Wheat stabilization program, 1962 Number of farms with base average_ 1,811, 066 821, 845 15,065, 300 Sugar Act program.-This program, authorized by the Sugar Act of 1948, as amended, is designed to (1) provide an assured supply of sugar for U.S. consumers at stable and reasonable prices, (2) make it possible, as a matter of national security, to produce a substantial part of domestic sugar requirements within the continental United States without the consumer penalizing device of high level protective tariff, and (3) serve important foreign policy objectives. Estimated workload for the 1962 crop is as follows: Estimated number of farms__. Estimated planted acreage.... 42, 703 287 2,247, 830 Price-support program.-Activities include reinspection of farm-stored loans, including reseal loans, processing loan repayments, acquiring commodities under loan or purchase agreements, and sale of grain under the livestock feed program. Data for the fiscal year 1962 are: Number of warehouse-stored loans__ Number of reinspections of farm-stored commodities_. Number of loans and purchase agreements under which CCC acquired the commodity---- Number of repayments.. 426, 402 385, 651 1,263, 894 593, 726 223, 596 Grain storage structures program.-Activities include erection of storage structures, preparation of new bin sites and expansion of existing bin sites, and maintenance and operation of structures. Workload data for the fiscal year 1962 follow: Number of storage structure sites___. 3,821 236, 910 National Wool Act program.-Under the provisions of the National Wool Act of 1954, incentive payments are made to producers to encourage the annual domestic production of about 300 million pounds of shorn wool. Incentive payments are made to eligible producers on a percentage basis, reflecting the amount required to bring the national average received by all producers to the announced incentive level. The incentive level, by law, cannot exceed 110 percent of parity. Number of applications for payment.. 445, 840 14, 652 COMMODITY CREDIT CORPORATION Mr. WHITTEN. We shall insert at this point the justification pages for the Commodity Credit Corporation. (The pages are as follows:) COMMODITY CREDIT CORPORATION PURPOSE STATEMENT Purpose. The Commodity Credit Corporation engages in buying, selling, lending, and other activities with respect to agricultural commodities, their products, food, feeds, and fibers, for the purpose of stabilizing, supporting, and protecting farm income and prices; assisting in the maintenance of balanced and adequate supplies of such commodities; and facilitating their orderly distribution. The Corporation also makes available materials and facilities required in connection with the production and marketing of such commodities. Origin. The Corporation was organized October 17, 1933, under the laws of the State of Delaware, as an agency of the United States, and was managed 95910-63-pt. 3- 45 and operated in close affiliation with the Reconstruction Finance Corporation. On July 1, 1939, it was transferred to the Department of Agriculture by the President's Reorganization Plan I. On July 1, 1948, it was established as an agency and instrumentality of the United States under a permanent Federal charter by Public Law 80-806, as amended. Its operations are conducted pursuant to this charter and other specific legislation. Management. The Corporation is managed by a Board of Directors, appointed by the President and confirmed by the Senate, subject to the general supervision and direction of the Secretary of Agriculture, who is ex officio, a Director and Chairman of the Board. In addition, it has a bipartison advisory board of five members appointed by the President to survey the general policies of the Corporation and advise the Secretary with respect thereto. Personnel and facilities of the Agricultural Stabilization and Conservation Service, ASCS State and county committees, and other USDA agencies are used to carry out Corporation activities. The services and fleet facilities of the Maritime Administration are used in some of its commodity storage operations, and the facilities of the General Services Administration are used in its activites relating to barter of agricultural commodities for strategic materials. Normal trade facilities are used to the maximum extent practicable. Cooperatives, local banks, and other financial institutions handle phases of its loan operations. Loan collateral and stocks acquired by the Corporation are stored in many commercial facilities. Operations. The budget is based on the price-support and related programs and special activities. Price-support and related programs.-Price-support operations are carried out under the Corporation's charter powers (15 U.S.C. 714) and in conformity with the Agricultural Act of 1949, as amended (7 U.S.C. 1421), section 125 of the Agricultural Act of 1956 (7 U.S.C. 1813), and other applicable legislation, including the Food and Agriculture Act of 1962. Under the Agricultural Act of 1949, as amended, price support is mandatory for the basic commodities-corn, cotton, wheat, rice, peanuts, and tobaccoand specific nonbasic commodities, namely, tung nuts, honey, milk, butterfat. and the products of milk and butterfat, barley, oats, rye, and grain sorghums. Price support for wool and mohair is mandatory under the National Wool Act of 1954, as amended (7 U.S.C. 1781-1787), through the marketing year ending March 31, 1966. Price support for other nonbasic agricultural commodities is discretionary except that whenever the price of either cottonseed or soybeans is supported, the price of the other must be supported at such level as the Secretary determines will cause them to compete on equal terms on the market. This program may also include operations to remove and dispose of or aid in the removal or disposition of surplus agricultural commodities for the purpose of stabilizing prices at levels not in excess of permissible price-support levels. Support is made available through loans, payments, purchase agreements. purchases, and other operations. Operations to remove and dispose of or aid in the removal or disposition of surplus agricultural commodities for the purpose of stabilizing prices at levels not in excess of permissible price-support levels are also authorized. Dispositions of commodities acquired are made in compliance with various statutory authorities and limitations. Under section 308 of the Agricultural Trade Development and Assistance Act of 1954, as amended, such purchases of animal fats and edible oils and products thereof are authorized as will tend to maintain the support level for cottonseed and soybeans without requiring the acquisition of such commodities under the usual loan and nurchase operations of the price-support program. Under section 416 of the Agricultural Act of 1949, as amended, private stocks may also be made available for donation in order to prevent waste. The incentive payment program on wool and mohair is described under special activities. Commodity export.-The Corporation promotes the export of agricultural commodities and products through sales, barters, payments, and other operations. Other than in barters for stockpiling purposes, such commodities and products may be those held in private trade channels as well as those acquired by the Corporation in its price-support operations. In order to encourage movement of cotton, corn, barley, grain sorghums, oats. rye, and rice from free-market supplies into export channels, export payments are made in the form of these commodities from the Corporation's stocks, or in some cases, in cash. Cotton held in the Corporation's inventory is also sold for unrestricted use on a competitive price basis. The Corporation conducts a cotton products export program designed to protect the competitive position of the domestic cotton industry in relation to sales of cotton products manufactured abroad from American cotton purchases at export prices. Equalization payments, based on the raw cotton content in the products exported, are made to exporters on cotton products of upland cotton grown and wholly processed in the United States. The Corporation also purchases wheat and other products from processors or processes its own stocks of such commodities for foreign and domestic distribution. In certain cases, payment for such products or processing costs is made in payment-in-kind export certificates. The Corporation furnishes agricultural commodities and products for distribution or exhibition at international trade fairs to aid in the development of foreign markets for such commodities. Storage facilities.-This program is carried out under the authority contained in the Corporation's charter, particularly sections 4 (h), 4(m), and 5 (a) and (b). The Corporation may (a) purchase and maintain (in storage-deficient areas) granaries and equipment for care and storage of grain owned or controlled by the Corporation; (b) make loans for the construction or expansion of farm-storage facilities; (c) provide storage-use guarantees to encourage the construction of commercial storage facilities; and (d) undertake other operations necessary to provide storage adequate to carry out the Corporation's programs. Supply and foreign purchase. This program is carried out under the authority contained in the Corporation's charter, particularly sections 5 (b) and (c) thereof. The Corporation procures foods, agricultural commodities, their products, and related materials to supply the requirements of Government agencies, foreign governments, and relief and rehabilitation agencies, and to meet domestic requirements. Foods, agricultural commodities and their products are procured or aid is given in their procurement to facilitate distribution or to meet anticipated requirements during periods of short supply. The Corporation may also, through purchases, loans, sales or other means, make available materials and facilities required in connection with the production and marketing of agricultural commodities. Special feed grain program.-Pursuant to the Agricultural Act of 1961, Public Law 87-128, and the Food and Agriculture Act of 1962, Public Law 87-703, the Secretary of Agriculture utilizes Commodity Credit Corporation funds, facilities, and stocks of feed grains in redeeming or marketing certificates issued to producers who divert acreage from the production of 1962 and 1963 crops of corn, grain sorghums, and barley under this program. The Corporation is also authorized to use its funds to pay administrative expenses necessary to carry out this program through June 30, 1963. (See Agricultural Stabilization and Conservation Service.) Wheat stabilization program.-Under the Agricultural Act of 1961, Public Law 87-128, and the Food and Agriculture Act of 1962, Public Law 87-703, the Commodity Credit Corporation is authorized to utilize its funds for the purpose of making payments to producers who divert acreage from the production of 1962 and 1963-crop wheat under this program. Payments are made by issuance of Commodity Credit Corporation sight drafts which may be cashed or used for the acquisition of wheat from Commodity Credit Corporation stocks. The Corporation is also authorized to use its funds to pay administrative expenses necessary to carry out this program through June 30, 1963. (See Agricultural Stabilization and Conservation Service.) Special activities.-These activities are carried out under the authority of section 5(g) of the Corporation's charter and specific statutory authorizations or directives with respect thereto which are currently in effect or which may subsequently be enacted. To the extent that advance appropriations provided under foreign assistance programs are not sufficient to pay obligations incurred with respect to such programs, such obligations are paid by the Corporation subject to reimbursement from subsequent appropriations authorized for such purpose. Details of these programs may be found in the foreign assistance programs section of these explanatory notes or in the budgets of other agencies which request appropriations to reimburse the Corporation. Undistributed expenses.-There are a number of expenses which are not allocated to a specific program. These include administrative expenses applicable to the limitation, and nonadministrative expenses such as interest on the capital stock of the Corporation and on borrowing from the Treasury, ad ministrative equipment, expenses of the ASCS county committees, Federal Reserve banks and other agencies in connection with the Corporation's programs. Such expenses are partly offset by income from interest on loans and on special programs financed by Commodity Credit Corporation and other miscellaneous income. Administrative expenses are for the operating staff, including the services of employees of the Agricultural Stabilization and Conservation Service engaged in the Corporation's activities, services performed by other agencies of the Department, costs of audit, and payments to the General Services Administration for space in the District of Columbia and rent of field office space. Each year the annual appropriation act contains a limitation on the amount of funds which may be expended for administrative expenses of the Corporation. Necessary expenses (including legal and special services performed on a contract or fee basis, but not including other personal services) in connection with the acquisition, operation, maintenance, improvement, or disposition of any real or personal property belonging to the Corporation or in which it has an interest, including expenses in collection of pledged collateral, are considered nonadministrative or program expenses for the purposes of this limitation. Such expenses include inspection, classing, and grading work performed on a fee basis by Federal employees or Federal- or State-licensed inspectors and work performed on a contract basis by agricultural stabilization and conservation county committees. Similarly, expenses of other Federal agencies whose services are utilized in the handling of Commodity Credit Corporation property are treated as program expenses. These include the fleet storage operation of the Maritime Administration conducted intermittently since 1949 and the services of the General Services Administration in connection with the strategic, critical, and other materials acquired by the Corporation. Administrative expenses in connection with the supply and foreign purchase program, the wool and mohair program under the National Wool Act of 1954, the International Wheat Agreement, and the sale of long-staple cotton transferred from the national stockpile, are not included in the limitation since it is contemplated that full reimbursement will be received for these expenses. Such reimbursement will be obtained and used in 1964 in the same manner as in pervious years. Under the special programs for feed grains and wheat stabilization, funds of the Corporation are authorized to pay administrative expenses of these programs through June 30, 1963. Financing. The programs of the Commodity Credit Corporation are financed by capital stock, borrowing, guarantees to purchase notes or other obligations evidencing loans made by lending agencies, issuance of certificates of interest in loans held by the Corporation, appropriations to reimburse the Commodity Credit Corporation for net realized losses, appropriations to reimburse the Corporation for costs of special activities, advances and reimbursements from "Foreign assistance programs" appropriations, and receipts from operations. The Corporation has an authorized capital stock of $100 million held by the United States and authority to borrow up to $14.5 billion. Funds are borrowed from Treasury and may also be borrowed from private lending agencies. In connection with loan guarantees, the Corporation reserves a sufficient amount of its borrowing authority to purchase at any time all notes and other obligations evidencing loans made by lending agencies or certificates of interest issued in connection with the financing of price-support operations. All bonds, notes, debentures, and similar obligations issued by the Corporation are subject to approval by the Secretary of the Treasury as required by the act of March 8, 1938 (15 U.S.C. 713a-4). Interest on borrowings from the Treasury (and on capital stock) is paid in accordance with a policy of the Treasury that the rate shall be based upon the average interest rate on all outstanding marketable obligations (of comparable maturity date) of the United States as of the preceding month. Interest is also paid on certificates of interest and lending agency obligations for the period the agencies have their funds invested. Public Law 87-155 authorizes appropriations annually, in an amount sufficient to reimburse the Corporation for its net realized losses for the fiscal year. If a surplus occurs, it is paid to the Treasury. Receipts from operations include proceeds from sales of commodities, loan repayments, interest income, advances and reimbursements for costs of special activities, and miscellaneous income, refunds, and collections. |