GENERAL FARM PROGRAM 899 



level he permitted to drop below 75 percent of parity. I might inter- 

 polate at this point that at no time have the supports for dairy products 

 ever been used by the Secretary at less than 75 percent of parity. 

 This follows the principle of the Hope-Aiken Act but does not follow 

 the formula ail the way. We have not been able to determine any 

 accurate, dependable formula as yet; consequently, we have suggested 

 here that for the present it will have to be a matter of judgment by 

 the Secretary of a yearly announcement of support prices upon which 

 dairy farmers could depend. Further, we believe that dairy product 

 support levels should be announced, as I have said, at the beginning 

 of the marketing year and be in effect for a full year thereafter. 



We think that the methods of applying parity in determining sup- 

 port levels of manufactured milk should be set forth specifically in 

 the act. As it is now, support levels can be computed in a number of 

 different ways, and these are not spelled out in the act but are left to 

 administrative determination. The dairy farmer is thus in the 

 position of not knowing what to expect from year to year with refer- 

 ence to support prices. 



We now have on the statutes the Agricultural Act of 1948. The 

 act needs amendment as indicated above. Milk and its products 

 should have a more positive position under the act and its benefits 

 than it has now. 



With such inclusion, the Hope-Aiken Act should be given a fair 

 trial before it is abandoned in whole or in major part for some different 

 type of program. During the period since 1933 we have run the 

 gauntlet from legislation designed to control the output of dairy 

 products, to proposals to vastly increase the output and consumptio*!! 

 of dairy products through a system of dairy subsidies. Wliile appre- 

 ciative of the degree of support tendered heretofore by the Government 

 dairy farmers generally wish to avoid the complete control of pro- 

 duction and marketing of dairy products by the Government. 



The leaders of our federation believe it is desirable to expand the 

 production and consumption of dairy products under a system of free 

 enterprise. That means as fast as the consumers can take it. Con- 

 sumers of this country are not now purchasing, at fair prices to pro- 

 ducers, the present production of about 117,000,000,000 pounds of 

 milk per year. 



Mr. Murray. Does that "not" belong in there? 



Mr. HoLMAN. Consumers are not now pm-chasing, at fair prices to 

 producers, the present production of about 117,000,000,000 pounds 

 of milk per year. 



Mr. Murray. But the Government is not buying milk? 



Air. HoLMAN. The Goveriunent is buying butter, and the Govern- 

 ment is buying dried milk. 



Mr. Murray. I see. 



Mr. HoLMAN. We, therefore, think it highly inappropriate to 

 launch upon a program designed to further increase the production 

 of milk in view of the cojisumption possibilities and habits of this 

 country. We do not desire to see consumers become habituated to a 

 price level for milk and its products which is too low in relation to 

 what would prevail if no subsidy program were attempted. We do 

 not desire to be placed in a position of pleading for subsidies continually 

 as would be the case if a larger volume of milk were produced by the 

 subsidy plant. 



