EXHIBIT la RECOMMENDATIONS Agreed Upon in Atlanta, GA., JANUARY 7, 1963 We, the members of a cottongrowers group which met in Atlanta on January 7, 1963, from the States of Alabama, Georgia, Mississippi, North Carolina, South Carolina, Texas, and Virginia, do hereby agree to the following principles to be used in developing cotton legislation for 1963 and subsequent years and do submit these to the Secretary of Agriculture and the chairmen of the Agriculture Committees of the House and Senate for their careful and valued consideration. 1. Endorsement of a trade incentive payment to the cotton manufacturer with payment of this established as far as possible from the cotton farmer. 2. A base allotment of 16 million acres with the support price not less than in 1962. 3. A provision to permit each producer to overplant his base allotment up to a percentage not to exceed 20 percent with payment of marketing fees of at least 81⁄2 cents per pound be paid to the U.S. Department of Agriculture on the cotton produced on this overplanted acreage. 4. Overplanted acreage shall not count toward farm acreage history. 5. After the first year of operation the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a normal carryover. 6. As domestic consumption and exports increase, the basic allotment holder shall receive a proportionate part of any increased acreage. EXHIBIT 1b RECOMMENDATIONS ADOPTED AT A MEETING OF AMERICAN COTTON PRODUCER ASSOCIATES AT MEMPHIS, TENN., JANUARY 8, 1963 RESOLUTIONS In order to maintain cotton producers' income and make cotton competitive in price in domestic and foreign markets, the ACPA recommends the following: 1. To provide a one-price system through the trade incentive method, by giving the Secretary of Agriculture authority to issue PIK certificates to the last handler of cotton on domestic sales and exports such as he already has for exports. 2. The value of the PIK certificates would be such as to make cotton fully competitive in both domestic and foreign markets. 3. An acreage-price choice at option of individual producers, with national acreage allotment at not less than 17 million acres and an overplanting option of 20 percent for 1963 and recommend to the Secretary that cotton growers' income be maintained at not less than that for 1962 with cotton to go through normal channels of trade.1 4. After the first year of operation the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a reasonable level. 5. Overplanted acreage shall not count toward farm acreage history. 6. Continue to establish the loan coincident with the level of price support prevailing to producers each year. 7. Maintain national marketing quotas and acreage allotment at the highest possible level in keeping with potential markets and reasonable carryover. 8. To provide savings to Government in succeeding years, initiate a steady for potential reduction of loan and subsidies geared to success of program as evidenced by increased consumption and expanded acreage.1 1 The corrections in Resolutions No. 3. and No. 8 indicate the language of these as adopted. Removal of the corrections will indicate the text of the resolutions as distributed after the meeting. Transpositions of "for 1963" represents a serious mistake in editing. EXHIBIT 1c SOUTHWEST FIVE-STATE COTTON GROWERS ASSOCIATION PROGRAM ADOPTED, JANUARY 9, 1963, PHOENIX, ARIZ. 1. To provide a one-price system through the trade incentive method by directing the Secretary of Agriculture to issue payment-in-kind certificates to the last handler of cotton on domestic sales and exports such as he already does for exports. 2. The value of the payment-in-kind certificates would be such as to make cotton fully competitive in both domestic and foreign markets. 3. Starting in 1963, an acreage price choice at option of individual producers with national acreage allotment at not less than 17 million acres and an overplanting option up to 20 percent and recommendation to the Secretary that cottongrowers' income be maintained, with cotton to go through normal channels of trade. 4. After 3 years of operation, the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a reasonable level. 5. (a) A portion of the overplanted acreage shall count toward farm acreage history. 5. (b) No grower shall be eligible for release and reallocation acreage unless he chooses the maximum overplanting option. 6. Continue to establish the loan coincident with the level of price support prevailing to producers each year. 7. Maintain national marketing quotas, acreage allotments, and price supports in keeping with potential markets and reasonable carryover. 8. To provide savings to Government in succeeding years, initiate a study for the potential reduction of loans and subsidies as evidenced by increased consumption and expanded acreage and reduced costs as a result of the research and promotion program instituted by the cotton producers at no cost to the Federal Government through the voluntary producer contributions to the recently founded Cotton Producers' Institute. EXHIBIT 1d A BELTWIDE ACCORD CONCERNING COTTON POLICY AND LEGISLATION GROWER REPRESENTATIVES MEETING, Memphis, Tenn., January 12, 1963 1. To provide a one-price system through the trade incentive method, by directing the Secretary of Agriculture to accomplish this with PIK certificates or other methods to the last handler of cotton on domestic sales and exports such as he already has for exports. 2. The value of the PIK certificates or other methods would be such as to make cotton fully competitive in both domestic and foreign markets. 3. Starting in 1963 an acreage/price choice at option of individual producers with national acreage allotment at not less than 17 million acres and an overplanting option of not less than 20 percent and recommend to the Secretary that cottongrowers income be maintained in keeping with the acreage-price option and with cotton to go through normal channels of trade. 4. After 3 years of operation the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a reasonable level. As expansion in domestic consumption and/or exports justify increased acreage this acreage shall be equitably apportioned between national base allotment and the overplanting option. 5. Continue to establish the loan concident with the level of price support prevailing to producers each year; i.e., price support minus PIK's rather than price support plus PIK's. 6. Maintain national marketing quotas and acreage allotment at the highest possible level in keeping with potential markets and reasonable carryover. 7. To provide savings to Government in succeeding years initiate a study for potential reduction of loans and subsidies geared to success of program as evidenced by increased consumption, expanded acreage, and reduced costs. 8. Continue export program operations under section 203 and Public Law 480 with annual export volumes not less than 6 million bales, increasing proportionately as world consumption increases. EXHIBIT la RECOMMENDATIONS AGREED UPON IN ATLANTA, GA., JANUARY 7, 1963 We, the members of a cottongrowers group which met in Atlanta on January 7, 1963, from the States of Alabama, Georgia, Mississippi, North Carolina, South Carolina, Texas, and Virginia, do hereby agree to the following principles to be used in developing cotton legislation for 1963 and subsequent years and do submit these to the Secretary of Agriculture and the chairmen of the Agriculture Committees of the House and Senate for their careful and valued consideration. 1. Endorsement of a trade incentive payment to the cotton manufacturer with payment of this established as far as possible from the cotton farmer. 2. A base allotment of 16 million acres with the support price not less than in 1962. 3. A provision to permit each producer to overplant his base allotment up to a percentage not to exceed 20 percent with payment of marketing fees of at least 81⁄2 cents per pound be paid to the U.S. Department of Agriculture on the cotton produced on this overplanted acreage. 4. Overplanted acreage shall not count toward farm acreage history. 5. After the first year of operation the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a normal carryover. 6. As domestic consumption and exports increase, the basic allotment holder shall receive a proportionate part of any increased acreage. EXHIBIT 1b RECOMMENDATIONS ADOPTED AT A MEETING OF AMERICAN COTTON PRODUCER ASSOCIATES AT MEMPHIS, TENN., JANUARY 8, 1963 RESOLUTIONS In order to maintain cotton producers' income and make cotton competitive in price in domestic and foreign markets, the ACPA recommends the following: 1. To provide a one-price system through the trade incentive method, by giving the Secretary of Agriculture authority to issue PIK certificates to the last handler of cotton on domestic sales and exports such as he already has for exports. 2. The value of the PIK certificates would be such as to make cotton fully competitive in both domestic and foreign markets. 3. An acreage-price choice at option of individual producers, with national acreage allotment at not less than 17 million acres and an overplanting option of 20 percent for 1963 and recommend to the Secretary that cotton growers' income be maintained at not less than that for 1962 with cotton to go through normal channels of trade.1 4. After the first year of operation the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a reasonable level. 5. Overplanted acreage shall not count toward farm acreage history. 6. Continue to establish the loan coincident with the level of price support prevailing to producers each year. 7. Maintain national marketing quotas and acreage allotment at the highest possible level in keeping with potential markets and reasonable carryover. 8. To provide savings to Government in succeeding years, initiate a steady for potential reduction of loan and subsidies geared to success of program as evidenced by increased consumption and expanded acreage.1 1 The corrections in Resolutions No. 3. and No. 8 indicate the language of these as adopted. Removal of the corrections will indicate the text of the resolutions as distributed after the meeting. Transpositions of "for 1963" represents a serious mistake in editing. EXHIBIT 1c SOUTHWEST FIVE-STATE COTTON GROWERS ASSOCIATION PROGRAM ADOPTED, JANUARY 9, 1963, PHOENIX, ARIZ. 1. To provide a one-price system through the trade incentive method by directing the Secretary of Agriculture to issue payment-in-kind certificates to the last handler of cotton on domestic sales and exports such as he already does for exports. 2. The value of the payment-in-kind certificates would be such as to make cotton fully competitive in both domestic and foreign markets. 3. Starting in 1963, an acreage price choice at option of individual producers with national acreage allotment at not less than 17 million acres and an overplanting option up to 20 percent and recommendation to the Secretary that cottongrowers' income be maintained, with cotton to go through normal channels of trade. 4. After 3 years of operation, the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a reasonable level. 5. (a) A portion of the overplanted acreage shall count toward farm acreage history. 5. (b) No grower shall be eligible for release and reallocation acreage unless he chooses the maximum overplanting option. 6. Continue to establish the loan coincident with the level of price support prevailing to producers each year. 7. Maintain national marketing quotas, acreage allotments, and price supports in keeping with potential markets and reasonable carryover. 8. To provide savings to Government in succeeding years, initiate a study for the potential reduction of loans and subsidies as evidenced by increased consumption and expanded acreage and reduced costs as a result of the research and promotion program instituted by the cotton producers at no cost to the Federal Government through the voluntary producer contributions to the recently founded Cotton Producers' Institute. EXHIBIT 1d A BELTWIDE ACCORD CONCERNING COTTON POLICY AND LEGISLATION GROWER REPRESENTATIVES MEETING, MEMPHIS, TENN., JANUARY 12, 1963 1. To provide a one-price system through the trade incentive method, by directing the Secretary of Agriculture to accomplish this with PIK certificates or other methods to the last handler of cotton on domestic sales and exports such as he already has for exports. 2. The value of the PIK certificates or other methods would be such as to make cotton fully competitive in both domestic and foreign markets. 3. Starting in 1963 an acreage/price choice at option of individual producers with national acreage allotment at not less than 17 million acres and an overplanting option of not less than 20 percent and recommend to the Secretary that cottongrowers income be maintained in keeping with the acreage-price option and with cotton to go through normal channels of trade. 4. After 3 years of operation the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a reasonable level. As expansion in domestic consumption and/or exports justify increased acreage this acreage shall be equitably apportioned between national base allotment and the overplanting option. 5. Continue to establish the loan concident with the level of price support prevailing to producers each year; i.e., price support minus PIK's rather than price support plus PIK's. 6. Maintain national marketing quotas and acreage allotment at the highest possible level in keeping with potential markets and reasonable carryover. 7. To provide savings to Government in succeeding years initiate a study for potential reduction of loans and subsidies geared to success of program as evidenced by increased consumption, expanded acreage, and reduced costs. 8. Continue export program operations under section 203 and Public Law 480 with annual export volumes not less than 6 million bales, increasing proportionately as world consumption increases. EXHIBIT le GENERAL PROVISIONS FOR COTTON LEGISLATION AGREED UPON AT WASHINGTON, JANUARY 14, 1963, BY THE NATIONAL COTTON ADVISORY COMMITTEE Approval of these broad outlines does not preclude disagreement with details drawn under such general provisions, or with the determination made by the Secretary under such provisions: 1. Authorize Secretary of Agriculture to make payments in kind from Government stocks of cotton (or in cash, if cotton is not available) to such persons, other than the producers of cotton, at such rate and subject to such terms and conditions as the Secretary determines will eliminate the inequities sustained by U.S. users of cotton by reason of the present two-price system. 2. Authorize the planting of cotton above the basic acreage allotment for the export market and at the world price. If the producer pays an export fee equal to the difference between the world price and the domestic support price. When this fee is paid, this "export" cotton can move under the regular price-support and marketing system. 3. The "export acreage" not to be in excess of 30 percent of the basic allotment, and for the 1963 crop to be 20 percent of the basic allotment. After 3 years of operation the overplanting privilege shall not be put into effect unless the carryover is being adequately reduced each year toward a reasonable level. As expansion in domestic consumption and/or exports justify increased acreage this acreage shall be equitably apportioned between national base allotment and the overplanting option. 4. The support price for the 1963 crop to be approximately the 1962 level of 32.47 cents per pound, basis M-1, provided budgetary considerations do not preclude the making of a fully significant impact in both domestic and export markets. The cotton producer representatives who labored long and traveled far to accomplish this accord as a result of these conferences believed at the time, and continue to believe, that it represents a reasonable compromise. The trouble arose within the language of H.R. 2495 at the same point it no doubt will arise in the language of S. 608 wherein the Secretary is given latitude to eliminate inequities sustained by domestic users of cotton by taking into account differences in transportation costs and other relevant factors. This language in S. 608 is found beginning on page 1, line 6, through line 9 on page 2. In respect to giving this latitude to the Secretary the president of the American Textile Manufacturers Institute, W. H. Ruffin, said on February 23: The injustice is the 82 cents a pound difference between what American mills and foreign mills pay for U.S. cotton. This injustice cannot be remedied by halfway measures. It will disappear only when the price differential is completely eliminated. Prior to this rigid statement of policy by ATMI the National Cotton Council adopted a similar rigid position at its 1963 meeting that it would: Support action to make U.S. cotton available to American mills at the same price as it is made available to foreign mills under present law. Since this Council has no corresponding rigid position in respect to maintaining the support price to producers at its present level the cotton manufacturers have, and continue to have, strong support for their inflexible position. The unfortunate fact, assuming that the Federal budget cannot stand more than a 4- to 6-cent domestic payment which has been affirmed over and over again by administration spokesmen, is that |