356 



GENERAL FARM PROGRAM 



Table 1. — Projections of price support standards for group I or priority commodities- 

 under specified assumptions, 1950-53 ^ — Continued 



2. ASSUMING PARITY INDEX AT 136 « 



1 Calculated according to the procedure outlined in exhibit A of Secretary Brannan's statement. The 

 following special assumptions are involved in both sections of the table: (1) Cash receipts in 1949 are assumed 

 to be $27,500,000,000; (2) cash receipts in 1950 and after arc calculated on the ba^is of their normal relation- 

 ship to prices received by farmers and the physical volume of farm marketings; (3) the physical volume of 

 farm marketings is assumed constant at current levels of 143 (basis 1935-39=100); (4) it is assumed that in 

 each year 1950 through 1952 market prices are oxactlv equal to the price support standards. 



2 The March 1949 level, basis 1939-48=100. 



3 The proposed legislation provides that the prices at which these commodities are to be supported may 

 be reduced by not more than 15 percent below the full price support standard to levels which tlie Secretary 

 determines 'vill reflect desirable feed ratios. 



« Basis 1039-48=100. Is equivalent to a drop of one-half point a month from March 1949 to July 1950. 



Table 2. — Estimated support price range for major commodities based on projections 

 of title II parity prices United States, 1950-53 ^ 



1. ASSUMING PARITY INDEX OF 246 2 



[Work table: Illustrative calculations only] 



Title II of the Agricultural Act of 1948 provides for minimum price support levels for basic commodities 

 (wheat, corn, cotton and tobacco of the commodities included here) which vary with the supply percentage. 

 The 60 percent given in the table is the minimum without allotments or quotas when supplies exceed 130 

 percent of normal. The maximum support level is 90 percent of parity. If acreage allotments or marketing 

 quotas are in effect the minimum support level is increased by 20 percent (from 60 to 72). Support levels 

 given here for nonbasic commodities assume supports in line with supports for basic commodities. Tobacco 

 support prices are at 90 percent of parity whenever quotas are in effect. 



2 April 1949 level (1910-14=100). 



' Equivalent to a drop of one point a month from April 1949 to July 1950 (191()-14=100). 



