Plains States. In this area, the program is stimulating the return to grass of vast areas of dry land planted to grain under wartime needs. Contracts in effect in 1960 provide for grass cover on 26,160,000 acres of which about 19.5 million acres are newly planted and nearly 6.7 million existing acres are being maintained. The Great Plains area of 422 counties accounts for 8.8 million acres being planted to grass.

A total of nearly 2,169,000 acres of the conservation reserve acreage has been or is being planted to trees and shrubs. Tree-planting contracts are for the full 10-year period. When cropland goes out of production and is planted to trees, it is likely to remain out of production for a long period of time, perhaps permanently.

Practices designed especially for wildlife protection have gained favorable acceptance by participating farmers and genera! approval of sportsmen and wildlife organizations. Over 317,000 acres of the conservation reserve acreage are being devoted to wildlife cover and water impoundments for wildlife inIcluding the construction of water-control structures which will flood 12,000 acres of cropland. The conservation reserve program includes provision for the construction of 6,605 dams, pits, and ponds to impound water for wildlife and recreation on 14,666 acres.

The conservation practices by States required to be established or maintained under all contracts in force as of July 15, 1960, are shown in table III.

Practice payments nearly completed.-The bulk of the conservation practices are established soon after producers enter into contracts. Under contracts entered into through the 1960 program, it is estimated that the total Government commitment for initial establishment of conservation cover is $166.6 million. Through November 30, 1960, about $153.4 million of the total commitment has been paid producers. On a dollar basis this would indicate that practices are 92 percent completed. An additional $4.1 million has been paid to producers through June 30, 1960, for the reestablishment of practices which failed due to natural disasters.

The cost to the Government for the establishment of trees, grass. water storage facilities, and wildlife habitat on the acreage placed in the conservation reserve in 1960 averages about 60 cents per acre per year of contract. The average length of contract is 7.26 years.

TABLE 1.-1960 conservation reserve— -Participation in the 1960 program (1956-60 contracts in force)

TABLE I.-1960 conservation reserve- -Participation in the 1960 program (1956-60 contracts in force)-Continued

TABLE II.-Conservation reserve program: Estimated 1960 adjustments in land use with production adjustments for 1960 and 1957-60, revised

1 Production adjustment for 1957 through 1960 is based on each respective year's crop yields adjusted for location and quality of reserve acres that year.

Item 18 exceeds item 19 because of double cropping, crop failure replanted, and similar unusual land uses. Total reserve acreage is based on July 15, 1960, contract inventory.

Rental payments continue through fiscal year 1970.—Since 1960 was the last year in which additional acreage could be entered into the program, and since a number of contracts each year will reach their agreed on termination date, rental payments to producers will continue through the fiscal year 1970 on a diminishing basis as follows:

Mr. WHITTEN. The appropriation requested for 1961 was $330 million. In 1962 you request the same amount. What has been your experience in the current year? How much have you spent of the $330 million?

Mr. BEACH. We estimated that we will use and still estimate that we will use the full amount of the availability for 1961. That will include the carryover from the preceding year of $44 million.

Mr. WHITTEN. You had this year $44 million, plus $330 million. How much have you actually spent as of now?

Mr. BEACH. As of December 31, 1960, we had obligated $324.3 million of the total available for the fiscal year.

Mr. WHITTEN. When you say obligated, you mean you had acknowledged the indebtedness to that point? Or is that just your estimate of contracts?

Mr. BEACH. We know what the obligation is under the contracts. These contracts have already been signed, you see.

Mr. WHITTEN. That's right. But our investigation showed that you signed a lot of contracts that might well be reopened and reconsidered.

Mr. BEACH. Those have all been reviewed.

Mr. GODFREY. Adjustments have been made.

Mr. WHITTEN. That is the point I was making. Does your $330 million represent the figure after these adjustments?

Mr. BEACH. The total adjustments, I think, in the case of ineligible acreage resulted in a $246,124 reduction in future payments during the entire life of the contracts. In the case of contracts where the annual payment rate was in error, the reduction would result in $21,191. In other words, the reductions amount to about $43,400 a

year.

Mr. WHITTEN. That is a mighty small amount in view of the size of this program. However, I think the record shows in times past, where this committee took strong exception, we ran into the fact that the law and the regulations were such that it was pretty hard to make any adjustments. So I reckon that explains the situation.

Mr. BEACH. We covered all the contracts, sir.