Corn. Cotton. Flax.. Grain sorghum.. Oats.... Peaches.. Peanuts. Peas... Potatoes. Raisins. Rice... Safflower. Soybeans. Tobacco.. Tomatoes. 14 Total premiums. Interest and other receipts. 21.98 Unobligated balance available, start of year... 24.98 Unobligated balance available, end of year..... New obligational authority 57 1,207 154 162 40 271 2,084 2,451 544 427 290 525 469 138 684 1,231 2,241 2,271 10 8,200 23,456 1,278 3,350 145 28,229 -163 -1,151 -251 -34 -1,145 -604 -5,134 -3,510 -684 -566 -481 -511 -616 -261 -311 -367 -22 -2,277 -3,676 -24 1965 1966 estimate estimate 1,041 229 88 530 294 9 11,250 1,723 790 582 408 1,566 631 932 569 90 57 5 2,402 1,165 13 5,977 30,351 1,200 3,638 274 35,463 -73 -1,021 -258 -44 -1,157 -558 -6,355 -3,668 -618 -715 -585 -454 -666 -354 -195 -317 -65 -2 -3,318 -75 -30,413-34,192 -36,800 -6,701 -4,023 -651 -810 -672 -528 -731 -393 -202 -323 -90 -3 -3,654 -3,680 -50 -20 Identification code 10 70 71 72.98 74.98 93 Program and Financing (in thousands of dollars)-Continued 94 Relation of obligations to expenditures: Receipts and other offsets (items 11-17). Obligations affecting expenditures.... Cash transactions: Purpose and financial organization.--The Federal Crop Insurance Corporation, a wholly-owned Government Corporation, was created on February 16, 1938 (7 U.S.C. 1501-1519), to carry out the provisions of the Federal Crop Insurance Act. The purpose of this act is to promote the national welfare by improving the economic stability of agriculture through a sound system of crop insurance 3,638 and providing the means for the research and experience 294 helpful in devising and establishing such insurance. The Corporation provides all-risk insurance protection to farmers against loss from unavoidable causes. Since 1948, the crop insurance program has been conducted on a limited basis in selected counties and on selected crops to obtain adequate actuarial data for the expansion of the program to a national basis. Based on past experience, the Corporation began with the 1962 crop year, to expand the crop insurance program at a more rapid rate to additional counties and commodities. 38,378 1965 1966 estimate estimate -445 Funds from the issuance of capital stock provide working capital for the Corporation. Receipts which are for deposit to this fund come mainly from premiums for insurance protection afforded farmers on their investment in the production of insured crops. The principal payments from this fund are for indemnities to insured farmers who suffer crop losses arising from causes against which crop insurance provides protection, the direct cost of adjusting losses, and part of the administrative and operating expenses. The annual appropriation for the -8,625 -10,350-10,881 major portion of the administrative and operating expenses of the Corporation is presented earlier in the budget. 1,503 293 -637 1,159 28,294 33,990 37,884 -29,113 -34,435 -36,725 Capital stock of $100 million is authorized to be subscribed by the United States. As of June 30, 1964, the Secretary of the Treasury held receipts for $40 million of the authorized stock, leaving $60 million unissued. Budget program. For the 1965 crop year it is planned that the crop insurance program will be extended to 25 new counties. The following table indicates the scope of the insurance program planned for 1964, 1965, and 1966. Amounts in the 1964 column are actual and pertain to the 1963 crop year. The 1965 column pertains to the Fiscal year 1964 fiscal year (1963 crop year) actual 1961 actual.. 1962 actual 1963 actual. 1964 actual 1965 estimated. 1966 estimated. 38 1,094 Working capital at end-of-year $48,016 47,591 41.438 43.689 42,493 40,990 1965 fiscal year (1964 crop year) estimate 36 1,187 $496,999 $546,842 14,808 447,539 472,000 13,085 418,076 $30,413 $34,192 $36,800 $23,456 $30,351 $33,100 .77 1966 fiscal year (1965 crop year) estimate 36 1,212 However, inasmuch as the Corporation is expanding at a more rapid rate, and will have an annual premium income of approximately $43 million by 1966, a heavy loss occurring early in the fiscal year prior to the time premiums are collected could deplete the available funds below the amount necessary to pay indemnity claims. The Corporation is requesting authority to borrow the necessary funds if required to meet such emergencies from the Commodity Credit Corporation. The following table reflects the comparison of the working capital, and insured liability from 1961 through 1966: COMPARISON OF INSURANCE LIABILITY TO CAPITAL, FISCAL YEARS 1961 THROUGH 1966 [Dollars In thousands] $590,000 15,937 .89 .90 Financing.-Income from operations will provide adequate operating funds for 1966, unless unforeseen losses Tung nuts. occur. Therefore, no additional Capital Funds are being requested for program operations. Wheat.. Operating results and financial condition.-Preliminary estimates for crop year 1964, fiscal year 1965, indicate a favorable loss ratio for the seventh year, out of the past 8 years. Premiums of $34.2 million are estimated to exceed indemnities by $3.8 million. For the crop years 1948 through 1963, premium income of $314.8 million exceeded indemnity costs of $294 million by $20.8 million. Premium income exceeded indemnity costs in 9 years of the 16 year period. NET INCOME OR LOSS ON INSURANCE OPERATION COMMODITIES [Fiscal years ending June 30, 1964, 1965, and 1966-In thousands 1964 actual 1965 estimate 19 (1963 crop year) (1964 crop year) (1965 -15 106 -56 491 -36 97 -128 1,105 333 As of June 30, 1964, the Corporation's surplus was $3.7 million. The favorable loss experience which occurred the past six out of seven years is responsible for the current favorable financial condition of the Corporation. The following table summarizes the insurance operations by commodities for 1964, 1965, and 1966. Apples... Beans. Combined crop Corn... Cotton Flax. Grain sorghum. Oats. Peaches. Peanuts. Peas. Potatoes. Raisins. Rice... Safflower. Soybeans. Tobacco.. Tomatoes. Premiums over indemnities.... Inspection and loss Administrative expenses adjustment costs..... charged to premium income.. Other income or expense, net.... Net income or loss... Revenue.. Expense. 3,050 1,059 140 139 191 -14 147 123 Assets: -373 -864 22 36 1,405 14 425 6,957 -1.278 -3,350 -79 Liabilities: Government equity: 2,250 Net income or loss for the year. Analysis of retained earnings: Retained earnings, start of year.. Retained earnings, end of year.. 35 116 329 Total Government equity.... -4,895 1.945 -172 133 177 -1,112 35 -578 -374 227 8 -3 916 2,219 22 Revenue, Expense, and Retained Earnings (in thousands of dolla 1964 1965 actual estimate 4,897 4.373 3,841 -1.200 -3,638 -199 Financial Condition (in thousands of dollars) 1963 actual 1964 actual -1,196 30,479 34,267 28,229 -35,463 2,250 -1,196 1,438 3,689 3,689 2,493 41,522 42,341 42,786 4,813 6,179 5,942 48,520 48,728 46,335 1965 estimate 40,000 40,000 40,000 1,438 3,689 2,493 41,438 43,689 42,493 10 10 147 157 6.4 $6,968 1,050 38 641 115 1,729 65 -3,638 199 199 6.4 $6,968 ALLOCATIONS RECEIVED FROM OTHER ACCOUNTS Note.Obligations incurred under allocations from other accounts are included in the schedule of the parent appropriation, Funds appropriated to the President. "Economic Assistance". RURAL ELECTRIFICATION ADMINISTRATION General and special funds: To carry into effect the provisions of the Rural Electrification Act of 1936, as amended (7 U.S.C. 901-924), as follows: LOAN AUTHORIZATIONS For loans in accordance with said Act, and for carrying out the provisions of section 7 thereof, to be borrowed from the Secretary of the Treasury in accordance with the provisions of section 3(a) of said Act, as follows: Rural electrification program, [$365,000,000] $350,000,000, of which [$90,000,000] $65,000,000 shall be placed in reserve to be borrowed under the same terms and conditions to the extent that such amount is required during the current fiscal year under the then existing conditions for the expeditious and orderly development of the rural electrification [program;] and rural telephone [program, $70,000,000 of which $7,000,000 shall be placed in reserve to be borrowed under the same terms and conditions to the extent that such amount is required during the current fiscal year under the then existing conditions for the expeditious and orderly development of the rural telephone program] programs; and rural telephone program, $97,000,000. (Department of Agriculture and Related Agencies Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Identification code 05-56-3197-0-1-353 10 70 Financing: 17 Recovery of prior year obligations. 21.47 Unobligated balance available, start of year..24.47 Unobligated balance available, end of year... 25.47 Unobligated balance lapsing..... 47 New obligational authority (authorization to spend public debt receipts). Relation of obligations to expendi tures: Total obligations.. Receipts and other offsets (items 11-17).. 1964 actual 245,965 84,229 330,194 355,000 21,218 42,000 -3,252 -49,509 46,349 150,000 1965 estimate 351,412 397,000 495,000 270,000 85,000 351,412 -3,252 435,000 397,000 -32.270 1966 estimate 277,000 88,000 365,000 32,000 -32,270 -46,349 -26,619 26,619 11,619 90,000 65,000 397,000 447,000 397,000 Loan funds available: New loan authorization: Regular Reserve... 1964 actual 1965 estimate 1966 estimate 275,000 150,000 8,765 751 434,516 261,459 150,000 23,057 Carryover from prior year Rescissions of prior year loans... Total loan funds available..... Less Loans approved----- Balance to next year....... 5,301 1,102 275,000 285,000 90,000 165,000 23,057 26,057 28,000 416,057 $5,280,872 $5,552,872 $5,852,872 $4,451,823 $4,721,823 $4,998,823 $829,049 $831,049 $854,049 $1,379,740 $1,516,240 $1,657,240 $658,730 $729,430 $805,430 1,537 1,560 1,584 300,000 90,000 26,057 1 The reserve authorization of $65 million is proposed for use in either the electrification or telephone program. STATUS OF THE TELEPHONE PROGRAM Program Financing 2. Rural telephone.-This capital investment program is financed through loans which are made for the purpose of financing the improvement, expansion, construction, acquisition, and operation of the telephone lines and facilities or systems to furnish and improve telephone service in rural areas. The loans bear 2% interest and must be repaid within a period not to exceed 35 years. In 1950, when the telephone program started, the Census of Agriculture showed 38.2% of all farms with telephone service, fewer in both number and percentage than in 1920. Approximately 79% of the farms now have telephone service. Cumulative Rural Electrification Administration loans through June 30, 1964, will eventually provide initial or improved service to an estimated 1,965 thousand rural subscribers. 5,451 1,105 70,000 40,744 2,501 113,245 89,953 23,292 376,057 300,000 65,000 11,057 1964 actual 1965 estimate 1966 estimate 5,601 1,110 10 year... 24.47 Unobligated balance available, end of year... 47 LOAN AUTHORIZATIONS Program and Financing (in thousands of dollars) 70 71 94 New obligational authority (authorization to spend public receipts).. Relation of obligations to expenditures: Receipts and other offsets (items 11-17)_| Obligations affecting expenditures.. Expenditures (applicable receipts). Currently requested. Reduction in new obligational authority...... 1964 actual Total program costs, funded 1. Change in selected resources Total obligations...-- DEPARTMENT OF AGRICULTURE Financing: 16 Comparative transfer to other accounts.......... 25 Unobligated balance lapsing---- New obligational authority. Under proposed legislation for 1965.-To establish in 1965 a Rural Electrification Administration loan account which will reflect the net cost of the loan programs by showing it as the excess of the aggregate of the loans to be made over the current receipts on loans previously made. The account will be budgeted on a net expenditure basis. Net loan receipts are estimated to be $168 million in 1965 and $177 million in 1966, adjusting new obligational authority in 1966 as follows (in thousands of dollars): 1965 1966 estimate estimate 1964 actual -168,000-177,000 168,000 SALARIES AND EXPENSES For administrative expenses, including not to exceed $500 for financial and credit reports, funds for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (5 U.S.C. 574), and not to exceed $150,000 for employment under section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), [$11,578,000] $11,934,000. (5 U.S.C. 511-512; 7 U.S.C. 901-924; Department of Agriculture and Related Agencies Appropriation Act, 1965.) Program and Financing (in thousands of dollars) -168,000 -168,000 -177,000 -345,000 -168,000-177,000 5.922 6,614 6,614 5,108 20 5,320 11,934 11,030 -2 11,028 11,934 11,934 98 117 11,243 11,934 11,934 24.0 Printing and reproduction.. 25.1 Other services.. 25.2 Services of other agencies. 26.0 Supplies and materials.. 31.0 Equipment...... 42.0 Insurance claims and indemnities. 99.0 Total obligations................ 11,247 Personnel Summary -4 11,243 Total number of permanent positions.. 11,028 98 11,126 676 -444 -5 11,354 1964 actual 8,731 46 10 8,787 646 1,013 1 Includes capital outlay as follows: June 30, 1964, $86 thousand; 1965, $69 thousand: 1966, $63 thousand. 25 161 110 33 118 54 81 1965 1966 estimate estimate 11,578 2 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1963, $42 thousand (1963 adjustments, -$5 thousand); 1964, $36 thousand; 1965, $36 thousand; 1966. $36 thousand. 11,028 The Administration assists electrification borrowers and potential borrowers to negotiate for adequate supplies of power on reasonable terms, and makes loans for the extension and improvement of electric and telephone services in rural areas. Business management and technical help is furnished borrowers where needed to protect the Government's loan security and to assure that construction and operation of their systems conform to approved standards and will provide continuous and reliable service. Object Classification (in thousands of dollars) 1,027 3 950 9.7 $9,355 11,574 360 -4 11,934 11,934 444 -558 11,473 347 11,934 9,556 48 11 9,615 708 1,020 25 165 115 35 130 56 60 5 11,934 11,934 1,046 3 976 9.7 $9,879 11,934 11,934 558 -597 11,882 13 1965 1966 estimate estimate 9,600 48 11 9,659 710 1,000 25 165 109 35 120 55 50 6 11,934 1,042 3 976 9.7 $9,921 ALLOCATIONS RECEIVED FROM OTHER ACCOUNTS Note. Obligations incurred under allocations from other accounts are included in the schedules of the parent appropriation, Funds appropriated to the President, "Economic assistance.' " |
Get this book in print
0 Reviews Reviews aren't verified, but Google checks for and removes fake content when it's identified Write review |