no producer shall be deemed to have exceeded a farm acreage for wheat if the entire amount of the farm marketing excess of wheat is delivered to the Secretary or stored in accordance with applicable regulations to avoid or postpone payment of the penalty: And provided further, That no producer shall be deemed to have exceeded a farm acreage allotment for any crop of wheat or feed grains if the farm is exempt from the farm marketing quota for such crop under section 335, 360f, or 360k. The producer on any farm for which a farm acreage allotment is established pursuant to section 360d (c) (2) (C) shall not be eligible for payments hereunder. The Secretary shall provide for the sharing of payment among producers on the farm on a fair and equitable basis. Payments may be made in cash or in feed grains.

"(c) The Secretary may provide for adjusting any payment on account of failure to comply with the terms and conditions of the program formulated under subsection (b) of this section.

"(d) Not to exceed 50 per centum of any payment to producers under subsection (b) of this section may be made in advance of determination of perform

ance.

"(e) The Secretary may permit the diverted acreage to be devoted to the production of guar, sesame, safflower, sunflower, castor beans, other annual field crops for which price support is not made available, and flax, when 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 the rate determined by the Secretary to be fair and reasonable, taking into consideration the use of such acreage for the production of such crops: Provided, That in no event shall the payment exceed one-half the rate which would otherwise be applicable if such acreage were devoted to conservation uses and no price support shall be made available for the production of any such crop on such diverted acreage.

"(f) The program formulated pursuant to subsection (b) of this section may include such terms and conditions, in addition to those specifically provided for herein, as the Secretary determines are desirable to effectuate the purposes of this section.

"(g) The Secretary is authorized to promulgate such regulations as may be desirable to carry out the provisions of this section.

"(h) The Commodity Credit Corporation is authorized to utilize its capital funds and other assets for the purpose of making the payments authorized in this section and to pay administrative expenses necessary in carrying out this section during the period ending June 30, 1963. There is authorized to be appropriated such amounts as may be necessary thereafter to pay such administrative expenses.

"(i) Notwithstanding any other provision of law, performance rendered in

good faith in reliance upon action or advice of an authorized representative of the Secretary may be accepted as meeting the requirements of this section, or of subsections (c) and (d) of section 16 of the Soil Conservation and Domestic Allotment Act, as amended, and payment may be made therefor in accordance with such action or advice to the extent the Secretary deems is desirable in order to provide fair and equitable treatment.

"Deficit Areas

"Sec. 360k. Notwithstanding any other provision of this part, in any area (county, State, or region) in which the Secretary determines (1) that the application of the provisions of this Act would result in an average loss of 25 per centum gross income to producers in such area, would increase by 25 per centum the price of feed grains in such area relative to other areas, and would disrupt normal farming practices in such area, based on 19591960 operations, and (2) that the exception provided by this section would not impair the effective operation of this Act, he may provide in accordance with such regulations as he may prescribe that no farm marketing quota (that is, production on the acreage allotment) for any crop of feed grains shall be applicable to any farm in such area, if the acreage of such crop of feed grains does not exceed the farm base acreage determined for the farm. If the Secretary so provides, (i) for the purposes of section 360h, the farm acreage allotment for such crop of feed grains shall be deemed to be the farm base acreage, (ii) the land-use provisions of section 360j shall be inapplicable to the farm, (iii) such crop of feed grains shall not be eligible for price support, and (iv) the producers on such farm shall not be eligible to vote in any referendum on marketing quotas for such crop.

"Authority To Exempt Malting Barley

"Sec. 3601. Notwithstanding any other provision of this part, if with respect to any crop of barley the Secretary finds that there is not likely to be production of a sufficient quantity of malting barley to satisfy the demand therefor, subject to such terms and conditions as the Secretary shall prescribe, the farm marketing quota or farm acreage allotment for any crop of feed grains shall not be applicable to malting barley on any farm, if (i) the operator elects in writing on a form and within the time prescribed by the Secretary to have malting barley exempt therefrom, (ii) such operator has previously produced a malting variety of barley, plants barley only of an acceptable malting variety for harvest during the crop year, and does not knowingly devote during such crop year an acreage on the farm to barley in excess of 110 per centum of the acreage devoted on the farm to barley in 1959 and 1960, or such later two-year period determined by the Secretary to be representative, and (iii) the farm base acreage and the farm acreage allotment for such crop of feed grains are adjusted downward by such amount as the Secre

tary determines appropriate to reflect the exclusion of such barley from the farm acreage allotment."

Sec. 302. Section 2 of the Agricultural Adjustment Act of 1938, as amended, is hereby amended by striking out 'and' immediately following the last semicolon, by changing the period at the end thereof to a semicolon, and by adding immediately following such new semicolon the following: "and to reduce the annual carryover of feed grains, to stabilize the supply of feed grains, and to provide for an adequate and balanced flow of feed grains so that the prices of feed grains are fair to producers and consumers and the total supply of feed grains available for utilization for livestock feed is maintained at a level which is consistent with the production of the quantities of livestock and the products thereof that will be consumed and exported at prices which are fair to producers and con

sumers."

Sec. 303. Section 301 of the Agricultural Adjustment Act of 1938, as amended, is hereby amended as follows:

(1) Subsection (a) is amended by adding at the end thereof the followlowing new items:

"(10) The term 'feed grains' means corn, grain sorghums, and barley.

"(11) The term 'acreage of feed grains' means acreage of feed grains planted for harvest (including selfseeded feed grains), but excluding the acreage of feed grains harvested for silage not in excess of the acreage of feed grains harvested for silage during the base period as defined in section 360d (d) if the operator of the farm elects in writing to have such feed grains harvested for silage excluded. The review provisions applicable to marketing quotas in sections 361-367 shall apply to the determination of the acreage of silage exempt under this subsection.

"(12) The term 'crop' as applied to 'feed grains' means all of the crops of the agricultural commodities which comprise feed grains and which are produced for harvest in the same calendar year."

(2) Subsection (b) (6) (A) is amended to read as follows:

"(6) (A) 'Market', in the case of cotton, rice, tobacco, wheat, and feed grains, means to dispose of, in raw or processed form, by voluntary or involuntary sale, barter, or exchange, or by gift inter vivos, and, in the case of of wheat and feed grains, by feeding (in any form) to poultry or livestock which, or the products of which, are sold, bartered, or exchanged, or to be so disposed of."

(3) Subsection (b) (7) is amended to read as follows:

"(7) 'Marketing year' means, in the case of the following commodities, the period beginning on the first and ending with the second date specified below:

"Barley, July 1-June 30;

"Corn, October 1-September 30;
"Cotton, August 1-July 31;

"Grain sorghums, July 1-June 30;

"Peanuts, August 1-July 31; "Rice, August 1-July 31; "Tobacco (flue-cured), July 1June 30;

"Tobacco (other than flue-cured), October 1-September 30;

"Wheat, July 1–June 30. "Marketing year' means, in the case of 'feed grains', the marketing years for the agricultural commodities comprising the feed grains."

Sec. 304. Sections 361, 362, and 363 of the Agricultural Adjustment Act of 1938, as amended, are hereby amended as follows:

(1) Section 361 is amended by adding "feed grains." after "wheat,", and by changing the period at the end of the section to a comma and adding the following: "and to the review of land-use penalties assessed pursuant to sections 339 and 360j.”

(2) Section 362 is amended by adding at the end thereof the following: "Notice of the land-use penalty assessed pursuant to section 339 or 360j shall be mailed to the farmer."

(3) Section 363 is amended by adding "or land-use penalty" after the word "quota" wherever it appears in such section.

Sec. 305. Section 372 of the Agricultural Adjustment Act of 1938, as amended, is hereby amended by adding "feed grains," after "wheat," in subsection (a) thereof.

Sec. 306. Sections 373, 374, and 375 of the Agricultural Adjustment Act of 1938, as amended, are hereby amended by deleting "corn" wherever it appears and by substituting in lieu thereof "feed grains"; and subsection (b) of section 375 of the Agricultural Adjustment Act of 1938, as amended, is further amended by striking out the period at the end of the sentence and inserting at the end thereof the following: "or to effectuate the provisions thereof."

Sec. 307. Section 385 of the Agricultural Adjustment Act of 1938, as amended, is hereby amended by inserting in the first sentence after "Soil Conservation Act payment," the following: "payment under section 360j.".

Sec. 308. The amendments to the Agricultural Adjustment Act of 1938, as amended, made by sections 301 through 307 of this Act shall be in effect only with respect to programs applicable to crops planted for harvest in the calendar year 1963 or any subsequent year and to the marketing years beginning in the calendar year 1963 or any subsequent year.

Sec. 309. The Agricultural Act of 1949, as amended, is amended as follows:

(1) By amending section 105 by deleting subsections (a) and (b) and substituting the following:

"(a) Notwithstanding the provisions of section 101 of this Act, beginning with the 1963 crop

(1) if marketing quotas for any crop of corn, grain sorghums, and barley are not disapproved by producers, price support for corn of such crop shall be made available at such level not less than 65 per centum or

more than 90 per centum of the parity price therefor as the Secretary determines appropriate after consideration of (i) the factors specified in section 401 b) of this Act, (ii) the supplies of feed grains that would be available during the marketing year at prices approximating the support prices of feed grains, and (iii) consumption goals during the marketing year for livestock and livestock products, taking into consideration consumption under special governmental programs, and imports and exports of livestock and livestock products.

"(2) if marketing quotas for any crop of corn, grain sorghums, and barley are disapproved by producers, price support for corn of such crop shall be at such level not to exceed 50 per centum of the parity price therefor as the Secretary determines appropriate after consideration of the factors specified in section 401(b).

“(3) price support for each crop of barley and grain sorghums, respectively, shall be at such level as the Secretary determines is fair and reasonable in relation to the level at which price support is made available for corn, taking into consideration the feeding value of such feed grain in relation to corn and the other factors specified in section 401(b) of this Act.

"(4) price support for corn, grain sorghums, and barley shall be made available only to cooperators.

“(5) if marketing quotas are in effect for the crop of corn, grain sorghums, and barley, a 'cooperator' with respect to any such feed grain produced on a farm shall be a producer who (i) does not knowingly exceed (A) the farm acreage allotment for feed grains or any other commodity on the farm or (B) except as the Secretary may by regulation prescribe, the farm acreage allotment on any other farm for any commodity in which he has an interest as a producer, and (ii) complies with the land-use requirements of section 360j of the Agricultural Adjustment Act of 1938, as amended, to the extent prescribed by the Secretary. If marketing quotas are not in effect for the crop of corn, grain sorghums, and barley, a 'cooperator' with respect to any crop of corn, grain sorghums, and barley produced on a farm shall be a producer who does not knowingly exceed the farm acreage allotment for feed grains. No producer shall be deemed to have exceeded a farm acreage allotment for wheat if the entire amount of the farm marketing excess of wheat is delivered to the Secretary or stored in accordance with applicable regulations to avoid or postpone payment of the penalty, but the producer shall not be eligible to receive price support on such farm marketing excess. No producer shall be deemed to have exceeded the farm acreage allotment for wheat on the farm, or the farm acreage allotment for wheat or feed grains on any other farm, if such farm is exempt from the farm marketing quota for such crop

under section 335, 360f, or 360k of the Agricultural Adjustment Act of 1938, as amended.”

(2) By amending section 105 by redesignating subsection (c) thereof as subsection (b).

(3) By amending section 401 by inding serting after the comma before “(2)" the following: "(2) the income needed to provide a farm operator and his family with a return for his labor and investment equal to the return earned by comparable resources in other occupations”, and by renumbering (2), (3), (4), (5), (6), (7), and (8) as (3), (4), (5), (6), (7), (8), and (9), respectively.

(4) By adding at the end of section 407 the following: “Notwithstanding any other provision hereof, (i) if a marketing quota for feed grains for any marketing year is disapproved by producers, the Commodity Credit Corporation may sell for unrestricted use from its stocks during such marketing year not to exceed ten million tons, or the equivalent in bushels, of feed grains at not less than 2 per centum above the current support price for such commodity, plus reasonable carrying charges, (ii) if a marketing quota for wheat for any marketing year is disapproved by producers, the Commodity Credit Corporation may sell for unrestricted use from its stocks during the marketing year not to erceed two hundred million bushels of wheat at not less than 2 per centum above the current support price for such commodity, plus reasonable carrying charges.”

On page 34, beginning with the period in line 13, strike out through the period in line 18, as follows: "And provided further, That no producer shall be deemed to have exceeded a farm acreage allotment for any crop of wheat if the farm is exempt from the farm marketing quota for such crop under the small-farm exemption in section 335." and insert a colon and the following: And provided further, That no producer shall be deemed to have exceeded a farm acreage allotment for any crop of wheat or feed grains if the farm is exempt from the farm marketing quota for such crop under section 335, 360f, or 360k.

On page 45, beginning in line 2, with the word "No", strike out through line 6. as follows: "No producer shall be deemed to have exceeded the farm acreage allotment for wheat on any other farm, if such other farm is exempt from the farm marketing quota for such crop under the small-farm exemption in section 335." and insert the following: No producer shall be deemed to have exceeded the farm acreage allotment for feed grains on the farm, or the farm acreage allotment for wheat or feed grains on any other farm, if such farm is exempt from the farm marketing quota for such crop under section 335, 3601, or 360k.

Beginning on page 53, in line 24, with the word "No", strike out all through line 3 on page 54, as follows: "No producer shall be deemed to have exceeded the farm acreage allotment for wheat on

any other farm, if such other farm is exempt from the farm marketing quota for such crop under the small-farm exemption in section 335." and insert the following: No producer shall be deemed to have exceeded the farm acreage allotment for feed grains on the farm, or the farm acreage allotment for wheat or feed grains on any other farm, if such farm is exempt from the farm marketing quota for such crop under section 335, 360f, or 360k.

It was determined in (Yeas______ 46 the affirmative_________ Nays______ 37 The yeas and nays having been heretofore ordered.

Senators who voted in the affirmative

So the amendments were agreed to. On motion by Mr. ELLENDER to reconsider the vote agreeing to his amendments, as amended,

On motion by Mr. HUMPHREY, The motion to reconsider was laid on the table.

On motion by Mr. PROXMIRE to further amend the bill by inserting on page 66, after line 6, by inserting a new subtitle on dairy income improvement program, On motion by Mr. PROX MIRE, The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to his amendment.

COMMITTEE AUTHORIZED TO SIT The Subcommittee on Investigations of the Committee on Government Operations was authorized to sit tomorrow during the session of the Senate, on the request of Mr. MANSFIELD.

ADJOURNMENT

On motion by Mr. HARTKE, at 7 o'clock and 15 minutes p.m.,

The Senate, under its order of Tuesday last, adjourned until 10 o'clock a.m. tomorrow.

FRIDAY, MAY 25, 1962

Mr. LEE METCALF, from the State of Montana, called the Senate to order at 10 o'clock a.m., and Rev. Thomas L. Smith, of Duluth, Minn., offered prayer. APPOINTMENT OF ACTING PRESIDENT PRO TEMPORE

The Secretary read the following communication from the President pro tempore:

U.S. SENATE,

PRESIDENT PRO TEMPORE, Washington, D.C., May 25, 1962.

To the Senate:

Being temporarily absent from the Senate, I appoint Hon. LEE METCALF, a Senator from the State of Montana, to perform the duties of the Chair during my absence.

CARL HAYDEN, President pro tempore.

Mr. METCALF thereupon took the chair.

THE JOURNAL

On motion by Mr. HUMPHREY, and by unanimous consent,

The reading of the Journal of the proceedings of Thursday, May 24, 1962, was dispensed with.

COMMITTEE AUTHORIZED TO SIT The Subcommittee on Constitutional Amendments of the Committee on the Judiciary was authorized to sit today during the session of the Senate, on the request of Mr. HUMPHREY.

MESSAGE FROM THE HOUSE

A message from the House of Representatives, by Mr. Bartlett, one of its clerks:

Mr. President: The House of Representatives has passed the following bill and joint resolution, each with an amendment, in which it requests the concurrence of the Senate:

S. 3157. An act to repeal subsection (a) of section 8 of the Public Buildings Act of 1959, limiting the area in the District of Columbia within which sites for public buildings may be acquired.

S.J. Res. 151. Joint resolution permitting the Secretary of the Interior to continue to deliver water to lands in the third division, Riverton Federal reclamation project, Wyoming.

The House has passed the bill (H.R. 10937) to amend the act providing for the economic and social development in the Ryukyu Islands, in which it requests the concurrence of the Senate.

HOUSE BILL REFERRED

The bill H.R. 10937, this day received from the House of Representatives for concurrence, was read the first and second times by unanimous consent and referred to the Committee on Armed Services.

CONCESSION CONTRACT IN A NATIONAL PARK

The ACTING PRESIDENT pro tempore laid before the Senate a communi

cation from the Assistant Secretary of the Interior, transmitting, pursuant to law, a proposed concession contract with Lumadrama, Inc., which, when executed by the Director of the National Park Service, will authorize the corporation to provide and conduct for the public within Independence National Historical Park a program consisting of an artistic blending of the spoken word, music, and sound and lighting effects for the dramatizing, at night, of the historic surroundings and events for which they are preserved, for a period of 15 years from March 1, 1962; which, with the accompanying papers, was referred to the Committee on Interior and Insular Affairs.

PETITION AND MEMORIALS

The ACTING PRESIDENT pro tempore laid before the Senate the following petitions, etc., which were referred as indicated:

A memorial of the Veterans of Foreign Wars, Department of Hawaii, in convention at Honolulu, Hawaii, remonstrating against any reduction in the National Guard; to the Committee on Armed Services.

A memorial of the City Council of Hidden Hills, Calif., remonstrating against any proposed Federal tax on interest from bonds issued by State and local governments; to the Committee on Finance.

A resolution of the city of Brownsville, Tex., favoring the work of the Boy Scouts and proclaiming the month of June 1962 as Boy Scout Recognition Month; which was referred to the Committee on the Judiciary.

REPORTS OF COMMITTEES

Mr. SPARKMAN, from the Committee on Banking and Currency, to whom was referred the bill (S. 2876) to extend the authority to insure mortgages under sections 809 and 810 of the National Housing Act, and to extend the coverage of section 810 to include persons employed at or in connection with an installation of the National Aeronautics and Space Administration or the Atomic Energy Commission, reported it without amendment and submitted a report (No. 1533) thereon.

Mr. CANNON, from the Committee on Armed Services, to whom was referred the bill (H.R. 7913) to amend title 10, United States Code, to bring the number of cadets at the U.S. Military Academy and the U.S. Air Force Academy up to full strength, reported it with amendments and submitted a report (No. 1534) thereon.

INTRODUCTION OF BILLS AND A JOINT
RESOLUTION

Bills and a join resolution were introduced, severally read the first and second times by unanimous consent, and referred as follows:

By Mr. BOGGS:

S. 3346. A bill for the relief of Harold H. Senger; to the Committee on the Judicary.

By Mr. YARBOROUGH:

S. 3347. A bill authorizing the reconstruction of the Lake Kemp Dam on the Wichita River, Tex., in the interest of flood control and allied purposes; to the Committee on Public Works.

By Mr. CAPEHART:

S. 3348. A bill to amend title 38, United States Code, to provide for the payment of pensions to veterans of World War I; to the Committee on Finance.

By Mr. BEALL:

S. 3349. A bill to authorize the burial of the remains of Matthew A. Henson in the Arlington National Cemetery, Va.; to the Committee on Interior and Insular Affairs.

S. 3350. A bill to amend the act of August 7, 1946, relating to the District of Columbia Hospital Center to extend the time during which appropriations may be made for the purposes of that act; to the Committee on the District of Columbia.

By Mr. BEALL:

S.J. Res. 191. Joint resolution to designate September 17, 1962, as Antietam Day, and for other purposes; to the Committee on the Judiciary.

COMMITTEE TO REPRESENT THE SENATE AT DEDICATION OF JUSTIN SMITH MORRILL HOMESTEAD IN VERMONT AS A NATIONAL HISTORIC LANDMARK

Mr. AIKEN (for himself, Mr. COTTON, and Mr. PROUTY) submitted the following resolution (S. Res. 347); which was referred to the Committee on the Judiciary:

Whereas President John F. Kennedy on request of a joint resolution of the Congress, did proclaim, August 25, 1961, that it is fitting and proper to commemorate the centennial of the First Morrill Act, approved by President Abraham Lincoln, July 2, 1862, establishing the land grant system of colleges and universities; and

Whereas the six Governors of the New England States did jointly proclaim, September 11, 1961, endorsement of the centennial observance during the academic year 1961-1962 and the calendar year 1962 as the Morrill Land-Grant Centennial Year in New England; and

Whereas Governor R. Ray Keyser, Junior, of Vermont, did urge, by proclamation, September 12, 1961, that the citizens of Vermont honor Justin Smith Morrill; and

Whereas by resolutions and acts of the 1959 and 1961 sessions of the Vermont Legislature, a committee was appointed and funds appropriated to plan and effect suitable statewide observance of the centennial; and

Whereas citizens of Vermont and elsewhere have established the Justin Smith Morrill Foundation to restore and preserve the Morrill Homestead; and

Whereas the Vermont Centennial Committee has chosen September 9, September 9, 1962, for the day of dedication of the Justin Smith Morrill Homestead, located

on the highway bearing his name, in Strafford. Vermont, as a national historic landmark, registered by the United States Department of the Interior: Be it

Resolved, That the Senate of the United States of America, in recognition of the long and distinguished public services of Senator Morrill, requests the President of the Senate to appoint three of its Members to represent them at these dedication ceremonies; and further Resolved, That a copy of this resolution, when approved, be sent to each of those named therein.

FOOD AND AGRICULTURE ACT OF 1962 On motion by Mr. HUMPHREY, The Senate resumed the consideration of its unfinished business, viz, the bill (S. 3225) to improve and protect farm income, to reduce costs of farm programs to the Federal Government, to reduce the Federal Government's excessive stocks of agricultural commodities, to maintain reasonable and stable prices of agricultural commodities and products to consumers, to provide adequate supplies of agricultural commodities for domestic and foreign needs, to conserve natural resources, and for other purposes.

Pending debate,

FORT SHAW DIVISION OF SUN RIVER PROJECT, MONTANA

The ACTING PRESIDENT pro tempore laid before the Senate the amendment heretofore received from the House of Representatives for concurrence to the bill (S. 2132) to approve the revised June 1957 reclassification of land of the Fort Shaw division of the Sun River project, Montana, and to authorize the modification of the repayment contract with Fort Shaw Irrigation District.

The Senate proceeded to consider the said amendment; and

On motion by Mr. HUMPHREY, Resolved. That the Senate agree thereto.

Ordered, That the Secretary notify the House of Representatives thereof.

EXECUTIVE SESSION

On motion by Mr. HUMPHREY, The Senate proceeded to the consideration of executive business; and after the consideration of executive business,

LEGISLATIVE SESSION

The Senate resumed its legislative session.

FOOD AND AGriculture acT OF 1962 The Senate resumed the consideration of its unfinished business, viz, the bill (S. 3225) to improve and protect farm income, to reduce costs of farm reduce the Federal Government's excesprograms to the Federal Government, to sive stocks of agricultural commodities, to maintain reasonable and stable prices

of agricultural commodities and products to consumers, to provide adequate supplies of agricultural commodities for domestic and foreign needs, to conserve natural resources, and for other purposes. The question being on agreeing to the amendment proposed by Mr. PROXMIRE, inserting a new subtitle on page 66, after line 6,

Mr. PROXMIRE, by unanimous consent, modified his proposed amendment. After debate.

The question being taken on agreeing to the amendment, as modified, proposed by Mr. PROXMIRE, VÍZ, on page 66, after line 6, insert the following: Subtitle C-DAIRY INCOME IMPROVEMENT PROGRAM

Legislative Finding

Sec. 330. Milk is a basic source of the Nation's food supply. Dairy farming, which is carried on in every State of the Nation and is an important source of farm income, constitutes a rital segment of the agricultural and national economy. It is in the national interest that there be adequate and balanced supplies of milk. Surpluses of milk result in low prices to producers and impair their purchasing power; shortages result in unreasonably high prices to consumers and the loss of markets for producers. Recurring shortages and surpluses cause undesirable fluctuations in prices to producers and consumers, unstable farm income, and disorderly marketing practices. The general welfare requires that interstate and foreign commerce be protected from the harmful effects of tmbalances in the supply of milk and dairy products. All marketings of milk and dairy products are either in the current of interstate and foreign commerce or directly affect such commerce. The intrastate marketing of milk and dairy products is in competition with the marketing of milk and dairy products in interstate and foreign commerce. Milk and dairy products which enter directly into the current of interstate and foreign commerce cannot be effectively regulated without regulating that part marketed within the State of production. The conditions affecting the production and marketing of milk and dairy products are such that, without Federal assistance, farmers individually or in cooperation cannot maintain a flow of an adequate and balanced supply of milk in interstate and foreign commerce at prices fair and reasonable to producers. General Definitions

Sec. 331. For the purposes of this subtitle

(a) The term "interstate commerce and foreign commerce" includes the movement of milk and dairy products in commerce between any State or the District of Columbia and any place outside thereof, or within the District of Columbia.

(b) The term “affect interstate and foreign commerce" means, among other things, to burden, obstruct, impede, or otherwise affect interstate and foreign commerce, the free and orderly flow thereof, or the production, storing, processing, marketing, or transportation of milk and dairy products for or in such commerce or after transportation therein.

(c) The term "Secretary" means the Secretary of Agriculture.

(d) The term "milk" means bovine milk, including any classification, type, or grade thereof.

(e) "Producer" means any person who is engaged in the production of milk or butterfat for market.

(f) The term "person" means an individual, partnership, firm, joint-stock company, corporation, association, trust, estate, or any other business entity.

(g) "First processor" means (1) any person, other than a retail store or establishment serving food for consumption on the premises, who receives, purchases, or acquires milk or dairy products from a milk producer for disposition in any form to others, and (2) any producer who disposes of milk or dairy products directly to consumers, retail stores, and establishments serving food on the premises.

Sec. 332. In order to afford producers the opportunity and the means by which they can (i) on a compensated basis voluntarily adjust their marketings of milk during the marketing years ending March 31, 1963 and 1964, more nearly to equal demand, thus increasing their net returns and reducing Government purchases under its price support program, and (ii) receive prices for such marketing years at rates determined pursuant to section 337 of this Act for milk marketed within their normal marketing levels but receive prices which have been adjusted, through surplus marketing fees, to reflect a lower level of price support for milk marketed in excess of their normal marketing levels, thus stabilizing dairy farm income for milk marketed within normal marketing levels while reducing costs to the Government in supporting the price of milk marketed in excess of normal marketing levels and discouraging overexpansion in the production and marketing of milk, the Secretary is hereby authorized and directed, through the Commodity Credit Corporation and other means available to him, to carry out for the marketing years ending March 31, 1963 and 1964, a dairy income improvement program as set forth in the following sections of this subtitle.

Surplus Reduction Payments

Sec. 333. The Commodity Credit Corporation is hereby authorized to make surplus reduction payments to producers in the continental United States, excluding Alaska, who agree to reduce, during any one or more quarterly marketing periods of the marketing years, ending March 31, 1963 and 1964, their marketings to a level not (i) less than 10 per centum, or (ii) more than the larger of 25 per centum, or seven thousand five hundred pounds of milk below their normal marketing levels established pursuant to section 334 of this Act for such quarterly marketing period or periods: Provided, That surplus reduction payments shall be made to a producer only with respect to the reduction in his marketings which are below the lower of (i) the producer's normal marketing level, or (ii) the level of marketings which the Secretary estimates would be marketed by the producer during the period covered by his agreement with Commodity Credit Corporation if he con

tinued marketing at the rate of his marketings when he entered into the agreement, adjusted for seasonal variations: And provided further, That Commodity Credit Corporation shall, to the maximum extent practicable, limit such agreements so as not to effect reductions in excess of 10 per centum of the total normal marketing levels for the marketing year established for producers within any one dairy district. For this purpose, the Secretary shall divide the continental United States, excluding Alaska, into fifteen dairy districts each having therein approximately the same proportion of total milk production. Commodity Credit Corporation may utilize surplus marketing fees paid to it under this Act, together with any other funds available to it for the purpose of price support, for the making of surplus reduction payments pursuant to such agreements. Such payments (1) shall not exceed $2.80 per hundredweight of milk, basis 3.82 per centum butterfat content, or exceed such rates as the Secretary determines will effectuate voluntary reduction in marketings by producers, and (ii) shall be less than the cost of acquiring such milk in the form of dairy products had such milk been marketed. A producer who fails to reduce his marketings to the extent required by such agreement shall be entitled to the surplus reduction payment on the quantity by which he actually reduced his marketings, but the amount of such payment shall be reduced by an amount equal to 20 per centum of what would have been the payment on the quantity of milk which he failed to reduce. Agreements entered into hereunder may contain such terms and conditions as the Secretary determines necessary to effectuate the purposes of the dairy income improvement program.

Normal marketing level

Sec. 334. If producers by referendum approve of the institution of a program as provided in this subtitle, the Secretary shall establish a normal marketing level for the marketing years ending March 31, 1963 and 1964, for each producer in the continental United States, excluding Alaska, who on the effective date of this Act was engaged in the production of milk for market. Such normal marketing level shall be the number of pounds of milk, or the number of pounds of milk fat, or such units of dairy products as the Secretary may deem appropriate for the administration of this subtitle, which the producer or his predecessor disposed of in commercial channels during the calendar year 1961: Provided, however, That in no event shall a normal marketing level be established for less than fifteen thousand pounds of milk. The Secretary shall make such adjustments in a normal marketing level established hereunder as he deems necessary for abnormal conditions affecting production or marketing including but not limited to flood, drought, disease of herd, personal health, and the fact that the producer may have commenced production and marketing after January 1,

1961. A producer's normal marketing level for the marketing year shall be apportioned by the Secretary among quarterly marketing periods thereof in accordance with the producer's marketing pattern in 1961, subject to such adjustments as the Secretary determines necessary to enable the producer to carry out his herd management plans for the marketing year. The quantity thus apportioned to a quarterly marketing period shall be the producer's normal marketing level for such period.

Sec. 335. The Secretary shall prescribe such conversion factors as he determines necessary for use in determining the quantity of milk marketed by producers who market their milk in the form of farm-separated cream, butterfat, or other dairy products.

Sec. 336. The quantity of milk reduced by a producer pursuant to his agreement under this subtitle shall be considered as having been produced and marketed by him for the purpose of determining his production of marketing history under any farm program in which such history may become a factor. A producer may, to such extent and subject to such terms and conditions as the Secretary may prescribe, transfer his normal marketing level, or any part thereof, to any other producer or prospective new producer who agrees to utilize such base for the disposition in commercial channels of milk, butterfat, or dairy products, produced in the same State as that in which the transferor engaged in production, or any State adjacent thereto. A producer who moves from one area to another and there engages in the production and marketing of milk may take with him all or any portion of his normal marketing level. The Secretary may utilize funds available for purchase or loans on dairy products under the price support program to purchase and cancel bases at a price not exceeding the amount of surplus reduction payments which Commodity Credit Corporation would make for an equal reduction in marketings.

Producer referendum and price support levels

Sec. 337. Not later than February 1, 1963, the Secretary shall conduct a referendum by secret ballot, of producers who during the calendar year 1961 marketed not less than fifteen thousand pounds of milk to determine whether producers approve the institution of a dairy income improvement program for the marketing years ending March 31, 1963 and 1964. Producers shall be deemed to approve such a program if the Secretary determines that two-thirds of the producers who voted in the referendum or that producers who voted in such referendum and who marketed not les than two-thirds of the total quantity of milk which was marketed during the marketing year ending March 31, 1962, by all producers who voted in such referendum approve the institution of a dairy income improvement program. If producers approve a dairy income improvement program, the level of price