GENERAL FARM PROGRAM 303 



range and go right to slaughter, too. I recognize you have a point 

 that must be carefully weighed and will give some concern in adminis- 

 tration. You would pay to the producer who at the same time be- 

 comes the final marketer. 



Mr. Simpson. You have three phases in the cattle industry. You 

 have the man who raises the calves on the range and then they are 

 shipped to the feed lots and then you have the packers. You have 

 three situations there. 



Secretary Brannan. It seems to me if it were paid at the point 

 where the animal ended his life it would reflect all the way back. 



Mr. Simpson. If the range cattle went to the market and the Corn 

 Belt cattle feeder bought them and fed them in a feed box and shipped 

 them to market, he would get the subsidy. 



Secretary Brannan. Of course, you could not make it a provision 

 where two subsidies would be paid. 



Mr. Simpson. No, I understand. 



Secretary Brannan. I cannot say it in good English right now, but 

 it would be where the animal ceased to be in the process of production. 



Mr. Simpson. That would be where he is sold from the shipper to 

 the marketer. 



Secretary Brannan. Or where he walked into the stockyard for 

 slaughter. 



Mr. WoRLEY. I was going to ask you for illustration, Mr. Secretary, 

 if you would assume that Mr. X is running a thousand head of steers 

 now. We will assume your program goes into effect and he has nor- 

 mally run a thousand to two thousand for years. ^Vhat is going to 

 happen to the thousand head of steers that he has now? How would 

 he be affected under you program? 



Secretary Brannan. He would have a support price. Next year, 

 as far as we can tell, his commodity will move into the market at 

 levels above the support price because beef animals are still short in 

 the country in relationship to demand. Some day perhaps if the beef 

 animal supply gets fully adequate it will come down to the support 

 level and then it would start from there below the support level if 

 the Government did not step in. 



The question then arises, how does the Government step in to dis- 

 charge a support obligation. We are recommending that it be done 

 by the production payment plan rather than by the purchase plan 

 which would be the only plan that is now available to us. 



Mr. Abernethy. Will you yield there? 



Mr. WoRLEY. Yes. 



Mr. Abernethy. Mr. Secretary, would there be any limitation on 

 the quantity of cattle that he could raise? 



Secretary Brannan. None. 



Mr. WoRLEY. Would he be permitted to raise all the cattle he 

 wanted to? 



Secretary Brannan. That is right. 



Air. WoRLEY. With no restriction whatever? 



Secretary Brannan. None at all. 



Mr. Albert. Will the gentleman yield? 



What about the 1,800 comparative units? Would that not come 

 into the picture? 



Secretary Brannan. That comes at the time he wants to market 

 them. 



Mr. Albert. I see. 



