18 



is solidly behind it. This is especially true in our program because 

 of the requirement of a super majority rather than a simple major- 

 ity, as with most other commodity checkoff programs. 



In addition, H.R. 1637 would raise the exemption level from 

 30,000 to 50,000 laying hens. It has always been the policy under 

 the Egg Research and Consumer Information Act to assess only 

 commercial egg producers for the funding of the American Egg 

 Board program. Gradually over the years the industry has 

 changed, requiring greater economies of scale in order to be com- 

 petitive. Therefore, the definition of a commercial flock has 

 changed accordingly, with the minimum commercial flock size in- 

 creasing. By exempting all producers with less than 50,000 laying 

 hens, we believe we would be assessing the overwhelming majority 

 of egg production and would be confining the assessment to those 

 who are truly commercial egg producers. 



In closing, Mr. Chairman, I would like to thank the subcommit- 

 tee for all the assistance provided to the egg industry over the 

 years. As you know, egg producers do not have a supply manage- 

 ment or price support program. We operate solely on the basis of 

 supply and demand. However, we have come to this committee 

 from time to time on other issues, such as our promotion program, 

 and you have always been quite responsive. We appreciate your 

 continued support. 



[The prepared statement of Mr. Hoffer appears at the conclusion 

 of the hearing.] 



Mr. VOLKMER. Thank you very much. 



We have a vote on right now, so we will hear from Mr. Eckhoff 

 and Mr. Adams after we return from the vote. 



But before we leave for the vote, in order to expedite things for 

 members, I'm going to ask unanimous consent that the subcommit- 

 tee go into a business session immediately. No objection, so or- 

 dered. 



[Whereupon, at 1:55 p.m., the subcommittee proceeded to further 

 business.] 



[Recess taken.] 



[Whereupon, at 2 p.m., the subcommittee was reconvened.] 



Mr. VOLKMER. The subcommittee will resume. 



We will now hear from Mr. Eckhoff. 



STATEMENT OF GILBERT B. ECKHOFF, PRESIDENT AND CHIEF 

 EXECUTIVE OFFICER, HENNINGSEN FOODS, INC. 



Mr. Eckhoff. Thank you, Mr. Chairman, and good afternoon. In 

 the interest of your time I condensed my remarks dramatically 

 while you were gone. 



I am Gil Eckhoff, president and chief executive officer of 

 Henningsen Foods, Inc., of Omaha, Nebraska and White Plains, 

 New York. We are a producer of shell eggs as well as a major fur- 

 ther processor for egg products. Our company is 105 years old, so 

 therefore we have been involved in the egg business for a long 

 time. I served on the American Egg Board for about 12 years, with 

 3 years as chairman, and I support the amendments to the egg 

 checkoff legislation as provided in H.R. 1637. 



These changes are also supported by the majority of egg produc- 

 ers in the United States and are needed to maintain and expand 



