350 GENERAL FARM PROGRAM 



Secretary Brannan. There is no difference. They are inter- 

 changeable terms. 



Mr. Pace. Then outside of those 10, in the first priority of group 1 

 commodities, you recommend that all other commodities, 100 or 

 more, be supported in relation to group 1 commodities, taking intO' 

 account the available funds and authorities. Therefore, if you should 

 be left with only sufficient funds to support group 1 , then you would 

 have no machinery and the producers of these other commodities 

 would have no hope of support; is that right? 



Secretary Brannan. That is right. 



Mr. Pace. The method of support is where you come up with an 

 entirely different 10, which I think should be clear. You have 10 

 in group 1. In supporting 10 commodities, you recommend that it 

 be done exclusively by loans and purchase agreements. They are 

 cotton, corn, wheat, other grains, tobacco, oilseed crops, dry beans, 

 dry peas, wool, and peanuts. You propose to support them entirely 

 by loans and purchase agreements. 



Secretary Brannan. I am looking at that now. 



Mr. Pace. I think they are listed correctly. 



Secretary Brannan. I think so. But I think there are the words- 

 "such as" these commodities. In other words, we were not trying 

 to make an exclusive list of these commodities. These were charac- 

 teristic of the storable type of commodities; for instance, sorghums 

 and some of the other storables. 



Mr. Pace. That is the suggested list, then, and not a fixed list? 



Secretary Brannan. Yes. 



Mr. Pace. I am glad to know that. You propose to support them 

 with loans and purchase agreements, but you do ask authority to use 

 production payments under certain circumstances with regard to those 

 commodities. 



What do you have in mind in making production payments in the 

 case of wheat, we will say? 



Secretary Brannan. My own feeling is that from time to time 

 there may be a commodity in there that you could handle better by 

 direct purchase. It has been indicated on some occasions that per- 

 haps direct purchases of wool would facilitate our operations. 



Mr. Pace. But you do ask authority for the discretion to use that 

 in the way you believe it can be handled best? 



Secretary Brannan. Yes, and some cases where we have said other 

 grains, for instance, where there are very small quantities it might 

 be advisable to purchase small quantities of them. 



Mr. Pace. I did not say purchase agreements. T said production 

 payments. Where would you use production payments in wool or 

 wheat? 



Secretary Brannan. Oft'hand, I am not certain that there is any 

 place where we would use it. 



Mr. Pace. You asked for that authority lindex* certain circum- 

 stances, and t was interested to know what those circumstances were. 



Secretary Brannan. T recall th'it we '^ad wool in mind. 



Air. Pace. Mr. Secretary, you liave a third list known as non- 

 storables, either on account of being highly perishablo or on account 

 of the cost of storap:e. You list there fruits, vegetables, meat 

 animals, milk, butterfat, poultry, and eggs. Yoii propose to control 

 those largely by production payments. 



