§ 1427 — Commodity Credit Corporation Sales Price Restrictions

(a) The Commodity Credit Corporation may sell any farm commodity owned or controlled by the Corporation at any price not prohibited by this section. (b) In determining sales policies for basic agricultural commodities or storable nonbasic commodities, the Corporation should consider the establishment of such policies with respect to prices, terms, and conditions as the Corporation determines will not discourage or deter manufacturers, processors, and dealers from acquiring and carrying normal inventories of the commodity of the current crop. (1) Except as otherwise provided in this section, the Corporation shall not sell any basic agricultural commodity or storable nonbasic commodity at less than 115 percent of the lower of— (A) the current national average price support loan rate for the commodity adjusted for the current market differentials reflecting grade, quality, location, reasonable carrying charges, and other factors determined appropriate by the Corporation; or (B) the loan repayment level. (2) The Corporation may sell extra long staple cotton for unrestricted use at such price as the Corporation determines is appropriate to maintain and expand export and domestic markets. (3) The Corporation shall not sell oilseeds at less than the lower of— (A) 105 percent of the current national average price support loan rate for the oilseed, adjusted for the current market differentials reflecting grade, quality, location, reasonable carrying charges, and other factors determined appropriate by the Corporation; or (B) 115 percent of the loan repayment level. (4) Whenever the producer reserve program for wheat and feed grains established under section 1445e of this title is in effect, the Corporation may not sell any of its stocks of wheat or feed grains at a level that is less than 150 percent of the then current loan rate for wheat or feed grains. (5) The Commodity Credit Corporation shall sell upland cotton for unrestricted use at the same price the Corporation sells upland cotton for export, but in no event at less than the amount provided for in paragraph (1). (d) The foregoing restrictions of this section shall not apply to— (1) sales for new or byproduct uses; (2) sales of peanuts and oilseeds for the extraction of oil; (3) sales for seed or feed if the sales will not substantially impair any price support program; (4) sales of commodities that have substantially deteriorated in quality or as to which there is a danger of loss or waste through deterioration or spoilage; (5) sales for the purpose of establishing claims arising out of contract or against persons who have committed fraud, misrepresentation, or other wrongful acts with respect to the commodity; (6) sales for export (excluding sales of upland cotton for export); (7) sales of wool; and (8) sales for other than primary uses. (1) Notwithstanding the foregoing provisions of this section, the Corporation, on such terms and conditions as the Secretary may consider in the public interest, may— (A) make available any farm commodity or product thereof owned or controlled by the Corporation for use in relieving distress— (i) in any area in the United States (including the Virgin Islands) declared by the President to be an acute distress area because of unemployment or other economic cause, if the President finds that the use will not displace or interfere with normal marketing of agricultural commodities; and (ii) in connection with any major disaster determined by the President to warrant assistance by the Federal Government under the Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); and (B) donate or sell commodities in accordance with subchapter V. (2) Except on a reimbursable basis, the Corporation shall not bear any costs in connection with making the commodity available under this subsection beyond the cost of the commodities to the Corporation in— (A) the storage of the commodity; and (B) the handling and transportation costs in making delivery of the commodity to designated agencies at one or more central locations in each State or other area. (1) Subject to paragraph (2), the foregoing restrictions of this section shall not apply to sales of commodities the disposition of which is desirable in the interest of the effective and efficient conduct of the operations of the Corporation because of the small quantities involved, or because of age, location or questionable continued storability of the commodity. (2) The sales shall be offset (if necessary) by the purchases of commodities as the Corporation determines is appropriate to prevent the sales from substantially impairing any price support program or unduly affecting market prices, except that the purchase price shall not exceed the Corporation’s minimum sales price for the commodities for unrestricted use. (3) Subject to the sales price restrictions contained in this section, the Corporation may sell any basic agricultural commodity or storable nonbasic commodity on a competitive bid basis, if the sale is determined to be appropriate by the Secretary. (g) For the purposes of this section, sales for export shall include— (1) sales made on condition that the identical commodities sold be exported; and (2) sales made on condition that commodities of the same kind and of comparable value or quantity be exported, either in raw or processed form.