172 GENERAL FARM PROGRAM 



That is the one exception to our proposed changes to the static 

 law for 1949. 



Mr. Andresen. Mr. Chairman. 



The Chairman. Mr. Andresen desires to ask you a question, Mr. 

 Secretary. 



Mr. Andresen. Mr. Secretary, you state that you are retaining 

 all the provisions of existing law. Is it not a fact that you are scrap- 

 ping the present parity price system and establishing an entirely new 

 standard based on guaranteed returns to the farmers? 



Secretary Brannan. Mr. Andresen, we are suggesting a revision in 

 the methods of computing the support level for agricultural products. 



For at least the past two decades, certainly since 1938, we have 

 had statutes on the books which prescribed and authorized the main- 

 tenance of support levels. 



There have been a series of computations from time to time, changed 

 from time to time by the law, for reaching those support levels. We 

 have changed the computations. We have modernized the compu- 

 tations. 



We have simplified the computations. But as far as going away 

 from the basic thought, the basic principle, the basic philosophy of a 

 price support system which means reasonable returns to farmers, we 

 have not abandoned that. 



We have changed our approach to it but we have not abandoned 

 it in any way, shape or form. 



Mr. Andresen. Then the newspaper reporter for the AP who was 

 present at your press interview misunderstood what you said when he 

 wrote, as your answer, "By scrapping the present price system and 

 establishing an entirely new standard based on a guaranteed return 

 to the farmers." 



Secretary Brannan. No, I do not think there is any difference in 

 what you just read and what I just said. 



Mr. Andresen. This was a little clearer to me than what you said. 



Secretary Brannan. That is the reason that fellow has that job 

 and I do not. 



Mr. Andresen. Mr. Secretary, I think the chairman understands 

 this, but the idea of cheaper food for the people and really guaranteed 

 incomes for the farmers is rather intriguing if it can be made to work 

 out. 



Secretary Brannan. It is certainly worth talking about, is it not? 



Mr. Andresen. I thinls^ we ought to get down to the costs. I 

 want to ask you some questions in connection with the cost of the 

 program. 



You are retaining a support-price system for the basic commodities 

 of cotton, corn, wheat, rice, tobacco, peanuts, and possibly some of 

 the other grains that can be stored. Is that correct? 



Secretary Brannan. That is about right. 



Mr. Andresen. You will have a support price and a loan program, 

 as well as a purchase program, for those commodities; is that correct? 

 Secretary Brannan. We now have, in the case of the commodities 

 which you named, I think, and one or two others, a program of sup- 

 port by means of loans and pm'chase agreements. 



In some cases we have also gone in and made some purchases under 

 section 32 and for some other purposes. 



Mr. Andresen. That will be retained for those storable crops. 



Secretary Brannan. Yes, sir. 



