The Republican Report for the First Session, Eighty-ninth Congress

This law (H.R. 5721) amended the Agricultural Adjustment Act of 1938, as amended, to provide for acreage-poundage marketing quotas for tobacco, and amended the tobacco price-support provisions of the Agricultural Act of 1949.

EXTEND TIME FOR WHEAT REFERENDUM

(Public Law 89-82. Approved July 24, 1965)

This law (H.R. 9497) extended the time for conducting the referendum with respect to the national marketing quota for wheat for the marketing year beginning July 1, 1966, from not later than August 1, 1965, as specified under existing law, to not later than 30 days after adjournment sine die of the 1st session of the 89th Congress.

FOOD AND AGRICULTURE ACT OF 1965

(Public Law 89-321. Approved November 3, 1965)

This law (H.R. 9811) amended the Agricultural Adjustment Act, as reenacted and amended by the Agricultural Marketing Agreement Act of 1937, as amended, to provide, generally, a 4-year program (1966-69) to maintain farm income, stabilize prices, and assure adequate supplies of agricultural commodities, reduce surpluses, lower Government costs, and promote foreign trade, and afford greater economic opportunity in rural areas.

Title I provided for a class I base plan in Federal milk market order areas, to reduce production of milk in excess of market needs and stabilize income of dairy producers in market order areas. It included provisions for individual voting in farmer referendums on the class I base plan; leaving the legal status of producer-handlers unchanged; authorizing marketing orders for manufacturing milk; and entry of new producers into these markets.

Title II extended the National Wool Act of 1954 through December 31, 1969, and set the formula for the support price for shorn wool. Title III extended the feed grain program for 4 years; provided for price support loans and payments-in-kind to program participants; required cooperators to divert acreage to conserving uses; and set the total price support at between 65 and 90 percent of parity.

Title IV extended the one-price cotton program for 4 years; guaranteed cooperators between 65 and 90 percent of parity on the permitted acreage of the allotment; required of participating farmers a mandatory reduction of 12% percent in 1966 from the farm acreage allotment (for subsequent years, up to 12% percent, as fixed by the Secretary of Agriculture); established a domestic allotment of not less than 65 percent of the farm allotment; permitted farmers voluntary reduction of acreage down to the domestic allotment in return for diversion payments; provided for loans to cooperators at not more than 90 percent of the estimated average world market price for cotton, and set the formula for price support payments; set the formula for payments for diverting acres; provided that farms with allotments of 10 acres or less, or the projected yield of which is 3,600 pounds or less, not be required to reduce acreage or production, and made special provisions for price support and diversion payments to the small farmer; provided that producers may stay out of the program, receive no price supports or payments, and sell cotton into export without penalty, with the national total of such nonprogram acreage not to exceed 250,000 acres in 1966, and provided for subsequent reduction; and permitted sale or lease of cotton acreage allotment under certain conditions and exchange of rice and cotton acreage allotments under certain conditions.

Title V continued the voluntary wheat certificate program for 4 years with slight modifications. In order to increase producer income, wheat used domestically as food would be supported at 100 percent of parity and support for wheat not accompanied by marketing certificates would be not less than $1.25 per bushel in 1966. For subsequent years producers are assured of returns from price support and other payments equal to not less than the total support provided for 1966 unless the acreage allotment is increased above 50 million acres exclusive of small farms. Costs of certificates to domestic processors for all 4 years would not be more than the difference between the loan value and $2 per bushel. The law did not contain the so-called escalator clause whereby the Secretary could increase the costs of certificates to processors if the price of bread increased. Title VI authorized the Secrtary to enter into 5- to 10-year contracts with farmers calling for conversion of cropland into vegetative cover, water storage facilities, or other soil, water, wildlife or forest conservation uses. Payments would be at a rate of not more than 40 percent of the annual market value of the crop that would have been produced on the land. The Secretary was authorized to obligate not more than $225 million per year in new contracts signed during each of the next 4 years.

Title VII, among other things, extended for 4 years the authority for the leasing of tobacco acreage and poundage; directed the Secretary of Agriculture to make a study of the parity income position of farmers and report thereon to Congress not later than June 30, 1966; authorized any State agency administering public lands to transfer an acreage allotment on such lands from one farm to another in the same county; and authorized the Secretary to use Commodity Credit Corporation funds for the purchase of dairy products when there is not a sufficient supply of such products in the Commodity Credit Corporation to meet commitments.

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