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B-184506 1 (1977-03-09)

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FILE:  A-184506


        THU   COMPTROLRLER GENERAL
        .F   THE UNITED STATRO
        WA  .SHINGTON. O.C. RO0S1
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DATE:   March 9, 197


MATTER OF: Claim of Nabisco, Inc. Under the Processor Wheat
               Marketing Certificate Progrem


Claim by Nabisco for cost of wheat marketing
certificates, under regulations implementing
transition relief provision of Agriculture and
Consumer Protection Act of 19-', is denied.
Claim is based on quantity of '>okies on hand
or in trade channels on June 30, 1973. Depart-
meant of Agriculture does not consider such items
food productt as defined in regulations, applying
the term only to first product manufactured from
wheat for which certificate was orig-nally purchased.
Agriculture's interpretation is not unreasonable or
inconsistent with regulation or purpose of Act and
has been applied consistently.


     On April 8, 1976, Nabioco, Inc. filed a claim with this Office
against the United S1tates in the amount of $1,352,385.42 ($1,160,553
principal plus $191,832.42 interest). This claim arose out of the
application of the regulations governing the transition provisions
of the Processor Wheat MarketinG Certificate Program, administered
by the'Department of'Agriculture. We have requested and received
the views of the Department on the merits of Nabisco's claim, as
well as Nabisco's response to those views.

    .The Agricultural Adjustment Act of 1938, as amended,provided
for a wheat marketing 'allocation program. 7 U.S.C. §§ 1379d-j (1970).
As a means of regulatiag commerce in wheat and assuring the farmer
a fair price for his crnp, all processors of wheat were required to
purchase domestic marketing certificates for wheat processed irnto food
products, equivalent to the number of bushels of wheat cont&ined in
the food products. This requirement was suspended for 5 years as of
July 1, 1973, by the Agriculture and Consumer Protection Act of 1973,
Pub. L. No. 93-86, 87 Stct. 228, August 10, 1973. Section 1(10) of
the 1973 act authorized the Secretary of Agriculture:

          *** * to take such action as he determines to be
     necessary to facilitate the transition from the certificate
     program provided for under section 379d [of the Agricultural


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