GENERAL FARM PROGRAM 485 



During that period of time we discovered in many areas rather dra- 

 matic difficulties. 



One of them is in the field of controlling feed units. Livestock is 

 the major use for a vast amount of production from the land. We 

 had very great difficulty in that area. 



iSTow we have come along in a period subsequent to the war and have 

 suggested price supports nt 60 to 90 percent, to be sure, but with any 

 of the sort of the controls in effect which would be necessary to give us 

 90 percent under the proposals for a higher and rigid price support, it 

 is 72 to 90 percent. 



Tlie old one was 52 to 75 percent. We think there are very good 

 reasons for discovering the difficulties involved here and working them 

 out to the very best of our ability rather than stepping over into what 

 seems to us a^ completely new and different approacli, of which the 

 major element is administered prices. 



We make the point that we are thoroughly convinced that it means 

 a vast extension of regimentation and control and that the further 

 one tries to vary from the economic price, the greater the control. 

 If you want to dam a stream and change the level of the water 5 

 feet, there is no great intent on the part of the water, seemingly, to 

 get through the dam. 



But if you change the water 50 feet, it is quite different. 

 Mr. Hope. Do you contend that if you announce the price before 

 the crop is put in the ground, that that is an administered price and 

 if you anounce it at harvest time that it is not an administered price? 

 Mr. Klixe. No ; I would not make that contention. 

 Mr. Hope. Then what is the real objection to announcing, prices 

 before harvest time if you want to influence production so the farmer 

 will not be proceeding in the dark but will have some idea of what he 

 is doing. 



Mr. Klixe. It is tied up with the statement which we made that 

 farm prices should help in guiding production. Farm prices also 

 will help in getting consumption. If we are successful in controlling 

 production we will have a higher loan; if we are unsuccessful, we 

 will have a somewhat lower loan, but it will help us to move the com- 

 modit3^ There are some commodities where it is not as apparent as 

 in others. 



But in a commodity like corn, it is very obvious that people decide 

 whether to feed their cattle a little corn or not on the basis of the price 

 of corn and the price of cattle. 



Mr. Hope. But we are talking about influencing the production. 

 That is where you have to start. If you are going to influence the 

 production of corn you do not wait until after it is harvested. 



That might have some influence on a farmer's feeding operations 

 but it certainly would have no influence on his planting operations. 



Has the American Farm Bureau Federation at its national con- 

 vention or at its board meetings ever considered this question of 

 forward pricing or whether tlie price should be announced in advance 

 if you expect to influence production? 



Mr. Klixe. Yes, sir; we considered, I think, all of the proposals 

 which were currently in the air when we made out our program. I 

 think we do every year consider all these major propositions like 

 forward pricing. It is just a question, it seems to me, of whether we 



