GENERAL FARM PROGRAM 467 



Mr. Hill. I am not interested in the qualifications. I am just inter- 

 ested in the fact that j'ou simply break all the farmers. That is what 

 I am driving at. Do you want to do that? 



Mr. Klixe. I want to comment on the suggestion of breaking all 

 farmers. This zero to 90 percent is with these qualifications : They 

 are qualifications such as the public interest, the number of farmers 

 involved, the importance of the national welfare, the ability of the 

 Government to have an effective program, the ability of farmers to 

 cooperate in an effective program; they are all qualifications based 

 on the necessity of instituting a successful program. 



With those qualifications 3"ou have the authority for supi)orts from 

 zero to 90 percent on certain nonbasic commodities. With regard to 

 the act itself, it seems to me that there is a tremendous lack of con- 

 crete understanding with regard to what is in the act. even at this late 

 date. It is not loosely 60 to 90 percent on the commodities covered in 

 the act. Tobacco is at 90 percent. Quotas are always in effect unless 

 they are voted down. The provisions of the act amount to just that. 

 In the case of peanuts, the producers may. unless they vote down 

 quotas, have them in effect at all times and if then the program is 

 successful in adjusting supply to demand, the loan rate would be 

 00 percent of parity. 



With regard to cotton, the act provides that quotas are to be voted 

 upon at any time that the supply is 108 percent of normal or above and 

 if quotas were put in effect this fall and not voted down and the 

 farmers were successful in adjusting production to normal supply, 

 which includes a 30 percent carry-over, by the first of next August 

 the loan would be 90 percent under the act as it now stands. 



It is quite true that with regard to corn and wheat, which may be 

 used as feed, that after very careful consideration, we provided for 

 sontewhat less immediate application of the quota system. 



We have with us this morning Mr. Charles Shuman. who is president 

 of the Illinois Agricultural Association, and if the committee would 

 like. I should be very happy to have him discuss the application of 

 marketing quotas to the Corn Belt area. Of course, you understand 

 that price supports with either acreage allotments or quotas in effect 

 are not loosely zero to 90. They are 72 to 90. 



^Ir. Pace. In the interest of time, the gentleman's question was 

 directed at zero to 90. 



:Mr. Klixe. He said 60 to 90 also. 



]Mr. Hill. I included all of it. because you cannot eet away from 

 60 to 90 and get away from zero to 90 in the law. It is there.' 



Mr. Klixe. We recognize that there is this inevitable interrelation- 

 ship between the various crops because the fundamental resources are 

 soil and men. In many areas they can be used to produce a vast 

 array of commodities which compete one with the other. Therefore, 

 the interrelationship is there whether you recognize it or not. That is 

 quite right and I think tliat is your point. 



Mr. Hii^. Was it your theory that under the Aiken bill you were 

 going to force the farmers to comply with acreage controls and acreage 

 allotments? ' ^ 



jMr. Klixe. If you are comparingr that with some higher level of 

 supports, the answer is that we had hoped to avoid them somewhat 

 longer and to make a dramatic effort in the meantime to so adjust 



91215 — 49 — ser. r. pt. ?, 8 



