576 GENERAL FARM PROGRAM 



nature of the farm program since tlie Secretary of Argiculture has 

 submitted it to the committee, because it very clearly does move in 

 the direction of the consumer rather than the farm program in many 

 of its aspects, so that taking all those things into consideration I feel 

 there is very great merit in the suggestions which you have made 

 for the board. 



Mr. Pace. Before we recognize the next witness, let me say that 

 we have one other witness this morning who wants 20 minutes. I 

 would like for the committee to take that into account or we will 

 have to come back this afternoon. 



Mr. Poage. 



Mr. PoAGE. Mr. Goss, I wanted to ask for your suggestions as to 

 using price insurance. I understand that you have given some favor- 

 able consideration to that. Is it your thought that where some kind 

 of compensation might be more easily made to the farmer because of 

 the low price rather than to control that price by controlling produc- 

 tion or by purchasing the entire output or the other devices that we 

 now use, that we might require the farmer to take out some form 

 of insurance and pay him on that insurance rather than simply making 

 a direct gift or subsidy payment to him ? 



Mr. Goss. That is the thought I expressed, Mr. Page. Frankly, 

 the Grange, as a body, has never developed a price-insurance program. 

 We have been for fire insurance for 82 years. We have supported crop 

 insurance for years. We believe in the principle of insurance. Fol- 

 lowing that general line, I felt justified in bringing this thought to 

 the committee. All the public would be benefited if we coulcl have 

 more stability of price, if we could avoid the tremendously high prices 

 and the tremendously low prices. The benefits would be so great 

 that we could well afford to pay what you might call an insurance 

 premium to prevent those things. 



The farmers could pay it as a part of their sales cost if they voted 

 to do it on any commodity, and the benefits to the public would be so 

 great that I believe we might be in about the same position that we 

 are with our Federal Security Administration, where the Govern- 

 ment puts up part of the cost because they believe the whole economy 

 is benefited. 



I suggested that to the committee, but I want to make it clear that 

 the National Grange has never passed upon that particular subject, 

 although the principles of insurance we have endorsed for many, many 

 years. 



Mr. Poage. Since the Secretary has suggested that at least in certain 

 commodities the farmer should have assurance of price through pay- 

 ments by the Government rather than through control of prochiction 

 or through control of the commodity itself after it is produced, then, 

 as I understand it, your idea is that, rather than having those hand- 

 outs from the Government, it would be better that the farmer parti- 

 cipate in a program in which the Government might very well par- 

 ticipate also because of this great public advantage you have suggested, 

 giving the same kind of protection to prices that the Secretary has 

 suggested on those commodities that cannot otherwise be handled. 



Mr. Goss. I am very sure, Mr. Poage, that the Grange would con- 

 sider insurance a very much sounder program than taking all the 

 cash out of the Treasury. 



