Page:United States Statutes at Large Volume 99 Part 2.djvu/297

 PUBLIC LAW 99-198—DEC. 23, 1985 I *1

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TITLE V—COTTON

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99 STAT. 1407

LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE LIMITATION PROGRAM, AND LAND DIVERSION FOR THE 1986 THROUGH 1990 CROPS OF UPLAND COTTON

SEC. 501. Effective only for the 1986 through 1990 crops of upland cotton, the Agricultural Act of 1949 is amended by inserting after section 103 (7 U.S.C. 1444) the following new section: "SEC. 103A. Notwithstanding any other provision of law: 7 USC 1444-1. "(a)(1) Except as provided in paragraph (2), the Secretary shall, on presentation of warehouse receipts reflecting accrued storage charges of not more than 60 days, make available for the 1986 through 1990 crops of upland cotton to producers nonrecourse loans for a term of 10 months from the first day of the month in which the loan is made at such level, per pound, as will reflect for Strict Low Middling one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States at a level that is not less than— "(A) in the case of the 1986 crop of upland cotton, 55 cents per pound; and "(B) in the case of each of the 1987 through 1990 crops of upland cotton, the smaller of— "(i) 85 percent of the average price (weighted by market and month) of such quality of cotton as quoted in the designated United States spot markets during 3 years of the 5-year period ending July 31 in the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period; or "(ii) 90 percent of the average, for the 15-week period beginning July 1 of the year in which the loan level is announced, of the 5 lowest-priced growths of the growths quoted for Middling one and three-thirty-seconds inch cotton C.I.F. northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year in which the loan is announced between such average northern European price quotation of such quality of cotton and the market quotations in the designated United States spot markets for Strict Low Middling one and one-sixteenth inch cotton (micronaire 3.5 through 4.9)). "(2)(A) The loan level for any crop determined under paragraph (I)(B) may not be reduced by more than 5 percent from the loan level determined for the preceding crop nor below 50 cents per pound. "(B) If for any crop the average northern European price determined under paragraph (l)(B)(ii) is less than the average United States spot market price determined under paragraph (IXBXi), the Secretary may increase the loan level to such level as the Secretary may deem appropriate, not in excess of the average United States spot market price determined under paragraph (IXBXi). "(3) The loan level for any crop of upland cotton shall be deter- Prohibition. mined and announced by the Secretary not later than November 1 of the calendar year preceding the marketing year for which such loan is to be effective, except that in the case of the 1986 crop, such determination and announcement shall be made as soon as prac-

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