ESTIMATED PLANTINGS OF GUAYULE Mr. TABER. How many acres do you expect to plant with all the funds you have? Mr. GRANGER. About 32,000 acres of land. That is smaller than we previously anticipated, but we are now using irrigated land, and will reduce the spacing. Instead of planting 8,000 guayule plants per acre, we will be planting 11,500 plants per acre. Mr. TABER. Did you not say you would plant 50,000 acres? Mr. TABER. That is what you said when you were here the last time. Mr. GRANGER. Yes, sir. Since then we have changed to irrigated land, with closer spacing. Mr. TABER. You have boosted your cost figure from 22 cents to 44 cents; how do you get that? Mr. GRANGER. I did not say it would cost 44 cents. I said it might cost double what we previously estimated. We did encounter factors that ran us into higer costs than were in the factors making up the original figure, which we simply inherited from the private outfits in this field before we bought them out. Since that time labor costs have gone up, and land rentals are considerably higher than we anticipated. Mr. TABER. On the other hand, your volume picture, under your original plan, is about what you plan in this picture. This cost of planting refers to the expanded program? Mr. GRANGER. Yes, sir. This expanded program will involve plantations totaling about 207,000 acres. Mr. TABER. At the present time, you are planning on planting 33,000 acres with the $19,000,000; is that it? Mr. GRANGER. No, sir. Mr. TABER. With $13,000,000? Mr. GRANGER. Yes, sir; 32,000 acres. Mr. TABER. With that, you only got 33,000 acres. On that basis you would not get over 100,000 acres with the $19,000,000, if your operation is on that basis. Mr. GRANGER. Yes, sir; I think we will get what we planned with $19,000,000. Mr. TABER. Will you go to 200,000 acres? Mr. GRANGER. No, sir; not with $19,000,000. The $19,000,000 is for only part of the new program, and it covers new nurseries and equipment and other items besides plantations. Mr. TABER. You are going from 33,000 acres to 208,000, which is an increase of 175,000 acres, with $19,000,000, and the 33,000 acres will cost $8,500,000. Mr. GRANGER. I think I must have misunderstood your question. Mr. TABER. There must be something the matter with the amount of $8,500,000 expenditure, or else there is something the matter with the other figure. Mr. GRANGER. We will not get 207,000 acres with the $19,000,000. That will run us into the next fiscal year. Mr. TABER. How much additional do you expect to get with the $19,000,000? Mr. GRANGER. We expect to plant an additional 56,000 acres this spring, and instead of planting 32,000 acres, we will plant 88,000 acres in the spring of 1943. Mr. TABER. You had only $8,500,000 for 33,000 acres, and your 56,000 acres will cost $19,000,000. Naturally, if you have anything like what you are planning to do with the $8,500,000, we would expect, at least, an additional 80,000 acres. What is the matter with these figures? Mr. GRANGER. I think the figures are all right. You have not considered all the items that the $19,000,000 covers. That covers not only the planting of 56,000 acres, but it covers the establishment of 31,000 new seed beds. We have now 12,000 seed beds. This covers the equipment required for the 31,000 seed beds; and other things. Mr. TABER. In connection with the 56,000 acres? Mr. GRANGER. Yes, sir. Mr. WIGGLESWORTH. Do you have the same type of expenditure under this program that you have had for the present program? Mr. GRANGER. We will have to go through with the same type of expenditure for this program. DATA ON PRESENT AND PROPOSED GUAYULE PROGRAM Mr. WOODRUM. I think it would be helpful if you would furnish for the record a breakdown showing in a consolidated statement the total amount of money you have had, including the amount in this estimate and the amount already granted, and showing also the total number of acres, total number of seed beds, and so forth, involved. Mr. GRANGER. You want it shown in greater detail than it appears here? Mr. WOODRUM. Yes; furnish a consolidated statement of what has been previously appropriated for this purpose, and covering what is contained here in this estimate. Give us a consolidated statement or breakdown of it. Mr. GRANGER. We will supply that for the record. (The statement requested is as follows:) 4 Guayule program classified by previous and proposed supplemental appropriations Previous appropriations ($13,035,000) Proposed supplemental appropriation ($19,000,000) EXPANDED PROGRAM Nurseries: PRESENT PROGRAM 1 (a) Established in spring of 1942, sowed, and cultivated 11,750 new seedbeds (each 4 by 400 feet) in Salinas Valley. (b) Resow during 1943 spring and cultivate the same seedbeds as in 1 (a) to June 30, 1943. Plantations: 2 (a) Established during 1942 spring about 900 acres of field plantations with seedlings in Salinas nursery acquired from Intercontinental Rubber Co. (b) Establish in 1943 spring about 32,000 acres of field plantations with 350,000,000 seedlings produced by Salinas Valley nurseries 1 (a). Physical improvements: 3 (a) Purchased Intercontinental Rubber Co. rights, properties, and facilities. (b) Constructed and equipped 1,000man labor camp in 1942 spring. (c) Built and equipped seed-processing plant 80 by 108 feet. (d) Reconditioned Salinas factory to permit fall 1942 processing of mature shrub estimated to produce about 600 short tons of nonderesinated natural rubber. (e) Improved pilot mill for testing more efficiently the rubber content of various types and species of rubberbearing plants. Experimental plantings: Eighty-five indicator plots averaging 1 acre each established in 1942 spring to help locate new areas suitable for guayule culture in California, Arizona, New Mexico, and Texas. Seed collection: Picked about 132,000 pounds of seed during 1942 summer-sufficient to provide for 5-time expansion of "base program." Nurseries: 1 (a) Establish and sow in 1942 fall 20,000 new seedbeds in southern California. (b) Resow same seedbeds in 1943 spring. (c) Establish 1 and sow in 1943 spring 11,000 additional new seedbeds in central California. Plantations: 2 (a) Establish during 1943 spring 56,000 acres of field plantations with 620,000,000 seedlings produced by southern California nurseries 1 (a). Physical improvements: 3 (a) Construct and equip in 1942-43 fall and winter labor camps for 11,000 workers. (b) Construct about 56 equipment sheds for plantations. (c) Construct nursery buildings, warehouses, equipment and packing sheds, pumphouses, office buildings, seed-cleaning and storage buildings. (d) Construct 10 equipment repair shops, oil houses. Experimental plantings: Establish, maintain, and examine 66 additional experimental plantings and test plots in Arizona, New Mexico, and Texas. Plots to total about 790 acres, range from 10 to 100 acres. Seed collection: Begin to collect seed in June 1943 to help provide a substantial supply for resowing existing or additional nurseries, should conditions warrant further expansion. 1 Establishing new seedbeds involves ground preparation, installation of complex irrigation systems with underground water mains and overhead sprinkler pipes, construction of fence windbreaks, procurement of equipment, etc. The 31,000 new seedbeds contemplated under the expanded program, if laid out in a continuous strip 4 feet wide, would extend 2,500 miles. 1 Transportation of things: Miscellaneous transportation items.. Total 2 Rents and utilities service: Rental of nursery land (1,200 acres for 91⁄2 months at an average annual rate of $65 per Rental of experimental plots (790 acres for 6 months at annual rental rate of $30 per acre). Total. 3 Other contractual services: Ground preparation and cultivation (it is planned to perform as much of this work as Installation of overhead irrigation systems and other nursery improvements. Work to Total. 4 Supplies and materials: Supplies and material for construction of overhead irrigation system in nurseries, such as Total.. Emergency rubber project, Department of Agriculture-Continued DISTRIBUTION OF ESTIMATE Mr. TABER. You will insert the table or statement that appears in the justification, also. Mr. GRANGER. I will do so. (The statement requested is as follows:) ESTIMATES FOR EXPANSION OF THE GUAYULE PROJECT-FISCAL YEAR 1943 This estimate covers the additional funds required in the fiscal year 1943 for the expansion of the emergency rubber project to provide for the utilization of all available guayule seed (approximately 60 tons). The additions to the existing programs will consist of sowing 20,000 seedbeds in southern California this fall, planting 56,000 acres of plantations next spring with the seedlings secured therefrom and resowing these 20,000 seedbeds next spring, and the establishment and sowing of 11,000 additional nursery beds in central California next spring. These activities may be itemized as follows: 1. Southern California nurseries: (a) Rental of 1,200 acres of suitable land at an average rate of (b) Establishment of 20,000 seedbeds in fall including ground (c) Care and maintenance of 20,000 seedbeds and lifting of (d) Resowing of 20,000 seedbeds in spring (e) Care and maintenance of 20,000 seedbeds from spring sowing Footnotes-Continued. $60,000 2,821, 100 3, 429, 500 50,000 1, 409, 000 Equipment: Tools and equipment for 10 equipment repair shops-hoists, presses, analyzers, battery • Lands and structures: Equipment sheds for housing plantation equipment and tools-trucks, tractors, culti- Work camps for 11,000 men. These camps proposed in strategical locations after land for Total... $1,459, 490 487,920 435,000 100,000 69, 284 2,551, 694 $92, 000 80,000 2,600,000 2,772, 000 |