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US Agricultural Adjustment Act of 1938 (7 USC ch 35): Marketing Quotas, Parity and Acreage Allotments

The Agricultural Adjustment Act of 1938 (7 U.S.C. ch. 35, sections 1281 to 1407) is a foundational United States farm program statute administered by the…

What US Agricultural Adjustment Act of 1938 (7 USC ch 35): Marketing Quotas, Parity and Acreage Allotments requires

The Agricultural Adjustment Act of 1938 (7 U.S.C. ch. 35, sections 1281 to 1407) is a foundational United States farm program statute administered by the Secretary of Agriculture, establishing marketing quotas, acreage allotments, parity payments, and penalties for basic agricultural commodities. Section 1282 declares the policy of the Act and section 1301 sets out definitions, including the parity concept used to measure a fair return to producers. Section 1303 authorizes parity payments designed to give producers a return as nearly equal to the parity price as available funds permit, and section 1304 provides consumer safeguards. The marketing quota machinery is organized by commodity: for wheat, section 1332 provides for a national marketing quota and section 1333 for a national acreage allotment; for cotton, section 1342 provides that the Secretary proclaims a national marketing quota when the total supply exceeds the normal supply, section 1344 apportions the national acreage allotment, and section 1345 fixes the farm marketing quota and defines the farm marketing excess. Section 1346 imposes penalties on the marketing of any commodity in excess of the farm marketing quota, and section 1308 limits the total amount of certain payments to a producer to 125,000 dollars for any crop year. The Act remains a core component of United States agricultural price and supply policy.

Pillar: Agriculture & Agritech · Authority: US Congress / Department of Agriculture (Farm Service Agency) · Version: 1.0.0 · Last updated:

Primary source: https://www.govinfo.gov/content/pkg/USCODE-2022-title7/html/USCODE-2022-title7-chap35.htm

SHA-256 integrity: ba49541bf3cbdcfab286ac545b40f13211b885f667aebb652969fce2a75a47f4

Primary Citations — 8 traced to source

  • Agricultural Adjustment Act of 1938, 7 U.S.C. 1282 - declaration of policy.
  • Agricultural Adjustment Act of 1938, 7 U.S.C. 1301 - definitions, including parity.

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