GEXERAL FARM PROGRAM 269 



Under acreage controls they merely lose this support price. Is that 

 distinction correct? 



Secretary Brannan. I would like to call on Judge Hunter to answer 

 that for me. 



Mr. Hunter. Are 3^ou talking of the present law, Mr. Pace? 



Mr. Pace. The Aiken law provides that the support shall be in- 

 creased 20 percent when either marketing quotas or acreage controls 

 are in effect, and the marketing quota producers only enjoy 50 percent 

 of parity support. 



Mr. Hunter. It is 50 percent of parity price; that is right. 



Mr. Pace. They get only 50 percent, and they suffer those two 

 penalties which I have mentioned. 



Mr. Hunter. That is right. 



Mr. Pace. When they are merely under acreage controls they have 

 one penalty. 



Mr. Hunter. No; they would be noncooperators in that case. 



Mr. Pace. Yes; noncooperators, but they are not subject to a 

 marketing penalty. 



Mr. Hunter. That is right. 



Mr. Pace. Then. Mr. Secretarj^, whether you know it or not, there 

 is quite a growing feeling among farmers who subject themselves to 

 marketing quotas as opposed to those who have only acreage control, 

 for this reason: Take producers of a commodity, you merely put them 

 under acreage control, and then, as Judge Hunter says, they have 

 become noncooperators and lose the benefit of their support prices, 

 but still the farmers can produce all of that commodity they please 

 and they will indirectly get the benefit of the support program, will 

 they not? 



The Chairman. We will take a 5-minute recess. 



(Thereupon, a short recess was taken after which the following 

 occurred :) 



The Chairman. Mr. Secretary, do a^ou recall the question that was 

 last propounded by Mr. Pace? 



Secretary Brannan. I am. afraid I do not. 



The Chairman. Then I will ask Mr. Pace to repeat his question. 



Mr. Pace. Mr. Secretary, the point I am making is that it seems to 

 me to be quite inconsistent with other principles that you propoiuided 

 to the committee to operate merely under acreage controls; because 

 then, let us sa}', you conform, to your acreage allotment; I do not 

 conform to my acreage allotm.ent. Say I treble or c^uadruple my 

 acreage of that comm.odity. As a penalty, I would suffer the loss 

 of the Department's ol^ligation to support the price of m}^ commodity, 

 and, of course, I would suffer the loss of the ACP payments; at the 

 same time, I would receive indirectlv the benefit of the support price 

 program the Department has put into effect, sav the support being 

 90 or 100 percent. 



Mr. Andresen. You mean of basic commodities like cotton? 



Mr. Pace. I mean of anv commodity. Let me put it this way: 

 Under any plan where you use only merely acreage controls or goals? 



The Chairman. Do you use them onh^ on the basic commodities; 

 do you use acreage allotments alone on basic commodities? 



Secretary Brannan. Acreage allotments and marketing quotas on 

 tobacco and peanuts are the only two. 



