GENERAL FARM PROGRAM 59 



course, the acreage has expanded because of the differential, but they 

 are outside of the commercial corn area. 



Mr. HoEVEN. There is also variation within the State itself. 



Secretary Brannan. And there is variation by counties within 

 States. I think if you will trace back the explanation of each one of 

 them, you will fincl that freight rates or some adjusted figure based 

 on freight rates accounts for it. 



Mr. Andresen. That may be, but by having a larger loan rate 

 in areas where they are outside the commercial corn area, you are 

 encouraging additional production of corn, whereas you are discourag- 

 ing it within commercial corn area. 



Secretary Brannan. Mr. Andresen, I do not think that is quite 

 right. Let us take it in the New Jersey situation where you drew 

 the wide differential. The objective really is to make the price 

 support effective in that area. We will say the corn which must 

 supply the demands in New Jersey, which it does not supply from 

 its own production, must come from Iowa, Indiana, Kansas, or some 

 other State. It must travel over there at the price at Kansas City 

 market plus freight and handling charges. It we were to put the sup- 

 port price at the same figiu'e in New Jersey as it is in Kansas, then 

 the support price would actually be without any appreciable assistance 

 or aid to the man in New Jersey who was producing corn. If he got 

 only that, he would always be getting less than what the market would 

 give him. 



Mr. Andresen. Do you have any corn loans in Tennessee, Ken- 

 tucky, New Jersey or any of these higher-loan States? 



Secretary Brannan. I am sure we have some. The number of 

 them we can give you very shortly, I believe. I have found we do 

 not have it here by States, but we can have it for you by States if 

 you want that in the record. 



Mr. Andresen. I think it would be well to put this tabulation in 

 the record. If there is no objection, I would like it inserted. 



Mr. Pace. If there is no objection, the tabidation will be filed with 

 the clerk for insertion at this point in the record. 



Dr. Patzig advised the committee later that the corn loan rates for 1948 crop 

 ranged by counties from $1.34 to $1.63 per bushel, averaging $1.44 nationally. 

 Purchase agreement rates for 1948 crop ranged from $1.34 to $1.66 per bushel. 

 The upper range of rates on purchase agreements applies only to feed deficit 

 States where corn loans are not available. Actual loans in the high loan States 

 have been made on the 1948 crop in Kentucky, Tennessee, New Jersey, and other 

 feed deficit areas as follows: Kentucky, loans on almost 2,300,000 bushels at 

 $1.51; Tennessee, loans on about 119,000 bushels at $1.56; New Jersey, negligible 

 quantity at $1.60; relatively small quantities involved in a few other States. 



Mr. Hoeven. Will the gentleman yield? 



Mr. Andresen. I yield. 



Mr. Hoeven. As I understand it, Mr. Secretary, the loan figure in 

 my county of $1.36 and the loan rate of $1.60 in New Jersey are 

 arrived at by considering the historical price plus the freight rate and 

 the handling charges. 



Are there any other considerations that enter into it? 



Secretary Brannan. There are other adjustment factors in there. 



Mr. Hoeven. What are they? 



Secretary Brannan. I would like Mr. McArthur to explain those. 

 Will you give us the other ones, Mr. McArthur? 



