020 GENERAL FARM PROGRAM 



Mr. Andresen. That is not the general rule. 



Mr. Hill. But there are too many of them. If there is one doing 

 tliat, that is one too many. 



Mr. Andresen. That may be out in the gentleman's district. 



Mr. Hill. I wish it were only in my district. Let us talk about 

 potatoes a moment. You cannot argue with me about it because I 

 know it is true that farmer after farmer has used cull potatoes when he 

 knew full well he should be using the best potatoes he had. Some- 

 where along the line, to bear out Mr. Andresen's theory, it is going 

 to begin to cost too much money. We should begin to use the best 

 jjroducts we have at the point of consumption. That goes for milk. 

 You cannot tell me that there is not farmer after farmer who could 

 use more milk at home. The idea that he has to sell everything and 

 get it into cash is promoted by any subsidy program or price-support 

 program you have. Just think of that for a moment. That is a 

 dangerous situation that we are drifting into where the farmer must 

 sell everything and get the cash for it. 



I am in favor of it because I am in business and I would like to 

 sell him as much as we can, but if we are going to kill the goose that 

 lays the golden egg, as Mr. Andresen says, when we run this thing 

 up to the point where all price supports and subsidies are going to be 

 wiped off the books because of the economic situation, then the f armei- 

 will be in a worse condition than anybody. 



Mr. GRAN(iER. Couiing back to my question on eggs, have you 

 thought out any method whereby eggs could enjoy a support price 

 other than by direct payment? 



Mr. Davis. No. There have been a number of meetings over about 

 a 4-year period of our poultry people on that problem. They are not 

 too well pleased with the purchase program that the Government has 

 now because there is a feeling that it compensates the man who mar- 

 kets the poor quality eggs disproportionately. 



Mr. Gr.\ngei;. You would not be in favor of continuiug the present 

 program of ta^" ng eggs out of the market by drying them? 



Mr. Davis. Oar poultry people would much prefer to have some 

 method that puts greater incentive on the marketing of good quality 

 eggs. This compensatory payment program, I think, appeals to them 

 because there would be an average adjustment at the end of the year 

 and any farmer who could market at a premium because of the quality 

 would be entitled to that compensation in addition.. That is not true 

 of our present purchase arrangement. 



Mr. White. Mr. Davis, as I understand it, you and others who advo- 

 cate the flexible support plan over the rigid or fixed plan advocate it 

 because when it works it has a tendency to reduce production. Is 

 that right? 



Mr. Davis. It has some tendency. In certain commodities it would 

 have a tendency to reduce production immediately. 



Mr. White. Would it uot work on any commodity? 



Mr. Davis. No; I do not think it would work on wheat, for example. 



Mr. White. Then why is it necessary or essential to have a flexible 

 price program if it is not going to aff';^ct pi-oduction? 



Mr. Davis. I think you want a different amount of flexibility for 

 different commodities, but for the long pull Ave have some basic adjust- 

 ments that need to take place in agriculture which are going to require 

 some flexibility. 



