304 GENERAL FARM PROGRAM 



Secretary Brannan. He can raise breeding stock, he can raise 

 blooded stock, he can carry on a considerable enterprise without ever 

 bumping into that. 



Mr. Albert. He would be limited by the 1,800 units if that part 

 of the program were enacted. 



Secretary Brannan. That is right, when the commodity started 

 to move toward the market. 



Mr. WoRLEY. Say he increased his herd to 2,000 head. Wliat 

 would happen to the remainder? 



Secretary Brannan. Mr. Worley, are you bothered about the unit 

 rule or about the method of operating a support price? 



Mr. Worley. I am trying to see just what would happen to a 

 fellow who had a thousand head of steers and who wanted to increase 

 that to 2,000 head. 



Secretary Brannan. I see no objection to his going right ahead and 

 increasing it. 



Mr. Worley. But what will happen to him? The price will go 

 down if he gets too big a supply, will it not? If all the producers 

 produce too many cattle the price will go down, is that not right? 



Secretary Brannan. That is right. 



Mr. Worley. Is there not some kind of restriction on him as to the 

 number of cattle he can market? Where does that come into play? 



Secretary Brannan. We have never applied one and for the next 

 few years I do not see the likelihood of having to apply one. There is, 

 of course, the theoretical possibility that you can produce too much 

 of anything and some day you would reach a place where you would 

 probably ask the livestock producers if they did 7iot think they were 

 producing more than the market could absorb at reasonable prices 

 and if they did not want to do something about restricting their own 

 production. 



Mr. Worley. It would not be a very satisfactory program as far 

 as the cattlemen are concerned, lou say your program would not 

 make any eflt'ort to restrict their production? 



Secretary Brannan. Unless you want to refer to the unit thing. 



Mr. Worley. That is one phase I also want to refer to. Wliere 

 does the unit rule come into place as far as cattle are concerned? 



Secretary Brannan. The unit provision applies only as he nlarkets 

 his product. If he exceeded the number of units interpreted into 

 cattle, that the Congress should fix as a part of the law, he would 

 enjoy no price support for the excess. If he wanted to sell the animals 

 for slaughter they would have to move into the market place at 

 whatever figure they could command. 



Mr. Worley. Then the Government would give a cattleman a 

 direct check, a check for the difference between what the cattle 

 brought and the support price, is that correct? 



Secretary Brannan. No. Only when the price of cattle would go 

 below the support price would any checks be issued. We are back 

 now on method again and away from limitations. 



Speaking of methods, only when the animals are sold in the market 

 place at below the support price would the Government step in in any 

 manner. We do not even step in now until that time. 



Mr. Pace. Then only on the 1,800 units. 



Secretary Brannan. That is right. 



