RELIEF OF FARMERS IN DROUGHT-STRICKEN AREAS DECEMBER 8, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. HAUGEN, from the Committee on Agriculture, submitted the following REPORT [To accompany H. J. Res. 411] The Committee on Agriculture, to whom was referred the joint resolution (H. J. Res. 411) for the relief of farmers in the droughtstricken areas of the United States, having considered the same, report thereon with a recommendation that it do pass with the following amendments: On page 1, line 5, after the word "drought" strike out the hyphen and insert "and/or storm". On page 1, line 9, after the word "feed" insert a comma and strike out the comma after the word "fuel". On page 2, line 16, strike out "$25,000,000" and insert "$30,000,000". Amend the title so as to read: "Joint resolution for the relief of farmers in the drought and/or storm stricken areas of the United States." The committee, after giving due consideration to the several bills and resolutions pending before it, determined to authorize an appropriation of $30,000,000 to make advances or loans to farmers in the drought and/or storm stricken areas of the United States for crop production in 1931. A letter from the Secretary of Agriculture, dated December 2, 1930, outlined the areas in which drought damage to crops was severe in 1930; describes conditions in these drought-stricken areas and recommends an appropriation for loans to farmers for crop production purposes along the lines of previous legislation of this nature. letter reads as follows: Hon. GILBERT N. HAUGEN, House of Representatives. This DEPARTMENT OF AGRICULTURE, DEAR MR. HAUGEN: During the summer and fall months of 1930 the United States suffered the most severe and widespread drought in its history with resultant heavy reduction in crop production, particularly of corn, hay, and forage crops. The drought also greatly depleted pastures, making it necessary for farmers to begin feeding their livestock much earlier than usual. As a result, farmers over a wide area will have difficulty in financing the feeding of livestock through the winter months and in obtaining seed and fertilizer for crop production in 1931. These conditions appear to justify the authorization of an appropriation by the Congress for seed, fertilizer, and feed loans along the line of previous legislation for drought and storm relief. The drought of 1930 was most severe in an area extending from the Atlantic coast of Virginia and Maryland to southeastern New Mexico. This area included all of the States of Virginia, West Virginia, Maryland, Kentucky, and Arkansas; the larger part of Tennessee, Mississippi, Oklahoma, and Missouri; very considerable portions of Ohio, Indiana, Illinois, Texas, Louisiana, Alabama and Pennsylvania, and small portions of North Carolina and Georgia. There was also severe drought over a very considerable area in Montana and smaller areas in Wyoming, North Dakota, and Washington. As an indication of the severity of the drought the average acre yield of corn in Virginia was estimated at 11.5 bushels as compared with a 10-year average of 26.8 bushels, and that of hay at 0.6 ton as compared with a 10-year average of 1.16 tons. In Maryland the average yield of corn was 15 bushels as compared with a 10-year average of 39.4 bushels. In Ohio, only a part of which was seriously affected by drought, the average yield of corn for the entire State was 25 bushels as compared with a 10-year average of 39.2 bushels, and that of hay 0.87 ton as compared with a 10-year average of 1.37 tons. The State most seriously affected by the drought was Arkansas with an average yield of corn for the entire State of 4.5 bushels as compared with a 10-year average of 18.5 bushels, and cotton 111 pounds as compared with a 10-year average of 167 pounds. Acre yields and total production of corn, hay, and cotton in several of the States seriously affected by drought are shown in the table which is inclosed. In Montana the average yield of wheat was 8 bushels per acre as compared with a 10-year average of 13.1 bushels, and that of flax was 3.7 bushels as compared with a 10-year average of 6 bushels. The figures just given on crop yields indicate only a part of the serious loss incurred by farmers. Over much of the area practically no pasture was available for livestock after August 1, so that the feeding of hay and forage was necessary over a much longer period than usual. With greatly reduced production of hay and forage, farmers over a wide area have been compelled to buy large quantities of hay and feed or to sell a part of their livestock, or both. In many instances dairy and beef cattle have been sacrified because of inability of farmers to buy feed. On many farms and in villages and towns the shortage of water has constituted a serious problem. This, again, has caused some farmers to sell their livestock. The depleted income of farmers from reduced crop production, coupled with the necessity of making unusual purchases of hay and feed, has exhausted the resources of many farmers in the drought areas. Further, these farmers have not been able to repay money borrowed from banks and other agencies for crop production in 1930 and these local agencies will have difficulty in financing these farmers again in 1931. There would appear to be, therefore, greater justification for seed loan legislation this year by the Federal Congress than on any previous occasion. As the area involved is so very much greater than in any previous year when seed loan legislation has been passed, it is believed that an appropriation of $25,000,000 will be necessary to make advances to farmers along the lines on which such loans have been made in previous years. In view of the very large area involved, the enormous number of individual applications for loans that will have to be examined, and the desirability of putting funds in the hands of farmers by the time they have actual need for them, it is hoped that this matter will be given early consideration by the Congress. In previous years funds have never been available for seed loans earlier than March 4, and in some cases they have come to the department at a considerably later date. This has necessitated great haste in the loan operations in order to put the funds in the hands of farmers in time to be of benefit to them, and the department has not been able to conduct the operation in a manner satisfactory to it. A suggested draft of a joint resolution to authorize an appropriation for loans to farmers is inclosed for your information. In view of the wide area involved, the various crops which farmers will desire to finance, and the widely varying conditions, it would seem best to draw the resolution in very general terms and to give this department wide discretion in the operation. Yours very truly, C. W. MARVIN, Acting Secretary. JOINT RESOLUTION For the relief of farmers in the drought-stricken areas of the United States Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of Agriculture is hereby authorized, for the crop of 1931, to make advances or loans to farmers in the drought-stricken areas of the United States, where he shall find that an emergency for such assistance exists, for the purchase of seed of suitable crops, fertilizer, feed for work stock, and/or fuel and oil for tractors, and when necessary, to procure such seed, fertilizer, feed and fuel, and oil, and sell the same to such farmers. Such advances, loans, or sales shall be made upon such terms and conditions and subject to such regulations as the Secretary of Agriculture shall prescribe, including an agreement by each farmer to use the seed and fertilizer thus obtained by him for crop production. A first lien on all crops growing or to be planted and grown during the year 1931 shall, in the discretion of the Secretary of Agriculture, be deemed sufficient security for such loan, advance, or sale. All such loans, advances, and sales shall be made through such agencies as the Secretary of Agriculture may designate, and in such amounts as such agencies, with the approval of the Secretary of Agriculture, may determine. For carrying out the purposes of this resolution, including all expenses and charges incurred in so doing, there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $25,000,000. SEC. 2. Any person who shall knowingly make any material false representation for the purpose of obtaining an advance, loan, or sale, or in assisting in obtaining such advance, loan, or sale, under this resolution, shall, upon conviction thereof, be punished by a fine of not exceeding $1,000, or by imprisonment not exceeding six months, or both. The Department of Agriculture has supplied the committee with a statement of the amounts loaned from similar appropriations in previous years in several States, the principal collected to October 31, 1930, and percentage of collections, and the principals outstanding. This table follows. Collections are being made continuously on these loans and considerable additional amounts have been repaid since October 31, 1930, particularly on the loans made in the spring of 1930. In addition to the cash collections the department holds warehouse receipts on cotton in storage as security for loans in the Southeastern States valued at about $70,000 to cover 1929 loans and approximately $280,000 to cover 1930 loans. Repayment of citrus and vegetable loans made in Florida in 1929 is just now beginning. The drought of 1930 was the most severe and widespread the United States has ever known, extending from Maryland and Virginia to Texas and New Mexico. In addition to this great area severe drought damage occurred over a considerable part of Montana and smaller portions of North Dakota, Wyoming, and Washington. In Montana in particular, crop production was materially reduced. Altogether, all or considerable parts of 22 States were affected. Drought condiitons prevailed in limited areas in other States, but other portions had sufficient rainfall to bring the total production up to, or nearly to, an average figure for these States. While there was no widespread storm damage to crops in 1930, severe crop loss was caused by storms in some localities, particularly by hail. It is the view of the committee that aid should be extended where necessary to farmers in such areas as well as in the areas severely damaged by drought. As an indication of the severity of the drought, which probably affected the production of corn more than that of any other crop, the estimated production of corn this year is about 600,000,000 bushels, or between 20 or 25 per cent less than the average production in recent years. Damage to the corn crop was probably more severe in Arkansas than in any other State, the average acre yield this year being estimated at 4.5 bushels as compared with a 10-year average of 18.5 bushels. In Maryland the average yield of corn was reduced from 39.4 bushels to 15 bushels, and in Virginia from 26.8 |