing agreement, order,
or amendment relates. Whenever the Secretary finds, upon the basis
of the evidence adduced at the hearing required by section Sb or Be, as
the case may be, that the parity prices of such commodities are not
reasonable in view of the price of feeds, the available supplies of feeds,
and other economic conditions which affect market supply and demand
for milk and its products in the marketing area to which the contemplated agreement, order, or amendment relates, he shall fix such prices
as he finds will reflect such factors, insure a sufficient quantity of pure
and wholesome milk, and be in the public interest. Thereafter, as
the Secretary finds necessary on account of changed circumstances, he
shall, after due notice and opportunity for hearing, make adjustments
in such_prices."
(c) Section 8c (17) of the Agricultural Adjustment Act, as reenacted and amended by the Agncultural Marketing Agreement Act
of 1937, is amended by strikin~ out "and section 8e".
(d) Section 8e of the A~rlCultural Adjustment Act, as reenacted
and amended by the Agricultural Marketing Agreement Act of 1937,
is repealed.
(e) Section 4 of the Agricultural Marketing Agreement Act of
1937, as amended, is amended by inserting after the section designation the subsection designation " (a)" and liy adding at the end thereof
a new subsection to read as follows:
"(b) Any program in effect under the Agricultural Adjustment Act,
as reenacted and amended by this Act, on the effective date of section
302 of the Agricultural Act of 1948 shall continue in effect without the
necessity for any amendatory action relative to such program, but
any such program shall be continued in operation by the Secretary
of A~iculture only to establish and maintain such orderly marketing
conditions as will tend to effectuate the declared purpose set out in
section 2 or 8c (18) of the Agricultural Adjustment Act, as reenacted
and amended by this Act."
(f) All references in other laws to(1) parity,
( 2) parity prices,
.
( 3) prices comparable to parity prices, or
( 4) prices to be determined in the same manner as provided by
the Agricultural Adjustment Act of 1938 prior to its amendment liy this Act for the determination of parity prices,
with respect to prices for agricultural commodities and products
thereof, Shall hereafter be deemed to refer to ~arity prices as determined in accordance with the provisions of sectwn 301 (a) (1) of the
Agricultural Adjustment Act of 1938, as amended by this Act.
EFFECTIVE DATE

Soo. 303. Titles II and III of this Act shall take effect on Jannary 1, 1950.
Approved July 3, 1948.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102