---
kind: "section"
citation: "7 U.S.C. § 7504"
title: "7"
title_heading: "Agriculture"
number: "7504"
heading: "Initial processing costs"
release: "119-102"
url: "https://uscodex.org/usc/7/7504"
units:
  - "Chapter 102 — Emergency Food Assistance"
---

# §7504. Initial processing costs


The [Secretary](/usc/7/499a.md?p=b-2) may use funds of the Commodity Credit Corporation to pay costs of initial processing and packaging of commodities to be distributed under the program established under this chapter into forms, and in quantities, suitable, as determined by the [Secretary](/usc/7/499a.md?p=b-2), for use in individual households when such commodities are to be consumed by individual households or for institutional use, as applicable. The [Secretary](/usc/7/499a.md?p=b-2) may pay such costs in the form of Corporation-owned commodities equal in value to such costs. The [Secretary](/usc/7/499a.md?p=b-2) shall ensure that any such payments in kind will not displace commercial sales of such commodities.


## Source credit

(Pub. L. 98–8, title II, § 203A, as added Pub. L. 98–92, § 2(5), Sept. 2, 1983, 97 Stat. 609; amended Pub. L. 99–198, title XV, § 1565(b), Dec. 23, 1985, 99 Stat. 1591.)

## Notes

### Editorial Notes

### Amendments

1985—Pub. L. 99–198 struck out “, except that wheat from the Food Security Wheat Reserve may not be used to pay such costs” after “equal in value to such costs”.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 98–92, § 2, Sept. 2, 1983, 97 Stat. 608, provided in part that this section is effective Oct. 1, 1983.