GENERAL FARAI PROGRAM 



impact of supply and demand conditions over which they have no 

 control. 



2. Should the commercial corn area be expanded? 



The present definition of the cominercial corn-producing area pro- 

 vides for an automatic expansion of this area. The definition in the 

 Agricultural Adjustment Act of 1938 provides that the commercial 

 corn-producing area includes all counties in which the average pro- 

 duction of corn — excluding corn used as silage — during the 10 calendar 

 years immediately preceding the calendar year for which such area is 

 determined, after adjustment for abnormal weather conditions, is 

 450 bushels or more per farm and four bushels or more for each acre 

 of farm land in the county. 



Despite the fact that substantial increases in corn production have 

 occurred in some areas outside of the commercial area, production 

 in the commercial area has become more concentrated in recent years. 

 Ninety-five percent of the increase in the 1948 United States corn 

 production over average prewar production originated in the Corn 

 Belt. 



The elimmation of the concept of the commercial corn area and the 

 substitution of the entire country as a corn-producing area vvas 

 considered at recent meetings with PMA State committeemen from 

 corn-producing areas. These farmer representatives indicated that 

 farmer thmking in the commercial as well as in the non-commercial 

 area was not in favor of changing the formula for bringing additional 

 areas into the commercial corn-producing area. 



If it should be considered as desirable to increase the commercial 

 area, the definition of commercial area should perhaps be revised to 

 permit designation of counties as commercial area on the basis of 

 yields and production in a shorter period than the present recjuire- 

 ment of 10 calendar years. A more representative period such as 

 five years might be desirable. 



In changing this period, consideration might also be given to the 

 desirability of including corn used as silage in determining whether 

 production in any county falls within the definition. Corn used as 

 silage was excluded because it was used on the farm in these particular 

 areas. However, if production of silage has expanded materially and 

 if such production tends to nullify the eft'ect of corn-marketing cjuotas 

 in the commercial area, consideration should be given to including 

 corn used as silage in the defuiition of commercial area. 



3. Should quotas apply to corn produced and fed on the farm? 

 Quotas should apply to corn produced and fed on the farm because, 



in terms of the objectives of marketing c^uotas, it would make no 

 difference whether the corn was fed on the farm where produced or 

 marketed and fed in some other area. 



Under the Agricultural Adjustment Act of 1938, as amended, dis- 

 position of corn by feeding in any form is subject to quotas. 



Since approximately 80 percent of all the corn produced in the 

 United States is fed on farms where produced, limitation of quotas 

 to corn sold off farms would make the ciuota program practically 

 inoperative. It would place producers who sell their corn for cash on 

 a different basis than producers who market their corn in the form of 

 hogs, and the distinction would give rise to serious administrative 

 difficulties in enforcing quotas. 



4. Should quotas apply to corn produced for silage? 



91215 — 40 — pt. 1 2 



