GENERAL FARM PROGRAM 7 



3. Release from storage without payment of penalty. — If the, acreage planted to 

 wheat on the farm is less than the farm acreage allotment, the amount of wheat 

 from any previous crop required to be stored in order to avoid or postpone pay- 

 ment of the penalty is required to be reduced by an amount equal to the normal 

 production of the number of acres by which the acreage allotment exceeds the 

 planted acreage. The stored amount is also required to be reduced to the extent 

 that the actual production on the farm is less than the normal production of the 

 farm acreage allotment (Public Law 74, 77th Cong., and sec. 326 (b) as modified 

 by Public Law 74, 77th Cong.). 



4. Exempt farms. — A wheat marketing quota is not applicable to any farm on 

 which the normal production of the acreage planted to wheat is less than 200 

 bushels or on which the acreage planted to wheat does not exceed 15 acres (sec. 

 335 (d) as modified by Public Law 74, 77th Cong.). 



5. " Nonallotment" farms. — The marketing penalty is not applicable to wheat 

 produced on any farm classified as a "nonallotment" farm under the then current 

 agricultural conservation program if the acreage harvested thereon is not in 

 excess of 15 acres or the acreage allotment for the farm, whichever is larger. If 

 the acreage harvested on such farm is in excess of 15 acres and in excess of the 

 farm acreage allotment the normal production or the actual production, which- 

 ever is smaller, of the acreage harvested in excess of 15 acres or the farm acreage 

 allotment, whichever is larger, shall be deemed to be the farm marketing excess 

 and subject to penalty. However, if no wheat is sold from such farm, no penalty 

 shall apply to the wheat harvested thereon if the acreage harvested does not exceed 

 such acreage per family living on the farm as may be used for home consumption 

 without reduction of the payment for the farm under the then current agricultural 

 conservation program (Public Law 74, 77th Cong.). 



V. COTTON 



A. Proclamation of marketing quotas 



1. When proclaimed. — The Secretary is recjuired to proclaim a national market- 

 ing quota for cotton '^ whenever in any calendar year he determines (a) that the 

 total supply 15 for the marketing year beginning in such calendar year will exceed 

 the normal supply '^ for such marketing year by more than 8 percent, or (b) that 

 the total supply for the marketing year ending in such calendar year is not less than 

 the normal supply and the average price for cotton for three consecutive months in 

 such marketing year does not exceed 66 percent of the parity price. The procla- 

 mation of marketing quotas for any marketing year may be made at any time 

 between January 1 and November 15 of the calendar year preceding the calendar 

 year in which such marketing year begins (sec. 345) . 



2. Referendum. — Between the issuance of the proclamation of marketing quotas 

 and December 15 following, the Secretary is required to condvict a referendum to 

 determine whether farmers who produced the previous crop of cotton favor or 

 oppose quotas. If more than one-third of the farmers voting in the referendum 

 oppose such quotas, the Secretary is required, before the end of that calendar 

 year, to proclaim the results of the referendum and thereupon the quotas become 

 ineffective (sec. 347). 



3. Termination or increase in quotas. — Quotas may be increased or terminated if, 

 after investigation, the Secretary finds such action necessary to (a) make available 

 free of marketing restrictions a normal supply of cotton, (5) meet a national emerg- 

 ency, or (c) meet an increase in export demand for cotton (sec. 371 (a), (b)). 



B. Proclamation of supplies 



The Secretary is required not later than November 15 each year to find and 

 proclaim (o) the total supply, the normal supply, and the carry-over '" of cotton 

 as of August 1 of that year, (b) the probable domestic consumption and exports of 

 American cotton during the marketing 3'ear beginning August 1 of such calendar 

 year, and ^c) the estimated carry-over of cotton ,as of August 1 of tlie next calendar 

 year 'se • ?<i-2). 



'• The quota provisions of the Act do not apply to cotton the staple of which is m inches or more in length 

 (sec. .350). 



'5 "Total supply" means the carry-over on Ausu.«t 1 plus the estimated production for the current calendar 

 year plus the estimated imports for the marketing year beginning in the current calendar year. 



16 "Normal supply" means the estimated domestic consumption in the preceding markelin;; year plus the 

 estimated exports for the marketing year for which the determination is made plus TO percent of such con- 

 sumption and exports as a carry-over allowance. 



" "Carry-over" means the quantity of cotton on hand in the United States on August 1 which was pro- 

 duced in the United States prior to the current calendar year plus the quantity of cotton on hand in the 

 United States on August 1 which was produced outside the United States. 



