At this point we Mr. WHITTEN. Discuss the production figures and payments in fiscal 1962, 1963, and 1964 by the various producing areas. shall put page 258 of volume 2 in the record. (The page follows:) Mr. GODFREY. For the 1962 crop, fiscal year 1963 estimate first, on payments to producers in the continental beet area, we are estimating $43,182,300. The 1964 estimate is $44,985,200, which is an increase of $1,802,900. This comes about because there will be an increased production of sugarbeets as a result of the fact that no proportionate share is being prescribed for sugarbeets for 1963 and an actual need for additional production. The estimate for the continental cane area, for 1963, is $13,074,000; 1964, $9,605,585; the difference of $3,468,415 is to be deferred until fiscal year 1965. In the offshore cane areas, the 1963 estimate was $21,393,700; 1964, $25,409,215; or an increase of $4,015,515. The total appropriation increase for 1964 is $2,350,000. I can insert supporting material backing this up. Mr. WHITTEN. I shall be glad to have you supply that for the record. Mr. GODFREY. The legislative background if you would like. (The material supplied follows:) Sugar Act program Appropriation act, 1963 and base for 1964_. Budget estimate, 1964____ $77, 650, 000 80, 000, 000 Increase (for payments to sugar producers due to increased -+2, 350, 000 The sugar program operates to provide an assured supply of sugar for U.S. consumers at stable and reasonable prices, maintains a healthy domestic sugar producing and processing industry which could provide a base for rapid expansion of U.S. sugar production if foreign supplies should be cut off, and serves important foreign policy objectives. Current activities The following activities are conducted: 1. Sugar requirements, marketing and import quotas, and marketing allotments are established to provide an adequate supply of sugar for U.S. consumers, orderly marketing conditions, and sugar prices that will fairly and equitably maintain the domestic sugar industry. 2. Proportionate share determinations: Proportionate shares for farms are required in an area when the indicated sugar production from sugar crops would be greater than the quantity needed to fill the quota and provide a normal inventory for such area. 3. Fair wage and price determinations establish fair and reasonable wage rates for fieldworkers and fair prices for sugarcane and sugarbeets. 4. Payments to farmers are made upon conditon that they comply with proportionate share determinations, nonemployment of child labor, fair wage determinations, and fair price determinations if they are also processors of beets or cane. 5. Representation is furnished to the International Sugar Agreement. This agreement provides for an International Sugar Council representing 30 exporting and 12 importing countries which together account for approxi At this point we Mr. WHITTEN. Discuss the production figures and payments in fiscal 1962, 1963, and 1964 by the various producing areas. shall put page 258 of volume 2 in the record. (The page follows:) Mr. GODFREY. For the 1962 crop, fiscal year 1963 estimate first, on payments to producers in the continental beet area, we are estimating $43,182,300. The 1964 estimate is $44,985,200, which is an increase of $1,802,900. This comes about because there will be an increased production of sugarbeets as a result of the fact that no proportionate share is being prescribed for sugarbeets for 1963 and an actual need for additional production. The estimate for the continental cane area, for 1963, is $13,074,000; 1964, $9,605,585; the difference of $3,468,415 is to be deferred until fiscal year 1965. In the offshore cane areas, the 1963 estimate was $21,393,700; 1964, $25,409,215; or an increase of $4,015,515. The total appropriation increase for 1964 is $2,350,000. I can insert supporting material backing this up. Mr. WHITTEN. I shall be glad to have you supply that for the record. Mr. GODFREY. The legislative background if you would like. (The material supplied follows:) Sugar Act program Appropriation act, 1963 and base for 1964 Budget estimate, 1964___. $77, 650, 000 80, 000, 000 Increase (for payments to sugar producers due to increased -+2, 350, 000 The sugar program operates to provide an assured supply of sugar for U.S. consumers at stable and reasonable prices, maintains a healthy domestic sugar producing and processing industry which could provide a base for rapid expansion of U.S. sugar production if foreign supplies should be cut off, and serves important foreign policy objectives. Current activities The following activities are conducted : 1. Sugar requirements, marketing and import quotas, and marketing allotments are established to provide an adequate supply of sugar for U.S. consumers, orderly marketing conditions, and sugar prices that will fairly and equitably maintain the domestic sugar industry. 2. Proportionate share determinations: Proportionate shares for farms are required in an area when the indicated sugar production from sugar crops would be greater than the quantity needed to fill the quota and provide a normal inventory for such area. 3. Fair wage and price determinations establish fair and reasonable wage rates for fieldworkers and fair prices for sugarcane and sugarbeets. 4. Payments to farmers are made upon conditon that they comply with proportionate share determinations, nonemployment of child labor, fair wage determinations, and fair price determinations if they are also processors of beets or cane. 5. Representation is furnished to the International Sugar Agreement. This agreement provides for an International Sugar Council representing 30 exporting and 12 importing countries which together account for approxi mately 90 percent of the world free market in sugar. The Council attempts to keep world free market requirements and supplies in balance and to otherwise maintain stability in world sugar prices. 6. Studies, surveys, and reports are made on various aspects of the program. Selected examples of recent progress Legislative changes and recent program developments are summarized below. Amendment and extension of the Sugar Act: 1. Public Law 87-535 included the following major legislative changes, among others: (a) Extended the Sugar Act of 1948, as amended, through December 31, 1966, with respect to domestic areas and the Philippines, and to December 31, 1964, with respect to quotas for other foreign countries. (b) Increased quotas for domestic sugar producing areas, and assigned 65 percent of future market growth to mainland areas. (c) Established specific foreign quotas plus a "global quota" representing an amount for Cuba to be purchased from other countries until such time as diplomatic relations with Cuba are resumed. (d) Reduced the premium over world prices which accrues to foreign suppliers. Provision is made for full recapture of the premium on "global quota" sugar and for a graduated recapture of 10 percent of the premium in 1962 to 30 percent in 1964 on sugar within individual country quotas. The premium recapture will be deposited in the U.S. Treasury through levy of an import fee. 2. Public Law 87-539 made provision for additional quotas and the allocation of quota deficits to Western Hemisphere countries. The President has authorized additional quotas for Argentina and the Dominican Republic under authority of this law. Requirements, quotas, and marketing allotments Sugar requirements, quotas, and nonquota purchase allocations for the calendar year 1961-62 are shown in the following table: Total quotas. Authorized nonquota purchase allocation under sec. 408 (b) of the act.. Cuban reserve (global) quota (July-December). Total requirements.... 17,330 111.000 980,000 1,120,000 371,305 1,217,606 1 Adjusted for deficits. Unadjusted quotas were: Domestic beet area, 2,795,769; mainland cane sugar area, 944.231; Hawaii. 1,110,000; Puerto Rico, 1,140,000; Virgin Islands, 15,000: short tons, raw value. 2 Adjusted for deficits. Unadjusted quotas were: Hawaii, 1,215,410 and Puerto Rico, 1,270,865 short tons, raw value. 1. Domestic sugar prices.-An important objective of the sugar program is to stabilize prices to U.S. consumers, which fluctuated violently prior to enactment of the first Sugar Act. The monthly average wholesale price of refined cane sugar at New York, during the 1962 fiscal year, ranged from a high of 9.60 cents per pound in April, May, and June of 1962, to a low of 9.19 cents in October and November 1961. The average price for the year was 9.41 cents per pound compared to 9.56 cents for fiscal year 1961. 2. Marketing allotments.-Section 205 (a) of the act provides that the quotas for an area shall be allotted to persons who market or import sugar when found necessary to insure orderly marketing and to afford interested persons an equitable opportunity to market sugar within such quota. |