Extension Circular CC138 This circular is about the 1957 soil bank acreage Reserve program for winter wheat

Peterson, Everett E.

English

DigitalCommons@University of Nebraska

University of Nebraska - LincolnDigitalCommons@University of Nebraska - LincolnHistorical Materials from University of Nebraska-Lincoln Extension Extension8-1956CC138 The 1957 Soil Bank Acreage ReserveProgram for Winter WheatEverett E. PetersonFollow this and additional works at: http://digitalcommons.unl.edu/extensionhistThis Article is brought to you for free and open access by the Extension at DigitalCommons@University of Nebraska - Lincoln. It has been accepted forinclusion in Historical Materials from University of Nebraska-Lincoln Extension by an authorized administrator of DigitalCommons@University ofNebraska - Lincoln.Peterson, Everett E., "CC138 The 1957 Soil Bank Acreage Reserve Program for Winter Wheat" (1956). Historical Materials fromUniversity of Nebraska-Lincoln Extension. 3086.http://digitalcommons.unl.edu/extensionhist/3086AG1<- I De 5?~3 ~UGUST 195b v ~t33'f c.c. 138 UNIV. OF NEBRASKA cn:==~£:§:~~~~~~~¥§~~~~~~~§!:~===::;;::J liNCOLN ltP P. A p q:· ~..: QUESTIONS AND ANSWERS 1. How will the wheat acreage reserve operate in Nebraska? rd.t!N 0 3 1988 STACV.S Nebraska farmers will be paid for reducing their 1957 harvested acreage of winter wheat below their farm acreage allotments. The program will be adminis-tered at the local level by the County ASC Committees. 2. How can :::_wheat grower earn acreage reserve payments? First, he must sign an acreage reserve a greement that he will reduce his 195.7 acreage of wheat for harvest below his wheat allotment. There is no limit on the number of acres of wheat which he can pl ant on his farm. However, he must dispose of the crop on any acreage which is in excess of his maximum permitted acreage for harvest (wheat allotment minus acreage reserv e). This must be done not later than the final date for complying with the acreage a llotment for price support purposes. Second, if his farm is in a commercial corn county, his 1957 acreage of corn must not exceed his Soil Bank corn base or allotment, whichever is in effect next year. 3. What payments will be made to wheat farmers who participate in the acreage reserve program? ------ -- -- --The acreage reserve payment on wheat for a farm will be the result of multiplying: (1) the number of acres placed in the acreage reserve times (2) the normal yield for the farm (or the normal yield for tract, whicheve r is sma ller) times (3) the per-bushel rate for the county. For example, if a fa rmer put 2 0 acres in the acreage reserve, had a normal wheat yield of 17 bushels, and was in a county with a $1. 20 per bushel rate, his payment would be: 20 x 17 x $1. 20 = $408. The acreage for whic h pay ment will be made is the smallest of: the number of acres designated in the agreement; the number ac tua lly in the acreage reserve; or the number of acres less than the farm wheat a llot ment. Since the loan rate for 1957 wheat has been set at a national average of $ 2. 00 a bushel, the per-bushel rate for acreage reserve payments in Nebraska will be the same as in 1956 or $1. 17 to $1.28 a bushel. 4. How drb wheat farmers "sign up" for the acreage rese rve program? O wner- operators and both tenants and l andlords on rented farms who decide to participate in the program for 1957 wheat must sign an Acreage Reserve Agreement a nd file it with the Count y ASC Committee by September~ ~ (If a landlord is not available for signing by tnat date, the County ASC Committee may allow the oper a tor u ntfl October 2 2, 19 56, to obtain the owner's signature. ) Once signed, there is no provision for cancellation of a n acre a ge reserve agreement. On share-rent farms the agreement mus t be signed by each person who has cont rol of the land on which the acreage r e s erve i s l ocated, or who has control of land on which wheat acreage is being reduced, or who i s to receive payment under the agreement . 5. Wh e n must~ wheat far m er decide which land 1:9 p ut in the acreage reserve? He must specifically designate in the acre age reserve agreement which tract or t racts of land are to be in the acrea ge reserve. This must be done E.r September~. the d eadline for signing the agreement for wheat. The t ract or tracts in the acreage reserve must have been u sed for wheat p roduction in one or more years 1952 through 1 95 6 . 6. What a re the restrictions on the u se 0' th e a c reage reserve on~ farm? Since the program i s desi gned to reduce farm c rop output , no crop can be har-vested from the acreage reserve in 1 957 . The a creage reservecannot be grazed in 1957 unless the farm operator receives notice in writing. from his County ASC C om mittee that the Se c reta ry of Agriculture has given p ermission to graze becau se of drought or other natura l disast er. No crop shall be planted on the a c r eage reserve from the time the agreement is sign ed to January 1, 1958, except for: (1) c rops (such as winter wheat) that would normally be planted in the fall of 195 7; and (2) c rops approved by the State and County ASC Committees for protective cover. N o hay, seed or grain crops can be harvested from such cover crops on the acreage reserve. The producer must also prevent the acreage reserve from becoming a source of spreading noxious weed s. 7. What happens if a farmer does not liv e up t o the terms of the acreage reserve agree-ment ? -- --------- --If the violation is serious enough to justify ending the a greement, all rights to comp ensation under the agreement shall be forfeited and all payments made shall be refunded to the federal government . F or less serious violations, the rights to pay-ments shall be adjusted, forfeited and r efunded as determined to be appropriate. Any producer who "knowingly and willfully" grazes or harvests any crop from his a c reage reserve will be subje c t in a ddition t o a civil penalty of 50 percent of the p a yment for compliance with the agreement. 8. Are the r e any limits on the number of whe at ac res a f a r m er can place in the a c reage reserve? - -- - - - - ---The acreage reserve for wheat may not excee d th e far m wheat allotment. The grea test number of acres is half the far m acreage allotment or 50 acres, which ever is la rger. Thus whenever the allotment i s les s than 50 acres, the entire allotment coul d go into the acreage reserve . T he l east number of acres is 3 acres or th e wheat allotment whichever is smaller. If a county wheat acreage reserve allocation is less than the total requested by farmers, the requests will be handled in the order of signing the agreements. If a county acreage reserve allocation is greater than the acreages included in all agree-ments filed with the County ASC Committee, farmers who so desire will be permitted to exceed their maximum acreages on a first-come, first-served basis. 9. How will "normal" yields be determined? The "normal" yields of wheat for each farm will be determined by the Community ASC Committee according to detailed instructions from the State ASC Office. 10. How and when will acreage reserve payments~ made? Negotiable certificates will be issued to eligible producers after the County ASC Committee has determined that the acreage reduction requirements of the program have been met. These certificates can be cashed like any government check or may be redeemed in grain in government storage. It does not have to be redeemed in the grain for which it was issued. Rates and procedure for taking grain instead of cash are not yet available. 11. On what basis should payments be divided between landlords and tenants? The law states that adequate safeguards shall be provided "to protect the interests of tenants" including sharing payments "on a fair and equitable basis" and "such provision as may be necessary to prevent them from being forced off the farm" . (Sec. 122, P. L. 540). Consideration will be given to the respective con-tributions normally made by landlord and tenant in producing crops on the "banked" acres and to the usual basis for sharing crops from such land. In many cases the "usual" arrangement for sharing crops on a farm may not be satisfactory for dividing the acreage reserve payments. The following items might well be considered carefully in arriving at a "fair and equitable" division: (1) Property taxes and maintenance costs for fences continue when land is kept out of production. (2} The landowner expects a reasonable return on his investment in land. (3) The tenant also has fixed costs, such as his own labor and management and depreciation, interest and taxes on machinery. Farming less land, although resulting in some saving in operating costs, will often mean less efficient use of labor and machinery. (4} Some costs will be incurred by the tenant or landlord or both in controlling erosion and weeds on the "banked" acres. (5) Both landlord and tenant forego income from crops in placing the land in the acreage reserve; the pay-ment is made to compensate for this loss in income. A possible approach to the problem might be for the landlord to receive a share equal to the taxes on acres placed in the acreage reserve plus the expense of main-taining fences on such land plus a reasonable return on his investment. The re-mainder of the acreage reserve payment would go to the tenant. This suggested approach will probably result in a division on about a 50-50 basis. The final devision must be specified in the acreage reserve agreement and approved by the County ASC Committee. 12. Does the Soil Bank Program replace ACP payment, acreage allotments, marketing qUotas anctPrrce8upports? --No, these will continue as important features of our federal programs for farmers. 13. Must wheat growers participate in the acreage reserve program in order to be err5lble for price support? - -- - - -. No, participation in the acreage reserve program is voluntary but compliance w1th the farm wheat acreage allotment is required the same as before the Soil Bank Act was passed as a condition of eligibility for price support. 14~ Can a farmer with 1957 wheat acreage of up to 15 acres, but over his allotment, pa:rtfcipate m the acreage reserve program?-- -- -----Not on wheat because he is ineligible for price supports by exceeding his allotment. He could go into the acreage reserve program on corn if his farm is in the commercial corn area. 15. What is the support price or loan rate for the 1957 wheat crop in Nebraska? ----- ----------- --- '------=--- -----Farmers who comply with their wheat acreage allotments by the deadlines set by the State ASC Committee will be eligible for the pric e support of $1. 95 a bushel in western Nebraska to $2.13 a bushel. in eastern Nebraska, the same as in 1956. 16. Will taking wheat acreage out of production for the acreage reserve reduce farm acreage allotments in the fiiliire . -- -- --No, crop land placed in the acreage reserve will be regarded as acreage devoted to wheat in establishing future allotments. 17. Will itpay __!_? go into the 1957 acreage reserve program for wheat? The final answer to this question will have to be worked out by each farm op-erator for his own situation. In general, participation is good farm management if it increases net farm income . The 1957 program will be operated as the Soil Bank was originally intended--to reduce farm production rather than to provide drought disaster assistance. On 1957 crops the decision on participating will need to be made about planting time instead of waiting until crop prospects become apparent. Planning the crop production on a farm is now more complicated because the operator will have two new "enterprises" to consider, the acreage and conservation reserves. The latter especially will require planning for more than one year. In reaching his decision on participation the farm operator will want to compare his expected net income under the program with what he could expect otherwise. In making this comparison the following factors might well be considered: (1) income-insurance or risk-reducing aspects of the program; (2) saving in operating costs by banking some cropland; (3) fixed costs such as taxes, depreciation, interest on in-vestment, operator's labor and management which go on regardless of production; (4) long-range benefits of soil improvement under the program; (5) possible market price improvement from less total farm production. In some situations participation in the program may mean less work required on the farm and a greater opportunity to enjoy more leisure or to do farm custom work or to obtain off-farm employment. FOR ADDITIONAL INFORMATION For additional information: (1) watch for circular letters and news releases from your County ASC Committee and Agricultural Extension Agent; (2) attend public meetings held in your area to explain this program; (3) talk with your Community ASC committeeman; (4) visit your County ASC Office; and (5) discuss your farm management and production problems with your County Agricultural Extension Agent. 

CC138  The 1957 Soil Bank Acreage Reserve Program for Winter Wheat

UNL | Libraries

University of Nebraska - Lincoln
DigitalCommons@University of Nebraska - Lincoln
Historical Materials from University of Nebraska-
Lincoln Extension Extension
8-1956
CC138 The 1957 Soil Bank Acreage Reserve
Program for Winter Wheat
Everett E. Peterson
Follow this and additional works at: http://digitalcommons.unl.edu/extensionhist
This Article is brought to you for free and open access by the Extension at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for
inclusion in Historical Materials from University of Nebraska-Lincoln Extension by an authorized administrator of DigitalCommons@University of
Nebraska - Lincoln.
Peterson, Everett E., "CC138 The 1957 Soil Bank Acreage Reserve Program for Winter Wheat" (1956). Historical Materials from
University of Nebraska-Lincoln Extension. 3086.
http://digitalcommons.unl.edu/extensionhist/3086
AG1<- I 
De 5?~3 
~UGUST 195b 
v ~t33'f 
c.c. 138 
UNIV. OF NEBRASKA 
cn:==~£:§:~~~~~~~¥§~~~~~~~§!:~===::;;::J liNCOLN ltP P. A p q:· ~..: 
QUESTIONS AND ANSWERS 
1. How will the wheat acreage reserve operate in Nebraska? 
rd.t!N 0 3 1988 
STACV.S 
Nebraska farmers will be paid for reducing their 1957 harvested acreage of 
winter wheat below their farm acreage allotments. The program will be adminis-
tered at the local level by the County ASC Committees. 
2. How can :::_wheat grower earn acreage reserve payments? 
First, he must sign an acreage reserve a greement that he will reduce his 195.7 
acreage of wheat for harvest below his wheat allotment. There is no limit on the 
number of acres of wheat which he can pl ant on his farm. However, he must dispose 
of the crop on any acreage which is in excess of his maximum permitted acreage for 
harvest (wheat allotment minus acreage reserv e). This must be done not later than 
the final date for complying with the acreage a llotment for price support purposes. 
Second, if his farm is in a commercial corn county, his 1957 acreage of corn 
must not exceed his Soil Bank corn base or allotment, whichever is in effect next 
year. 
3. What payments will be made to wheat farmers who participate in the acreage reserve 
program? ------ -- -- --
The acreage reserve payment on wheat for a farm will be the result of multiplying: 
(1) the number of acres placed in the acreage reserve times (2) the normal yield for 
the farm (or the normal yield for tract, whicheve r is sma ller) times (3) the per-bushel 
rate for the county. For example, if a fa rmer put 2 0 acres in the acreage reserve, 
had a normal wheat yield of 17 bushels, and was in a county with a $1. 20 per bushel 
rate, his payment would be: 20 x 17 x $1. 20 = $408. 
The acreage for whic h pay ment will be made is the smallest of: the number of 
acres designated in the agreement; the number ac tua lly in the acreage reserve; or the 
number of acres less than the farm wheat a llot ment. Since the loan rate for 1957 
wheat has been set at a national average of $ 2. 00 a bushel, the per-bushel rate for 
acreage reserve payments in Nebraska will be the same as in 1956 or $1. 17 to $1.28 
a bushel. 
4. How drb wheat farmers "sign up" for the acreage rese rve program? 
O wner- operators and both tenants and l andlords on rented farms who decide to 
participate in the program for 1957 wheat must sign an Acreage Reserve Agreement 
a nd file it with the Count y ASC Committee by September~ ~ (If a landlord is 
not available for signing by tnat date, the County ASC Committee may allow the 
oper a tor u ntfl October 2 2, 19 56, to obtain the owner's signature. ) Once signed, 
there is no provision for cancellation of a n acre a ge reserve agreement. 
On share-rent farms the agreement mus t be signed by each person who has 
cont rol of the land on which the acreage r e s erve i s l ocated, or who has control of 
land on which wheat acreage is being reduced, or who i s to receive payment under 
the agreement . 
5. Wh e n must~ wheat far m er decide which land 1:9 p ut in the acreage reserve? 
He must specifically designate in the acre age reserve agreement which tract or 
t racts of land are to be in the acrea ge reserve. This must be done E.r September~. 
the d eadline for signing the agreement for wheat. The t ract or tracts in the acreage 
reserve must have been u sed for wheat p roduction in one or more years 1952 through 
1 95 6 . 
6. What a re the restrictions on the u se 0' th e a c reage reserve on~ farm? 
Since the program i s desi gned to reduce farm c rop output , no crop can be har-
vested from the acreage reserve in 1 957 . The a creage reservecannot be grazed in 
1957 unless the farm operator receives notice in writing. from his County ASC 
C om mittee that the Se c reta ry of Agriculture has given p ermission to graze becau se 
of drought or other natura l disast er. 
No crop shall be planted on the a c r eage reserve from the time the agreement is 
sign ed to January 1, 1958, except for: (1) c rops (such as winter wheat) that would 
normally be planted in the fall of 195 7; and (2) c rops approved by the State and County 
ASC Committees for protective cover. N o hay, seed or grain crops can be harvested 
from such cover crops on the acreage reserve. 
The producer must also prevent the acreage reserve from becoming a source of 
spreading noxious weed s. 
7. What happens if a farmer does not liv e up t o the terms of the acreage reserve agree-
ment ? -- --------- --
If the violation is serious enough to justify ending the a greement, all rights to 
comp ensation under the agreement shall be forfeited and all payments made shall be 
refunded to the federal government . F or less serious violations, the rights to pay-
ments shall be adjusted, forfeited and r efunded as determined to be appropriate. 
Any producer who "knowingly and willfully" grazes or harvests any crop from 
his a c reage reserve will be subje c t in a ddition t o a civil penalty of 50 percent of the 
p a yment for compliance with the agreement. 
8. Are the r e any limits on the number of whe at ac res a f a r m er can place in the a c reage 
reserve? - -- - - - - ---
The acreage reserve for wheat may not excee d th e far m wheat allotment. The 
grea test number of acres is half the far m acreage allotment or 50 acres, which ever 
is la rger. Thus whenever the allotment i s les s than 50 acres, the entire allotment 
coul d go into the acreage reserve . T he l east number of acres is 3 acres or th e wheat 
allotment whichever is smaller. 
If a county wheat acreage reserve allocation is less than the total requested by 
farmers, the requests will be handled in the order of signing the agreements. If a 
county acreage reserve allocation is greater than the acreages included in all agree-
ments filed with the County ASC Committee, farmers who so desire will be permitted 
to exceed their maximum acreages on a first-come, first-served basis. 
9. How will "normal" yields be determined? 
The "normal" yields of wheat for each farm will be determined by the Community 
ASC Committee according to detailed instructions from the State ASC Office. 
10. How and when will acreage reserve payments~ made? 
Negotiable certificates will be issued to eligible producers after the County ASC 
Committee has determined that the acreage reduction requirements of the program 
have been met. These certificates can be cashed like any government check or may 
be redeemed in grain in government storage. It does not have to be redeemed in the 
grain for which it was issued. Rates and procedure for taking grain instead of cash 
are not yet available. 
11. On what basis should payments be divided between landlords and tenants? 
The law states that adequate safeguards shall be provided "to protect the 
interests of tenants" including sharing payments "on a fair and equitable basis" 
and "such provision as may be necessary to prevent them from being forced off the 
farm" . (Sec. 122, P. L. 540). Consideration will be given to the respective con-
tributions normally made by landlord and tenant in producing crops on the "banked" 
acres and to the usual basis for sharing crops from such land. 
In many cases the "usual" arrangement for sharing crops on a farm may not be 
satisfactory for dividing the acreage reserve payments. The following items might 
well be considered carefully in arriving at a "fair and equitable" division: (1) 
Property taxes and maintenance costs for fences continue when land is kept out of 
production. (2} The landowner expects a reasonable return on his investment in 
land. (3) The tenant also has fixed costs, such as his own labor and management 
and depreciation, interest and taxes on machinery. Farming less land, although 
resulting in some saving in operating costs, will often mean less efficient use of 
labor and machinery. (4} Some costs will be incurred by the tenant or landlord or 
both in controlling erosion and weeds on the "banked" acres. (5) Both landlord and 
tenant forego income from crops in placing the land in the acreage reserve; the pay-
ment is made to compensate for this loss in income. 
A possible approach to the problem might be for the landlord to receive a share 
equal to the taxes on acres placed in the acreage reserve plus the expense of main-
taining fences on such land plus a reasonable return on his investment. The re-
mainder of the acreage reserve payment would go to the tenant. This suggested 
approach will probably result in a division on about a 50-50 basis. The final 
devision must be specified in the acreage reserve agreement and approved by the 
County ASC Committee. 
12. Does the Soil Bank Program replace ACP payment, acreage allotments, marketing 
qUotas anctPrrce8upports? --
No, these will continue as important features of our federal programs for 
farmers. 
13. Must wheat growers participate in the acreage reserve program in order to be 
err5lble for price support? - -- - - -
. No, participation in the acreage reserve program is voluntary but compliance 
w1th the farm wheat acreage allotment is required the same as before the Soil Bank 
Act was passed as a condition of eligibility for price support. 
14~ Can a farmer with 1957 wheat acreage of up to 15 acres, but over his allotment, 
pa:rtfcipate m the acreage reserve program?-- -- -----
Not on wheat because he is ineligible for price supports by exceeding his 
allotment. He could go into the acreage reserve program on corn if his farm is 
in the commercial corn area. 
15. What is the support price or loan rate for the 1957 wheat crop in Nebraska? 
----- ----------- --- '------=--- -----
Farmers who comply with their wheat acreage allotments by the deadlines set 
by the State ASC Committee will be eligible for the pric e support of $1. 95 a bushel 
in western Nebraska to $2.13 a bushel. in eastern Nebraska, the same as in 1956. 
16. Will taking wheat acreage out of production for the acreage reserve reduce farm 
acreage allotments in the fiiliire . -- -- --
No, crop land placed in the acreage reserve will be regarded as acreage devoted 
to wheat in establishing future allotments. 
17. Will itpay __!_? go into the 1957 acreage reserve program for wheat? 
The final answer to this question will have to be worked out by each farm op-
erator for his own situation. In general, participation is good farm management 
if it increases net farm income . The 1957 program will be operated as the Soil 
Bank was originally intended--to reduce farm production rather than to provide 
drought disaster assistance. On 1957 crops the decision on participating will need 
to be made about planting time instead of waiting until crop prospects become 
apparent. 
Planning the crop production on a farm is now more complicated because the 
operator will have two new "enterprises" to consider, the acreage and conservation 
reserves. The latter especially will require planning for more than one year. 
In reaching his decision on participation the farm operator will want to compare 
his expected net income under the program with what he could expect otherwise. In 
making this comparison the following factors might well be considered: (1) income-
insurance or risk-reducing aspects of the program; (2) saving in operating costs by 
banking some cropland; (3) fixed costs such as taxes, depreciation, interest on in-
vestment, operator's labor and management which go on regardless of production; 
(4) long-range benefits of soil improvement under the program; (5) possible market 
price improvement from less total farm production. 
In some situations participation in the program may mean less work required 
on the farm and a greater opportunity to enjoy more leisure or to do farm custom 
work or to obtain off-farm employment. 
FOR ADDITIONAL INFORMATION 
For additional information: (1) watch for circular letters and news releases 
from your County ASC Committee and Agricultural Extension Agent; (2) attend public 
meetings held in your area to explain this program; (3) talk with your Community 
ASC committeeman; (4) visit your County ASC Office; and (5) discuss your farm 
management and production problems with your County Agricultural Extension Agent. 


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CC138 The 1957 Soil Bank Acreage Reserve Program for Winter Wheat

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