GENERAL FARM PROGRAM 271 



Mr. Hope. But you have got to compare both of them in their 

 effect. And, as a matter of fact, on corn, although there were acreage 

 allotments over a period of several years, there were never any market- 

 ing quotas. In the case of wheat, there were acreage allotments for a 

 number of years, but only in 2 years were there marketing quotas, 

 because only in those 2 years did the situation get to the place 

 where the Secretary thought it necessary to proclaim quotas. Yet I 

 would not say the program was entirely ineffective, because it did 

 hold down the acreage and to some extent the production, although 

 I agree with you that in the case of most commodities we could not 

 have an effective program under present conditions without marketing 

 quotas. 



Mr. Pace. I believe you said Irish potatoes was a glaring illustration 

 of that. 



Secretary Brannan. Yes. 



Mr. Pace. That you cannot operate under goals? 



Secretary Brannan. That is right. 



Mr. Pace. What I am trying to reach is that in the operation of the 

 limitation of production, it should be done either by marketing agree- 

 ments or marketing quotas. 



Secretary Brannan. You mean in the commodities we are author- 

 ized to operate in today under existing law? 



Mr. Pace. No, sir; under your plan — under your proposal. 



Secretary Brannan. All right. I think I can answer that one. It 

 depends, again, on whether you are talking about storables or non- 

 storables. Certainly, in the case of nonstorables, where we would be 

 permitted to use production payments, you could run, in my opinion, 

 in many commodities, an effective program bj^ using the production 

 payments and goals, or production payments and acreage allotments, 

 and it would be a reasonably effective program. 



Mr. Pace. How would it be effective? 



Secretary Brannan. It would not be effective if you were using 

 loans and purchase agreements, because the effect of the loan and 

 purchase agreement is to hold the umbrella over everybody. 



Mr. Pace. Of course, you would have a penalty there that does not 

 now exist; that is, the noncooperator would not get the benefit of the 

 paj^ment. 



Secretary Brannan. That is right, under production payments, 

 and that is the real inducement to compliance with goals. Today 

 there is no inducement to compliance with goals, or no very strong one. 

 At least, if it is of any strength at all, it is out-backed or out-pulled by 

 the high price. 



Mr. Pace. Do not you think on many of the nonbasic or other com- 

 modities controls should properly be through marketing agreements, 

 where you control the marketing rather than the production? 



Secretary Brannan. There, again, I think you have to take the 

 type of commodit}" — you have to take that up commodity by com- 

 modity. 



Mr. Pace. You couM apply tiiat to Irish potatoes, could you not? 



Secretary Brannan. The real possibility of getting a marketing 

 agreement on Irish potatoes, with the potato growers diversified all over 

 these whole United ^States the way they are, in my opinion, is pretty 

 remote. 



Mr. Pace. Suppose you predicated support on their getting to- 

 gether? 



