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U.S. Farm Bills, National Agricultural Law Center University of Arkansas [email protected] • (479) 575-7646 www.NationalAgLawCenter.org Senate Report to Accompany Agricultural Act of 1954 S. Rep. No. 83-1810 (1954) The digitization of this Report was performed by the National Agricultural Law Center under Specific Cooperative Agreement No. 58-8201-6-140 with the United States Department of Agriculture, National Agricultural Library. Calendar No. 1825 S3D CONGRESS SENATE REPORT ~d '{ Session T No. 1810.. AGRICULTURAL ACT OF 1954 JULY 15 (legislative day, JULY 2), 1954.-0rdered to be printed Mr. AIKEN, from the Committee on Agriculture and Forestry, submitted the following REPORT together with SUPPLEMENTAL, MINORITY, AND SEPARATE VIEWS [To accompany S. 3052) The Committee on Agriculture and Forestry, to whom was referred the bill (S. 3052) to encourage a stable, prosperous, and free agriculture, and for other purposes, having considered the same, report thereon with a recommendation that it do pass with an amendment. GENERAL STATEMENT S. 3052 was introduced to carry out a number of recommendations contained in the President's message of January 11,1954 (R. Doc. No. 292).· After extensive hearings and consideration of the bill your com­ mittee recommends its passage with a number of changes which have been incorporated in a single amendment in the nature of a substitute. The committee substitute is fully discussed below. SHORT TITLE The first section of the substitute provides that it may be cited as the "Agricultural Act of 1954." TITLE I-SET-ASIDE OF AGRICULTURAL COMMODITIES Title I of the substitute provides for the insulation from commerical markets of up to $2,500 million worth of agricultural commodities held or hereafter acquired by Commodity Credit Corporation from 1954and prior years' production.' The commodities and the maximum 2 AGRICULTURAL ACT OF 1954 and minimum quantities thereof which may be set aside within the $2,500 million limitation are as follows: Commodity Maximum Minimum quantity quantity Wheat (bushels) • • _ 600,000,000 400,000,000 Upland cotton (bales) _ 4,000,000 3,000,000 600, 000, 000 o ~~U~~S(~~,~~Scr~~~~::::::::::::::::::::::::::::::::::::::::::::::::: 200, 000, 000 o Nonfat dry milk solids (pounds)-----------.------------ _ Cheese (pounds) _ 300,000,000 o 150,000,000 o Commodities so set aside could be disposed of only at 105 percent of parity or for foreign aid, market development, school lunch, stock­ piling, research or education, and disaster or national emergency pur­ poses, and then only in such manner as not to interfere with normal marketings. Commodities so set aside would be excluded from the computation of "carryover" for the purpose of determining price support levels, but not for the purpose of applying marketing quotas or acreage allot­ ments. Wheat and cotton are the only commodities which may be included in the set-aside which would be affected by this provision, since "carrvover" does not enter into the determination of the mini­ mum price-support levels for the other commodities to be set aside, and wheat and cotton would be affected only after 1955 in view of the provisions of section 201 of the committee substitute fixing the support level for 1955 at 90 percent of parity. It is estimated that the mini­ mum support level for the 1956 crop of cotton would be 88 percent of parity with no set-aside and 90 percent of parity with either the maxi­ mum or minimum set-aside. The minimum support level for the 1956 crop of wheat is estimated at 75 percent of parity with no set-aside or with a set-aside of 400 million bushels and approximately 84 percent of parity with a set-aside of 500 million bushels. This title also pro­ vides for exclusion of commodities in the national stockpile from the computation of "carryover," but in this respect it makes no change from the existing law as contained in section 301 (d) of the Agricultural Adjustment Act of 1938, as added by section 6 of Public Law 117 of this Congress. Your committee made two changes in this title from the bill as introduced. First, a provision delaying the set-aside until "after the price support schedules prescribed by section 101 of the Agricultural Act of 1949 become effective" has been omitted, since section 201 of the committee substitute would make these schedules inapplicable to the 1955 crop, and since the omitted provision would, in any event, have made the effective date of the set-aside provision uncertain. Second, use of the set-aside commodities for relief purposes in the United States has been limited to disaster relief. TITLE II-SUPPORT PRICES Basic commodities Section 201 of the committee substitute would continue price support on the 6 basic commodities-corn, cotton, peanuts, rice, tobacco, and wheat-at 90 percent of parity for 1 additional year, 1955. A majority of your committee felt that producers should be AGRICULTURAL ACT OF 1954 3 given this opportunity to bring supplies in line with demand through the operation of marketing quotas and acreage allotments, and that support prices should not be reduced at the same time that farmers' income is being reduced through restricted production. Tobacco producers, generally, would be entitled to support at 90 percent of parity in any event under section 101 (c) of the Agricultural Act of 1949. Long staple cotton Section 202 would set price support for long staple cotton at the minimum determined in accordance with the schedule set out in section 101 (b) of the Agricultural Act of 1949. Your committee is advised that the producers of this type of cotton desire to have the support set at the minimum level in order that the cotton may move freely into the market. This provision would be applicable only to extra long staple cotton described in subsection (a) and ginned as required by subsection (e) of section 347 of the Agricultural Adjust­ ment Act of 1938. Potatoes Clauses (1) and (2) of section 203 simply remove potatoes from the list of commodities for which price support is mandatory under title II of the Agricultural Act of 1949. This title has been ineffective with respect to potatoes since section 5 of Public Law 471, 81st Congo (7 U. S. C. 1450) prohibited price support for potatoes of the 1951 and subsequent crops unless marketing quotas were in effect. This section does not affect section 5 of Public Law 471 and price support for potatoes would continue to be prohibited. Dairy products Clause (3) of section 203 makes the following changes in the price support law applicable to milk and butterfat: (1) The price support level for the marketing year September 1, 1954 to August 31,1955, is fixed at not less than 85 percent of parity. (2) During the period begmning September 1, 1954 and ending August 31,1957 marketing years would begin on September 1, instead of April 1 as now provided by departmental regulation. (3) During the period from enactment of the bill to August 31, 1956 payments to producers or processors would be authorized as methods for support. (4) Loans on, and purchases of, milk and butterfat are authorized as methods of support, in addition to loans on, and purchases of, products of milk and butterfat. (5) During the period September 1, 1954 to June 30, 1956, not to exceed $50 million of Commodity Credit Corporation funds would be used to increase the consumption of milk in schools. (6) For the marketing years beginning in 1955 and 1956 the Secre­ tarv is directed to take seven enumerated factors into consideration, in addition to the level necessary to assure an adequate supply, in determining the price support level. (7) 1n determining support prices the Secretary is directed until July 1, 1956 to use the parity equivalent for milk computed on the thirty-month base July 1, 1946 to December 31, 1948, rather than that computed on the new moving base prescribed by the Secretary in April of this year. The parity equivalent on the 1946-48 base is 4 AGRICULTURAL ACT OF 1954 88.5 percent of parity and this factor was used in determining the sup­ port prices now in effect. The parity equivalent computed on the moving base applicable to the period April through December 1954 is 84.1 percent. After July 1, 1956 the parity equivalent would be computed in a manner similar to that prescribed by the Secretary. Feed grains Section 204 provides mandatory price support for the 1955 and 1956 crops of oats, rye, barley, and grain sorghums at not less than levels comparable, on the basis of feed values, with the support level for corn. The Secretary is now required by section 401 (b) of the Agricultural Act of 1949 to take into account the feed value of these grains in relation to corn, along with other factors, in determining the price support levels, if any, for these commodities. This section would make feed values the sole factor to be taken into account, make price support mandatory, and remove the 90 percent of parity limitation on the maximum support level. The following table shows the 1954 support prices for these commodities and their support prices deter­ mined under this section, using current data: Support prices under sec. 1954support prices 204of committee substitute Commodity Dollars and Percent of Dollars and , Percent 01 cents I parity cents parity Oats .•..•••••__••••_•••••___ ._.__•••••_bushel.; $0.75 85 $0.81 Il2 Rye.__•______ •••••_•••••••••___ ._••••_._do_. __ 1. 43 85 1.38 81 Barley._. ______ ••••••_•••••____ ••••______ do __ ._ 1.15 85 1.31 96 Grain sorghums___ •• _•••••_•• .hundradwetght.; 2.28 85 2.89 113 Diverted acreage Section 205 directs the Secretary, to the extent necessary and practicable to prevent the production of excessive supplies, to condi­ tion price support for any commodity on the producer's limiting pro­ duction on acres diverted from crops receiving price support.
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