The third statement, given in table 35, exhibits in summary form the estimated collections and expenditures for production control programs, classified by character of collections and expenditures and by fiscal years. This statement embodies estimates used in the preparation of material for the 1935 Budget. It differs from the second statement in that it extends into the fiscal year 1936, and subsequent years, and covers not only programs now in operation but, as well, assumes a repetition of such programs at the conclusion of existing ones. Such an assumption was made for budgetary purposes because it is not practicable at the present time to plan in detail programs to be put into effect so far in advance. Because of the inclusion in the third statement of additional data based upon the assumption that the approved production programs set forth in the second statement will be repeated, figures in the two statements are not comparable. Collections in the fiscal years 1934 and 1935, as shown in the third statement, are greater than those for the same period in the second statement, due to the fact that if existing programs are repeated, as assumed in the third statement, the amount of tax refunds will be smaller in the fiscal year 1935 and net collections will be correspondingly greater. Expense items for the fiscal years 1934 and 1935 are also altered by the assumption that existing programs will be repeated. The table shows that there is anticipated an excess of expenditures in 1934 and 1935 but that for 1936 and subsequent years there will be an unexpended balance. The total of all the programs results in an excess of expenditures of $3,677,034. This excess, should it materialize, will need to be met from the permanent appropriation under section 12 (2) of the Agricultural Adjustment Act, made available to the Secretary of Agriculture for administration expenses and for rental and benefit payments. All figures in this table are purely estimates and are the nearest approximation that can be made of the outcome of these programs at the present time. It is probable that subsequent developments will make it desirable to alter programs now envisaged or to undertake new ones. For instance, the dairy program, as indicated in the previous discussion, will, when developed, probably involve substantial adjustment of the estimated collections and expenditures shown in the statement. No estimate of administrative expenses for periods subsequent to 1935 has been made, as the amount of such expenses will depend largely upon what programs are developed and initiated in those periods. TABLE 35.-Summary of estimated collections and expenditures for production control programs used in preparation of 1935 budget The fourth statement given in table 36 sets forth the proposed operations under the $100,000,000 appropriation made available to the Secretary of Agriculture for administrative expenses and for rental and benefit payments that may be made with respect to reduction of acreage or reduction of production for market, under section 12 (a) of the Agricultural Adjustment Act. This is a permanent appropriation and will remain available until expended. During the fiscal years 1934 and 1935, no expenditures are expected to be made from this appropriation except for those salaries and expenses incurred in the general administration of the act which are not directly connected with basic commodity control programs. All expenses so connected with control programs are expected to be paid from the proceeds of processing taxes. TABLE 36.—Summary of estimated administrative expenses payable from $100,000,000 permanent appropriation There is given in table 37 a statement of the actual collections of taxes under the Agricultural Adjustment Act received by the Treasury up to and including December 31, 1933. The figures are gross without deduction of certain refunds authorized by law. Up to December 31 a total of $49,958 had been so refunded. Also, it should be noted that eventually an amount approximately equivalent to collections with respect to floor taxes, will be refunded. Comparison of this statement with the first and second statements shows that collections of taxes are still well under advances from the Treasury in anticipation of the collection of taxes. They amount to only a small portion of anticipated receipts during the period that the programs will be in effect as estimated for budgetary purposes. Extensions of time in making tax payments, as permitted under the act, mean that these tax collections represent as yet only a portion of the taxes due and payable on commodities processed prior to December 31, 1933. TABLE 37.-Summary of tax collections to Dec. 31, 1933 (preliminary statement) Total $50, 721, 631. 29 3, 160, 293. 98 $35, 627, 318. 00 $11, 457. 34 $10, 523, 729. 60 42, 445, 760. 79 1,491, 023. 13 -96, 877.42 $2, 563, 840. 47 $1,995, 285.88 2,940. 73 13, 853.99 101.34 140, 401, 194. 44 65, 491, 206. 92 539, 847. 65 58, 246, 382. 71 12, 717, 429. 51 3, 406, 327. 65 1 Unclassified or collections received in advance of assessment are allocated to commodities on a percentage basis. In addition to the five statements exhibited in this chapter, other statements are included in the appendix to supply detailed supporting data for the estimates of receipts and expenditures covering the commodity programs either in effect or about to go into effect, and for actual receipts and expenditures of the Agricultural Adjustment Administration. APPENDICES APPENDIX A.-BUDGET ESTIMATES There are presented below tabulations supplementing the Financial Report, giving in detail estimated receipts and expenditures in connection with production control and surplus removal plans. They are designed to show the income and expenditures in connection with each of the programs in such a way as to bring out the financial results in each case. The appropriation of $100,000,000 provided for by section 12 (a) of the Agricultural Adjustment Act is not included in these tables. Preparation of a budget covering the prospective financial activities of the Agricultural Adjustment Administration during the 1934 and 1935 fiscal years required (1) consideration of activities currently in progress, and (2) recognition of possible future activities. Exhibits 1, 2, 3, and 4, appended hereto, set forth in detail estimated financial transactions in connection with the programs now in progress with respect to cotton, wheat, corn-hogs, and tobacco. These tabulations were prepared on the basis of programs actually approved and, as indicated in the Financial Report, do not reflect any transactions which may result from continuing payments to producers beyond the initial period provided for in the individual programs. These four exhibits were used as a basis for preparation of the 1935 budget for the Department of Agriculture. However, when the budget was prepared (in mid-December) a plan was tentatively under consideration for the levying of a processing tax on milk and its products, and expenditures had already been made for the removal of surplus butter. This tentative plan called for a tax sufficient to produce about $24,500,000 annually, to be available for costs of removal of surplus or rental payments. It was thought desirable to recognize this tentative plan. The second of the 5 statements in the Financial Report summarizes the 4 exhibits of appendix A, referred to above, and also the tentative milk program, thus setting forth all of the estimated receipts and expenditures in connection with commodity programs in effect or in process of development at the time the budget was prepared. This statement also sets forth estimated administrative expenses in connection with the development and execution of such programs, and the receipt of $3,000,000 which it was anticipated would be refunded to the Secretary by the Federal Surplus Relief Corporation for dry salt pork produced under the emergency hog program and delivered to the Federal Emergency Relief Administration. In preparing the 1935 budget, it was necessary to estimate what activities would be carried on at the completion of the current programs, some of which provide for their extension under certain conditions. It was concluded, therefore, that for budgetary purposes the following assumptions would be used: 1. The 1934 cotton acreage reduction program would be repeated in 1935. 2. Wheat payments would be made in 1935 with respect to the 1934 crop equal to those being made in 1934 with respect to the 1933 crop. 3. The corn-hog program would be repeated except as to the emergency hog purchase of last autumn, which involved approximately $35,000,000. 4. Payments in consideration of reduction of tobacco production would be continued for the 1935 crop. 5. The tentative dairy program would be repeated. 6. Processing tax levies would be correspondingly extended. Exhibit 5 sets forth the adjustments made to the statement referred to above, in order to reflect these assumptions. The adjusted totals of receipts and expenditures, as shown in exhibit 5, appended hereto, have been tabulated according to the fiscal years in which they will occur, as shown in the third statement given in the Financial Report. It should be borne in mind when considering the figures contained in this appendix, as well as budget estimates in the Financial Report, that they represent merely the best estimate that could be made at the time of preparation of the 1935 budget. Covering, as they do, several years, the estimates will necessarily be subject to future modification. It is highly probable that changes will be effected as a result of circumstances which could not be forseen in advance. |