930 GENERAL FARM PROGRAM 



Two-fifths of the 2-year, 1946-47, average production from acreage 

 planted in excess of goals by States was deducted from each applicable 

 State's average production. 



The residual number of bushels by States represented each State's 

 proportionate share of a 350,000,000 bushel crop. So, 0.8687 multi- 

 plied by residual production equals 350,000,000 bushels. 



Resulting goal production by States was converted to acres by 

 dividing by the 3-year, 1946-47-October 1948 average yield per acre 

 by States. 



Resulting State acreage w^as divided between commercial and non- 

 commercial acreage on basis of best available information on current 

 division furnished by State PMA offices. Commercial acreage is 

 defined as tlu-ee or more acres of potatoes on an individual farm. 



Resulting commercial goals were reduced to 90 percent of 1948 

 commercial planted acreage in all States where tent3,tive goals were 

 higher than this figure. 



Resulting commercial goals in all States were increased by 4.5 per- 

 cent in order to balance out to 350,000,000 bushels production except 

 that no State was assigned a commercial goal higher than its 1947-48 

 average commercial planted acreage. 



Mr. Pace. All right, thank you. 



Mr. Hardy. I would like to ask if any member of the committee 

 understands that formula? 



Mr. PoAGE. Do you? 



Mr. Wescott. These formulas in many States created a lot of cases 

 of overplanting and caused dissension among other States, in the 

 States that had tried to comply with goals, and has been responsible 

 for numerous meetings and hearings from time to time in an effort 

 to meet that criticism. 



Now we submit to you this morning, Mr. Chairman, what we 

 think is a simple, sane solution to arriving at the acreage goals, and 

 as was stated in the beginning, the States of North Carolina, New 

 Jersey, Virginia, and New York are in agreement, definite agreement, 

 on this proposal, and I shall read it to you, the proposal, a copy of 

 w^hich has been passed out. 



First. We recommend a flexible price support system allowing 

 the Secretary of Agriculture to set support prices from 60 to 90 

 percent of parity. 



Second. That compliance with acreage goals and marketing 

 agreements in areas where feasible be a condition of eligibility for 

 price support. 



Third. That a definite formula for determining State potato 

 acreage allotment or goals be incorporated in legislation to establish a 

 permanent base. We recommend that the simple average for the 

 preceding 7 years be determined; that the simple average of the 

 States' 7-year goal acreage be determined; and that each of these 

 two averages be given equal weight in arriving at the States' goal, 

 recognizing at this time that restricted goals have been in existence 

 only 4 years and the necessity of using 4 years in establishing the 

 original base, but containing this procedure until such time that the 

 7-year goal can be incorporated as a result of accumulation during the 

 next 3 years. 



