Fact sheet: 1962 and 1963 wheat stabilization programs-Continued CARRYOVER STOCKS, END OF MARKETING YEAR (MILLION BUSHELS) Fact sheet: 1962 and 1963 wheat stabilization programs-Continued Increase 1962 with current program_. Season average price: Increase 1963 with current program (to participants) $0.21 $0.18 With 1961-type program: FARM INCOME, VALUE OF PRODUCTION (MILLION DOLLARS) Fact sheet: 1962 and 1963 wheat stabilization programs—Continued ESTIMATED ULTIMATE SAVINGS TO THE GOVERNMENT (MILLION DOLLARS) 1962 program:1 Acquisition costs avoided (50 percent of total). Carrying charges avoided (storage, handling, transportation, and interest) – Acreage diversion payments. Administrative expense- Net savings- 1963 program: Acquisition costs avoided (50 percent of total)__ Carrying charges avoided (storage, handling, transportation, and interest) Acreage diversion payments- Price support payments--. Administrative expenses-- Net savings---- 197 307 -290 -14 200 127 181 -153 -91 -10 54 1 The higher support price for the 1962 program over a 1961-type program ($2 versus $1.79) may have caused some increase in the export subsidy payment rate; however, it is impossible to accurately estimate what the increase would have been if the 1961-type program had continued due to difficulties in estimating both world prices and U.S. market prices under a 1961-type program. Any increase in the export subsidy rate would result in some reduction in the estimated ultimate net savings. METHOD OF PAYMENT FOR ACREAGE MEASUREMENT Mr. WHITTEN. Last year we discussed the various methods used by the State ASC committees in paying reporters for measuring acreage. What is the latest development on this issue? At some places I believe they pay on a piecework basis. Mr. GODFREY. We urged each State last year to give careful consideration to switching over to the piecework basis if they weren't already using it. Our experience had shown us that we could effect savings on a piecework basis. We had several States switch over. I do not have the exact number at my fingertips. We will supply the number of States that are now measuring on the piecework basis for the record. Mr. WHITTEN. I am not finding fault, but is the farmer the only one who operates under the sweatshop basis? I understood that was kind of outlawed in industry. Mr. GODFREY. Apparently this is the way it looks. Mr. WHITTEN. I don't think many people will find fault with that, though there has been some criticism. Fact sheet: 1962 and 1963 wheat stabilization programs-Continued 1963-Support price----. Price support payment (to participants) ---- Comparison: Increase 1962 with current program-. Increase 1963 with current program (to participants) –. Season average price: With 1961-type program: FARM INCOME, VALUE OF PRODUCTION (MILLION DOLLARS) $1.78 $1.79 $1.79 $1.82 $2.00 $1.82 $0. 18 $0.21 $0. 18 $1.74 $1.83 $1.75 $1.78 $2.02 $1.80 $0.27 $0. 02 $2, 365 $2,261 $2,292 $2,430 $2, 205 290 2.495 2, 205 153 91 2, 449 $203 $19 |