soil-conservation program and for helping to meet post-war food and fiber supply problems which are expected to be aggravated by expanding normal needs as well as by damage done by wartime cropping conditions. In anticipation of a phosphorus shortage, engineering work was expedited so that construction_work could proceed promptly upon approval by the War Production Board. Formal application to the War Production Board for project approval and priority assistance was made on June 27, 1942. On August 3, 1942, the Chemicals Branch of the War Production Board advised the Authority that "* * diversion of the necessary critical material into this plant con struction does not appear to be justified at this time ** * *" but, as stated above, advised that requirements may change and that the application is being held in the files pending further developments in war program requirements. The War Production Board made the following declaration in its General Preference Order M-230. issued September 9, 1942, whereby the use and delivery of phosphorus is restricted and controlled by it under monthly allocation procedure: "The fulfillment of requirements for the defense of the United States has created a shortage in the supply of phosphorus, for defense, for private account, and for export * * The plant site, consisting of 148 acres just north of Mobile, Ala., having rail, water, and highway access, has been purchased, at a cost of $122,000; arrangements for power supply have been made with Alabama Power Co.; and designs and specifications have been carried as far as practicable without actual E approval of the project by the War Production Board. It is estimated that the plant would be completed about twelve months after approval by the War Production Board, with adequate priority assistance. CONSTRUCTION OF FURNACES FOR FUSED-ROCK PHOSPHATE Mr. LILIENTHAL. I would like to supplement the statement that is to be found on page 23-unless there are questions you want to ask at this time about it-on the fused-rock project. That looks like a very useful way of conserving critical materials, including electric power, and still help to meet what we feel and other well-informed people feel is going to be an increasingly hazardous condition about the decline of the mineral content in our soils; the problems of stock feed, and so forth. This looks like a short cut that will be a very useful one. of course, provided for in the Appropriation Act of 1943. (The supplementary statement follows:) That was, ITEM FOR THE CONSTRUCTION OF FURNACES FOR FUSED ROCK PHOSPHATE The process for fusing or defluorination of rock phosphate is a simple, one-step process and does not require large quantities of electricity or of sulfuric acid. The Authority's pilot plant work has progressed to a point where it is now feasible to build a commercial sized unit to demonstrate production by the process and to provide material for testing under practical farming conditions. The importance of the process is further emphasized by the current recognition of a large deficiency in mineral supplements for livestock feeding and the fact that =agricultural authorities believe that this material will provide a satisfactory livestock feeding supplement. This is especially important in view of the shortages of bonemeal, normally available, and because of the greatly increased need for mineral supplements due to the increased quotas for wartime food production. DESIGN OF PLANTS FOR FUTURE CONSTRUCTION Mr. Fitzpatrick raised the question about after the peace problems. There is one that I might call to his attention on page 24, an item which in part has that in mind. It is the design, the preliminary design, for the reconversion of some of these plants back to peacetime use. Mr. WIGGLESWORTH. Design of plants for future construction, all of which apparently have been deferred? Mr. LILIENTHAL. Yes. Mr. WIGGLESWORTH. What are those plants? Mr. LILIENTHAL. Potassium metaphosphate operation; that was discussed in our 1943 estimates; and a dicalcium phosphate plant. There was only $3,000 for those items. As to 1944— Mr. WIGGLESWORTH. That is what I was referring to; apparently the 1943 estimate is $153,000. Mr. LILIENTHAL. That is for the preliminary studies for these projects, and for reconversion of the ammonium nitrate plant to some peacetime use. Mr. WIGGLESWORTH. These are plans for reconversion? Mr. LILIENTHAL. Yes, of existing plant. In other words, we are getting ready against the period after the war to build facilities that will provide new and different products based on the Government's plant at the shoals, but these are only in the planning stage. That is so that there will be no time lost at that point. FERTILIZER OPERATIONS I do not know how much time the committee desires to put on the fertilizer program. Mr. WOODRUM. I think you may put in the record whatever you wish on that subject, Mr. Lilienthal, unless someone wants to question you on it at this time. We have previously gone into that question rather carefully. Mr. WIGGLESWORTH. Give us something on the amount of fertilizer produced and the cost of production, for the record. Mr. L'LIENTHAL. Yes, sir; we shall do that. We will supplement the statement in whatever way seems helpful. (The statement referred to follows:) Actual fertlizer production costs for fiscal year 1942 In the interest of national defense, the use of power for fertilizer production was curtailed. The resulting decrease in fertilizer production caused unusually high unit costs of manufacture. Increase in inventory. 3 Reduction in inventory. THE PLACE OF THE TEST-DEMONSTRATION PROGRAM IN THE WAR That the food situation is becoming more serious as the war progresses is evidenced by (1) national policy toward the drafting of farm labor, (2) general concern over production goals, and (3) present arrangements for food rationing. The longer the war lasts the more critical the situation will become. Since the beginning of the test-demonstration program the equivalent of about 29,000 tons of phosphorus has been applied by practical farmers participating this activity. A conservative estimate is that this led to the fixation of as much nitrogen as is contained in 500,000 tons of nitrate of soda. This increased supply of nitrogen was thus made available for the production of feed and food. In properly feeding livestock for the production of milk, beef, pork, and eggs, protein is essential, and in order to secure this part of the ration a liberal supply of nitrogen must be assimilated by plants. Not only is protein important but the feed must also be high in the minerals for best results. Phosphate and lime are of the greatest value. North Carolina State College found that phosphate and lime not only increased the yield per acre but increased the mineral content of legumes and grasses which are excellent sources of protein. The same institution found that there was a further increase in quality through an increase of 45 percent in carotene content as a result of the use of lime and phosphate. Through the test-demonstration phosphate procedure, great quantities of highly nutritive feeds have been produced which has led to a greater supply of essential foods needed in war. This has been achieved without increasing labor. The use of the test-demonstration farms as sources of information by people and institutions sponsoring them has been effective in spreading these practices and thereby multiplying the production of the kinds, quality, and quantities of food needed in the war. In the Nation generally, and particularly in the South, liberal quantities of mineral fertilizers, lime, and legumes are necessary and must be used judiciously in the farming system if the land is to meet the production goals during the war and maintain a relatively high state of fertility for post-war adjustment when food requirements may exceed wartime demand. The farm unit and area test-demonstration procedure has come to be recognized as a chief force in bringing farm lands to a high fertility level and in maintaining this level, while at the same time producing increased quantities of nutritious foods and feeds. The test-demonstrator can take war production goals in his stride, because the condition of his land is better and the efficiency of his operations higher than when he entered the program. In addition to his individual contribution to production goals, he is serving as an effective leader in his community, presenting his neighbors with a practical demonstration of how to reach production goals for large quantities of nutritious foods even in the face of the acute labor and machinery shortage. Farm people have accepted the testdemonstration farms as centers of community study where the democratic processes of solving the problems where they exist can function unmolested. Adjustments made by test-demonstration farmers and the influence of these demonstrations on other farmers already constitute a substantial contribution to the war effort. The adoption by farm people of these farms as teaching devices will provide an established medium for study and solution of post-war adjustment problems in community agriculture. This program is geared into the philosophy of the people and is run by them in such a way as to effect an immediate shift from a peacetime to a wartime economy. War demand on nitrogen production for munitions has definitely curtailed this material for agricultural use. This shortage must be replaced by atmospheric nitrogen introduced into the soil through the proper use of minerals, particularly phosphate and lime. The test-demonstration farmers are continually improving the pattern of farming that will most effectively accomplish this end. The effectiveness of the test-demonstration program in the war effort is also evidenced by studies in various States. An analysis of the changes that have taken place on a representative group of these farms in Tennessee reveals: (1) That hay production has increased one-third; (2) that small grain production has increased two-thirds; (3) that pasture acreage has increased slightly, but grazing capacity has increased materially; (4) that winter cover crops have increased one-seventh; (5) that sales of fruits and vegetables increased onehalf; (6) that the acreage of corn was decreased by one-seventh but production increased one-fourth: (7) that the death rate of cattle declined, while the calf crop increased one-third; (8) that total milk production increased almost onefourth and that these increases were achieved with little or no additional labor. Analysis of a representative group of farms in Kentucky revealed that untreated pasture land had a carrying capacity of one animal unit per 3.7 acres, while the treated pasture averaged one animal unit per 1.7 acres. Twenty-five years ago the Virginia experiment station determined the value of phosphate and lime for pasture improvement and recommended it for general use on farms in certain areas of the State. During the next 20 years only 5 percent of the farmers in the areas designated had actually phosphated pastures. However, during the first 6 years of the test-demonstration program more than 75 percent of these farmers adopted the practice of phosphating pastures. This treatment resulted in 24 more grazing days per year with an increase in grazing capacity of 30 percent. It was found also that the mineral content of the herbage increased its nutritive value materially. Test-demonstration farmers pioneer changes. In the Tennessee Valley section of Alabama progress has been summarized as follows: Improved pasture (phosphated, limed, and seeded) from a few acres on two farms to 50,000 acres; dairying from a few farms selling bottled milk in towns to more than 2,000 selling to 5 new cheese plants; legume seed production-from approximately 1,000,000 pounds to 7,000,000 pounds; winter growing crops-from 100,000 acres to 450,000 acres. A study of 100 representative test-demonstration farms in Georgia revealed average corn yields increased from 20 bushels in 1935 to 30 bushels in 1940. Land in summer and winter legumes increased from 10 to 35 acres per farm, wheat yields went from 10 to 12 bushels per acre, oat yields from approximately 10 to more than 30 bushels per acre, animal units from 11 to 20 per farm, while cash income from livestock increased from $700 to more than $1,100 per farm over the same period. Wise use of minerals by demonstrators and their neighbors is playing an important role in increasing food production and in offsetting the farm labor shortage. For example, one representative group of 94 test-demonstration farmers in Tennessee has shown that for every ton of concentrated phosphatic fertilizer applied they are being repaid with increased food production in the equiva lent of 256 gallons of milk, 123 dozen eggs, 3 hogs, 2 head of cattle, 550 pounds of cottonseed, and $14 worth of fruits and vegetables. Distribution of concentrated superphosphate, calcium metaphosphate, and fused rock phosphate for tests and test-demonstrations through June 30, 1942 Laboratory samples. 2 Includes small amounts of conditioning materials added at time of shipment. RELATED PROPERTY OPERATIONS LAND ACQUISITION Going to related property operations, expenditures on public lands that the T. V. A. has acquired; reservoir margins, operation of construtcion camps and villages, and so forth. Mr. DIRKSEN. Were there any land acquisitions in the fiscal year 1943? Mr. LILIENTHAL. Yes. Mr. DIRKSEN. I wonder if you could take the statement that is already in the hearings on that and bring it up to date, showing land under title and ownership now, and acquisitions and so forth; and a little word about the general character of the acquisitions. Mr. LILIENTHAL. Yes. (The table requested follows:) 1 Exclusive of land included in Wilson Reservoir when turned over to the Authority by the War Department, and land included in projects purchased from private electric utilities. 1 Construction deferred by order of War Production Board and acquisition of additional land is postponed EXPENDITURES ON PROPERTY MAINTENANCE Mr. LILIENTHAL. As to the expenditures on property maintenance, and so on, the increases are due to the fact that three new reservoirs have come in, which means that a considerable number of farm families are there for whose adjustment to new places we feel responsible. That is the continuation of an earlier program. DEVELOPMENT OF RECREATION FACILITIES IN RESERVOIR AREAS The heading, "Development of recreation facilities in reservoir areas" is a misnomer, but I did not want to change the title from our earlier statements. Mr. WIGGLESWORTH. What is it? Mr. LILIENTHAL. This is a small amount of preliminary work that can be done before the water is up, quite inexpensively, on our own |