GENERAL FARM PROGRAM 233 



Mr. Pace. That is right. Then, the only time that you propose to 

 use the payment plan is in those cases where there is a sui-plus. 



Secretary Brannan. That is right. 



Mr. Pace. And you would use the payment plan only for the pur- 

 pose of permitting the consumer to have the benefit of the surplus on 

 a price basis rather than your taking the surplus over at an equal or a 

 greater loss? 



Secretary Brannan. That is right, su\ 



Mr. Pace. Now, those are your fixed opinions on this question, 

 Mr. Secretary? 



Secretary Brannan. That is right, 



Mr. Pace. I think they are very important. 



Mr. WoRLEY. Will you yield, Mr. Hope? 



Mr. Hope. Yes. 



Mr. WoRLEY. I was very much impressed with, the line of questions 

 that the gentleman from Kansas was askmg. I understand you to 

 say that you will estimate production in line with what you consider 

 an abundance; in other words that you will be on the long side of 

 production rather than the short side? 



Secretary Brannan. Yes, sir. 



Mr. WoRLEY. As consistently as you can be? 



Secretary Brannan. Yes, sii\ 



Mr. WoRLEY. When you secure overproduction then prices to the 

 consumer come down and they will thereby benefit from price reduc- 

 tion? 



Secretary Brannan. Yes. 



Mr. WoRLEY. Then, in turn, you will reach into the Federal 

 Treasury and pay the farmer the difference between the price he gets 

 and what he ought to get under your parity formula? 



Secretary Brannan. That is right. 



Mr. WoRLEY. Then, in effect, the consumer alone will not neces- 

 sarily be paying for that all by himself, but the farmer and everybody 

 else who pays taxes will be paying his proportionate part of the 

 program costs? 



Secretary Brannan. That is correct, Mr. Worley. May I also 

 add that when that surplus goes into the market under the present 

 law you would also be spending some money and the consumer would 

 not get the benefit of the lower price. 



Mr, Worley. That is the point. 



Mr, White. Will the gentleman yield for a question? 



Mr. Hope. Yes, on this particular question, but I would rather 

 stay on this subject matter. 



Mr. White. No; I would not say that it is exactly on that point. 

 Go ahead and finish, Mr. Hope. 



Mr. Hope. I am almost through. I have only a few more questions. 



Mr. White. All right. 



Mr. Hope. I simply want to go a little bit further now in our 

 suppositions here. Assuming that we do have a suipliis in a good 

 many commodities, and prices have been lowered to the consumers 

 so that they are paying considerably less than the fair income standard 

 level upon which the farm price is being supported, under those 

 circumstances I am wondering if it would not be rather difficult to 

 get prices back to a level to the consumer that would enable you to 

 carry out a fail' income support program without costing a tremendous 



