Mr. NORRELL. I notice the document that has just been presented to us by your, on page 2. The total shows $50,190,000. Now, do I understand that the amount for farmers for your Department has been reduced by the difference between $55,000,000 and $50,190,000? Secretary BRANNAN. Yes, Mr. Norrell, we have no indemnification provided for in this sum of $50,190,000. The $55,000,000 shown in Mr. Howse's submission does not include funds for the disaster loan program, but does include funds for the total indemnification program. Mr. NORRELL. That is a correct interpretation of it? Secretary BRANNAN. Yes. Mr. NORRELL. Now, the crop insurance I presume has been adequate to take care of the loss of any crops that have been destroyed? Secretary BRANNAN. Mr. Chairman, unfortunately that is not correct. As Mr. Whitten pointed out, the crop-insurance program has just recently, within the last 3 years, about, been reinaugurated. Its early experience was not a successful experience. It has been reinaugurated on a limited scale. No State in the Union has all of its counties under crop insurance and all of the crops which the farmer might raise in this or any other area cannot be brought under the crop-insurance program. It is a very limited operation, as a matter of fact. Mr. NORRELL. Would you advise the committee about the percent of insurance that you had in this crop-insurance field in this area? Secretary BRANNAN. I would say the claims we expect to pay amount to probably just a little less than 1 percent of the total crop damage. Mr. NORRELL. Do you plan on doing the most of this work with your regular permanent employees? Secretary BRANNAN. We will set up no new organizational staff in any way, shape, or form. There will be a reconcentration of some of our best-trained people for this kind of work, and there will be some filling in in the areas from which they were removed with new people. Mr. NORRELL. You do not plan to come back and ask for additional personnel for the work other than that outlined here? Secretary BRANNAN. That is right, Mr. Chairman. Mr. NORRELL. How many applications have you received for loans from the disaster loan fund? APPLICATIONS FOR FARM LOANS Secretary BRANNAN. I am not sure of the current number of applications, although the balance of the disaster loan revolving fund, on July 1, 1951, was $13,000,000. Receipts during the year are estimated at around $90,000,000. In Kansas, we made 363 loans for $427,612; in Oklahoma, 107 loans for $91,315; in Missouri, 118 loans for $124,835; Illinois, 8 loans for $5,730. Mr. NORRELL. How many applications have you disapproved or taken action on? Secretary BRANNAN. I should like to call on Mr. Lasseter to answer that. Mr. LASSETER. Mr. Chairman, I am D. B. Lasseter, Administrator of the Farmers Home Administration. We have not right now the right number of applications, but we have not yet turned down any application, and we have already loaned in this area, subsequent to the fund, somewhat over $600,000 so far. I would like to say that there have been many applicants in the offices there, but they have not made up their minds yet what they want to do. That is the situation now. 4 Mr. NORRELL. Let the record show that the gentleman who is. talking is Mr. D. B. Lasseter, Administrator of the Farmers Home Administration, Department of Agriculture. How much money do you have in the disaster-loan fund unallocated? UNALLOCATED FUNDS IN DISASTER-LOAN FUND Mr. LASSETER. Unallocated? We have approximately, as I think the Secretary said, $13,000,000. As of June 30, it was $15,000,000 and we spent somewhat over $1,000,000 out there already. So I imagine that we have about $13,000,000 left as of today. Mr. NORRELL. And how much have you allocated or committed up to date to this flood area? Mr. LASSETER. Something over $1,000,000, just for their immediate use, Mr. Chairman, and we have already expended over $600,000 of that, most of it in Kansas, I think $425,000 of it in Kansas. I want to make one point, that we have not turned down a loan application on account of lack of funds. Mr. NORRELL. Very well, sir. I would like to know how much of the money that is mentioned in your estimate here will be paid to the farmer and how much will be expended in administering the loans. Secretary BRANNAN. Mr. Chairman, if you will turn to page 14, we get the first indication of that. On page 14, the four purposes for which we use the directly appropriated funds are outlined: Onfarm assistance; the emergency restoration of channels; the grants to farm families unable to secure loans; the direct guidance and assistance to affected farm families, are listed there, adding up to $20,190,000. Then, Mr. Chairman, if you will turn to page 16, you will see a complete breakdown of the amount of money to be used by the Soil Conservation Service in carrying out its part of this work. The Soil Conservation Service will carry out all of the assignment under subparagraph (b) on page 14, and will carry out a portion of the work under subparagraph (a) on page 14. Mr. NORRELL. Mr. Secretary, that statement has just come in and I have not read it. I think that these pages should be inserted in the record. I think that we will insert pages 14 through 19 in the record at this point. (The pages referred to are as follows:) REHABILITATION OF MIDWESTERN FLOOD-STRICKEN AREAS (ALLOCATION TO DEPARTMENT OF AGRICULTURE) Obligations by activities Description 1. DIRECT AID FOR RESTORING PRODUCTIVITY (a) On-farm assistance, through financial aid and technical services, to restore conservation measures and productive capacity of individual farms. (b) Emergency restoration of channel capacity in tributary streams and waterways affect- (c) Grants to farm families unable to secure loans for livestock, repair or replacement of Subtotal.. II. THE LOAN PROGRAM Estimate, 1952 $16, 300,000 1,960,000 1,750,000 180,000 20, 190, 000 (a) Disaster loans to farmers unable to secure credit from other sources for replacing or repairing farm homes and buildings, equipment and household furnishings, replacing livestock, and meeting essential farm and operating expenses.. Total obligations... 30, 000, 000 50, 190, 000 * Does not include provision for any indemnity payments to farmers, covered elsewhere in connection with the justifications for the indemnity program generally. REHABILITATION OF MIDWESTERN FLOOD-STRICKEN AREAS (ALLOCATION TO DEPARTMENT OF AGRICULTURE-PRODUCTION AND MARKETIMG ADMINISTRATION) Obligations by objects Object classification Estimate, 1952 06 Printing and reproduction.. 07 Other contractual services: $7,500 Transfer to "Local administration, sec. 388, Agricultural Adjustment Act of 1938" 11 Grants, subsidies, and contributions... Transfer to "Administrative expenses, sec. 392, Agricultural Adjustment Act of 30,000 947, 500 14, 700, 000 Total obligations... 15, 685,000 REHABILITATION OF MIDWESTERN FLOOD-STRICKEN AREAS (ALLOCATION TO DEPARTMENT OF AGRICULTURE-SOIL CONSERVATION SERVICE) REHABILITATION OF MIDWESTERN FLOOD-STRICKEN AREAS (ALLOCATION TO DEPARTMENT OF AGRICULTURE-FARMERS HOME ADMINISTRATION) (ALLOCATION TO REHABILITATION OF MIDWESTERN FLOOD-STRICKEN AREAS Obligations by objects Object classification 11 Grants, subsidies, and contributions (payments to State extension services). Estimate, 1952 $180,000 REHABILITATION OF MIDWESTERN FLOOD-STRICKEN AREAS (ALLOCATION TO DEPARTMENT OF AGRICULTURE-SUMMARY) Secretary BRANNAN. I might amplify that now, Mr. Chairman, to point out that subdivision (c) on page 14 will be carried out also by the Farmers Home Administration, and they will also administer the $30 million disaster loan fund, which is set forth at the bottom of that page. Subsection (d) will be carried out, of course, by the Extension Service and the Production and Marketing Administration will carry out, through the very same devices and under the very same general rules and regulations, the authorization described, or the funds described in subdivision (a). Mr. NORRELL. I am going to move on now, because the time is running short, and I wish to let the committee members be heard. Do you construe the law to mean that this program as you outlined it to us is presently authorized by law, or do you take the position that certain features of it are not? LEGAL AUTHORITY FOR AGRICULTURAL PROGRAM Secretary BRANNAN. Mr. Chairman, to the extent that the agricultural functions are involved, we could carry them out under our existing authorities, except possibly the grant provision, which on the green sheets, again, is referred to as "c." However, the Housing Act of June 15, 1949, authorizes the Secretary of Agriculture to make grants for repairs and improvements of farm dwellings under certain conditions, but otherwise we do have the existing authorities, Mr. Chairman. Mr. NORRELL. I think that this page, Mr. Secretary, also ought to go in the record. |