Bartered materials for supplemental stockpile.. $125, 000, 000 $125, 000, 000 -$42, 140,000 $82,860, 000 EXPLANATION OF ESTIMATE The preceding project statement was prepared on the basis of appropriations made in the fiscal year 1963 and the 1964 estimates. The explanation which follows is based on the estimated program volume in the fiscal years 1963 and 1964. Materials transferred to supplemental stockpile.-The volume of contracts for barter of agricultural commodities for transfer to the stockpile is expected to be $80 million in both fiscal years 1963 and 1964. Based on recommendations of the Executive Stockpile Committee, approved by the President on September 20, 1962, greater emphasis than in the past will be placed on barter transactions covering offshore procurements for the Department of Defense, the Agency for International Development, and other Government agencies. Barter will continue for strategic materials at a reasonable volume needed to meet stockpile objectives and will be much less than in past years. However, where stockpile objectives have been met, barter for strategic materials will emphasize the taking of useful materials from underdeveloped countries in exchange for agricultural commodities which would otherwise be supplied to such countries for foreign currencies where these currencies are presently held in excess of U.S. requirements. Deliveries of strategic materials to the stockpile, primarily from prior year contracts, are estimated at $85.5 million in 1963 and $61.5 million in 1964. Because of the possible adverse effect on contract prices, no detailed listing of future deliveries of materials is furnished at this time. The rate at which transfers are made under this program is influenced by such unpredictable factors as international negotiations, availability of storage space, and the processing of documents. The Congress has recognized that the amounts provided in the appropriations are not fully controlling since contract authority under basic law permits the Department to enter into agreements and commit the Government to expenditures which must be financed from subsequent appropriations. On the other hand, if funds appropriated are in excess of amounts actually used in a particular year, such amounts are applied against current year's costs and reduce the subsequent appropriations required. Unrecovered estimated 1963 costs financed by Commodity Credit Corporation.— During the fiscal year 1963, total transfers are estimated at $85,500,424. The 1963 Appropriation Act provides $125 million for 1963 and prior years' costs. After deducting $60,859,576 for unrecovered 1962 costs, only $64,140,424 remains for 1963 costs. Therefore, $21,360,000 of the 1963 costs will be financed by the Corporation during 1963. A reimbursement for this amount has been included in the 1964 estimate. Transfers to supplemental stockpile, fiscal year 1962 Material: Abrasive crude aluminum oxide_ Antimony metal__. Asbestos-amosite-- Asbestos-chrysotile_. Asbestos-crocidolite__ Bauxite_. Beryl ore.. Beryllium copper master alloy.. Bismuth__ Boart___ Cadmium. Chrome ore-chemical grade____ Diamonds. High-carbon ferrochrome__ Ferromanganese_-_. Fluorspar-acid grade_-- Fluorspar-metallurgical grade. Crude iodine___ Lead__ Manganese ore chemical grade_ Manganese ore-metallurgical grade_ Manganese ore-natural battery grade_. Mica___ Palladium_ Platinum. Rare earths Rutile. Silicon carbide___ Thorium nitrate_ Amount $32, 164 1,542, 643 1,896, 470 196, 026 1, 558, 233 39, 878, 590 5, 454 481, 726 1,086, 255 5, 599, 997 960, 636 3, 363, 976 1, 403, 545 79, 729 131, 337 17, 095 35, 550, 046 839, 717 1,428, 392 16, 503, 526 3,718, 807 7,788 106, 146 15, 678, 229 5,525, 156 25, 353, 036 5, 572, 615 4, 116, 592 2,297, 842 4,024, 529 Titanium sponge Tungsten carbide powder- Materials transferred to supplemental stockpile-total cur- 2,869, 899 124, 301 3,563, 578 591, 107 4,322, 528 2, 868, 949 -3, 544 193, 293, 115 -7, 433, 539 -60, 859, 576 125, 000, 000 Appropriation____ FEED GRAIN PROGRAMS Mr. WHITTEN. For the feed grain and wheat programs, how many participants, how much acreage has been diverted, and what is the estimated cost? This appears on page 239, volume 3. I would be glad to have that in the record. (The information referred to follows:) SPECIAL PROGRAMS FOR FEED GRAINS, 1961, 1962, AND 1963 CROPS A. Description of current program Public Law 87-5 authorized a special feed grain program providing for payments to producers for diverting acres on a voluntary basis from the 1961 crops of corn and grain sorghum. The Agricultural Act of 1961 (Public Law 87-128) authorized a payment program for the 1962 crop similar to the 1961 program and added barley. The Food and Agriculture Act of 1962 (Public Law 87-703) authorized a diversion payment program for the 1963 crop of corn, grain sorghum, and barley. Principal points of the 1963 feed grain program for producers of corn, grain sorghum, and barley are: Participation is voluntary. Farmers may take part by reducing the total of their 1963 feed grain acreage by at least 20 percent, the minimum diversion for participation. The maximum diversion is 40 percent of the base acreage or 25 acres, whichever is higher. The acreage of corn, grain sorghum, and barley (1959-60 average acreage, as adjusted) will be combined into one total feed grain base for each farm. A farmer may choose to divert one or more of the feed grains in this total base and his payment will be made at the per acre rate for the particular grain or grains diverted. Farmers who have planted their 1963 barley crop this fall will be able to participate in the 1963 program by reducing their total feed grain acreage by at least 20 percent. In a change from the 1962 program, farmers to be eligible for any payments or price support on any of the three feed grains must divert the total acreage signed up. Diverted acreages will be devoted to a conserving use and will be in addition to the average acreage of conserving and idle land on the farm for 1959 and 1960. Payment on the first 20 percent of acreage diversion will be made at 20 percent of the county support rate (reflecting national average of $1.25 per bushel for corn, $2 per hundredweight for grain sorghum, and 96 cents per bushel for barley) on the normal production of the diverted acres. On diversion above the minimum amount, payment will be at 50 percent of the county support rate. Special provisions are made for small farms. The payment rate for acreage diverted will be 50 percent of the county support rate on the normal production of the diverted acres, for farms on which the entire feed grain base acreage is diverted up to the eligible maximum of 25 acres. B. Summary of operations-Acreage diversion payments WHEAT STABILIZATION PROGRAM (FINANCED BY COMMODITY CREDIT CORPORATION) A. Description of current program Title I of the Agricultural Act of 1961, Public Law 87-128 (75 Stat. 296–301), provides for payments to producers who divert acreage from wheat to approved conservation practices or uses. Title III of the Food and Agriculture Act of 1962, Public Law 87-703, approved September 27, 1962, provides for similar payments to producers for diverting acreage from the 1963, 1964, and 1965 crops of wheat. Payments in cash or in kind are made by Commodity Credit Corporation. The per acre payment for taking wheat acres out of production is based on the yield of wheat for the farm and the local price support rate for wheat. The county agricultural stabilization and conservation committee will establish a per acre wheat yield for each farm (based on 1959-60). The payment rate will be the yield per acre multiplied by one-half the county price support loan rate for wheat. The payment rate is then multiplied by the total acres taken out of wheat production in compliance with the program to determine the total payment for the farm. Farmers with wheat allotments of 15 acres or more may take out of production a minimum of 20 percent and a maximum of 50 percent of their wheat allotments; 10 acres may be diverted if this is larger than 50 percent of their wheat allotment. For these farmers to receive all the benefits and payments, they must take at least 20 percent of their wheat allotments out of production and use those acres for conservation purposes. For farmers with a wheat allotment of less than 15 acres, the minimum diversion is 20 percent of the larger of (a) the average acres of wheat planted for harvest in 1959, 1960, and 1961 (but not to exceed 15 acres) or (b) the 1963 allotment. The highest acreage that may be retired from wheat production is 10 acres, provided this is not larger than either (a) or (b) above. Small farms must also be within the wheat allotment to be eligible for a price support loan and the 18 cents price support payment for wheat. Mr. WHITTEN. Do you have any additional comments? Mr. GODFREY. No additional comments than what we have there. We do not have the estimate complete yet on the 1963 feed grain programs because signup ends on March 22. We gave an estimate in our presentation that it would be a little less acreage than we had this past year. Mr. WHITTEN. Would you supply the fact sheets showing all the information on participation, acreage diverted, payments made, and so forth. Mr. GODFREY. Yes, we will. (The information follows:) 95910- 63-pt. 3-47 |