GENERAL FARM PROGRAM 929 



which has resulted in heavy expenditures to the Government, and 

 we are interested in trying to offer some sokition to you and to the 

 Congress that woukl bring about a more healthy condition in the 

 potato industry. 



We believe that this condition is partially brought about by the 

 lack of authority to control, to some degree, the potato planting and 

 potato production. We believe it is brought about by the stimulation 

 of price support over the past several years — that the surplus has been 

 brought about by that to some degree. 



We come to present to this committee briefly some views that we 

 believe might be of help in solving this problem and of putting the 

 potatoes in a better light, a little better light, in the eyes of all con- 

 cerned. If I may be permitted, I would like to review the situation 

 back for just a few years. In 1942 it was the opinion of those in 

 charge of supplying foodstuffs, that there was a need for increasing 

 the production of potatoes. We were asked in the various States, 

 by the Department of Agriculture, to increase our production for a 

 short time 



Mr. Pace (interposing). Let me interrupt you in the interest of 

 time. 



Mr. Wescott. Yes. 



Mr. Pace. I think the committee is fairly familiar with the fact 

 that the potato growers were asked to increase production, under the 

 Steagall amendment, and thereby it became a Steagall commodity 

 and therefore enjoyed 90 percent of parity price support. 



Mr. Wescott. Yes. 



Mr. Pace. I just mention that in the interest of saving time, 

 because the committee has that background. 



Mr. Wescott. Yes; does it have the formulas that Congressman 

 Barden mentioned, for the years 1946 and 1948? 



Air. Pace. No, we are not familiar with the formulas. 



Mr. Wescott. All right, I will leave 1943 and go to 1946, or the 

 first year of restriction goals. In 1946 we had goal given to us with 

 price support contingent upon compliance with goals. We had an 

 over-all production in 1946, and it was necessary to buy large quan- 

 tities of potatoes, but in 1947 a new goal was given to us, and the new 

 goal involved a new factor — in fact, two different factors were used 

 and two dift'erent formulas were used. 



Again in 1948 another formula was used, composed of dift'erent 

 factors, giving different weight to different factors. 



In 1947 another formula was used, and we understand that prob- 

 ably for 1950 there is thinking, strong thinking that a new formula 

 would have to be devised for 1950 and some preparation has been 

 made toward that end. 



Now since — in 1945 or 1947 the formula used was the 1941-45 

 average, less 15.25 percent, to bring supply in line with demand, and 

 that was not acceptable under some conditions and circumstances. 

 So another formula for that same year, 65 percent of the 1946 acreage, 

 was used. 



Now in 1948 — and I do not have the exact figures of the 1948 for- 

 mula — but if you will permit I will read the factorsof the 1949 formula, 



A national production goal of 350,000,000 bushels is established. 

 The 5 years, 1943-47 average production by States was determined. 



No. 3, one-fourth of the 3 years, 1945-47 average surplus purchases 

 by States was deducted from each State's average production. 



