Legislative Summary: Agriculture


Agriculture Act of 1961 
S. 1643 - Public Law 87-128, approved August 9, 1961 
This measure, as enacted into law, extends numerous important agricultural programs such as the Great Plains conservation program, the Wool Act, and Public Law 480; it contains wheat and feed grain programs for 1962; consolidated and simplified the agricultural credit laws administered by the Farmers Home Administration; and provided for advisory consultations with farmers in developing future agricultural programs.

The major provisions are:

Title I. Supply Adjustment and Price Stabilization 
1. Consultation on agricultural programs.  - Authorized the Secretary of Agriculture to consult with farmers, farm or commodity organizations and other interested groups in developing new or revising existing agricultural programs involving supply adjustments or marketing regulations through marketing orders, quotas, or price supports. The advisory recommendations accepted would be incorporated in proposals to be submitted to Congress.

2. 1962 wheat program. - Required, as a condition for price supports, a mandatory 10 percent cut in wheat acreage allotments, with a 45 percent payment in cash or kind for diverting the 10 percent cut to soil conserving uses. Authorized an additional voluntary 30 percent diversion with payments in cash or kind of 60 percent. Any producer can divert up to the larger of (1) 40 percent of his allotment or (2) the smaller of 10 acres or the highest planted acreage of wheat in 1959, 1960, or 1961, whichever is greater. Permits advances of 50 percent to any participating producer.

Increased the farm marketing excess (the amount subject to penalty) and increased the penalty from 45 to 65 percent of parity.

Reduced the 15 acre exemption to 13 ½ acres, or the highest acreage planted for harvest in 1959, 1960, or 1961, whichever is smaller.

Repealed permanently the 200 bushel exemption from marketing quotas.

Authorized the Secretary to increase durum wheat acreage allotments if necessary to meet demand requirements - 3 year program beginning with 1962.

3. Feed grain program. - Required, as a condition of eligibility for price support, that the producer divert 20 percent of his corn, grain sorghum, or barley acreage to conserving uses in return for a 50 percent payment in cash or kind.

Authorized an additional 20 percent reduction in corn, grain sorghum, or barley acreage, with a 60 percent in kind payment.

Authorized the producers to plant castor beans, safflower, sunflower, sesame, or guarbeans on diverted acreage in lieu of payment.

Provided exemption of malting barley from the feed grain diversion program up to 110 percent of their average 1959-60 barley acreage.

Permitted the Secretary to limit participation in the feed grain program for 1962 if he determines such was necessary because of an emergency created by a drought or other disaster or to prevent or alleviate a shortage in the commodity.

4. Marketing orders. - Expands eligibility list for marketing orders to include cherries or cranberries for canning or freezing; lambs, turkeys, peanuts (but no peanut products), apples produced in Michigan, New York, New England, Maryland, New Jersey, Indiana, and California; and all other commodities not now covered except honey, cotton, rice, wheat, corn, grain sorghum, oats, barley, rye, sugarcane, sugar beets, wool, mohair, livestock, soybeans, cottonseed, flaxseed, poultry (other than turkeys), eggs (other than turkey hatching eggs), fruits and vegetables for canning or freezing (other than those specifically covered), and apples (other than those specifically covered).

Prohibits the importation of oranges, onions, walnuts and dates (other than dates for processing) which do not meet the grade, size, quality, or maturity requirements of orders applicable to the domestic commodities. At present, this restriction applies only to tomatoes, avocados, mangoes, limes, grapefruit, green peppers, Irish potatoes, cucumbers and eggplants.

5. Wool Act. - Extended the National Wool Act for 4 years through March 31, 1966.

Title II. Agricultural Trade Development 
Extended Public Law 480, the Agricultural Trade Development Act, through December 31, 1964 - a 3 year extension.

Provided title I authority of $4.5 billion for 3 years, 1962 through 1964, with a limit of $2.5 billion in any 1 year (overseas surplus commodity sales).

Authorized the use of foreign currencies for dollar sales to American tourists.

Required 5 percent of the proceeds of title I sales in each year to be set aside in amounts and kinds of foreign currencies specified by the Secretary of Agriculture for agricultural market development and required such amount of sale and loan proceeds as the secretary determines necessary, but not less than 2 percent, to be convertible into currencies of other foreign nations for market development activities countries which are or may become dollar markets.

Continued present limitation of million, plus carryovers, in surplus commodities for emergency disaster relief abroad and economic development (title II).

Title III. Agricultural Credit 
Consolidated and simplified the authorities administered by the Farmers Home Administration for real estate, operating, emergency, and water facilities' loans.

Provided a $60,000 indebtedness limit on Farmers Home Administration farm real estate loans.

Limited indebtedness of associations for soil and water conservation loans to $500,000 in direct loans, and $1 million in insured loans.

Provided for a $35,000 indebtedness limit on operating loans.

Authorized loans to soil conservation districts for purchase of conservation equipment.

Authorized emergency loans in areas suffering from natural disaster.

Title IV. General 
Extended the period for making Great Plains conservation program contracts to December 31, 1971.

Extended school milk program through June 30, 1967, to be paid by direct appropriations.

Extended Veterans Administration and armed services milk program through December 31, 1964.

Agricultural Trade - Authorization Increases 
S. 1027 - Public Law 87-28, approved May 4, 1961 
Authorizes a $2 billion increase in title I authority of Public Law 480, making a total of $3.5 billion, plus any unused authority carried over from 1960.

Title authorizes the President to enter into agreements with friendly nations or organizations of friendly nations to provide for the sale of surplus agricultural commodities for foreign currencies, which are then used for a number of purposes for the benefit of the United States and the purchasing country.

The total authorization available for calendar year 1961 was $1.5 billion, plus $335 million carried over from calendar year 1960, which had been committed. 

Agricultural Trade Development - Title II Extension 
S. 1720 - Public Law 87-92, approved July 20, 1961 
This measure continues the authority contained in title H of Public Law 480, by repealing section 601(a)(2) of the Mutual Security Act of 1960, which limited to June 30, 1961, the authority of the administration to continue and expand the use of our agricultural abundance in helping needy people in the less developed countries through development programs which are not feasible under title I of Public Law 480.

Under title II, food can be used or payment of wages-in-kind for labor intensive projects such as sold conservation dams, irrigation, and drainage canals, wells, roads, and other similar activities, which will relieve hunger and unemployment and, at the same time, contribute to the economic development of the recipient country. 

Amendments to Farm Credit Laws 
S. 1927 - Public Law 87-343, approved October 3, 1961 
Amends the farm credit laws: (1) Permits installment payments on Federal credit banks to be scheduled more frequently than semiannually if desirable to the borrower because of his income pattern. (2) Permits loans to be made to corporations, set up by farming families; now loans can be extended only to "persons." (3) Extends from 5 to 7 years the permissible maturity of intermediate term loans. (4) Requires in applying the earnings at the end of each fiscal year that one-half of 1 percent of the loans outstanding be held in reserve up to the accumulation of 3 1/2 percent of the outstanding loans; any more that might be contributed past the 3 1/2 percent would be accepted. (5) Combines the revolving funds of the production credit association, which hasn't a demand for all its funds, and the intermediate credit bank, which has need for more funds. (6) Provides for the liquidation of any assets of any cooperative association in a bank when that cooperative might disband. 

Drought Relief 
S. 2197 - Public Law 871-27, approved August 7, 1961 
To relieve the drought stricken farmer, Congress enacted a 1 year emergency program authorizing sale of Government surplus corn and feed grains to needy farmers and ranchers in drought areas at 75 percent of Government price support levels.

The act also permits grazing of livestock on grasslands idled by the soil bank and other conservation programs, or moving of hay on these lands in or near drought areas. 

Farm Operating Loans 
H.R. 1822 - Public Law 87-8, approved March 29, 1961 
To help meet the rapidly and substantially increased cost of farming, this measure amends the Bankhead-Jones Farm Tenant Act to, provide a 15 percent increase in the amount of funds which may be used for making operating loans to borrowers whose operating loan indebtedness exceeds $10,000.

The present ceiling of 10 percent was exhausted by March 1 of this year. 

Feed Grains Program 
H.R. 4510 - Public Law 87-5, approved March 22, 1961 
By an overwhelming majority, the Congress passed a 1 year emergency price support for the 1961 crop of corn at $1.20 per bushel, with the other feed grains to be supported at fair and reasonable levels in relation to corn; support to be conditioned on retirement of 20 percent of feed grain producing acreage.

The primary purposes of the measure are to raise incomes of feed grain producers and to reduce the mounting surpluses of feed grains in Government hands. 

Mexican Farm Labor Program 
H.R. 2010 - Public Law 87-345, approved October 3, 1961 
Extended the Mexican Farm Labor program for 2 years until December 31, 1963, and amended the act to (1) require that employers reimburse the United States up to $15 maximum for essential expenses of the program, except salaries and expenses of personnel engaged in compliance activities; (2) prohibit Mexican workers from being made available in any area unless reasonable efforts have been made to attract domestic workers at wages, standard hours of work, and working conditions comparable to those offered to foreign workers; (3) prohibit any employer of Mexican labor from using these workers in other than temporary or seasonal occupations and from operating or maintaining power-driven self-propelled harvesting, planting or cultivating machinery, except in specific cases to avoid undue hardship; (4) prohibit Mexican workers from engaging in some processing activities. 

Special Milk Program - Extension 
S. 146 - Public Law 87-67, approved June 30, 1961 
This bill extends the special milk program for children 1 year until June 30, 1962; and authorizes $105 million of Commodity Credit Corporation funds to carry out the program.

The program, which has been in effect since 1954, authorizes the Department to reimburse schools participating in the school lunch program at the rate of 4 cents per half-pint in excess of the half-pint provided in the lunch. Other schools are reimbursedat the rate of 3 cents per half-pint and child care institutions at the rate of 2 cents per half-pint. At present there are about 85,500 schools and other institutions participating in the program. 

Sugar Act Extension 
H.R. 5463 - Public Law 87-15, approved March 31, 1961 
This measure continues the President's authority to establish the sugar quota for Cuba through June 30, 1962, at a level found to be in the national interest but, in no event, in excess of the Cuban quota under the basic quota system of the Sugar Act.

It gives special consideration to Western Hemisphere countries and to those countries purchasing U.S. agricultural commodities when additional purchases are made from foreign nations without regard to allocations.

The President's authority is continued to obtain refined sugar if raw sugar is not reasonably available.

If the President sets the Cuban quota at less than its basic quota, the amount of the reductions are to be distributed as follows:

(1) An amount equivalent to Cuba's share in any domestic area production deficit may be assigned exclusively to other domestic areas; and then

(2) To five nations whose quotas have been between 3,000 and 10,000 tons, a sufficient quantity of sugar to bring each up to 10,000 tons. These nations are Costa Rica, Haiti, Panama, The Netherlands, and Nationalist China; and then

(3) To the Republic of the Philippines 15 percent of the remainder; and then

(4) To other countries having quotas under the act (except those five nations mentioned in (2) above) the remaining 85 percent in amounts prorated according to the basic quotas established by the act, "except that any amounts which would be purchased from any country with which the United States is not in diplomatic relations need not be purchased"; and then

(5) If additional amounts of sugar are needed, purchases may be made from any other foreign nation without regard to allocations, but with consideration given to countries of the Western Hemisphere and to those countries purchasing U.S. agricultural commodities.


Agriculture Act of 1962 
H.R. 12391 - Public Law 87-703, approved September 27, 1962 
Passage of second Food and Agriculture Act of 1962 was made necessary by the House having killed the first bill by a narrow margin largely because of the permanent feed grain and wheat programs which the Senate had included in the bill.

As enacted into law it consists of four titles providing for-

Title I. Land Use Adjustment 
Permanent administration of the agricultural conservation program on a national basis.

Payments to producers under long-term agreements (not to exceed 10 years) to conserve and develop soil, water, forest, wildlife, and recreation resources. Restricts payments to $10 million annually, except an additional $15 million may be paid for 1963 on lands previously covered by conservation reserve contracts.

Authorizes loans to State and local public agencies to carry out land utilization plans.

Amends the Watershed Protection and Flood Prevention Act providing for (1) Federal participation in installation costs for recreation purposes, and in land costs for public, fish, wildlife, and recreation purposes, and (2) deferred repayment for municipal and industrial water capacity to meet anticipated needs.

Title II. Agricultural Trade Development Public Law (480) 
Expansion of programs under title IV of Public Law 480 of the 83d Congress to permit increased use of private trade channels in selling Government-owned surplus farm commodities to friendly foreign nations on long-term dollar credit.

Title III. Commodity Programs 
1. Feed grain program. - Provides for a 1963 corn, sorghum, and barley program under which producers would divert 20 to 50 percent of their 1959-60 acreage of those crops to conservation or named oilseed crops for (a) payments in kind of up to 50 percent on the normal yield of the diverted acreage multiplied by the support price, (b) payments in kind of 18 cents per bushel of the normal yield of their planted acreage (in the case of corn and corresponding amounts for sorghum and barley), and (c) price support by loan or other method at not less than 65 percent of parity, minus 18 cents per bushel for corn and comparable levels for sorghum and barley.

Effective with the 1964 crop the support price for corn would be at such level, from 50 to 90 percent of parity, as will not increase CCC stocks.

2. Wheat programs. - Provides for a voluntary 1963 wheat program under which producers could divert 20 to 50 percent of their allotments (or average 1959, 1960, and 1961 acreage, if not in excess of 15 acres) to conservation or named oilseed crops return for (a) payments in kind of up to 50 percent of the normal yield of the acreage diverted multiplied by the loan level ($1.82 national average), and (b) payment in kind certificates of 18 cents per bushel on the norm of their planted acreage. No changes would be made in marketing quotas for 1963, except the 15 acre exemption would be changed to the highest acres planted in 1959, 1960, and 1961, but not more than 15 acres. The same figures, based on 1959-60 yields, would be used in computing kinds of payments.

For 1964 and subsequent crops, the marketing quota program would be substantially revised and would include an acreage diversion program, with payments for 1964 and 1965 diversion, and a marketing certificate plan. Under the latter, non-certified wheat would be supported at a level determined after consideration of its feed value and world price, and certificated wheat would be supported at between 65 and 90 percent of parity. Certificates would be issued to producers for all wheat consumed domestically for food and such part of the exports as determined by the Secretary as would carry out the price and income objectives of the bill. If marketing quotas were disapproved by producers, the support level would be 50 percent of parity. Substitution of wheat and feed grain acreage would be permitted if a feed grain diversion program is in effect.

Title IV. General Provisions 
Authorizes Farmers Home Administration loans for recreational facilities, and to fish farmers.

Provides for an increase (from $10 to $25 million) in the amount of direct FHA real estate loans for immediate resale which can be made from the agricultural credit insurance fund.

Expresses congressional policy concerning use of private trade channels by CCC.

Authorizes advertising under cherry marketing orders. Makes CCC feed available until December 31, 1963, to milk producers to assure adequate supply free from radioactive fallout contamination.

On signing this act, President Kennedy stated:

The Agriculture Act of 1962 represents an important step forward in our program to increase farm income while reducing costs to the Government of the farm program, and holding the accumulation of farm surpluses.

Last year under the 1961 program we made excellent progress. Farm income increased $1 billion and surpluses are down. This is reflected in improvement also in the economic health of rural communities. I notice that deposits in country banks in farm States are already up 10 percent from 1960, and industries which supply farmers have reversed unfavorable trends. This bill will permit us to increase the gains we have made in all of these sectors of the economy.

I understand that feed grain stocks would have climbed to more than 3 billion bushels by 1964 without the farm legislation the 87th Congress has enacted. With this legislation stocks should go down to near the needed reserve levels by 1964. I think that this is an important point - with this legislation stocks should be down to near the needed reserve levels by 1964.

Similarly, as a result of this bill, wheat carryover stocks in a few years will be reduced to half of the 1961 level.

This legislation brings to a successful conclusion nearly 40 years of public discussion, some 10 years of congressional debate, and a long record of active support by farm groups for what is caged two-price wheat legislation. Now wheat producers and wheat processors can plan confidently for the future instead of having to operate from year to year under emergency bases.

I am especially pleased by the pilot program in the bill to explore means of turning farmlands to nonagricultural purposes, and to broaden the authority of the existing watershed and lending programs of the Department of Agriculture. These may be the most important provisions of this legislation for it opens up possibilities for constructive and continuing programs of multiple use of private and public conservation projects, expanded open air space areas around cities, and economic development of some of our less developed areas. With this bill we can also continue our efforts to expand the Food-For-Peace program, and encouraging at the same time our prospects for expanded commercial trade.

There is provision for increasing participation by the United States in school lunch programs in friendly countries, and for partial financing of these programs by the recipients. I am confident that this act will help us sustain prosperity, reduce burdens of surpluses, and maintain stable food prices. 

Cooperative Forestry Research 
H.R. 12688 - Public Law 87-788, approved October 10, 1962 
This act provides for matching grants and other assistance for forestry research to land-grant colleges, agricultural experiment stations, other colleges and universities offering graduate training in sciences basic to forestry and having a forestry school.

The State must certify the institutions eligible for assistance and determine the proportionate amount to be given to each from the amount apportioned to the State. If any institution fails to match, the unmatched balance will be reapportioned first to other institutions in the same State to the extent they qualify and then to qualifying institutions in other States.  

Farmers Home Administration Insured Loans 
H.R. 12653 - Public Law 87-798, approved October 11, 1962 
Increased from $150 to $200 million the amount of loans which may be insured in any year under the Consolidated Farmers Home Administration Act. These farm ownership loans are made to families with a farm background and experience or training to help them buy, enlarge, or develop farms and to refinance debts.

Soil and water conservation loans may be made to individual farmers to help them improve, protect, and properly use their land by providing adequate financing for water development and conservation and soil conservation and use.

Loans also may be made under this title to public bodies and nonprofit associations for the development and use of water and soil conservation practices and drainage to serve farmers, ranchers, and other rural residents. 

1962 Feed Grain Program 
S. 2533 - Public Law 87-425, approved March 30, 1962 
Liberalized requirements for participation in 1962 feed grain program by permitting farmers to plant barley on land taken out of wheat production and make barley interchangeable with other feed grains.

Proposal applies to areas where summer fallow practices are used for seeding wheat. Unless summer fallow is covered, it will be threatened by severe wind erosion and land damage. Thus, this bill permits a farmer to plant winter crops to keep his land from blowing and then the next summer make a comparable reduction from his corn or grain sorghum acreage. 

Forest Management 
H.R. 9728 - Public Law, 87-680, approved September 25, 1962 
Increased the amount authorized to be appropriated to carry out the Cooperative Forest Management Act from $2.5 to $5 million. That act provides for a cooperative program with the States under which technical assistance is furnished to small forest and woodlot owners. Amounts paid to States are required to be matched by the States. 

Forest Survey Authorization 
S. 3064 - Public Law 87-685, approved September 25, 1962 
Increases from $1.5 to $2.5 million the authorization for keeping current a survey of the Nation's forest resources.

The McSweeney-McNary Forest Research Act of 1928 authorized the Secretary of Agriculture to make and keep current a comprehensive survey of the present and prospective requirements for timber and other forest products in the United States. The initial survey of 770 million acres has been completed. Amendments to the act in 1944 and 1949 kept the re-surveys current.

Increase is necessary because of increased surveying costs since 1949, the year in which the $1.5 million figure was set. 

Imports of Textiles 
H.R. 10788 - Public Law 87-488, approved June 19, 1962 
Authorized the President, for the purpose of carrying out any agreement under section 204 of the Agricultural Act of 1956, to limit imports of any agricultural commodity or product covered by such agreement from countries not a party to the agreement. It will apply only in the case of agreements where imports from participating countries account for a significant part of the world trade in the article.

Section 204 of the Agricultural Act of 1956, authorized the President to enter into agreements with foreign countries limiting the importance of any agricultural commodity. This bill removes all doubt from existing law by giving the President authority to limit imports from countries not a party to the agreement. At present the only agreement under section 204 is the 1 year cotton textile arrangement in which 19 countries participate. Enactment of this measure will prevent anticipated imports from nonparticipating countries vitiating the effect of the agreement. 

International Wheat Agreement Act Extension 
S. 3574 - Public Law 632, approved September 5, 1962 
Extended the International Wheat Agreement Act of 1949 to implement the Agreement ratified in 1962, by authorizing the President acting through Commodity Credit Corporation to make available wheat and wheat flour at prices necessary to exercise the rights, obtain the benefits, and fulfill obligations of the United States. 

National School Lunch Funds 
H.R. 11665  - Public Law 87-823, approved October 15, 1962 
Amended the National School Lunch Act in order to give the program a more realistic approach by-

Revising the formula for apportioning cash assistance funds to States to base it on the number of lunches served in the preceding year and a slightly modified assistance need factor (instead of on the number of children aged 5 to 17 and the assistance need factor);

Providing for a 3 year transition to the new formula (75 percent of the funds being apportioned on the old formula and 25 percent of the new formula the first year, 50 percent being apportioned on each formula the second year; and 25 percent being apportioned on the old formula and 75 percent on the new formula the third year);

Changing the formula for division of State apportionments between public and private schools (where such division is required) to base it on the number of lunches served instead of the number of students; and

Providing for special assistance to certain schools to help them serve free or reduced price lunches.

Authorizing a $10 million appropriation for fiscal 1963 and such funds as required for succeeding years. 

Rural Telephone Service 
H.R. 10708 - Public Law 87-862 
Authorizes the Rural Electrification Administration to finance loans for facilities to provide services such a closed circuit television, teletypewriter, telephotograph, and writing and data transmission, which, today, are generally recognized as normal services of telephone companies. 

Sugar Act Extension 
H.R. 12154 - Public Law, 87-535, approved July 13, 1962 
Extends the 1948 Sugar Act to December 31, 1966. The first sugar quota law was passed in 1934 to combat surpluses and disastrously low prices. Under the law the Secretary of Agriculture is directed to maintain prices equitable to both the domestic sugar industry and consumers. All U.S. sources of supply up to now have been controlled through specific quotas raised or lowered by the Secretary as market requirements dictated, but this bill injects a major new element into sugar controls. Of an estimated 9,700,000 tons that US. consumers need this year, approximately 1,635,000 tons will come from foreign sources on a first-come, first-served basis.

Specifically, the act provides that when the domestic requirements of 9,700,000 tons are met, the U.S. sugar market will be supplied by-

Increasing the quotas for domestic sugar-producing areas by 625,000 tons and assigning these domestic areas 65 percent of the increases in consumption compared to the present 55 percent.

Providing the following quotas for each of the domestic sugar-producing areas:

[Short tons, raw value]
Area Present Legislation Conference Agreement
Domestic beet sugar 2,110,627 2,650,000
Mainland cane sugar 649,460 895,000
Hawaii 1,117,936 1,110,000
Puerto Rico 1,231,682 1,140,000
Virign Islands 16,795 15,000
Total 5,186,500 5,810,000


Assigning a quota of 1,050,000 to the Philippines to December 31, 1966, hence no premium to recapture.

Assigning quotas totaling 1,205,000 tons for foreign suppliers (other than Cuba and Philippines), effective December 31, 1964, as follows:

 Country  Tons  Country Tons
Peru 190,000 Ecuador 25,000
Dominican Republic 190,000 Haiti 20,000
Mexico 190,000 Guatemala 20,000
Brazil 180,000 South Africa 20,000
British West Indies 90,000 Panama 15,000
Australia 40,000 El Salvador 10,000
Republic of China 35,000 Paraguay 10,000
French West Indies 30,000 British Honduras 10,000
Colombia 30,000 Fiji Islands 10,000
Nicaragua 25,000 Netherlands 10,000
Costa Rica 25,000 Other countries 11,332
India 20,000


In these foreign country quotas, there will be a cumulative reduction of 10 percent a year in the premium over world prices; the import fee will be 10 percent of the difference between the world price and a US. price in a period during 1962 in which the provision is effective, 20 percent in 1963, and 30 percent in 1964.

Suspending Cuba's quota of 1,635,000 tons until it again becomes free and independent. This reserve will be purchased from any countries with which we are in diplomatic relations on a global-quota basis with full recapture between the world price and the U.S. price with special consideration to countries of the Western Hemisphere and to those countries purchasing U.S. agricultural commodities. Since the world free market is subject to price fluctuations, the Secretary will provide monthly reports to the Senate Finance Committee on this operation.

Revising the formula to employ the price of raw sugar and the U.S. Department of Agriculture parity index as they were related in the years 1957-59.

Authorizing Secretary to make available approximately 26,000 acres or the amount necessary to yield a reserve of 65,000 tons annually to expand the sugar beet industry. Distributes the reserve to farms without regard to other acreage allocations. This reserve will be available for distribution to new growers supplying a new factory in new area.

Limiting direct-consumption sugar entered from foreign countries (except the Philippines) to the average entries during 1957-59 from other countries receiving a proration of 20,000 tons or less; none from countries with less than 20,000 (except the Philippines). Replacement supplies authorized for importing in lieu of quotas of countries not in diplomatic relations with the United States (Cuba) will be raw sugar; if not available, then direct-consumption sugar.

Suspending quota for expropriation of American-owned property or if a nation discriminates against U.S. citizens in its sugar program.

Permitting a small quota for syrup of cane juice such as Barbados molasses.

Prohibiting importing to Virgin Islands any sugar not produced in domestic areas with the same prohibition in relation to their quota from the Virgin Islands. 

Sugar Quotas - Western Hemisphere 
H.R.. 8050 - Public Law 87-539, approved July 19, 1962 
Permits the President to enlarge U.S. sugar import quotas of Latin American countries by modifying the Sugar Act of 1962. The modification allows the President to allocate up to 150,000 tons a year extra to Latin American countries. While the act names no countries, it is expected that the Dominican Republic will receive at least 100,000 tons of the allocation. Argentina is another likely beneficiary.

The additional quotas for Latin America was attached as an amendment to a bill restricting imports of adult honey bees except for experiments by the Department of Agriculture and then only from countries that have taken every precaution to eradicate the disease-bearing acarine mite which infests them.

As enacted, the bill permits the President to allocate an additional 150,000 tons of raw sugar to Latin American countries for each of 1963 and 1964, and 75,000 tons for the remainder of 1962. Although not named, it is expected that the bulk of this allocation will be for the Dominican Republic, Peru, and Argentina. Additional tonnage is to be taken from the 1,635,000 global quota. Also changed was the deficit allocation formula in the 1962 Sugar Act by permitting the President to distribute all of the deficits except the share which the Philippines could receive to Western Hemisphere countries, with preference to countries purchasing U.S. agricultural commodities.


Agricultural Experiment Stations 
H.R. 40 - Public Law 88-74, approved July 22, 1963 
Authorizes $12 million in matching grants to be apportioned among the States for the construction of research facilities at State agricultural experiment stations.

Grants would be available for 3 years and apportioned to the States-
One-third equally among the States; 
One-third on the basis of rural population; and 
One-third on the basis of farm population.

All Federal grants would have to be matched by at least equal sums from non-Federal sources. 

Alaskan Farmland Development 
S. 623 - Passed Senate June 25, pending in House Agriculture Committee 
To assist Alaska and its population explosion, this act authorizes a $1.2 million program for payments to assist agricultural producers in Alaska to carry out much needed farmland development measures. Such measures will include clearing, draining, shaping and otherwise conditioning land for the production of crops or for pasture.

Authorizes the Secretary to enter into agreements with these agricultural producers which may extend for a period of years.

Payments and grants are limited to $125,000 in any one program year. 

Conservation Reserve Contracts Extension 
S. 1588 - Passed Senate October 11; pending in House Agriculture Committee 
Authorizes extension of conservation reserve contracts through 1965 which expire in 1963 and 1964 and those which expired in 1962 and were extended for 1963 under section 16(e) of the Soil Conservation and Domestic Allotment Act.

Increases the limit on annual payments under the cropland conversion program (land-use adjustment) from $10 to $20 million. 

Dairy Bill 
S. 1915 - Passed Senate October 10; pending in House Agriculture Commission 
Provides a two-price plan for dairy farmers designed to reduce Government surpluses and increase farm income. Under the bill, farmers who vote by referendum to accept the plan will be paid two prices - a higher one for fluid milk and a lower one for manufacturing milk used in making cheese, butter, ice cream, and other dairy products.

Dairy farmers will be allotted a specific percentage of the higher priced fluid milk on the basis of past production. Present laws provide a Federal minimum price support for blend milk produced in marketing areas without making a distinction between fluid and manufacturing milk.

Essentially the bill clarifies the Secretary of Agriculture's authority to provide for allotments under milk marketing orders so that producers will receive a higher return on milk covered by allotments and lower return for milk in excess of allotments, instead of a uniform blend price.

The bill does not affect the minimum prices paid by handlers but deals only with apportionment of the proceeds among producers.

Milk marketing orders apply to marketing areas and prescribe minimum prices which handlers must pay for milk. The minimum price varies with the use to which the handler puts the milk. The handler must pay a higher minimum price for milk used for sale for consumption as fluid milk, and a lower minimum price for milk used or manufacturing or other lower purposes. Handlers' payments of the minimum prices are pooled and producers are then paid a uniform price, subject to certain adjustments.

In addition to adjustments for customary volume, market, and production differentials, and for quality and location, the law provides for a further adjustment equitably to apportion the total value of the milk purchased by any handler, or by all handlers, among producers and associations of producers, on the basis of their marketings of milk during a representative period of time.

While Congress felt that this clearly authorized apportionment of the proceeds for the milk on the basis of marketing during a representative period, the Department of Agriculture has questioned its authority to apply this adjustment factor except for the limited purpose of eliminating violent seasonal fluctuations. Thus, this bill is designed to remove any question and to specify one manner in which authority may be exercised. 

Federal Crop Insurance Expansion 
S. 277 - Passed Senate August 28; pending in House Agriculture Committee 
Permits Federal crop insurance to be offered in 150 additional counties each year. At present expansion is limited to 100 new counties each year.

Crop insurance is offered farmers in selected counties by the Federal Crop Insurance Corporation, which is wholly Government owned and provides all- risk crop insurance protection against unavoidable causes of loss. 

Feed Grains Act of 1963 
H.R. 4997 - Public Law 88-26, approved May 20, 1963 
Congress extended the voluntary feed grains program for 2 years - 1964-65 crops.

Established price support for corn, if a feed grains acreage diversion program is in effect, between 65 and 90 percent of parity to those producers who participate in the acreage diversion program. Price support for other feed grains would be comparable to that for corn. If no acreage diversion program is in effect, the support price will be at the level authorized by the Food and Agriculture Act of 1962 but may be restricted to those producers who do not exceed the feed grain base established for the farm.

An acreage diversion program will be in effect if it is determined that, in the absence of such a program, the total supply of feed grains will be excessive. Authorized payments in kind not to exceed 50 percent of the support price, including that portion of the support price made in kind, on the normal production of the acreage diverted.

Base acreage used to determine the percentage of land to be diverted will continue to be the 1959 and 1960 average adjusted acreage. Includes in the feed grains base, however, the average acreage of wheat for 1959, 1960, and 1961 produced under the feed wheat exemption in excess of the small farm wheat base established for the farm.

Permits reserves not to exceed 1 percent of the estimated State feed base for apportionment to farms on which there were no acreage devoted to feed grains during 1959 and 1960, with specific guidelines for apportionment. Farms receiving bases under this provision will not be eligible for land diversion payments the first year.

The adjusted yield used to determine the normal production for price support payments and land diversion payments for the 1964 crop would be based on the 1959-62 average yield and for the 1965 crop the 1959-63 average yield.

Acreage to be diverted will be determined as that necessary to achieve the acreage goal but cannot exceed the larger of 50 percent of the base or 25 acres.

Permits payment in kind in the form of negotiable certificates, with CCC authorized to redeem the certificates for feed grains valued at not less than the current support price less that part of the support price made available through payments in kind, plus reasonable carrying charges.

Revised the definition of feed grains to include oats and rye if the producer so requests, in which case the producer could, if so desired, have feed grains acreage devoted to the production of wheat considered as devoted to the production of feed grains; however, corn, grain sorghums or barley cannot be planted in lieu of oats or rye.

Retains the price support level for 1963 which (as required by section 105(c) of the 1949 act fixes it at not less than 65 percent of parity) has set it as $1.25 per bushel and is 78 percent of the parity price for December 1962.

Authorizes the Secretary to permit the diverted acreage to be devoted to the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, and flax, when such crops are not in surplus supply.

President Kennedy in signing the bill into law, said:

This act extends the successful feed grains program for 2 more years. In 1961 feed grains constituted our most critical surplus problem. That year, the carryover was over 3 billion bushels. Had no action been taken, it would have approached 4 billion bushels by the end of the crop year. However, as a result of the 1961 and 1962 legislation, we will, by October of this year, have reduced stocks by 860 million bushels. Taxpayers will save over $800,000 a day. Eventual savings will total nearly $1,400 million.


Two years from now, at the end of the 1964 marketing year, the Secretary of Agriculture estimates that the entire feed grain surplus will be gone and we will have on hand only the amount of feed grain needed for national reserves. This will be an extraordinary accomplishment. It is especially encouraging that the feed grain program has received wide farmer acceptance, for without their support the feed grain situation would be even more critical today than 2 years ago.

By making this program his program, the farmer has helped raise net farm income in both 1961 and 1962 to its highest peak since 1953 and this situation is being reflected today in a banner sales year for farm equipment makers and for merchants in many rural communities. Through this program, also, we will continue to avoid feed grain supplies so large as to overexpand livestock production. This kind of progress is justification enough for continuing the feed grain legislation and I want to express my appreciation to the Members of Congress here who labored so long and so hard to make this legislation a reality. 

Mexican Farm Labor 
S. 1703 - Public Law 88-203, approved December 13, 1963 
Provides for a 1 year extension of the Mexican farm labor program to December 31, 1964. 

Misuse of Relief Feeds 
S. 400 - Passed Senate June 25; pending in House Agriculture Committee 
Established civil and criminal penalties for misuse of feed made available for relieving distress or preservation and maintenance of foundation herds.

The offense would be a misdemeanor and provides a civil penalty equal to the market value of the feed and a criminal penalty up to $1,000 or imprisonment for not more than 1 year.

Under existing law a similar penalty is imposed if CCC-owned grain sold to a farmer in a designated emergency area at the current support price is disposed of by the farmer other than by feeding to his livestock. 

Pesticide Registration 
S. 1605 - Passed Senate October 22; pending in House Agriculture Committee 
Amends the Federal Insecticide, Fungicide, and Rodenticide Act to permit labeling federally approved pesticides with registration numbers and to repeal provisions permitting protest registration and marketing of pesticides declared unsafe by the Agriculture Department.

Existing law requires that all pesticides be registered with the Department of Agriculture in compliance with the above act; however, if a poison does not comply with the act, the manufacturer can register and market it under protest until the Department develops evidence to prove it unsafe and take legal action to remove it from the market.

In prohibiting such protest registration, this bill permits the Secretary of Agriculture to prevent marketing a new imminently hazardous pesticide and set up a legal procedure designed to protect an applicant who disagreed with the Secretary's decision. Thus the applicant can appeal to an advisory committee of experts which would consider the matter and make recommendations which the Secretary can follow at his discretion. In case the applicant continues to protest the Secretary's ruling, he can request a public hearing. The hearing will be followed by a final order of the Secretary which will be subject to judicial review.

In the case of a registrant whose product already marketed and found unsafe, currently subject to protest registration, this bill permits the manufacturer to continue to market the product until the administrative and judicial procedures were exhausted. However in the case of a product which the Secretary found particularly dangerous, marketing could be suspended and expedited hearing procedures set up. 

Producer Livestock Programs 
H.R. 5860 - Public Law 88-61; approved July 8, 1963 
Permits voluntary programs for promotion, research, and education relating to livestock, meat, and other commodities and products covered by the Packers and Stockyards Act of 1921, and financing such programs by producers and participating allied interests.

It amends the Packers and Stockyards Act to provide that the authority of the Secretary under this act shall not apply to deductions made from sales proceeds for the purpose of financing promotion or research activities, including educational activities, relating to livestock, meat, and other products covered by the Packers and Stockyards Act. It exempts from regulation under the Packers and Stockyards Act, deductions made for this type activity when carried out by producer-sponsored promotion of meat and meat products. This program has been financed largely through small deductions on the sales proceeds of livestock at the time of its marketing. These deductions usually are made by producer agents, who have been engaged to sell the livestock, and the amounts of such deductions are shown on the accounts of sale.

This action will place producers, their market agencies, and participating packers on the same footing as are the producers of other agricultural commodities, and will enable the program which has been so successfully carried out by the National Livestock and Meat Board without written authorizations to be continued on a voluntary basis free of Federal regulation, since the legislation makes it clear that the deductions which are made for financing the program are not and should not be construed to be acts or practices in commerce. 

Rice Acreage 
House Joint Resolution 192 - Public Law 88-160, approved October 28, 1963 
Confirms all 1956-62 crop rice acreage allotments properly apportioned on the basis of producer history and allocated to the farm by the county committee in good faith.

It does not confirm allotments obtained by duplication, forgery, bribery, or intimidation, nor allotments obtained through practices that would result in the total allotted acreage exceeding the State acreage allotment less any unallocated reserve acreage.

Thus the resolution is designed to relieve farmers from technical irregularities but does not forgive intentional wrongdoing. Legislation applies only in States where rice allotments are made on the basis of the producer's history of rice production. 

Wheat Allotments 
Senate Joint Resolution 198 - Public Law 87-485, approved June 15, 1962 
By unanimous action the Congress deferred the final date for the proclamation of the 1963 crop wheat-marketing quotas and acreage allotments until July 15, 1962. The resolution also defers the final date for the referendum on 1963 crop-marketing quotas to August 52 1962. 

Wheat and Feed Grain Acreage 
H.R. 11413 - Public Law 87-451, approved May 15,1962 
This measure adds non-price supported annual field crops and flax to the list of commodities which Secretary of Agriculture may permit to be produced on diverted acres under the 1962 wheat and feed grain programs.

It permits the Secretary to make payments on diverted acres planted to the authorized crops at up to half the rate payable on diverted acres devoted to conservation.

Participation in the 1962 wheat and feed grain programs is required as a condition of price support for the commodities covered by those programs. Participants receive payments for diverting land from wheat and feed grains to conserving uses. In lieu of receiving payments, they may at present, with the Secretary's approval, produce guar, sesame, safflower, sunflower, or castor beans on the diverted acres. Thus this bill extends to this list non-price supported annual field crops and flax provided they are not in surplus supply. 

Joint Committee on the Budget 
S. 537 - Passed Senate May 20; pending in House Rules Committee 
Establishes a 14 member Joint Committee on the Budget composed of 7 members from each Appropriation Committee, 4 to 3 split.

Authorizes the Joint Committee to select a new chairman and vice chairman at the first regular meeting of each session  - with the House and Senate rotating - Senate chairman in even-numbered years and House odd-numbered years, with the vice chairman from the opposite branch.

Purpose of the Joint Committee is to serve the Appropriations Committees year round with the same expertise as the Bureau of Budget for the executive branch. That is, the Joint Committee is to "know all" about the budget and expenditures of the agencies of the Government, including borrowing authority, contract obligational authority, estimated revenues, et cetera.

Permits the Joint Committee to report on and recommend appropriate legislative changes, recommend cutbacks, or anything that would promote greater efficiency and economy in Government.

Authorizes the Joint Committee to hold hearings, issue subpoenas, and take testimony; and to recommend joint hearings by the Appropriations Committees and subcommittees to expedite action on appropriation measures.

Committee will be staffed with a staff director, associate staff director, and such other professional, technical, and clerical employees as necessary. Staff director to be appointed and responsible to majority party members; associate staff director by minority.