GENERAL FARM PROGRAM 273 



Secretary Brannan. Very frequently. 



Mr. Pace. Now, as I see it, it would probably save millions of 

 dollars to the Government if you had some authorit}^ to have some 

 voice in the marketing of hogs. Do you agree with that? 



Secretary Brannan. And I think the production payment would 

 lend a great deal, because a great deal of the mducement to the orderly 

 marketing is the farmer would realize then he was not running a 100 

 percent risk if he did not hit the market on what he had divmed 

 in advance was the ideal day, and I think he could plan for marketing 

 over the season better than trying to get to the market first, either 

 at the head of the season or ahead of the marketing period within the 

 season. 



Mr. Pace. Outside of the influence the payment might have on 

 the producers, do you contemplate taking any action on your part 

 in having a voice in the orderly marketing of hogs? 



Secretarj^ Brannan. No, sir; not tomorrow, not under existing law. 



Mr. Pace. Although it would be quite a saving to the support-price 

 program of hogs? 



Secretary Brannan. That is right, sir. But, you see, until the 

 commodity gets into the area in which the Government begins to 

 spend money on it, then there is some question about whether or not 

 we are justified in spending money or going to an}^ considerable lengths 

 to regulate the prices in the marketing. 



Mr. Pace. I believe j^ou have asked Congress to give jou authority 

 and funds to make payment on hogs before it adjourns iiiis session. 



Secretary Brannan. I have, sii-. I suggested it mav be desii-able. 



Mr. Pace. That is all. 



The Chairman. Unless Congress provides you with the necessary 

 funds and the necessary authority, if I understand it, you will have 

 to support hog prices by buying them either from the farmer or the 

 packer? 



Secretary Brannan. That is correct. 



The Chairman. In any event, you are going to be faced with a 

 tremendous problem, and everything would indicate the Government 

 would suffer a substantial loss. 



Secretary Brannan. It was our fear, sir. 



The Chairman. But under your proposal, you would compensate 

 the farmer for the difference between the prevailing price and the 

 fail' price and let the hogs go on the market as usual? 



Secretary Brannan. I would, and I think he will not be in any 

 wise embarrassed to accept those checks. 



Mr. Andresen. Air. Secretary, referring to hogs, you recall that 

 here on April 7 you made a statement to this committee that within 

 about 60 da3's you thought the Government would be buying hogs to 

 support the price, and you have since made that statement several 

 times. I am a little fearful that that statement commg from you as 

 a leading agricultural authority in the country has stimulated the 

 marketing of hogs to a disorderly stage so that the price has been 

 forced down from around $19.63, which was the average price iii 

 Chicago on the morning of April 9, to $18.60 on Friday. 



Secretary Brannan. It is lower again today, sir. 



Mr. Andresen. That is not surprising to me, because it looks to 

 me as though a statement coming from you that the Government is 

 gomg to buy hogs within 60 daj^s puts a fear mto the farmer's mind 



