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1975/07/25 S435 Wheat Marketing Year Change
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1975/07/25 S435 Wheat Marketing Year Change
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The original documents are located in Box 27, folder "7/25/75 S435 Wheat Marketing Year
Change" of the White House Records Office: Legislation Case Files at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 27 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED JUL25 25
ACTION
THE WHITE HOUSE
WASHINGTON
Last Day: August 4
July 25, 1975
Poster 7/26/75
TONRCHIVES MEMORANDUM FOR
THE PRESIDENT
7/28
FROM:
SUBJECT:
JIM CANNON June
S. 435 + Wheat Marketing Year Change
Attached for your consideration is S. 435, sponsored by
Senators Young, Bellmon and Dole, which changes the
marketing year for wheat to the period June 1 through
May 31 from the current period of July 1 through June
30. The bill would enable the Department of Agriculture
to make a more accurate analysis of the wheat situation,
particularly in the case of year-end wheat carryover stocks.
OMB, Max Friedersdorf, Counsel's Office (Lazarus) and I
recommend approval of the enrolled bill.
RECOMMENDATION
That you sign S. 435 at Tab A.
FORD VIBRARY
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
VENIIVE
STATE
WASHINGTON, D.C. 20503
JUL 25 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill S. 435 - Wheat marketing year change
Sponsor - Sen. Young (R) North Dakota, Sen. Bellmon (R)
Oklahoma, and Sen. Dole (R) Kansas
Last Day for Action
August 4, 1974 - Monday
Purpose
Changes the marketing year for wheat to the period June 1
through May 31 from the current period of July 1 through
June 30.
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Discussion
S. 435 would change the marketing year for wheat to the period
June 1 through May 31 from the current period of July 1 through
June 30. This marketing year change reflects the growing trend
of early wheat production made possible by technological advances.
It would enable Agriculture to make a more accurate analysis of
the wheat situation, particularly in the case of year-end wheat
carryover stocks.
James F. e. Hyde, Jr.
Acting Assistant Directo
for Legislative Reference
Enclosures
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
JUL 25 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill S. 435 - Wheat marketing year change
Sponsor - Sen. Young (R) North Dakota, Sen. Bellmon (R)
Oklahoma, and Sen. Dole (R) Kansas
Last Day for Action
August 4, 1974 - Monday
Purpose
:
Changes the marketing year for wheat to the period June 1
through May 31 from the current period of July 1 through
June 30.
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Discussion
S. 435 would change the marketing year for wheat to the period
June 1 through May 31 from the current period of July 1 through
June 30. This marketing year change reflects the growing trend
of early wheat production made possible by technological advances.
It would enable Agriculture to make a more accurate analysis of
the wheat situation, particularly in the case of year-end wheat
carryover stocks.
James F. e. Hyde, Jr.
Acting Assistant Director
for Legislative Reference
:
Enclosures
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date:
Time:
July 25
noon
FOR ACTION: Paul Leach
CC (for information):
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date:
Time: 2000m
July 25
300pm
SUBJECT:
S. 435 Wheat marketing year change
ACTION REQUESTED:
For Necessary Action
X For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
OK Pall Col
BEAL R. FORD UBRART
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
For LOB Preside
ORDON
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date:
Time:
July 25
noon
FOR ACTION: Paul Leach
CC (for information):
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date:
Time: 2000m
July 25
300pm
SUBJECT:
S. 435 Wheat marketing year change
ACTION REQUESTED:
For Necessary Action
X
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
No objection. -- Ken Lazarus 7/25/75
GERALD LIBRARY . FORD
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
for 100 Preside
Unton,
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date:
Time:
July 25
noon
FOR ACTION: Jaul Leach oh
CC (for information):
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus on
FROM THE STAFF SECRETARY
DUE: Date: July 25
Time: 200
300pm
SUBJECT:
S. 435 Wheat marketing year change
ACTION REQUESTED:
For Necessary Action
X For Your Recommendations
Prepare Agenda and Brief
Draft Reply
-
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
FORD 1
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
WASHINGTON
July 25, 1975
MEMORANDUM FOR:
THE STAFF SECRETARY
FROM:
MAX L. FRIEDERSDORF m.v.
SUBJECT:
S. 345 - Wheat Marketing year change
The Office of Legislative Affairs concurs in the
attached.
STATES DEPARTMENTOR THE DEPARTMENT GROUNTURE
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
July 24, 1975
Honorable James T. Lynn
Director, Office of Management
and Budget
Washington, D. C. 20503
Dear Mr. Lynn:
In reply to the request of your office, the following
report is submitted on the enrolled enactment S. 435
"To amend Section 301(b)(7) of the Agricultural Adjust-
ment Act of 1938, as amended, to change the marketing
year for wheat from July 1-June 30, to June 1-May 31."
This Department recommends that the President approve
the bill.
Technology associated with wheat production has greatly
advanced the time of wheat harvest; in some years as
much as 40 percent of the winter wheat crop is harvested
prior to July 1. The shift of the marketing year to
begin June 1 is a rational change which has the active
support of the Department's data users. Upon enactment
of this bill, the Department plans to shift the date of
its summer quarter grain stocks survey to June 1 from
July 1 for all commodities, beginning in 1976.
Sincerely,
Garl L Britz
Farl L. Butz
Secretary
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
1st Session
No. 94-354
WHEAT MARKETING YEAR CHANGE
JULY 14, 1975.-Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed
Mr. FOLEY, from the Committee on Agriculture,
submitted the following
REPORT
[To accompany S. 435]
The Committee on Agriculture, to whom was referred the bill
(S. 435), to amend section 301 (b) (7) of the Agricultural Adjustment
Act of 1938, as amended, to change the marketing year for wheat
from July 1-June 30, to June 1-May 31, having considered the same,
report favorably thereon without amendment and recommend that
the bill do pass.
PURPOSE
S. 435 changes the marketing year for wheat to the period June 1
through May 31 from July 1 through June 30, as currently provided
for in the Agricultural Adjustment Act of 1938, as amended.
NEED FOR THE LEGISLATION
The marketing year for wheat is changed in the bill to reflect changes
that have occurred in wheat production over the course of the last
number of years. Technology associated with wheat production has
greatly advanced the time of wheat harvest with as much as 40 percent
of the winter wheat crop harvested in some years prior to July 1.
The marketing year is used by the Department in relating wheat
statistics to the harvesting and marketing of the annual crop and in
making supply and demand estimates for wheat. The change in the
beginning of the marketing year would make the U.S. Department
of Agriculture's statistical summary of the wheat situation more
57-006
2
3
accurate, particularly it would make its estimates of year-end wheat
carryover stocks. more representative of actual market conditions.
ADMINISTRATION POSITION
Under the existing July-June marketing year, the statistical summary
often presents an inaccurate statement of the supply availability
On May 19, 1975, Richard A. Ashworth, Deputy Under Secretary
since a significant amount of the new crop is processed and exported
of Agriculture, submitted the following letter in support of S. 435:
prior to July 1.
The Committee does not believe that the change in the marketing
DEPARTMENT OF AGRICULTURE,
year would have an adverse effect on deficiency and disaster payments
OFFICE OF THE SECRETARY,
for wheat under the Agricultural Act of 1949. Payments are related
Washington, D.C., May 19, 1975.
to the difference between the target price for wheat of $2.05 per bushel
Hon. THOMAS S. FOLEY,
(as adjusted for the 1976 and 1977 crops) and the market prices
Chairman, Committee on Agriculture,
during the first 5 months of the marketing year-July thru November
House of Representatives,
under the current law, June thru October under S. 435. The bill would
Washington, D.C.
have the effect of substituting the month of June for the month of
DEAR MR. CHAIRMAN: This will reply to your request of May 2,
November in the formula. The price of wheat has been lower more
1975 for a report on S. 435, a bill "To amend section (b) (7) of the
frequently in June in the past than in November. However, it is
Agricultural Adjustment Act of 1938, as amended, to change the
believed in the future the price could go either way depending on
marketing year for wheat from July 1-June 30, to-June 1-May 31."
supply and demand situations.
The Department supports the passage of the bill.
The proposed change has a great deal of merit. Technology asso-
COMMITTEE CONSIDERATION
ciated with wheat production has greatly advanced the time of
wheat harvest with as much as 40 percent of the winter wheat crop
The Subcommittee on Livestock and Grains met to consider S. 435
harvested in some years prior to July 1. In most years, a significant
on May 20 and June 13, 1975. Testimony was received in support of
amount of new crop wheat is processed or exported prior to July 1,
the bill from a spokesman for the U.S. Department of Agriculture.
and this creates serious unknowns as to the utilization of the grain
Statements were also submitted in support of the bill by the American
for individual crop years. The shift of the marketing year to begin
Farm Bureau Federation and the National Association of Wheat
June 1 would minimize the utilization unknowns associated with
Growers. In its consideration of the bill a question was raised concern-
individual crop years. The harvest of durum wheat and other spring
ing the effect that the change in the marketing year would have on the
wheat does not present similar problems because of the timing of
rate of payments which may be received by wheat producers as
spring wheat harvest.
deficiency payments under the wheat program. A compilation was
The designation of June 1 as the beginning of the marketing year
obtained of the average prices received by farmers for wheat for the
for wheat would require the conduct of a wheat stocks survey as of
20-year period, 1955 through 1974. During this period the November
June 1. This survey is now conducted as of July 1 as an integral part
price was higher than the June price in 16 years and the June price
of the stocks survey for the other grain and oilseed commodities for
was higher than the November price in only 4 of the years involved.
which stocks data are provided. As soon as feasible after enactment of
Thus, if the market price for wheat should fall below the target price
the bill, it is proposed to shift the date of the stocks survey for all
of $2.05 per bushel (as adjusted for 1976 and 1977), it appears un-
commodities concerned to June 1. A shift to June 1 should present no
likely that the deficiency payments would be reduced as a result of the
additional problems in the collection of farm and off-farm stocks, as
change in the marketing year, as provided for in S. 435.
the same basic survey procedures followed on July 1 would also be
The Committee considered making the bill effective on June 1, 1976,
used for a June 1 survey. The shift of all commodities would not in-
but decided to report the bill without amendment, since it was deter-
volve additional costs to the Department.
mined that it would not cause any difficulties in administration of the
It will not be practical at this date to shift all commodities to the
wheat program if S. 435 were to become effective with the marketing
June 1 date in 1975. If the legislation is passed, it is proposed to main-
year beginning June 1, 1975.
tain the July 1 stocks survey date for wheat and all other commodities
The bill was ordered favorably reported by the Subcommittee by a
in 1975 and to shift all commodities to a June 1 date in 1976 at no
unanimous vote and similarly was ordered reported by the full Com-
additional cost.
mittee on June 26 by a unanimous voice vote, both actions having been
The Office of Management and Budget advises that there is no
taken in the presence of a quorum.
objection to the presentation of this report from the standpoint of the
Administration's program.
Sincerely,
RICHARD A. ASHWORTH,
Deputy Under Secretary.
H.R. 354
H.R. 354
4
5
CURRENT AND FIVE SUBSEQUENT FISCAL YEAR COST ESTIMATE
AGRICULTURAL ADJUSTMENT ACT OF 1938
Pursuant to clause 7 of Rule XIII of the Rules of the House of Rep-
*
*
*
*
*
resentatives, the Committee estimates that there should not be any
SEC. 301 (b) DEFINITIONS APPLICABLE TO ONE OR MORE COM-
additional cost incurred by the Federal Government during the cur-
MODITIES-For the purposes of this title.
rent and the five subsequent fiscal years as a result of the enactment of
(7) "Marketing year" means, in the case of the following com-
S. 435. A shift in the date for the beginning of the marketing year
modities, the period beginning on the first and ending with the second
should not result in additional costs in the collection of statistics for
date specified below:
the computation needed to make supply and demand estimates. The
Committee is unable to determine whether the bill will result in any in-
Corn, October 1-September 30;
crease in deficiency payments since market prices are currently above
Cotton, August 1-July 31;
the level of target prices and it is not clear to what extent, if any,
Rice, August 1-July 31;
market prices might fall below target prices, in the future and if SO
Tobacco (flue-cured), July 1-June 30;
whether the price of wheat in June would be different than the price of
Tobacco (other than flue-cured), October 1-September 30;
wheat in November.
[Wheat, July 1-June 30.]
The same cost estimate was submitted to the Committee by the
Wheat, June 1-May 31.
Department of Agriculture.
INFLATIONARY IMPACT STATEMENT
Pursuant to clause 2(1) (4), Rule XI of the Rules of the House of
Representatives, the Committee estimates that enactment of S. 435
will have no inflationary impact on the national economy.
BUDGET ACT COMPLIANCE (SECTION 208 AND SECTION 403)
The provisions of clause 1(3) (B) and clause 1(3) (C) of Rule XI of
the House of Representatives and section 308(a) and section 403 of
the Congressional Budget Act of 1974 (relating to estimates of new
budget authority or new or increased tax expenditures and the esti-
mate and comparison prepared by the Director of the Congressional
Budget Office), are not considered applicable because the bill should
have no effect on existing spending estimates for fiscal year 1976.
OVERSIGHT STATEMENT
No summary of oversight findings and recommendations made by
the Committee on Government Operations under clause 2(b) (2) of
Rule X of the Rules of the House of Representatives was available
to the Committee with reference to the subject matter specifically
addressed by S. 435.
No specific oversight activities, other than the hearings accompany-
ing the Committee's consideration of S. 435 and related bills, were
made by the Committee, within the definition of Rule XI of the House
of Representatives.
CHANGES IN EXISTING LAW
In compliance with clause 3 of Rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill are
shown as follows (existing law proposed to be omitted is enclosed in
black brackets, new matter is printed in italic, and existing law in
which no change is proposed is shown in roman):
H.R. 354
H.R. 354
CORRECTED
S. 435
FORD
Ainety-fourth Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday, the fourteenth day of January,
one thousand nine hundred and seventy-five
An Act
To amend section 301 (b) (7) of the Agricultural Adjustment Act of 1938, as
amended, to change the marketing year for wheat from July 1-June 30, to
June 1-May 31.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 301 (b)
(7) of the Agricultural Adjustment Act of 1938, as amended, is
amended by striking out "Wheat, July 1-June 30" and inserting in
lieu thereof "Wheat, June 1-May 31".
SEC. 2. The amendment made by the first section of this Act shall
become effective June 1, 1975.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
July 23, 1975
Dear Mr. Director:
The following bills were received at the White
House on July 23rd:
S.J. Res. 41
S.J. Res. 42
8. 435
Please let the President have reports and
recommendations as to the approval of these
bills as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D.C.