1 Limited to 70 percent of duties collected on wool during preceding calendar year. STATUS OF PROGRAM Purpose. The objective of this program is to encourage an annual domestic production of approximately 300,000,000 pounds of shorn wool. Operations. This is accomplished by incentive payments to eligible producers on a percentage basis reflecting the amount required to bring the national average received by all producers up to the announced incentive level. The incentive level shall not exceed 110 percent of parity. Pulled wool is supported, in a comparable relationship to shorn wool, by payments on the sale of lambs that have never been shorn. Mohair is supported at a level not in excess of 15 percent above or below the comparable percentage of parity at which shorn wool is supported. The total of all payments may not at any time exceed an amount equal to 70 percent of the accumulated totals of the gross receipts from specific duties collected on and after January 1, 1953, on wool and wool products under schedule 11 of the Tariff Act of 1930, as amended. Payments are made through the agricul tural stabilization and conservation county committees and are financed by the Commodity Credit Corporation. The Corporation is authorized to be reimbursed for any expenditures made under this program. However, such reimbursement for any fiscal year is limited to an amount equal to 70 percent of the gross receipts from specific duties collected on wool and wool products during the period January 1 to December 31 preceding the beginning of such fiscal year. Sales promotion.-In August 1955, in a referendum called by the Secretary of Agriculture, as provided in section 708 of the National Wool Act, 72 percent of producers voting approved an agreement previously entered into by the Secretary with the American Sheep Producers Council, Inc., for the conduct of an extensive advertising, sales promotion and market-development program for wool, mohair, sheep, goats, or the products thereof. The expense of this program is financed from deductions from the wool payments due producers in each marketing year. The program is designed to improve and expand the market for the industry's products and ultimately to reduce the extent of Government price assistance required. 1956 program Payments under the 1956 program, which were made early in the fiscal year 1958, were announced at 40 percent of the dollar returns each producer received from the sale of shorn wool during the 1956 marketing year, which would bring the national average return per pound to all producers up to the incentive level of 62 cents per pound. The payment rate on lambs (pulled wool compensating payments) is 71 cents per hundredweight of live unshorn lambs sold. As the market price for mohair remained at a sufficiently high level during the 1956 marketing year, no payments were required. 1957 program year. Substantially the same program is being continued for the 1957 marketing The incentive level remains at 62 cents per pound for shorn wool, grease basis. The payment rates for the 1957 program will be determined in mid-1958 after all producer returns from the 1957 clip have been filed. Payments will be made during the fiscal year 1959. Under the program for 1957, each producer who owns lambs for 30 days or more and sells the lambs unshorn for any purpose will be eligible for a payment. The payments will be made on the weight or weight increase of the animals that occurs during each producer's ownership. Any shorn wool incentive payments made to producers who buy unshorn lambs and later shear them will be adjusted downward by the amount of the lamb payment previous owners were eligible to receive. 1958 program The program for the 1958 marketing year has been announced at the same level as for the 1957 program. It is currently anticipated that sufficient funds for the 1958 marketing year will be available provided the prices received by producers continue at current levels and duty collections available for payments increase somewhat as a result of the complete disposal of wool acquired by CCC under previous price-support programs. Payments under the 1958 program will be made during the fiscal year 1960. 1959 program New legislation will be required in order to provide an incentive payment program for wool for the 1959 marketing year, as present legislation covers the marketing year 1958 which will end on March 31, 1959. Summary The following statement reflects a summary of the actual and estimated incentive payments compared with the limitation on such payments: 70 percent of customs receipts on wool: Jan. 1, 1957, to Dec. 31, 1957 (estimate) (basis for reimbursement to CCC in fiscal year 1959) _ _. Jan. 1, 1956, to Dec. 31, 1956 (actual) (basis for reimbursement to CCC in fiscal year 1958). $90, 977, 826 29, 671, 679 30, 000, 000 1955 marketing year: Balance of limitation unused__. Total through calendar year 1957... Payments in fiscal year 1957 (actual). Balance of limitation available after 1955 marketing year 70 percent of estimated customs receipts on wool-calendar 1956 marketing year: Payments in fiscal year 1958 (estimate) _ _. Balance of limitation available after 1956 marketing year 70 percent of estimated customs receipts on wool-Jan. 1– 1957 marketing year: Payments in fiscal year 1959 (estimated) _ _ _. Balance of limitation available after 1957 marketing year 1958 marketing year: Payments in fiscal year 1960 (estimate) __ Payments by States. The payments, by States, made through the end of the 1957 fiscal year on the 1955 program and through October 31, 1957, on the 1956 program, are shown in the following tables: 150, 649, 505 - $57, 621, 059 93, 028, 446 32, 000, 000 -53, 100, 000 71,928, 446 8, 000, 000 -28, 500, 000 51,428, 446 -36, 000, 000 15, 428,000 Payments, by States under the 1956 wool program, through Oct. 31, 1957 Mr. WHITTEN. I notice you have an increase of $328,321. When I come to this Wool Act and the Perishable Commodities Act, and the section 32 funds, all with large direct payment funds out of the Treasury, I can understand why those groups don't seem to think they have an interest in the farm program. They have got theirs made. The Democrats refer to this as the Benson version of the Brannan plan. The Republicans don't refer to it that way, I don't believe. How long do you expect that act to continue? Mr. MCLAIN. It expires at the end of this next marketing year, March 1959. |