GENERAL FARM PROGRAM 657 



the committee, and he and I supported that plan. That is somewhat 

 comparable with the certificate plan you propose. 



Mr. Taylor. Yes. 



Mr. Andresen. Originally the McNary-Haugen proposal contem- 

 plated that the farmer would sell his entire crop and the equalization 

 fee would be deducted, and we were figuring at that time on about 

 10 cents a bushel, and the fund so raised, that the farmer paid in the 

 equalization fee, would be used to export the surplus to world markets, 

 and that fund would take care of the reduced world price. 



Mr. Poage here several times has mentioned about an insurance 

 plan where the producer himself would contribute to the insurance 

 fund, the price fund, that would protect him, and instead of passing 

 this 22 cents a bushel you have mentioned onto the consumers. Has 

 your organization given any thought that you might sell your entire 

 crop at the market price and then take out the equalization fee and 

 get rid of the surplus or at least part of it? 



Mr. Taylor. Yes; we have, Mr. Andresen. As you have stated, 

 there might be some other two-price plan having that feature, but we 

 feel the income certificate plan similar to the bill presented by Mr. 

 Fullmer and Mr. Pierce in years past would be simpler to administer 

 and to operate than the equalization fee or the other proposals for the 

 two-price plan. 



yir. Andresen. I think that is true; although, whenever the wheat 

 farmer markets his wheat, it could be deducted at that time, say 10 

 cents a bushel or 15 cents a bushel. 



Mr. Taylor. That would involve a surplus corporation or some 

 organization to operate the selling of the surplus wheat, and we would 

 like to see free play in producing and selling wheat in the normal 

 market channels and \vith as little Government in business as possible. 

 AYe think our plan would encourage free play in the wheat market. 



Mr. Andresen. But you would want the Government to collect 

 the equalization fee from the millers and others who bought the 

 wheat? 



Mr. Taylor. Under our plan of certificates, the Department of 

 Agriculture would be the one; whether thi-ough Commodity Credit, 

 banks, county committee, or in some other way, there would have to 

 be a set-up for issuing certificates to the farmers and buying and 

 selling. The miller would buy either from the Secretary's repre- 

 sentative or the farmer. 



Mr. Andresen. But the plan contemplates at that point the wheat 

 producer can simply take the certificate to the bank and cash it. 



Mr. Taylor. Yes. The mdler would buy the certificate and 

 report the first sale, and the report of the fu'st sale to the Secretary 

 would be accompanied b}- sufficient certificates to cover the amount 

 of wheat represented by the first sales of such product. 



Mr. Andresen. Are the producers of hard spring wheat and hard 

 winter wheat in agreement with this certificate plan? 



Mr. Taylor. We do not have those in our area. This is a result 

 of the coordinated program of the Pacific Northwest. We have some 

 of those gentlemen here, perhaps, who can speak for that area. There 

 is this problem, of course, that there are other types of wheat — we 

 have soft wheat in the Northwest, and there are other types which 

 have a larger percentage used domestically. But in any program to 

 be effective, whether it is acreage allotment or any other program, 



