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Mr. Thompson. Do you have any questions, Mr. Gathings?
Mr. Gathings. I would like to ask a question or two, Mr. Chairman. I think you made a good statement, giving us a full picture of the rice situation as it exists at this time.
Mr. McLAIN. We try to be honest, Mr. Gathings. Mr. GATHINGS. Mr. Secretary, I wondered if you could give us a little information with regard to the amount of Public Law 480 funds that have been allocated for rice?
Mr. McLain. Mr. Dean here, and Mr. SorkinMr. SORKIN. $267 million total since the beginning of the program. Mr. GATHINGS. Now, that has been for some time. Now, I believe these figures that you put in the record had to do with the total program.
Mr. McLAIN. Yes.
Mr. GATHINGS. Overall. Mr. Chairman, I ask that that will be made a part of the record. Mr. THOMPSON. At this point? Mr. GAThings. At this point. Mr. THOMPSON. Without objection, so ordered. (The documents referred to are as follows:)
Title 1, Public Law 480—Value of commodities programed at CCC cost Commodity :
Villion Wheat.Cotton --
$1, 669.3 Vegetable oil.
308 4 Rice
133.0 Dairy products
Relation to title I, Public Law 480, programing to 1957 United States production
1 Production-cottonseed and soybean crop on nil basis,
Includes meats, poultry, dry beans, seeds, fruits and vegetables. * Less than 1 percent.
Mr. GATHINGS. Now, does that table show where the purchases under 480 have been made and what countries?
Mr. McLAIN. This particular table does not.
Mr. GATHINGS. Mr. Chairman, has that previously gone into the record in some of the other hearings?
Mr. THOMPSON. Off the record. (Discussion off the record.) Mr. THOMPSON. At this point, we will insert in the record table I. Mr. DEAN. Table I shows the commodity objective for rice as of March 31, 1958, under title I, Public Law 480, in regard to signed agreements and agreements approved for negotiation.
The next table, table II, shows agreements signed as of March 31, 1958.
Table III gives the programs approved for negotiation but not yet approved.
You will notice the total quantity of rice from CCC stocks to be programed under title I, is 230,000 metric tons or 4.6 million hundredweight.
Mr. GATHINGS. How much is that in hundredweight, Mr. Dean?
TABLE I.—Title I, Public Law 480, commodity objective, rice, as of Mar. 31, 1958
Million Approximate quantity :
hundredweight Agreements signed.
2. 2 Approved by ISC_
4. 6 TABLE II.-Agreements signed title I, Public Law 480, rice, as of Mar. 31, 1958
hundredweight Country: Pakistan.--
2.2 Total quantity---
--- 2. 2 TABLE III.- Programs approved by ISC for negotiations, rice, title I, Public Law 480
1.9 Mr. Dean. Let's go back to 1956–57, the marketing year beginning August 1, and ending July 30, to discuss the movement of rice from CCC inventory.
How did your rice move?
Mr. Dean. Let's take exports, dollar sales, for good United States dollars—this is all in hundredweight, and this is on a milled basis.
It was 1,001,000 hundredweight.
For barter, as indicated by Mr. McLain's statement, one million hundredweight.
Public Law 480, 15,552,000 hundredweight.
TABLE II.-Dispositions of CCC-owned rice in fiscal years 1957 and 1958 by
Mr. THOMPSON. Is there any part of this on which you would like to make comments?
Mr. Palmby. I think that the second page of this statement I just read pretty much covers what is in these tables in detail.
The tables, particularly table I, spell out supplies, utilization, ending stocks, and, also, the exports.
And table II shows in detail the amount moving under the various Government programs, namely, title I, title II, section 416, barter, and in turn section 402.
Mr. THOMPSON. What is the world situation; the world demand for rice at the moment? Is there a shortage anywhere?
Mr. Palmby. Mr. Davis, that is a question more for the Foreign Agricultural Service. Do you care to answer that?
Mr. Davis. I do not have exact data on the world situation. There are countries, I am sure, where rice consumption would increase if the rice were available, but that, of course, is a condition which prevails all times in some areas.
Mr. THOMPSON. Do we have rice available for export now?
Mr. THOMPSON. We seem to have a conflicting opinion as to the amount of rice that has been available in the past year. The figures that I have which I think came from testimony of Mr. Butz before the Senate Committee on Finance on Public Law 480, last July or August reflected foreign requirements of 241,2 million hundredweight.
Do you recall those figures? Is that about correct?
Mr. PALMBY. Mr. Thompson, I think at this point we could be most helpful to you if we would review in detail what we have done as regards selling CCC stocks. We have a representative of the Sales Manager of the C. S. S. here and, also, a gentleman from the Grain
Division. And I think they could give us some figures at this time which would answer your question.
Mr. THOMPSON. I think that is, probably, a good way to proceed. What we are trying to find out is just how much rice we are going to need next year.
Mr. PALMBY. Yes, I understand.
Mr. THOMPSON. If we continue to maintain the surplus and do not take advantage of the foreign markets that are available then we have created a fictitious situation which will be felt when we set the support price.
Mr. PALMBY. You are talking of overall export programs specifically?
Mr. THOMPSON. Overall; I think that any additional exports of any considerable quantity would have to come under 480, would they not?
Mr. PALMBY. Yes, I would gather that is right, Mr. Thompson.
That is the reason why I would like at this point to call on the Sales Manager and the CSS people to give in detail the amounts that are moved for dollars and under various programs.
Mr. THOMPSON. Fine, let us do that.
Mr. SIKES. I have some tables here which show the CCC disposition by programs of the rice during the fiscal years 1957–58.
Under the export category and under the category of dollar sales, the dispositions for 1956–57 are shown as 1 million hundredweight. One million hundredweights of milled rice. And 76,000 hundredweight of your rough.
Estimated for 1957–58 are 1 million hundredweight milled rice and 500,000 hundredweight of rough.
Under the barter program for 1956–57, 736,000 hundredweight of milled rice, and none are reflected in 1957–58.
Under Public Law 480, title I, for the 1956–57 year, 15,552,000 hundredweight; 1957–58 title I, 6,175,000 hundredweight of milled, 252,000 rough rice.
Under title II, Public Law 480 program, 558,000 hundredweight for 1956–57, and 225,000 hundredweight, 1957–58.
Under your section 402 of ICA program we have none reflected in 1956–57; 625,000 hundredweight, 1957–58.
Donations, section 416, 2,915,000, 1956–57 of milled rice and 650,000 milled rice for 1957–58.
That is the picture of the export disposition. And the domestic disposition are as follows: Mr. PALMBY. We have some duplicate tables here. Mr. THOMPSON. That would be very helpful. Mr. Palmby. That is the first table that he has been reviewing. Mr. Sikes. The domestic disposition, dollar sales of milled rice for 1956–57, total 803,000 hundredweight of milled and 1,885,000 hundredweight of rough rice, for 1956–57. In 1957–58, 200,000 hundredweight of milled and 100,000 rough.
Donations, section 32, 508,000 hundredweight, 1956–57, and donation domestic, under section 416, 324,000 hundredweight of milled 1956–57, and 650,000 1957–58.
That is the total domestic of 1.6 million milled rice, 1.8 million rough in 1956-57, and 850,000 and 100,000, respectively, for 1957–58.
For a total of both your domestic and your exports of 22,397,000, 1956–57 milled, and 1,961,000 rough. For 1957–58, 9,525,000 milled and 852,000 rough.
Mr. GATHINGS. Mr. Chairman, those figures would indicate that it is absolutely necessary that in order to stay in the business of producing rice that rice in large quantities must of necessity be exported. Do
you agree with that? Mr. PALMBY. I think there is no doubt about that.
Mr. GATHINGS. What part of the total production of rice is consumed in this country?
Mr. Ellis. I think, approximately, half is used domestically of the production.
Mr. THOMPSON. Normally?
Mr. SATTERFIELD. I think that is true with respect to the current production.
Mr. Ellis. Yes, about half; yes, that is correct.
Mr. GATHINGS. Of course, that is under the reduced acreage that we now have?
Mr. SATTERFIELD. Yes.
Mr. THOMPSON. The figures under Public Law 480, title I, indicate that we exported 15,552,000 hundredweight in 1956-57. The estimate for the current year is 6,175,000 hundredweight.
I would like to know why that is. It seems to be an awful discrepancy.
Mr. PALMBY. Mr. Thompson, I would like to review with just a minute the relative size of our CCC inventories with respect to wheat, corn, and cotton.
In that situation, we have looked upon these programs generally under title I as being an outlet for surplus commodities. And this allocation for disposal, needless to tell you, has caused us a great deal of concern.
We have a situation where the corn inventory has gone up each year since 1951.
Our wheat inventory has gone up constantly until this year there is a slight reduction, as you
know. And we, also, had a very big cotton inventory.
So as we look at the various commodities that we have and, needless to say further, there is great demand for rice and, also, of soft white wheat, and we have found that by making limitations of soft white wheat that the countries made allocations under title I have willingly bought hard wheat even though their first preference has been soft wheat.
I mention that because we have much the same situation as regards soft white wheat in the Pacific Northwest of this country.
There again, the recipients of many title I programs would prefer soft white wheat. For many months we have restricted it (the reason being that we have much larger inventories of hard wheat, hard red winter wheat and spring wheat). And they have bought hard wheat even though they would still prefer the soft wheat.
I mention that as a predicament that we find ourselves in of trying to alleviate the huge inventories we have of a class or of a particular