(2) A decrease of $1,492,531 under project 2 due to elimination of work on production goals and reduction of work involved in assuring farmers adequate farm materials, equipment, and facilities.

The work on production goals financed from this appropriation will be eliminated in 1954. This work involved carrying the production-goals program to State and county levels by indicating county-crop goals for the guidance of farmers in local communities.

All work on reports and surveys on fertilizers, pesticides, equipment, and other agricultural materials and facilities and assistance to farmers in procuring such items will be eliminated in 1954 on the assumption that materials and facilities will be in sufficient supply to be readily available to all producers. The work of assistance to selective-service boards by furnishing information on the type, scope, and importance to needed agricultural production of farming operations dependent on farmers subject to the draft or those already in the armed services will be continued.

(3) A decrease of $803,250 due to elimination of the project "Determination of cotton acreage."

The 1952 Agricultural Appropriation Act included language providing funds for measuring acreage planted to cotton regardless of whether marketing quotas were in effect. This language was included in recognition of the need for maintaining accurate, current acreage data to be used in the event marketing quotas became necessary, in establishing individual farm allotments so as to reduce to a minimum inequities which might result in the absence of adequate data.

The funds provided were not sufficient for actual measurement of acreage. The Congress was so advised by the Department, but was assured that within available funds, every effort would be made to keep up-to-date records in lieu of actual measurement, by means of survey cards submitted by farmers to county PMA committees reporting on planted cotton acreage in production, cropland, and total land in the farm. At the request of the Department the language was eliminated from the 1953 Appropriation Act with the understanding that work on maintaining cotton-acreage data would be continued.

Since it is probable that acreage allotments and marketing quotas will be required on the 1954 crop of cotton, provision for this type of cotton acreage reporting is eliminated in the 1954 budget on the assumption that it will be necessary through other means of financing to obtain current data on cotton acreage along with other expenses necessary to administer an acreage allotment and marketing-quota program on the 1954 crop of cotton.

CHANGES IN LANGUAGE AND TITLE

The estimates include proposed changes in language and title of the item as follows (new language underscored; deleted matter enclosed in brackets):

"AGRICULTURAL [PRODUCTION] ADJUSTMENT PROGRAMS

"Agricultural [Production] Adjustment Programs, Production and Marketing Administration

"To enable the Secretary to formulate and carry out acreage allotment and marketing-quota programs pursuant to provisions of Title III of the Agricultural Adjustment Act of 1938, as amended (7 U. S. C. 1301–1393), and to provide advice and assistance [in obtaining equipment, materials, and facilities necessary to attain needed production of agricultural commodities, $10,000,000 to selective service authorities in connection with farm labor, $35,600,000, of which not more than [$3,000,000 $5,600,000 shall be transferred to the appropriation account "Administrative expenses, Section 392, Agricultural Adjustment Act of 1938": Provided, That $5,750,000 of this appropriation shall be placed in reserve pending determination by the Secretary as to the necessity of marketing quotas for the 1954 crop of wheat and this amount shall be released in such sums and at such times as may be determined by the Bureau of the Budget to be necessary."

Changes in language

The first change in language deletes the provisions for assistance to farmers to procure the equipment, materials, and facilities necessary to attain needed production of agricultural commodities except for advice and assistance to selectiveservice authorities in connection with farm labor.

The second change provides that $5,750,000 of this appropriation shall be placed in reserve pending determination of the necessity for marketing quotas on the 1954 crop of wheat and that this amount shall be released at such times and in such amounts as may be determined by the Bureau of the Budget to be necessary.

STATUS OF PROGRAM

In 1952 acreage allotment and marketing-quota programs were in effect on only two of the basic commodities-tobacco and peanuts. For other commodities another record-breaking output was requested. There are several reasons for the need for high levels of agricultural production:

1. As a safeguard against the necessity of imposing domestic controls on food and fiber consumption.

2. To hold down inflation.

3. To successfully attain domestic and foreign objectives. Food is an instrument of national policy.

4. To provide for the direct military phases of the defense program.

5. To build up reserves of some storable commodities, particularly feed grains, which are dangerously low.

6. To provide for a rapidly increasing population. At the present rate of increase, there will be about 2.5 million more persons to feed and clothe from the 1952 crop and per capita consumption of food in this country is, on the average, 13 percent higher than it was 10 to 15 years ago.

TOBACCO-ACREAGE ALLOTMENT AND MARKETING-QUOTA PROGRAM

Quotas must be proclaimed whenever the total supply of tobacco as of the beginning of the marketing year then current exceeds the reserve-supply level (normal supply plus 5 percent thereof). Regardless of the supply situation, however, legislation provides that a quota must be proclaimed for each kind of tobacco for which a quota was proclaimed in the preceding year.

The marketing quota proclamation specifies in pounds of tobacco the quantity which may be marketed during the next following marketing year. It is an amount which will make available for marketing, during that year, a supply equal to the reserve-supply level. For the 1953 crop, quotas were proclaimed as follows:

Referendum

Within 30 days after the issuance of the proclamation of quotas, a referendum must be held. The provisions relating to tobacco provide that in addition to voting on whether quotas are favored for a period of 1 year, the Secretary shall also submit the question of whether quotas are favored for a period of 3 years. Farmers voting in referenda voted as follows:

The quota may be increased or terminated if, after investigation, it is determined that such action is necessary (1) to make available free of marketing restrictions a normal supply of tobacco (this must be done by March 1), (2) to meet a national emergency, and (3) to meet an increase in demand.

State marketing quotas and acreage allotments

The national marketing quota is apportioned among the States on the basis of historical production, and the volume of tobacco apportioned to each State is converted to a State acreage allotment on the basis of the average yield per acre during the preceding 5 years adjusted for abnormal conditions of production. There are set forth below, by States and by kinds of tobacco, the acreage allotted for 1952 and 1953:

Two laws enacted during the 2d session of the 82d Congress will become operative beginning with the 1953 crop:

Public Law 464 approved July 8, 1952, amends the definition for "carryover" and "total supply" for Maryland tobacco, to provide for computing carryover as of January 1 following the beginning of the marketing year, instead of October 1, the beginning of the marketing year. This reduces the carryover and total supply by the disappearance of Maryland tobacco during the period October 1 and January 1, and consequently will require a larger marketing quota in order to bring the total supply to the reserve supply level.

Public Law 528 approved July 12, 1952, reduces the minimum stated acreage of burley from 1 acre to seven-tenths of an acre. Under present legislation, some growers are protected against having their allotments reduced below 1 acre (pursuant to provisions of Public Law 276, 78th Cong.), while many other growers have no such protection. Farms without that protection and with allotments of 1 acre or less have had their allotments reduced 32 percent since 1945, while those whose small allotments were protected suffered no decrease but actually have had their acreage increased during the same period. Since the production of burley is characterized by a large number of very small acreage allotments, there was definite need for legislation to equalize among all growers the adjustments which must be made from time to time in burley acreage allotments.

PEANUT ACREAGE ALLOTMENT AND MARKETING QUOTA PROGRAM

Proclamation of quota

Regardless of the supply situation, a national marketing quota must be proclaimed between July 1 and December 1 of each calendar year. The national marketing quota for the 1953 crop, announced November 17, 1952, is 663,000 tons.

Amount of quota

The amount of the national marketing quota is that quantity of peanuts which will make available from the crop with respect to which the quota is proclaimed, a supply equal to the average quantity of peanuts harvested for nuts during the 5 years preceding the year for which the quota is proclaimed, adjusted for current trends and prospective demand conditions.

Termination or increase in quotas

The quota may be terminated or increased to meet a national emergency or an increase in export demand.

National acreage allotment

The national marketing quota, expressed in tons of peanuts, is converted to a national acreage allotment by dividing the quota by the normal yield per acre determined on the basis of the average yield per acre in the preceding 5 calendar years. Adjustments are made for trends in yields and for abnormal conditions of production affecting yields during the 5-year period. The national acreage allotment for 1953 is 1,678,481 acres (1,326,000,000 pounds divided by the normal yield of 790 pounds per acre).

State acreage allotments

The national acreage allotment is apportioned among the States on the basis of their share of the national acreage allotment for the most recent year in which an apportionment has been made.

There are set forth below, by States, the acreages allotted under the 1952 and 1953 programs:

Collecting, reviewing, and compiling basic 1953 (October 1952-May 1953). data and reconstituting farms.

Determining, computing, compiling, and 1953 (October 1952-May 1953)

reviewing farm allotments and yields. Preparing and mailing notices__

1953 (November-December 1952). 1953 (January-February 1953). 1953-54 (March-November 1953). 1953-54 (March-August 1953).

MARKETING QUOTAS

Referendum (marketing quotas were ap- None. proved through 1953 marketing year in

a referendum held in December 1950).

Determining producers' quotas, issuing 1953, 1954, 1955 (June 1953-Septemmarketing quota notices and cards,

handling marketing reports, violations,

penalties, etc.

ber 1954).

Auditing county committee records 1954 (September 1953-May 1954).