Mr. WATTS. This is not something that is dreamed up for this particular piece of legislation-something that the Department of Agriculture figures every year and has for a number of years; is that it? Mr. HEIMBURGER. They compute it monthly and then work it out to an annual average. And it has been done under the same general formula since 1949. Mr. WATTS. There will be no change in the way that they work it out? Mr. HEIMBURGER. No, sir; none whatever. Mr. ABBITT. Does anyone else desire to be heard? STATEMENT OF JACK SPAIN, ADMINISTRATIVE ASSISTANT TO SENATOR ERVIN Mr. SPAIN. Mr. Chairman and members of the committee, Senator Ervin asked me to come over here, because it was not possible for him to do so, because of business in the Senate. He wanted to let all of you folks know that he was ready to do so, if it had been possible. He is quite interested in this. Mr. ABBITT. We know that the Senator is very much interested in this. Does anybody else want to be heard? STATEMENT OF REV. EDWIN T. WILLIAMS Reverend WILLIAMS. Mr. Chairman and members of the committee, I have talked to a lot of farmers in the State of Virginia. I feel that this is something that the farmers themselves will be pleased with. And I feel that it will be of help to them, because I have gained that impression in talking with a lot of the farmers. Mr. ABBITT. We are delighted to have you here and are always glad to hear from you. We should like to hear from you, Senator Jordan. STATEMENT OF HON. B. EVERETT JORDAN, A U.S. SENATOR FROM THE STATE OF NORTH CAROLINA Senator JORDAN. Mr. Chairman and members of the committee, and Members of Congress, I am glad to see this group of citizens here interested in this subject, from my State, as well as the other people from the other States. I will be most happy to cooperate with you in introducing this bill, with Senator Cooper as a cosponsor of this bill, which will be a nonpartisan bill, in the Senate. I think that we can get it passed all right. I will be glad to work with you in any way I can, and I am sure that Senator Cooper will. Mr. ABBITT. Thank you very much. Senator Cooper, do you have any statement to make? STATEMENT OF HON. JOHN SHERMAN COOPER, A U.S. SENATOR FROM THE STATE OF KENTUCKY Senator COOPER. I thank you, Mr. Chairman, for inviting us to this meeting. I do not think that I can add much to what my friend, Senator Jordan, has said. I might say with my colleague we will be glad to cooperate in anyway possible. Mr. ABBITT. Thank you. Do you want to be heard? STATEMENT OF DAVID BATTAGLIA Mr. BATTAGLIA. I represent Senator Kefauver. He regrets that he could not make the meeting today, but he is very much interested in this hearing. Mr. ABBITT. Thank you. Is there anyone else who should like to be heard? STATEMENT OF MARSHALL CAIN Mr. CAIN. Mr. Chairman, Senator Thurmond is very much interested in this legislation and asked to be represented here. I, also, brought along a copy of the letter that Congressman McMillan has introduced into the record, so it will not be necessary for me to do so. Mr. ABBITT. Thank you very much. Is there anyone else? STATEMENT OF THOMAS CHADWICK Mr. CHADWICK. Mr. Chairman and members of the committee, Senator Johnston asked that I express his regret that he could not be here, but he is vitally interested in this legislation. Mr. ABBITT. Thank you very much. We have been very glad to have heard from the members of this industry committee. We appreciate having this information. I assure you that we will do our very best to give it expeditious attention. If there is nothing further, the hearing is adjourned. (Whereupon, at 3 p.m., the subcommittee recessed, to reconvene subject to the call of the Chair.) TOBACCO PRICE SUPPORT TUESDAY, JANUARY 26, 1960 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON TOBACCO Washington, D.C. The subcommittee met, pursuant to notice, at 10:15 a.m. in room 1910, New House Office Building, Hon. Watkins M. Abbitt (chairman of the subcommittee) presiding. Present: Representative Abbitt, McMillan, Bass, Jennings, Matthews, Stubblefield, Dague, Short, and Pirnie. Also present: Senator Jordan, Representatives Fountain, Lennon, Watts, and McIntire; Mrs. Christine S. Gallagher, clerk; Hyde H. Murray, assistant clerk; and John Heimburger, counsel. Mr. ABBITT. The meeting will come to order. This hearing this morning is regarding several bills that have been introduced to stabilize support levels for tobacco against disruptive fluctuations and to provide for adjustment in such levels in relation to farm costs. We had a preliminary hearing some few days ago in which the industry spokesmen outlined their views. Since that time, members of the subcommittee and others who are interested, both in the Senate and in the House, have tried to write a bill that they hope will be of help and satisfactory to everyone. I realize that most of us here have heard the views of the industry, but I think that it would be well first to hear from the representatives of the industry as to whether, in their opinion, the bills carry out what they have in mind. (H.R. 9664 follows:) (Similar bills are: H.R. 9665, H.R. 9666, H.R. 9667, H.R. 9668, H.R. 9669, H.R. 9670, and H.R. 9671.) [H.R. 9664, 86th Cong., 2d sess.] A BILL To stabilize support levels for tobacco against disruptive fluctuations and to provide for adjustment in such levels in relation to farm cost Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title I of the Agricultural Act of 1949, as amended, is hereby further amended by adding at the end thereof a new section 106, as follows: "SEC. 106. Notwithstanding any of the provisions of section 101 of this Act: (a) For the 1960 crop of any kind of tobacco for which marketing quotas are in effect, or for which marketing quotas are not disapproved by producers, the support level in cents per pound shall be the level at which the 1959 crop of such kind of tobacco was supported, or if marketing quotas were disapproved for the 1959 crop of such kind of tobacco, the level at which the 1959 crop of such kind of tobacco would have been supported if marketing quotas had been in effect. (b) For the 1961 crop and each subsequent crop of any kind of tobacco for which marketing quotas are in effect, or for which marketing quotas are not disapproved by producers, the support level in cents per pound shall be determined by adjusting the support level for the 1959 crop of such kind of tobacco, or if marketing quotas were disapproved for the 1959 crop of such kind of tobacco, the level at which the 1959 crop of such kind of tobacco would have been supported if marketing quotas had been in effect, by multiplying such support level for the 1959 crop by the ratio of (i) the average of the index of prices paid by farmers, including wage rates, interest, and taxes, as defined in section 301(a) (1) (C) of the Agricultural Adjustment Act of 1938, as amended, for the three calendar years immediately preceding the calendar year in which the marketing year begins for the crop for which the support level is being determined to (ii) the average index of such prices paid by farmers, including wage rates, interest, and taxes for the calendar year 1959." SEC. 2. Section 101 (e) of the Agricultural Adjustment Act of 1949 (63 Stat. 1051; 7 U.S.C. 1441(e)) and section 2 of the Act of July 28, 1945, as amended (59 Stat. 506; 7 U.S.C. 1312 note) are hereby deleted. Mr. ABBITT. First, I might say that Mr. Lynn, of the American Farm Bureau, called me this morning and said that he could not be present until later. He said that it might be about 11:30. He asked that I have his statement read in the record. I ask unanimous consent that the statement be read in the record at this point. I might add that Mr. Lynn is appearing for the American Farm Bureau Federation and several State farm bureaus, and recommends the bill that has been introduced. (The prepared statement of John C. Lynn, legislative director, American Farm Bureau Federation, follows:) STATEMENT OF THE AMERICAN FARM BUREAU FEDERATION REGARDING H.R. 9664 AND SIMILAR BILLS RELATING TO PRICE SUPPORT FOR TOBACCO (Presented by John C. Lynn, legislative director) The American Farm Bureau Federation, representing 1,602,117 farm families in 49 States and Puerto Rico, has a vital interest in helping develop sound programs for agriculture. During the past several years Farm Bureau members in the tobacco-producing States have wanted to improve the tobacco price support program. They have discussed the problems confronting tobacco growers with Farm Bureau leaders in States where no tobacco is produced, but where there is a keen interest in the principles that are to guide price support policies and programs. As a result of discussion at the county, State, and National level, the following policy was adopted by the elected voting delegates of the member State farm bureaus, at the 41st annual meeting of the American Farm Bureau in Chicago in December. "Recognizing that producers of the price-supported varieties of tobacco have shown a much greater willingness and ability to adjust production to market demand than the producers of most other price-supported commodities, we continue to support the tobacco program. "We recommend that tobacco legislation be enacted (1) to maintain a continuing program in tobacco and (2) to stabilize the price support of tobacco to prevent its spiraling due to a decline in prices of other agricultural commodities. We recommend that the tobacco support level in 1960 be the same as in 1959 and that in subsequent years the support price be adjusted from the 1959 level in direct proportion to changes in prices paid by farmers for commodities purchased, using the previous 3-year moving average as a base." Under this recommendation, price support for the marketing quota types of tobacco would be at the same dollars-and-cents level in 1960 as in 1959. In 1961 and subsequent years the 1959 support level would be adjusted upward or downward to the extent that a 3-year moving average of the index of prices farmers pay interest, taxes, and wage rates, deviates from the index figure for 1959. H.R. 9664 and similar bills carry out the policy as outlined above. We support this legislation and urge its enactment into law. |