Date: 1981-12-15
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I have some information which will be. I hope. helpful to the Members In considering S.. 884. the Agriculture and Food Act of 1981: Without passage of new legislation. price support and production adjustment provisions of the 1977 Act for the major commodities will revert to permanent legislationthe 1949 Act for price support and 1938 Act for marketing quotas and acreage allotments. DAIRY Conference report Milk price support at not less than $13.10 per hundred pounds for fiscal 1982. For fiscal years 1983. 1984 and 1985. the minimums would be $13.25. $14.00 and $14.60 if surplus purchases during the year are projected at more than $1 billion. For any year in which purchases/are projected at less than $1 billion. the minimum would be 70 percent of parity. The support floor would rise to 75 percent of parity if projected surplus purchases are less than 4 billion pounds of milk in fiscal 1983. 3.5 billion In fiscal 1984. and 2.69 billion for fiscal 1985. Basic law Beginning January 1. support would range between 75 and 90 percent of parity dependIng on supply levels. adjusted annually. and beginning April 1983. semiannual adjustments would be required to maintain support af a minimum of 75 percent of parity as of such date. On January 1. support would rise to $13.49 per cwt.. costing an estimated $379 million more in fiscal year 1082 than if the support remained at $13.10 per cwt. WHEAT Conference report Wheat target prices at not less than $4.05 per bushel for the 1982 crop (compared with $3.81 for 1981). $4.30 for 1983. $4.45 for 1984 and $4.65 for 1985. Price support loan rates for the 198285 crops would be not less than $3.55 per bushel (compared with $3.20 for 1981). No acreage allotments would apply. Basic law Per recent legislation. a referendum would be conducted not later than December 31 to determine whether wheat producers are In favor of a marketing quota for the 1982 crop. Farm allotments must be determined regardless of the outcome of the referendum. If quotas are disapproved. the support loan rate would be 50 percent of parity (about $3.77 per bushel) for allotment *wheat. If quotas are approved by at least 156 of the producers voting.. prIc9 support on wheat used domestically for food would be at 65 to 90 percent of parity J$3.90 to $6.79 per bushel). a portion In the form of loans and the balance In- the form of certificate payments paid for by processors. Cash penalties would apply to wheat grown outside of allotments. -There would be no target prices or deficiency payments. I The cost of the wheat program for fiscal year 1983 would be about $491 to $1106 million higher than the conference provisons. CORN. Conference report Corn target prices at not les than $2.70 per bushel on the 1982 crop (compared with $2.40 for 1981). $2.86 for 1983. $3.03 for 1984 and $3.18 for 1985. Price support loan rates for corn would be not less than $2.55 per bushel in 108285 (compared with $2.40 In 1981). Basic law Price support through loans and purchases would be at 50 to 90 percent of parity ($2.73 to $4.91 per bushel) beginning with the 1982 crop. There would be no target prices or deficiency payments. If there Is anl acreage diversion In effect. the minimum price support Is 65 percent of parity. No allotments or marketing quotas are applicable. The cost of the feed grain program In fiscal year 1983 under .the reversion would exceed the cost of thle conference provisions by $208 million.