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Statement of —

Page

Anderson, Clinton P., Hon., Secretary of Agriculture, U. S. Depart-

ment of Agriculture, Washington, D. C.--

Benson, R. W., president, Robertson County Farm Bureau, Spring-

field, Tenn..

Berman, Abraham H., assistant secretary, Consolidated Cigar Corp.,

New York, N. Y..

312

Berry, John M., vice president, Burley Tobacco Growers Cooperative
Association, New Castle, Ky-

394
Black, John, Dr., professor of economics, Harvard University, Cam-
bridge, Mass.

199
Blalock, H. G., vice president, Virginia State Farm Bureau, South
Hill, Va.

427
Bourne, T. Earle, president, Schindler's Peanut Products, Inc., and

secretary, Peanut and Nut Salters Association, Washington, D. C.. 295
Chapman, Virgil, Hon., a Representative in Congress from the State
of Kentucky-

424
Clay, William C., Jr., counsel for Burley Auction Warehouse Associa-
tion, Mount Sterling, Ky-.

407
Collins, Charles A., Moorestown, N. J..

322
Cooper, John Sherman, Hon., a United States Senator from the State
of Kentucky-

392, 441

Davis, John H., executive secretary, National Council of Farmer

Cooperatives, Washington, D. C.----

89

Duryee, William B., Potato Industry Committee of New Jersey,
Allentown, NJ

329

Embree, Lisle B., Red Oak, Iowa.

367

Fawcett, C. J., general manager, National Wool Marketing Corpora-

tion, Boston, Mass..

305

Fette, William, Jr., vice president, Schutter Candy Co., and chairman,

peanut committee, National Confectioners' Association, Chicago,

Ill.

261

Fischer, William H., division manager, Jewett & Sherman Co., and

president, Peanut Butter Manufacturers' Association, Milwaukee,

Wis.

276

Friley, Charles E., Dr., president, Iowa State College of Agriculture
and Mechanic Arts, Ames, Iowa..

359

Gibbons, William J., Rev., S. J., board of directors, National Catholic

Rural Life Conference, New York, N. Y..

298

Gilmer, Turner, president, Virginia Burley Tobacco Association,

Lebanon, Va---

437

Graw, LaMonte, manager, Florida Growers Association, Orlando, Fla- 448

Gore, Albert, Hon. a Representative in Congress from the State of

Tennessee-

440

Hall, T. B., general manager, Virginia Dark-Fired Tobacco Associa-
tion, Farmville, Va.

429
Goss, Albert S., Master, The National Grange, Washington, D.C.. 135
Halvorson, Lloyd C., Dr., economist, the National Grange, Washing-
ton, D.C.

431

Herold, Leo C., Fort Atkinson, Iowa --

371

Hicks, Carl T., president, Flue-Cured Tobacco Stabilization Corp.,

Inc., Raleigh, N. C.--

401

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Statement of_Continued

Page Holman, Charles W., secretary, National Cooperative Milk Producers Federation, Washington, D. C.-

167 Hussey, Fr nk W., president,. Maine Potato Growers, Inc., Presque Isle, Maine.

192 Jones, J. M., secretary, National Wool Growers Association, Salt Lake City, Utah..

228 Kline, Allan B., president, American Farm Bureau Federation, Chicago, Ill.-

61 Leavitt, Kent, president, National Association of Soil Conservation Districts, Millbrook, N. Y.

332, 341 Love, Harry W.. executive director, Tobacco Division, Farm Federation Cooperatives, Asheville, N. C.

438 Maloney, C. W., State senator, and president, Stemming District Tobacco Association, Madisonville, Ky

438 Patton, James G., president, National Farmers' Union, Denver, Colo. 111 Porter, J. Frank, president, Tennessee Burley Tobacco Growers Association, Columbia, Tenn.

424 Proctor, R. H., assistant executive secretary, Kentucky Farm Bureau, Louisville, Ky

427 Regensburg, Edward J., president, E. Regensburg & Sons, and presi

dent, Cigar Manufacturing Association of America, New York,
N. Y

312 Roose, Joe, Allison, Iowa.

373 Rosefield, J. L., president, Rosefield Packing Co., and chairman, legislative committee, Peanut Butter Manufacturer's Association and Edible Peanut End Uses, Alameda, Calif-

284 , , Henderson, N. Č.

405 Rudolph, Paul, manager Eastern Dark-Fired Tobacco Growers Association, Springfield, Tenn.

421 Shaw, R. Flake, executive vice president, North Carolina State Farm Bureau, Greensboro, N. C.

425 Smith, Favor R., president, Empire State Potato Club, and executive

secretary, Long Island Agricultural Council, Riverhead, N. Y.. 243 Smith, Russell, legislative secretary, National Farmers Union, Washington, D. C.

111 Taylor, Frank W., secretary-manager, Northwest Horticultural Council, Wenatchee, Wash..

247 Veal, L. L., manager, Western Dark-Fired Tobacco Growers Association, Murray, Ky

437 Wagenen, Alfred Van, acting managing director, Northeastern Poultry Producers Council, Trenton, N. J-

364 Wells, Leslie. T., president, Suffolk County Farm and Home Bureau and 4-H Club Association, Riverhead, N. Y.

187 Wells, O. V., Chief, Bureau of Agricultural Economics, United States Department of Agriculture, Washington, D. C--

15, 80 Wilken, Carl H., economic analyst, Raw Materials National Council, Sious City, Iowa.

375 Wilson, J. B., legislative chairman, National Wool Growers Association, Washington, D. C...

228

AGRICULTURAL ACT OF 1948

MONDAY, APRIL 12, 1948

UNITED STATES SENATE,
COMMITTEE ON AGRICULTURE AND FORESTRY,

Washington, D. C. The committee met, pursuant to call, at 10 a. m., in room 324, Senate Office Building, Senator Arthur Capper, chairman, presiding.

Present: Senators Capper, Aiken, Bushfield, Wilson, Young, Kem, Thomas, Ellender, and Lucas.

The CHAIRMAN. The committee will come to order.

The committee this morning is starting hearings on Senate bill 2318, which is a bill to provide for a coordinated agricultural program.

The bill has been developed by Senator Aiken and half a dozen of our members who have given a great deal of attention to it and I think there is every indication that we have something worth while.

A copy of the bill will be placed in the record at this point. (The bill under consideration, S. 2318, is as follows:)

[S. 2318, 80th Cong., 2d sess.) A BILL To provide for a coordinated agricultural program Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Agricultural Act of 1948”.

DECLARATION OF POLICY

Sec. 2. It is hereby recognized that a sound national economy requires that each segment of the population be maintained as an efficient producer and a constant consumer of goods and services, and it is hereby declared to be the policy of Congress to provide for a coordinated program, to be administered by the Secretary of Agriculture in cooperation with agencies in the several States, and designed

(1) to assume an abundant production of all agricultural products necessary for the improved nutrition and clothing of all our people;

(2) to develop a means of supporting agricultural income on a flexible basis relative to prices and production so as to foster desirable shifts in agricultural production and aid in stabilizing the national economy;

(3) to improve methods of marketing, facilitate distribution, and increase utilization of agricultural commodities in both domestic and foreign markets;

(4) to regulate interstate and foreign commerce in cotton, wheat, corn, tobacco, rice, peanuts, and wool to the extent necessary to provide an orderly, adequate, and balanced flow of such commodities in interstate and foreign trade through price support, marketing quotas, diversion to various economic uses, and other means;

(5) to assist consumers in obtaining adequate and steady supplies of high-quality farm products at fair and equitable prices;

(6) to assist low-income families and school children in maintaining an adequate diet, particularly in periods of underconsumption and unemployment;

(7) to obtain full cooperation and coordinated action of farm operators in conserving, restoring, and developing our soil, water, and forest resources;

(8) to provide more adequately for the coordination and expansion of Federal and State soil surveys and other investigations, experimentation, and research pertaining to the conservation, restoration, and development of our natural agricultural resources, and for the publication of the results of such studies;

(9) to assure that incentive payments to farmers in each State for soilconservation practices shall be made only for practices approved jointly by the State agricultural council (hereinafter provided for) and the Secretary of the United States Department of Agriculture;

(10) to provide for the fullest development and the most efficient employment of rural human resources ;

(11) to provide more fully for adult education through cooperative agricultural extension work as the recognized educational and demonstrational medium for reaching farm people and others in regard to agricultural information, policies, and programs;

(12) to provide for the full development of personal initiative and local responsibility in the development and administration of programs for the maintenance of a progressive agriculture;

(13) to provide for the adaption of agricultural programs to the different and changing needs of regional and local communities;

(14) to make more effective the various research activities sponsored by the United States Department of Agriculture by providing for the separate administration of action programs and research work;

(15) to facilitate farm home ownership by farm operators through improving and safeguarding the federally sponsored credit services available to farm operators;

(16) to encourage producers, processors, distributors, and consumers to enter into marketing agreements for the supplying of adequate quantities of selected farm products at a reasonable and assured price; and

(17) to accumulate certain revenues for judicious use in the sur of prices of highly perishable products, including fresh fruits, vegetables, milk, and eggs, in facilitating distribution for diet improvement of low-income families and school children, and in stimulating improved nutrition.

TITLE I-REORGANIZATION

DECENTRALIZATION OF FUNCTIONS

SEC. 101. The Secretary of Agriculture (hereinafter called the “Secretary") shall establish an agency, to be known as the “Bureau of Agricultural Conservation and Improvement”, to exercise all functions of the Secretary and of the various bureaus and agencies within the Department of Agriculture which (1), prior to the enactment of this Act, were assigned to the Soil Conservation Service or to the Agricultural Conservation Programs Branch of the Production and Marketing Administration, or (2) the Secretary deems to be principally related to soil conservation and improvement or to those aspects of programs of the Department of Agriculture which require direct dealings by the Department with farmers; except that, subject to the supervision and direction of the Secretary

(a) the educational, informational, and demonstrational features of such functions shall be exercised, in the several States, Alaska, Hawaii, and Puerto Rico, through the Extension Service of the United States Department of Agriculture in cooperation with the agencies performing cooperative agricultural extension work;

(b) the research and investigational features of such functions shall be exercised through the agricultural experiment stations in the several States, Alaska, Hawaii, and Puerto Rico in cooperation with the Division of Soil Conservation and Improvement, hereinafter provided for, in the Office of Experiment Stations; and

(c) such functions, except as provided by clauses (a) and (b) of this section, shall within the continental United States be performed at State and county levels, insofar as the Secretary may deem practicable, by the State agricultural councils and by the county agricultural associations and

executive committees hereinafter provided for. The functions assigned pursuant to this section to the State agricultural councils and the agencies performing cooperative agricultural extension work shall be closely coordinated by the Secretary and by such councils and agencies. The Secretary shall abolish the regional offices of the Soil Conservation Service, and no regional offices shall be established to perform functions formerly exercised by them; except that, upon the request of the State agricultural councils for any two or more States, the Secretary may establish a regional office to perform for such States the functions for which such office is requested. In the event a regional office is established pursuant to such a request the expenses of such office shall be paid in such amounts and proportion as such State agricultural councils may agree from funds which would otherwise be available for soilconservation purposes in such States.

APPROPRIATIONS AVAILABLE FOR FUNCTIONS TO BE PERFORMED AS COOPERATIVE

EXTENSION WORK

SEC. 102. (a) (A) Any sums heretofore or hereafter approriated, other than as grants-in-aid, and available for functions which the Secretary determines to be functions required by section 101 (a) of this Act to be exercised through the Extension Service and cooperating agencies in the several States and the Territory of Hawaii, to the extent that such funds are available at the time the Secretary makes such determination, and (B) any sums appropriated specifically for functions covered by section 101 (a), shall be paid to the several States and the Territory of Hawaii in the same manner and subject to the same conditions and limitations as the additional sums appropriated under the Act entitled "An Act to provide for cooperative agricultural extension work between the agricultural colleges in the several States receiving the benefits of the Act of Congress approved July 2, 1862, and all Acts supplementary thereto, and the United States Department of Agriculture”, approved May 8, 1914 (U. S. C., title 7, secs. 341-343, 344-348), except that

(1) not more than 2 per centum of the sums so appropriated and available in each fiscal year shall be available for paying expenses of the Extension Service of the United States Department of Agriculture; and

(2) the remainder of the sums so appropriated and available in each fiscal year shall be paid to the several States and the Territory of Hawaii, without any requirement that equal sums be provided from any other sources, in the same proportions as the sums appropriated for such fiscal year pursuant to section 23 of the Act entitled “An Act to provide for research into basic laws and principles relating to agriculture and to provide for the further development of cooperative agricultural extension work and the more complete endowment and support of land-grant colleges”, approved June 29, 1935, as

amended (U. S. C., title 7, sec. 3430-1). (b) The sums paid pursuant to this section shall be in addition to and not in substitution for sums appropriated under such Act of May 8, 1914, as amended and supplemented, or sums otherwise appropriated for agricultural extension work. Allotments to any State or the Territory of Hawaii for any fiscal year as provided by this section shall be available for payment to such State or the Territory of Hawaii only if such State or the Territory of Hawaii complies, for such fiscal year, with the provisions with reference to offset of appropriations (other than appropriated funds allotted pursuant to this section) for agricultural extension work.

DIVISION OF SOIL CONSERVATION AND IMPROVEMENT

SEC. 103. The Secretary shall establish within the Office of Experiment Stations a division to be known as the “Division of Soil Conservation and Improvement”, to exercise the functions assigned to it pursuant to section 101 (b) of this Act. Not more than three per centum of any Federal funds made available for research projects supervised by the Division of Soil Conservation and Improvement shall be available for the expenses of the division.

APPROPRIATIONS AVAILABLE FOR FUNCTIONS TRANSFERRED TO EXPERIMENT STATIONS

SEC. 104. The Secretary is authorized to make available from any funds heretofore or hereafter appropriated, other than as grants-in-aid, for functions which pursuant to section 101 (b) are to be exercised through the agricultural experiment stations in the several States, Alaska, Hawaii, and Puerto Rico such sums as he may deem appropriate for allotment to such agricultural experiment stations. The sums so allotted shall be in addition to and not in substitution for

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