GENERAL FARM PROGRAM 



In the event that production in areas outside the commercial corn 

 area becomes large enough to interfere with corn quotas, eventually 

 such areas could be brought within the commercial area. This would 

 seem to be the logical approach. If after fm'ther experience it is 

 found that the present definition of commercial corn area does not 

 permit as prompt an expansion as is desnable, the proper approach 

 would be to modify the definition of the commercial area as specified 

 in present legislation so that any areas which increase production in 

 a manner which would interfere with the marketing quotas could be 

 included promptly within the commercial area. 



In addition to the. foregoing comments in response to the questions 

 raised by the chairman of your subcommittee, you undoubtedly will 

 be interested in some current facts regarding the 1948 corn crop and 

 our loan operations with respect thereto. 



The 1948 corn crop of 3,651,000,000 bushels together with an old- 

 crop cany-over of 125,000,000 bushels gives a total supply of 3,776,- 

 000,000 bushels availal^le for the crop year beginning October 1, 1948. 

 Domestic disappearance, including feed, food, and industrial uses, is 

 estimated at 2,950,000,000 bushels and probable exports are placed 

 at 125,000,000 bushels. This indicates a total disappearance of 3,075,- 

 000,000 bushels, leaving a prospective carry-over of up to as much as 

 700,000,000 bushels in all positions on October 1, 1949. This would 

 be an all-time high record and 575,000,000 bushels more than was 

 carried over a year ago. The previous high record carry-over of corn 

 was in 1940, when it totaled 688,000,000 bushels. In the last 5 years, 

 1944 to 1948, the average carry-over was 226,000,000 bushels, and 

 the 1937 to 1941 prewar average was 469,000,000 bushels. 



Because of the limitations upon expansion of feeding operations 

 imposed by the relatively low number of grain-consuming animal 

 uaits on farms — which is practically no larger now than it was in 

 1941 — and because of the existing inadequacy of farm grain stora.!,e 

 facilities, corn marketings ofl^ farms so far this year have been in 

 excess of current requirements and, as a result, prices received by 

 farmers have declined well below the loan level equivalents. Urider 

 these conditions farmers are availing themselves of loans and pur- 

 chase agreements wherever storage facilities permit, and the total 

 amount of corn that will be sealed or covered by purchase agree .nents 

 mav weU exceed 400,000,000 bushels tbis year. 



Farm stocks of corn on January 1, 1949, totaled 2,520,000,000 

 bushels, the largest on record for this date and 306,000,000 bushels 

 above the previous high established in 1943. A year ago, January 1, 

 farm stocks were 1,506,000,000 bushels and the average of the last 10 

 years was 1,944,000,000 bushels. 



Unless there is an unfavorable outlook for the 1949 corn crop, 

 practically all of the supplies of corn put under loans or purchase 

 agreements may be expected to be offered to CCC. 



For the committee's use a folder of corn and related statistics has 

 been prepared which I think you have before you at this time. These 

 data cover the supply-distribution picture in the United States for 

 the years 1926 to 1948, and the quantity of feed and food grains, as 

 well as byproduct feeds fed per grain-consuming animal unit, setting 

 forth the average amount of each of these carbohydrate feeds con- 

 sumed during the 5-year period 1937 to 1941, as well as for each 

 marketing year beginning with October 1938 down to the present 

 time. Other tables in this folder include information by States, by 



