These and other provisions of the law which give the Secretary wide discretionary powers, together with certain other variables, have resulted in fluctuating prices which have not, at all times, been compatible with the economics of the industry. Even so, we firmly believe that, on balance, it is a good law and that its future operation as it is proposed to be amended will serve the overall interests of our Nation very well indeed. In the considerations of your committee, we presume that you are primarily concerned with the basic crops and others which have no special programs.. Accordingly, you would have no direct interest in sugar. However, we know that some of you, particularly your distinguished chairman, have an extremely active interest in sugar. We are confident, therefore, that you and your colleagues in the Senate will not overlook the sugar growers in your consideration of the needs of our agricultural enterprises. We are seeking only to be treated equitably and fairly. Our proposals with respect to amendments to the Sugar Act will, we believe, clearly substantiate this statement. STATEMENT FILED BY J. J. MILLER, MANAGER, AGRICULTURAL PRODUCERS LABOR COMMITTEE, LOS ANGELES, CALIF. The Agricultural Producers Labor Committee is a nonprofit agricultural cooperative, organized under the laws of California for the purpose of representing citrus growers and cooperative nonprofit citrus packing associations. throughout California and Arizona. We sincerely appreciate the committee's coming to California to learn and discuss the various agricultural problems in this State. It is our understanding that no provisions are contemplated in the agenda to consider problems relating to agricultural labor. We would, however, appreciate the acceptance of this statement from the citrus industry, expressing our gratitude for your cooperative support to the passage of the bill extending the Mexican national importation law. The current harvest season has brought clearly into focus the absolute need for the supplemental labor program. With industrial employment at its highest level in the history of California, creating a shortage of qualified farmworkers, many millions of dollars would have been lost were it not for the availability of Mexican workers, made possible through Public Law 78. We are well aware of the vast amount of testimony received by this committee and the herculean job that was undertaken by both the House and Senate committees to investigate thoroughly the necessity for such a program. We are particularly grateful for the speed and efficiency with which this legislation was handled this yaer and also for your acceptance of the House version allowing for the 32-year extension-also, may be compliment your committee on the stanch stand you maintained in continuing the unilateral amendment of 1954. Your committee has, in our opinion, operated on a nonpartisan basis in the best interests of agriculture consistent with honest administration. We would be remiss if we failed to recognize the selection of your excellent staff for their cordial reception and the interest displayed in our problems and the expeditious manner in which they handled them was a great source of satisfaction to us. In closing, may we emphasize our sincere appreciation to this committee for their interest in the problems of California agriculture and for your visit to our State. STATEMENT FILED BY RUDOLPH MILLER, SECRETARY, IMPERIAL COUNTY GROWERS ASSOCIATION, EL CENTRO, CALIF. The farmers of the Imperial County in California are of the opinion that the cotton-allotment procedures as contained in the Agricultural Act are devised to give each State and county a fair and equitable share of the allotment and furthermore, establish for farmers within a county, allotments which are fair and reasonable in relation to the factors set forth, also make adjustments to correct inequities and prevents hardships. We find, however, in the administrative directives and regulations issued to State and county committees instructions which are creating undue hardships and tend to interrupt long-established crop-rotation practices, divide the allot ment into small uneconomic units, and distributes allotments onto farms where they cannot be used. Not only is the cotton acreage curtailed by allotments by the prorate of the history to more and more parcels, forces the cotton farmer into smaller uneconomic units. A 6- to 8-year crop rotation is a long-established and accepted practice in our county-the reason being that more than a dozen different crops are grown in commercial acreages, to name the major ones: Alfalfa, flax, cotton, sugar beets, lettuce, other vegetables, barley, milo, and many other crops in more limited acreages. A general crop rotation consists of 3 years of alfalfa followed by 2 years of vegetables or sugar beets then cotton or flax or small grains and back into alfalfa. In this all-irrigated area with a 12 months' growing season, farmers are diversified and always have chosen the land to fit into their rotation program. This is in contrast to other farming areas, where farmers stay more closely with a farm stead. As a result one-fifth to one-quarter of the farmland changes tenants each year. Each time owners or tenants change leases, the cotton allotment is prorated on a percentage basis in accordance with the administrative regulations. This division is bringing the cotton industry rapidly to a point where operation becomes uneconomical, creates hardships, and puts an extremely heavy workload on the county ASC office. Total cropland in Imperial County, Calif., 475,000 acres; total ACP farm in county, 4.800 farms; 33.8 percent of all ACP farms have between 1 and 100 acres in cropland; 40.2 percent of all ACP farms have between 101 and 500 acres of cropland; and 26.0 percent of all ACP farms have 500 or more acres cropland. Percentage of cotton farms regardless of size of farm with less than 50 acres cotton planted or allotment. Prorating of cotton history presents this picture: 1951: 31,000 acres of cotton on 277 farms 1955: 47,000 acres of cotton on 750 farms For the second half of 1955 the county ASC office has to date 816 applications for reconstitution and corrections, on file. To correct the situation, we recommend that the State and county committees be given two alternatives. 1. Use present instructions. 2. To issue cotton allotments, by grower's request, and distribute unrequested allotments by a percentage formula. Also that the provision of a field rented tract can be applied to ACP farms as well as to worksheet farms. Furthermore, that in writing administrative regulations, more attention be given to all irrigated areas where as a rule crop rotation and diversification differ from rain-belt conditions. We respectfully call your attention to these problems. STATEMENT FILED BY ROBERT NULL, MASTER, ESCALON GRANGE, AND CHAIRMAN, DAIRY COMMITTEE, SAN JOAQUIN COUNTY POMONA GRANGE, ESCALON, CALIF. The condition of the dairymen in California is bringing on an economical condition that is effecting not only the dairymen, but also business in general, especially small-business men in rural areas. In 1954 the cash receipts from marketing of milk and cream declined about $25 million. When you take away 41 percent of this amount, which was the actual drop in the San Joaquin Valley, a lot of people in rural areas are going to feel the effects. If you look at it from the standpoint of the United States you had a drop of about $241 million. Practically all these dollars are purchasing dollars. Dollars that would be spent for improvements, farm machinery, and so forth. In the latest figures by the United States Department of Agriculture prices received by farmers for food products in the third quarter of this year were 7 percent less than in the same period of 1954 and the farmers share of the food dollar is estimated tentatively at 41 cents, 2 cents less than in 1954. With the CCC holding in stocks, as of September 28, 1955, the following dairy products: 114 million pounds of butter, 274 million pounds of cheese, and 33 million pounds of powdered milk; and with dairy income dropping it shows that the present system of flexible supports, as administrated by Secretary Benson is not working. For example, in our own herd as the prices decline we have to keep increasing our herd to cover our fixed costs that continue to rise, while the income drops. This is a general condition in the dairying areas. This is also the condition nationally as we watch the figures for milk production for the year. This increase in milk production for the year 1954 in California was brought on by two ways. First we had an increase of 2.2 percent in the number of cows; and, second, we had a 3.8 percent increase in the average production of milk per cow. As was stated above the present system of flexible supports is not working because: 1. The present system of taking surpluses off the market by purchase has cost the taxpayers of this country billions of dollars and has not given agriculture a fair income. 2. Consumers probably are the heaviest contributors to these taxes and their money is being used to buy farm commodities off the market, store them, and make it necessary for them to buy back at a higher price in the market place. I think we have subsidized the large manufacturers of dariy products long enough and under the present setup that is just what we are doing. They continue to manufacture more products than they can sell on the open market because they know they can sell the balance to the Government at a profit. This stock of surplus is used as a lever to hold our prices down. We believe it would be very valuable to the economy of this country, both so far as producers and consumers are concerned-as an experiment, if two universally used farm commodities such as dairy and poultry were allowed to flow into the market unrestricted and reach whatever level in the market place which the production of these commodities might bring about, and if the market level goes lower than parity, then pay the producers the difference between the parity level and the market price. We believe such a program would cost less than the one now in use and further it would make available to the consumers of this country, without interference by the Government, the production of these two universally used commodities. We are certain it could result in not having millions of pounds of butter in storage, much of which deteriorated to the point where it cannot be used. It is time we did something as the future continues to look darker for agriculture under the present setup, especially dairying. The figures used in this brief were taken from California Dairy Industry Statistics for 1954 issued by the California Crop and Livestock Reporting Service, special publication No. 256. STATEMENT FILED BY CHARLES C. GOODALE, Stockton, Calif. WALTON SOIL PLAN I am a family-sized conservation-minded farmer, owning 250 acres of grassland, marketing livestock in Petaluma, Sonoma County, 17th agricultural county of the United States. What is the Izaak Walton League? It is a conservation organization supported by its members dues, dedicated to the defense of soil, forests, water and wildlife. The Waltonians in the minds of many people are connected with fishing, but actually their interests are much broader for they realize that forests, water, and wildlife are utterly dependent upon the condition of the soil. This Walton soil plan, in my opinion, is a two-pronged program; first, as a soil-conservation program; and, second, as a price-support farm program. I believe that it is a generally accepted fact that our present agricultural difficulties are mainly due to the fact that we are producing more than is needed. As you well realize our storage capacity is full and we are still producing surpluses. A peculiarity of farming is the fact that as prices decrease, the farmer is forced to produce more to pay his expenses so that the pressure is in low prices for increased production as that is the only way a farmer can survive. The Walton plan goes to the basis of all agriculture, which is soil. It proposes that the Government rent from the farmer some 50 to 70 million acres of class 3 to 6 land which is about 10 percent of our productive land. Under USDA land classification, class 3 to 6 land is the poor quality land which is not suited for cultivation. This land that is rented from the farmer is to be put into restoration crops such as legumes and timber where suitable. These leases are for 5, 10, and 25 years; 5 years in normal rainfall area; 10 years where droughts occur; and 25 years where timber is a desirable crop. One might ask why the Govenment should rent this land from the farmer. It is my belief that the Government through its various agencies has caused this surplus land to be brought into production, such as irrigation districts, reclamation projects, and so forth. Of course, everyone is going to be interested in the cost of such a program. It has been estimated that this will cost around $450 million. Now to offset this cost, it is possible that reductions can be made in various other programs. Since this is a conservation program for the land most badly in need of stabilization and since the stabilization would be the most complete possible, it would be entirely appropriate to reduce the agricultural conservation program, which I believe is running around $250 million annually. Also, it would be possible to cut some of the losses of the Commodity Credit Corporation which are running in the neighborhood of $130 million annually. It is estimated in the Newsweek magazine of September 1954 that the loss of the 1954 crop would be $450 million and that by the time the 1954 harvest was completed, the Corporation would have almost $10 billion invented in surplus commodities. Assuming that the figure is $8 billion, it is probable that the combined interest, storage, and deterioration losses would reach some $500 million to $600 million a year, just to hold the surplus. As mentioned before, the Izaak Walton plan can be considered as a pricesupport farm program. It is not suggested that our present price-support program be done, away with immediately. It is suggested that in the first year this Walton program was placed in effect, support prices would be reduced to not over 75 percent of parity; in the second year to not over 70 percent; and in the third year to 65 percent. After this, price supports should not be needed since this program is in itself a price-support program of an indirect nature. To assure the Government acquiring our poorer lands, it is suggested that the following percent table be used in arriving at a basis of rent, based upon an appraisal made of land values arrived at by the USDA appraiser and a local professional. It is recommended that a figure of 6 percent be used. Some may not understand USDA land classification system, so it might be well to state that class 1 land is our best land without any need of any conservation practices except possibly improving fertility. Class 2 land is land with very small problems. Class 3 land is land that can be cultivated but is hazardous. Class 4 land is land that can be cultivated only occasionally, and so on. The administrative committee, accompanied by an experienced land appraiser evaluates the field. The land has been producing corn, wheat, soybeans, and occasionally clover. The committee estimates what a fair cash rental would be assuming that corn was selling for $1.82, beans $2.82 and wheat $2.50 per bushel. They might arrive at a figure in the range of $12 to $16 per acre. For convenience, let us assume they set the figure at $14 per acre. Meanwhile the USDA fieldman classifies the land as class 4 and therefore eligible to 90 percent of parity rental. The rental offered the farmer is set at $12.60 per acre per year. This happens to be very close to the average cash rental of all Illinois farmland the last 3 years. A second example may be taken from the growing Dust Bowl of southeast Colorado. Here a bona fide farmer and not a suitcase farmer was involved. He operated two sections of wheatland. The dry cycle had hit him hard. He applied for a lease. The land was classified as 800 acres of class 3 and 480 acres of class 5, due to the high sand content. The average wheat production was around 12 bushels per acre when it rained; and the fair cash rental on the class 3 land set at $5 per acre and on the class 5 land at $3 per acre. The rental was therefore set at 80 percent of $5 or $4 per acre for the class 3 land and 100 percent or $3 per acre for the class 5 land. The USDA fieldman prescribed a seeding of the best holding cover known at the time. The farmer decided that a sure return of $4,640 per year was better than gambling on the weather. He moved off the farm as soon as the seeding was permanently established. There was less wheat to glut the market for the next 10 years; and there was less dust in the air in the Midwest. Of course, when wheat rose to $2.20 on the open market and the rain cycle returned, the farmer wanted to resume wheat growing. His 10 year lease was not terminated, as the wheat was not needed and there was no justification for renewing the hazard of blowing soil. There is nothing compulsory about this Walton soil program as each individual farmer makes the decision as to whether he desires to rent land to the Government or not and the price paid would greatly influence his decision. If he desires to rent, the application for leases would be accompanied by a fee of $10 to defray part of the cost of the appraisal and so forth. It is my belief that this is a workable program. It is the first farm program that I have ever been able to support. As to the possible results, I believe that when this is wholly in operation, the old law of supply and demand will be able to operate freely and our poor lands will be given a rest and put in a condition whereby they will be improving rather than deteriorating. I feel that this is a good plan for our future and that in time of drought, we will be able to draw on these lands in the midst of where the drought is; in time of war, they will be immediately available for production and they will still be in experienced farmers' hands; lands ready for immediate production. It will do away with acreage controls, no compliances or cross compliances, and it will give the farmer parity in the market place. I hope we will never hear discussions of a farmer getting various percents of parity again. I would like to set up a goal where the farmer is justified in believing that an acre of foodstuff will be worth more to the public than an acre of homesites. STATEMENT FILED BY DEL SECARA, CHAIRMAN, ECONOMIC STUDY COMMITTEE, CALIFORNIA CREAMERY OPERATORS ASSOCIATION, CHOWCHILLA, CALIF. CALIFORNIA CREAMERY OPERATORS ASSOCIATION ORGANIZED IN 1900 TO PROMOTE THE DAIRY INTERESTS OF CALIFORNIA As introduction you will note from the heading on this report our organization has been functioning continuously for the past 55 years. It is the oldest dairy association west of the Mississippi River. It is comprised of people engaged in all phases of the dairy industry. The matter before your committee is national in scope. California is deficient in those dairy products involved in Government support. We have for many years been an importing State for some of our butter and cheese. Nevertheless, we realize our economy is interrelated with that of other States. We have maintained continual routine relations with dairy groups in other States as well as with Government agencies in the USDA. Our philosophy has been that the dairy industry is one industry interrelated economically both intra- and interstate. We approach the matter before you in this light. In late 1953 we presented a report to a United States Legislative Interim Committee visiting California. Our recommendations then were for flexible price supports and to work toward eventual elimination of their need. These remain our objectives. A review of the surplus situation since April 1, 1954, tends to substantiate our position relative to flexible supports. Prior to that date on a 90 percent of parity support program surpluses mounted to where the Government was purchasing supported dairy products equivalent to 11.1 billion pounds of milk. Following this date support prices were dropped to 75 percent of parity. During the following 12 months Government purchase of supported products was the equivalent of 5.8 billion pounds of milk or about half of the previous amount. This plus vigorous advertising and sales promotion programs by the industry increased consumption of both butter and cheese. Increases in civilian consumption have since reflected increased prices to producers. Prices paid producers the last week in September this year were all milk 88 percent of parity, manufacturing milk 81 percent, and milkfat in cream 78 percent. Following are comparative purchases by the Government for the first 4 months of 1955 as |