7 USC 1736f-1 - Establishment of commodity trust

U.S Code last checked for updates: Nov 22, 2024

§ 1736f–1.

Establishment of commodity trust

(a)

In general

(b)

Commodities or funds in trust

(1)

In general

The trust established under this section shall consist of—

(A)

wheat in the reserve established under the Food Security Wheat Reserve Act of 1980 as of April 4, 1996;

(B)

wheat, rice, corn, and sorghum (referred to in this section as “eligible commodities”) acquired in accordance with paragraph (2) to replenish eligible commodities released from the trust, including wheat to replenish wheat released from the reserve established under the Food Security Wheat Reserve Act of 1980 but not replenished as of April 4, 1996;

(C)

such rice, corn, and sorghum as the Secretary may, at such time and in such manner as the Secretary determines appropriate, acquire as a result of exchanging an equivalent value of wheat in the trust established under this section; and

(D)

funds made available—

(i)

under paragraph (2)(B);

(ii)

as a result of an exchange of any commodity held in the trust for an equivalent amount of funds from the market, if the Secretary determines that such a sale of the commodity on the market will not unduly disrupt domestic markets; or

(iii)

to maximize the value of the trust, in accordance with subsection (d)(3).

(2)

Replenishment of trust

(A)

In general

Subject to subsection (h), commodities of equivalent value to eligible commodities in the trust established under this section may be acquired—

(i)

through purchases—

(I)

from producers; or

(II)

in the market, if the Secretary determines that the purchases will not unduly disrupt the market; or

(ii)

by designation by the Secretary of stocks of eligible commodities of the Commodity Credit Corporation.

(B)

Funds

Any funds used to acquire eligible commodities through purchases from producers or in the market to replenish the trust shall be derived—

(i)

with respect to fiscal years 2000 through 2023 from funds made available to carry out the Food for Peace Act (7 U.S.C. 1691 et seq.) that are used to repay or reimburse the Commodity Credit Corporation for the release of eligible commodities under subsections (c)(1) and (f)(2), except that, of such funds, not more than $20,000,000 may be expended for this purpose in each of the fiscal years 2000 through 2023;

(ii)

from funds authorized for that use by an appropriations Act; or

(iii)

from funds accrued through the management of the trust under subsection (d).

(c)

Release of eligible commodities

(1)

Releases for emergency assistance

(A)

Definition of emergency

(i)

In general

In this paragraph, the term “emergency” means an urgent situation—

(I)

in which there is clear evidence that an event or series of events described in clause (ii) has occurred—

(aa)

that causes human suffering; and

(bb)

for which a government concerned has not chosen, or has not the means, to remedy; or

(II)

created by a demonstrably abnormal event or series of events that produces dislocation in the lives of residents of a country or region of a country on an exceptional scale.

(ii)

Event or series of events

An event or series of events referred to in clause (i) includes 1 or more of—

(I)

a sudden calamity, such as an earthquake, flood, locust infestation, or similar unforeseen disaster;

(II)

a human-made emergency resulting in—

(aa)

a significant influx of refugees;

(bb)

the internal displacement of populations; or

(cc)

the suffering of otherwise affected populations;

(III)

food scarcity conditions caused by slow-onset events, such as drought, crop failure, pest infestation, and disease, that result in an erosion of the ability of communities and vulnerable populations to meet food needs; and

(IV)

severe food access or availability conditions resulting from sudden economic shocks, market failure, or economic collapse, that result in an erosion of the ability of communities and vulnerable populations to meet food needs.

(B)

Releases

(i)

In general

Any funds or commodities held in the trust may be released to provide food, and cover any associated costs, under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.)—

(I)

to assist in averting an emergency, including during the period immediately preceding the emergency;

(II)

to respond to an emergency; or

(III)

for recovery and rehabilitation after an emergency.

(ii)

Procedure

(C)

Insufficiency of other funds

(D)

Waiver relating to minimum tonnage requirements

(2)

Processing of eligible commodities

(3)

Exchange

(4)

Use of normal commercial practices

(d)

Management of trust

(1)

In general

(2)

Eligible commodities

The Secretary shall provide—

(A)

for the management of eligible commodities in the trust established under this section as to location and quality of eligible commodities needed to meet emergency situations;

(B)

for the periodic rotation or replacement of stocks of eligible commodities in the trust to avoid spoilage and deterioration of the commodities; 1

 So in original. Probably should be followed by “and”.

(C)

subject to the need for release of commodities from the trust under subsection (c)(1), for the management of the trust to preserve the value of the trust through acquisitions under subsection (b)(2); and 2

 So in original. The “; and” probably should be a period.

(3)

Funds

(A)

Exchanges

(B)

Investment

(e)

Treatment of trust under other law

Eligible commodities in the trust established under this section shall not be—

(1)

considered a part of the total domestic supply (including carryover) for the purpose of subsection (c) or for the purpose of administering the Food for Peace Act (7 U.S.C. 1691 et seq.); and

(2)

subject to any quantitative limitation on exports that may be imposed under section 4606 3

 See References in Text note below.

of title 50.

(f)

Use of Commodity Credit Corporation

(1)

In general

(2)

Reimbursement of trust

(A)

In general

(B)

Basis for reimbursement

The reimbursement shall be made on the basis of the lesser of—

(i)

the actual costs incurred by the Commodity Credit Corporation with respect to the eligible commodity; or

(ii)

the export market price of the eligible commodity (as determined by the Secretary) as of the time the eligible commodity is released from the trust.

(C)

Source of funds

(g)

Finality of determination

(h)

Termination of authority

(1)

In general

(2)

Disposal of eligible commodities

(Pub. L. 96–494, title III, § 302, as added Pub. L. 104–127, title II, § 225(a), Apr. 4, 1996, 110 Stat. 959; amended Pub. L. 105–385, title II, § 212(a), (b)(3), Nov. 13, 1998, 112 Stat. 3465, 3467; Pub. L. 107–171, title III, § 3202, May 13, 2002, 116 Stat. 300; Pub. L. 110–246, title III, §§ 3001(b)(1)(A), (2)(E), 3201, June 18, 2008, 122 Stat. 1820, 1834; Pub. L. 113–79, title III, § 3202, Feb. 7, 2014, 128 Stat. 779; Pub. L. 115–334, title III, § 3303, Dec. 20, 2018, 132 Stat. 4619; Pub. L. 118–22, div. B, title I, § 102(d)(2), Nov. 17, 2023, 137 Stat. 116.)

cite as: 7 USC 1736f-1