Agricultural Act of 1980 Statement on Signing H.R. 3765 Into Law.

Four years ago, one of the chief priorities of my administration was the establishment of an International Food Security Reserve, a reserve of food grain to be held by the Government to help alleviate hunger around the world. Today, I am pleased to sign into law H.R. 3765, which establishes this Reserve.

For the past three decades, our Government has appropriated funds each year to buy grain and other foods to ship to needy people overseas. That program has helped millions, but when crops were poor and grain prices increasing, the amount of grain our dollars could buy declined just when help was needed most.

This new authority will make our dollars more effective. We can purchase when production is abundant and hold them until needed. These stock purchases will strengthen markets for our farmers during the periods of low farm prices. And they will help assure needy people and nations around the world that American food aid will be sufficient when they are needed most.

This bill also authorizes a new program of special loan rates for 1980 and 1981 crop wheat and feed grains in the farmerowned reserve. These provisions should significantly strengthen this important program. And it changes the market order rules to facilitate the use of private funds by growers to promote the use of California walnuts and olives.

There are two troublesome features in the bill. It requires waiver of all interest due the Government on 1980 and 1981 crop wheat and feed grains in the farmerowned reserve. I believe this requirement is needlessly expensive and is unnecessary for the effective operation of the program. I hope the Congress will delete this provision during the next year's review of farm legislation.

The second troublesome feature authorizes a commodity loan program for alcohol processors. Such a program would duplicate programs already available to processors of alcohol. It would divert to alcohol processors programs intended to provide price support for farm commodities. And it would be costly. Because the establishment of such a reserve is not required by the law, I do not intend to request funds to implement that program. I hope the Congress will delete this provision as well during next year's consideration of farm legislation.