Includes capital outlay of $145,000. Selected resources as of June 30, unpaid undelivered orders, $317,090. Mr. THOMAS. Mr. Reporter, let's take a look at Statistical Reporting Service. Mr. GRANT. Mr. Waminski. Mr. THOMAS. Put pages 1, 2, and 3 in the record. (The pages follow:) SALARIES AND EXPENSES, STATISTICAL REPORTING SERVICE, 1963 [H. Doc. 61] Request $347,600 transfer authority for 3 months from April 1, 1963. PROPOSED LANGUAGE "For additional amount for 'Salaries and expenses,' $347,600, to be derived by transfer from the appropriation for 'Reimbursement for special milk program, Commodity Credit Corporation, fiscal year 1963." EXPLANATION OF LANGUAGE The proposed language would make available, from existing departmental funds, an additional $32,600 for fiscal year 1963 for increased postal costs effective January 7, 1963, and $315,000 for increased pay costs pursuant to Public Law 87-793. PURPOSE AND NEED FOR SUPPLEMENTAL FUNDS Increased postal costs, $32,600 The increased postal rates effective January 7, 1963, as authorized by Public Law 87-793, will require that the Statistical Reporting Service reimburse the Post Office Department an additional $32,500 for postal services rendered in fiscal year 1963. This additional reimbursement is necessary in accordance with the agreement made between the Department of Agriculture and the Post Office Department pursuant to Public Law 286, 83d Congress. Because mail is such a vital aspect of the Statistical Reporting Service's crop and livestock reporting service in obtaining the basic statistical data necessary to project the official agricultural estimates, a reduction of the estimated 24,806,000 items of mail matter in fiscal year 1963, at a cost of $575,200, is not feasible. Increased pay costs, $315,000 This increase is to provide additional financing to meet the costs of pay increases required by Public Law 87-793, which cannot be absorbed within funds presently available. Justification for supplemental estimate, fiscal year 1963, for "Salaries and expenses, Statistical Reporting Service" This estimate provides additional funds for increased pay and postal costs pursuant to Public Law 87-793. Absorption of increased costs over the years has been required of the Statistical Reporting Service and the level of financing has reached the point where further absorption without program reduction is not only most difficult, but impracticable. As a very recent example, in fiscal years 1962 and 1963, objective yield work on grapes and lemons was undertaken in California at the direction of the Congress, with no increase in appropriations. This work totaled $14,000 for grapes in 1962 and $30,000 for grapes and lemons in 1963. The estimated total pay costs in fiscal year 1963 under Public Law 87-793 is $347,235. Of this amount $32,235 is being absorbed through increased reimbursements for services performed. The remaining $315,000 is being requested so that the essential program objectives of improving the crop and livestock estimates may be continued without impairment. The overall plan for this long-range program was outlined to the Congress in 1957 and funds for its progressive annual expansion have been provided in each of the subsequent years. To absorb any costs at this time would further delay fulfillment of objectives planned for the current fiscal year as well as those planned for subsequent years. Legislation enacted in 1953, Public Law 286 (39 U.S.C. 321(i) requires that the Post Office Department be reimbursed for all mail services received by Government agencies. Pursuant to this legislation, under agreement made between the Department of Agriculture and the Post Office Department, the Statisical Reporing Service will be required to reimburse the Post Office Department an additional $32,600 in fiscal year 1963. The volume of mail for fiscal year 1963 is estimated at 24,806,000 pieces, entailing reimbursement to the Post Office Department of some $542,600, plus the increased cost of $32,600, or $575,200. Other than for salaries, this cost constitutes one of the major items of expense. A reduction in the volume of mail is neither practical nor feasible in that this medium of communication is basic in obtaining the necessary statistical data on which the agency projects the official agricultural estimates. As stated above, absorption of this $32,600 would require modification or elimination of certain on-going programs or delay in the long-range crop and livestock programs. It the latter were selected, this could require deferment of the developmental crop estimates pilot program in certain of the Western States as outlined in the 1963 budget. Mr. THOMAS. You are applying for a supplemental of $32,600. Mr. THOMAS. Can you absorb any of this? Mr. KAMINSKI. No, sir, I don't believe we can. For example, last year, out of the $10 million appropriation, we had unobligated funds in the area of $30,000 which is approximately equivalent to this. However, we don't expect to have this amount again Mr. THOMAS. I will read from your justification. As a very recent example, in fiscal years 1962 and 1963, objective yield work on grapes and lemons was undertaken in California at the direction of the Congress, with no increase in appropriations. This work totaled $14,000 for grapes in 1962 and $30,000 for grapes and lemons in 1963. The estimated total pay costs in fiscal year 1963 under Public Law 87-793 is $347,235. Did you absorb all that? Mr. KAMINSKI. We absorbed the additional cost of the grapes and lemons. This is another one of the number of items that the Statistical Reporting Service has had to absorb over the years. That was approximately $30,000, sir. Mr. THOMAS. (Continuing reading:) The volume of mail for fiscal year 1963 is estimated at 24,806,000 pieces, entailing reimbursement to the Post Office Department of some $542,600, plus the increased cost of $32,600, or $575,220. Other than for salaries, this cost constitutes one of the major items of expense. A reduction in the volume of mail is neither practical nor feasible in that this medium of communication is basic in obtaining the necessary statistical data on which the agency projects the official agricultural estimates. We find throughout the Government one of the biggest complaints the public has toward all of us is mail. Mr. KAMINSKI. This is true, sir. However, in the Statistical Reporting Service this is their means for obtaining the information from the farmers for their crop reports. Mr. THOMAS. We understand that. This mailing doesn't go to "John Public" generally. Mr. KAMINSKI. No, sir, the mailings are individually addressed, generally, to selected farmers and producers of crops and these questionnaires are returned by the farmers and the producers of the crops. AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE Mr. THOMAS. Mr. Reporter, we will look at Agricultural Stabilization and Conservation Service. That is $4 million and it has been gone into very well. There are rental payments which you can't do much about and that you have to pay, is that it? Mr. GRANT. Yes, sir; that is it. Mr. THOMAS. Include pages 1 through 5 in the record. (The pages follow:) "For an additional amount for 'Conservation reserve program' $4,000,000, to remain available until expended." EXPLANATION OF LANGUAGE This proposed supplemental appropriation is urgently needed to meet rental payment commitments for the 1962 program. PURPOSE AND NEED FOR SUPPLEMENTAL FUNDS Additional funds are needed to complete annual rental payments to producers under contracts in force for the 1962 conservation reserve program. These payments were due in the fall of 1962 and should have been paid before December 31. Obligations compared to funds available (including funds previously advanced to CCC) are as follows: Total conservation payments due producers- Less: Unobligated balances brought forward_. Balance needed to complete payments- $308, 493, 769 -2,382, 835 -2, 110, 934 -300, 000, 000 4, 000, 000 The 1963 appropriation was reduced to $300 million. The House Appropriations Committee indicated that they felt this amount would be sufficient to cover all payments, and their report said, "It is recognized that the Government is obligated to meet its commitments under these contracts. Additional funds can be provided if and when they become necessary." Between 4,500 to 5,500 producers are still waiting for their payments. This has caused many hardships among these producers. Members of the Congress, as well as the Department, have received numerous complaints about the Government not meeting its obligations when due. Justification for supplemental estimate, fiscal year 1963, for "Conservation reserve program" In accordance with the provisions of the Soil Bank Act of 1956, producers participating in the conservation reserve program entered into contracts during the 5-year period, 1956–60. The contracts were for terms of from 3 to 10 years. In return for withdrawing cropland from the production of surplus burdening crops and for putting the reserve in specified conservation practices, the producer receives annual rental payments each year of the contract period. In the fiscal year 1963, $304,493,769 is available for the conservation reserve program. This consists of $300 million in the Department of Agriculture and Related Agencies Appropriation Act, 1962, and of $4,493.769 consisting of unobligated balances brought forward, unused balances in CCC advance brought forward, recovery of prior obligations and refunds collected from participants. Since total requirements for 1963 are now estimated to be $308,493.769, a supplemental estimate of $4 million will have to be provided to avoid further delay in making contract payments due an estimated 4,500 to 5,500 producers. A review of payment requirements was made during the month of December 1962. Each State made a county by county review of payments due under each contract and the estimate therefore represents a sound and accurate figure on the amount required to meet the Government's commitments at this time. The annual rental payments are made starting on October 1 of the calendar year in which the payments are due, and normally most of the payments are completed by December 31 of the same year. These payments are made to carry out firm commitments that were established during the years 1956 through 1960. A producer who complies with the contract has a valid claim against the Government and has every right to expect payment when it becomes due in return for his compliance. It has been necessary to delay payments to 4,500 to 5,500 producers. The House Committee on Appropriations report, in commenting on its action in reducing the 1963 appropriation to $300 million, stated in part. "It is recognized that the Government is obligated to meet its commitments under these contracts. Additional funds can be provided if and when they become necessary." This supplemental estimate is being submitted in order that the necessary funds may be made available to enable the Department to complete payments to all producers. Mr. THOMAS. It is recognized the Government is obligated to meet its commitments under these contracts. Additional funds can |