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Mr. WATTS. What do you mean by current?

Mr. WALKER. The last 2 years.

Mr. WATTS. That is your definition of "current"?

Mr. WALKER. Yes, sir; that is right. We say it must meet both of these requirements during the past 2 years.

Mr. MCMILLAN. We have Congressman Ford here. Will you make your statement at this time, please.

STATEMENT OF HON. GERALD R. FORD, JR., A REPRESENTATIVE IN CONGRESS FROM THE FIFTH DISTRICT IN THE STATE OF MICHIGAN

Mr. FORD. Mr. Chairman and members of the committee, this, also, involves a commercial corn area problem in combination with the acreage-reserve problem. I would like to read excerpts from the letter which I addressed to the chairman of the committee, the Honorable Harold Cooley in reference to H. R. 10316 which I introduced January 28, 1958.

(H. R. 10316 is as follows:)

[H. R. 10316, 85th Cong., 2d sess.]

A BILL To exclude Ottawa County, Michigan, from the commercial corn-producing area during 1958

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purposes of title III of the Agricultural Adjustment Act of 1938, Ottawa County, Michigan, shall not be included in the commercial corn-producing area, as such term is defined in section 301 (b) (4) of such Act, during 1958.

Mr. FORD. The letter in part is as follows, and I think that explains the problem as simply as possible. I quote as follows:

I am writing you not only to respectfully request expeditious handling of the legislation but also to point out that apparently we cannot obtain administrative relief to correct an inequity inflicted upon certain farmers in Ottawa County when that county was designated a commercial corn area.

These farmers in good faith signed a contract to participate in the acreagereserve program of the soil bank to restrict their plantings of wheat for the 1958 crop. They were advised in good faith by the local ASC committee that they would be permitted to plant and harvest any other crop than wheat without restriction.

Then on October 8, 1957, the Department of Agriculture designated Ottawa County as a "new county."

It is essential to note that this date, October 8, is after the final date for signing contracts for cooperation in the acreage-reserve program. It is more important to note, however, that this date, October 8, is too late for the planting of winter wheat in Ottawa County. No spring wheat is grown there.

As a result of this late action on the part of the Department in getting out the announcement designating Ottowa County as a commercial corn area, many of the cooperating farmers are in a serious difficulty. They cannot receive their payments for cooperating with the Government insofar as wheat is concerned without reducing their corn acreage, a provision which was added to the requirements after the contract was signed and after the farmers could take any effective action to alter their wheat acreage. In simple language, the Government changed the rule after the game had started.

I have here, also, a copy of a decision or a determination by the General Counsel of the Department which indicates that the Soil Bank Act prohibits any administrative relief in this situation.

(The two letters referred to are as follows:)

CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES, Washington, D. C., January 29, 1958.

Re H. R. 10316

Hon. HAROLD D. COOLEY,

Chairman, Committee on Agriculture,

House of Representatives, Washington, D. C.

DEAR MR. CHAIRMAN: Yesterday afternoon I introduced a bill to exclude Ottawa County, Mich., from the commercial corn-producing area during 1958. The bill, H. R. 10316, was referred to your committee.

I am writing you not only to respectfully request expeditious handling of the legislation but also to point out that apparently we cannot obtain administrative relief to correct an inequity inflicted upon certain farmers in Ottawa County when that county was designated a commercial corn area.

These farmers in good faith signed a contract to participate in the acreagereserve program of the soil bank to restrict their plantings of wheat for the 1958 crop. They were advised in good faith by the local ASC committee that they would be permitted to plant and harvest any other crop than wheat without restriction.

Then on October 8, 1957, the Department of Agriculture designated Ottawa County as a "new corn county." It is essential to note that this date, October 8, is after the final date for signing contracts for cooperation in the acreage-reserve program. It is more important to note that this date, October 8, is too late for the planting of winter wheat in Ottawa County. (No spring wheat is grown there.)

As a result of this late action on the part of the Department in getting out the announcement designating Ottawa County as a commercial corn area, many of the cooperating farmers are in serious difficulty. They cannot receive their payments for cooperating with the Government insofar as wheat is concerned without reducing their corn acreage, a provision which was added to the requirements after the contract was signed and after the farmers could take any effective action to alter their wheat acreage. In simple language the Government changed the rules after the game had started.

The enclosed copy of an opinion by the General Counsel of the Department indicates that the Soil Bank Act prohibits any administrative relief. I certainly cannot believe that it was the intention of the Congress to penalize farmers who in good faith signed an acreage reserve agreement by changing the requirements for participation after the contract was made and after it was impossible for the farmer to correct the situation on his farm.

Assistant Secretary Marvin L. McLain has told me that because of the General Counsel's ruling, the Department is not in a position to remedy the situation. I sincerely hope that you will be able to help us. We are asking for relief only for the 1958 crop year. We have no objections to the designation of Ottawa County as a commercial corn area. But I do not think those farmers who signed a wheat acreage reserve contract in good faith should be forced to comply with new and additional requirements announced after the final date for signing the contracts had passed and after it was no longer possible for the cooperating farmer to adjust his wheat acreage. Warmest personal regards.

Sincerely,

GERALD R. FORD, Jr.,
Member of Congress.

Hon. GERALD R. FORD, JR.,

UNITED STATES DEPARTMENT OF AGRICULTURE,
OFFICE OF THE GENERAL COUNSEL,
Washington, D. C., January 21, 1958.

House of Representatives.

DEAR CONGRESSMAN FORD: This refers to your telephone conversation with Assistant Secretary McLain about farmers in your district whose farms were found to be in the commercial corn-producing area after the farmers had signed agreements placing certain wheat land in the acreage-reserve program. You asked whether the farmers would be eligible to receive their acreage-reserve payments if they should not comply with their acreage allotments on corn. I regret that the question must be answered in the negative. Section 114 of the Soil Bank Act (Public Law 540, 64th Cong.) specifically provides that in order to be eligible for soil-bank payments the farmer must comply with his cornacreage allotment. The fact that the corn allotments were made effective after the soil-bank contracts were signed would not give the Secretary authority to waive the provisions of this section.

Sincerely yours,

R. L. HARRINGTON, General Counsel.

[From the U. S. Department of Agriculture, Washington, October 10, 1957]

3.8 MILLION ACRES SIGNED FOR WINTER WHEAT ACREAGE RESERVE AT
PROGRAM CLOSE

Slightly over 3.8 million acres of winter wheat allotment land were put in the 1958 acreage reserve of the soil bank through the close of the winter wheat signup period October 4, the United States Department of Agriculture announced today. Programs for other basic crops coming under the 1958 acreage reserve will be announced before planting time next spring.

According to preliminary reports from State Agricultural Stabilization and Conservation (ASC) committees in the 36 States of the commercial wheat area, 140,662 acreage reserve agreements, covering 3,806,000 acres, had been signed by farmers through the October 4 deadline. Participating farmers will be eligible for payments totaling $76,808,773 if they comply with their agreements.

At the end of the 1957 winter wheat acreage reserve signup last year, 10,692,000 acres had been offered through the signing of 193,474 agreements. The maximum payments on this acreage totaled $198,877,000, although there were some later cancellations.

The number of 1958 winter wheat acreage-reserve agreements reported is nearly 73 percent of the number signed last year, but the acreage covered is only 35.6 percent of a year ago. The maximum payments committed for the 1958 program are 38.6 percent of the comparable 1957 figure.

For the 1958 signup reported, the average acreage per contract is 27.1 acres compared with 76 acres a year ago. The average amount of payment per contract is $546.05 this year compared with $1,413.86 last year.

This is the last weekly report on the 1958 winter wheat acreage reserve signup. A breakdown by States showing the number of 1958 winter wheat agreements signed, the acreage covered, the amount of payments committed and the acreage offered through the comparable period, a year ago for the 1957 program follows:

1958 soil-bank wheat acreage reserve agreements reported through deadline, Oct. 4, 19571

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1 1957 signup ended Oct. 5, 1956, except for a few controversial cases, disapprovals, and similar adjustments reported through Nov. 9, 1956. The 1958 signup as of Oct. 4, 1957, will be altered similarly to some degree in subsequent weeks. 2 These maximum payments are somewhat incomplete because they do not include all the 10-percent premium for 1958 reserve acres which were also in the 1957 program.

Mr. FORD. I might give you a concrete example, Mr. Chairman and members of the committee, of just how this situation is applied to several specific farmers. In total there are only about 50 farmers involved, but they are in a very difficult situation as a result of this mixup.

This is a portion of a letter that I addressed to Mr. Charles Figy, assistant to the Secretary, on December 11, 1957, and I quote as follows:

In my letter of November 4, I presented the case of one specific farmer. This man is already committed to the soil bank and approximately 22 acres of his wheat allotment is lying idle. He could not have planted additional wheat this fall as the announcement designating Ottowa County as a "new corn county" came on October 9

that is when the word was received out there, it was issued October 8th

too late for planting wheat here.

The only relief to the attached comments to offer is cancellation of his wheat agreement. Because he cannot plant additional wheat for 1958 this means a loss of income from the land placed in acreage

reserve as we pointed out on November 4. This is not a satisfactory oats-producing area. So the only alternative is corn. Assuming can celed wheat agreement, he can put in about 70 acres of corn. This farmer does not need that much corn. To put in 70 acres in corn will destroy his well-established program of crop rotation, and to raise additional corn defeats the very purpose of the ASC corn program, In another instance the farmer put his entire 23.4-acre wheat allotment in the soil bank. For this he was to receive a payment of approximately $737. As he keeps a number of feeder and dairy cattle, he plans on using some of this payment to purchase straw. He normally raises 50 acres of corn annually, all of which he needs for his operation. This 50 acres is sufficient. However, he does not need

more corn acres.

While it has not been finally determined, we understand that the corn allotment for Ottowa County will be from 40 to 50 percent. If this farmer is cut back that amount he will not have sufficient corn. Had he known of the impending designation of a "new corn county" he would have put in wheat to get straw and so forth, and then could have put in his regular 50 acres of corn as required by his farm operation.

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Assuming that he cancels his wheat agreement he will be out the money with which he intended to buy straw and, of course, any remainder of the $737, and can only raise more corn than he needs for his purposes which again defeats the objective of the corn program. It seems to me in this situation that what we need is simply in this county and any other counties that are similarly affected, to get them out.

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Mr. MCMILLAN. Your county seems to be affected just exactly like mine. The ASC chairman talks about just as you state about the freeze, not being able to put it into the soil bank.

I didn't know anything about this until November. I received the information by the grapevine at that time. If they had notified those who represent those districts we would have been saved a lot of trouble.

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Mr. WATTS. How many counties came in last fall as commercial counties?

Mr. POLLOCK. Thirty-eight.

Mr. WATTS. Thirty-eight counties.

Mr. POLLOCK. Yes.

Mr. FORD. Not necessarily all have the same problem, because in some counties they might be able to plant another crop. But, at least, in my county and in the chairman's county the date had gone by where they could take advantage of it.

Mr. WATTS. You would have the same problem with reference to putting land into the soil bank, the acreage reserve, or conservation reserve?

Mr. POLLOCK. Yes.

Mr. WATTS. Would the Department seriously object to legislation that provided where a county was added as a commercial corn area that cross compliance so far as soil bank is concerned, would not apply for 1 year-would that solve the whole situation? Next year the man could get out of the soil bank.

Mr. FORD. All we want is 1 year to get readjusted.

22857-58-4

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