4 GENERAL FARM PROGRAM 



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

 after investigation, the Secretar.v finds such action necessary to (a) make available 

 free of marketing restrictions a normal supply of corn, (b) meet a national emer- 

 gency, or ((■) meet an increase in export demand for corn. In addition, if the 

 September crop estimate of the Department shows that the total supply of corn 

 as of the begiiming of the next marketing year will not exceed the normal suppl}' 

 for such marketing year by more than 10 percent, the Secretary is required to 

 proclaim that fact by September 20 and thereupon quotas shall not become 

 effective. If, in any marketing year, marketing quotas are not in effect for the 

 crop produced in the calendar year in which such marketing year begins, market- 

 ing quotas applicable to previous crops shall be terminated (sees. 371 (a), (b), 

 322 (e), and 326 (c)). 



B. Proclaination of supplies 



The Secretary is required, not later than September 1, to ascertain and proclaim 

 the total supply, the normal supply, and reserve supply level * of corn for the 

 marketing vear beginning in the calendar year in which such proclamation is 

 made (sec. 327). 



C National acreage allotment 



1. When proclaimed. — If marketing quotas are proclaimed, the Secretary is 

 required to proclaim a national acreage allotment for corn. Such allotment may 

 also be proclaimed even though the supply situation is such as not to require a 

 proclamation of quotas. In either event, the national acreage allotment for any 

 calendar vear must be proclaimed not later than February 1 of such calendar year 

 (sec. 328)'. 



2. Amount. — The national acreage allotment is required to be that acreage in 

 the commercial corn-producing area which, on the basis of the average yield of 

 corn in such area for the 10 preceding calendar years, adjusted for abnormal 

 weather and trends in yield, will produce an amount of corn which, when added 

 to that produced in the United States outside the commercial corn-producing area 

 or imported, will make available a supply for the marketing j'ear beginning in the 

 calendar vear in which the crop is produced equal to the reserve-supplv level 

 (sec. 328)1! 



3. Apportionment to counties and farms. — The Secretary is required to appor- 

 tion (a) the national acreage allotment among the counties in the commercial 

 corn-producing area on the basis of acreage seeded for production during the 10 

 preceding calendar years, with adjustments for abnormal weather, for trends in 

 acreage, and for the promotion of soil-conservation practices, and {}>) the county 

 acreage allotment to farms on the basis of tillable acreage, crop-rotation practices, 

 type of soil, and topography (sec. 329). 



D. Farm marketing quotas 



1. Amount. — The farm marketing quota for a crop of corn is the actual pro- 

 duction of the acreage planted to corn on the farm less the farm marketing excess. 

 The farm marketing excess is the normal production or the actual production, 

 whichever is smaller, of the acreage planted to corn on the farm in excess of the 

 farm acreage allotment (sec. 323 (a) as modified by Public Law 74. 77th Cong.). 



2. Marketing-quota penalty. — During any marketing year for which marketing 

 quotas are in effect, the producer is subject to a penalty on the farm marketing 

 excess ec|ual to 50 percent of the basic loan rate on the commodity applicable to 

 cooperators.8 The penalty may be postponed or avoided by storing the farm 

 marketing excess in accordance with regulations issued by the Secretary or by 

 delivering such excess to the Secretary for his disposal. Until the farm marketing 

 excess is stored, delivered to the Secretary, or the penalty paid, (a) the entire 

 crop of corn is subject to a lien in favor of the United States for the payment of 

 the penalty, and (6) each bushel of corn marketed by the producer to any person 

 within the United States is subject to a penalty at the above rate ])ayable by the 

 buyer who may deduct such penalty from the purchase price. The commodity 

 is regarded as marketed even though it is used on the farm. If the corn is stored, 

 the penalty must be paid by the producer at the time and to the extent of any 

 depletion of the stored commodity except depletion resulting from causes beyond 

 the producer's control (sec. 325 as modified by Public Law 74, 77th Cong.). 



8 "XcsTve s ipDiy level" means a normal year's domestic consumption and exijorls (based on the average 

 eonsuniplioii and exports during the precedinc: 10 marketing years, adjusted for current trends) plus 10 

 per:'ent of s'leh eon=;iirnntinn and export^;. 



» A "coonerator" is a producer who has not Icnowingly planted on the farm an acreage of the commodity 

 in excess of the farm acreage allotment. 



