---
kind: "section"
citation: "7 U.S.C. § 3703"
title: "7"
title_heading: "Agriculture"
number: "3703"
heading: "State and regional plans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/3703"
units:
  - "Chapter 68 — Agricultural Subterminal Facilities"
---

# §3703. State and regional plans

- (a) **Grants; requisite provisions of plans—**
  - (1) The [Secretary](/usc/7/3702.md?p=3) shall, beginning not more than one hundred and eighty days after October 1, 1980, make financial assistance available to any [State](/usc/7/198.md?p=5) that makes application therefor, and that otherwise meets the requirements of this section, for the purpose of assisting such [State](/usc/7/198.md?p=5) in the development of a [subterminal facilities](/usc/7/3702.md?p=4) plan (hereinafter in this chapter referred to as the “[State](/usc/7/198.md?p=5) plan”) for such [State](/usc/7/198.md?p=5). Assistance under this section shall be made available in the form of a grant. No grant may be made to any [State](/usc/7/198.md?p=5) unless the Governor of such [State](/usc/7/198.md?p=5) or the appropriate agency of such [State](/usc/7/198.md?p=5) makes an application therefor as provided in this section. To the maximum extent practicable, the personnel and resources of the colleges or universities in the [State](/usc/7/198.md?p=5) which are eligible to receive funds under the Act of July 2, 1862 ([7 U.S.C. 301–305](https://uscode.house.gov/view.xhtml?req=(/us/usc/t7/s301–305)), 307, and 308), or the Act of August 30, 1890 ([7 U.S.C. 321–326](https://uscode.house.gov/view.xhtml?req=(/us/usc/t7/s321–326)) and 328), including Tuskegee Institute, shall be utilized in developing the [subterminal facilities](/usc/7/3702.md?p=4) plan for that [State](/usc/7/198.md?p=5) pursuant to this section.
  - (2) The [Secretary](/usc/7/3702.md?p=3) may also make grants under this section available to two or more [States](/usc/7/198.md?p=5) acting together to develop a coordinated regional [subterminal facilities](/usc/7/3702.md?p=4) plan (hereinafter in this chapter referred to as the “regional plan”) for such [region](/usc/7/3702.md?p=5).
  - (3) Grants made under this section to any [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) may not exceed 80 per centum of the cost of preparing the [State](/usc/7/198.md?p=5) or regional plan.
  - (4) The [State](/usc/7/198.md?p=5) or regional plan shall prescribe in detail the actions such [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) proposes to take in order to (A) facilitate the efficient and competitive movement of [bulk agricultural commodities](/usc/7/3702.md?p=1) from the points of production within such [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) to major [market](/usc/7/198.md?p=1) or export points, (B) provide adequate storage facilities for such commodities between points of production and [market](/usc/7/198.md?p=1), (C) provide adequate receiving, storage, and loading facilities for any [bulk agricultural commodity](/usc/7/3702.md?p=1), and (D) assure that such facilities will be located at sites that will result in maximum benefits to local producers.
  - (5) Each [State](/usc/7/198.md?p=5) or regional plan shall include the following:
    - (A) an analysis of the marketing, shipping, storage, and production of [bulk agricultural commodities](/usc/7/3702.md?p=1) produced in that [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) and the short- and long-range projections with respect to the marketing, shipping, storage, and production of such commodities in that [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5);
    - (B) a determination, on the basis of the analysis and projections required under clause (A) of this paragraph, of the needs of the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) for [subterminal facilities](/usc/7/3702.md?p=4);
    - (C) an assessment of the use of existing on-farm storage facilities located within the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) and an assessment of the ways in which [subterminal facilities](/usc/7/3702.md?p=4) can benefit the continued use of on-farm storage facilities;
    - (D) an evaluation of the effect of the development of new [subterminal facilities](/usc/7/3702.md?p=4) on small capacity rural shipping and storage facilities within the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5);
    - (E) an evaluation of ways to ensure adequate rail service for [subterminal facilities](/usc/7/3702.md?p=4) described in clause (D) of this paragraph, including an evaluation of the use and feasibility of contract rates;
    - (F) an assessment of the ways that [subterminal facilities](/usc/7/3702.md?p=4) can enhance the operation of small capacity shipping and storage facilities within the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5);
    - (G) an assessment of other actions being taken or considered in such [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) for the improvement of agricultural transportation, including an evaluation of the use being made of shuttle or collector trains and combinations of rail and barge service;
    - (H) an evaluation of the potential benefits of subterminal ownership and leasing arrangements for rail rolling stock (including locomotive power), motor trucks, barge equipment, and other [bulk agricultural commodity](/usc/7/3702.md?p=1) transport equipment that may help achieve maximum benefits from the operation of [subterminal facilities](/usc/7/3702.md?p=4) within the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5);
    - (I) an assessment of the overall transportation system in the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) and future plans for that overall system, including the adequacy of highways and bridges; and
    - (J) consideration of the feasibility and advisability of the ownership and operation of rail branch lines by farmer-owned cooperatives, and the role that such cooperatives might play in any overall planning for the restructuring and rehabilitation of rail service and marketing facilities within the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5).
- (b) **Plan review commissions—** Funds made available to a [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) under this chapter for the purposes of assisting such [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) to develop a plan shall be subject to the condition that the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) establish a plan review commission composed of local producers, local elevator operators, representatives of affected motor and rail carriers, other interested individuals, and, when appropriate in the judgment of the [Secretary](/usc/7/3702.md?p=3), consumers of [bulk agricultural commodities](/usc/7/3702.md?p=1) used in the production of unproc­essed agricultural products. A majority of the members of any plan review commission must be local producers or, when appropriate in the judgment of the [Secretary](/usc/7/3702.md?p=3), consumers of [bulk agricultural commodities](/usc/7/3702.md?p=1) used in the production of unproc­essed agricultural products. The plan review commission shall consider the information and analyses developed by the [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) in the development of a [State](/usc/7/198.md?p=5) or regional plan and make appropriate recommendations regarding the [State](/usc/7/198.md?p=5) or regional plan. The plan review commission shall also make recommendations, based on information developed in the plan, for the most beneficial location of [subterminal facilities](/usc/7/3702.md?p=4).
- (c) **Recommendations of need—** No application for planning assistance authorized pursuant to this section may be submitted by a [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) until the appropriate plan review commission established in accordance with this chapter has had the opportunity to make recommendations to the Governor or Governors that a need exists for the development of a [State](/usc/7/198.md?p=5) or regional plan, and a majority of the members of such plan review commission concur that such application should be submitted.
- (d) **Prerequisites for receipt of grant—** No [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) may receive a grant under this section unless—
  - (1) an application therefor has been submitted that complies with the provisions of this chapter;
  - (2) the average annual production of [bulk agricultural commodities](/usc/7/3702.md?p=1) produced within such [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5), or shipments of such commodities transported into such [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5), meets minimum levels established by the [Secretary](/usc/7/3702.md?p=3) for a period the [Secretary](/usc/7/3702.md?p=3) considers appropriate preceding the year in which application for such grant is made;
  - (3) the Governor of such [State](/usc/7/198.md?p=5) or the Governors of the [States](/usc/7/198.md?p=5) in such [region](/usc/7/3702.md?p=5) certify to the [Secretary](/usc/7/3702.md?p=3) that producers of agricultural commodities have experienced serious storage and transportation problems within such [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) during the three years preceding the year in which application for such grant is made; and
  - (4) such [State](/usc/7/198.md?p=5) or each [State](/usc/7/198.md?p=5) within such [region](/usc/7/3702.md?p=5) has established an adequate plan, as described in [section 22102 of title 49](/usc/49/22102.md), for rail service in such [State](/usc/7/198.md?p=5) or [States](/usc/7/198.md?p=5), or such [State](/usc/7/198.md?p=5) or each [State](/usc/7/198.md?p=5) in such [region](/usc/7/3702.md?p=5) is actively developing such a plan.
- (e) **Approved State plans; approved regional plans—** Whenever any [State](/usc/7/198.md?p=5) or [region](/usc/7/3702.md?p=5) has submitted a [State](/usc/7/198.md?p=5) or regional plan under this section, the [Secretary](/usc/7/3702.md?p=3) shall approve such plan only if it has been approved by a majority of the members of the appropriate plan review commission established pursuant to this chapter, and it meets the other conditions specified in this chapter and those prescribed in regulations issued by the [Secretary](/usc/7/3702.md?p=3) to carry out this chapter. When a plan is approved by the [Secretary](/usc/7/3702.md?p=3), such plan shall be known as an “approved [State](/usc/7/198.md?p=5) plan” or an “approved regional plan”, as appropriate.
- (f) **Authorization of appropriations—** To carry out the purposes of this section, there are authorized to be appropriated not to exceed $3,300,000 for each of the fiscal years ending September 30, 1981, September 30, 1982, and September 30, 1983.

## Source credit

(Pub. L. 96–358, § 4, Sept. 25, 1980, 94 Stat. 1185.)

## Notes

### Editorial Notes

### References in Text

Act of July 2, 1862 (7 U.S.C. 301–305, 307, and 308), referred to in subsec. (a)(1), is act July 2, 1862, ch. 130, 12 Stat. 503, popularly known as the “Morrill Act” and also as the “First Morrill Act”, which is classified generally to subchapter I (§ 301 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see Short Title note set out under 301 of this title and Tables.

Act of August 30, 1890 (7 U.S.C. 321–326 and 328), referred to in subsec. (a)(1), is act Aug. 30, 1890, ch. 841, 26 Stat. 417, popularly known as the Agricultural College Act of 1890 and also as the Second Morrill Act, which is classified generally to subchapter II (§ 321 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 321 of this title and Tables.

### Codification

In subsec. (d)(4), “section 22102 of title 49” substituted for “section 5(j) of the Department of Transportation Act (49 U.S.C. 1654(j))” on authority of Pub. L. 103–272, § 6(b), July 5, 1994, 108 Stat. 1378, the first section of which enacted subtitles II, III, and V to X of Title 49, Transportation. Previously, section 5 of the Department of Transportation Act was amended generally by Pub. L. 101–213, § 2(c), Dec. 11, 1989, 103 Stat. 1843, and, as so amended, provisions of subsec. (j), relating to an adequate State plan, were set out in subsec. (a).

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Oct. 1, 1980, see section 6 of Pub. L. 96–358, set out as a note under section 3701 of this title.