494 GENERAL FARM PROGRAM 



75 percent of the 50 percent. Under the hiw now, Mr. Kline, if the 

 producers fail to approve quotas they get support at 50 percent of 

 parity. Then this act provides that the noncommercial area gets 75 

 percent of that, 37i/2 percent of parity. 



Mr. Kline. This 50 percent of parity if quotas are voted down is 

 not the recommendation of the American Farm Bureau Federation. 

 It is in the law, however. All the advantages would accrue in the non- 

 commercial area to producers of corn which accrue to the noncoopera- 

 tors in the commercial area, of course, the ones you have been talking 

 about. 



The price would, after all, be affected by the cooperators. That 

 would be true insofar as they are sellers of corn. As a matter of fact, 

 the differentiation between commercial and noncommercial areas is 

 primarily one which is designed to separate the farmers who are not 

 primarily or even very considerably commercial producers of corn. 

 They produce that for uses in the area which are not concerned pri- 

 marily with the sale of corn. 



Mr. Pace, But that is not the definition of the commercial area ? 



Mr. Kline. Well, a commercial area, as you know, has a definition 

 of so much production in the area. 



Mr. Pace. What do you contemplate in your recommendation 

 would be the support price of corn in the noncommercial areas if the 

 producers in the commercial area disapproved quotas? 



Mr. Kline. Well, 75 percent of the loan in the commercial area, if 

 I am not mistaken. 



Mr. Pace. Then you propose to make it 75 percent of 75 percent, 

 assuming that is where the support level is? 



Mr. Kline. I believe that is right. 



Mr. Pace. Then you would change the provision entirely. You 

 would strike entirely that part of the Aiken bill contained in para- 

 graph (b) on page 7 which says that in the event of the disapproval 

 of marketing quotas the support price will be 50 percent of parity. 



You would repeal that section? 



Mr. Kline. That is right. That is our proposal. 



Mr. Pace. Mr. Poage mentions that that would then leave the non- 

 commercial area with a support price at 561/4 percent of parity, as- 

 suming the commercial area has 75 percent of parity? 



Mr. Kline. That is right. 



Mr. Pace. Before leaving that, let me repeat that it may be neces- 

 sary but I do not believe acreage controls will control, and I think if 

 we are going to have any contorls we might as well have marketing 

 quotas. 



That is exactly what happened in the Irish potato program as you 

 know. . They had goals and they paid no attention to the goals 

 The noncooperators enjoj^ed the same benefits, in effect, as did the 

 cooperators. 



Mr. Kline. Mr. Chairman, the application of marketing quotas 

 to corn, as I am sure you have thought yourself, is an extraordinarily 

 difficult thing, not only because of the widespread production of corn 

 but because of the extraordinary number of people and the lack of 

 necessity for a clear-cut sale, whereby by arrangement it may be sold 

 for its highest priced use. The Illinois Agricultural Association has 

 done quite a lot of work on this thing. Mr. Shuman is here and if 



