214 GENERAL FARM PROGRAM 



BEEF, LAMBS, AND CHICKENS 



I do^not suppose anyone on the committee expects us to be in a 

 program of supporting the price of beef cattle and lambs in the near 

 future, but if and when we are, the operation would be analogous to 

 the hog example I have just given. This would also be true with 

 respect to chickens. 



EGGS 



If we undertook to maintain egg consumption at about the present 

 levels, it appears that an annual commercial movement of about 

 4,000,000,000 dozen eggs would be required. Let us assume that 

 production or marketings exceed the 4,000,000,000 dozen figure by 

 300,000,000 dozen eggs. Wliat would be the cost under the present 

 purchase program? 



Based on our experience over the last two seasons, the surplus of 

 300,000,000 dozen purchased as dried eggs would probably cost the 

 Commodity Credit Corporation about $120,000,000. However, this 

 is, again, only the initial cost. Additional costs would be incurred 

 because of transportation, storage, and other charges, which might 

 well run another $52,000,000. Since little or no prospective outlets 

 are available for these eggs, the entire inventory would represent a 

 potential loss to the Government. 



Under the production payment plan, this cost of $172,000,000 would 

 allow a production payment of about 4 cents a dozen on the 4,300,- 

 000,000 dozen eggs available for the commercial market.' This ought 

 to permit a decline in retail prices in excess of 4 cents a dozen and 

 give consumers access to the additional 300,000,000 dozen eggs. 



MILK AND MILK PRODUCTS 



Under the proposed program with regard to milk and its products, 

 we would continue full use of present marketing agreements and orders, 

 extend those programs as and when producers and handlers desire, and 

 continue to use purchases of dairy products as a price-support method 

 wherever this method would be most economical and otherwise con- 

 sistent with the public interest. 



We would not, however, make purchases for which we could not 

 find acceptable outlets. 



We would use the purchase method mainly to relief spot surpluses 

 and seasonal problems which could be met most efficiently in this 

 way. 



The Board of Directors of the Commodity Credit Corporation 

 recently estimated that $20,000,000 may be required in this type of 

 operation between now and the end of this calendar year. We are 

 just coming into the flush milk-producing season, and it is imperative 

 that we make the best possible arrangements to discharge the Com- 

 modity Credit Corporation obligation to support this commodity. 



Wlienever any large-scale operation becomes necessary, we should 

 use the production payment method. As a rule, this would cost the 

 Government about the same amount as would purchases and would 

 make more milk and milk products available to consumers at lower 

 prices than would otherwise be the case. It would also call for a 

 greater consumption of oin- grain and forage production. 



