634 GENERAL FARM PROGRAM 



Oregon. Do you know, Mr. Bell? Have you seen the figures on 

 that? 



Mr. Bell. No; I have not. 



Mr. Hope. They have a schedule worked out for the ports. This 

 $1.50 in Kansas would be based on a little over $1.80 at Galveston, 

 but it is $1 .80 at Fort William. There would still be quite a subsidy. 



I think the computation now is that 90 percent of parity on the 

 next crop would be about $1.95 in Kansas. If the world wheat 

 agreement price, based on Kansas, was $1.50, you would have to have 

 a 45 cent subsidy this coming year. That would be the maximum. 



Mr. Sutton. Mr. Hope, according to his plan of support prices on 

 food consumption alone of only 500,000,000 bushels, you would not 

 have to subsidize by 45 cents this competitive crop which you have, 

 the crop that is competitive in world trade. 



Mr. Hope. You would not need to subsidize that. 



Mr. Sutton. I am assuming that this 500,000,000 bushels would 

 he consumed in America. 



Mr. Hope. There would be no subsidy involved. You could 

 support that by a loan or by some of the purchases from the Govern- 

 ment or by the certificate plan, which was mentioned here a while 

 ago. Of course, if you let the rest of it go at the world price, whether 

 it was under the wheat agreement or without the agreement, there 

 would be no subsidy needed in that case. 



Mr. Pace. How important is the wheat agreement when, as I 

 understand it, it covers only a small percentage of the American crop? 

 What arc you protected for, 180,000,000 bushels? 



Mr. Hope. There is 168,000,000 bushels allotted as our share of 

 the 450,000,000 bushels that is covered by the agreement. 



Mr. Pace. 168,000,000 bushels? 



Mr. Hope. Yes. But in addition to that, as long as we occupy 

 Germany and Japan we will probably have an outlet for another 

 150,000,000 bushels. I think it is a httle more than that this year. 

 Probably for the life of this wheat agreement, which is 4 years, we 

 will have an outlet for something over 300,000,000 bushels if the 

 agreement works out and the countries go ahead and take what they 

 have agreed to take and we still occupy Germany and Japan. There 

 would be an outlet for something over 300,000,000 bushels that we 

 are pretty certain of, plus 500,000,000 bushels for human consumption 

 and 75,000,000 bushels for seed and 25,000.000 for industrial uses and 

 100,000,000 bushels for feed. That would be about 1,000,000,000 

 bushels, if my figures are correct. 



Mr. Pa.ce. Let me ask you right there, do you agree with the 

 witness that your wheat production in the next few years will not 

 exceed 1,000,000,000 bushels? 



Mr. Hope. If there was an outlet for it, it probably would exceed 

 1,000,000,000 bushels. These have been extraordinarily high pro- 

 ductive years and the acreage is considerably larger than it was before 

 the war. It has been stimulated, of course, by the price. New 

 varieties, and better methods of farming have increased the yields. 



Mr. Pace. How about disease control? 



Mr. Hope. Disease control has contributed. Of course, we are stiU 

 going to have the good varieties. Disease control will undoubtedly 

 be improved. 



