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DEPARTMENT OF AGRICULTURE
BEFORE & STIIMCI
SUBCOMMITTEE ON DEPARTMENT OF AGRICULTURE AND RELATED
JAMIE L. WHITTEN, Mississippi, Chairman
H. CARL ANDERSEN, Minnesota
WALT HORAN, Washington
ROBERT H. MICHEL, Illinois
Printed for the use of the Committee on Appropriations
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1962
COMMITTEE ON APPROPRIATIONS
CLARENCE CANNON, Missouri, Chairman GEORGE H. MAHON, Texas
JOHN TABER, New York HARRY R. SHEPPARD, California
BEN F. JENSEN, Iowa ALBERT THOMAS, Texas
H. CARL ANDERSEN, Minnesota MICHAEL J. KIRWAN, Ohio
WALT HORAN, Washington JAMIE L. WHITTEN, Mississippi
IVOR D, FENTON, Pennsylvania GEORGE W. ANDREWS, Alabama
GERALD R. FORD, JR., Michigan JOHN J. ROONEY, New York
HAROLD C. OSTERTAG, New York J. VAUGHAN GARY, Virginia
FRANK T. BOW, Ohio JOHN E. FOGARTY, Rhode Island
CHARLES RAPER JONAS, North Carolina ROBERT L. F. SIKES, Florida
MELVIN R. LAIRD, Wisconsin OTTO E, PASSMAN, Louisiana
ELFORD A. CEDERBERG, Michigan SIDNEY R. YATES, Illinois
GLENARD P. LIPSCOMB, California FRED MARSHALL, Minnesota
JOHN J. RHODES, Arizona JOE L. EVINS, Tennessee
JOHN R. PILLION, New York JOHN F. SHELLEY, California
PHIL WEAVER, Nebraska EDWARD P. BOLAND, Massachusetts
WILLIAM E. MINSHALL, Ohio DON MAGNUSON, Washington
ROBERT H. MICHEL, Illinois WILLIAM H. NATCHER, Kentucky
SILVIO O. CONTE, Massachusetts DANIEL J. FLOOD, Pennsylvania
WILLIAM H. MILLIKEN, JR., Pennsylvania WIN FIELD K. DENTON, Indiana
EARL WILSON, Indiana
KENNETH SPRANKLE, Clerk and Staff Director
DEPARTMENT OF AGRICULTURE APPROPRIATIONS
AGRICULTURAL STABILIZATION AND CONSERVATION
MONDAY, JUNE 25, 1962.
WITNESSES HORACE D. GODFREY, ADMINISTRATOR, AGRICULTURAL STABI
LIZATION AND CONSERVATION SERVICE RAPHAEL V. FITZGERALD, ACTING DEPUTY ADMINISTRATOR, STATE AND COUNTY OPERATIONS, AGRICULTURAL STABILIZA
TION AND CONSERVATION SERVICE ROBERT G. LEWIS, DEPUTY ADMINISTRATOR, PRICE AND PRO
DUCTION, ASCS CARL A. LARSON, DEPUTY ADMINISTRATOR, CONSERVATION,
ASCS ROBERT P. BEACH, DEPUTY ADMINISTRATOR, MANAGEMENT
ASCS ROLAND F. BALLOU, ASSISTANT DEPUTY ADMINISTRATOR, COM
MODITY OPERATIONS, ASCS CHARLES M. COX, ASSISTANT DEPUTY ADMINISTRATOR, STATE
AND COUNTY OPERATIONS, ASCS FRED G. RITCHIE, ASSISTANT DEPUTY ADMINISTRATOR, CON
SERVATION, ASCS THOMAS S. THORNBURG, DEPUTY DIRECTOR, BUDGET DIVISION,
ASCS ANDREW J. NEMSHICK, DEPUTY DIRECTOR, BUDGET DIVISION,
ASCS CHARLES L. GRANT, DIRECTOR OF FINANCE AND BUDGET OFFICER, DEPARTMENT OF AGRICULTURE
Mr. WHITTEN. Gentlemen, the committee will come to order, and we will continue with the hearings on the appropriations for Agriculture.
We turn now to the Agricultural Stabilization and Conservation Service and in that connection we would like pages 226 through 231 of volume 3 in the record at this point.
(The material requested follows:
AGRICUI TIWAL STABILIZATION AND C. ERVATION SERVICE
PURPOSE STATEMEN The Agricultural Stabilization and Conservation Service was established by the Secretary of Agriculture on June 5, 1961, under the authority of Reorganization Plan No. 2 of 1953, in accordance with the Reorganization Act of 1949, as
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amended (5 U.S.C. 133Z). The Service carries on the following principal programs: 1. Acreage allotments and marketing quotas
The Agricultural Adjustment Act of 1938, as amended, authorizes production adjustment for designated basic commodities (tobacco, peanuts, wheat, cotton, and rice) through acreage allotments, and the adjustments of supplies through marketing quotas when supplies réach specified levels in relation to normal demand.
In addition to its regular programs, ASCS is responsible for part of the continuing activities of the Department in the area of defense preparedness measures relating to food and the domestic distribution of farm equipment and supplies. 2. Sugar Act program
The chief objective set forth in the Sugar Act of 1948, as amended, is “to protect the welfare of consumers of sugars and those engaged in the domestic sugarproducing industry.” This involves (a) determination of U.S. consumption requirements; (b) administration of quotas to regulate imports of sugar produced in foreign areas, as well as marketing of sugar produced in domestic areas; and (c) payments to domestic producers of sugarbeets and sugarcane, provided producers comply with certain labor, wage, price, and marketing requirements prescribed by law.
The Service also carries out the U.S. responsibilities under the International Sugar Agreement which is designed to contribute to stabilization of the world sugar economy. 3. Agricultural conservation program
This program is authorized by the provisions of sections 7 to 16(a), inclusive, and section 17 of the Soil Conservation and Domestic Allotment Act, as amended. Its objectives include (1) restoring and improving soil fertility, (2) reducing erosion caused by wind and water, and (3) conserving water on land. Cost-sharing assistance is furnished to individual farmers and ranchers in the 50 States, Puerto Rico, and the Virgin Islands for carrying out approved soil-building and soil- and water-conserving practices on their farms. This assistance represents only a part of the cost of performing the practice. The farmer bears the balance of the cost and in addition supplies labor and management necessary to carry out the practice. Allocations are made to States based upon conservation needs. 4. Emergency conservation measures
The objective of this program, which is authorized by the Third Supplemental Appropriation Act of 1957 and the Supplemental Appropriation Acts of 1958 and 1959, is to restore to normal agricultural use farmlands which have been damaged by wind erosion, hurricanes, floods, or other natural disasters. To this end, farmers are offered cost-sharing assistance for carrying out approved practices. Assistance is given only when new conservation problems are created which
(a) If not treated will impair or endanger the land.
(c) Represent damage which is unusual in character and except for wind erosion, is not the type which would recur frequently in the same area.
(d) Will be so costly to rehabilitate that Federal assistance is or will be
required to return the land to productive agricultural use. 5. Conservation reserve program
The conservation reserve program authorized by the Soil Bank Act is a longrange program under which farmers have voluntarily contracted to take cropland out of production for a specified number of years and devote it to conservation uses. In return the farmer receives (a) an annual rental payment for the contract period, and (6) assistance in either cash or conservation materials and services for carrying out approved conservation practices on the reserved acreage. Farmers are required to apply approved conservation practices to the reserve acreage which include establishing grasses, legumes, or trees, or to devote it to soil-waterforest or wildlife conservation practices. They may not harvest a crop from the reserved acres or graze them, except when authorized in emergencies. No new contracts have been authorized under this program since 1960, and the program is in liquidation.
Special agricultural conservation and adjustment programs blic Law 87-5 authorized a special agricultural conservation program for 61 crop of corn and grain sorghums. The Agricultural Act of 1961 continues the program for 1962 and broadens it to include barley. In addition, the act provides a special program for the 1962 crop of wheat. The chief objectives of these programs are to (1) increase farm income, (2) prevent further buildup of surplus stocks and, if possible, to reduce such stocks, and (3) reduce program costs of price support activities. 7. Marketing agreements and orders
Funds appropriated under the act of August 24, 1935 (sec, 32), are allotted by the Secretary to ASCS for marketing agreements and orders assigned to the agency, and for development of new orders under title I of the Agricultural Act of 1961. 8. Commodity Credit Corporation program activities
Various price support and related programs have been authorized in numerous legislative enactments since the early 1930's. Operations under these programs are financed through the Commodity Credit Corporation. Personnel and facilities of the Agricultural Stabilization and Conservation Service are utilized in the administration of programs of the Commodity Credit Corporation, and the Administrator of the Service is also Exécutive Vice President of the Corporation.
Additional information on the price support and related activities of the Commodity Credit Corporation will be found in another section of these explanatory notes. 9. Special export programs (foreign assistance) and other special activities
Various surplus disposal programs and other special activities are conducted pursuant to specific statutory authorizations and directives. These laws authorize the use of CCC funds and facilities to implement the programs. Appropriations for these programs are transferred or paid to the Corporation for its costs incurred in connection with the following major activities:
(a) Special export programs (foreign assistance) (1) Public Law 480:
(a) Sales of surplus agricultural commodities for foreign currencies (title I);
(b) Commodities disposed of for emergency famine relief to friendly peoples (title II);
(c) Long-term supply contracts (title IV). (2) International Wheat Agreement. (3) Bartered materials for supplemental stockpile. (6) Other special activities (1) Reimbursement for costs of National Wool Act (permanent appropriation). (2) Grain for migratory waterfowl. (3) Surplus grain for game birds. (4) Transfer of long-staple cotton from national stockpile for sale by CCC.
(5) Loans to Secretary of Agriculture for conservation purposes. 10. Work performed for others
The Agricultural Stabilization and Conservation Service performs certain services for other Federal agencies on an advance or reimbursable payment basis. These consist primarily of the following:
(a) Great plains conservation program.-The Service assists the Soil Conservation Service in the development and application of policies relating to conservation measures and cost-share rates, including practices or changes in practices for use in the various States, and works with the Soil Conservation Service in correlating the agricultural conservation program and the Great Plains conservation program practices and procedures.
(6) Removal of surplus agricultural commodities, and school lunch program.Pursuant to an annual agreement with the Agricultural Marketing Service, funds are received for carrying out purchase and diversion programs authorized under section 32 of the act of August 24, 1935, and for the procurement of commodities for distribution to schools for utilization in the school lunch program.
(c) Aerial photographs.-The Service enters into cooperative agreements with State and local public agencies for the procurement cf aerial photographs. Copies of all photographs, made primarily for use in conservation and production adjustment programs, are available for sale to the public.
(d) Agency for International Development.—The Service procures or provides commodities for distribution abroad, at the request of the Agency for International Development.
The Agricultural Stabilization and Conservation Service carries on its programs in the field through (a) seven commodity offices and a data processing center