692 GENERAL FARM PROGRAM 



Mr. Pace. Then, what do you do with acreage allotments? Under 

 the Aiken bill, yoa can get exactly the same support level with acreage 

 allotments as you do with market quotas; can you not? 



Mr. Hughes. That is right. 



Mr. Pace. Then take wheat. The Secretary announces acreage 

 allotments on wheat. The only penalty the producer would suffer 

 would be two of rather minor effect. One would be he would lose the 

 AC payment, which is the first penalty; the second is he would directly 

 lose the support price on his particular crop. Would he not? 



Mr. Hughes. That is right. 



Mr. Pace. But, as brought out yesterday, you know and I know 

 and everybody else knows that you could conform to your acreage 

 allotment of wheat^ — we will say 50 acres, and say my allotment is 

 50 acres^ — you could conform to yours and plant only 50 acres, and I 

 could plant 5,000 acres under the acreage allotment, and the only 

 penalty I would suffer would be the AC payment, and they would not 

 give Mr. Pace directly, on his 5,000 acres, the support price. But 

 you know Mr. Pace would get the benefit of the support program, 

 maybe somewhere between 95 and 99.5 percent of his support benefit; 

 would he not? 



Mr. Hughes. I would not want to set the percent, but he would 

 get some benefit. 



Mr. Pace. I mean this: If you took your wheat to market and the 

 support price was $2 and I walked up with 10,000 bushels and said 

 "I will sell you mine for $1.90," whose wheat is he going to buy? 



Mr. Hughes. Well, of course 



Mr. Pace. I say whose wheat is he going to buy? He is going to 

 buy mine, is he not? Of course, he is. 



Mr. Hughes. I suppose he would, although the market price is 

 set at the major markets, and it is that same price to everybody out 

 there in the country. 



Mr. Pace. Yes, sir; but there are times when the support price 

 fixes the market price very definitely. 



Mr. Hughes. That is right. I grant you he is going to get some 

 benefit from it. 



Mr. Pace. Not some; he is going to get 98 percent of it. Con- 

 sequently, I personally think if we are going into the business, we 

 should go all the way into the business and say when you make 50 

 acres of wheat and you want the Government, through the United 

 States Treasury, to protect you in the price, that you should "play 

 ball." Do you not think so? 



Mr. Hughes. T think so. 



Mr. Pace. Then why do you recommend here that even though the 

 producers of wheat have turned down market quotas by a vote, 

 they still get the support of 90 to 60 percent of parity without the 20- 

 percent premium? 



Mr. Hughes. We feel that the man who has reduced his acreage 

 and made a corresponding reduction in his production should not 

 suffer at the hands of the man who did not in case market quotas 

 are voted down; that he has made a sacrifice and should be paid some- 

 what for having made that sacrifice. 



Mr. Pace. 1 agree with you on that. I am talking about the guy 

 who does not make any sacj'ificc, who just goes ahead and plants 

 all of the wheat he wants to. 



