he introduce his bill and we would be glad to consider it at the time that we draft our bill. You will remember your visit to my office. Senator CAPEHART. Very well, I do. The CHAIRMAN. Again, this print is not to be considered a committee bill by any means, it is merely something to work on. Senator THYE. If I might be permitted a few questions here, Mr. Chairman. The CHAIRMAN. The committee print, and a summary of it will be made a part of the record at this point. (The committee print is as follows:) [Committee print, January 17, 1956] (Draft prepared by committee staff to illustrate suggestions made by various witnesses at committee's hearings held from October 19, 1955, to November 24, 1955) [S. -, 84th Cong., 2d sess.] A BILL To provide an improved farm program Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Agricultural Act of 1956." TITLE I. PRICE SUPPORT PRICE SUPPORT LEVELS SEC. 101. (a) Section 101 (d) (6) of the Agricultural Act of 1949 is amended to read as follows: "(6) except as provided in subsection (c), the level of support to cooperators for any basic agricultural commodity of any grade, type, staple, variety, or other quality for which the supply is not in excess of requirements for domestic consumption and exports, plus a reasonable reserve for contingencies, shall be not less than 90 per centum of the parity price therefor if producers have not disapproved marketing quotas." (b) Section 403 of the Agricultural Act of 1949 is amended to read as follows: "SEC. 403. In establishing support prices for any commodity appropriate adjustments shall be made in its parity prices for differences in grade, type, staple, variety, quality, location, and other factors. Such adjustments shall, so far as practicable, be made in such manner that the average adjusted parity price for such commodity will, on the basis of the anticipated incidence of such factors, be equal to the parity price for the commodity determined as provided in the Agritural Adjustment Act of 1938." NOTE. The italicized subsections (a) and (b) shown below are alternative proposals to subsections (a) and (b) shown above. Some witnesses suggested that the average grade of cotton should be the standard grade and this proposal could be accomplished by striking out the last sentence of subsection (a) below. "Sec. 101 (a) Section 403 of the Agricultural Act of 1949 is amended to read as follows: "Sec. 403. Appropriate adjustments may be made in the support price for any commodity for differences in grade, type. variety, staple, quality, location, and other factors, and, in the case of wheat, the Secretary shall provide for appropriate discounts for varieties which the Secretary determines are unsuitable for milling purposes. Such adjustments shall, as far as practicable, be made in such manner that the average support price for such commodity will, on the basis of the anticipated incidence of such factors, be equal to the level of support determined as provided in this Act. Middling one-inch cotton shall be the standard grade for purposes of parity and price support." (b) Section 3 (a) of Public Law 272, Eighty-first Congress, is hereby repealed. (c) Section 101 (d) of the Agricultural Act of 1949 is amended by adding at the end thereof the following additional paragraph: "(8) the support price available to any producer in any calendar year for any basic agricultural commodity, other than tobacco, shall be decreased as provided in the following table as the aggregate amount of price support loans and purchases made to the producer with respect to all basic agricultural commodities increases; but the price support made available on any commodity covered by paragraph (6) of this subsection shall in no event be less than 90 per centum of its parity price. PRICE SUPPORT TABLE FOR BASIC AGRICULTURAL COMMODITIES If the loan or purchase would increase but not exceeding $ The support price shall be the following percentage of the level of support otherwise provided by this Act: 100 Exceeding $ Exceeding $ Exceeding $ Exceeding but not exceeding $ For the purpose of this paragraph that portion of any loan or purchase which would increase the total price support loans or purchases made to the producer with respect to all basic agricultural commodities, other than tobacco, during the calendar year to any multiple of $ shall be treated separately from the balance of such loan or purchase. In the case of husband and wife, parents and dependent children, or other family unit residing in one household and recognizing a single authority as the head of the family, not more than one person or group of persons shall be recognized as a producer for the purpose of this paragraph. Price support through operations other than loans or purchases may not exceed the minimum support price provided by this paragraph. In the absence of action by the Secretary under section 402 of this Act, the 'current support price' of any basic agricultural commodity, other than tobacco, for the purposes of section 407 of this Act shall be the minimum support price provided by this paragraph." NOTE. The following italicized alternate paragraph (8) would increase the support level for small products without reducing the support level for large producers. "(8) the level of price support available under any loan or purchase to any cooperator for any crop of a basic agricultural commodity (other than tobacco) for which marketing quotas have not been disapproved by producers, shall not be lower than the level set forth in the following table: Price support table for basic agricultural commodities other than tobacco If the loan or purchase would increase the aggregate price support loans and Exceeding $1,000 but not exceeding $2,000– The level of support available through such loan or purchase shall be the following percentage of the parity price: 100 98 96 94 92 90 88 86 84 82 80 78 76 75 For the purpose of this paragraph that portion of any loan or purchase which would increase the total price support loans or purchases made to the producer with respect to all basic agricultural commodities, other than tobacco, during the calendar year to any multiple of $1,000 shall be treated separately from the balance of such loan or purchase. In the case of husband and wife, parents and dependent children, or other family unit residing in one household and recognizing a single authority as the head of the family, not more than one person or group of persons shall be recognized as a producer for the purpose of this paragraph. In the absence of action by the Secretary under section 402 of this Act the current support price' of any basic agricultural commodity, other than tobacco, shall be determined for the purposes of section 407 of this Act without regard to the provisions of this paragraph." (d) The Agricultural Act of 1949 is amended by adding at the end thereof the following new section: "SEC. 421. No price support shall be made available to any producer who customarily derives more than 50 per centum of his income from occupations other than the production of agriculaural commodities." (e) This section shall be effective with respect to 1956 and subsequent crops. PARITY FORMULA SEC. 102. Section 301 (a) (1) (G) of the Agricultural Adjustment Act of 1938 (providing for a dual parity formula) is amended by striking out the following: ", as of any date during the six-year period beginning January 1, 1950,". The Secretary shall make a thorough study of possible methods of improving the parity formula and report thereon, with his recommendations, to Congress within six months after the enactment of this Act. TITLE II-SOIL BANK ACT OF 1956 SHORT TITLE SEC. 201. This title may cited as the "Soil Bank Act of 1956". DEFINITIONS SEC. 202. As used in this title (1) The term "agricultural commodity" means any product of the soil which is produced from annual seeding for commercial purposes. (2) The term "Secretary" means the Secretary of Agriculture. ACREAGE TO BE RETIRED AND METHOD OF APPORTIONMENT SEC. 203. (a) The Secretary is authorized and directed to establish and maintain a soil bank as provided by this title. Prior to November 15 in each year, beginning with 1956, the Secretary shall determine the acreage to be maintained in the soil bank during the succeeding year. Such acreage shall be the number of acres, if any, by which— (1) the acreage used for the production of agricultural commodities dur ing the year in which such determination is made, plus any acreage then in the soil bank or retired from production as a result of acreage allotments or marketing quotas, exceeds (2) the acreage needed during the year for which such determination is made for the production of agricultural commodities for domestic consump tion and export and to maintain adequate reserves to meet emergency requirements. In making the determination referred to in clause (2) for any year, stocks of agricultural commodities on hand from prior years shall be taken into consideration only to such extent as is necessary to provide for the orderly liquidation of such stocks over a reasonable period of years and as will not result in undue hardship to producers. As soon as practicable after the enactment of this Act the Secretary shall determine the acreage which, consistent with the purposes of this Act, can be maintained in the soil bank during 1956. NOTE. The following subsections give the Secretary very broad authority in apportioning acreage to be retired, and would permit establishment of an acreage reserve and a conservation reserve within the soil bank as outlined in the President's program. However separate computation and apportionment of such reserves could be provided for specifically if that appeared desirable. (b) The acreage, if any, to be added to the soil bank for any year shall be apportioned to States, counties, and farms on the basis of their respective acreages used for the production of agricultural commodities, plus their respective acreages maintained in the soil bank, during the preceding year, except that (1) so much, if any, of the acreage to be added to the soil bank in any year as the Secretary shall deem necessary therefor shall be apportioned to States, counties, and farms in such manner as may be necessary to restrict production on acreage diverted from crops under acreage allotment or marketing quota, and to relieve hardship resulting from such diversion, particularly in cases where such relief is necessary for the support of the family residing on and operating the farm; (2) appropriate adjustments shall be made for acreage continued in the soil bank from the preceding year; (3) appropriate adjustments shall be made to the extent necessary to assure adequate production of agricultural commodities and products not in surplus and to discourage the production of agricultural commodities and products in surplus; (4) appropriate adjustments may be made to prevent of reduction of family farm units, whether operated by owners or tenants, to an uneconomic size; (5) appropriate adjustments may be made, to the extent desirable for the effective administration of this title, where the acreage apportioned to any farm under this subsection is too small to permit of effective administration, or is slightly more or less than a full field or other unit; (6) appropriate adjustments may be made where the Secretary determines through the State, county, and local committees and other sources of information that certain producers, or producers in certain areas, desire to add less acreage to the soil bank than that which would otherwise be apportioned to them, while other producers or producers in other areas, desire to add a greater acreage to the soil bank than that which would otherwise be apportioned to them; (7) appropriate adjustments may be made to meet the respective needs of various areas for flood control, drought control, and other conservation benefits; and (S) if the Secretary determines that in any State or county, a majority of the producers desire such action and that such action will contribute to the effective and equitable administration of this title, the Secretary, in lieu of apportioning the State apportionment to counties and farms or apportioning the county apportionment to farms may determine the lands to be added to the soil bank in such State or county through negotiation, advertising and bid procedure, or other suitable method. METHODS OF RETIREMENT SEC. 204. (a) The Secretary is authorized to provide through lease, purchase, payments, or other contractual arrangements (including price support for commodities produced on other lands at levels higher than otherwise provided) for retirement of the acreage apportioned to any farm under section 203 (b) of this title from the production of agricultural commodities to such uses as he determines will protect and improve the fertility of the soil and promote the general welfare. In determining which method of retirement shall be used, the Secretary shall give consideration to the following factors: (1) Needs in future years to withdraw lands from the soil bank; (2) the desirability of distributing the expiration of leases uniformly by years and areas; (3) the period of years necessary to obtain the maximum benefits from the conservation uses to which the lands are retired; (4) the desires of the person with whom such contractual arrangement is entered into; (5) the availability of appropriations; and (6) such other factors as the Secretary may deem proper. (b) Not more than per centum of the lands to be added to the soil bank in any year shall be retired through purchase or lease in excess of five years. The contractual arrangement under which lands are retired shall contain (1) a provision prohibiting the retired lands from being used during the period of retirement for the production of agricultural commodities or products (including livestock products); but permitting the Secretary to return such lands to production if the need therefor should arise prior to the end of the prescribed period of retirement; (2) such provisions as the Secretary may deem necessary limiting the diversion of other lands on the farm from conservation, woods, pasture, or other use to uses which would tend to defeat the retirement from production provided for by such contractual arrangement; (3) a provision (A) giving the Secretary a right of entry on the farm with respect to which such contractual arrangement is entered into for the purpose of measuring acreage and otherwise determining compliance with such contractual arrangement, and (B) requiring the farm operator to certify under oath or affirmation with respect to matters necessary to determine such compliance; (4) such provisions as may be necessary to provide equitable treatment for tenants and prevent them from being forced off the farm or restricted to the operation of uneconomic units. (5) such provisions as the parties may agree to with respect to the nonproductive purposes for which the lands may be used by the farm owner or operator, the Secretary, the general public, or others; and (6) such other provisions as the Secretary may deem appropriate to accomplish the purpose of this title. (c) The purchase price of any lands purchased pursuant to this section shall not exceed the actual cash value of such lands for agricultural purposes. The rental for any lands leased pursuant to this section shall not exceed the fair rental value of such lands for agricultural purposes. Payment may also be made by the Secretary of such part of the cost of the conservation materials and practices applied to the retired lands as he may determine to be fair and equitable. In determining the rental to be paid for leased lands and the share of the conservation costs to be paid by the Government, the Secretary shall give consideration to such of the following factors as he may deem material: (1) the desirability of establishing rentals for retired lands for the purposes of this title at a uniform percentage (between 5 and 7 per centum of their value; (2) the support or market value of the normal production of the retired acres; (3) taxes, interest on land cost, depreciation on machinery formerly used to cultivate the retired lands, and compensation for loss of income from the retired lands; (4) prevailing rental values; (5) the landlord's customary share of the normal production of the retired lands; (6) the rights in the retired lands retained by the owner or operator and the rights granted to the Secretary; and (7) the benefits which will accrue to the owner or operator and to the general public as a result of the conservation measures applied to the retired lands. The (d) Contractual arrangements for the retirement of lands under this section expiring in any year may be renewed by mutual agreement, if such renewals would not result in the soil bank for succeeding years exceeding the acreage to be maintained in the soil bank for such years as provided by section 203. number of acres covered by any such arrangements which are not renewed shall, if needed to maintain the soil bank at the required level, be treated as acreage to be added to the soil bank and apportioned as provided in subsection (b) of section 203. (e) Whenever it shall appear to the Secretary that (because of the high or low normal productivity of lands, being retired to the soil bank or other reason) redetermination of the acreage to be maintained in the soil bank for any year is necessary to accomplish the purposes of this Act, the Secretary shall make such redetermination and may make such adjustment in apportionments under section 203 (b) as may then appear to be feasible and desirable in the light of the provisions of this title and the circumstances existing at the time of such redetermination. (f) Producers shall be required to enter into contractual arrangements with respect to any acreage apportioned to them under this title as a condition of eligibility for price supports and conservation payments. REPORTS ON ADMINISTRATION OF THIS TITLE SEC. 205. As soon as practicable after substantial completion of the period of entering into contractual arrangements under this title each year for the years 1956 through 1959, the Secretary shall report to Congress on the administration of this title: the acreage retired; the methods of apportionment used: the methods of retirement used; the purposes for which the retired lands may be used by the farm owners and operators, the general public, and the Government; the conservation practices applied; the extent to which the retired lands may be utilized to contribute to flood control, drought control, recreation, wildlife man |