It is estimated that loans will be made on 1 million gallons in the crop year 1958 compared with 400,000 in the crop year 1957 and none in the crop year 1956. All loans are expected to be redeemed. It is anticipated that all stocks of CCCowned turpentine will be exhausted by June 30, 1959.

Summary of latest operations

OATS

Objective. To support the price of 1957-crop oats at 70 percent of June 15, 1957 parity, as required by law.

Eligibility.—Eligible commodity is 1957-crop oats produced in continental United States grading No. 3 or better, or No. 3 Garlicky or better. Oats 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. Eligible participants are producers of 1957-crop oats, who are in compliance with any regulations prescribed by the Secretary governing eligibility for price support.

Operations.-Nonrecourse loans are available from about May 15, 1957, through January 31, 1958, and will mature on April 30, 1958 (except that an earlier maturity date may be established for any State by the President or Executive Vice President, CCC) or earlier on demand. The national average support price is 61 cents per bushel, reflecting 70 percent of June 15, 1957 parity price for all oats. 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. Loans will be made on a not-and-chattel mortgage basis for farm-stored oats and on a note-and-loan agreement basis for warehouse-stored oats secured by warehouse receipts. Purchase agreements are offered to producers from harvest through January 31, 1958. A producer who elects to deliver oats 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. The producer is not obligated to sell any specified quantity; however, the number of bushels specified in the purchase agreement is 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 III and IV of the Agricultural Act of 1949, as amended (7 U. S. C. 1447-1449, 1421-1431); and titles I, II, and III of the Agricultural Act of 1956 (7 U. S. C. 1813, 1860, 1442d).

Basis of estimate

Assuming (1) a 1958-crop harvested acreage of 36 million acres-about the same as that harvested in the 1957 crop year-and (2) a yield per acre of 38.3 bushels (the same as the actual yield for the 1955 crop), a production of 1,379 million bushels is estimated for the 1958 crop-41 million bushels more than is currently indicated for the 1957 crop.

Should price support extended on the 1958 crop equal 4.4 percent of the production-the average percentage of the production of the 1954 through 1956 crops actually placed under support-it is estimated that price support will be obtained on 60.6 million bushels in the fiscal year 1959 compared with 55.1 million bushels anticipated for the fiscal year 1958 and actual price support extended in the fiscal year 1957 on 36.8 million bushels.

Acquisitions during the fiscal year 1959 are estimated at 41.6 million bushels compared with 33.0 million bushels anticipated for the fiscal year 1958 and actual acquisitions in the fiscal year 1957 of 20.7 million bushels. Sales activity during the fiscal year 1959 is estimated to total 28 million bushels compared with 43.4 million bushels anticipated for the fiscal year 1958 and actual sales in the fiscal year 1957 of 40.2 million bushels.

Summary of latest operations

RYE

Objective.—To support the price of 1957-crop rye at 70 percent of June 15, 1957, parity, as required by law.

Eligibility.—Eligible commodity is rye produced in continental United States in 1957 and grading No. 2 or better, or grading No. 3 or No. 4 on the factor of test weight only, containing not more than 1 percent ergot. Rye 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.

Eligible participants are producers of 1957-crop rye, who are in compliance with any regulations prescribed by the Secretary governing eligibility for price support.

Operations.-Nonrecourse loans are available from about May 15, 1957, through January 31, 1958, and will mature on April 30, 1958 (except that an earlier maturity date may be established for any State by the President or Executive Vice President, CCC) or earlier on demand. The national average support price will be $1.18 per bushel which is 70 percent of June 15, 1957, parity price for all rye. 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. Loans will be made on a note-and-chattel mortgage basis for farm-stored rye and on a noteand-loan agreement basis secured by warehouse receipts for warehouse-stored rye. Purchase agreements are offered to producers from harvest through January 31, 1958. A producer desiring to deliver rye to the Corporation under a purchase agreement must declare his intention to sell within a 30-day period ending on the applicable lean maturity date. The producer is not obligated to sell any specified quantity: however, the number of bushels specified in the purchase agreement is 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 III and IV of the Agricultural Act of 1949, as amended (7 U. S. C. 1447-1449, 1421-1431); and titles I, II, and III of the Agricultural Act of 1956 (7 U. S. C. 1813, 1860, 1442d). Basis of estimate

Assuming (1) a 1958 crop harvested acreage of 1,650,000 acres-71,000 acres less than that harvested in the 1957 crop year and (2) a yield per acre of 15.4 bushels (the same as is currently indicated for the 1957 crop), a production of 25.4 million bushels is estimated for the 1958 crop-1 million bushels less than is currently indicated for the 1957 crop.

Should price support extended on the 1958 crop equal 28.9 percent of the production-the average percentage of the production of the 1954 through 1956 crops actually placed under support-it is estimated that price support will be obtained on 7.3 million bushels during the fiscal year 1959 compared with 7.1 million bushels anticipated for the fiscal year 1958 and actual price support extended in the fiscal year 1957 on 3.2 million bushels.

Acquisitions during the fiscal year 1959 are estimated at 6.7 million bushels compared with 6.4 million bushels anticipated for the fiscal year 1958 and actual acquisitions in the fiscal year 1957 of 3.7 million bushels. Sales activity during the fiscal year 1959 is estimated to total 6.5 million bushels compared with 5.2 million bushels anticipated for the fiscal year 1958 and actual sales in the fiscal year 1957 of 10.8 million bushels.

Summary of latest operations

SORGHUMS GRAIN

Objective.—To support the price of 1957 crop grain sorghums at 70 percent of September 15, 1957, parity, as required by law.

Eligibility. Eligible commodity is grain sorghums produced in continental United States in 1957, grading No. 4 or better, or No. 4 smutty or discolored or better, and containing not more than 13 percent moisture. Grain sorghums 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. Eligible patricipants are producers of 1957 crop grain sorghums, who are in compliance with any regulation prescribed by the Secretary governing eligibility for price support.

Operations.-Nonrecourse loans are available from April 1, 1957, through February 28, 1958, and will mature March 31 (except that an earlier maturity date may be established in any State by the President or Executive Vice Presi dent, CCC), or earlier on demand. The national average support price is $1.86 per hundredweight, which is 70 percent of September 15, 1957, parity price for all grain sorghums. Temporary recourse loans are available at 80 percent of regular county loan rates for a 90-day period in designated areas where adequate storage is not immediate available. 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 secured by notes and chattel mortgages and warehouse-storage loans will be secured by notes and loan agreements secured by warehouse receipts.

Purchase agreements are offered to producers from April 1, 1957, through February 28, 1958. A producer desiring to deliver grain sorghums to the Corporation under a purchase agreement must declare his intention to sell within a 30-day period ending March 31, 1958. The producer is not obligated to sell any specified qauntity; however, the amount specified in the purchase agreement is 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 III and IV of the Agricultural Act of 1949, as amended (7 U. S. C. 1447-1449, 1421-1431); and titles I, II, and III of the Agricultural Act of 1956 (7 U. S. C. 1813, 1860, 1442d). Basis of estimate

Special consideration has been given to the estimates of production and price support to be extended on the 1958 crop because of more recent trends with respect to acreage being devoted to these crops and the resultant effect of increased production upon quantities to be placed under support. Assuming (1) a 1958-crop harvested acreage of 15 million acres 3 million acres less than that harvested in the 1957 crop year primarily as a result of the base acreages established for each farm participating in the 1958 soil bank acreage reserve program for the basic commodities (which restricts the planting of other crops on acreage placed under that program), and (2) a yield per acre of 23.3 bushels, a production of 350 million bushels is estimated for the 1958 crop 176.5 million bushels less than is currently indicated for the 1957 crop.

It is estimated that price support will be extended on 208 million bushels during the fiscal year 1959 compared with 276 million bushels anticipated for the fiscal year 1958 and actual price support extended in fiscal year 1957 on 39.1 million bushels.

Acquisitions during the fiscal year 1959 are estimated at 205 million bushels compared with 240 million bushels anticipated for the fiscal year 1958 and actual acquisitions in the fiscal year 1957 of 32.5 million bushels. Sales activity during the fiscal year 1959 is estimated to total 150 million bushels compared with 67.9 million bushels anticipated for the fiscal year 1958 and actual sales in the fiscal year 1957 of 39.5 million bushels.

Summary of latest operations

SOYBEANS

Objective. To support the price of 1957-crop soybeans at such level as to cause competition on equal terms on the market with cottonseed.

Eligibility.-Eligible commodity is soybeans produced in continental United States having moisture content not in excess of 14 percent, grading No. 4 or better on all other factors, and meeting in a manner determined by the President or Executive Vice President, CCC, sanitation requirement of the Food and Drug Administration in effect at time loan is made or delivery made to CCC under purchase agreement. Soybeans 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. Eligible participants are producers of 1957-crop soybeans.

Operations. Nonrecourse loans are available from harvest (about August 15, 1957) through January 31, 1958, maturing May 31, 1958 (except that an earlier maturity date may be established in any State by the President or Executive Vice President, CCC), or earlier on demand. The national average support price is $2.09 per bushel, 70 percent of January 15, 1957, parity. 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. Loans are made on a note-and-chattel mortgage basis for soybeans stored in approve farm-storage structures and on a note-and-loan agreement basis secured by warehouse receipts when places of storage is an approved public warehouse.

Purchase agreements are available to producers from harvest through January 31, 1958. A producer desiring to deliver soybeans to the Corporation under a purchase agreement must so declare his intentions within a 30-day period ending May 31, 1958, or on such earlier date as may be determined by the Corporation. A producer is not obligated to deliver any specified quantity of soybeans to CCC; however, the number of bushels specified in the purchase agreement is the maximum quantity which may be delivered.

Authority.-Commodity Credit Corporation Charter Act, as amended (15 U. S. C. 714-7140), particularly section 714c thereof; titles III and IV of the Agricultural Act of 1949, as amended (7 U. S. C. 1447-1449, 1421-1431); and titles I, II, and VI of the Agricultural Act of 1956 (7 U. S. C. 1813, 1860, and 1432).

Basis of estimate

Special consideration has been given to the estimates of production and price support to be extended on the 1958 crop because of more recent trends with respect to acreage being devoted to these crops and the resultant effect of increased production upon quantities to be placed under support. Assuming (1) a 1958-crop harvested acreage of 21,750,000 acres-100,000 acres more than is currently indicated for the 1957 crop, and (2) a yield per acre of 22.1 bushels, a production of 480 million bushels is estimated for the 1958 crop-11.4 million bushels more than is currently indicated for the 1957 crop.

It is estimated that price support will be extended on 110 million bushels during the fiscal year 1959-the same as anticipated in the fiscal year 1958compared with actual price support extended in the fiscal year 1957 on 65.7 million bushels.

Acquisitions during the fiscal year 1959 are estimated at 60 million bushels compared with 55.8 million bushels anticipated for the fiscal year 1958 and actual acquisitions in the fiscal year 1957 of 22.4 million bushels. Sales activity during the fiscal year 1959 is estimated to total 42 million bushels compared with 26.5 million bushels anticipated for the fiscal year 1958 and actual sales during the fiscal year 1957 of 6.8 million bushels.

PRICE SUPPORT PROGRAM, BARTER AND EXCHANGE

Summary of latest operations

Objective. To dispose of CCC-owned agricultural commodities by means of barter or exchanges for (1) strategic and critical materials intended for incorporation into the national stockpile and for the supplemental stockpile; (2) nonstrategic materials required for supply programs of other Government agencies; (3) materials required for off-shore construction programs; and (4) construction of military housing.

Eligibility.-Materials designated as strategic and critical must have been so designated by the Office of Defense Mobilization or its predecessor, pursuant to section 2 of the Strategic and Critical Materials Stockpiling Act of 1946 (Public Law 520, 79th Cong.) and must have been produced abroad. Nonstrategic materials acquired are those which other Government agencies require to meet supply and construction program commitments. Such agencies must have designated the kind, quality, schedule of delivery and other conditions involved in the procurement and these agencies, or their Government procurement agent, must have agreed to accept the materials. Strategic materials procured by the Commodity Credit Corporation will be those types of materials designated by ODM as required to meet short, long term, or supplemental stockpile objectives and be such that the domestic economy will not be adversely affected by the acquisition and such that CCC's assets will be protected and result in savings in carrying charges as compared with cost of carrying surplus agricultural commodities (Public Law 480, sec. 303).

Operations. It has been the policy of the CCC to limit consideration of barter offers to those materials required and/or designated by other Government agencies. Consequently, the acquisition of strategic and critical materials has been within ODM's stockpile objectives both as to types and quantities. Barter procurement of nonstrategic materials has been effected against specific requirements of such materials by other Government agencies primarily for offshore use. Strategic materials are transferred to (1) the national stockpile, for which the Corporation is reimbursed with appropriated funds, and (2) the supplemental stockpile, for which an appropriation is authorized for funds necessary to reimburse the Corporation. In the case of nonstrategic materials, the CCC is reimbursed for the materials procured upon delivery to the agency concerned. Proceeds from the export sale of CCC-owned surplus commodities are used by the Department of Defense to construct military housing abroad. The Corporation is reimbursed from appropriations available for the payment of quarters allowances for military personnel and from allotments or rental charges otherwise navable to or collected from personnel occunving the housing.

In a particular barter operation, the exchange value of the transaction is fixed in a contract between the offeror of the materials and the CCC. This exchange

value determines quantities to be delivered of both the materials and the agricultural commodities which must be subsequently exported by the contractor. Since the price for the materials is also fixed in the contract, the quantity of materials to be delivered is determine at this point. The contract price for materials is the best offer received, not to exceed the current market price, accepted only after full consultation with materials experts of either GSA or other agencies.

In the case of the agricultural commodities, however, the contractor may take whatever commodities are available from CCC inventories at export prices generally applicable for such commodities at any time within the life of the contract, total quantities determined by the exchange value fixed in the contract.

The barter program of the Commodity Credit Corporation operates through private United States firms using commercial trade channels, but barter can be effected with foreign governments where it is not practicable to carry out the barter through private trade channels.

Authority. The Commodity Credit Corporation Charter Act, as amended, section 4 (h) insofar as strategic and critical materials are concerned; section 5 (f) of this act insofar as other than strategic materials are concerned; title III of the Agricultural Trade Development and Assistance Act (7 U. S. C. 1692); title II of the Agricultural Act of 1956 (7 U. S. C. 1704, 1856); and Public Law 161 (5 U. S. C. 171 z-1).

Basis of estimate

In the light of changes in the overall foreign trade situation, particularly increased exports of agricultural commodities and improved dollar exchange situation, barter operations of the Corporation were temporarily suspended during the fiscal year 1957 to permit a detailed review of the program to insure that each barter contract would result in a net increase in exports of the agricultural commodity involved. Upon completion of the review, certain revisions were made in the program provisions and barter operations were resumed. Consequently, barter contracts during the fiscal year 1958 are estimated to drop to a total of $50 million-considerably below the $227.6 million of contracts entered into during the fiscal year 1957. However, during the fiscal year 1959 it is estimated that contracts will increase to a total of $100 million.

Deliveries to CCC of strategic and other materials during the fiscal year 1959 under prior year and current year contracts are estimated to total $128.3 million compared with $202.9 million anticipated for the fiscal year 1958 and actual deliveries during the fiscal year 1957 of $254.4 million.

It is estimated that CCC will receive $65.5 million for materials sold to the national stockpile or other Government agencies during the fiscal year 1959 compared with $30.9 anticipated for the fiscal year 1958 and actual sales of $59.8 million during the fiscal year 1957. During the fiscal year 1959 it is estimated that strategic materials valued at $70.2 million will be transferred to the supplemental stockpile compared with $77.8 million anticipated for the fiscal year 1958 and actual transfers during the fiscal year 1957 of $218.9 million. The Corporation obtains reimbursement in subsequent years for materials transferred to the supplemental stockpile by appropriations authorized by title II of the Agricultural Act of 1956. A 1958 supplemental estimate of $218,946,145 to reimburse the Corporation for 1957 transfers is proposed for later transmission under the heading "Reimbursement to Commodity Credit Corporation for Special Commodity Disposal Programs, Commodity Stabilization Service."

Construction of military housing.-During the fiscal year 1957 a contract was completed for the barter of CCC owned commodities valued at $50 million for the construction of military housing in France. It is anticipated that housing valued at $25 million will be completed during the fiscal year 1959 compared with $24.5 million anticipated for the fiscal year 1958 and actual construction during the fiscal year 1957 of $0.5 million. Proceeds from rental and quarters allowances would be paid by the Defense Department to CCC over a period of about 20 years to reimburse the Corporation.

PRICE SUPPORT PROGRAM, 1957 EMERGENCY FEED PROGRAM

Summary of latest operations

Objective. To provide feeds at reduced prices to distressed farmers and ranchers in designated disaster areas.

Eligibility.-Surplus feed grains (corn, grain sorghums, oats, and barley), so designated because of extensive CCC holdings.