902 GENERAL FARM PROGRAM 



and when producers and handlers desire, and continue to use purchases of dairy- 

 products as a price-support method wherever this method would be most econom- 

 ical and otherwise consistent with the public interest. 



We would not, however, make purchases for which we could not find accept- 

 able outlets. 



It seems to me that there is considerable divergence between the 

 emphasis Mr. Brannan places upon dairy products in his original pro- 

 posal and in his April 25 statement. 



The dairy industry is one whose operations must be planned years 

 in advance. It cannot proceed satisfactorily under any program 

 which is fraught with uncertainty with respect to aims, interpretations, 

 or tenure. It should be in the position of knowing for just what it 

 can count upon the Government and under what circumstances and 

 terms that aid will be forthcoming. It should be aid which is manda- 

 tory upon the Secretary of Agriculture to provide and not a matter 

 within his discretion. The long-term plans under which the industry 

 must operate, if it is to do its best job for the dairy farmer, makes 

 security essential. And only an act of Congress can provide that 

 security. 



At the present time, manufacturing milk appears to have ample 

 security until the end of this calendar year because of the Govern- 

 ment's purchase support program for nonfat powder and butter and 

 with indications that this purchase program will be applied to cheese 

 if necessary. But the industry does not operate on a calendar-year 

 basis, nor does it base its plans from month to month. It needs badly 

 a long-term assurance that its prices will not descend below a certain 

 minimum level. H. R. 2200, if continued into the future, or the 

 Agricultural Act of 1948, with certain changes to provide without 

 question the aids we need, will accomplish the desired ends. 



Mr. Pace. Thank you very much, Mr. Gordon. 



We will be delighted now to hear Mr. William O. Perdue, general 

 manager, Pure Milk Products Cooperative. 



Mr. AiuRRAY. Mr. Chairman, may I say Mr. Perdue's cooperative 

 is part of the National Cooperative Milk .Association; so that he does 

 not care to appear. 



Mr. Pace. We will be delighted, then, to hear from Mr. J. O. 

 Lund, president, Minnesota Creameries Association. 



Mr. Andresen. With your permission. Air. Chairman, I would 

 like also to introduce Mr. Lund. He happens to be a farmer in my 

 home county. He is also manager of the local creamery, and the 

 creameries of Minnesota showed good judgment by electing him their 

 president. So he speaks from the grass roots and knows what he is 

 talking about. 



Mr. Pace. Mr. Lund, of course, that makes your appearance all 

 the more interesting. May I say, also, that you and your people 

 have shown good judgement in being represented in Congress so ably 

 })y Mr. Andresen. 



Mr. Lund. Thank you. 



STATEMENT OF J. 0. LUND, PRESIDENT, MINNESOTA 

 CREAMERIES ASSOCIATION 



Mr. Lund. My name is J. O. Lund. My home is at Zumbrota, 

 Minn. I own and operate a hundred-acre farm where 20 cows are 

 milked. I am manager of the Farmers Cooperative Butter and Cheese 



