The U.S. Department of Agriculture

The U.S. Department of Agriculture today announced a marketing quota penalty rate of $1.59 per bushel on 1962-crop “excess’ wheat production. This compares to a 1961-crop penalty rate of $l.Uo per bushel. $ When wheat marketing quotas are in effect as they are for 1962crop wheat, the law requires penalties on excess wheat production at the rate of 65 per cent of parity as of May 1 of the crop year, The rate announced today reflects 6j per cent of the May wheat parity price of $2.44 per bushel. The Agricultural Act of 1961 increased the rate of penalty to 65 percent of parity. Previously, the penalty rate had been set at 45 per cent of parity by law. This rate times a farm’s wheat excess, expressed in bushels, determines the actual amount of panalty. Growers approved marketing quotas for the 1962 wheat crop as announced October 16, 1961. USDA officials point out that some farms with 15 acres or less of wheat may be subject to quota penalty on their production as a result of changes made in the law for 1962. Previously, producers on farms harvesting less than 15 acres of wheat were not subject to.penFor

1962, small farms (13.5 ores or less of wheat) on which he 1962 wheat acreage is higher hat the highest acreage m any of he three years, 1959, 1960 and 961, will be subject to penalty in 962 in most cases. Any farm on which the acreage 5 more than 13.5 and more chan he acreage allotment will also be ubject to penalty. . USDA officials also indicate hat producers on many of these arms still have time to reduce heir acreage to avoid a marketing

UTheP1961tyact also changed the asis for determining the wheat racketing excess. The amount o cheat subject to penalty will be ssessed on double the normal buiel yield on the excess acreage, [owever, if the producer can esiblish that his actual yield was ss than this, the county agnculiral Stabilization and Conservaon (ASG) committee can reduce