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of living. We suggest for tung a minimum support price of 75 percent of parity, as proposed in H. R. 11215.

3. The year-by-year control and limitation of imports (in the case of tung oil) to that amount needed to supplement our domestic production so as to satisfy all legitimate domestic requirements, plus a reasonable carryover to care for any emergency. Such calculations and allocations should be made prior to but not too far in advance of the beginning of each marketing year.

We urge further that the meaning of the Congress be clearly and specifically set forth and that only the barest necessary minimum of discretionary authority be vested in administrative officials.

AGRICULTURAL IMPORTS SEC. — Section 22 of the Agricultural Adjustment Act, as amended, is further amended by adding the following new subsections :

“(g) In addition to the import controls provided above, the Secretary of Agriculture is authorized and directed to prescribe import quotas in the manner hereinafter provided for the purpose of preventing imports from adversely affecting the agricultural policies of Congress. It is the policy of Congress, er. cept as otherwise expressly provided for any commodity, to maintain adequate domestic sources of supply of agricultural commodities and the products thereof and to stabilize domestic prices for such commodities and products at levels which will equalize the economic status of agricultural producers with that of other segments of the economy generally and provide fair returns for the labor and investment of such producers.

“(h) Imports of articles which interfere or tend to interfere with the objectives mentioned above by displacing or tending to displace sales or other outlets for domestically produced agricultural commodities or the products thereof or by creating a condition of uncertainty with respect to domestic supply-demand relationships, or by injecting an element of instability in long-range planning, adversely affect the agricultural policies of Congress. Import quotas shall be established by the Secretary for all articles the importation of which in the quantities reasonably to be anticipated would adversely affect the agricultural policies of Congress with respect to any agricultural commodity or the products thereof. Subject to the limitations hereinafter provided, quotas so established shall be at such levels as the Secretary determines and announces would not have such adverse effect.

“(i) Import quotas established by the Secretary under this section may not be proportionately less than 50 per centum of the total quantity of such article which was admitted for consumption during a representative period determined by the Secretary. If there were no imports of the designated article in a representative period, a zero quota may be established. Designations of articles in such quotas shall be sufficiently broad to prevent evasion and unless other. wise provided shall include any form, mixture, product, or source in which the article appears in other than inconsequential amounts. Designations may be amended by the Secretary to prevent evasion, without hearing. The Secretary shall give due notice and afford interested parties an opportunity to appear and present statements in connection with any ruling establishing, modifying in a substantial degree, or terminating any such import quota. The Secretary mas prescribe rules and regulations relating to the powers conferred upon him by this section, and his decisions with respect to such import quotas shall be final.

"(j) The President may authorize imports of any article in excess of the quantities established by the Secretary as the level at which the agricultural policies of Congress would be adversely affected.

“(k) No imports of any article for which import quotas have been established by the Secretary in accordance with this section shall be admitted for consumption in excess of the import quota so established plus such additional quantities as may be authorized by the President in accordance with this section.

(1) Whenever additional imports of any article shall be admitted for consumption in accordance with the authorization of the President as herein provided, the Secretary, through the Commodity Credit Corporation or any other agency available to him, shall remove from the domestic market a corresponding quantity of articles the sales or other outlets for which are adversely affected by such imports. Articles so removed from the domestic market shall not there after be disposed of by the Secretary in such a manner as to adversely affect the agricultural policies of Congress. In removing such excess supplies from the market, the Secretary may acquire either imported articles or domestically produced articles. The cost of removing from the domestic market excess supplies equal to additional imports authorized by the President, as herein provided, shall be separately computed and shall be charged to appropriations relating to the programs served by such additional imports.

“(m) The provisions of subsections (a) through (e) shall not be applicable to the commodities or products covered by subsections (g) through (m), except that import quotas or tariff rates in effect on any such commodity or product shall continue in effect until such time as import controls covering such commodity or product become effective under subsections (g) through (m).”

(Whereupon, at 6:10 p. m., the hearing was recessed, to reconvene at the call of the Chair.)


MONDAY, JUNE 9, 1958


Washington, D.C. The subcommittee met, pursuant to call, at 2 p. m., in room 445, Old House Office Building, Representative John L. McMillan (chairman of

Present: Representatives McMillan, Grant, Albert, Abbitt, and Harrison.

Also present: Representatives Poage and Matthews; and Mabel C. Downey, clerk.

Mr. MOMILLAN. The committee will come to order.

This meeting this afternoon was called specially to hear from the Department on H. R. 12545 and H. R. 12566.

Mr. Miller just called and stated he would be delayed a few minutes. Mr. Thigpen, would you care to make a statement before Mr. Miller gets here?

Mr. THIGPEN. I would prefer if we can to wait for Mr. Miller to make a statement.

Mr. McMILLAN. Mr. Vance, I believe you have to catch a plane or a train. Would you like to give your statement right now? We would be very glad to hear any statement you would like to make.

Give the reporter your name and title.



Mr. VANCE. Mr. Chairman and members of the committee, for the record, I am John B. Vance, president of the Virginia Farmers Union and a member of the board of directors of the National Farmers Union. I am appearing before the committee today on behalf of the threequarters of a million voting members of the National Farmers Union as well as the 17,000 voting members of the Virginia Farmers Union.

I appreciate very much, Mr. Chairman, the scheduling of this hearing and the opportunity afforded me to present our views with respect to H. R. 12566 recently introduced by Congressman Abbitt.

The Farmers Union supports the objectives and principles contained in H. R. 12566. We consider the provisions of this bill as most constructive toward bringing about an improved peanut price-support program although it falls far short of being fully adequate. Farmers Union believes that the produccers of peanuts as well as the producers of all other agricultural commodities are entitled to parity of income We are not wedded to the specific details of any bill. We say that our growers support very strongly the principles embodied in the bill H. R. 12566, and we feel if and when an overall farm bill, I believe generally referred to as the omnibus bill, is reported out by the Agriculture Committee, we would be derelict in our responsibilities to our growers if we did not bring before the committee a constructive proposal to see that the peanut program was improved as best we could.

At least if the bill introduced by Congressman Abbitt and the bill introduced by Congressman Burleson can serve as a vehicle to eliminate completely the areas of disagrement and differences of opinion, we feel we are making some progress. We stand ready and willing to cooperate and to work as hard as we can with the people from any area to that end.

As far as we can see, H. R. 12566 does not contain any provision which would serve to give one area any advantage over the other. Quite frankly, there are areas of improvement in the legislation which our growers feel pretty strong about.

We had it in some earlier drafts of legislation which were discussed at the meetings with growers from all three areas. We went back home and asked that they be pulled out. We feel that we pulled out the ones to which most objection was voiced, not because we do not think they would be fair and equitable, but in a genuine and sincere effort to bring about harmony among all three areas, which recognize is so necessary.

On H. R. 12566 there are about four major points. I shall be just as brief as I can on them.

The No. 1 point is that it changes the allowance carryover in computing normal supply from 15 to 25 percent. That is the provision Mr. Reagan went into in some detail. The only difference between Congressman Burleson's bill and Congressman Abbitt's is a difference of two points there. I do not see that that is any major stumbling block insofar as getting together on that point.

I would like to point out and reemphasize that this is purely an effort to get the legislative allowance carryover in line with the established practices of the trade. During the last 5 years the industry has averaged as of the beginning of the marketing year, which is August 1, carrying over 21 percent of the normal consumption, exclusive of CCC inventories, which have been heavy in several of the last 5 years. It is conservatively calculated that with reasonable or more realistic CCC inventories, the industry itself could easily average a carryover of 25 percent as of August 1. That is necessary to keep the pipelines of industry open until the new crop becomes available.

The second point eliminates from the computations of supply percentages any inventory which may be held by the CCC. The purpose of this provision is to permit the carryover of reserve stocks of peanuts in good crop years which can then be offset by a reduction of quotas in subsequent years without having the carryover reduce the level of price support. That is the main purpose of that provision.

The third point is to fix the quota at 105 percent of normal supply. We feel that is necessary as a safeguard against a possible short crop. We all understand that weather is a factor which is impossible to estimate. We may come up with a crop which is so many tons above normal or so many tons below.

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