30 



foods. The producers of these products spend miUions of dollars on a regular basis to 

 encourage people to buy more expensive and less nutritional products than eggs. 



H.R. 1637 would give egg producers the ability to vote to increase their assessments 

 to the level they think appropriate to get the job done. The legislation would authorize the 

 American Egg Board to request that the Secretary conduct a referendum on any increase 

 in the assessment. The American Egg Board would make its request for such an increase 

 based on scientific studies, market analyses and other evidence, such as producer polls, 

 which would indicate support for such an increase. A vote could be requested to move to 

 any level of assessment up to 30c per case of commercial eggs, or the equivalent. 



The change in the assessment rate could take place only if approved by at least two- 

 thirds of the producers voting in the referendum, or by a majority of the producers who 

 produced not less than two-thirds of all commercial eggs produced by those voting in the 

 referendum. 



Mr. Chairman, the upper limit of 30c per case for assessments should provide plenty 

 of flexibility for the egg industry. It is not expected that the AEB would request a 

 referendum to raise the assessment from 5c a case to 30c all at once. It is expected the 

 industry will increase their rate of assessment gradually. 



