GENERAL FARM PROGRAM 11 



endum within 30 days after it is held and if more than one-third of the farmers 

 voting in the referendum oppose marketing quotas, the Secretary is also required 

 to proclaim that marketing quotas will not be in effect for the crop produced in 

 the year following the year in which such referendum is held. If as many as two- 

 thirds of those v'oting in the referendum approve ciuotas, no referendiun is required 

 for the second and third years of the three-year period (sec. 358 (b)). 



B. National acreage allotment 



1. When determined. — Although the act does not specify the exact date on which 

 the national marketing quota must be converted to a national acreage allotment, 

 it was apparently intended that such allotment would be determined at the same 

 time the national marketing quota is proclaimed, which is between July 1 and 

 December 1. 



2. State acreage allotments. — The national acreage allotment is required to be 

 apportioned among States on the basis of the average acreage of peanuts 

 harvested for nuts in the 5 years preceding the year in which the national acreage 

 allotment is determined, with adjustments for trends, abnormal conditions of 

 production, and the State acreage allotment for the crop immediately preceding 

 the crop for which the allotment is established. The State acreage allotment is 

 required to be not less than the State acreage allotment established for the 19-il 

 crop. The acreage allotment for each State during the second year and third 

 year of any 3-year period during which marketing quotas are in eflfect is to be 

 increased above or decreased below the allotment for the State for the preceding 

 year by the same percentage as the national marketing quota is increased above 

 or decreased below the national marketing quota for the preceding year (sec. 



358 (c)). 



S. Farm acreage allotments. — The State acreage allotment is recjuired to be 

 apportioned among farms in the State on which peanuts were grown in any of 

 the 3 years preceding the year for which the allotment is determined. Such 

 apportionment is to be made on the basis of tillable acreage available for the 

 production of peanuts and the past acreage of peanuts on the farm, taking into 

 consideration the acreage allotments established for the farm under previous 

 adjustment and conservation programs. Any acreage harvested in excess of the 

 farm acreage allotment is not to be considered in establishing the farm acreage 

 allotment until the third year following the year in which such excess acreage was 

 harvested and the total increases made in all farm allotments in any year based on 

 such excess acreage must not exceed 2 percent of the national acreage allotment 

 for such year. In addition, not less than 50 percent of the increases based on 

 such excess acreage must be distributed to "new" farms -* (sec. 358 (d)). 



C. Farm marketing quotas 



1. Amount. — The amount of the farm marketing cjuota is the actual production 

 of the farm acreage allotment (sec. 358 (d)). 



2. Marketing quota penalty. — The marketing of peanuts in excess of the farm 

 marketing cjuota, or the marketing of peanuts from any farm for which no acreage 

 allotment was determined, is subject to a penalty at a rate equal to 50 percent 

 of the basic rate of the loan for cjuota peanuts for the marketing year (August 1- 

 July 31) beginning in the calendar year in which such peanuts are produced (sec. 



359 (a)). 



3. Exempt farms. — Quotas are not applicable to any farm on whidh the acreage 

 of peanuts harvested for nuts is 1 acre or less (sec. 359 (b)). 



Mr. Pace. The committee is delighted to have this moniing the 

 Secretary of Agriculture, who will at this time address the committee 

 on this subject. 



Mr. Secretary. 



STATEMENT OF HON. CHARLES F. BRANNAN, SECRETARY OF 



AGRICULTURE 



Secretary Brannan. Thank you, Mr. Chairman. 



May I inquiie if there is before yourself and the other members of 

 the committee the brochure of statistical data which I have in my 

 hand. 



2* This is the only reference in the aet to the establishment of allotments for farms on which peanuts have 

 not been grown in any of the three base period years. 



