Page:United States Statutes at Large Volume 110 Part 1.djvu/948

 110 STAT. 924 PUBLIC LAW 104-127—APR. 4, 1996 (i) IN GENERAL.Except as provided in clause (ii), in the case of the 1996 and subsequent crops, Valencia peanuts not physically produced in the State of New Mexico shall not be eligible to participate in the pools of the State. (ii) EXCEPTION.— ^A producer of Valencia peanuts may enter Valencia peanuts that are produced in Texas into the pools of New Mexico in a quantity not greater than the average annual quantity of the peanuts that the producer entered into the New Mexico pools for the 1990 through 1995 crops. (C) TYPES OF PEANUTS. —Bright hull and dark hull Valencia peanuts shall be considered as separate types for the purpose of establishing the pools. (D) NET GAINS.— Net gains on peanuts in each pool, unless otherwise approved by the Secretary, shall be distributed only to producers who placed peanuts in the pool and shall be distributed in proportion to the value of the peanuts placed in the pool by each producer. Net gains for peanuts in each pool shall consist of the following: (i) QUOTA PEANUTS.— For quota peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool. (ii) ADDITIONAL PEANUTS. —For additional peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool for additional peanuts. (d) LOSSES. —Losses in quota area pools shall be covered using the following sources in the following order of priority: (1) TRANSFERS FROM ADDITIONAL LOAN POOLS.— The proceeds due any producer from any pool shall be reduced by the amount of any loss that is incurred with respect to peanuts transferred from an additional loan pool to a quota loan pool by the producer under section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)). (2) PRODUCERS IN SAME POOL. —Further losses in an area quota pool shall be offset by reducing the gain of any producer in the pool by the amount of pool gains attributed to the same producer from the sale of additional peanuts for domestic and edible export use. (3) OFFSET WITHIN AREA. — Further losses in an area quota pool shall be offset by any gains or profits from additional peanuts (other than separate type pools established under subsection (c)(2)(A) for Valencia peanuts produced in New Mexico) owned or controlled by the Commodity Credit Corporation in that area and sold for domestic edible use, in accordance with regulations issued by the Secretary. This paragraph shall not apply to profits or gains from a farm with 1 acre or less of peanut production. (4) FIRST USE OF MARKETING ASSESSMENTS.— The Secretary shall use funds collected under subsection (g) (except funds attributable to handlers) to offset further losses in area quota pools. The Secretary shall transfer to the Treasury those funds collected under subsection (g) and available for use under this paragraph that the Secretary determines are not required to cover losses in area quota pools.

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