GENERAL FARM PROGRAM 405 



Mr. Pace. If the gentleman will yield, under that idea the family- 

 sized farm would still get the little allotment and the commercial 

 operator would still get the big allotment. 



You would not have advanced one single step as I see it. I agree 

 with the gentleman from Kansas that if you are going to keep your 

 production within demand, then all of it will sell at the support level. 

 Still the big operator would have the big quantity to sell and enjoy 

 and the little operator would have only a little to sell. 



Mr. Hope. He would not have any assurance that he would have 

 a big quantity to sell at the support price. He would only have the 

 assurance of a limited quantity on which he would get the full support. 

 Mr. PoAGE. I do not understand anything in this program to say 

 that Tom Campbell could not grow the same amount of wheat that 

 he can grow under the present program, let us say. 



Mr. Hope. There is not anything that would prevent that except in 

 the program which has been suggested here by the Farmers Union, 

 there is a certain quantity upon which the full support price would 

 go into effect. There is an additional quantity of production at which 

 80 percent of the support price would go into effect and all over that 

 would be supported at 60 percent. That would not affect his allot- 

 ment, if you had allotments, or it would not affect marketing quotas 

 if they were in effect, except as we might change the basis of allot- 

 ments and give some preference to a small farm. 



The large farmer would know when he went into the planting of his 

 crop that in all probability a certain portion of it would not receive the 

 full support price. 



Mr. PoAGE. I understand that, but as far as I understand this pro- 

 gram — and I use Mr. Campbell simply because everyone knows who 

 he is and what he does — he would still have the right to plan just as 

 much wheat as he would have under the present law, would he not? 

 Mr. Hope. As far as this particular provision is concerned, yes. 

 Mr. PoAGE. You suggested he might not plant that much because he 

 could only get a support price on $10,000 worth of wheat, that that 

 is as much as he could produce and sell profitably. That would be 

 the only reason why he would not plant ; is it not ? 



Mr. Hope. Yes ; and I do not think that would hold him down. 

 Mr. PoAGE. That is exactly the point. I do not think that could pos- 

 sibly hold him down if you had reduced the total production to such 

 an extent that you were merely meeting the needs and were going to 

 hold the whole price up. 



Then he would know that on that production on which he did not 

 get a support price, that the market would give him that price. 



If you are going to guarantee him $2.19 a bushel for 5,000 bushels 

 and you are going to guarantee him some more for 2,500 bushels bej^ond 

 that point, if he figures he will only get $1.25 a bushel for the other 

 100,000 bushels, he will not raise that large amount. You must 

 either restrict it so at this time that you do not have any surplus 

 at all, and then you have run the cost of living up to everybody, or 

 you are going to have some surplus and if Mr. Campbell only grows 

 10,000 bushels excess, what happens to your price here? Your price 

 is fixed at $2.19 a bushel. Mr. Campbell offers 10,000 bushels of wheat 

 at $2.09 a bushel. Who sells the wheat? Is the Commodity Credit 

 going to sell any wheat at $2.19 as long as there is a single bushel of 



