GENERAL FARM PROGRAM 373 



less than one year's average production, in such form as it may be most readily 

 storable. of any agricultural commodity produced in the United States. 



Sec. 202. Section 4 (a) of the Commodity Credit Corporation Charter Act is 

 amended by deleting the second sentence thereof and inserting in its place the 

 following : "The Corporation shall have power to acquire personal property neces- 

 sary to the conduct of its business ; but shall not have power to acquire real 

 property or any interest therein, except that it may (a) rent or lease office space 

 necessary for the conduct of its business, and (b) acquire real property or any 

 interest therein for the purposes of providing storage adeijuate to carry out 

 effectively and efficiently any of the Corporation's program, or of securing or 

 discharging obligations owing to the Corporation, or of otherwise protecting the 

 tinancial interest of the Corporation." The Corporation is herewith authorized 

 to make loans, on reasonable terms and conditions, to individual farmers, for 

 the construction of on-the-farm storage. 



Sec. 203. In order to carry out the purposes and provisions of this Act, the 

 Commodity Credit Corporation is herewith authorized to make loans for con- 

 struction of storage and processing facilities, in an amount not exceeding 

 $500,000,000 to cooperative association of producers. In the extension of loans 

 to cooperatives, the Corporation shall give preference to existing cooperatives 

 unless the Corporation shall find that there is a clear need for facilities addi- 

 tional to those afforded or proposed by existing cooperatives. In the extension 

 of loans to new cooperatives the Corporation shall take into account the physical 

 capacity of existing storage facilities, the ability and willingness of the manage- 

 ment of existing facilities to meet the needs of farmers and consumers and such 

 other reasonable standards as it may prescribe. To qualify for loans any such 

 new cooperative shall make meuinersiups available to qualified, jiersons for an 

 initial fee or investment of not more than $.!i. In all cases, loans shall be made 

 only to genuine farmer cooperative associations such as have fulfilled the 

 requirements of eligibility specified in the Agricultural Marketing Act of 1929. 



Sec. 1:05. Loans to cooperative associations shall be for a period of not moi*e 

 than 40 years, repayable at not less than 2^^ per centum interest per year : 

 Provided, That the Corporation is directed to work out and apply a reasonable 

 variable repayment plan which will enable the borrower to increase payments 

 and decrease payments according to savint;s, as may be agreed upon between the 

 borrower and the Corporation. 



Sec. 20G. The Corporation is specifically directed, where it is determined that 

 additional facilities are needed, to assist in the formation of new cooperatives, 

 and to assist new and existing cooperative associations in the recruitment and 

 training of personnel. 



Sec. 207. Facilities to be provided under this Act shall include facilities for 

 storage on t!;e farm, areal or seetional storage near farms, subtermiual and 

 terminal storage, and shall include facilities for such first processing of agricul- 

 tural commodities as may be required to render them storable and so to effectuate 

 the purposes of this Act. 



Sec. 208. There is herewith established a Food Distribution Administration in 

 the Commodity Ci'edit Corporation. The Food Distribution Administration shall 

 be directed by a General Manager, appointed by the President and confirmed by 

 the Senate, responsible to the Board of Directors of the Corporation. The com- 

 pensation of the General Manager shall be $15,000 per annum. It shall be the 

 function of the Food Distribution Administration to release through such 

 channels as may be available and at such times as may be desirable those quanti- 

 ties of agricultural commodities stored under provisions of this Act which 

 are requisite to the provision of an adequate diet and to the general welfare 

 of the American people. 



Mr. Pace. You address yourself to the bill now, Mr. Talbott ? 



Mr. Talbott. Yes. Title I, section 101, of the bill is in the nature 

 of a preamble, the first paragraph of which, as jow will note, would 

 express the policj" of Congress to promote the expansion of family- 

 type farming and, further, quite definitely states the policy of Con- 

 gress that famih'-type farmers should receive the major share of 

 any benefits available under a farm program. 



i think I need not take any time to inform the committee that the 

 Farmers Union, since its beginning, 46 or 47 years ago, has been 

 interested primarily in the welfare of the working farmers on the 



