162 GENERAL FARM PROGRAM 



Mr. Hall. Mr. Secretary, I am very much interested in your 

 review. I would like to ask you one question. You made a point 

 which is significant to a lot of us in the Northeast and in some of the 

 big cities. 



What about the reference you made to 15-cent milk? I assume 

 you meant 15 cents a quart to the consumer. How do you propose 

 to put that into eflFect without damaging or destroying the very 

 satisfactory income which the producer is now receiving? 



Secretary Brannan. It would not injure the income of producers 

 at all. If you remember how it operated during the war, I think that 

 would give a complete answer to the question. 



Except for the special arrangements that had to be made because 

 of OPA — I do not think there was any WPB involved in that, but 

 just OPA — it would be operated on just that premise. 



Mr. Hall. Of course a lot of us feel that there is too much of a gap 

 between the price received by the producer of milk and the final 

 cost per quart of milk to the consumer. Did you anticipate doing 

 anything with that stretch in there? 



Secretary Brannan. We are not proposing as a part of the price- 

 support mechanism that you will actually go in and try to examine 

 the markets and see whether unreasonable margins are being taken 

 out of the handling between producer and consumer. Study of this 

 problem is authorized by the Research and Marketing Act and our 

 studies will indicate ways of improving the situation. However, it 

 is not involved specifically here. 



Mr. Hall. I want you to know that I endorse your idea of 15-cent 

 milk to the consumer. However, 1 would like to get a little further 

 information as to how you propose to carry it out. 



Air. Andresen. Will the gentleman yield? 



Mr. Hall. I will be glad to. 



Mr. Andresen. It is my understanding that in the case mentioned 

 hj my colleague from New York where the consumer would get low- 

 priced milk, milk at 15 cents a quart, the Government would make a 

 compensatory payment to the farmer to make up the difference in what 

 he should have received because the consumers get the low-priced 

 milk. 



Secretary Brannan. That is correct, Mr. Andresen. 



Mr. Hall. Would that affect, Mr. Secretary, every milkshed in 

 the country, the Northeast as well as other parts? 



Secretary Brannan. It certainly would. Under the rules of trying 

 to be equitable we would make it apply to all sections. 



Mr. Hall. You do not contemplate making the producer give 

 any ground whatsoever in the proposal? 



Secretary Brannan. None, except as the parity formula itself may 

 require that. 



Mr. Hall, But you do feel that the program you propose will bring 

 about the reduction of the price of milk to the consumer by the 

 quart from, we will say, 22 or 23 cents down to 15 cents, thereby 

 increasing production and making this vital commodity available to 

 many more of our people? 



Secretary Brannan. It might not have to move as low as 15 cents 

 in order to get your maximum production moving, but I suggested 

 that as the area in which it may have to move. 



Then there is a dift"erential between whether you buy it with 

 delivery from the wagon to A^our door or in the grocery store. That 



