1 Generally for prompt shipment. Prices for certain qualities were computed using value differences. February 21. 22 CCC INVENTORY Mr. HORAN. Could I inquire, in terms of money, what does that chart mean, sir? Mr. GODFREY. In terms of money? Mr. HORAN. In terms of each commodity. Mr. GODFREY. In terms of money, for each commodity, it means as of December 31, 1962, that is where we have it plotted to, we have inventory of corn valued at $1.213 billion; other feed grains, $651 million; cotton, $815 million; wheat, $2.035 billion; and all other commodities, $556 million, of which $388 million is dairy products. That is the investment in inventory as of December 31. Mr. WHITTEN. May I interrupt there, again, to keep the record straight. That is the original investment in it, and does not reflect any outstanding charges? Mr. GODFREY. That is right, sir. Mr. WHITTEN. Carrying charges, freight, and so forth, which we separated are not shown. Mr. HORAN. Is that true of that chart throughout its full length? Mr. GODFREY. Yes, sir. Mr. HORAN. You have adjusted the chart, then, to reflect the bookkeeping that you did to cut out the carrying charges, interest and so forth? Mr. GODFREY. Yes, sir. Mr. HORAN. As part of the investment? Mr. GODFREY. This is the original investment in the commodities shown here. Now, we make a projection here-we did not put it on the chart for several reasons, but, as I pointed out, we make a projection that by 1964, June 30, 1964, the total investment in inventories will be down to about $4.5 billion, down from $5.3 billion. It will be $800 million less than it is at the present time. Mr. HORAN. Does that chart indicate activity in Public Law 480? INVESTMENT AND CARRYING CHARGES Mr. GODFREY. No, sir, it does not. This is just merely the inventory investment. If Public Law 480 pulled down on the inventory, naturally, it would be reflected here by the amount that it pulls it down. This one is a little different, the CCC investment in price support is shown on this side and the gross carrying charges over here. (The information requested follows:) AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE CCC loans, inventories, and investment in price support as of June 30 and gross carrying charges for the fiscal year Mr. GODFREY. You notice here, beginning in 1960, we had invested about $7 billion. It has come down now to just a little over $6 billion projected for 1964. At the end of 1962, it was about $6.7 billion. Now, the thing that is interesting about this, though, is the carrying charge reduction, and the inventory reduction on wheat and feed grain as a result of the wheat and feed grain programs. You will notice the material reduction in inventory of wheat and feed grains which is represented by the red. We come here from 1961 to here, and it shows the results of the 1961 wheat and feed grain program. This is reflected, also, over here in the reduced carrying charges. Starting here with carrying charges for all commodities, in 1960, it ran in excess of about $1 billion. We are estimating in the 1964 budget that it will be down to about $855 million. EXPENDITURES FOR LAND RETIREMENT Mr. WHITTEN. To keep the record straight there, I think it would be well for you to put in the record the amount of money that has been paid out during that period in the way of taking land out of production and things of that sort, by a case note or some other approach. Mr. GODFREY. I have that at another point here that I can insert and bring in. Mr. WHITTEN. I would be glad to have you do that. (The information requested follows:) Estimated net expenditures for land diversion under the conservation reserve, wheat stabilization, and feed grain programs, 1960-63 program years 1 1 Data for 1962 and 1963 are estimates. Amounts for the conservation reserve exclude conservation practice cost-sharing, and the 1963 amount includes estimated land use adjustment costs for extending conservation uses through 1963 on land for which conservation reserve contracts terminated in 1962. Feed grain and wheat amounts are for land diversion payments only. Calendar year for conservation reserve program. CORN AND FEED GRAINS Mr. GODFREY. The next chart here shows the total U.S. stocks and the stocks owned and controlled by CCC and the free stocks of corn. (The chart referred to follows:) CORN: TOTAL UNITED STATES STOCKS, STOCKS OWNED AND CONTROLLED BY CCC, AND FREE SUPPLIES |