GENERAL FARM PROGRAM 351 



Socretary Brannan. By ])ro{liiction payments. 



Mr. Pace. Supplemented by direct Government purchases. 



Secretary Brannan. Yes, where necessary. 



Mr. Pace. On direct purchases, do you propose to use that in 

 connection with the school-hinch program, whatever commodity is 

 purchased? 



Secretary Brannan. School lunches may be a disposal outlet for 

 them. 



Mr. Pace. Do you propose to confine those direct purchases to 

 section 32 money, or do you ask for additional funds to make direct 

 purchases? 



Secretary Brannan. There is section 6, which is used sometimes 

 for direct piu'chases. 



Mr. Pace. Section 6 of what, Mr. Secretary? 



Secretary Brannan. It is part of the school-lunch section. Some- 

 times, rather than going into a market and establishing all the ma- 

 chinery which might be necessary to carry on a production-payment 

 program, we might go in and withdraw them by some other means. 



Mr. Pace. I agree with you entirely, but the question in my mind 

 was what money you proposed to use. 



Secretary Brannan. We would use Commodity Credit Corporation 

 funds in those cases, and we might be reimbursed in the commodity 

 credit bv section 32 or out of section 6. 



Mr. Pace. You also propose that in case the situation requires it 

 you be authorized to use the surpluses you pin-chased by direct pur- 

 chase in a stamp plan. Does the legislation 3^ou propose to submit 

 set out a stamp plan? 



Secretary Brannan. No, sir, and we say we think this will be a 

 substitute and eliminate the need for a stamp plan. 



Mr. Pace. T think in your statement you asked for authority to 

 make direct Government purchases of these nonstorables to divert 

 them from normal channels of trade through methods such as the 

 stamp plan and the school-limch program. 



Secretary Brannan. No; T do not think so. We very carefully 

 tried to say that we had weighed the use of the school-lunch program 

 and thought that a production-payment plan might allow the food 

 to flow out far enough that it would not be necessary to conduct a 

 stamp plan. 



Mr. Murray. Will you yield? 

 Mr. Pace. Yes. 



;Mr. Murray. I wanted to see if I got that straight on perishables. 

 I wondered when they have a milk-marketing agreement in the milk- 

 sheds how this would apply to that. Would you discontinue the milk- 

 marketing agreements? 



Mr. Pace. No; he recommends that they be continued and the 

 payment plan be supplemented. 



Mr. Murray. Then, how about the manufactured dairy products 

 that would have 67 cents instead of the 59 we have now? Would 

 that apply to all manufactured dairy products? 



Secretary Brannan. We have not said anything about 67 cents. 

 Air. Murray. You had that in your list. I have looked it up since 

 I questioned you about it. 



Secretary Brannan. You mean for butterfat on the list of support- 

 price estimates? That is right. 



