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will take no action to decrease the amount of the direct feeder subsidy in such a way 

 as to destroy the proper expectation of the feeder that cattle which he has commenced 

 to feed in reliance upon the subsidy will be ineligible for subsidy payment. When 

 conditions change sufficiently to warrant subsidy reduction, feeders will be given 

 ample advance notice of the proposed change In order to permit them to adjust their 

 operations." 



Judge Collett explained that the removal of subsidies would in many cases 

 cause an increase in price of the commodity now subsidized. However, he expects to 

 prevent a rise in the cost of living by timing the removal of subsidies with declines 

 in prices of other foodstuffs so that any rise in one item would be offset by a de- ^ 

 cline in one or more other items. He suggested a schedule for removal of subsidies 

 as follows: grapefruit Juice with the selling of the 19lfl4-^5 crop; vegetable shorten- 

 ing not later, than December 51, 19^5; cheese not later than February 28, 19^6; pork, 

 $1.50 per live hundredweight, not later than March ^1, 19^6- -remaining kO cents per 

 hundredweight, not latter than June 50, 19^-6; canned and frozen vegetables, dry, edible 

 beans, prunes and raisins not later than the end of the 19^5 crop season; dairy produc- 

 tion payments, regional fluid milk, feeder cattle, beef, sheep and lambs and flour not 

 later than June 50, I9U6. No date has been suggested for ending subsidies on sugar 

 and oilseed. _. 



The wheat situation . Total requirements for wheat and flour by Importing 

 countries will be very large, and the government estimates that the volume of inter- 

 national trade will be the largest in 15 years. It is unlikely that bread and flour 

 can be made available In quantities actually needed in most liberated areas. Ration- 

 ing probably will be continued. Part of the difficulty is in obtaining funds, part 

 in the physical acquisition of the commodity arid part in the transportation and dis- 

 tribution in the European countries. Strength in the wheat market has been upheld by 

 heavy buying by the Commodity Credit Corporation for exports to liberated areas. Wheat 

 stocks on farms in this country on October 1 were estimated at 559 million bushels, 

 the largest on hand for that date except in 19^2, With exports currently estimated at 

 from 500 to 525 million bushels,: the carry-over next July 1 will not be excessive, but 

 it will be considerably higher tban absolutely necessary. 



The feed situation . As indicated in a special section by Professor St ice, 

 supplies of feed per animal unit are expected to be relatively leu:*ge during 19^5-'*^6. 

 However, the demand for feed is expected to remain strong. Later in the season the 

 demand from livestock producers may decline somewhat, but exports of some feed grains 

 and by-product feeds are expected to increase. The carry-over of feed grains in 19^ 

 is not likely to be far different from 19^5. The large supplies of cora, oats, barley 

 and sorghum grains, which, according to the October 1 estimate, were the largest per 

 animal unit in 20 years of record, will be offset by smaller quantities of wheat fed 

 in 19^5-^6 and reductions in feed grain Imports. Feeding rates are likely to continue 

 at a high level during 19^5-^6 but possibly not so high a^ the near-record rate of 

 feeding in 19^^-^5. Supplies of high protein by-product feeds, on the ba^sis of oilmeal 

 equivalent, probably will be slightly lower than in 19^'*-^5/ and oilmeal prices may de- 

 cline somewhat by the summer or fall of 19^6, after the government's 19^5 crop commit- 

 ments to support meal prices run out. The supply of hay for the 19'*5-^ season is one 

 of the largest on record €und, in relation to the livestock to be fed, is the largest 

 in nearly 20 yeco's. 



