90 GENERAL FARM PROGRAM 



deduct this amount together with the carry-over of 700,000,000 

 bushels — if 700,000,000 bushels is the amount from the reserve sup- 

 ply level. The remainder then must be produced in the commercial 

 corn growing area. Then we determine the average yield and on the 

 basis of the quantity of corn needed to be produced, determine the 

 acreage needed in the commercial corn area, which, together with the 

 carry-over and the corn that is produced outside the commercial area 

 would make the supply equal to the reserve level. 



Mr. Andresen. Let me ask you about some of the broad factors 

 that apply in the corn formula you have just indicated: Assuming 

 that we raise 3.5 billion bushels of corn this year, in 1949, and we 

 have a 700 million bushel carry-over, and we have an exportable sur- 

 plus of 125 million bushels, in working out the formula with relation 

 to those figures, does it mean that we will have a corn acreage allot- 

 ment for the 1950 crop, and possibly a marKeting quota? 



Air. Walker. If we have a crop this year of 3.5 billion bushels 

 and a carry over of 700 million bushels, we certainly would have more 

 corn than is needed, and there is no doubt about the fact that we 

 would be above the marketing quota level. 



Mr. Andresen. How much above the marketing quota level? 



Mr. Walker. The marketing quota level, for the 1950 crop, would 

 be based upon the 1948 act, which says, that if the supply of corn is 

 20 percent or more above the normal sap])ly as defined in the 1948 

 act, marketing quotas shall be proclaimed by the Secretary. 



Mr. Andresen. What is the normal carry-over? 



Mr. Walker. The normal carry-over? 



Mr. Andresen. Yes; that is used in that figure? 



Mr. Walker. I believe we are going to get mixed up a little bit if 

 we try to put in the normal carry-over. 



Mr. Andresen. You must use some figure for carry-over? 



Mr. Walker. All right. 



Mr. Andresen. Some figure for normal supply. Using instead the 

 figure 3,000,000,000 bushels of corn then what would be the domestic 

 consumption? 



Mr. Walker. With the 3,000,000,000 bushels? 



Mr. Andresen. Yes. 



Mr. Walker. The 3,000,000,000 bushels that we expect to be 

 produced, and somewhere around 700,000,000 bushels as now indi- 

 cated for carry-over, would give us a total supply of 3,700,000,000 

 bushels. Now, in connection with the "normal" carry over of 7 per- 

 cent, you raised the question of the ratio based upon the 7 percent 

 provision of both acts: It is 7 percent more than the normal domestic 

 consumption and export, under the 1838 act. It is 7 percent more 

 than the preceding year's domestic consumption and the estimated 

 ex])ort for the year in question under the 1948 act. So referring to 

 your question about what is the normal carry-over, it would be 7 

 percent of these normal requirements, as defined, respectively. 



Mr. Andresen. Then if we raised 3.5 billion bushels of corn in 194^^ 

 that will be above the requirements and we will have to have a 

 marketing quota? 



Mr. Walker. That would be right, as to the 1950 crop, but not 

 for the 1949 crop. There will be no marketing quota on the 1949 

 corn crop. 



