Our federation has an affiliated membership of over 5,500,000 in continental United States and has devoted much of its program toward conservation of our natural resources. We are very much interested in the work of the United States Forest Service, with particular reference at this time to the proposed 15-year program of reforestation and revegetation authorized under Public Law 348, passed in the first session of the present Congress.

It is not necessary to encroach upon your valuable time by enumerating our reasons for this support. It is sufficient to say that, in an age when all stable things seem doomed to change and extinction, when our great natural resources are fast failing us-leaving nothing to posterity save debts and more debts-that a program which looks to the restoration and development of one of those factors on which our economy depends should receive implementation through appropriation of required funds.

It is, therefore, respectfully urged that the amount for this reforestation program which, it is understood, has already been approved by the Bureau of the Budget, be recommended by your honorable committee for appropriation for this purpose. It is also suggested that the increased amount asked by the Forest Service for recreational improvements in the National Forests, which I believe is $94,000, be allowed.

The General Federation also favors increased funds for farm and other private forestry cooperation. Our future timber supply depends largely on farmers and other small owners who hold more than one-half of all commercial forest land in this country. Probably in only about 1 out of 20 cases is the small owner managing his woodlands according to good forestry standards. These owners need help in fire, insect, and disease protection, and in replanting waste lands, and so forth.

In conclusion, the General Federation urges an increased appropriation for the forest-survey program. I believe this also has the support of the Bureau of the Budget.

Conservation is economy-it is constructive. When we are spending tremendous amounts on artificial props to our economy it should be realized that funds spent on forest restoration is creating wealth, not throwing it away. Thank you.

Mr. WHITTEN. Thank you, Mrs. Wright. We are glad to have heard from you. The committee, too, is interested in forestry.

Mrs. WRIGHT. That is one of our main projects from all over the country. Our chairman of conservation is from Minnesota and is doing very fine work. We do not come up here very often and we would like to have you know that we do think the Government should cut back on its expenditures.

Mr. ANDERSEN. I am glad to see that you agree with the need for restoring and rebuilding of the forests of the Nation.

Mrs. WRIGHT. Thank you very much, gentlemen.

FRIDAY, FEBRUARY 17, 1950.

BRAWLEY EXPERIMENTAL STATION

WITNESS

HON. JOHN PHILLIPS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA

Mr. WHITTEN. We are glad to have with us Mr. Phillips of California, a member of the subcommittee handling the appropriations for the independent offices.

Mr. ANDERSEN. Mr. Chairman, I join you in welcoming our former colleague on this committee from California and I regret that the make-up of our subcommittees prevents him from continuing with us on agriculture. We need his knowledge of things pertaining to agriculture.

Mr. PHILLIPS. Thank you very much. I served with more pleasure on this subcommittee than on any other committee in Congress. This has become a pleasant annual visit to this subcommittee to tell you about something you have been instrumental in developing, the Southwestern Research Station. This program has in it a different feature than any other research program I know of.

Your subcommittee, and the rest of us, have been developing the Southwestern Research Station. It is located in Brawley, Calif. It grew from a very small idea.

The Department of Agriculture had a small program at a place called Bard. It was about to do away with the station, presumably in the thought of economy, but actually not economy, because the work was to be divided between several other stations, not equipped for it, and each specializing in other forms of agricultural research. One was the date station at India.

We had a cooperative program in the Imperial Valley in which farmers loaned land and the Department carried on experiments. We had other experimental work carried on in that area.

I proposed to you, and to my people, that Congress set up a station for irrigated land agriculture. Then came this new and interesting feature. I proposed to the farmers that they give the land, in return for which the Department would put the old Bard station into the general pot and, as a result, the farmers have acquired and have given title to some land to the Department, and have held additional lard in reserve for use by the Department. They have raised over $100,000 for that purpose.

We have started to set up, and I say this very proudly, what I think will be one of the best agricultural research stations. The climate and the growing seasons of California make it possible to grow several crops a year and so encourages research. We have produced results at the old station at Bard and transferred the research to the new station at Brawley.

I find that other sections of the Department of Agriculture, as for example, the one experimenting in equipment, are asking to use this new land because of the large area and the desirable climatic condition. (Discussion off the record.)

Mr. PHILLIPS. Now, I will go back on the record and say that in this year's budget you have the final item under the present program for building the buildings. The Department has built three buildings and there remains the office and laboratory for which you have been asked, and which I do hope you will provide in this year's budget. That item completes this present development plan. It will also be necessary to give additional money for the operation of the station because it will now be in operation, and has not been in years before. Mr. ANDERSEN. How much money is required to complete it?

Mr. PHILLIPS. There is an authorization for $200,000, $100,000 of which you put in last year as contract authority. You are now giving $100.000 new money. I think the amount for operation is $50,000. Mr. WHITTEN. Thank you very much, Mr. Phillips.

FRIDAY, FEBRUARY 17, 1950.

FARMERS HOME ADMINISTRATION

WITNESS

MERL B. PEEK, ASSISTANT SECRETARY-MANAGER, NATIONAL RECLAMATION ASSOCIATION

Mr. WHITTEN. Gentlemen, we have next Mr. Merl B. Peek of the National Reclamation Association. Mr. Peek, we will be glad to hear from you.

Mr. PEEK. Thank you, Mr. Chairman.

Our association and its representation represents the farmers, water users, business and professional people of the 17 Western States. We have been in existence since 1932.

I am an attorney by profession and assistant secretary-manager of the National Reclamation Association by occupation. I am here representing that organization in connection with the appropriations for the Farmers Home Administration, Department of Agriculture.

The purpose of the association as set forth in its constitution is to: Promote the development, control, conservation, preservation, and utilization of the water resources of the reclamation States * * * to assist the reclamation States and water users thereof in the economic development and operation of water improvements *

*

The officers and directors of the National Reclamation Association were directed to implement the resolutions adopted by our membership at our annual meeting held at Salt Lake City, Utah, on November 2, 3, and 4, 1949. Resolution No. 24 directs me to appear before you and it reads as follows:

Whereas the West still is in process of development and many farmers are in need of the kind of credit furnished by the Farmers' Home Administration to carry off this development especially in reclamation projects: and

Whereas veterans receive more than 50 percent of the money loaned by the Farmers' Home Administration: Therefore, be it

Resolved. That the National Reclamation Association recommend to the Congress an increase in the amount of this credit to farmers of the reclamation States; be it further

Resolved, That existing limitations and restrictions be liberalized by appropriate amendatory legislation, where necessary, to accomplish the maximum progress and the fullest economic development of western resources.

First, with respect to farm ownership loans :

We favor the increased budget estimate which makes available for farm-ownership loans, a total of $20,000,000. We understand that an increased amount has been requested by the Budget Bureau in the amount of $5,000,000 to bring it up to that sum. We heartily endorse that. It is our belief that such additional credit is sorely needed in the West to assist tenants, share croppers, and farm laborers to climb the agricultural ladder to farm ownership; as well as to permit existing farm owners, whose farms are inadequate and need improvement, to adjust their successful farming operations.

It is common knowledge that a new settler on a Federal reclamation project, or an existing farmer adjusting his land use from dry farming to irrigated farming, realizes full income from his land only after 4 or 5 years of operations. Consequently, we find a picture of the settlers or existing farmer in the process of change, struggling with inadequate farming facilities while attempting to develop the full productivity of his farm, and more important, while receiving income from only a portion of his lands.

Distribution of funds are made among the States on the basis of farm population and farm tenancy. Adjustments may be made among the States to take care of veterans' applications. Since the passage of Public Law 361, October 19, 1949, loans may be made to persons on Federal reclamation projects involving publicly owned lands. These wise changes in the law have increased further the demand for this type of loan.

In fact, an increase of 21 percent was found in the number of applications received in the fiscal year of 1949, as compared with 1948. In the increased number of applications received in 1949, almost 60 percent were veterans. Of the estimated 50,000 applicants in the current fiscal year, about 66 percent are estimated to be veterars. Thus, we urge the distinguished members of this committee to sanetion further adjustment of the credit amount available among the States to assist the settlers and farmers therein.

With respect to operating loans, we understand the Bureau of the Budget has not requested an increase in that amount which is $5,000000. We urge you gentlemen to consider increasing it if you think it is possible to do so.

Production and subsistence loans are made under the authority of title II of the Bankhead-Jones Farm Tenant Act, as amended by the Farmers Home Administration Act of August 14, 1946. Such loans are made for the purchase of livestock, farm equipment, feed. seed, fertilizer, home equipment and family subsistence, including medical care. Each individual farmer can borrow as much as $3.5 in any 1 year, with a top limit of $5,000 total indebtedness. The amount loaned bears interest at the rate of 5 percent on the unpaid balance, which must be returned to the Government in line with the borrower's ability to repay within a 5-year period.

There is an increased demand among the farmers of the West for this type of assistance. For instance, the following will demonstrate such increased demand by the actual number of loans made:

During the first 4 months of the current fiscal year, applications for this type of loan increased 40 percent over the number for the same period in the previous year. With the decrease in farm net income, it is expected that the demand for farm operating credit will continue to increase.

We, therefore, in line with Resolution No. 24 quoted herein, strongly urge that the budget amount of $85,000,000 be increased to meet the great demand.

Veterans who have a priority over other persons securing these loans, and rightly so, are expected to place further demands on the amount of credit available for such purposes. The $10,000,000 increase appropriated by the Congress in the fiscal year of 1949 went to veterans. The proportion going to assist veterans is expected to be even greater during the fiscal year 1950.

With respect to water-facilities loans which have been very helpful to our reclamation settlers and our people in the West who are coming into new irrigation districts, and particularly since Congress last year very wisely increased the limitation of the amount for individual projects from $50,000 to $100,000, we urge your careful consideration of an increased amount for that particular phase of the Farmers Home Administration program.

The Water Facilities Act of August 28, 1937, permits loans to individual farmers or several farmers as an organization, to assist them in developing their limited water resources. Farmstead loans and irrigation loans are authorized under this act. In addition to the amount loaned, technical assistance is also provided for the purpose of planning and installing farmstead and irrigation facilities.

This source of credit to the farmers, individually and collectively, fills in a gap between reclamation projects within the jurisdiction of the Bureau of Reclamation or the Corps of Engineers, and those projects much smaller in size which must be handled by a farmer individually or with the cooperative assistance of his neighbors.

There is an increasing demand for this type of loan in the West. The number of applications from individual farmers during the fiscal, year of 1949 increased 18 percent over those received during the previous fiscal year. Applications from associations increased 20 percent during the same period. Increased demand for small water-facilities assistance is expected, particularly in view of the action taken by Congress last year in raising the limitation on funds to be expended on individual projects from $50,000 to $100,000.

We strongly urge you to increase the amount to be made available for this purpose.