GENERAL FARM PROGRAM 179 



Secretary Brannan. That is right. As a matter of fact, there is less 

 than 2 percent of the farms of the country that market that much 

 produce off their land. 



Air. Andresen. But for the sake of illustration and in order to 

 determine the cost to the Government, we will assume that this farmer 

 who could under prevailing prices receive $25,000 for his products, 

 under your proposal sells them for $15,000. Then he would get a 

 ■check from the United States Government for $10,000. 



Secretary Brannan. Of course not. 



Mr. Andresen. Then what would he get? 



Secretary Brannan. You do it by commodities, sir. I tried to say 

 a moment ago that you should not tie that unit limitation into your 

 commodity calculations because it has no part in it. It just sits out 

 here as the last fence. 



Let us take an example you gave me a minute ago. Let us say 

 560 hogs comprise the total of 1,800 units. 



He would sell 560 hogs in the market place and if there was a 

 differential between the average price of all hogs sold in the market 

 place and the support level below which it is not ih the public interest 

 to allow farm prices to fall, the Government would step in and give 

 him a check for that differential. 



It has two very salient factors that I think should always be 

 recognized. The first is that that kind of a proposal encourages 

 efficiency because the man does not get the difference between what 

 he sold his hog for in the market place, but he gets the average. 



Therefore, if he can by better bargaining or by better handling 

 of his commodity, by better finishing, get his price above the average 

 price, he has made just that much in addition. 



That has no relation whatsoever to the unit limitation out here 

 on the end. 



If he sells less than that, he gets the difference between the number 

 of hogs that he sold and the market price. 



Mr. Andresen. If that is $5 a hundred, then he gets a check for 

 $5 a hundred on the differen.^e. 



Secretary Brannan. Let as say he does. 



Mr. And.«:iesen. I do not wa.nt 3^ou to be too critical. I just got this 

 proposal last Thursday, Mr. Secretary, while you and your staff and 

 hundreds of people have been studying this ever since November 2. 



YVhen I ask these questions from yoa it is for the purpose of getting 

 information. 



Se-^retary Brannan. Surely. I beg your pardon if I have appeared 

 to have any tone of criticism in my voice. Let me sa}'', Air. Chairman, 

 if I might, that Air. Andresen just referred to a lot of other people in 

 the Department and people outside the Department. 



For the protection of the professional standing of Air. Scliultz or 

 anyone else outside the department, I would like to say that they have 

 not been -consulted about the program. 



Mr. Andresen. You mean Air. Schultz has not been consultedjj 



Secretary B.fiannan. About these recommendations. I say that 

 quite emphatically. 



Air. .\ndresen. He admits that he has. That is the Dr. Schultz of 

 oleo fame, who used to be in Iowa, I think. 



Secretary B.fiannan. I think if you will put a clear question to him 

 he will answer that he has not been consulted. He certainly has not 



