An Act to extend the feed grain program
PL 88-26 (H.R.4997), enacted 05/20/1963

44 
PUBLIC LAW 88-26-MAY 20, 1963 
[77 STAT. 
May 20, 1963 
[H- R. 4997] 
Public Law 88-26 
AN ACT 
To extend the feed grain program. 
Feed Grain Act 
of 1963. 
72 Stat. 994; 
75 Stat. 6, 30 i; 
76 Stat. 612. 
7 u s e 1441 
note. 
Feed grain pro-
grams. 
Conditions of 
eligibility. 
Post, 
p. 45. 
76 Stat. 631. 
7 u s e 1334 
note. 
Negotiable cer-
tificates. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, Tliat tliis Act may 
be cited as the "Feed Grain Act of 1963." 
SEC. 2. Section 105 of the Agricultural Act of 1949, as amended, 
is amended— 
(1) by changing the period at the end of subsection (a) to a 
colon and adding the following: '•'Provided, That in the case of 
any crop for which an acreage diversion program is in effect for 
feed grains, the level of price support for corn of such crop shall 
be at such level not less than 65 per centum or more than 90 per 
centum of the parity price therefor as the Secretary determines 
necessary to achieve the acreage reduction goal established by him 
for the crop.-' 
(2) by adding the following new subsection (d) : 
"(d) The provision of this subsection shall be applicable with 
respect to the 1964 crop and the 1965 crop of feed grains if an acre-
age diversion program is in effect under section 16(h) of the Soil 
Conservation and Domestic Allotment Act, as amended. The Secre-
tary shall require as a condition of eligibility for price support on the 
crop of any feed grain which is included in the acreage diversion 
program that the producer shall participate in the diversion program 
to the extent prescribed by the Secretary, and, if no diversion program 
is in effect for the 1964 crop or the 1965 crop, he may require as a 
condition of eligibility for price support on such crop of feed grains 
that the producer shall not exceed his feed grain base: Provided, That 
the Secretary may provide that no producer of malting barley shall 
be required as a condition of eligibility for price support for barley 
to participate in the acreage diversion program for feed grains if 
such producer has previously produced a malting variety of barley, 
plants barley only of an acceptable malting variety for harvest, does 
not knowingly devote an acreage on the farm to barley in excess of 
110 per centum of the average acreage devoted on the farm to barley 
in 1959 and 1960, does not knowingly devote an acreage on the farm 
to corn and grain sorghums in excess of the average acreage devoted 
on the farm to corn and grain sorghums in 1959 and 1960, and does 
not devote any acreage devoted to the production of oats and rye in 
1959 and 1960 to the production of wheat pursuant to the provisions 
of section 328 of the Food and Agriculture Act of 1962. Such portion 
of the support price for any feed grain included in the acreage 
diversion program as the Secretary determines desirable to assure 
that the benefits of the price support and diversion programs inure 
primarily to those producers who cooperate in reducing their acreages 
of feed grains shall be made available to producers through payments 
in kind. 
Such payments in kind shall be made on the number of 
bushels of such feed grain determined by multiplying the actual 
acreage of such feed grain planted on the farm for harvest by the 
adjusted average yield per acre. The base period used in determining 
such adjusted average yield shall be the same as that used for purposes 
of the acreage diversion program formulated under section 16(h) of 
the Soil Conservation and Domestic Allotment Act, as amended. The 
Secretary may make not to exceed 50 per centum of any payments 
hereunder to producers in advance of determination of performance. 
Such payments in kind shall be made through the issuance of nego-
tiable certificates which the Commodity Credit Corporation shall 
77 STAT. ] 
PUBLIC LAW 88-26-MAY 20, 1963 
45 
redeem for feed grains (such feed grains to be valued by the Secretary 
at not less than the current support price minus that part of the current 
support price made available through payments in kind, plus reason-
able carrying charges) and, notwithstanding any other provision of 
law, the Commodity Credit Corporation shall, in accordance with 
regulations prescribed by the Secretary, assist the producer in the 
marketing of such certificates. In the case of any certificate not 
presented for redemption within thirty days of the date oif its issuance, 
reasonable costs of storage and other carrying charges, as determined 
by the Secretary, for the period beginning thirty days after its issuance 
and ending with the date of its presentation for redemption shall be 
deducted from the value of the certificate. The Secretary shall pro-
vide for the sharing of such certificates among the producers on the 
farm on the basis oi their respective shares in the croj) produced on 
the farm with respect to which such certificates are issued, or the 
proceeds therefrom. 
If the operator of the farm elects to participate 
in the acreage diversion program, price support for feed grains 
included in the program shall be made available to the producers on 
such farm only if such producers divert from the jjroduction of such 
feed grains in accordance with the provisions of such program an acre-
age on the farm equal to the number of acres which such operator 
agrees to divert, and the agreement shall so provide." 
SEC. 3. Section 16 of the Soil Conservation and Domestic Allot- 
Acreage diver-
ment Act, as amended, is amended by adding the following new ^^°" programs. 
1 
,• 
' 
' 
J 
ts 
» 
49 Stat. 1151. 
subsection: 
le use SQOP. 
"(h) Notwithstanding any other provision of law— 
"(1) For the 1D64 crop and the 1&65 crop of feed grains, if 
the Secretary determines that the total supply of feed grains 
will, in the absence of an acreage diversion program, likely be 
excessive, taking into account the need for an adequate carryover 
to maintain reasonable and stable supplies and prices of feed 
grains and to meet any national emergency, he may formulate 
and carry out an acreage diversion program for feed grains, with-
out regard to provisions which would be applicable to the regular 
agricultural conservation program, under which, subject to such 
terms and conditions as the Secretary determines, conservation 
payments in amounts determined by the Secretary to be fair 
and reasonable shall be made to producers who divert acreage 
from the production of feed grains to an approved conservation 
use and increase their average acreage of cropland devoted in 
1959 and 1960 to designated soil-conserving crops or practices 
including summer fallow and idle land by an equal amount. 
Pay-
ments shall not be made in amounts in excess of 50 per centum 
of the estimated basic county support rate, including that part 
of the support price made available through payments in 
kind, on the normal production of the acreage diverted from the 
commodity on the farm based on its adjusted average yield per 
acre. Notwithstanding the foregoing provisions, the Secretary 
may permit such diverted acreage to be devoted to the produc-
tion of guar, sesame, safflower, sunflower, castor beans, mustard 
seed, and flax, if he determines that such crops are not in surplus 
supply and will not be in surplus supply if permitted to be 
grown on the diverted acreage, subject to the condition that 
payment with respect to diverted acreage devoted to any such 
crop shall be at a rate determined by the Secretary to be fair 
and reasonable, taking into consideration the use of such acreage 
for the production of such crops, but in no event shall the pay-
ment exceed one-half the rate which would otherwise be 
applicable if such acreage were devoted to conservation uses, 
46 
PUBLIC LAW 88.26-MAY 20, 1963 
[77 STAT. 
and no price support shall be made available for the production 
of any such crop on such diverted acreage. The base period 
for the purpose of determining the adjusted average yield in 
the case of payments with respect to the 1964 crop shall be the 
four-year period 1959^1962, and in the case of payments with 
respect to the 1965 crop shall be the tive-year period 1959-1963. 
•'Feed grains." 
Ths term 'feed grains' means corn, grain sorghums, barley, and, 
if for any crop the producer so requests for purposes of having 
acreage devoted to the production of wheat considered as devoted 
to the production of feed grains, pursuant to the provisions 
76 Stat. 631. 
of sectiou 328 of the Food and Agriculture Act of 1962, the tenn 
7 use 1334 
'feed grains" shall include oats and rye: Provided^ T^hat acreages 
of corn, grain sorghums, and barley shall not be planted in lieu 
of acreages of oats and rye: Provided fyrther. That the acreage 
devoted to the production of wheat shall not be considered as 
an acreage of feed grains for purposes of establishing the feed 
grain base acreage for the farm for subsequent crops. 
Such 
feed grain diversion program shall require the producer to take 
such measures as the Secretary may deem appropriate to keep 
such diverted acreage free from erosion, insects, weeds, and 
rodents. The acreage eligible for participation in the program 
shall be such acreage (not to exceed 50 per centum of the average 
acreage on the farm devoted to feed grains in the crop years 
1959 and 1960 or twenty-five acres, whichever is greater) as the 
Secretary determines necessary to achieve the acreage reduction 
goal for the crop. Payments shall be made in kind. 
The average 
acreage of wheat produced on the farm during the crop 
years 1959, 1960, and 1961, pui-suant to the exemption provided 
71 Stat. 477. 
Ill sectiou 335(f) of the Agricultural Adjustment Act of 1938, 
7 use 1335. 
prior to its repeal by the Food and Agriculture Act of 1962, in 
excess of the small farm base acreage for wheat established 
under section 335 of the Agricultural Adjustment Act of 1938, 
76 Stat. 621. 
as amended, shall be considered as an acreage of feed grains 
produced in the crop years of 1959 and 1960 for purposes of 
establishing the feed grain base acreage for the farm, and the 
rate of payment for diverting such wheat shall be an amount 
determined by the Secretary to be fair and reasonable in relation 
to the rates of payment for diverting feed grains. The Secretary 
may make such adjustments in acreage and yields as he deter-
mines necessary to correct for abnormal factors affecting pro-
duction, and to give due consideration to tillable acreage, crop-
rotation practices, types of soil, soil and water conservation meas-
ures, and topography. 
To the extent that a producer proves 
the actual acreages and yields for the farm, such acreages and 
yields shall be used in making determinations. 
Notwithstand-
ing any other provision of this subsection (Z) (1), the Secretary 
may, upon unanimous request of the State committee estab-
lished pursuant to section 8(b) of the Soil Conservation and 
52 Stat. 31 
Domestic Allotment Act, as amended, adjust the feed grain bases 
16 use 5 90h. 
foi" farms within any State or county to the extent he deter-
mines such adjustment to be necessary in order to establish fair 
and equitable feed grain bases for farms within such State or 
county. 
The Secretary may make not to exceed 50 per centum 
of any payments to producers in advance of determination of 
performance: Provided^ That in no event shall the Secretary in 
the crop years 1964 or 1965 make payments to any producers 
under this section 16(h) and under section 105(d) of the Agri-
Ante. p. 44. 
cultural Act of 1949, as amended, in excess of 20 per centum of 
the fair market value of any acreage involved. 
Notwithstanding 
77 STAT. ] 
PUBLIC LAW 88-26-MAY 20, 1963 
47 
any other provision of this subsection (h) (1), barley shall not 
be included in the program for a proaucer of malting barley 
exempted pursuant to section 105(d) of the Agricultural Act 
of 1949 who participates only with respect to corn and grain 
Ante, p. 44.. 
sorghums and does not knowingly devote an acreage on the farm 
to barley in excess of 110 per centum of the average acreage 
devoted on the farm to barley in 1959 and 1960. 
"(2) Notwithstanding any other provision of this subsection, 
not to exceed 1 per centum of the estimated total feed grain bases 
for all farms in a State for any year may be reserved from the feed 
grain bases established for farms in the State for apportionment 
to farms on which there were no acreages devoted to feed grains 
in the crop years 1959 and 1960 on the basis of the following 
factors: Suitability of the land for the production of feed grains, 
the past experience of the farm operator in the production of 
feed grains, the extent to which the farm oj^erator is dependent 
on income from farming for his livelihood, the production of feed 
grains on other farms owned, operated, or controlled by the farm 
operator, and such other factors as the Secretary determines should 
be considered for the purpose of establishing fair and equitable 
feed ^rain bases. An acreage equal to the feed grain base so 
established for each farm shall be deemed to have been devoted 
to feed grains on the farm in each of the crop years 1959 and 1960 
for purposes of this subsection except that producer's on such 
farm shall not be eligible for conservation payments for the first 
year for which the feed grain base is established. 
"(3) There are hereby authorized to be appropriated such 
amounts as may be necessary to enable the Secretary to carry out 
this section 16(h). 
" (4) The Secretary shall provide by regulations for the sharing 
of payments under this subsection among producers on the farm 
on a fair and equitable basis and in keeping with existing contracts. 
"(5) Payments in kind shall be made through the issuance of 
negotiable certificates which the Commodity Credit Corporation 
shall redeem for feed grains and, notwithstanding any other 
provision of law, the Commodity Credit Corporation shall, in 
accordance with regulations prescribed by the Secretary, assist 
the producer in the marketing of such certificates. 
In the case 
of any certificate not presented for redemption within thirty days 
of the date of its issuance, reasonable costs of storage and other 
carrying charges, as determined by the Secretary, for the period 
beginning thirt}^ days after its issuance and ending with the date 
of its presentation for redemption shall be deducted from the 
value of the certificate. 
Feed grains with which Commodity 
Credit Corporation redeems certificates pursuant to this para-
graph shall be valued at not less than the current support price, 
minus that part of the current support price made available 
through payments in kind, plus reasonable carrying charges. 
"(6) Xotwithstanding any other provision of law, the Secretarj^ 
may, by mutual agreement with the producer, terminate or modify 
any agreement previously entered into pursuant to this subsection 
if he determines such action necessary because of an emergency 
created by drouglit or other disaster, or in order to prevent or 
alleviate a shortage in the supply of feed grains.'' 
SEC. 4. Section 326 of the Food and Agriculture Act of 1962, as 
amended, is amended by deleting the word "and" immediately preced- 
76 stat. 63i. 
ing " ( g ) " and inserting immediately after " ( g ) " the following: "and 
I ^^^ ^^^'* 
(h)". 
Approved May 20, 1963, 12:40 p.m;