498 GENERAL FARM PROGRAM 



He continues to produce abundantly in tliese recessions we have, 

 whereas the rest of the economy tends to have its production unstable 

 and its price stable. 



That is the reason you and I struggle with this matter of farm pro- 

 grams. I think all of us would be delighted if they were not necessary 

 and if the farmer could count on getting a reasonable exchange value 

 for farm commodities without them. 



We recognize the facts of the case; and, therefore, we are for a 

 program. 



Mr. Pace. That is what confused me. There you said that, there- 

 fore, you have recommended machinery to control production. 



Yet, at the top of page 9, you say, "We do not believe the American 

 people can get more by producing less." 



A control is producing less ; is it not ? 



Mr. Kline. It attempts to adjust to effective demand, but any time 

 demand increases or any time by any means the farmer can increase 

 tlie demand we are ready to increase production. 



There is nothing in this that is the kind of monopoly which wants 

 to gouge the public. It is an effort to get a fair return value only. 



Mr. Pace, Let us understand each other. What do you recommend? 

 Are you recommending a program whereby the procluction would be 

 pretty well in balance with the demand ? 



Mr. Kline. We hope to do that. 



Mr. Pace. That is your recommendation ? 



Mr. Kline. We should like very much to be able to have the 

 amount of production which will be reasonably balanced with demand. 



Mr. Pace. Then, that is not abundant production. 



Mr. Kline. We certainly hope that it can be, and we believe that it 

 can be if we can adjust the production in other areas so it is likewise 

 abundant. This is a defensive mechanism in agriculture to try to 

 protect us when other people are not productive, when other areas do 

 control production in order to maintain prices. 



Mr. Pace. I think I see the thing a little more clearly. You are 

 recommending in effect, a control program ? 



Mr. Kline. We have suggested in the testimony and in our support 

 of the bill that not only in the areas covered b}^ the bill by specific 

 provisions— as, for instance, in the basics — but that in other com- 

 modities there should be available, wherever possible, such provisions 

 and techniques as the application of marketing agreements, for in- 

 stance, to do exactly what you suggest by various means, as, for in- 

 stance, by the diversion of inferior quality or the diversion to second- 

 ary uses or by whatever means is reasonably available, to adjust the 

 marketed amount to the effective demand. 



Mr. Pace. Are you recommending that where the Government sup- 

 ports a price there be put into effect either a limitation on production 

 or a control on mai'keting under a Marketing Agreement Act? 



Mr. Kline. It is a very broad statement. In general, the answer 

 is "Yes."' There may be exceptions, but in general that is our approach. 



Mr. Pace. Other than through the payment plan proposed by the 

 Secretary, what is there in the Aiken bill or the present Marketing 

 Agreement Act that will reach out into this great field of nonbasic 

 commodities ? There is no Marketing Agreement Act now that will 

 cover a hundred of these commodities. 



