236 GENERAL FARM PROGRAM 



The Chairman. Is it not a fact, Mr. Secretary, that the cost of the 

 ordinary raw materials to the farmer in many instances is neghgible 

 compared with the ultimate cost that the consumer pays? 



Secretary Brannan. That is correct in the case of many com- 

 modities. 



The Chairman. You are trying to protect farm income, but you 

 are not trying to protect it by the further control of prices that farm 

 commodities are authorized to go to? 



Secretary Brannan. That is right. 



The Chairman. TVhereas when rent is either lowered or lifted it 

 immediately reflects itself on the tenant. 



Secretary Brannan. That is correct. 



Mr. Hope. You do not mean to say that this would not affect the 

 ultimate consumer. 



The Chairman. But in a much less degree. Suppose you add a 

 penny a pound to the price of cotton, it never reflects itself in the 

 price of a cotton shirt. You can add 5 cents a pound to the price of 

 tobacco and it is never reflected in cigarettes. 



Mr. Hope. Wliy not put the price up then where we want it? 

 What benefit will the consumer get if the price the farmer gets does 

 not affect the price the consumer pays? 



The Chairman. It will on certain commodities. 



Mr. Hope. That raises one more question. If you are going to 

 achieve this ultimate objective of doing something to see that the 

 consumer does get the benefit of these lowered prices, assuming he 

 does not get it, there is the question of the wheat price and the bread 

 price that you have discussed in the press and that I have discussed 

 in the press. The price of wheat has gone down more than a dollar 

 a bushel and yet the price of bread is still about where it was before 

 that decrease in the price of wheat. Would you consider it part of 

 your job or part of Congress' job to see that the Government followed 

 through in a case of this kind and made sure that the consumer got 

 a lower price? 



Secretary Brannan. I think that is one of the areas into which 

 we are intending to get, or the Congress intended us to get into in the 

 Marketing Research Act, and that is perhaps the best avenue of 

 approach to that phase of the problem. 



Mr. Hope. Well, of course, that is a matter of better marketing 

 methods and that sort of thing, but would you feel the Government 

 had an obligation to go any further than that under a progi'am of 

 this kind? 



Secretary Brannan. Well, Mr. Hope, I would not like to be in a 

 position of reciuiring some kind of control to establish processors' 

 margins, freight rates, and all of the rest of the things which are 

 incidental to getting goods from the farm to the consumer as part 

 of the price-support program. 



I think the price-support problem is sufficiently complicated with- 

 out trying to get also into the processors' margins and costs and those 

 aspects of it, although I certainly agree with you that it is an area 

 that should be looked into. 



Mr. Andresen. Will the gentleman yield? 



Mr. Hope. Yes, go ahead, Mr. Andersen. 



Mr. Andresen. On the price of bread and getting lower bread and 

 pastry prices for the people, how can you do that when you consider 



