Mr. WHITTEN. I think that we might ask you in connection with this if you will let us look into it tomorrow. We have some tables here on supplies on hand and the activities commodity by commodity. So as much of that as you may have readily available for a period of years, you might have that tomorrow. Mr. HORAN. We can make it very simple. Mr. WHITTEN. They might have a series of tables. Mr. WHITTEN. We can bring it all together. Since we have to answer the rollcall and since you are just now to your prepared statement, I think the committee will recess until 1 o'clock tomorrow. Mr. GODFREY. I still have one important phase, you know. I could not pass up the opportunity of land use, ACP, and I have some charts I want to show you on that. Mr. WHITTEN. We will be glad to see that. TUESDAY, MARCH 12, 1963. 1 The authorization includes operating expenses financed under the appropriation "Expenses, ASCS." Mr. WHITTEN. The committee will come to order. We shall be glad to have you proceed, Mr. Godfrey. First insert the justification material on the agricultural conservation program. JUSTIFICATION OF THE ESTIMATES The agricultural conservation program is operated on a program or crop-year basis and cost-sharing assistance is earned by farmers upon completion of approved measures. Funds for cash payments earned under the 1962 agricultural conservation program which closes December 31, 1962, were made available in the Department of Agriculture and Related Agencies Appropriation Act, 1963. That act, also authorized the formulation and administration of a $250 million program for 1963 for which this estimate is submitted. Summary of increases, 1964 [On basis of direct appropriation] Increase to carry out the 1963 agricultural conservation program in the amount authorized. +$7, 100, 000 Appropria- $220, 000, 000 220, 000, 000 -12, 000, 000 -38,000,000 +50, 000, 000 209, 000, 903 212,900,000 +7, 100, 000 (1) 220, 000, 000 Excludes operating expenses. Direct applied costs were $213,664,215 in fiscal year 1962. This amount is not directly reconcilable to the obligations shown above, which, for program payments, relate to the program year rather than the fiscal year. STATUS OF PROGRAM National conservation action is a necessity Early in 1962 a policy guide for land and water resources was developed by the Department of Agriculture. A part of this report contains an estimate of the costs, including total private and public investment, which would be incurred if the conservation problems inventoried in the Department's recent conservation needs inventory are to be met. The report indicates that approximately $50 billion would be required to meet such problems, and if the treatments necessary were to be applied over a 20-year period, an average annual conservation expenditure of $2.5 billion would be required. This would equal nearly 10 percent of present annual farm operating costs or about 20 percent of the current net income from farming. At present, only 4 to 6 percent of net farm income is being invested in conservation measures, with over 60 percent of them accompanied by Federal cost sharing. The current annual conservation investment from all sources is estimated at about $750 million, of which about 30 percent is Federal and 70 percent non-Federal. The report continues by pointing out that unless a greater portion of farm income than at present can be channeled into conservation investment, a billion dollar increase in net farm income would yield at most a $60 million increase in conservation investment. The report concludes that increased income alone cannot be relied upon to achieve an annual investment in conservation comparable to what is estimated to be needed. This report points up the great importance of public assistance to farmers if the public's interest in maintaining the Nation's basic resources is to be met. Conservation costs before it pays Farm practices that conserve agricultural soil and water resources are costly. They require an initial outlay of capital to install and many of them result in a reduction in farm income and an increase in the amount of expenditures for farm operations. The economic phase of conservation work requires increased attention. Several recent studies have revealed some of the reasons why farmers are often reluctant to adopt conservation systems of farming, even though it is recognized that such a system will eventually result in increased farm income. These studies show that in addition to the substantial initial investment, there is usually a loss of immediate income when a conservation system of farming is adopted. They also show that returns which can be expected from some types of needed conservation measures (for example, terrace systems, erosion control structures, and certain forestry improvement measures) will not equal their cost for a long time even though they may be necessary to prevent irreparable loss of soil resources and to insure vital water resources and supplies. There are greater risks in some types of needed work (such as contour farming or the establishment of soil-saving cover in some areas) than farmers and lenders are generally willing to assume. Farmers and the public jointly invest and jointly benefit Because of their inseparable interest and mutual interdependence, farmers and other citizens have recognized the necessity of jointly bringing their resources to bear on problems in the field of soil, water, and woodland conservation. Federal and State governments have sought and continue to seek the best methods of expressing this essential partnership. Research and experimental work have developed and are developing means by which soil and water resources can be conserved. Educational work is teaching the value of and need for conservation effort. Technical services help determine the conservation measures that are needed and furnish engineering and other professional assistance to correctly install them. Federal cost sharing by the agricultural conservation program helps overcome, through its incentives and other resources, the economic barriers to carrying out conservation measures. The agricultural conservation program affords a means by which all the people may bear a part of the costs of those measures that would not otherwise be carried out at the rate needed to meet the public interest. It assists farmers and ranchers to protect the public's interest in the Nation's soil, water, and woodland resources by sharing with them the cost of carrying out soil-building and soil- and water-conserving practices more rapidly and to a fuller extent than would be practicable through usual farm management practices. The program, which is applicable to all farmland except some federally administered noncropland, helps insure continued abundant production at bargain prices, for all of the people of the country. Local people develop their own program Development of the agricultural conservation program begins at the local or county level. The agricultural stabilization and conservation county committee, with the assistance of the county extension agent and representatives of the Soil Conservation Service, Forest Service, and other local groups interested in conservation, make recommendations to the State ACP development group. These recommendations are used as the basis to formulate joint recommendations to the Agricultural Stabilization and Conservation Service in Washington. From these recommendations, the Agricultural Stabilization and Conservation Service, Economic Research Service, Office of Rural Areas Development, Forest Service, and Soil Conservation Service, develop and recommend to the Secretary a national program. State and local people then develop their programs within the structure of the national program authorized by the Congress and approved by the Secretary. Local people administer their program The agricultural conservation program is administered locally by agricultural stabilization and conservation county committees which are composed of resident farmers elected by farmers they serve. County committees are supervised by agricultural stabilization and conservation State committees composed of resident farmers appointed by the Secretary of Agriculture. The local county agent is ex officio a member of the county committee and the State director of extension holds a like position on the State committee. State, county, and community committeemen are assigned the responsibility for the field administration of the program and work directly with farmers in utilizing program assistance in an effort to get the greatest volume of conservation performed on the land by the farmers themselves. The responsibility for technical determinations in the field regarding permanent type practices is assigned to the Soil Conservation Service, except for forestry practices, for which responsibility is assigned to the Forest Service. The 1962 program again emphasized conservation in land use adjustments and land treatment conservation measures within watersheds The Department carried out the 1962 agricultural conservation program consistent with the authorization contained in the Department of Agriculture and Farm Credit Administration Appropriation Act, 1961. The Department continued the policy of directing program emphasis toward, but not limiting assistance to, enduring practices which are essential in the public interest and which farmers or ranchers would not carry out to the desired extent with their own resources, and to practices needed to meet the conservation problems on land being shifted out of production. To illustrate the function and economic effect of the agricultural conservation program in land use adjustment, the program has shared the cost with farmers on establishing about 33 million acres of enduring vegetative cover, including tree cover, during the 8 years, 1954-61. A high percentage of this land was cropland producing at an intensive level. Also, the agricultural conservation program has been instrumental in furthering the objectives and accomplishments of authorized watershed programs. For example, during the years 1955-61, over $60 million of ACP funds were used to share costs of the land treatment conservation measures within the boundaries of the 11 approved flood-prevention watersheds, 55 pilot watersheds in which operations were authorized under Public Law 46, and watersheds authorized for operations under Public Law 566. These costs were shared on from about 34,000 farms in 1955 to about 63,000 in 1961. In the case of the Public Law 566 watersheds included in these data, the number of watersheds increased from 26 (with 908 farms participating in ACP) in 1955 to 368 (with 26,901 farms participating in ACP) in 1961. The program for 1963 The 1963 program is essentially the same as the 1962 national program, including the new authority in the Department of Agriculture and Related Agencies Appropriation Act, 1962, for wildlife conservation practices which also have soil or water conservation benefits. State committees allocated the funds available for conservation practices among the counties consistent with the needs for enduring conservation, giving particular consideration to the furtherance of watershed conservation programs sponsored by local people and organizations. 95910-63-pt. 3——40 Authority for local development and adaptation of the program continues. There is also encouragement for modifications of regular practices to meet local problems. Under this authority, emphasis is given to the development or adaptation of the program to help meet continuing needs for (1) sound land use adjustment, (2) land treatment measures in special watershed programs, and (3) dealing with special farm conservation problems of particular consequence in depressed agricultural areas. In addition, there is continued the provision for the development of new practices to meet new or unusual conservation problems including emergency conservation problems arising as a result of natural disasters such as floods, hurricanes, and intense drought. The maximum Federal cost-share limitation under the regular program remains at $2,500 (except pooling agreements in which case the limitation is $10,000), the same as for 1962. The 1961 program accomplished much conservation Funds available for program assistance, after estimated costs of administration are deducted from the maximum authorization, are distributed among States in accordance with their conservation needs, except for the minimum allotment provision contained in section 15 of the Soil Conservation and Domestic Allotment Act, as amended. Funds for the naval stores conservation program, cost of aerial photography, program printing, and transfers to the Treasury Department are subtracted from the amount available for program assistance before the conservation needs formula is applied. The amount for naval stores has been determined in the same manner since 1948 and is based on the need for assistance under the naval stores conservation program as related to the total funds available for cost-sharing assistance to farmers. Includes the United States, Puerto Rico, the Virgin Islands, and the supplementary (emergency) agricultural conservation program. Extent of selected conservation measures performed under the 1961 agricultural conservation program and accomplishments under the agricultural conservation programs, 1936-61. Includes supplemental (emergency) agricultural conservation programs 1 Includes completed measures only. * Includes storage type structures for erosion control, irrigation water, livestock water and forest-fire control. |