The United States is divided into 12 farm credit districts. In each district are four major credit units located in one central office. These are:

1. A Federal land bank which makes long-term mortgage loans through local cooperatives known as national farm loan associations. About 1,000 association offices serve all parts of the Nation.

2. A production credit corporation which supervises local cooperatives known as production credit associations. There are more than 500 production credit associations located at convenient points throughout the United States.

3. A district bank for cooperatives which makes loans to farmers' marketing, purchasing, and business service cooperatives.

4. A Federal intermediate credit bank which acts as a bank of discount in supplying short-term funds required by production credit associations, bank for cooperatives, other financial institutions making loans to farmers, and farmers' cooperatives.

Each unit of the Farm Credit Administration serves a distinct purpose. The local associations make and service loans; the district institutions supervise and provide funds and, in the case of the bank for cooperatives, make loans; and the headquarters office supervises and coordinates the work of the entire system. A central bank for cooperatives makes loans to large regional or national cooperatives and assists district banks for cooperatives in handling large loans. The Cooperative Research and Service Division of the Farm Credit Administration conducts research studies and service activities relating to problems of farmers' cooperatives.

Some additional functions are performed by the Farm Credit Administration. These include the limited financing program of the Regional Agricultural Credit Corporation of Washington, D. C., and the liquidation of the joint stock land banks.

FARMERS HOME ADMINISTRATION

The Farmers Home Administration provides small farmers with credit to improve farming operations or to become owners, and supplements its loans with individual guidance in farm and home management when necessary. It was established in 1946 through a merger of functions of two former agencies-the Farm Security Administration and the Emergency Crop and Feed Loan Division of the Farm Credit Administration. (Public Law 731, 79th Cong.)

For farmers who cannot obtain the credit they need, at interest not exceeding 5 percent, from banks, cooperative lending agencies or other sources in their communities, the following types of financial assistance are authorized: Operating loans for buying livestock, seed, feed, fertilizer, farm equipment, supplies and other farm needs, for refinancing chattel indebtedness, and for family subsistence; 40-year farm ownership loans to buy, improve or enlarge family-type farms; and mortgage insurance for loans advanced by private lenders for the same purposes as direct farm-ownership loans. Loans are also made in the 17 Western States for water facilities. Veterans have preference for real-estate loans, and disabled veterans may obtain loans for farms smaller than economic family-type units if earned farm income plus disability benefits will provide adequate family living while repaying the loan.

FEDERAL CROP INSURANCE CORPORATION

The Federal Crop Insurance Corporation was created as an agency within the Department of Agriculture under title V of the Agricultural Adjustment Act of 1938, cited as the Federal Crop Insurance Act, approved February 16, 1938. This act provided for the insurance of wheat crops and was amended June 21, 1941, to extend insurance protection to cotton crops. The 1944 agricultural appropriation acts provided that funds appropriated for the Corporation could be used for no other purpose than to liquidate existing contracts. The act was further amended December 23, 1944, to authorize the Corporation to offer crop insurance on wheat, cotton, and flax crops on a national basis beginning in 1945. The amendment also authorized trial insurance on corn and tobacco in 1945 and other crops in subsequent years in not to exceed 20 representative counties for each crop. The act was further amended August 1, 1947, to establish a maximum number of counties in which crop insurance on each commodity could be offered on 1948 and subsequent crops. These maximums are 200 counties for wheat, 56 for cotton, 50 for flax, 50 for corn, 35 for tobacco, and 20 for new trial programs. The Corporation is now authorized to provide insurance protection against crop losses due to unavoidable hazards. The protection may not exceed 75 percent of the average yield established for the farm or the general level of the invest

ment in the crop in the area. The Corporation may try any plans of insurance which the Board of Directors determines to be adapted to the commodity and may reinsure in 20 counties private insurance companies offering plans approved by the Board of Directors. The cash-equivalent price for premiums and indemnities may be fixed by the Secretary of Agriculture. The Board of Directors is to be composed of three Department representatives, including the Manager of the Corporation, and two members from outside Government experienced in the insurance business.

Premiums sufficient to pay indemnities and to establish a reserve for unforeseen losses are to be collected from the insured growers. To assure payment of indemnities during years of adverse insurance experience, the Corporation was provided in the orginal act with an authorized capital stock of $100,000,000 to be subscribed by the United States of America, which has been subscribed and paid in by the Secretary of the Treasury. The costs of administration are paid by direct annual appropriations.

FOREST SERVICE

Congress has designated the Forest Service as the agency of the Federal Government specifically responsible for protecting, developing, and administering certain public lands and their living resources. The job of the Forest Service also has to do with forest land in private ownership, for Congress has authorized it to help States and farm, industrial, and other owners to protect and develop such of their lands as are more valuable in forest growth than as plowland or pasture.

Broadly, responsibilities of the Forest Service are: (1) To initiate and, in cooperation with the States and with private owners, conduct programs looking to the protection, improvement, and sound management of forests in State and private ownership; (2) to protect, develop, and administer in the public interest the national-forest system and its resources, products, values, and services; (3) to conduct research in problems involving protection, development, management, renewal, and continuous use of all resources, products, values, and services of forest lands; (4) to make research and administrative findings and results available to individuals, industries, and public and private agencies generally. The national-forest system comprises 180,069,994 acres of Government land. On these public properties forestry methods are applied in growing and harvesting timber. Grazing by livestock and big game is scientifically regulated. Sustained and, where possible, increased yields of timber, forage, and wildlife are obtained. Watersheds are managed to safeguard the supply of water for domestic, agricultural, and industrial purposes. Simple, democratic, and inexpensive forms of recreation are encouraged. Provision is also made for other forms of land and

resource use.

In research, in national-forest administration, and in cooperation with States and private timberland owners, the Forest Service works in close cooperation with other branches and bureaus of the Department; its policy is guided by the Department's basic purpose of building and maintaining communities and promoting social and economic welfare locally and nationally.

PRODUCTION AND MARKETING ADMINISTRATION

The Production and Marketing Administration, established within the Department of Agriculture by Secretary's Memorandum No. 1118 of August 18, 1945, is headed by an Administrator who is also President of Commodity Credit Corporation. The three functional areas of production, Commodity Credit Corporation programs, and marketing, and PMA activities within those areas are under the direction of and coordinated by assistant administrators who are Vice Presidents of CCC. The Production and Marketing Administration branches and field offices provide the facilities for this functional coordination.

Under the general direction of the Administrator, responsibility for providing technical guidance and assistance in the formulation and administration of policies, programs, and procedures assigned to the Administration is vested in the Commodity Credit Corporation, State and county offices and committees, and staff, functional, and commodity branches, as follows:

COMMODITY CREDIT CORPORATION

The Commodity Credit Corporation, which was created as an agency of the United States in 1933 pursuant to the National Industrial Recovery Act and Executive Order 6340, is the financial agency whose services are used in carrying

out lending, buying, selling, storage, transportation, subsidy, and price support activities of the Department of Agriculture with respect to agricultural commodities and foods. Loans are made available to producers of basic commoditiescotton, corn, wheat, tobacco, rice, and peanuts-under the Agricultural Adjustment Act of 1938, as amended and supplemented, and prices of certain other nonbasic commodities are supported under authority of the Act of July 1, 1941, as amended, and the charter powers of the Corporation. The Corporation buys, stores, and ships agricultural commodities and foods to meet the needs of foreign supply programs. It has an authorized paid-in capital of $100,000,000 and is authorized by the Act of March 8, 1938, as amended, to borrow not exceeding $4,750,000,000 at any one time on the credit of the United States. Working within the framework of the Production and Marketing Administration, the Commodity Credit Corporation has field offices in nine key cities that are responsible for execution of CCC programs, coordinating the work of the CCC field office with the complementary work of the Production and Marketing Administration, State and county committees, and the field offices of the PMA branches, establishing and maintaining working liaison with banks, warehousemen, vendors, carriers, and others participating in CCC programs, and rendering fiscal and accounting services for the field offices of PMA branches.

STATE AND COUNTY OFFICES AND COMMITTEES

Production and Marketing Administration State Offices and Committees assist in the formulation of policies and programs and are responsible for carrying out in the field certain programs requiring farmer participation, including: The agricultural conservation and adjustment program, farm marketing quotas, price support operations (as assigned), commodity loans, Sugar Act payments, and other programs of PMA which require direct dealings with farmers. They determine the production and marketing needs of the State, make recommendations as a basis for formulating and modifying policies, programs, and procedures; adapt programs to State needs; assist, as directed, in coordinating all PMA programs within the State; and work with State and local officials, other Federal agencies, farm organizations, farmers, the food processing industry, and the food trade in regard to assigned PMA programs and policies and their local implications, and provide information with respect thereto.

AUDIT BRANCH

Formulates the audit policies and directs the audit and examining activities of the Production and Marketing Administration, its agents and others financed with PMA funds, including preparation of reports and recommendations of its findings; and conducts cost analyses of commercial organizations or individuals contracting with PMA to provide financial data for use in renegotiation or termination of contracts.

BUDGET AND MANAGEMENT BRANCH

In collaboration with other Production and Marketing Administration officials this branch is responsible for the formulation of plans and policies covering all phases of administration and management, and provides the office of the Administrator and operating units of PMA in Washington and the field with the necessary administrative management assistance, including budget, personnel, administrative services, and organization and management analysis.

COMPLIANCE AND INVESTIGATION BRANCH

Investigates violations involving procurement, sales, price support, school lunch, surplus property disposal, agricultural adjustment and conservation, regulatory, and food order programs of PMA; conducts accounting investigations, and installs and services accounting systems for market administrators and others as required; and analyzes vendor's cost and profit data.

INFORMATION BRANCH

Prepares and issues current releases, background statements, and other informational material; plans and conducts informational programs on PMA activities; collaborates on issuance of technical and popular publications and plans and issues periodical publications regarding activities of PMA; arranges necessary radio coverage on PMA activities; and plans visual information work.

AGRICULTURAL CONSERVATION PROGRAMS BRANCH

This branch formulates and executes agricultural conservation programs concerned with all measures essential to the prevention of erosion and the maintenance and restoration of productivity of crop lands, pastures, and ranges as provided for in sections 7 to 17 of the Soil Conservation and Domestic Allotment Act and the Agricultural Adjustment Act of 1938 as amended and supplemented, based on recommendations and determinations of the PMA State Committees.

FISCAL BRANCH

Formulates policy and procedures with respect to the fiscal and related activities of PMA, CCC, its agents, and others financed with Administration funds; maintains control accounts and records, and prepares fiscal reports on financial operations; maintains detailed accounts and records of administrative and program operations of PMA and CCC as assigned; acts as Treasurer of CCC, and performs such duties as prescribed by the President, CCC.

FOOD DISTRIBUTION PROGRAMS BRANCH

Plans and directs operations under the National School Lunch Act and of the direct distribution, food preservation, and marketing programs for abundant and surplus foods; and coordinates efforts of national, State, and local officials in the improvement of nutritional standards and food habits.

MARKETING FACILITIES BRANCH

Administers the United States Warehouse Act and section 201 of the Agricultural Adjustment Act of 1938 involving adjustments in freight rates and services for farm products; plans for the conservation and more efficient use of transportation equipment; recommends methods of dealing with shortages of transportation equipment; plans and assists in improving marketing facilities and methods of physical handling of food products; and issues cold storage reports.

MARKETING RESEARCH BRANCH

This branch conducts research which cuts across commodity lines, including transportation methods and development of new techniques and equipment, packing, packaging, and processing, wholesale and retail market and distribution practices; assists the Assistant Administrator for Marketing in marketing research coordination and program development and review and in serving as PMA liaison on marketing research.

PRICE SUPPORT AND FOREIGN SUPPLY BRANCH

Coordinates the development, operation, and review of Commodity Credit Corporation programs, policies, and procedures, including foreign supply programs; provides specialized economic advice and assistance on PMA and CCC policies and programs; establishes and maintains liaison with other agencies and claimants on supply program matters; and collaborates with other PMA branches and claimants to insure fulfillment of contractual and fiscal arrangements.

SHIPPING AND STORAGE BRANCH

Develops and executes, or directs the execution of a comprehensive program for shipping, storing, and delivering agricultural commodities and foods in accordance with export and domestic delivery programs; develops, recommends, and oversees the application for policies for handling shipping and storage of agricultural commodities, including contractual matters, claims determinations on losses resulting from shipping and storage, inventory management, and commodity care, and serves as liaison with Federal agencies, associations of carriers and warehousemen, and other groups on transportation and warehousing matters.

COMMODITY BRANCHES

Cotton Branch, Dairy Branch, Fats and Oils Branch, Fruit and Vegetable Branch, Grain Branch, Livestock Branch, Poultry Branch, Sugar Branch, Tobacco Branch.

Each of the commodity branches has, with respect to the commodities over which it has jurisdiction, responsibility as assigned for (1) formulating programs,

policies, procedures and modifications thereof, for final action by the Administrator in connection with production, adjustment, marketing, loan, purchase, subsidy, diversion, export, import, price support, farm marketing quotas, processing, distribution and other programs assigned to the Production and Marketing Administration; (2) conducting marketing research, investigations, and development work including activities assigned under the Research and Marketing Act of 1946 and other statutes, to effect improvements in handling, packaging, standardization, processing, inspection, and the development of new products, processes, and uses; (3) conducting inspection, grading, market news and other programs to effect improvements in marketing of farm products; (4) administering regulatory and marketing service acts, including marketing agreement and order programs; and (5) formulating supply estimates and allocation recommendations.

RURAL ELECTRIFICATION ADMINISTRATION

The Rural Electrification Administration administers a program, established by the Rural Electrification Act of 1936, of providing central station electric service for farms, residences, and other establishments in rural areas that are without such service. As the principal means of accomplishing this, Rural Electrification Administration makes loans on a self-liquidating basis to local groups, public bodies, and utilities organized under State laws, with preference accorded to farmers' cooperatives and other nonprofit organizations, to finance the construction and operation of rural power systems. These loans are made on a maximum 35-year amortization basis for financing electrical facilities. Supplementary loans also are made to system borrowers for relending to consumers to finance the wiring of premises and acquisition of certain electrical equipment. In the execution of this program, Rural Electrification Administration renders assistance to borrowers in the organization of cooperatives and on problems involved in the design, construction, and operation of their systems in order to achieve maximum efficiency in providing adequate electric service to their communities at a reasonable cost and protect the Government funds which are secured by mortgages on the facilities. Borrowers are assisted in extending electric service to farms and other rural establishments and in helping consumers obtain maximum benefits of electricity on the farm and in the home. In connection with these activities the Rural Electrification Administration makes studies and disseminates information concerning the progress of rural electrification.

Though the Administration does not maintain field offices, it has a field staff of engineers, auditors, and other specialists to assist borrowers on problems involved in construction, engineering, and operation of their systems.

The Rural Electrification Administration was created by Executive Order No. 7037 on May 11, 1935, as an independent agency under the Emergency Relief Appropriation Act of that year. The Rural Electrification Act of 1936, approved May 20, 1936, established the present agency and made provision for a 10-year program for rural electrification loans. Under Reorganization Plan No. II the Administration became a part of the Department of Agriculture in July 1939. The Department of Agriculture Organic Act of 1944 removed the time limitation from the lending program and liberalized the loan terms.

SOIL CONSERVATION SERVICE

The Soil Conservation Service was established by the Soil Conservation Act of 1935 as a permanent agency to combat the wastage of soil and moisture resources on the farm and grazing lands of the Nation, resulting from soil erosion. Thus, the basic purpose of the Service is to aid in bringing about physical adjustments in proper land use that will better human welfare, conserve natural resources, establish a permanent and balanced agriculture, and reduce the hazards of floods, drought, and sedimentation. Work toward this objective is carried on through a coordinated program of soil and water conservation and land use. This program involves the conservation planning of individual farms and ranches, the development of group facilities for the use and disposal of water as it affects the land, and work with soil conservation districts. It also involves research and investigations into the causes and remedies of soil erosion.

Primarily, the Soil Conservation Service furnishes technical assistance to farmers and ranchers through soil conservation districts, upon the request of the districts. These districts are local units of State government, organized and managed under State law, by landowners and operators. The technical assistance is given to help landowners and operators in districts treat each acre according to its needs and use each acre according to its individual capabilities. The com