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Hon. HUBERT H. HUMPHREY,

SOMERVILLE, TENN., July 30, 1971.

Chairman, Subcommittee on Rural Development, Senate Committee on Agriculture and Forestry, Old Senate Office Building, Washington, D.C. DEAR MR. CHAIRMAN: On June 16 I appeared before your Subcommittee to testify in behalf of the National Association of Conservation Districts on the subject of rural development. In the exchange that followed my opening statement you invited us to provide for the hearing record some of our observations and evaluations of Resource Conservation and Development projects.

These projects derive from Section 102 of the Food and Agriculture Act of 1962 in which the Congress authorized the Secretary of Agriculture to cooperate with federal, state, territorial, and other public agencies in developing plans for a program of land conservation and land utilization. In implementing this authority, the Secretary of Agriculture determined it would be carried out on a project basis in a manner that would enable local people to initiate and follow through with a broad-gauged approach to resource conservtion and development. Since initiation of the program, conservation districts have been privileged to cooperate with state and local governments in sponsoring the 78 projects which are now underway.

In addition, conservation districts have joined with other units of state and local government in sponsoring the 68 applications for Resource Conservation and Development (RC & D) Program assistance which have been filed with the U.S. Department of Agriculture. These have not yet been authorized for program assistance.

In an appraisal of what has been happening in the RC & D projects now underway, we can identify a number of assets.

1. The emphasis on development of sound land use policies and programs, on the application of soil and water conservation practices, and on the installation of public facilities has helped provide an improved environmental base.

2. There has been widespread citizen involvement in project affairs, coupled with a strengthening of local leadership and more active participation in the important decision-making processes. Local people analyze their problems and opportunities, evaluate alternative solutions and courses of action, determine their objectives, and organize their resources for community improvement.

3. Resource development has fostered economic development. The projects have stimulated the investment of private funds in new resource-based industries and services. Commercial and industrial concerns have expanded or located enterprises in the project areas. New job opportunities have been created, thereby reducing to some extent the migration of rural people to towns and the strip cities.

4. The consideration of resource and economic development opportunities has been broadened. The projects are sponsored, initiated and operated on a multicounty basis.

5. People in the project areas have been able to enlist the coordinated support of a considerable range of federal, state, and local agencies in planning and carrying forward the RC & D programs.

Along with the accomplishments in the RC & D program, there have been some frustrations. The level of new project starts has not kept pace with the interest of local people in project activities, as evidenced by the rate at which they have submitted applications for assistance.

In the early years of the program, RC & D was apparently regarded as a "pilot program." Only a limited number of starts were authorized each year by the Congress. As you will note from the following table, a total of 73 projects (exclusive of the five Rural Renewal projects transferred to the RC & D program) were authorized over the period of eight years ending with June 30 this year. During that same period unserviced applications increased and there now is a backlog of 68 such applications.

We strongly believe that local people operating in a project type setting have demonstrated their genuine capability to make significant contributions to project and national goals for rural development. We also believe the time has arrived to move the program ahead faster. The recent authorization of 20 new project start during fiscal year 1972 is a welcome step in the right direction.

In our view, RC & D should be recognized as a regularly-funded program activity administered by the U.S. Department of Agriculture, with annual program starts authorized more nearly in line with the readiness of local people and their agencies to move ahead.

Authorized for program assistance:

Fiscal year

1963

1964

1965

1966

1967

1968

1969

1970

1971

Total to July 15, 1971---

1972

Unserviced applications at end of fiscal year (cumulative):

Fiscal year

1963

1964

1965

1966

1967

1968

1969

1970

1971

[blocks in formation]

Total to July 15, 1971---

1972

1 Includes 5 former rural renewal projects with the resource conservation and development (R.C. & D.) program, July 1, 1969.

In the interest of rural development, the NACD favors legislation that would provide technical and financial assistance for (1) the development of rural municipal and industrial water facilities and (2) the abatement or control of agricultural related pollutants. Often the storage of water for municipal and industrial purposes can be incorporated in reservoirs being created in project areas for flood prevention, recreation, and other purposes. As all of us know, water supply is a critical factor in encouraging business and industrial enterprises, with their job creation potential, to locate in a community.

Technical and financial assistance to local and state agencies for the control of agricultural related pollutants would also have a beneficial impact. In the case of R.C. & D. projects, such assistance probably should be limited to those situations where the control measures would solve community-wide pollution problems arising from agriculture.

During the exchange of views on June 16 you made reference to the contributions that watershed projects make to rural development, and to the issue that some ecologists have raised regarding channel improvement work in watershed projects. Attached herewith are two items related thereto.

1. Examples of Benefits Resulting From Installed Works of Improvement in Watershed Projects.

2. Testimony of George R. Bagley, Vice President, National Association of Conservation Districts before the Subcommittee on Flood Control-Rivers and Harbors of the Senate Committee on Public Works.

Sincerely,

(The attachments are as follows:)

JOHN S. WILDER.

EXAMPLES OF BENEFITS RESULTING FROM INSTALLED WORKS OF IMPROVEMENT IN WATERSHED PROJECTS

High Pine Creek

ALABAMA

Nine floodwater-retarding structures and 23 miles of channel improvement have been completed. One of the structures is multiple purpose, adding municipal water storage for the city of Roanoke.

The completed works of improvement on High Pine Creek watershed give protection to 3,495 acres of bottomland. The landowners are rapidly developing this land into high-income crops which add greatly to the economic growth of the area.

"It is the greatest thing that has ever happened to my farm," said W. W. Richardson. “I am able to grow crops and grass on 110 acres of bottomland that used to be a mosquito swamp. I have been able to clear unproductive brush, dig ditches, and make general changes on my farm," he continued.

"I am pleased with the results that I have gotten since the work has been completed on the High Pine Creek," W. P. Poor said. He further stated, "My seventy-acre bottomland pasture along the creek was not much good to me. It was often necessary to repair the fences four to five times a year when the floods came. I would not get to graze the fescue pasture when I needed it most because the floods came so often that the grass was covered with mud all through the winter. Now I have a good twelve-month pasture that looks pretty and green all the year."

"I bought this farm four years ago when I saw the dams were going to control the flooding," George Smith said. "It used to flood several times a year but the water has not been out of the banks since the dams above it were built. The forty acres of bottomland along the creek had gotten in bad shape since the former owner got very little out of the land and did not try to improve. I spent $900 clearing off the stumps and brush and digging a good ditch into the creek. I planted it in fescue and clover this fall and think it is going to make a good pasture. All of the farmers up and down the creek are now working on their bottomland, and the land in this section sells better than it used to sell."

The addition of municipal water to one of the structures by the city of Roanoke continues to be influential on the economic growth and full employment of this urabn area. Mayor J. P. Phillips of Roanoke enthusiastically made the following comments about this watershed and its effect on the development of his town: "Our aim to make Roanoke a better place to live and work when we began with the construction of the watershed dams on High Pine Creek," Mayor J. P. Phillips of Roanoke enthusiastically remarked recently. He continued by saying. "We hope to have our new filter plant completed by January 1, 1971. This will raise our potential to three million gallons of water per day. This will give us a chance to develop our industry more. The new Rolane Manufacturing Company has plans to continue their expansion until they have 800 people working. Hadley Manufacturing Company is running to full capacity. Master Door Company has steadily increased over the years and is running wide open, hiring about everyone they can get. The Ben Franklin Company is building one of the largest stores in Roanoke. We have an unemployment rate of about 3 percent which is about as low as we can get. The bountiful water supply that we have obtained from the multiple purpose lake has solved all our problems for water for the present.

"We quit dumping our raw sewage in High Pine Creek in 1968 when we completed three new lagoons. We do not have to worry about them being flooded since they are constructed in the flood plains protected by the flood-retarding dams on High Pine Creek.

"We are planning for a steady growth of our city and hope that we will be able to offer opportunities for others to move here as well as opportunities for our young people. We think we have a lot of good environment in our section and are constantly receiving requests from men and businesses that would like to locate here."

Pine Barren Creek

Urban and rural landowners were confronted with flooding and poor drainage on the 6,000-acre watershed. This area lies in the Coastal Plains section of south central Alabama. Inadequate channels and outlets were preventing full use of the land in vegetable and other cash crops and were a hindrance to the growth and development of the city of Atmore.

The Chairman of the Escambia County Soil and Water Conservation District reports that more than 51⁄2 miles of individual farm drainage ditches, costing over $13,000, have been installed since the project channel improvements of 30,000 feet were completed. The combination of on-farm and project measures has permitted landowners to more than double the production of cash crops, consisting primarily of potatoes, soybeans, and corn. For example, a yield of approximately 150 bushels of corn per acres was made during 1969 on a 200-acre field that was too wet for even pasture before the project.

Before the project was installed, southeast Atmore lacked an adequate outlet for storm sewers and at least 20 homes were frequently surrounded by water and occasionally flooded. Because the project provided an outlet for the storm sewers, the area no longer floods.

The city is now expanding and growing on land formerly flooded too severely for urban growth. At least 19 homes have been built since excess water is no longer a problem near the channels. Possibly even more significant, a two-story 52-bed hospital and a doctor's office have been constructed in the area that was previously flooded.

Frye Creek-Stockton Wash

ARIZONA

In addition to the more than $825,000 estimated saving from flood damages since the first portion of the project was completed in 1962, other benefits continue to accrue to the communities of Safford and Thatcher.

Sixty-six new homes have been constructed in the once flooded area below the structures. These new homes represent 231 people. A new motel has been constructed employing six people, and plans are being finalized for a 10-acre, multimillion dollar shopping center.

Since floods have been eliminated, the Mountain View Nursing Home has been constructed. This facility serves a great need for the area. The building and equipment are valued at $235,000 and 45 people are employed to operate the home. The home is designed to handle 93 patients and at present is near capacity with SO residents.

The project enabled the Eastern Arizona College located at Thatcher to expand their facilities nearly 5 times by using land that was frequently flooded prior to project installation. This expansion has enabled the college to more than double its student enrollment from 551 to 1,112. Also the number of employees increased from 39 in 1962 to 98 in 1969. The curriculum of the college has been expanded and updated to meet the growing needs of the community. Cost of the expansion program since 1962 has amounted to more than $1,175,000.

In addition to eliminating flood damage, creating new job opportunities, expanding college facilities, and making available new home sites, the project has offered an ideal site for recreation facilities. Local people have constructed two little league ball parks, a tennis court, and a rodeo arena immediately below two of the floodwater-retarding dams. The downstream slope of the dams is used for seating spectators.

Magma

Stretching for 6 miles through the desert about 45 miles southeast of Phoenix, the long Magma dam protects 11,000 acres of valuable farmland and improvements from flood damage. Since the project was installed in 1964, six major floods have occurred with no damage to land, crops, or improvements.

The estimated benefits from prevention of flood damage are $635,000. This is one quarter of a million dollars more than the dam cost to construct. These benefits accrued during a period of only 5 years.

Grady-Gould

ARKANSAS

A prosperous new bank and an efficient sewer system in the town of Gould are unexpected benefits of the Grady-Gould watershed project which was authorized in 1961 to facilitate water management on 50,560 acres of farmland in southeast Arkansas.

The project consists of a 25-mile-long main ditch and 77 miles of laterals. Also installed are 3.444 feet of pipe drops and 63 road crossings.

Prior to installation of these improvements, Gould residents had to get by with ineffective septic tanks which overflowed during wet weather, according to

63-582-71-pt. 2- -6

Mayor A. L. Butcher. "We tried to put in a sewer system but had to give up. When contractors dug shallow test holes, they refused to bid after seeing how fast water and sand poured into them," Mayor Butcher stated.

After the main and laterals were installed, the groundwater level in Gould dropped several feet. Ditch digging no longer was a problem and Gould residents now enjoy a previously unknown convenience. The new sewer system also eliminated a serious health hazard.

"First State Bank would not be here without the new income potential of watershed producers," says President Howard Holthoff.

Because of extremely high production risks, lending institutions had stopped financing farmers on some 50,000 acres of land. The watershed project prevented total abandonment of this land. Without farm income and taxes paid by watershed producers, both towns of Grady and Gould would have stagnated, the banker said.

Mr. Holthoff said that deposits in his bank have doubled in four years. He also reported land values up 300 percent since 1963 and said that it now is easier to borrow money for purchase of land, even at these increased prices.

The banker said that everyone in the area lives better because of the watershed project. Farm income now is sufficient to meet or exceed minimum wage standards. New construction in the watershed includes twenty homes built by producers and as many new housing units for laborers or tenants. There are also two new rural church buildings and, according to Mr. Holthoff, all of this construcction is a direct result of the project.

The banker mentioned a final benefit, "We no longer see Red Cross field units set up to feed and quarter flood victims."

Muddy Fork of Illinois River

Water problems projected a dismal future for two small towns in the scenic Washington County Ozarks. There was too much or too little and either spelled trouble.

Lincoln, population about 1,000, was on the brink of disaster. Industry and homeowners shunned the place while many leading citizens were ready to move away and businesses were closing their doors. The uneasy people of Prairie Grove read their own future in Lincoln's crisis.

The towns bracket the 47,122-acre watershed known as the Muddy Fork of Illinois River. The stream's hair-trigger floods that once boiled out of the Ozark highlands never dampened the doorsteps of Lincoln and Prairie Grove, but downstream floods set in motion programs that breathed new life into the communities.

Now, both towns show all signs of a healthy, growing economy. The ring of hammers signals construction on upward of one million dollars worth of new homes in the past three years. New employment and new payrolls are reflected in a surge of bank deposits-nearly $1.5 million increase in the Bank of Lincoln in three years. New industries are under construction and schools are expanding under a fast-growing tax base.

The Muddy Fork of Illinois River watershed was authorized in 1961 and plans for the multiple-purpose project included four parts:

1. Measures to control erosion and sedimentation, reduce runoff, and increase rural income.

2. Construction of two dams to capture flood-making runoff and release it at a safe controlled rate.

3. Construction of a multiple-purpose dam to provide 2,000,000 gallons of water daily to Lincoln and to further reduce floods.

4. Construction of a fourth dam for flood prevention and fish and wildlife development to be co-sponsored by the Arkansas Game and Fish Commission.

Lincoln's dwindling water supply had to be supplemented with tank trucks as work on the project progressed. Providing an abundance of pure water brought immediate and dramatic results, according to Lincoln banker C. C. Karnes. "This was only about four years ago," Mr. Karnes said, "yet we already have 20 new or expanded businesses. In June of 1963, our bank's assets were $2,891,297. Now they are in excess of $4 million, mostly in new deposits.

"Homebuilding was a dead industry here but since we got our water 70 to 100 new homes have been built. Benefits from the new homes and homeowners spread to building supply houses, furniture and appliance dealers, grocery stores, and a lot of others. Businesses that must have water are not afraid to locate here. For example, we have a new cement mixing plant."

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