616 GENERAL FARM PROGRAM 



Mr. Pace. I know it lias not been in force, but it still seems to me 

 a constructive way to approach the problem. I share the view you 

 and Mr. Poage — and I think most of the members of this committee — 

 hold, that the producers of all commodities should have equal treatment 

 at the hands of the Government. I do not subscribe to the Secretaries 

 principle that only the producers of those connnodities that repre- 

 sent the greatest part of the farm income are entitled to it. I think a 

 man who has put his money in the raising of tung oil has his economic 

 welfare just as seriously at stake as tlie man who has put his money in 

 the wheat field. It seems to me consideration must be given to that 

 feature. 



Now, let us go to your recommendations a minute. Do you or do 

 3^ou not approve of the Secretar37's production payment proposal? 



Mr. Davis. We would approve of it on an experimental basis. I 

 think. It seems to me that you need some experience with a thing like 

 that before you go all out to apply it. 



Mr. Pace. That is where you put us in an awkward position. On 

 the whole I think it can be said that you do not approve the Secretary's 

 proposal but your poultry division wants paj^ments. The potato 

 people came in here last w'eek and they condemned it but they wanted 

 payments. You w' ill agree with me that if the poultry people have it 

 everybody else is entitled to it. 



Mr. Davis. It seems to me we are in a situation where we have had 

 15 years' experience with certain commodities and certain types of 

 programs. We know pretty much their strong points and their weak- 

 nesses. I think the commodities that have had those are, on the whole, 

 pretty willing to keep them, with a few minor adjustments, perhaps. 

 We have a lot of commodities on which we have had no experience. 

 T think we are going to have to take this thing one step at a time, 

 feeling our w^ay as we go along into these areas where we have had no 

 experience. I would rather see us give compensatory payments a try 

 on some of the commodities that need it most urgently or on some 

 commoditities where it looks like it is more practical. 



One thing that bothers me on hogs is that the price of cattle follows 

 the price of hogs and I do not know where you would wind up if you 

 put it on hogs. You might be forced soon to put it on cattle. 



It seems to me eggs might be a better product in that respect because 

 it would not affect the price of cattle or hogs or anything like that. 



Mr. Pace. In other words, your recommendation is that we try it out 

 on eggs? 



Ml'. Davis. Yes, eggs is the one I would recommend if some com- 

 modity is to be tried. 



Mr. Pace. What about dairy products? 



Mr. Davts. I do not know. Your dairy producers have worked out 

 pretty good programs with the marketing agreements and marketing 

 orders. 



Mr. Pace. They do not seem to be happy. 



Mr. Davis. Our dairy people have not said they want the compen- 

 satory payments program. They may change their minds later, but 

 they have not gotten to the point yet where they tell us that that is 

 what they want. I cannot honestly tell you that that is what I think 

 they should have. 



Mr. Granger. Will the chairman yield? 



Mr. Pace. Yes. 



