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1964

estimate

50,950

SUGAR ACT PROGRAM

For necessary expenses to carry into effect the provisions of the Sugar Act of 1948 (7 U.S.C. 1101-1161), [$77,650,000 $80,000,000, to remain available until June 30 of the next succeeding fiscal year. (76 Stat. 156-167, 169-170: Department of Agriculture and Related Agencies Appropriation Act, 1963.)

Program and Financing (in thousands of dollars)

1962 actual

1963 1964 estimate estimate

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42,306 43,182
10,860 13,074
22,589 21,394

44,985 9,606 25,409

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80,000

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78,000 77,650 80,000

until December 31 of the next succeeding fiscal year for compliance with the programs of soil-building and soil- and water-conserving practices authorized under this head in the Department of Agriculture and Related Agencies Appropriation Acts, [1961] 1962 and [1962] 1963, carried out during the period July 1, [1960] 1961, to December 31, [1962] 1963, inclusive: Provided, That none of the funds herein appropriated shall be used to pay the salaries or expenses of any regional information employees or any State information employees, but this shall not preclude the answering of inquiries or supplying of information at the county level to individual farmers: [Provided further, That no portion of the funds for the 1963 program may be utilized to provide financial or technical assistance for drainage on wetlands now designated as Wetland Types 3 (III), 4 (IV), and 5 (V) in United States Department of the Interior, Fish and Wildlife Service Circular 39, Wetlands of the United States, 1956:] Provided further, That necessary amounts shall be available for administrative expenses in connection with the formulation and administration of the [1963] 1964 program of soil-building and soil- and water-conserving practices, including related wildlife conserving practices, under the Act of February 29, 1936, as amended (amounting to [$250,000,000, $150,000,000, including administration, except that no participant shall receive more than $2,500, except where the participants from two or more farms or ranches join to carry out approved practices designed to conserve or improve the agricultural resources of the community): Provided further, That not to exceed 5 per centum of the allocation for the [1963] 1964 agricultural conservation program for any county may, on the recommendation of such county committee and approval of the State committee, be withheld and allotted to the Soil Conservation Service for services of its technicians in formulating and carrying out the agricultural conservation program in the participating counties, and shall not be utilized by the Soil Conservation Service for any purpose other than technical and other assistance in such counties, and in addition, on the recommendation of such county committee and approval of the State committee, not to exceed 1 per centum may be made available to any other Federal, State, or local public agency for the same purpose and under the same conditions: Provided further, That for the [1963] 1964 program $2,500,000 shall be available for technical assistance in formulating and carrying out agricultural conservation practices: Provided further, That such amounts shall be available for the purchase of seeds, fertilizers, lime, trees, or any other farming material, or any soil-terracing services, and making grants thereof to agricultural producers to aid them in carrying out farming practices approved by the Secretary under programs provided for herein: Provided further, That no part of any funds available to the Department, or any bureau, office, corporation, or other agency constituting a part of such Department, shall be used in the current fiscal year for the payment of salary or travel expenses of any person who has been convicted of violating the Act entitled "An Act to prevent pernicious political activities", approved August 2, 1939, as amended, or who has been found in accordance with the provisions of title 18, United States Code, section 1913, to have violated or attempted to violate such section which prohibits the use of Federal appropriations for the payment of personal services or other expenses designed to influence in any manner a Member of Congress to favor or oppose any legislation or appropriation by Congress except upon request of any Member or through the proper official channels. (76 Stat. 605-607, 612-614, 631, 696-697; Department of Agriculture and Related Agencies Appropriation Act, 1968.)

Total U.S. requirements and quotas are determined to provide consumers with adequate supplies of sugar at reasonable prices, to protect the domestic sugar industry, and to promote the export trade of the United States. The quota for each domestic area is allotted to individual sellers when necessary to achieve orderly marketing, and restrictive farm acreage allotments are established for producers when necessary to avoid surpluses.

Recent legislative changes in the Sugar Act increased quotas for domestic producing areas, established specific foreign quotas, plus a global quota on which the premium over world prices paid to foreign suppliers was reduced.

Payments are made to domestic producers of cane and beets (a) for compliance with specified conditions of employment, production and price; and (b) for abandonment of planted acreage and crop deficiencies on harvested acreage due to natural calamities.

The increase of $2.3 million as proposed for 1964 is due principally to increased conditional payments to sugar producers. If later production estimates confirm current forecasts, consideration may need to be given to a supplemental estimate for 1964.

Estimated production by areas is shown in the following

table:

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2,425

2,650

2,900

858

1,000

1,000

1,092

1,100

1,150

1,010

1,200

1,200

17

11

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5,402

5,961

6,265

1. Cost-sharing assistance to farmers...
2. Repayment of loans from Commodity
Credit Corporation....

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3. Adjustment of prior year costs..

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AGRICULTURAL CONSERVATION PROGRAM

For necessary expenses to carry into effect the program authorized in sections 7 to 15, 16(a), and 17 of the Soil Conservation and Domestic Allotment Act, approved February 29, 1936, as amended (16 U.S.C. 590g-590(o), 590p(a), and 590q), including not to exceed displays at State, interstate, and international fairs within the

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3 Reimbursements from non-Federal sources above are from proceeds of sale of aerial photographs (7 U.S.C. 1387).

This program is designed to encourage conservation by sharing with farmers and ranchers the cost of carrying out. approved soil-building and soil- and water-conserving practices, including related wildlife-conserving practices, which farmers generally would not perform to the needed extent with their own resources. The rate of cost-sharing which may be given in the form of conservation materials and services or a payment after completion of the practice, averages approximately 50% of the cost.

Conservation measures for which cost-sharing is offered include those which are primarily for (1) establishment of permanent protective cover, (2) improvement and protection of established vegetative cover, (3) conservation and disposal of water, (4) establishment of temporary vegetative cover, (5) temporary protection of soil from wind and water erosion, and (6) benefits to wildlife.

Interest..

A level of $150 million for the 1964 program is proposed, a reduction of $100 million below the 1963 program. Payments for the 1964 program will be made from the 1965 appropriation.

Object Classification (in thousands of dollars)

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acres__
acres__

41 Grants, subsidies, and contributions..
Total obligations...

Under the 1961 program, new or additional practices Reimbursable obligations: were established on 1,216,556 farms and ranches, consisting of 182,000,000 acres of cropland and 433,000,000 acres of farmland. This compares with 1,029,279 farms and ranches, comprised of 152,000,000 acres of farmland on which practices were established under the 1960 program. The following practices, along with others, were installed under the 1961 program:1

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Liming materials applied for soil conserving crops..

All vegetative cover..

Control of competitive shrubs on range or pasture.

336 256

tons.. 16,746 acres. 16,055 acres.. 2,209

Funds are distributed among the States on the basis of conservation needs. They are, in turn, distributed by the agricultural stabilization and conservation State com

1 Preliminary estimates.

CONSERVATION RESERVE PROGRAM

For necessary expenses to carry out a conservation reserve program as authorized by subtitles B and C of the Soil Bank Act (7 U.S.C. 1831-1837, 1802-1814, and 1816), and to carry out liquidation activities for the acreage reserve program, to remain available until expended, [$300,000,000] $294,000,000, with which may be merged the unexpended balances of funds heretofore appropriated for soil bank programs: Provided, That no part of these funds shall be paid on any contract which is illegal under the law due to the division of lands for the purpose of evading limits on

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This program, initiated in 1956, has as its objectives (1) the adjustment of total crop acreage more nearly in line with demand by withdrawing cropland from production, and (2) establishment and maintenance of sound conservation practices on the land withdrawn. The Secretary was authorized, through calendar year 1960, to enter into 3to 15-year contracts with producers. In return for removing designated cropland from production and for establishing necessary conservation practices, the producer receives an annual rental payment each year of the contract period, and cost-sharing assistance for the establishment of the required practices. Total annual rental payments to a producer are limited to $5 thousand. supplemental appropriation for 1963 is anticipated for separate transmittal.

Participation in the program is summarized below:

Number of contracts, 1962 program..

Number of acres, 1962 program.......

Payments made in program year 1961, estimated_

Estimated payments to be made in program year 1962:

To be paid from fiscal year 1963 appropriation

To be paid from other funds or deferred until fiscal year 1964_..

Object Classification (in thousands of dollars)

A

269,644 25,655,625 $332,673,108

$300,000,000

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EMERGENCY CONSERVATION MEASURES Program and Financing (in thousands of dollars)

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Cost-sharing assistance (up to 80% of the cost of carrying out approved practices) is offered to assist and encourage farmers to rehabilitate farm lands damaged by natural disasters.

Legislation provides that assistance will be made available only when, as a result of wind erosion, floods, hurricanes, or other natural disasters, new conservation problems are created which (1) if not treated, will impair or endanger the land, (2) materially affect the productive capacity of the land, (3) represent damage which is unusual in character and, except for wind erosion, is not the type which would recur frequently in the same area, and (4) will be so costly to rehabilitate that Federal assistance is or will be required to return the land to productive agricultural use.

Funds for emergency cost-sharing assistance are distributed among States on the basis of needs for restoration of damaged lands.

LAND-USE ADJUSTMENT PROGRAM

For necessary expenses to promote the conservation and economic use of land pursuant to the provisions of section 16(e) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h, 590p), as amended by the Act of September 27, 1962 (76 Stat. 606), $27,000,000, to remain available until expended.

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This program provides for long-range agreements with farm and ranch owners and operators to make changes in their cropping systems and land-uses to (1) change permanently to better productive use cropland that is not well suited for crop use, and (2) temporarily shift to better productive use land that is suitable for crop use but not currently needed for crops.

The agreements provide for payinents, the furnishing of materials and services, and other assistance to farmers in consideration of their obligations to change the land use and to install and maintain conservation practices. The agreements are limited to a maximum of 10 years, except that those providing for tree cover may not provide for annual payments for more than 5 years.

The legislation limits the assistance to farmers to $10 million for any calendar year. In addition, it provides for extension of expiring contracts under the conservation reserve program, but limits assistance to farmers for this purpose to calendar year 1963 and to not more than $15 million. A supplemental appropriation for 1963 is anticipated for separate transmittal.

Proposed for separate transmittal:

LAND-USE ADJUSTMENT PROGRAM
Program and Financing (in thousands of dollars)

1962 actual

1963 estimate

Program by activities:

Cost-sharing and technical assistance (costsobligations)

Financing:

New obligational authority (proposed supplemental appropriation).

6,000

6,000

1964 estimate

Intragovernmental funds:

ADMINISTRATIVE EXPENSES, SECTION 392, AGRICULTURAL

ADJUSTMENT ACT OF 1938

Note. Obligations for administrative expenses of the ASCS National and State offices incurred from several appropriations previously advanced to this account are shown in the schedule Expenses, Agricultural Stabilization and Conservation Service.

LOCAL ADMINISTRATION, SECTION 388, AGRICULTURAL ADJUSTMENT
ACT OF 1938

Note. Obligations for the expenses of the agricultural stabilization and conservation committees incurred from several appropriations previously advanced to this account are shown in the schedule Expenses, Agricultural Stabilization and Conservation Service.

FOREIGN ASSISTANCE PROGRAMS

A number of statutes provide for the facilities of the Commodity Credit Corporation to be used in carrying out programs for the exportation of surplus agricultural commodities thereunder and authorize appropriations to reimburse the Corporation for costs incurred in connection with such programs.

Prior to 1962, the Corporation was reimbursed for the costs of these activities by direct appropriations subsequent to incurrence of the costs. Beginning in 1962, the Congress appropriated funds for estimated costs of these activities on a pay-as-you-go basis. Advances are made to the Corporation each month for estimated costs incurred. Subsequent requests will include funds for each ensuing year on the same basis as for other programs of the Department.

Although the appropriations are made in a specified amount for these programs, the Congress has recognized the fact that the appropriation is not fully controlling since authority under basic law permits the Government to enter into agreements and commit the Government to expenditures which must be financed from subsequent appropriations. If the amounts appropriated prove to be inadequate, the Commodity Credit Corporation will still Under existing legislation, 1963.-The proposed supple- finance authorized costs which may be in excess of the apmental appropriation is to initiate cost-sharing and tech-propriations provided and subsequent appropriations nical assistance to producers under long-term agreements would include such additional amounts used. On the to conserve and develop soil, water, forest, wildlife, and other hand, any unused appropriations, which remain recreation resources. available until expended, will be used to reduce the subsequent appropriation requests for these programs. Activities are currently being carried out under these programs pursuant to the following specific authorizations: Public Law 480: Sale of surplus agricultural commodities for foreign currencies (title I); Commodities disposed of for emergency famine relief to friendly peoples (title II); Long-term supply contracts (title IV).

ACREAGE ALLOTMENTS AND MARKETING QUOTAS
Program and Financing (in thousands of dollars)

1962 actual

1963 estimate

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1964 estimate

International Wheat Agreement Act.

Bartered materials for supplemental stockpile (Agricultural Act of 1956, title II).

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is to

General and special funds:

PUBLIC LAW 480

For expenses during fiscal year [1963] 1964, not otherwise recoverable, and unrecovered prior years' costs, including interest thereon, under the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1701-1709, 1721-1724, 17311736), to remain available until expended, as follows: (1) Sale of surplus agricultural commodities for foreign currencies pursuant to title I of said Act, [$1,080,632,000 $1,960,172,000; (2) commodities disposed of for emergency famine relief to friendly peoples pursuant to title II of said Act, [$250,000,000] $215,451,000; and (3) longterm supply contracts pursuant to title IV of said Act, [$40,000,000] $79,000,000. (76 Stat. 610-611; Department of Agriculture and Related Agencies Appropriation Act, 1963.)

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used for military family housing from quarters allowances
and net rental receipts from such housing.

Through June 30, 1962, a total of 310 agreements, or
supplements to agreements, had been signed with 44
countries for commodities representing an export market
value of $8,115.6 million including ocean transportation of
$895.8 million. The major commodities included were
wheat, cotton, and fats and oils which together amounted
to 73% of the total market value of the agreements.
Through that date commodities with an export market
value of about $5,578.7 million had been shipped. The
total dollar equivalent of foreign currencies deposited in
the Treasury through June 30, 1962, amounted to $5,775.9
million.

Appropriations are authorized to reimburse the Corporation for its net costs in carrying out this program. Through December 31, 1961, a total of $11.25 billion was so authorized.

Public Law 87-128, approved August 8, 1961, provides a limitation of $4.5 billion for a 3-year period January 1, 1962, through December 31, 1964, and a proviso limiting to $2.5 billion that amount that may be appropriated in any calendar year to reimburse the Commodity Credit Corporation.

The following reflects the composition of the appropriations for fiscal years 1962, 1963, and 1964.

[In thousands of dollars]

Expenses of shipments:
Commodity Credit Corporation stocks..........
Private stocks and ocean transportation...

Total expenses of shipments......
Interest expense on unrecovered balance.............

Total expenses.
Recoveries from sales of currencies, rental re-
ceipts and loan repayments.......
Subtotal..

1. Sale of surplus agricultural commodities for foreign currencies.-Under the Agricultural Trade Development and Assistance Act, as amended (7 U.S.C. 1701-1709), surplus agricultural commodities are sold for foreign currencies. These currencies may then be used within certain limitations by the United States Government for agri- Change in currencies to be sold for dollars in cultural market development, purchase of strategic materials, military equipment, facilities, and services for the common defense, payment of U.S. obligations, military housing, and other specified purposes.

If regular appropriations are available for any unrestricted purpose for which foreign currencies are used, the agency must buy the currency for dollars which are credited to the Commodity Credit Corporation. Special appropriations have been made for uses of foreign currencies in excess of amounts needed for regular operations or where use of currencies is restricted by international agreement or understanding. As these currencies are used, the Corporation will receive reimbursement therefor from these appropriations. The budget estimate proposes the application in 1964 of such proceeds from sales of foreign currencies to the reduction of unrecovered prior years' costs rather than to the reduction of the appropriation request. The Budget estimate proposes, in addition, that dollar repayments received by Commodity Credit Corporation in fiscal year 1963 of foreign currency loans made under section 104 of the Agricultural Trade Development and Assistance Act be applied to the reduction of unrecovered prior years' costs.

Section 509 of Public Law 86-500, approved June 8, 1960 (74 Stat. 186), provides that at least 75% of the total cost of any family housing project or community facility hereafter constructed or acquired in any foreign country with certain specific exceptions) by any military departnent shall be paid for from foreign currencies acquired by the Corporation under title I. The Department of Defense reimburses the Corporation for foreign currencies

650100-63-9

future years..

Net expenses-current year's costs recoverable from appropriations Unrecovered prior year costs financed by CCC borrowing authority:

1961.

1962_

1963.

Appropriation or estimate......

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The following table reflects the net costs incurred by fiscal years (in thousands of dollars):

1955.

1956.

1957.

1958

1959

1960.

1961

1962.
1963 (estimate).
1964 (estimate).

Cumulative totals...
Deduct sales of currencies, rental collec-
tions from Defense Department and
loan repayments...

Net costs..

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Unreimbursed costs, June 30, 1964, representing foreign currencies
Appropriations through June 30, 1964

to be sold in future years and amounts due from rental receipts
(financed by CCC borrowing authority)..

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