STRATEGIC AND CRITICAL MATERIALS On hand, start of year, gross... Acquisitions: Delivered by barter contractors. Carrying charges: Storage and handling. Total, carrying charges... Total acquisitions...... 150,908 173,481 913,475 -33,675 Total, sales and transfers..... 2,059,053 Total, dispositions... 2,697,088 On hand, end of year, gross.. 4,330,133 On hand, end of year, net....... 3,466,542 Dispositions: Supplemental stockpile.... Difference between cost and transfer value..... Total dispositions. On hand, end of year, gross.... 1964 actual 1965 estimate 1966 estimate 66.363 72,000 99,468 453,632 150,057 13,331 13 716,501 10,487 34.730 (1,367) (375) (1,742) 34,730 37,665 12 -667 37,010 8,207 57,172 97,400 22,100 209,657 140,863 41,415 414,075 40 191.790 275,900 373,900 778,546 86,404 2,275,187 2,709,595 4,005,791 798,526 3,207,265 8,207 75,793 (1,662) (938) (2,600) 75,793 80,033 -3,033 77,000 7,000 50,757 70,093 21,600 195,164 217,007 40 478,457 280,987 324,900 356,200 587,807 83,276 2,232,477 2,506,659 3,492,724 698,500 2,794,224 7,000 71,600 (1,200) (1,600) (2,800) 71,600 75,000 -2,400 72,600 6,000 activities, services performed by the Foreign Agricultural Service and other agencies of the Department, costs of audit, and payments to the General Services Administration for space in the District of Columbia and rent of field office space. Estimates for 1966 include a limitation of $36.7 million for costs of administration including a reserve of not less than 7% for contingencies. The requested authorization excludes administrative expenses in connection with the supply program, the wool and mohair program under the National Wool Act of 1954, the International Wheat Agreement, and the sale of long-staple cotton transferred from the national stockpile. It is contemplated that full reimbursement for these expenses will be obtained and used in 1966 in the same manner as in prior years. Expenses of acquisition, operation, maintenance, improvement, or disposition of property which the Corporation owns or in which it has an interest have been treated as program rather than administrative expenses. Such expenses include inspection, classing, and grading work performed on a fee basis by Federal employees or Federal or State licensed inspectors and work performed on a contract or fee basis by Agricultural Stabilization and Conservation County Committees. Capital funds of the Corporation are transferred to the appropriation, Expenses, Agricultural Stabilization and Conservation Service as indicated under that appropriation item for operating expenses relating to the Corporation's programs. Also, expenses of other Federal agencies whose services are used in the handling of Corporation property are treated as program expenses, such as the services of the General Services Administration in connection with the strategic, critical, and other materials acquired by the Corporation. SPECIAL ACTIVITIES These activities are carried out under authority of section 5(g) of the Corporation's charter and specific statutory authorizations or directives with respect thereto which are currently in effect or which may subsequently be enacted. A summary of current activities will be found on pages 159 and 160. The Corporation receives appropriations or reimbursement for costs of these activities as described under each. Activities currently being carried out are as follows: (See Foreign assistance programs and special export programs for details of items (1)–(5).) (1) Sale of surplus agricultural commodities for foreign currencies. (2) Commodities disposed of for emergency famine relief to friendly peoples. (3) Long-term credit and supply contracts. (4) International Wheat Agreement. (5) Bartered materials for supplemental stockpile. (6) Military housing (barter and exchange).-During 1957 a contract was completed for the disposition of Corporation-owned commodities valued at $50 million for the construction of military housing in France with foreign currencies obtained from this transaction. Section 2681 (b) of title 10 U.S.C., as amended, provides for payment to the Corporation of not to exceed $6 million annually until liquidation of the amounts due for such foreign currencies used in the housing construction and for additional foreign currencies obtained under Public Law 480 for military housing. It is estimated that $2 million of this will be applied against the amounts due under the Commodity Credit Corporation French housing transaction in each of 1965 and 1966. (7) National Wool Act.-Under the National Wool Act of 1954, as amended, incentive payments are being used to encourage the annual domestic production of about 300 million pounds of shorn wool. Support of prices of wool and mohair is mandatory. Incentive payments are made to eligible producers in order to bring the national average price received by all producers up to the announced incentive level. The incentive level cannot exceed 110% of parity. For the purpose of reimbursing the Corporation, section 705 of the act appropriates each fiscal year an amount equal to amounts expended by the Corporation during the preceding year but not to exceed 70% of the gross receipts of duties on wool and certain wool products imported during the preceding calendar year. În a referendum conducted in September 1962, wool and lamb producers voted to continue the deduction from their incentive payment of an amount not to exceed 1 cent per pound of wool and 5 cents per hundredweight of unshorn lambs marketed. These funds finance promotional advertising, and related market-development activities by the American Sheep Producers' Council, Inc., under an agreement with the Secretary of Agriculture. In order to simplify program and financing operations, the marketing year under this program was placed on a calendar year basis on January 1, 1964. Total payments.. Administrative expenses.. Interest expense.- Total... Fiscal year 1964 1962 marketing year (actual) 229,138 30,662 14.3 57.0 2.6 $32,767 Balance of limitation available for payments on succeeding market- (2,833) (2,100) 3,954 1,988 73,204 70% of customs receipts on wool and 685,296 164,223 13.5 54.0 $22,170 237,032 Fiscal Fiscal year 1965 year 1966 1964 1965 markel- marketing year ing year (estimate) (estimate) 218,200 212,500 1 Deduction from producer payments. Total payments made under the National Wool Act cannot at any time exceed an amount equal to 70% of the accumulated totals, as of the same date, of the gross receipts from import duties collected on and after January 1, 1953, on wool and wool manufactures. Actual and estimated payments compared with this limitation are as follows (in thousands of dollars): 1964 actual 1965 estimate 1966 estimate 289,130 11.0 14.0 44.0 56.0 $24,002 $29,750 (2,682) (2,610) 28,402 35,182 2,025 2,011 1,072 1,318 31,499 38,511 765,796 846,296 334,448 (8) Grain for migratory waterfowl feed.-To prevent damage of crops by migratory waterfowl, the Corporation is directed to furnish to the Secretary of the Interior (7 U.S.C. 442-445) such grain acquired through pricesupport operations and certified by Commodity Credit Corporation as available for such purposes or in such condition as to be undesirable for human consumption, as the Secretary of the Interior shall requisition. This appropriation item is included under that Department. (9) Surplus grain for migratory birds.-Under Public Law 87-152, approved August 17, 1961 (17 U.S.C. 448), the Secretary of the Interior may requisition grain of the Corporation to feed starving migratory birds. This appropriation item is included under that Department. (10) Surplus grain for resident game birds.-Any State, under Public Law 87-152, upon the finding of the Secretary of the Interior that resident game birds and other resident wildlife are threatened with starvation, may requisition grain from Corporation stocks (7 U.S.C. 447). Recovery of costs of grain furnished to the States is included in the appropriation Reimbursement for net realized losses. (11) Grading and classing activities. The Corporation may make advances to the Agricultural Marketing Service for classing and grading of agricultural commodities without charge to producers (7 U.S.C. 414a, 440). Such advances used for classing cotton and grading tobacco not placed under price-support loan are repaid from an appropriation of the Agricultural Marketing Service. (12) Research to increase domestic consumption of farm commodities.-The Department of Agriculture and Related Agencies Appropriation Act of 1964, Public Law 88-250, approved December 30, 1963, authorized the transfer of not more than $16 million from the appropriation, Removal of surplus agricultural commodities (sec. 32) to the Corporation to be used to increase domestic consumption of surplus farm commodities, and provided for the transfer for such purposes of such sums, not in excess of $25 million in any one year, as may be approved by Congress. The 1965 appropriation act authorized the transfer of $12,175 thousand of section 32 funds for this purpose. The Corporation transfers such funds to the Agricultural Research Service and Cooperative State Research Service to conduct the required research. For comparability, all transactions under this item are shown in the budget schedules for these two agencies. COMMODITY CREDIT CORPORATION-Continued Public enterprise funds-Continued SPECIAL ACTIVITIES-Continued (13) Research to reduce surplus commodities.-The Department of Agriculture and Related Agencies Appropriation Act of 1964 authorized Commodity Credit Corporation to transfer not to exceed $15 million to the Agricultural Research Service for utilization research and development, cost of production research, and other related research designed to reduce surplus commodities held or to be held by the Corporation. The recovery of costs of this research is included in the appropriation Reimbursement for net realized losses. (14) Soil bank program.-Under section 120 of the Agricultural Act of 1956 (7 U.S.C. 1808) the Secretary of Agriculture uses the facilities of the Corporation to make payments to farmers under this program. (15) Cropland conversion, agricultural conservation and emergency conservation measures programs.-Under section 101 of the Food and Agriculture Act of 1962, Public Law 87-703, approved September 27, 1962 (16 U.S.C. 590h(f)), the Secretary uses the services, facilities, and authorities of the Corporation to make payments to producers under programs formulated pursuant to sections 8 and 16(e) of the Soil Conservation and Domestic Allotment Act, as amended. (16) Transfer of long-staple cotton from national stockpile for sale by Commodity Credit Corporation.-The act of July 10, 1957 (71 Stat. 290), authorized the transfer of 50,000 bales of domestically grown extra long-staple cotton from the national stockpile to the Corporation for sale. Also, about 219,000 bales of extra long-staple cotton, both American-Egyptian and foreign grown, remaining in the stockpile were made available to the Corporation for disposition under Public Law 87-548, approved approved July 25, 1962. Proceeds less costs incurred, including administrative expenses, are covered into the Treasury as miscellaneous receipts. or certificates of interest issued in connection financing of price-support operations. All bond debentures, and similar obligations issued by the tion are subject to approval by the Secretar Treasury as required by the act of March 8, U.S.C. 713a-4). Interest on borrowings from the Treasury capital stock) is paid in accordance with a poli Treasury that the rate shall be based upon the interest rate on all outstanding marketable ob (of comparable maturity date) of the United Sta the preceding month. Interest is also paid on ce the agencies have their funds invested. of interest and lending agency obligations for th It is proposed to add a proviso to section terminating at the close of 1965 and each succeed act of March 8, 1938, which will have the effe year, interest on borrowings from the Treasur amount equivalent to the realized losses susta the Corporation during 1965 and succeeding fisc and (2) terminating at the close of 1964 interes reimbursed losses of 1964 and prior fiscal years, f the Corporation has not been reimbursed by ap tion. Interest would continue to be charged on ings for losses sustained during a particular fis but not after the end of that fiscal year. This wo interest expenses to borrowings for current operat would avoid increasing future appropriation req interest charges resulting solely from deferral bursement to the Corporation for realized costs ar applicable to past operations. On the basis of the budgetary assumptions de including proposed legislation, the consequent es program requirements currently indicate no need increase in borrowing authority. Since there many uncontrollable factors affecting the program Corporation involving crops which have not ev planted, it must be recognized that estimates of of borrowing authority are highly tentative. program developments occur which would indicate for funds in excess of those contained in these est or if proposals for farm legislation and interest r not enacted, additional appropriations may need requested. |
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