MINIMUM WAGES AND CHILD LABOR Six determinations establishing minimum wages for beet and cane field workers were issued during the year. Two of these concerned the continental sugar beet area, the first one issued being applicable to California, where the season starts early, and the second covering all other beet States. Both of these determinations continued in 1940 the basic wage rates established for the 1939 crop for persons employed in the production, cultivation, or harvesting of beets. The determination for the beet States other than California also established hourly rates in one district for which only piece rates had previously been specified. Two determinations were issued for the mainland sugarcane area, one covering the harvesting of 1939 crop sugarcane between September 1, 1939, and June 30, 1940, and the second providing the rates for the production and cultivation of cane during 1940. These two determinations maintained the same rates established for the previous year and, in addition, were extended to include minimum rates for certain other types of work (such as that performed by teamsters and tractor drivers) for which separate rates had not previously been specified. The Hawaiian wage determination established rates for the production, cultivation, or harvesting of sugarcane during 1940, and in this case, too, the rates were identical with those for 1939. The only wage determination issued for Puerto Rico during the year continued during 1940 the rates established for 1939. These rates are in accord with the terms of the collective agreement between the Association of Sugar Producers of Puerto Rico and the Free Federation of Workingmen of Puerto Rico. A new feature in this determination was a clause providing a bonus system which was to become effective when the average price of sugar was 3 cents or more per pound. The problem of certain growers who had been found to employ child labor, in many cases inadvertently, was dealt with by the passage of an amendment to the child labor provisions of the Sugar Act. The amendment was enacted on June 25, 1940. It provided that conditional payments could be made to these growers after a deduction of $10 for each child for each day or portion of a day during which such child worked on the 1937, 1938, or 1939 crops. FARMING PRACTICES The soil-conserving and soil-improving practices established under the 1940 sugar program for growers in the various sugar-producing areas who wished to receive Federal sugar payments were substantially the same as those for the 1939 program. In the continental beet area the practices included the seeding or maintenance of adapted legumes or grasses, the plowing under of adapted green manure crops, and the application of animal or chemical fertilizers to the soil. The relatively minor changes made for the 1940 California beet crop were designed primarily to promote further the incorporation of organic matter within the soil by growing grasses and legumes, and to discourage farming practices which permit the continuous cropping of land to sugar beets The practices for the mainland cane area were the same as in 1939. They provided that any grower who wished to qualify for a Federal conditional payment was required to have an acreage of the designated practices equal to at least 30 percent of his acreage in sugarcane, and the practices were to be carried out on land adapted to sugarcane production. The approved practices consisted chiefly of seeding or turning under legumes or other crops beneficial to the soil, and each practice had a definite value for soil-building purposes. Hawaiian sugarcane producers who wished to receive Government payments were required to apply specified amounts of plant food, in chemical fertilizer, to each acre of sugarcane. It was also required that the acreage fertilized was to be at least as large as the acreage of the farm on which sugarcane was planted, or a stubble crop of sugarcane was started, at any time during 1940. In Puerto Rico growers were required to apply chemical fertilizer in varying amounts to farms with more than 10 acres of sugarcane. In the case of farms with 10 acres or less of cane, growers instead were permitted to apply the tops and trash cut from sugarcane harvested, or to carry out any of the soil-building practices specified in the 1940 Agricultural Conservation Program bulletin for Puerto Rico. V. SUMMARY In summary, the vast majority of sugar growers in the domestic areas have received approximate-parity returns from the 1939 crop. This makes the sixth year under the sugar program during which parity or near-parity returns were realized. It will be noted, however, that this result has been achieved only through the exercise of extraordinary Federal powers, including a limitation on the sugar marketings of all producing areas supplying the United States, the frequent allotment of the quotas of most domestic areas among the processors in the respective areas, a protective tariff mechanism, and a tax-payment program. CHAPTER 7 FINANCIAL REPORT The expenditures of the Agricultural Adjustment Administration during the fiscal year 1940, ending June 30, 1940, totaled $908,468,472.81. The purposes for which these expenditures were made are shown in the following tabulation: Agricultural conservation payments_ 1940 parity payments--. 1937 cotton price adjustment payments.. Miscellaneous program payments-- County association expense for all programs admin istered by the A. A. A.-- General administrative expenses in Washington, D. C., and the field for all programs administered by the Payments for purchase and diversion of agricultural Total $518, 273, 104, 52 188, 298, 148. 15 47, 255, 298. 54 26, 059, 453. 08 413, 658. 25 25, 203. 23 42, 803, 055. 01 18, 005, 846. 20 67, 335, 105. 83 908, 468, 872. 81 This tabulation includes expenditures applicable to previous-year programs as well as current-year programs under items for conservation program payments, sugar payments, county association expenses, and general administrative expenses. The grand total, $518,273,104.52, (table 28) shown for agricultural conservation payments also includes payments made under the range conservation program, the naval stores program, advances for conservation materials and advances for wheat crop insurance premiums. Advances for conservation materials and crop insurance are deducted from payments earned by producers for their participation in the agricultural conservation programs. The total payment of $188,298,148.15 under the Price Adjustment Act of 1938 (table 29) represents that part of the amount appropriated for 1939 price adjustment payments under the Price Adjustment Act of 1938 which was paid to producers during the fiscal year 1940. Payments under the Sugar Act of 1937 of $47,255,298.54 (table 29) represent $32,920,000.48 paid under the 1939 sugar program and $14,335,298.06 applicable to the 1938 and previous programs. The payment of $26,059,453.08 (table 29) represents that part of the 1940 parity payment program appropriation which had been expended as of June 30, 1940. The total expenditures by States are shown in table 30. The tables follow: 101 |