74TH CONGRESS 1st Session

SENATE

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REPORT No. 446

TO CREATE THE FARMERS' HOME CORPORATION, TO PROMOTE MORE SECURE OCCUPANCY OF FARMS AND FARM HOMES, TO CORRECT THE ECONOMIC INSTABILITY RESULTING FROM SOME PRESENT FORMS OF FARM TENANCY, TO ENGAGE IN RURAL REHABILITATION, AND FOR OTHER PURPOSES

APRIL 11, 1935.-Ordered to be printed

Mr. BANKHEAD, from the Committee on Agriculture and Forestry, submitted the following

REPORT

[To accompany S. 2367]

The Committee on Agriculture and Forestry, to whom was referred the bill (S. 2367) with two amendments, to create the Farmers' Home Corporation, to promote more secure occupancy of farms and farm homes, to correct the economic instability resulting from some present forms of farm tenancy, to engage in rural rehabilitation, and for other purposes, having considered the same, report it to the Senate with the recommendation that the bill, with two amendments, do pass.

The object of the bill is to deal with, in a broad way, the farm tenancy problem of the United States. The bill, in short, provides as follows:

A corporation known as "Farmers' Home Corporation" is created. The management of the corporation is vested in a board of directors of 5 members, consisting of the Secretary of Agriculture and the Governor of the Farm Credit Administration as members ex officio, and 3 members to be appointed by the President by and with the advice and consent of the Senate. The President shall designate one of the appointive members as chairman of the board.

The Corporation shall have capital stock in the amount of $50,000,000, which may, from time to time, be increased by the Board. The original capital stock may be subscribed for by the President on behalf of the United States, and payments for such subscriptions paid by transfers under authority given in the Emergency Relief Act of 1935.

The Corporation is authorized to issue bonds in an aggregate amount not to exceed $1,000,000,000 and must have the approval of the Secretary of the Treasury before any bonds are issued. The bonds and interest are guaranteed by the United States. The usual provisions about the issuance of bonds of similar character are contained in the bill.

The Corporation is given power to establish, make loans for, and assist in the establishment of small individual farms and farm homes, together with the necessary buildings and other structures, livestock, equipment, implements and machinery, furnishings, supplies, and facilities.

In carrying out the provisions and purposes of the act the Corporation is authorized to enter into contracts and to acquire by purchase, gift, or otherwise any real or personal property, and to improve, develop, maintain, sell, or lease any of such property or interest therein. It is also given authority to accept and utilize such voluntary and uncompensated services, cooperate with such Federal and State agencies and utilize, with the consent of the State, such State and local officers and employees as may be necessary.

Preference shall be given applicants for the purchase of farm homes who are married or who have dependent families, have good moral character, and are experienced in farming and familiar with farm operations, or who are, or recently were, farmers, farm tenants, share croppers, or farm laborers.

Amortization periods for repayment of the indebtedness may be fixed by the corporation, but in no event shall the amortization period exceed 60 years.

The rate of interest to be charged by the Corporation shall be at as low a rate of interest as the Government can secure money, plus a reasonable charge to be applied toward the expenses of administration not to exceed 1 per centum per annum.

It is provided that the corporation shall give due consideration to the desirability of avoiding expansion of production for the market of crops for which the price is lower than the parity price as defined in the Agricultural Adjustment Act as amended, and shall, so far as practicable, assist the beneficiaries of the program to become established upon lands now in cultivation.

Provisions for protection against the creation of either voluntary or involuntary liens are provided, and the purchaser cannot, before the purchase price is paid, transfer the property without the written consent of the Corporation.

The property held by any purchaser shall be subject to taxation of the State or a political subdivision thereof to the same extent, according to its value, as other real property is taxed.

REASONS FOR THE LEGISLATION

Farm tenancy in the United States has increased in an alarming way. The problem is not entirely a sectional one, but exists in agricultural areas throughout the United States. Á statement taken from the census of 1930 is attached to this report. It shows the number of farms; the number operated by tenants; and percent of all farms operated by teaants, by divisions and States. While 42.4 percent of all farms were operated by tenants in 1930, evidence before

the committee showed that that percentage had been largely increased since that time, and it is believed that at this time approximately one-half of all farms are operated by tenants. By the census of 1930 31.1 percent were white tenants and 11.3 colored tenants.

The evils inhering in this situation are manifest and manifold. Farm tenants, taken as a whole, average moving from one farm to another in 4 years. This situation has caused them to be often referred to as the "Gypsy Farmers." One who does not own his home cannot take a proper interest in improving it nor in protecting the soil. Members of a family who are constantly moving lose their local contacts in schools, churches and community services. They constantly occupy a position of uncertainty and insecurity.

Many millions of acres of good farm lands are owned by absentee owners. This is bad for the owner because he cannot give proper attention to the preservation of the soil and the improvements on the farm. It is more unfortunate for the tenants for all the reasons involved in the proper social, educational, spiritual, and good citizenship standpoint. It is believed that a large percent of the absentee owners will be willing to dispose of their farms so that worthy tenants may acquire small farm homes. The whole program, however, is voluntary both on the part of the landholders and farm workers who seek aid for acquiring a farm home.

In a number of foreign countries a solution of the tenant problem was undertaken some years ago. A statement or the facts is set out in the hearings. In Ireland and Denmark the plan has been in operation for some years on a very extensive scale and has proven successful and highly beneficial, not only to the tenants but to the people of the countries involved.

Total number of farms; number operated by tenants; and percent of all farms operated by tenants, by divisions and States

Total number of farms; number operated by tenants; and percent of all farms operated by tenants, by divisions and States-Continued

Mr. NORRIS, from the Committee on Agriculture and Forestry, submitted the following

REPORT

To accompany S. 2357]

The Senate Committee on Agriculture and Forestry, to whom was referred Senate bill 2357, amending Public, No. 17, of the Seventythird Congress, the Tennessee Valley Authority Act of 1933, having had the same under consideration, beg leave to report thereon as follows:

We recommend the passage of the bill S. 2357. The bill amends the Tennessee Valley Authority Act of 1933. None of the amendments are of very great importance, but all are desirable in carrying out the intent and purposes of the act. It has been found in practical operation that these amendments are necessary in order to clear up any doubt as to the operation of the law and to clarify and make plain some of the provisions of the act. It is believed that this bill will accomplish that result.