GENERAL FARM PROGRAM 47 



remember the mechanism used to mduce the farmer to get out of soil- 

 depleting crops when he went out of corn. 



Mr. Hope. It was a different program than the acreage allotments 

 that were applied in the commercial corn area. 



Wliat was the response in the noncommercial corn area to the loan 

 program on the basis of 75 percent of the rate in the commercial area? 



Secretary Braxnax. Mr. McArthur, will you answer that? 



Mr. McArthur. As I remember it, there were very few loans made 

 in the noncommercial area at the reduced rate, 



Mr. Hope. Wliat is your recollection, if you have any, as to the 

 level of prices m the noncommercial area at the time that you had 

 Joans on corn in the commercial area? In other words, to what 

 extent did the producers in the noncommercial area benefit from the 

 loans in the commercial area? 



Mr. McArthur. Of course, m some minor corn sm-plus producing 

 sections lilve some river bottoms in noncommercial areas they did 

 have rather low prices at harvest times, temporarily, but being defi- 

 ■cit feedmg areas that was generally corrected quite quickly and they 

 were relieved of the competition that would come from the commercial 

 area at a price lower than the support price m the commercial area. 



I think the benefit to the corn producers in the noncommercial 

 area was quite marked because the support prices in the commercial 

 areas held back the movement of corn from that area on the com- 

 petitive basis. 



Secretary Braxxax. Mr. WooUey would like to supplement that. 



Mr. WooLLEY. I might add that we had no complaints outside the 

 commercial corn area that amaunted to anything with respect to their 

 not being treated on the same basis as the commercial corn area. In 

 fact, whenever a county was to be brought into the commercial corn 

 area that was in a deficit feed area by reason of the operation of the 

 formula contained in the act with respect to 450 bushels per farm and 

 four bushels per acre of crop land, the counties, and the people from 

 the States in which those counties were located, generally were op- 

 posed to being brought into the commercial corn area rather than 

 being anxious to get mto it. 



In other words, they felt like they benefited in the feed deficit areas 

 from being outside the commercial corn area. 



Mr. Hope. That has been my observation generally, that the 

 farmers in the noncommercial corn areas have felt pretty well satis- 

 fied with the effect which the program in the conmiercia] corn area, 

 had on them. My own thought has been that they were as well or 

 perhaps better off" than farmers in the commercial corn area, at all 

 times when we had programs in operation in the commercial corn 

 area. 



Mr. Secretary, I believe you have already announced that therp 

 would not be acreage allotments on com this year. Is that correct? 



Secretary Braxxax. That is right. 



Mr. Hope. Has there been any announcement made as to market- 

 ing quotas? 



Secretary Braxxax. Xo, there has been no formal announcement, 

 Air. Hope, but it follows. If you do not have acreage allotments j^ou 

 ■do not have quotas. That is the second sentence in our statement. 



Mr. Hope. You have made the announcement that there would 

 not be acreage allotments? 



