Counties in Commercial Corn-producing Areas

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 C. 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."

of the type specified in section 2 hereof. Any arrangement for the operation of the plant shall be under such terms and conditions as will further the purpose of this Act and may include provision for reimbursement by the payment of a fee or otherwise for any losses incurred by the operator thereof. In the event it is determined by the Secretary that no appreciable amount of grains which are inferior, damaged, deteriorated or in immediate danger of damage or deterioration are available either from private interests or from Commodity Credit Corporation owned stocks, he may operate the plant (1) for the manufacture of alcohol from surplus grains regardless of the condition of such grains, and/or (2) for conducting research into new and improved uses of surplus grains for industrial uses. Any grains used in the operation of the plant may be obtained by the Secretary of Agriculture in accordance with the provisions of section 2 hereof.

SEC. 5. The Secretary of Agriculture may store alcohol manufactured at such plant or sell it at such price as he deems reasonable. All proceeds from the sale of such alcohol shall be deposited into the Treasury of the United States as miscellaneous receipts.

SEC. 6. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. The Secretary of Agriculture may also transfer from funds available to the Commodity Credit Corporation such sums as may be necessary to carry out the purposes of this Act.

[H. R. 10514, 85th Cong., 2d sess.]

A BILL To transfer to the Secretary of Agriculture certain alcohol-producing facilities of the United States, to require him to produce alcohol from surplus agricultural products and certain corn and wheat, to provide for the disposal of such alcohol, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there shall be transferred to the Secretary of Agriculture (hereinafter referred to as the "Secretary") the Governmentowned alcohol-producing facility at Omaha, Nebraska, known as plancor numbered 1608, and any other Government-owned facility useful in any program authorized by this Act, upon request for such transfer by the Secretary. The Secretary shall request the transfer of all such facilities within a reasonable time after the date of enactment of this Act but not later than January 1, 1959. SEC. 2. The Secretary shall operate the facilities transferred to him pursuant to the first section of this Act to manufacture alcohol from surplus agricultural products and from corn and wheat purchased under section 6 of this Act.

SEC. 3. No officer or employee of any department, agency, or independent establishment of the Government of the United States shall purchase any motor fuel for use by such department, agency, or independent establishment unless at least 5 per centum of such fuel, by volume, is alcohol manufactured under section 2 of this Act.

SEC. 4. The Secretary shall sell for any use, other than human consumption, any alcohol which is not disposed of under section 3 of this Act at a price equal to the cost to the United States of manufacturing such alcohol.

SEC. 5. The Secretary shall, in addition to the manufacture of alcohol as required by section 2 of this Act, conduct experimental programs for manufacture of butadiene from alcohol produced from surplus agricultural products and from corn and wheat purchased under section 6 of this Act for the purpose of demonstrating the commercial feasibility and ascertaining the cost of such production, and shall carry on such other research as may be necessary to carry out the programs authorized by this section, including the development of improved processes and the development and commercial production of byproducts.

SEC. 6. The Secretary is authorized to purchase for use in manufacturing alcohol under section 2 of this Act and for carrying out the programs authorized by section 5 of this Act, any corn and any wheat which by reason of its high moisture content is ineligible for purchase by the Commodity Credit Corporation under any other provision of law.

SEC. 7. Section 3 of this Act shall not apply to any purchase of motor fuel during any period when the Secretary certifies that, by reason of a lack of surplus agricultural products or of corn or wheat eligible to be purchased under section 6, he is unable to produce sufficient alcohol to meet the requirements of section 3 of this Act.

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