260 GENERAL FARM PROGRAM 



Now, you have said that the farmers are entitled to parity income. 

 Wliat is it? It is defined by law as the gross income from agriculture 

 which will provide the farm operator and his family with a standard 

 of hving equivalent to those enjoyed by persons dependent upon other 

 gainful occupations. Is it doing it now? If we cannot fix prices 

 today that allow people parity income, why can you not write into 

 your formula a piece of machinery that will progressively move for- 

 ward to it? 



Secretary Brannan. We can. 



Mr. Pace. And not depend upon some possible soil conservation 

 payment or other possible income \vhich, as you know, costs the 

 farmer usually as much as he gets out of it. I want to see you write 

 into this, at least, the beginning where each year the farmers of this 

 Nation will realize their fair share in the standard of living in this 

 Nation. Now, why can you not do that? 



Secretary Brannan. We can, sir. 



Mr. Pace. Let us do it. 



Secretary Brannan. All right, sir. We can give jou the language 

 in very short order, but I will tell you this already, because the figures 

 on the price standard as we compute them came out the way they did, 

 and I have many economists after me now and the leaders of the major 

 farm organizations, all of them telling me that the prices are too high 

 now according to my formula, so I am glad to have your backing, 

 and we will go along with you. 



The Chairman. You are strengthening the floor under the farmer 

 by providing this plan that you have offered to the committee, are 

 you not? 



Secretary Brannan. I think we are, sir. 



The Chairman. In other words, you fix a minimum below which 

 we cannot let agriculture go? 



Secretary Brannan. That is right. 



The Chairman. And you are not putting any limitation on the 

 possibility of going above that? 



Secretary Brannan. That's right. We are not putting on an 

 upward limit. 



The Chairman. In other words, you are not trying to limit the 

 farm income to $26,000,000,000 or any other amount, but you are 

 fixing a floor under it? 



Secretary Brannan. Yes. 



The Chairman. And hope it will go above that? 



Secietary Brannan. That is right, Mr. Chairman. 



The Chairman. And in doing that you have related the income 

 of the farm group to the income of the nonfarm group and you have 

 shown a great disparity or gap between those two groups, and it is 

 your ultimate hope to close that gap. 



Secretary Brannan. Yes, sir, and I do think this formula starts in 

 that direction. 



Mr. Pace. Now, that is just what I am talking about. 



Secretary Brannan. Yes. 



Mr. Pace. Now, Mr. Secretary, let us look at the machinery a 

 minute. 



Secretary Brannan. Mr. Pace, may I say this first? 



Mr. Pace. Yes. 



