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1962 actual

estimate

INTERNATIONAL WHEAT AGREEMENT

Law 540, Eighty-fourth Congress (7 U.S.C. 1856), ($125,000,000]

$82,860,000, to remain available until expended. (Department of For expenses during fiscal year [1963] 1964 and unrecovered prior

Agriculture and Related Agencies Appropriation Act, 1963.) years' [cost] costs, including interest thereon, under the International Wheat Agreement Act of 1949, as amended (7 U.S.C.

Program and Financing in thousands of dollars) 1641-1642), [$81,218,000] $92,356,000, to remain available until expended. (76 Stat. 434; Department of Agriculture and Related Agencies Appropriation Act, 1963.)

1962 1963 1964

actual estimate estimate Program and Financing (in thousands of dollars)

Program by activities: 1963 1964

Bartered materials for supplemental stock

estimate estimate pile (cost-obligations) (object class 41).- 125,000 125,000 82,860 Program by activities:

Financing: International Wheat Agreement (cost

New obligational authority (appropriation).-- 125,000 125,000 82,860 obligations) (object class 41).. 70,681 81,21892,356 Financing:

Under title II of the Agricultural Act of 1956 (7 U.S.C. New obligational authority (appropriation) -- 70,681 81,218 92,356

1856), the Commodity Credit Corporation transfers to the

supplemental stockpile strategic and other materials acThe International Wheat Agreement Act, as amended quired as a result of barter and exchange of agricultural (7 U.S.C. 1641-1642), which was renewed for a period of 3

commodities other than those acquired for the national years effective August 1, 1962, operates to provide an

stockpile or for other purposes. Appropriations are au

thorized for the value of materials transferred to the stockassured market for wheat to exporting countries at stable pile at the lower of cost

or market value at the time of and equitable prices. The maximum and minimum prices the transfer. in the 1962 agreement are $2.02% and $1.624 per bushel, respectively, for the basic grade of wheat, No. 1, Manitoba | ations for 1962, 1963, and 1964:

The following reflects the composition of the appropriNorthern, at Fort William/Port Arthur, Canada, in terms of Canadian currency at the parity for the Canadian

[In thousands of dollars) dollar determined for the purposes of the International

1962 1963 1964 Monetary Fund as at March 1949. The total quantity

actual estimate traded under the agreement in the 1961-1962 crop year

Materials transferred to supplemental stock-
pile.

193, 294 represented about 39% of world trade in wheat, yet the

85,500 61,500 Unobligated balance available—1961.

-7,434 10 exporting member countries export inside and outside Unrecovered prior year costs financed by CCC the agreement over 97% of all wheat moving in world borrowing authority: trade.

1962

--60,860 60,860

1963. The Commodity Credit Corporation makes available

-21,360 21,360 wheat or wheat flour to carry out the provisions of the Appropriation or estimate...

125,000 125,000 82,860 agreement, including the payment-in-kind to the exporter for the difference between the prevailing sales price of wheat under the agreement and the domestic market

COMMODITY CREDIT CORPORATION price. A cash payment for this differential is made for flour.

General and special funds:
The following reflects the composition of the appro-
priations for 1962, 1963, and 1964:

REIMBURSEMENT FOR NET REALIZED LOSSES
In thousands of dollars)

To (partially] reimburse the Commodity Credit Corporation for

net realized losses sustained during the fiscal year ending June 30, 1962

[1961] 1962, pursuant to the Act of August 17, 1961 ([75 Stat.

actual Expenses of shipments:

391), $2,278,455,000] 15 U.S.C. 7130-11, 718a-12), $2,799,400,000. Commodity Credit Corporation stocks. 71,712

(Department of Agriculture and Related Agencies Appropriation Act, 61,503 57,110

1963.) Private stocks and other costs....

18,246 15,697 14,590 Total expenses of shipments.... 89,958 77,200 71,700

[REIMBURSEMENT FOR SPECIAL MILK PROGRAM] Interest expense on unrecovered balance..

92 349

[To reimburse the Commodity Credit Corporation for amounts Total expenses-current year's costs re

advanced for the fiscal year beginning July 1, 1961, for the special coverable from appropriation..

90,050 77,549 71,700 milk program for children pursuant to the Act of July 1, 1958, as Unrecovered prior year costs financed by CCC

amended (7 U.S.C. 1446; 75 Stat. 147-148, 319), $95,000,000.] borrowing authority:

(Department of Agriculture and Related Agencies Appropriation Act, 1961..

4,956

1963.) 1962.

-19,369 19,369 1963

-20,656 20,656
REIMBURSEMENT TO COMMODITY CREDIT CORPORATION, NATIONAL

WOOL ACT
Appropriation or estimate..

70,681 81,218 92,356

(Permanent, indefinite)

1963 estimate

1964 estimale

BARTERED MATERIALS FOR SUPPLEMENTAL STOCKPILE For expenses during fiscal year [1963] 1964 and unrecovered prior years' costs related to strategic and other materials acquired as a result of barter or exchange of agricultural commodities or products and transferred to the supplemental stockpile pursuant to Public

Public enterprise funds:

Note.-Expenditures from the following fund for 1963 are subject to the first paragraph of title III of the Department of Agriculture and Related Agencies Appropriation Act, 1963. For 1964 this paragraph is shown in the Department of Agriculture chapter, p. 145, preceding Federal Crop Insurance Corporation fund.

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SPECIAL ACTIVITIES (see schedule) Operating costs, funded: 1. Commodities transferred from

price support program.. 2. Other operating costs: (a) Interest on balance re

coverable.... (b) Other program and oper

ating costs...

PRICE SUPPORT, EXPORT, SUP

PLY, AND RELATED PROGRAMS AND SPECIAL MILK

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Program by activities:
Operating costs, funded:
1. Price support, export, supply, and

related programs:
(a) Cost of commodities sold - 2,760,012
(b) Cost of commodities do-
nated..

481,268 (c) Storage, transportation

and other costs not in-
cluded above.

587,950 (d) Export payments...

244,180 (e) Price support payments.. (f) Land retirement payments: (1) Feed grains.

802,956 (2) Wheat..

65, 105 Subtotal.

4,941,471 (8) Increase or decrease (-)

in provision for losses on
commodities for sale... -378, 428
Subtotal, price sup-

port, export, supply,
and related

pro-
grams.-

4,563,043
(h) Undistributed expense:
(1) Administrative ex-

pense subject to
limitation (ex-
cluding special
milk)

39,460 (2) Reimbursable ad

ministrative ex-
penses.

646
(3) Nonadministrative
expense.

44,322 (4) Interest:

(A) Treasury... 329,584 (B) Other..

19,829 (5) Decrease (-) in

provision for
losses on accounts
receivable... -5,340
Total undis-

tributed ex-
pense..

428,501

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2,37

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2,37

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2,3

-1,500

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Financing:
New obligational authority (appro-

priations):
Restoration of capital impairment... 1,017,610
Reimbursement for net realized

losses..
Reimbursement for costs of special
milk program..

90,000 Subtotal.

1,107,610 Proposed supplemental transfer to

other accounts (adjusted appro-
priation) (-) ---
Total new obligational author-
ity (appropriations)

1,107,610 Unobligated balances lapsing:

Restoration of capital impairment... ()
Reimbursement for costs of special
milk program.---

-3,500 New obligational authority (net). 1,104,110 Revenues and other receipts: 1. Price support, export, supply, and

related programs: (a) Loans repaid.

898,341 (b) Loan collateral forfeited. 1,017,965 (c) Revenue..

2,540,734 2. Special milk program: Revenue (prior year adjustment).

959 3. Undistributed receipts: (a) Interest income..

58,762 (b) Other --

1,543 Total,

and other receipts...

4,518,304 Total new obligational

authority, revenues
and other receipts,
price support, export,
supply, and related
programs and special
milk.

5,622,414 SPECIAL ACTIVITIES (see schedule) New obligational authority: (appro

priations):
Reimbursement to Commodity

Credit Corporation for costs of
foreign assistance and other spe-
cial activities.

1,861,915

1,00 1,8 2.29

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revenues

5.27

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7,64

1

7,527,853 -171,899

7,355,954

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82 _-420,909

SPECIAL ACTIVITIES-Continued

SPECIAL ACTIVITIES (sec schedule) New obligational authority-Continued

Obligations (from program and financReimbursement to Commodity

ing)

2,274,040 2,194,252 2,221,078 Credit Corporation, National

Decrease in gross unpaid obligations... 3,945

1,472

57,000 Wool Act (permanent indefinite authorization). 75,278 69,165 69,000 Gross expenditures.

2,277,985 2,195,724 2,278,078 Total appropriations.

1,937, 193 69,165 69,000 Revenues and other receipts (from proUnobligated balance returned.

-32
gram and financing).---

2,114,739 2,124,406 2.183,857

Increase (-) or decrease in accounts Total new obligational authority,

receivable.--

-329, 406 -262,664 515,130 net.. 1,937, 193 69,133 69,000

Applicable receipts.

1.785,333 1.861,742 2,698,987 Revenue and other receipts: Advances and reimbursements re

Budget expenditures, special acceived from Foreign assistance

tivities

492,652 333,982 programs.

1,594,000 1,552,301 2,460,388 Other reimbursements received. 151,374 264,290 184,565 Total budget expenditures.. 2,635, 785 3,185,639 1,387, 198 Increase or decrease (-) in receivables, Foreign assistance programs.

330,953 265,536

-511,276 Costs recoverable from other funds.. 312

179

180

Under its corporate charter (15 U.S.C. 714–714p), and Subtotal......

2,076,639 2,082,306 2,133,857 specific statutes where applicable, the Commodity Credit Repayment of loans for agricultural conservation purposes. 38,100 42,100 50,000 Corporation engages in buying, selling, lending, and other

activities with respect to agricultural commodities, their Total revenues and receipts ----- 2,114,739 2,124,406 2,183,857 products, food, feeds, and fibers, for the purpose of Total, special activities...

stabilizing, supporting, and protecting farm income and 4,051,932 2,193,539 2,252,857

prices; assisting in the maintenance of balanced and Total obligational authority,

adequate supplies of such commodities; and facilitating revenues and other receipts. 9,674,346 9,840,820 10.488,037 their orderly distribution. The Corporation also makes Unobligated balance brought forward

available materials and facilities required in connection (authorization to expend from public debt receipts).

111,915 189,918 420,991

with the production and marketing of such commodities. Unobligated balance carried forward

The Corporation has an authorized capital stock of (authorization to expend from

$100 million held by the United States and authority to public debt receipts). -189,918 --420,991 - 1,331,996

borrow up to $14.5 billion. Financing applied to program...- 9,596,342 9,609,747 9,577,032 Programs. The budget is based on (1) price support,

export, supply, and related programs and (2) special Note.-In addition to obligations other than liabilities reflected in the analysis

activities. of Government equity and undrawn authorizations the Corporation does not reflect in its accounts claims by the Corporation on which adequate proof has not been Obligations and expenditures for these programs established.

include primarily loans, purchases, purchase agreements, 1 Balances of selected resources are identified on the statement of financial con

carrying charges, incentive and other payments, operating . Less than $500. * Statutory obligations against borrowing authority, include only borrowings

and interest expenses, and advances and current oblifrom Treasury and obligations to purchase notes or other obligations evidencing gations incident to special activities as authorized by loans held by banks. Other obligations, contingent liabilities, and commitments do not become charges against the statutory borrowing authority until they result

specific legislation. in borrowings from Treasury or in notes or other obligations evidencing loans held by banks.

Budget assumptions.—The following general assump

tions form the basis for the Corporation's 1963 and 1964 Summary of Sources and Application of Funds (in thousands of dollars)

budget estimates: (a) employment, production, and 1962 1963 1964

national income will rise moderately both in 1963 and actual estimate estimate 1964 from the present level; (b) on the average, the

general level of prices will be the same as or increase PRICE SUPPORT, EXPORT, SUPPLY, AND RELATED PROGRAMS

slightly over the present level; (c) developments in SPECIAL MILK

international relations will not be such as to affect GovObligations (from program and financ

ernment civilian programs generally; (d) exports of ing).

7,322,302 7,415,495 7,355,954 agricultural commodities in the fiscal year 1964 will be Increase (-) or decrease in gross unpaid

at about current levels; (e) yields for the 1963 crops obligations.--

-643,014 969,663 —161,367 generally are based on recent averages adjusted for trend; Gross expenditures --6,679,288 8,385,158 7,194,587

and (f) acreage allotments and marketing quotas will be

in effect for the 1963 crops of peanuts, rice, wheat, cotton, Revenues and other receipts (from pro

and certain kinds of tobacco. Compliance with program and financing).

4,518,304 5,277,426 5,435,780 visions of the Food and Agriculture Act of 1962, the Increase (-) or decrease in accounts receivable...

17,851 256,075 -49,300

provisions of the 1962 and 1963 special agricultural

conservation program for feed grains and the wheat stabiliApplicable receipts.--4,536.155 5,533,501 5,386,480 zation programs should result in substantial acreage

reductions in those commodities. The estimates for the Budget expenditures, price sup,

feed grain and wheat stabilization programs assume port, export, supply, and related programs and special milk....--2,143,133 2,851,657 1,808, 107 diverted acreage based on probable signups by coopera

tors. However, the full impact of these programs

dition.

1962 actual

1963 eslim ale

COMMODITY CREDIT CORPORATION—Continued world prices. The incentive payment program

and mohair is described under Special activities. Public enterprise funds-Continued

In all its price support operations, the Cor COMMODITY CREDIT CORPORATION FUND—Continued

utilizes normal trade facilities to the maximun

practicable. In its lending activities the Cor cannot be accurately predicted until the final returns uses local banks, cooperatives, and other financial of actual participation are received for these crops. tions. Commercial storage facilities are used to

In considering these estimates, it should be recognized extent in the storage of loan collateral and of st that it is difficult to estimate requirements for the year quired by the Corporation. ending June 30, 1964. They are dependent upon weather conditions and all other factors affecting volume of pro

Disposition of commodities acquired by the Cor

in its price-support operations is made in complia duction of crops not yet planted in this country and sections 202, 407, and 416 of the Agricultural Act abroad, economic conditions generally, food needs in this as amended, and other applicable legislation, par country and abroad, availability of dollar exchange, and the Agricultural Trade Development and Assist other complex and unpredictable factors.

of 1954, Public Law 480, 83d Congress, as am PRICE SUPPORT, EXPORT, SUPPLY, AND RELATED PROGRAMS

U.S.C. 1691), title II of the Agricultural Act of

amended, the Agricultural Act of 1961, the act o Price support.-Price-support operations are carried

19, 1958, in the case of cornmeal and wheat flou out under the Corporation's charter powers (15 U.S.C.

Law 86—299 (7 U.S.C. 1427 note) along with Pu 714) and in conformity with the Agricultural Act of 1949, 87–127, with respect to sale of livestock feed in en as amended (7 U.S.C. 1421), and other applicable legisla- areas, and the Food and Agriculture Act of 1962 tion including the Food and Agriculture Act of 1962,

Price-support commodities in Commodity Cred Public Law 87-703. Under the Agricultural Act of 1949,

ration inventory which are disposed of through as amended, price support is mandatory for the basic com

modity export program, redemption of paymen modities—corn, cotton, wheat, rice, peanuts, and to

certificates, and special activities such as sales fo bacco--and specific nonbasic commodities; namely, tung

currencies are, for accounting purposes, credite nuts, honey, milk, butterfat, and the products of milk and

price-support program. butterfat, barley, oats, rye, and grain sorghums. Price

DATA ON PRICE-SUPPORT PROGRAM support for wool and mohair is mandatory under the National Wool Act of 1954, as amended (7 U.S.C. 1781

[In thousands of dollars! 1787), through the marketing year ending March 31, 1966.

Loans made.. Price support for other nonbasic agricultural commodities

2,619,316 2,734,893 Loans repaid.

880,354 1.049,964 is discretionary except that whenever the price of either

Loan collateral forfeited.

1,017,962 1,835,586 cottonseed or soybeans is supported, the price of the other Loans outstanding June 30.

2,182,668 2,025, 204 must be supported at such level as the Secretary deter Acquisitions.

2,138,033 2,918,928 mines will cause them to compete on equal terms on the

Cost of commodities sold.

2,759,645 2,165,898 Cost of commodities donated.

467,363 662,314 market. This program may also include operations to

Inventory as of June 30.--

4,474,358 4,565,074 remove and dispose of or aid in the removal or disposition Investment in price support as of June 30.. 6,657,026 6,590, 278 of surplus agricultural commodities for the purpose of

Net expenditures.

590,441 1,285,566 stabilizing prices at levels not in excess of permissible

Realized losses...

1,279,485 1,100,627 price-support levels.

Commodity export. - The Corporation prom Price support is made available through loans, payments, purchase agreements, purchases, and other opera- sales, barters, payments, and other operations

export of agricultural commodities and products tions, and, in the case of wool and mohair, through incentive

than in barters for stockpiling purposes, such con payments based on marketings. Producers' commodities

and products may be those held in private trade serve as collateral for price-support loans. With limited

as well as those acquired by the Corporation in exceptions, price-support loans are nonrecourse and the Corporation looks only to the pledged or mortgaged

support operations. This program is carried o

the authority contained in the Corporation's collateral for satisfaction of the loan. Purchase agree

particularly sections 5(d) and 5(f), and in ac ments generally are available during the same period that loans are available. By signing a purchase agreement, a

with specific statutes where applicable, such as

407 and 416 of the Agricultural Act of 1949, as producer receives an option to sell to the Corporation any the International Wheat Agreement Act of quantity of the commodity he may elect within the maxi

amended (7 U.S.C. 1641), the Agricultural Trade mum specified in the agreement. Direct purchases are ment and Assistance Act of 1954, as amended, made from producers and processors depending on the the Agricultural Act of 1954, title II of the Ag commodities involved. Under section 308 of the Agri

Act of 1956, as amended, and section 9 of the ac cultural Trade Development and Assistance Act of 1954. as amended, purchases of animal fats and edible oils and currencies are conducted pursuant to the Ag

tember 6, 1958. In general, transactions involvir products thereof are authorized as will tend to maintain Trade Development and Assistance Act of the support level for cottonseed and soybeans without

amended. However, other such transactions requiring the acquisition of such commodities under the

conducted under the charter authority. usual loan and purchase agreements of the price-support Based on recommendations of the Executive program.

Under section 416 of the Agricultural Act of Committee, approved by the President on Septi 1949, as amended, price supported cominodities in private 1962, the emphasis of the barter program will: stocks are made available for donation in order to prevent from acquisition of strategic and critical materia the waste thereof before such commodities can be disposed supplemental stockpile to its use in various ty of in normal domestic channels without impairment of

shore procurement programs for the Departmei the price-support program or sold abroad at competitive fense, the Agency for International Developn

other agencies. Commodity Credit Corporation will be and their products are procured or aid is given in their reimbursed for off-shore procurement by the recipient procurement to facilitate distribution or to meet anticiagencies.

pated requirements during periods of short supply. The To the extent that appropriations are not provided Corporation may also, through purchases, loans, sales under Foreign assistance programs, obligations under the or other means, make available materials and facilities International Wheat Agreement, and titles I, II, and IV required in connection with the production and marketing of the Agricultural Trade Development and Assistance of agricultural commodities. Act of 1954, as amended, are paid by the Corporation Operations involving procurement for other Governsubject to reimbursement from appropriations authorized ment agencies are conducted in accordance with section 4 for such purpose. These programs are further described of the act of July 16, 1943 (15 U.S.C. 713a-9), which under special activities and Foreign assistance programs. requires that the Corporation be fully reimbursed for

In addition to the exports under the International services performed, losses sustained, operating costs Wheat Agreement, Corporation-owned wheat is available incurred, or commodities purchased or delivered to or for export under barter programs of the Corporation at on behalf of any other Government agency from the competitive world prices and under the Corporation's appropriate funds of such agency. Operations not subject export credit sales program. It is also made available to to section 4 of the act may involve losses if such are necesexporters, in payment of the price differential between sary to the accomplishment of the objectives of the parthe prevailing world export sales price and the domestic ticular operation. market price which is earned on exports of free-market The main activities now carried on are procurement for wheat outside the International Wheat Agreement and other Government agencies of specialized commodities under this agreement. Cash payments are made on all not in the Corporation's price-support inventory, exports of wheat flour either under the International Feed grains.-Under section 16 (c), (d), and (g) of the Wheat Agreement or outside the agreement. Wheat and Soil Conservation and Domestic Allotment Act, the flour payments outside the agreement are made on exports Secretary of Agriculture utilizes Commodity Credit Corto countries not participating in the agreement.

poration funds, facilities, and stocks of feed grains in In order to encourage movement of cotton, corn, barley, redeeming or marketing payment-in-kind certificates grain sorghums, oats, rye, rice and nonfat dry milk from issued to producers who divert acreage from the production free-market supplies into export channels, export pay of 1961 crops of corn and grain sorghums and 1962 and ments are made in the form of these commodities from the 1963 crops of corn, grain sorghums, and barley under Corporation's stocks. Cotton held in the Corporation's this program. The Corporation is also authorized to use inventory is also sold for unrestricted use on a competitive its capital funds to pay administrative expenses necessary price basis.

to carry out this program through June 30, 1963. (See The Corporation conducts a cotton products export Agricultural Stabilization and Conservation Service.) program designed to protect the competitive position of Wheat stabilization.—Under section 124 of the Agriculthe domestic cotton industry in relation to sales of cotton tural Act of 1961, Public Law 87-128, approved August 8, products manufactured abroad from American cotton 1961, and section 307 of the Food and Agriculture Act of purchased at export prices. Equalization payments, 1962 and section 339(b) of the Agricultural Adjustment based on the raw cotton content in the products exported, Act of 1938, as added by the Food and Agriculture Act are made to exporters on cotton products of upland cotton of 1962, the Commodity Credit Corporation is authorized grown and wholly processed in the United States.

to utilize its capital funds and other assets for the purpose The Corporation also purchases wheat and other prod-of making payments to producers who divert acreage from ucts from processors or processes its own stocks of such the production of 1962, 1963, 1964 and 1965 crops of wheat commodities for foreign and domestic distribution. In under this program. Payments are made by issuance of certain cases, payments for such products or processing Commodity Credit Corporation sight drafts which may costs are made in payment-in-kind export certificates. be cashed or used for the acquisition of wheat from Com

Also, the Corporation furnishes agricultural commodi- modity Credit Corporation stocks. The Corporation is ties and products for distribution or exhibition at inter also authorized to use its capital funds to pay administranational trade fairs to aid in the development of foreign tive expenses necessary to carry out this program through markets for such commodities.

June 30, 1963. (See Agricultural Stabilization and Storage facilities. This program is carried out under the Conservation Service.) authority contained in the Corporation's charter, par Loan operations. The following table reflects the loan ticularly sections 4(h), 4(m), and 5 (a) and (b). The operations of the Corporation applicable to the preceding Corporation may (a) purchase and maintain (in storage programs (in thousands of dollars): deficient areas) granaries and equipment for care and storage of grain owned or controlled by the Corporation; Loans outstanding, gross, beginning of

1962 actual 1963 estimate 1964 estimate (b) make loans for the construction or expansion of farm

year: storage facilities; (c) provide storage-use guarantees to Commodity Credit Corporation.... 917,003 1,353,091 1,470,577 encourage the construction of commercial storage facil Lending agencies....

64

3 ities; and (d) undertake other operations necessary to

Certificates of interest.

605,698 901,823 639,136 provide storage adequate to carry out the Corporation's Total, loans outstanding, gross, programs.

beginning of year.

1,522,765 2,254,917 2,109,713 Supply and foreign purchase. This program is carried Add loans made

2,661,660 2,766,893 2,273,432 out under the authority contained in the Corporation's

Deduct:
Loans repaid

897,574 1,069,464 880,302 charter, particularly sections 5 (b) and (c) thereof. The

Acquisition of loan collateral. 1,017,965 1,835,586 1,926,059 Corporation procures foods, agricultural commodities, Transfers to accounts receivable..

767
240

250 their products, and related materials to supply the Writeoffs...

13,202 6,807

487 requirements of Government agencies, foreign govern Total, loans outstanding, gross, ments, and relief and rehabilitation agencies, and to meet

end of year.

2,254,917 2,109,713 1,576,047 domestic requirements. Foods, agricultural commodities

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