920 GENERAL FARM PROGRAM 



Mr. Pace. Let me get this straight. Would your recommendation 

 be that the to 90 be changed from 75 to 100? 



Mr. HoLMAN. That is right. 



Mr. Pace. Is that your recommendation? 



Mr. HoLMAN. Also with equal participation in the funds available. 

 At the present time we think we are in a distinctly secondary position 

 under the act. 



Mr. Pace. You take exception, and I want to say that I join you in 

 that view, to that provision which simply says that milk and many 

 other products will be supported only if and when the funds are 

 available and in the discretion of the Secretary of Agriculture. 



Mr. HoLMAN. Yes. 



Mr. Pace. You feel that the stabilization of agriculture requires 

 greater assurance to the producers than that language. 



Mr. HoLMAN. We do. 



Mr. Pace. Now, you recommend that dairy products be given 

 credit for the subsidies paid during the war period in the determina- 

 tion of their comparable parity price along with other commodities? 



Mr. HoLMAN. Yes. 



Mr. Pace. I think you are right. I think that butter was held down 

 for the consumers' benefit and the subsidy was paid to bring the return 

 up to about where the producers should get it. 



Mr. Holman. That is right. 



Mr. Pace. You do realize, however, under the 10-year moving 

 average in the Aiken bill that would immediately punish every 

 other commodity, while in the 10-year moving average in the Secre- 

 tary's plan it would not. Do you agree with that? 



Mr. Holman. I do not know that I am qualified to answer that 

 question. 



Mr. Pace. That is, when you give dairy products credit for the 

 subsidy you raise their relative position as to the price they enjoyed 

 during the preceding 10 years, and therefore, raising thehs, you would 

 naturally have to lower the respective parity prices to get rid of the 

 commodity. 



Mr. Reed. I do not believe it would work that way. 



Mr. Pace. Let us use an illustration, that the ceiling price on butter 

 was 50 cents and that the subsidy was 25 cents. When you have 

 gotten your over-all parity figure, when you get into the 10-year 

 moving average, giving each commodity a parity as compared with 

 the market price during the 10-year moving of each of these other 

 commodities, when you raise the market price of a commodity, 

 which you would do by crediting butter with 25-cent subsidy for 

 4 or 5 years, you naturally have to give butter a higher figure and there- 

 fore consume that much of the total, and we would give everybody 

 else a slightly lower figure. You see what I am talking about? 



Mr. White. Do you mean the income support standard? 



Mr. Reed. Are you figuring the income support standard? 



Mr. Pace. No. In the Secretary's plan you would not hurt the 

 others any, because when you added the subsidy you would add to 

 the left-hand column, increasing cash receipts from the sale of com- 

 modities. You may help everybody there because when you added 

 that 25 cents a pound subsidy, the $19,000,000,000 in the left-hand 

 column of the Secretary's portfolio might become $19,500,000,000. 

 Do you understand what I am talking about? You would therefore 



