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FAMILY FARM INCOME IMPROVEMENT

THURSDAY, MARCH 27, 1958

HOUSE OF REPRESENTATIVES,
COMMITTEE ON AGRICULTURE,

Washington, D.C. The committee met pursuant to notice at 10 a. m., in room 1310, New House Office Building, Hon. W. R. Poage presiding:

Present: Representatives Poage, Gathings, McMillan, Albert, Abbitt, Thompson, Jones, Watts, Hagen, Johnson, Anfuso, Bass, Knutson, Jennings, Hill, Simpson, Dague, Belcher, McIntire, Williams, Dixon, Smith, Teague, Tewes, and 'Quie.

Also present: John Heimburger, counsel, Mabel Ç. Downey, clerk. Mr. POAGE. The committee will please come to order.

The committee is meeting this morning to consider bills introduced by Hon. George McGovern who introduced H. R. 10966 and Hon. James Roosevelt, who introduced H. R. 10967. (H. R. 10966 and H. R. 10967 are as follows:)

[H, R. 10966, 85th Cong., 2d sess.) A BILL To establish a comprehensive family farm income improvement and protection

program, to provide additional consumer safeguards, to enable farmers to keep market supplies of farm commodities in reasonable balance with demand therefor, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act shall be known as the “Family Farm Income Improvement Act of 1958”.

SECTION 1. Section 101 of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof the following: "Notwithstanding any other provision of law, the Secretary of Agriculture and the Federal Farm Income Improvement Board, established by this Act, are authorized and directed to maintain through price-supporting loans, purchases and purchase agreements; parity income deficiency payments; or other methods the returns to farmers who stay within applicable farmwide, commodity-group, and individual-commodity marketing quota and if producers of the commodity or commodity-group have not disapproved the proclamation of marketing quotas for that commodity or commodity-group, at a level not in excess of the parity-income equivalent prices of the several commodities nor less than 80 per centum of the parity-income equivalent prices of the several commodities: Provided, That the eligibility of any farmer to obtain farm income protection under this section shall be limited to not more than actual sales by such farmer or the maximum sales of economically adequate family-operated farms as determined for each type-of-farming area or subarea or other type-of-farming classification, by the Secretary upon affirmative recommendation by two-thirds vote of the Federal Farm Income Improvement Board, whichever is smaller; and the eligibility of any farmer to obtain farm income protection for any commodity shall be limited to actual sales of such commodity by such producer or the proportional part of the sales of such commodity by such producer that is equal to the ratio that total maximum sales of economically adequate family-operated farm bears to the total sales of all farm commodities by the producer, whichever is smaller: And provided further, That no farmer shall be eligible to receive more than $3,500 of parityincome deficiency payments in any one calendar year."

PARITY-INCOME EQUIVALENT PRICE FORMULA Sec. 2. The Agricultural Adjustment Act of 1938, as amended, is amended as follows:

(a) Section 301 (a) (1) is repealed.

(b) Section 301 (a) (2) is amended by changing “(2)” to “(1)” and adding at the end thereof the following: "The parity-income equivalent price of any agricultural commodity shall be a price per unit that when multiplied by the marketing quota or expected sales for such commodity plus estimated volume of such commodity utilized on farms where produced will equal the parity gross income for such commodity.”

(c) Section 302 (f) of Public Law 897, Eightieth Congress (7 U. S. C. 1301a). is amended by inserting after the word "parity” the last time it appears and before the word "prices" the last time it appears the words "income equivalent".

BALANCING MARKET SUPPLIES WITH DEMAND Sec. 3. Notwithstanding any other provision of law, the Secretary and the Federal Farm Income Improvement Board, established by this Act, are author. ized and directed to initiate the programs provided in this section to enable farmers to keep the market supply of the commodities they produce in reasonable "balance with demand.

(a) The Secretary is authorized and directed upon recommendation adopted by two-thirds vote of the Federal Farm Income Improvement Board, established by this Act, to determine and proclaim, prior to October 15 of each year, a national farmwide all-commodity farm marketing quota for the succeeding crop year.

(1) The national farmwide all-commodity farm marketing quotà shall be the total value of all farm commodities, calculated at parity-income equivalent prices, as the Secretary and the Federal Farm Income Improvement Board may determine can be sold by farmers at not less than 80 per centum of parity-income equivalent prices in such crop year calculated on the assumption that the number of unemployed in such year will be not greater than 3 per centum of the total civilian labor force.

(2) The Secretary shall conduct a referendum of farmers to determine whether they favor or oppose the national farmwide all-commodity marketing quota proclaimed under this subsection not later than thirty days after issuance of the proclamation. Persons eligible to vote in the referendum shall be persons engaged in the production of farm commodities for sale in the year in which the referendum is held, or the next preceding year. If more than one-half of the farmers voting in the referendum oppose the quota, such quota shall become ineffective upon proclamation of the results of the referendum held hereunder within fifteen days after the date of such referendum.

(b) The Agricultural Marketing Agreement Act of 1937, reenacting, amending, and supplementing the Agricultural Adjustment Act, as amended, is amended as follows:

(1) Subsection 2 (1) is amended by striking the words "parity prices" and substituting in lieu thereof the words "parity-income equivalent prices."

(2) Subsection 8 (c) (2) is amended by inserting after the word “soybeans" the following: "other field crops, Irish potatoes, farm forestry products, cattle, hogs, lambs, milk for manufacturing, butterfat in cream, eggs, and poultry."

(c) Notwithstanding any other provision of law, the Secretary and the Federal Farm Income Improvement Board are authorized and directed, whenever neither a marketing agreement nor order under provisions of the Agricultural Marketing Agreements Act of 1937 is in effect for such commodity to proclaim a national individual-commodity marketing quota for such commodity and a commodity-group marketing quota for economically related groups of such commodities, for any of the following commodities: (i) field crops (other than tobacco), including corn, both inside and outside the commercial corn producing area, barley, oats, rye, grain sorghum, flaxseed, soybeans, dry edible beans, and grass seeds; (ii) vegetables, including potatoes, cabbage, and tomatoes; (iii) fruits, including citrus fruits, dried fruits, and deciduous fruits; (iv) tree nuts, including English walnuts and pecans ; (v) livestock, including hogs, 'cattle, and lambs; (vi) poultry, including chickens and turkeys; (vii) whole milk, butterfat, eggs, hops, honey, honeybees, and gum naval stores or any regional or market classification of such commodities, .

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(1) The national commodity-group or individual-commodity marketing quota

shall be in the case of the individual-commodity quota the volume of the comis a modity, and in the case of a commodity-group marketing quota, the total value

of all such commodities calculated at parity-income equivalent prices, that the

Secretary determines, upon recommendation by two-thirds vote of the Federal and at Farm Income Improvement Board, is the volume of such commodities that price can be sold by farmers through normal channels of trade during such marketing slied " year, with such calculations based upon the assumption that the number of ited unemployed will not exceed 3 per centum of the civilian labor force, at prices parit: not less than 80 per centum nor more than 100 per centum of the parity-income

equivalent price for such commodities.

(2) The proclamation of a national commodity-group or individual-commodity ppean marketing quota for any agricultural commodity or group that includes any quires commodity that is planted annually shall be made not less than sixty days

prior to the beginning of the marketing year. A national single-commodity or commodity-group marketing quota may be made applicable to a crop or to a marketing year.

(3) The Secretary shall conduct a referendum of farmers to determine re ar whether they favor or oppose the national commodity-group or individual1on commodity marketing quota proclaimed under this subsection not later than rease thirty days after -issuance of the proclamation. Persons eligible to vote in

the referendum shall be farmers engaged in the production for sale of the o adr' commodity, in case of the individual-commodity marketing quota, or in producstabih tion for sale of one or more of the commodities included, in case of a commoditybe put group marketing quota, in the year in which the referendum is held, or the ding next preceding year. If more than one-half of the farmers voting in the ref

erendum oppose the quota, such quota shall become ineffective upon proclamaall tion of the results of the referendum. The Secretary shall proclaim the results

of any referendum held hereunder within fifteen days after the date of such referendum.

(4) In the case of agricultural commodities, a significant proportion of the production of which are expected in the year to which the marketing quota pertains to be exported from the territorial limits of the United States, the Secretary and the Board shall proclaim a domestic marketing quota and an export marketing quotà whose total shall equal the national marketing quota for such commodity.

(a) The national farmwide all-commodity marketing quota and the commodity-group marketing quotas shall be allocated among the several commodities in a manner determined by the Secretary and the Board to keep supplies and prices of such commodities in appropriate balance with each other. The national farmwide all-commodity marketing quota and the several commoditygroup and individual-commodity marketing quotas shall be allocated among the several farm operators, counties, and States such that the marketing quota of an individual farm operator, a county, or a State, shall bear the same ratio to its average annual sales of such commodities in the immediately preceding three years, as adjusted in acordance with provisions of the following subsections :

(1) Adjustments in the allocation of national marketing quotas proclaimed under this section shall be made by the Federal Farm Income Improvement Board as required in its judgment to be necessary to provide equity among farmers in relation to abnormal production conditions, trends in production and marketing, relative dependence of the several areas upon one or a few crops or commodities, land, labor, and equipment available for the production and marketing of the commodity; rotation and fallow practices; good soil and water conservation practices; soil and other physical factors affecting the production of the commodity or commodities and shall be allocated and administered by the Board, and the State and county farmer committees in a manner reasonably calculated to achieve the purposes of this Act and give farm operators a fair and equitable opportunity to participate in the programs provided by this Act within the limitations provided in section 1, taking into consideration the commodity marketing quotas for different commodities of farm operators, the supply and demand conditions and characteristics of different classes, grades, and qualities of the different commodities, the relative dependence of the farmers of an area, county, or State upon one or a few crops or other specialization, and such other factors as the Board deems appropriate.

(2) The Secretary and the Board shall arrange to adjust the farmwide allcommunity market quota and the several commodity-group and the individualcommodity marketing quotas allocated to each farm operator each year in accordance with the following schedule:

The operator's quota for that

year shall be increased by If the ratio of the operator's marketing quota to the national the corresponding followper operator average of such quotas for any year is

ing percentage : Not more than 20

50 More than 20 but not more than 40.

45 More than 40 but not more than 60.

40 More than 60 but not more than 80

35 More than 80 but not more than 100.

30 More than 100 but not more than 134. More than 134 but not more than 167

20 More than 167 but not more than 200.

15 More than 200.In making the adjustments provided in this paragraph the national marketing quota shall be so reallocated that the total of adjusted quotas of individual operators shall equal the national marketing quota originally proclaimed. To the extent that any farm operator, county, or State does not utilize its total of any marketing quota such unused marketing quota shall be made available for that year only to other farm operators, other counties, and other States which have indicated a desire to obtain a larger quota.

(e) Notwithstanding the foregoing provisions of this section, the Secretary shall determine for any farmwide all-commodity marketing quota a specified minimum individual quota below which no farm operator will be reduced from his historical marketings. In making this determination, the Secretary and the Board shall take into consideration amount of such commodities normally used for home consumption per family, the minimum volume of production required to operate a full-time efficient family unit, the proportion of total family income earned by the operator from nonfarm sources, the effect of such minimum upon the attainment of the purposes of this Act and the several marketing-quota programs, and such other factors as may be recommended by the Federal Farm Income Improvement Board.

(f) The Federal Farm Income Improvement Board shall cause to be issued to the operator of each farm, a farm marketing quota certificate bearing on its face the volume of sales of all farm commodities, of each commodity-group, and of each individual commodity for which national marketing quotas have been proclaimed, that is permitted without payment of penalty under the certificate. Each farm operator who sells farm commodities shall obtain, from the county farmer committee, a within-quota or overquota certificate of sale for commodities that he sells, which shall accompany the commodity through channels of trade within the United States. Each such producer shall be issued within-quota certificates of sale by the county farmer committee upon payment to the committee of a farm income improvement fee of not more than 1 per centum of the parity income equivalent price all-commodity, up to the remaining volume for the crop year of sales shown for the commodity-group and for the commodity marketing quotas on the face of the marketing quota certificate for such year. Each producer shall also be issued such overquota certificates of sale by the committee as he may apply for and require for the sale of farm commodities over and above the volume shown on the face of the marketing quota certificate of such operator upon payment of a farm income stabilization fee equal to the total of the number of units of each commodity covered in such overquota certificates of sale multiplied by 75 per centum of the parity-income equivalent price of each such commodity. The Secretary shall confiscate all farm commodities and products discovered if ownership cannot be accounted for by presentation of withinquota or overquota certificates of sale in the hands of the owner thereof.

Sec. 4. Section 303 of the Agricultural Adjustment Act of 1938, as amended, is amended to read as follows:

"PARITY INCOME DEFICIENCY PAYMENTS

"SEC. 303. In carrying out the provisions of section 1 of this Act, the Federal Farm Income Improvement Board is authorized and directed to make use of the funds collected from sale of within-quota and overquota sales certificates under provisions of section 3 of this Act for administration of the provisions of this Act and to reimburse the Secretary for parity income deficiency payments he is required to make under provisions of section 1 owing to errors in forecasts in connection with determination of the farmwide all-commodity, the commoditygroup, and the individual-commodity marketing quotas, and the Secretary is authorized and directed to make use of funds available to him and any funds appropriated by section 32 of Public Law 320, Seventy-fourth Congress (49 Stat. 774; U. S. C. 612c), as amended, in making parity income deficiency payments required by the excess of the number of unemployment above 3 per centum of the civilian labor force. The Secretary and the Board are authorized and directed to make parity income deficiency payments to producers whose sales of any commodity, whose total sales of commodities within a group, and whose total sales of farm commodities do not exceed the respective marketing quota or quotas in amounts which, with respect to each such commodity sold, together with the proceeds from sale thereof, will provide a return to such producers which is as nearly equal to 80 per centum of the parity income equivalent price as the funds so available will permit. All funds available for such payments shall be apportioned to the several commodities in proportion to the amount by which each fails to reach the parity income. Such payments shall be in addition to and not in substitution for any other payments authorized by law. The Secretary is authorized to make use of funds available to the Federal Farm Income Stabilization Corporation for payment of his share of the parity income deficiency payments. Congress is authorized to appropriate to the Secretary such sums as may be required from time to time to allow him to reimburse the Corporation for sums advanced to the Secretary for making of parity income deficiency payments. The total of parity income deficiency payments made by the Secretary and the Board to any one farm operator in any one year shall not exceed $3,500. It is the intention of this section that in years, or in periods of less than a year, when the number of unemployed is less than 3 per centum of the civilian labor force, the entire cost of the farm income improvement program provided in this Act shall be covered by the farm income improvement fees and penalties paid by farmers, and in years and periods of less than a year when the number of unemployed exceeds 3 per centum of the civilian labor force, additional funds required by the Secretary of Agriculture to carry out the provisions of section 1 and of this section due to the reduced demand resulting from the excess of unemployment over 3 per centum of the civilian labor force."

SEC. 5. Section 703 of the National Wool Act of 1954 is amended by striking out "March 31, 1959" and inserting in lieu thereof “March 31, 1963."

SEC. 6. The Federal Farm Income Stabilization Board is authorized and directed whenever it finds that the expected annual marketings of hogs and cattle will exceed the applicable marketing quotas established under provisions of this Act, to institute a program of incentive payments in such amounts to hog and cattle producers to encourage the marketing of hogs and cattle at such weights that will facilitate the attainment of the purposes of this Act and the carrying out of the provisions of this Act at the lowest possible cost.

SEC. 7. Notwithstanding any other provisions of law, the Commodity Credit Corporation is hereby redesignated as the Federal Farm Income Improvement Corporation, and the Board of Directors of the Commodity Credit Corporation shall be known as the "Farm Income Improvement Board.” Wherever the words “Commodity Credit Corporation” or “Commodity Credit Corporation Board of Directors" appears in any law, the words are hereby amended to read "Farm Income Improvement Corporation” and “Federal Farm Income Improvement Board".

(a) Notwithstanding any other provision of law, the Federal Farm Income Stabilization Board shall be composed of six officials of the United States Department of Agriculture appointed by the President of the United States, by and with the advice and consent of the Senate, and five members elected from their own number by farmer-elected members of the State farmer committees provided in subsection 8 (b) of the Soil Conservation and Acreage Allotment Act, as amended, which farmer-elected members of the State committee shall be three in number and shall be elected from their own number by members of farmer-elected county farmer committees provided in subsection 8 (b) of the Soil Conservation and Acreage Allotment Act, as amended.

(b) The Federal Farm Income Improvement Board shall meet annually and at other times upon call of the Chairman. The Board shall select its own Chairman from among its elected members.

SEC. 8. No actions shall be initiated under this Act which will be effective after the beginning of any crop or marketing year beginning after December 31, 1962.

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