31 



However, we feel that the authority to move up to 30c a case should be provided in 

 the law so that we, as an industry, do not have to come back to Congress each time we 

 might wish to increase the assessment. We feel that the referendum mechanism provides 

 proper assurances that assessment increases can only be made if the industry is solidly 

 behind it. This is especially true in our program because of the requirement of a super 

 majority rather than a simple majority as 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 competitive. Therefore, the definition of a commercial flock has 

 changed accordingly, with the minimum commercial flock size increasing. By exempting all 

 producers with less than 50,000 laying hens, we believe that 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, 1 would like to thank the Subcommittee for all the 

 assistance provided to the egg industry over the years. As you know, egg producers do not 

 have a supply management 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. 



