84 GENERAL FARM PROGRAM 



acreage allotment on corn, which will produce, with average yields, 

 a sufficient quantity of corn, which, together with corn produced 

 outside the commercial producing area, will make a supply equal to 

 the reserve supply level as defined in the Agricultural Adjustment Act 

 of 1938. 



The reserve supply level is defined as the normal domestic consump- 

 tion, plus normal exports, plus 10 percent. That is the annual 

 reserve supply level. 



Section 328 also provides that adjustments shall be made for trends 

 in domestic consumption and exports when determining normal do- 

 mestic consumption and exports. 



Now section 304 



Mr. Pace. Pardon this interruption — you determine your normal 

 yields for a stated period of years? 



Mr. Walker. Ten years preceding the year in which such deter- 

 minations are made, adjusted for trends and abnormal weather con- 

 ditions 



Mr. Pace. That figure is subject to adjustment? 



Mr. Walker. That is correct. 



Mr. Pace. The last 10 years would require adjustments on account 

 of the increase in yields in the last 4 or 5 years. 



\ Mr. Walker. Yes; there have to be adjustments for trends, as 

 yields are going up, although the farm acreage is dropping. 



Mr. Pace. Go ahead, Mr. Walker. 



Mr. Walker. Under section 304 we have consumer safeguards; 

 that is, a standard is set up using the 1920 to 1929 period as the base, 

 which says that in all instances when determining the national corn- 

 acreage allotment you must provide for at least sufficient corn pro- 

 duction to produce a supply of food which at least is equal to the 

 amount that was available for the people of the United States during 

 that period. 



Mr. Pace. Per capita? 



Mr. Walker. Per capita; that is, per capita consumption. In 

 order to do that, when you determine the national corn-acreage allot- 

 ment the consumption is broken down into the utilization of corn by 

 uses; that is, the amount of corn fed to work stock, the amount of 

 corn fed to livestock, poultry, and dairy for domestic consumption; 

 the amount of corn fed to livestock, dairy and poultry for export; the 

 amount of corn used for industrial purposes and seed ; and the amount 

 of corn. exported as grain. 



We determine each of these uses over the 10-year period and adjust 

 them for current trends. To illustrate, the amount of corn for work 

 stock for the 10-year period 1938-47 was about 240,000,000 bush- 

 els, but the work stock, mostly horses and mules, has been declining 

 almost in a straight line of reduction, until now only 150,000,000 

 bushels of corn are estimated to be required for the work stock. 



Mr. Pace. What is the need of the complicated calculation in the 

 case of domestic consumption, if total domestic consumption gets all 

 of it anyway? 



Mr. Walker. It is necessary in order to get an accurate check 

 against this consumption-safeguard provision in section 304. 



Mr. Pace. My question is directed to why the need of this domestic 

 safeguard; it is in the over-all domestic consumption. 



