B-142011, APR. 8, 1960

B-142011, APR. 8, 1960

TO THE SECRETARY OF AGRICULTURE:

A LETTER DATED APRIL 5, 1960, FROM THE ASSISTANT SECRETARY OF AGRICULTURE, CONCERNS OUR DECISION OF APRIL 1, 1960, B-142011, TO YOU. THE DECISION WAS IN RESPONSE TO YOUR QUESTION AS TO WHETHER THE $50,000 PRICE SUPPORT LIMITATION IN THE DEPARTMENT OF AGRICULTURE AND FARM CREDIT ADMINISTRATION APPROPRIATION ACT, 1960, 73 STAT. 167, 178, WILL APPLY TO PRICE SUPPORT LOANS AND PURCHASES MADE AFTER JUNE 30, 1960, WITH RESPECT TO THE 1960 PRODUCTION OF ANY SURPLUS AGRICULTURAL COMMODITY.

IN OUR DECISION WE SAID THAT "THE LIMITATION IN QUESTION WOULD NOT APPLY TO NEW PRICE SUPPORT PROGRAMS FORMULATED OR CARRIED OUT WITH FUNDS MADE AVAILABLE BY A FISCAL YEAR 1961 AUTHORIZATION, EVEN THOUGH SUCH PROGRAMS, AND THE LOANS AND PURCHASES MADE THEREUNDER, INVOLVE SURPLUS AGRICULTURAL COMMODITIES PRODUCED IN CALENDAR YEAR 1960.' WE ALSO SAID THAT "LIMITATION PROVISO IN QUESTION IS APPLICABLE ONLY TO PRICE SUPPORT PROGRAMS FOR WHICH ADMINISTRATIVE EXPENSES WERE INCURRED DURING THE FISCAL YEAR 1960.'

THE ASSISTANT SECRETARY'S LETTER IS, IN PERTINENT PART, AS FOLLOWS:

"THE PROCESS OF FORMULATION AND ANNOUNCING A PRICE SUPPORT PROGRAM IN ALL ITS DETAILS IS A LENGTHY PROCESS INVOLVING NUMEROUS STEPS. IN ITS SIMPLEST FORM, IT INVOLVES THE PREPARATION OF AN INTERNAL PROGRAM AUTHORIZATION FOR CONSIDERATION AND APPROVAL BY THE BOARD OF DIRECTORS OF COMMODITY CREDIT CORPORATION AND THE SECRETARY OF AGRICULTURE WHICH IS FOLLOWED BY THE PREPARATION, ISSUANCE, AND PUBLICATION OF THE DETAILED REGULATIONS IMPLEMENTING THE PROGRAM AUTHORIZATION PREVIOUSLY APPROVED. ALL OF THE PRICE SUPPORT PROGRAMS PRESENTLY CONTEMPLATED WILL HAVE BEEN APPROVED BY THE SECRETARY PRIOR TO JUNE 30 AND MOST OF THE REGULATIONS WILL HAVE BEEN PUBLISHED BY THAT DATE IN THE FEDERAL REGISTER FOR THE GUIDANCE OF THE PUBLIC; HOWEVER, WITH RESPECT TO SEVERAL COMMODITY PRICE SUPPORT PROGRAMS, THE REGULATIONS WILL NOT BE COMPLETED AND PUBLISHED UNTIL IN JULY OR AUGUST. IT IS OUR UNDERSTANDING, AS A RESULT OF A CONFERENCE ON MONDAY, APRIL 4, 1960, BETWEEN REPRESENTATIVES OF THIS DEPARTMENT AND YOUR GENERAL COUNSEL'S OFFICE, THAT IT IS YOUR OPINION THAT THE $50,000 LIMITATION APPLIES TO ALL OF THE 1960 PRODUCTION OF ANY SURPLUS COMMODITY FOR WHICH THE 1960 PROGRAM HAS BEEN CONSIDERED AND APPROVED BY THE BOARD OF DIRECTORS OF COMMODITY CREDIT CORPORATION AND THE SECRETARY OF AGRICULTURE ON OR BEFORE JUNE 30, 1960, NOTWITHSTANDING THAT THE REGULATIONS IMPLEMENTING SUCH PROGRAM AUTHORIZATION MAY NOT BE COMPLETED AND PUBLISHED UNTIL AFTER JUNE 30, AND NOTWITHSTANDING THAT THE ACTUAL LOANS AND PURCHASES ARE NOT MADE UNTIL AFTER JUNE 30. FURTHER, IT IS YOUR OPINION THAT SUCH LIMITATION DOES NOT APPLY TO ANY NEW PROGRAM AUTHORIZATION WHICH IS PREPARED AND APPROVED BY THE COMMODITY CREDIT CORPORATION BOARD AND THE SECRETARY OF AGRICULTURE AFTER JUNE 30, 1960. IF OUR UNDERSTANDING IN THIS MATTER IS CORRECT, WE WOULD APPRECIATE YOUR PROMPT CONFIRMATION THEREOF.'

YOUR DEPARTMENT'S UNDERSTANDING OF OUR POSITION IN THE MATTER, AS SET FORTH IN THE ASSISTANT SECRETARY'S LETTER, IS CORRECT.