Summary of latest operations WHEAT Objective. To support the price of 1958-crop wheat at not more than 90 nor less than 75 percent of parity as required by law. Eligibility.-Eligible commodity is wheat produced in the continental United States in 1958 and shall be (1) any class grading No. 3 or better; or (2) any class grading No. 4 or No. 5 on the factor of "test weight" and/or because of containing durum and/or red durum but otherwise grading No. 3 or better, and meeting sanitation requirements of Food and Drug Administration in a manner determined by the President or Executive Vice President. Wheat that cannot be safely stored on the farm is not eligible for farm-storage loans. Wheat produced on federally owned land in violation of restrictive leases, or on newly irrigated, drained, or reclaimed land within any Federal project authorized after May 28, 1956, shall not be eligible. Wheat producers in the commercial producing areas must comply with applicable regulations prescribed by the Secretary with respect to wheat acreage allotments and marketing quotas. Operations.-Nonrecourse loans will be available from harvest (about May 15, 1958) through January 31, 1959, and will mature February 28, 1959, in designated States and March 31, 1959, in other States, or earlier on demand. The minimum level of support in the commercial wheat-producing area will be $1.78 per bushel which is 75 percent of estimated transitional parity. This announced price will not be reduced, but will be increased if necessary because of any increase in parity or decrease in the supply percentage as of July 1, 1958, the beginning of the marketing year. The level outside the commercial wheat-producing area will be 75 percent of that in the commercial wheat-producing area. Loans may be obtained from approved lending agencies, through eligible financial institutions, or direct from the Corporation through the agricultural stabilization and conservation county committees. Farm-storage loans will be on a note-and-chattel mortgage basis and warehouse-storage loans on a note-and-loan agreement basis. Purchase agreements will be offered to producers from about May 15, 1958, through January 31, 1959. A producer desiring to deliver wheat to the Corporation under a purchase agreement must declare his intention to sell within a 30-day period ending on the applicable loan maturity date, or on such earlier date as may be determined by the Corporation. The producer will not be obligated to sell any specified quantity; however, the number of bushels specified in the purchase agreement will be the maximum quantity that may be delivered. Authority. Commodity Credit Corporation Charter Act, as amended (15 U. S. C. 714-7140), particularly section 714c thereof; titles I and IV of the Agricultural Act of 1949, as amended (7 U. S. C. 1441, 1421–1431); and titles I and II of the Agricultural Act of 1956 (7 U. S. C. 1813, 1860). Basis of estimate Acreage allotments and marketing quotas will be in effect on the 1958 crop of wheat. Participation in the soil-bank acreage reserve program for the 1958 crop year is estimated to cover 6,300,000 acres compared with 12,783,000 acres for the 1957 crop year and 5,469,000 acres for the 1956 crop year. Assuming (1) that 50 million acres of the allotted 55 million acres will be harvested, and (2) a yield per acre of 20 bushels, a production of 1 billion bushels is estimated for the 1958 crop-72.7 million bushels more than is currently indicated for the 1957 crop. Changes in the Corporation's wheat export programs providing that sales will be drawn from free market stocks rather than from CCC inventories have resulted in lower proportions of production being placed under support and this trend is expected to continue. It is estimated that price support will be extended on 210 million bushels during the fiscal year 1959 (about 21 percent of the production) compared with 210.5 million bushels (about 23 percent of the production) anticipated for the fiscal year 1958 and actual price support extended in the fiscal year 1957 on 238.8 million bushels (about 25 percent of the production). Acquisitions during the fiscal year 1959 are estimated at 146.5 million bushels compared with 153.1 million bushels anticipated for the fiscal year 1958 and actual acquisitions in the fiscal year 1957 of 165 million bushels. Sales during the fiscal year 1959 are estimated at 200 million bushels compared with 165.1 million bushels anticipated for the fiscal year 1958 and actual sales in the fiscal year 1957 of 273.1 million bushels, reflecting the Corporation's policy which restricts sales of CCC wheat primarily for the payment of the price differential on export sales in wheat instead of cash and for barter programs. Wheat flour.-Price-support stocks of wheat are exchanged for wheat flour and subsequently disposed of under section 416 of the Agricultural Act of 1949 and for relief requirements under title II of Public Law 480. It is estimated that 815.5 million pounds of flour valued at $57.1 million will be donated under section 416 during the fiscal year 1959 compared with 896 million pounds valued at $62.7 million anticipated for the fiscal year 1958 and actual donations in the fiscal year 1957 of 560.9 million pounds valued at $40.1 million. Other dispositions, primarily under title II of Public Law 480, are estimated at 42.9 million pounds of flour valued at $3.2 million during the fiscal year 1959 compared with 46.1 million pounds valued at $4.1 million anticipated for the fiscal year 1958 and actual dispositions during the fiscal year 1957 of 33 million pounds valued at $2.3 million. PRICE SUPPORT PROGRAM, MANDATORY NONBASIC COMMODITIES Summary of latest operations HONEY Objective. To support the price which beekeepers receive for honey at not more than 90 nor less than 60 percent of parity, as required by law. Eligibility.-Eligible participant is any individual, partnership, association, or corporation producing 1957 crop extracted honey. Eligible commodity is limited to extracted honey of the 1957 crop produced in continental United States, Hawaii, and Puerto Rico, packed in 60-pound or larger containers, equivalent to or better than U. S. Grade C, and not objectionable in flavor. Operations.-Nonrecourse farm-storage loans and purchase agreements are available from April 1, 1957, through December 31, 1957, and will mature not later than March 31, 1958. Direct purchases are authorized in Hawaii and Puerto Rico. The national average support price of 9.7 cents a pound reflects 70 percent of parity as of February 15, 1957, adjusted to the 60-pound container level. Loans are made on a note-and-chattel mortgage basis and may be obtained from approved lending agencies or direct from CCC through the agricultural stabilization and conservation county committees. Loan rate is determined on the basis of samples from the lot or lots which will be placed under loan. Honey is to be stored in approved storage structures located on or off the producers' premises, excluding public warehouses. Producers are obligated to maintain the structures in good repair and keep honey in good condition. Purchase agreement deliveries will be accepted within the maximum quantity specified in the agreement. Contracts on a negotiated or bid basis may be entered into with commercial honey packers for processing or repackaging which may be required either to protect or facilitate the disposition of the commodity. Authority.-Commodity Credit Corporation Charter Act, as amended (15 U. S. C. 714-7140), particularly section 714c thereof; and titles II and IV of the Agricultural Act of 1949 (7 U. S. C. 1446, 1421–1431). Basis of estimate It is estimated that honey production in the marketing year 1958 will be 240 million pounds compared with 235.4 million pounds estimated for the marketing year 1957-an increase of 11.9 and 9.7 percent, respectively, above the actual production of 214.5 million pounds in the marketing year 1956. This reflects an increase in the number of colonies and in the average yield per colony. Imports during 1958 are expected to be at about the same level as in 1957, but somewhat higher than in 1956. With a higher carry-in for the 1958 marketing year, total supplies of 268 million pounds are indicated, compared with 257.4 million pounds estimated for the 1957 marketing year and 235.1 million pounds in the 1956 marketing year. Exports during the marketing year 1958 are expected to be at the same level as in the 1957 marketing year, but somewhat lower than in the marketing year 1956. Domestic consumption in 1958 is expected to increase to 230 million pounds from the 217.4 million pounds estimated for 1957 and 199.9 million pounds actually used in 1956. As a protection against possible marketing difficulties in the marketing year 1958 due to increased carry-in, it is estimated that price support will be extended on 4 million pounds of honey in the marketing year 1958 compared with 2.2 million pounds estimated for 1957 and 1.8 million pounds extended in the 1956 marketing year. Acquisitions in the 1958 marketing year are estimated at 1.4 million pounds compared with 0.2 million pounds anticipated during the 1957 marketing year and none in the 1956 marketing year. It is anticipated that all honey acquired will be sold during the year of acquisition. MILK AND BUTTERFAT Summary of latest operations Objective. To support the general level of prices to producers of milk and butterfat and the products of such commodities from April 1, 1957, to March 31, 1958, as required by law. Eligibility.—Eligible dairy products must be produced and located in the continental United States and must be in units of not less than tariff minimum carlots for the area where the products are located. The following products are eligible at maximum rates indicated. Purchase prices (cents per pound) U.S. grade A U. S. grade B or higher Butter (bulk): New York, N. Y., and Jersey City and Newark, N. J. Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine. Arizona, New Mexico, Texas, and Louisiana. Mississippi, Alabama, Georgia, Florida, and South Carolina. Purchases of butter are on a basing-point method. Purchase prices at designated markets (New York, Seattle, and San Francisco) and in specified States shall not exceed the prices listed above. The purchase price at other points will be at the price of the designated market named by the seller less 80 percent of the lowest published domestic railroad carlot freight rate per pound gross weight from the offer point to the designated market, except that the purchase prices at Chicago shall continue to be those in effect during the 1956-57 marketing year (59.5 cents a pound for U. S. Grade A and 57.5 cents a pound for U. S. Grade B). Purchase prices were computed to reflect a general level of prices to producers of about 79 percent of butterfat parity price and 82 percent parity equivalent price for milk used in manufacturing principal dairy products, or $3.25 per hundredweight for manufacturing milk testing 3.95 percent and 58.6 cents per pound for butterfat. Donations under section 416 to the Administrator of Veterans' Affairs, and to the Secretary of the Army, acting also for the Navy, Marine Corps, and Air Force, are authorized for price-supported dairy products (including milk). An allowance by CCC is made for surplus fluid milk purchased by the above agencies at rate of $4.10 per hundredweight. Under existing legislation the latter program will expire on December 31, 1958. To support dairy prices, beginning September 1, 1954, and ending June 30, 1958, not to exceed $50 million for the fiscal year ending June 30, 1955, not to exceed $60 million for the year ending June 30, 1956, and for each of the 2 years in the period beginning July 1, 1956, and ending June 30, 1958, not to exceed $75 million of CCC funds shall be used to increase the consumption of fluid milk by children in nonprofit schools of highschool grade and under and in nonprofit child-care institutions. Payments are made through the facilities of the school-lunch program upon certifications of use of additional milk by local schools or institutions. This operation is administered by the Agricultural Marketing Service. Authority.-Commodity Credit Corporation Charter Act, as amended (15 U. S. C. 714-7140), particularly section 714c thereof; and title II of the Agricultural Act of 1949 (7 U. S. C. 1446-1446c). Basis of estimate Milk production in the 1958-59 marketing year is estimated at 128.5 billion pounds, milk equivalent-900 million pounds more than is anticipated for the 1957-58 marketing year as the increase in production per cow continues to more than offset the decline in the number of cows. Domestic disappearance in the 1958-59 marketing year is expected to increase over the past 2 marketing years. Exports in the 1958-59 marketing year are anticipated to remain at the same level as the previous year but below the 1956–57 marketing year, reflecting the discontinuance of foreign donations of butter and butter oil. The carryout at the end of the 1958-59 marketing year reflects the reduction in CCC stocks of dairy products primarily caused by the large volume of donations through section 416 of the Agricultural Act of 1949 and greater consumption due to reduced support levels. The volume of purchases in fiscal year 1959 is expected to decrease to 4,250 million pounds, milk equivalent, as compared with an estimated 5,550 million pounds for 1958 and actual purchases of 5,350 million pounds in fiscal year 1957. The decrease is due to the effect of the announced reduction in support level to 75 percent of parity for purchases in the. 1958-59 marketing year partly offset by increased purchases due to the expiration of the authorization for special milk programs. Summary of latest operations TUNG NUTS Objective. To support the price of 1957-crop tung nuts at not more than 90 percent nor less than 60 percent of parity as required by law. Eligibility. Producers of 1957-crop tung nuts. Tung nuts must be matured, air dried with hard hulls and suitable for milling. Tung oil must meet Federal specifications. Operations. Purchase agreements are available on eligible tung nuts from November 1, 1957, through January 31, 1958. The support level shall be $52.13 per ton, basis 18.5 percent oil content (65 percent of parity as of November 1, 1957, the beginning of the marketing year). The producer may deliver tung nuts or tung oil at his option, so long as the quantity does not exceed the maximum amount of tung nuts, or tung oil equivalent, specified in the purchase agreement. Notice of intention to deliver tung nuts must be made known by producers within a 30-day period ending March 31, 1958, and to deliver tung oil within a 30-day period ending October 31, 1958. Nonrecourse loans and purchase agreements on eligible tung oil are available from November 1, 1957, through June 30, 1958, maturing October 31, 1958, or earlier on demand. The loan and purchase agreement rate of 20.5 cents per pound is determined on the basis of a formula involving the support level of tung nuts and the milling fee and oil outturn per ton of nuts. Loans are made on a note-and-loan agreement basis with a warehouse receipt constituting the security. Loans may be obtained from approved lending agencies or direct from the Corporation through the agricultural stabilization and conservation county committees. Authority. Commodity Credit Corporation Charter Act, as amended (15 U. S. C. 714-7140), particularly section 714c thereof; and titles II and IV of the Agricultural Act of 1949 (7 U. S. C. 1446, 1421–1431). Basis of estimate It is estimated that the 1958 tung nut crop will amount to about 100.000 tons resulting in an estimated production of 32 million pounds of oil compared with 110,000 tons of nuts and 35 million pounds of oil anticipated for the 1957 crop and 100,176 tons of nuts and 32 million pounds of oil produced from the 1956 crop. Total supplies of 87 million pounds are estimated for the 1958 marketing year including imports of 26 million pounds, the quota established by the Presi dent's proclamation of September 9, 1957. Such imports would furnish half of the 52 million pounds required for domestic use. Price support to be extended on the 1958 crop is estimated at 20.2 million pounds compared with 27.5 million pounds anticipated for the 1957 crop and 21.2 million pounds actually extended on the 1956 crop. Acquisitions of the 1958 crop will occur during the fiscal year 1960. Acquisitions of the 1957 crop (in fiscal year 1959) are estimated at 7 million pounds compared with acquisitions of 15 million pounds from the 1956 crop. In order to maintain the quality of the inventory, it is contemplated that 13 million pounds of the 1956 crop oil will be rotated by exchanging it for 1957 crop oil. Because of the current supply situation, no sales of oil are contemplated during fiscal years 1958 and 1959. However, if the 1958 Argentine tung crop is a relatively poor one, as recent Embassy reports indicate, and if the United States crop is damaged by freeze, as was the case with the 1955 crop, it may be possible to dispose of the Corporation's inventories. All stocks of oil acquired from prior programs were sold during the fiscal year 1957. Summary of latest operations WOOL AND MOHAIR Objective. To support the prices of wool and mohair during the marketing year April 1, 1958, through March 31, 1959, by incentive payments, in accordance with the National Wool Act of 1954. Eligibility. Domestic wool and mohair shorn on or after January 1, 1955, and marketed on or after April 1, 1958, but not later than March 31, 1959. Domestic unshorn lambs marketed on or after April 1, 1958, but not later than March 31, 1959. Operations.-Price of domestic shorn wool is supported by incentive payments to producers, based on their net sales' proceeds from shorn wool marketed during the 1958 marketing year. Pulled wool is supported by payments on the live weight of sheep and lambs, according to pelt classifications, marketed during the 1958 marketing year. Incentive payment for domestic shorn wool is 62 cents per pound, grease basis, being 95 percent of the parity price as of September 15, 1957. The incentive price for pulled wool will be figured at a rate per hundredweight of live animals to compensate for the wool at a price relationship comparable to the incentive payments for shorn wool. Price of domestic shorn mohair is supported at 70 cents per pound, which is approximately 82 percent of the parity price for mohair as of September 15, 1957. While mohair support levels shall be at a level comparable to the wool incentive price, the mohair price level may vary as much as 15 percent above or below the comparable percent-of-parity wool incentive level. Payments are made to eligible producers, based on their net sales proceeds from shorn wool and mohair marketed during the 1958 marketing year, or on the live weight of unshorn lambs sold during the marketing year irrespective of the purpose for which the lambs are sold. Such payments are reimbursable from 70 percent of the annual specific duties collected on wool and wool manufactures. Payments to producers are on a percentage basis, reflecting the amount required to bring the national average price received by all producers up to the announced incentive level. Applications by producers for payment, determination of producers' eligibility for payments, and computation of payments, will be made through Agricultural Stabilization and Conservation County Committees. Authority.-Commodity Credit Corporation Charter Act, as amended (15 U. S. C. 714-7140), particularly section 714c thereof; and the Natural Wool Act of 1954, title VII of the Agricultural Act of 1954 (7 C. S. C. 1781-1787). Basis of estimate Wool. As a result of improved range and pasture condition in the drought area, domestic shorn-wool production during the marketing year 1958 is expected to increase to 230 million pounds (grease basis) from the 226 million pounds (grease basis) anticipated for the 1957 marketing year-both slightly lower than the 232.1 million pounds shorn in the marketing year 1956. Pulledwool production is estimated at 37.9 million pounds (grease basis) in each of the marketing years 1957 and 1958 compared with 39.9 million pounds during the 1956 marketing year. In terms of clean basis, production for both the 1957 and 1958 marketing years is estimated at 125 million pounds, compared with 132 million pounds in the 1956 marketing year. The monthly averages of prices received by growers for wool during the first 7 months of the 1957 marketing year ranged between 5.3 and 12.1 cents above the average of 44.3 cents for the entire 1956 marketing year. The average for October 1957 was 49.6 cents, compared with 56.4 cents for June, the peak for the first 7 months of the 1957 marketing year. The decline since June reflects an easing of prices in the world market toward the close of the marketing seasons in Southern Hemisphere producing areas. At the opening late in August of 21494-58-pt. 3--38 |