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The following statement compares the 1961 and 1962 losses by programs and commodities:

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PRICE SUPPORT OPERATIONS

Mr. WHITTEN. We will now insert the justification pages which deal with price support levels, acreage, loans, and other CCC operations.

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B. Summary of price support payments—1963 crop feed grains and wheat

(fiscal year 1964)

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C. DESCRIPTION OF CURRENT PROGRAMS

1. Objective

To support the price of agricultural commodities, as required.

2. Authority

Price-support activities are governed by the provisions of the following legislation:

Commodity Credit Corporation Charter Act (15 U.S.C. 714-714p);

Titles I, II, and III and IV of the Agricultural Act of 1949, as amended (7 U.S.C. 1421 et. seq.);

Titles I and II of the Agricultural Act of 1956 (7 U.S.C. 1813-60);
Public Law 87-5 (75 Stat. 6);

The Agricultural Act of 1961 (Public Law 87-128);

Section 308 of the Agricultural Trade Development and Assistance Act of 1954, as amended (Public Law 480), with respect to purchases of animal fats and edible oils and products thereof for donation; and

The Food and Agriculture Act of 1962.

3. Operations

Price support is available to producers through loans, payments, purchase agreements, and purchases.

(a) Loans. For most commodities, nonrecourse loans may be obtained from financial institutions or direct from the Corporation through the Agricutural Stabilization and Conservation Service county committees. Loans are made on a note-and-chattel mortgage basis for farm-stored commodities, and on a noteand-loan agreement basis secured by warehouse receipts for warehouse-stored loans. In the case of tobacco and peanuts, advances are made to producers through producer associations which are under contract with Commodity Credit Corporation. Producers of naval stores obtain loans through the American Turpentine Farmers Association Cooperative. The producers' commodities serve as collateral for price-support loans.

(b) Reseals. Reseal loans on 1961 crops (grains) in farm storage under loan, or purchase agreements to be converted to loans, and extended reseal loans for various crop years were available. Purchase agreements may be converted to loans for reseal purposes. A specificed reseal storage payment is made on all reseal loans. Such payment is recorded as a current operating expense.

Reseal and extended reseal loans were available generally for 1 year (except as indicated) as follows:

Corn: 1961 crop (2 years), 1960 crop (2 years), 1959 crop (extension 2) and 1958 crop (extension 3).

Wheat: 1961 crop (2 years), 1960 crop (2 years) and 1959 crop (extension 2).

Barley 1961 crop, 1960 crop (extension 1) and 1959 crop (extension 2 on a limited scale).

Grain sorghum: 1961 crop and 1960 crop (2 years).

Oats: 1961 crop and 1960 crop (extension 1).

Soybeans: 1961 crop.

(c) Purchase agreements.-A producer desiring to deliver a commodity to the Corporation under a purchase agreement must declare his intention to sell within a 30-day period ending on the applicable loan maturity date. The producer is not obligated to sell any specified quantity; however, the number of units specified in the purchase agreement is the maximum quantity that may be delivered.

(d) Purchases.-Direct purchases are made of: (a) butter, cheddar cheese, and nonfat dry milk from manufacturers and handlers; (b) cottonseed from producers and ginners; (c) flaxseed from producers in designated Texas counties; (d) No. 2 shelled peanuts from shellers when conditions warrant; (e) storable corn on the open market at not more than market or current support price to offset dispositions of Commodity Credit Corporation off-grade corn; (f) wheat at terminal or port position at prevailing market price to offset sales of small or isolated lots of Commodity Credit Corporation wheat at country or inland position in order to effect rotation and consolidation of such stocks; and (g) cornmeal, wheat flour, milk, rice, bulgur, rolled wheat and vegetable oils on the open market pursuant to competitive offers, for donation. Sales are

authorized for inventory management purposes of Commodity Credit Corporation corn and wheat in amounts not to exceed the equivalent of quantities of flour and cornmeal so purchased.

(e) Price support payments on 1963 crops of feed grains and wheat.—(1) The 1963 feed grain program: In a change from previous years, farmers participating in the 1963 feed grain program will receive price support partly through loans and purchase agreements and partly through an in-kind payment. Loans and purchase agreements will reflect a national average price of $1.07 per bushel on corn, $1.71 per hundredweight on grain sorghum (96 cents per bushel) and 82 cents per bushel on barley. In addition, price-support payments will be made on the normal production of the harvested acreage of 18 cents per bushel on corn, 29 cents per hundredweight on grain sorghums (16 cents per bushel) and 14 cents per bushel on barley. Oats and rye are not included in the special 1963 feed grain program, and neither payments is provided nor reduction in acreage is required for price-support eligibility.

In another substantial change from the previous program, farmers to be eligible for price support, must divert the total acreage signed up under the special feed grain program.

Participating farmers will be able to put all of their 1963-crop corn, grain sorghum, and barley under price-support loans and purchase agreements. This is in contrast to provisions of the 1961 and 1962 program which limited price support to the normal production of harvested acreage. For details of acreage diversion payments see section V, special program for feed grains.

(2) The 1963 wheat program: Wheatgrowers have approved marketing quotas for the 1963 crop, with a 55-million acre national allotment. Producers who divert acreage of the 1963 crop will be eligible for diversion payments equal to 50 percent of the support value of normal production on the land diverted. Such producers will also qualify for an average loan or purchase agreement rate of $1.82 per bushel and price support payments-in-kind of 18 cents a bushel, making a total support level of $2 per bushel. For details of acreage diversion

payments see section III, wheat stabilization program. (f) Availability of price support.—Price support on the 1962 and 1963 crops is available to producers, by commodities, as follows:

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