[Released July 25, 1961. Dated July 24, 1961]
Dear Mr. Chairman:
First, I wish to thank you for
your diligent and effective efforts in guiding the Agricultural Act of
1961 (S. 1643-H.R. 8230) through the Committee on Agriculture and Forestry
(the Committee on Agriculture). This bill, as approved by the Committee,
will substantially strengthen the laws designed to meet the problems which
beset American agriculture. Although it omits some of the provisions which
I recommended, the bill nevertheless is a very important and constructive
piece of farm legislation.
I wish to emphasize especially
the need for prompt approval of programs for the 1962 crops of wheat and
feed grains along the general lines included in these bills.
These programs will accomplish
the following results:
(1) Increase the income of producers
of these grains above that which they would receive under existing law
- probably in the neighborhood of $600 to $800 million in the 1962 crop
year;
(2) Reduce the ultimate costs
to the Government resulting from the 1962 crops to a point far below the
costs of the programs for these grains which would be required under existing
law - probably about $750 million to $1 billion;
(3) Prevent a further build-up
and achieve a moderate reduction in the excessive stocks of these grains
now on hand; and
(4) Assure the continued availability
of abundant stocks of these grains to meet the needs of consumers at reasonable
and stable prices, and to provide adequate reserves for peacetime and emergency
purposes.
Early action on the wheat program
is especially needed so that production can be reduced, and wheat carryovers
decreased substantially in 1962-63, following the pattern being set by
the Emergency Feed Grain Program this year.
Extension of the 1961 Emergency
Feed Grain Program is equally important. Corn stocks are expected to be
reduced by 400 million bushels in the coming year. Total feed grain stocks
will be reduced by about 15 percent - the first reduction in nearly a decade.
But feed grains on hand when the 1962 harvest begins will still be equivalent
to around 2,500 million bushels of corn, higher than at any time except
1960 and 1961, and far above our needs for reserve stocks.
If the Emergency Feed Grain
Program is not extended, acreage and production in 1962 would increase
to pre-1961 levels. Stocks of grain and costs to the Government would increase
once more. Farm income would decline, both because of lower livestock prices
which inevitably follow excessive grain supplies, and because the price
support levels effective in 1961 could not be justified in 1962 without
substantial adjustment of feed grain acreage and production.
The feed grain program should
be passed now - not postponed until 1962. This will avoid the inconvenience
to growers which results from emergency actions, will permit producers
of fall-seeded barley to participate, and will provide time for a thorough
review of administrative procedures.
With every good wish, I am
Sincerely,
JOHN F. KENNEDY