In recognition of the future expanded needs of industry for an adequate supply of barley, in 1956 the malting and brewing industries, through Malting Barley Improvement Association, embarked on a program to supplement financially the development of superior malting barley types.

Since that year, over $1.4 million have been contributed to barley research programs. This has resulted in an explosive increase of new selections that require quality evaluation. It is well understood that a crop breeding program which includes the incorporation of specific quality factors must be accompanied by adequate quality evaluation in all stages of development of new varieties.

In an attempt to provide for adequate quality evaluation of new barley varieties and selections, industry grants totaling $250,000 have been made since 1956 to establish, equip, and operate barley and malt quality evaluation laboratories at State agricultural experiment stations in North Dakota, Montana, and Minnesota. In addition, close cooperative arrangements between the malting and brewing industries and malting barley breeders have been established so that final evaluation of potential new varieties is made in industry laboratories as well as State and Federal laboratories. The value of such industry quality testing amounts to well over $100,000 annually.

In spite of these efforts by industry to provide additional facilities for barley and malt quality evaluation, it has been necessary for the USDA Barley and Malt Laboratory to assume the major burden of the increased load of quality evaluation research. Since 1956, the number of barley samples evaluated by the Barley and Malt Laboratory increased from about 1,500 to 3,600 in 1964. This was possible only through special grants made to the Laboratory by industry totaling $280,000 since 1956 including the 1964 grant of $42,000, which is about 25 percent of the Laboratory's operating budget. This Laboratory has also increased its fundamental research on the biological processes associated with malting and the uses of malt.

All of the above was accomplished despite the fact that not 1 square foot of space was added to the original Laboratory building which was authorized and constructed in 1949.

In 1958, it became increasingly apparent that overcrowding of the Barley and Malt Laboratory was seriously interfering with efficiency of the Laboratory and restricting basic research phases of the overall program.

The first proposal for expansion of the Laboratory was made in 1958. At the request of Congress, the U.S. Department of Agriculture submitted a report in January 1962 in connection with the need for expansion of this Laboratory entitled "Report on National Barley and Malt Laboratory" and was published in Agricultural Appropriations for 1963-supplement to hearings before the Subcommittee on Appropriations, U.S. Senate 87th Congress, 2d session, on H.R. 12648.

This USDA report recognized the need for expansion of the Laboratory at Madison as stated in the last two paragraphs as follows:

"The lack of space at present is limiting research more than the quality testing. However, unless research effort is increased, the quality testing which is dependent upon it will be lessened in value. This is particularly true at present, when marked technological changes in the malting and brewing industries are being developed. The breeding and production of barley varieties suited to possibly changed requirements is essential.

"Review of the overall barley improvement program indicates that the quality evaluation phases can keep pace with expanded breeding programs only if additional space, equipment, and personnel are provided. The need includes provision for basic research on quality as well as for processing samples for breeders. Consideration of all factors involved including limitations of existing laboratories leads us to conclude that expansion of the laboratory at Madison will best serve the needs of barley producers and consumers."

The U.S. Department of Agriculture Grain Research and Marketing Advisory Committee made strong recommendation for expansion of the USDA Barley and Malt Laboratory in the report and recommendations of its 17th meeting, January 9-12, 1961, as follows:

"Adequate laboratory facilities.-The Committee reaffirms and strongly emphasizes its previous recommendation for the construction of additional laboratory facilities for urgent work on the evaluation of barley for malting quality ***** Expansion of building and funds for increased personnel would permit greatly needed additional fundamental research and processing operations in the following specific areas:

(1) Proteolytic enzymes and the resulting intermediate molecular weight nitrogen compounds, peptides, polypeptides, and nucleic acids. Information is urgently needed on how important each of these compounds is for quality and how each is effected by variety or cultural practices.

(2) Fundamental research on the mechanism of enzyme activation during malting and without germ development in the presence of gibberellic acid or other growth hormones. The implications of this in commercial operations, and in relation to existing and potential barley varieties are of immediate importance. (3) The suitability of existing and potential barley varieties for use in the changeover to continuous malting and brewing methods and in concentration and reconstitution of beer need to be established by research and testing. (4) Fundamental research on the quality of "hybrid barley."

(5) Establishment of a data processing program to get more meaningful analysis and interpretations of the data obtained.

(6) For the service evaluation of new selections and varieties, where the number of samples has increased steadily, additional space for storing, cleaning, and processing samples in an orderly manner to reduce the chances of error and maintain original condition is one of the greatest needs.

(7) Additional space and personnel are required for adaptation of research findings to more meaningful routine procedures for quality evaluation.

There are two recent developments in barley which will soon add a substantial number of samples needing quality evaluation. There are:

(1) Discovery of the cereal leaf beetle, a foreign insect which is very destructive to barley and other cereal grains, in Michigan in 1962. This insect now has been found in 85 counties in Michigan, Indiana, and Ohio. The USDA world collection of barley is being tested to find types resistant to this insect. Breeding programs to get cereal leaf beetle resistant types are already underway and very soon it will be necessary to evaluate the quality of large numbers of early generation selections so that further breeding work can continue in order to obtain adapted varieties with acceptable quality that can be approved by the malting and brewing industry. (2) The genetic mechanism for producing "hybrid barley" has been discovered. The possible effects of "hybrid barley" on farm production and malting quality was discussed at a Malting Barley Improvement Association meeting in Minneapolis this past January. Since hybrid barley has not existed previously its quality attributes are unknown and a great deal of basic research needs to be done to get this information. In order to produce hybrid barley with acceptable quality characteristics it will be necessary to test large numbers of potentially useful hybrids before they can be approved by the malting and brewing industries. The needed expansion of the Madison Laboratory amounts to about 5,000 square feet and would represent an increase of approximately 50 percent in area. Estimated cost of the new construction is $375,000 and an additional $130,000 annually for personnel and operation of the expanded facility.

The malting and brewing industries have demonstrated their willingness to assume a substantial share of the cost of the research needed to assure adequate supplies of acceptable malting barley. We request that Congress give full consideration to the urgent need for an immediate expansion of the USDA Barley and Malt Laboratory so that the excellent work of this Laboratory can be increased to adequately serve an important segment of U.S. agriculture and industry.

NATIONAL BARLEY AND MALT LABORATORY, MADISON, WIS., EXPANSION

Mr. LEJEUNE. Thank you, Mr. Chairman.

I am testifying on behalf of the need for expansion of the U.S. Department of Agriculture National Barley and Malt Laboratory located in Madison, Wis. This Laboratory is the only Federal institution devoted to fundamental research on barley and malt quality and the biological processes involved in the production of barley malt and malt products.

The major industrial use of barley in the United States is for malting and brewing purposes. The current annual need of these industries amounts to more than 105 million bushels of suitable barley. This is

over one-fourth of the total annual U.S. barley production, a very significant portion of the total crop.

There is no surplus of high quality malting barley. The need for increasing production of malting barley was recognized by the announcement of the Secretary of Agriculture that the malting barley exemption, provided for in the Feed Grain Act of 1963, would be applicable on 1965 crop. This exemption permits malting barley growers to exceed their 1959-60 base acres by 10 percent and retain eligibility for price support.

Senator HOLLAND. Just a moment, and off the record.

(Discussion off the record.)

Senator HOLLAND. All right, sir. On the record.

Mr. LEJEUNE. Malting barley has historically commanded premium prices over barley suitable only for feed purposes. This premium has averaged 35 cents per bushel in the Minneapolis market for the 10-year period 1955-64. Due to the expected rapid increase in population, it is anticipated that the future needs of the malting industry for barley will steadily expand at a conservative compounded rate of 4 percent per year. On this basis, projected requirements for malting barley by 1975 would be 151 and 223 million bushels by 1985.

The importance of the malting and brewing industries to the U.S. economy is of major proportions and not generally recognized. The annual retail value of the brewing industries products exceeds $6 billion. Federal excise tax alone on malt beverages amounted to over $30 million in 1963.

The malting and brewing industries prefer domestic sources of malting barley providing it is of acceptable quality. Barley of suitable malting quality is marketed as a cash crop and therefore does not add to grain surpluses under Government price-support programs.

SUPERIOR MALTING BARLEY DEVELOPMENT

In recognition of the future expanded needs of industry for an adequate supply of barley, in 1956 the malting and brewing industries, through Malting Barley Improvement Association, embarked on a program to supplement financially the development of superior malting barley types.

Since that year, over $1.4 million have been contributed to barley research programs. This has resulted in an explosive increase of new selections that require quality evaluation. It is well understood that a crop breeding program which includes the incorporation of specific quality factors must be accompanied by adequate quality evaluation in all stages of development of new varieties.

sir.

Senator HOLLAND. I thought you put your statement in the record,

Mr. LEJEUNE. I did, sir.

Senator HOLLAND. Well, you are reading it now, aren't you?

Mr. LEJEUNE. Yes; I am.

But I am

Senator HOLLAND. Well, don't read it twice.

Which way do you want it?

Mr. LEJEUNE. I am going to skip certain parts of it, sir.
Senator HOLLAND. All right.

Mr. LEJEUNE. The consideration of industry to expand malt and barley research programs has resulted in an explosive expansion of material that needs to be evaluated for quality, and the burden of this falls on the Barley and Malt Laboratory at Madison, Wis. In

an attempt to overcome the deficiency in quality testing facilities, our industry has granted over $250,000 to equip and establish laboratories at three State experimental stations.

Senator HOLLAND. When you say "our industry," you mean the beer people?

Mr. LEJEUNE. The malting and brewing industry; yes, sir; through our association.

Senator HOLLAND. Yes.

Mr. LEJEUNE. In spite of this effort to overcome the deficiency in quality evaluation facilities, the number of samples which had to be tested in the National Barley and Malt Laboratory at Madison has increased from 1,500 in 1956 to 3,600 in 1964. This was possible only through special grants which were made to the Laboratory by industry, totaling $280,000 since 1956. This includes a grant this year of $42,000.

All of this was accomplished without increasing the area of the Laboratory by 1 square foot.

LABORATORY EXPANSION JUSTIFICATION

In 1958, it became apparent that the laboratory space was inadequate, and needed expansion. The first proposal for expanding the Laboratory was made in 1958. At the request of Congress, a report on the National Barley and Malt Laboratory was published in Agricultural Appropriations of 1963, and the conclusion of this report was that the Laboratory was overcrowded, and that the only way or the best way in which to increase the quality evaluation facilities was to expand the Laboratory.

This was also concurred in by the U.S. Department of Agriculture Grain Research and Marketing Advisory Committee in its report in 1961, which recommended an increase in the facilities for quality evaluation.

Two significant recent developments which further emphasize the need for increasing this laboratory are, first of all, the discovery of the cereal leaf beetle in Michigan, in 1962. The cereal leaf beetle attacks barley as well as oats and wheat, and it has become necessary for the barley breeding programs to try to incorporate resistance to cereal leaf beetle into new selections. This work is underway, but will require greatly expanded need for quality evaluation of the new varieties and new hybrids for use.

The second significant recent development is the mechanism for the development of hybrid barley, similar to hybrid corn and hybrid wheat, which is now also underway. The mechanism has been discovered whereby hybrid barley is a possibility. This will again require an expanded quality evaluation of various combinations of different parents to determine their quality.

INDUSTRY CONTRIBUTIONS

Senator HOLLAND. How much is the brewing industry contributing now to the Madison Laboratory?

Mr. LEJEUNE. Well, their grant this year was $42,000, sir, and that is expected to be about $43,000 next year.

Senator HOLLAND. How much is the brewing industry contributing to the experimentation that is going on in some of the State laboratories?

Mr. LEJEUNE. Well, including the grant to the Madison Laboratory, approximately $200,000 a year.

Senator HOLLAND. In other words, that is an overall contribution? Mr. LEJEUNE. Yes.

Senator HOLLAND. Will you file for the record a breakdown of that contribution, where it goes, and how much to each?

Mr. LEJEUNE. Well, I can give it to you approximately, sir, if that would be all right.

Senator HOLLAND. Can't you give it to us exactly?

Mr. LEJEUNE. Yes. I could give it to you exactly.

Senator HOLLAND. Well, please furnish it for the record.
Mr. LEJEUNE. Yes, sir; I will do that.

(The information requested appears on p. 374.)

LABORATORY EXPANSION REQUIREMENT

Mr. LEJEUNE. Now, we estimate that the needed expansion of the Madison Laboratory amounts to about 5,000 square feet, or an increase of 50 percent in area. Estimated cost of construction is about $375,000, and the estimated cost of staffing and equipping and operating the expanded facility, $130,000 annually.

We respectfully request that the expansion of this laboratory be given your full consideration, sir.

Thank you.

Senator HOLLAND. Have you had this matter up with the Department of Agriculture?

Mr. LEJEUNE. Yes, sir.

Senator HOLLAND. What is their recommendation?

Mr. LEJEUNE. They are in favor of it, sir.

Senator HOLLAND. It doesn't appear in the budget.

Mr. LEJEUNE. Well, it was my understanding that it was in the budget submitted originally by the Agricultural Research Service. Senator HOLLAND. That was before November 3 of last year, wasn't it?

Mr. LEJEUNE. I don't know what the date is, sir, but I was led to understand that it was in their budget.

Senator HOLLAND. Well, we will inquire on that when the Department is before us.

Thank you very much.

Mr. LEJEUNE. Thank you, sir.

NATIONAL LIMESTONE INSTITUTE, INC.

STATEMENT OF ROBERT M. KOCH, PRESIDENT

PREPARED STATEMENT

Senator HOLLAND. The next representative is Mr. Robert M. Koch, president of the National Limestone Institute, Washington, D.C. Mr. Koch.

Mr. KocH. Mr. Chairman, if I may have my statement put in the record, I will just speak briefly about two points.

Senator HOLLAND. The statement will be placed in the record. (The prepared statement of Mr. Koch follows:)