936 GENERAL FARM PROGRAM 



price-support program. They worked out what they thought, at that 

 time, was a program that was practical, workable, fair to the con- 

 sumer, and equitable to the potato grower. 



We would like to remind this subcommittee of the most pertinent 

 recommendations at that time. 



1. That potatoes be supported on a flexible price support basis 

 which would allow for adjustment as circumstances seemecl to require. 



2. They recommended that potatoes be supported at a price not 

 less than 60 percent nor more than 90 percent of parity. They 

 specifically recommended a support price materially lower than the 

 90 percent then in effect. 



3. They asked that, where feasible, marketing agreements be made 

 one of the requirements of eligibility for price support, thus guarantee- 

 ing to the consumers the best that was produced. 



(a) We do not believe it is right for the Government to be buying 

 good ptotatoes for diversion while industry is putting the culls on the 

 market. 



{b) We feel that under the price support program we are obligated 

 to give the consumer the bjst grades and not the poorest. 



4. They recommended that acreage controls, production, and mar- 

 keting controls and other means be made available to the Secretary 

 to use as circumstances demanded. 



Following those recommendations, the Secretary of Agriculture 

 reduced the rate of the support price for potatoes from 90 to 60 per- 

 cent of parity and potato producers have acceptad and are supporting 

 this very sharp reduction in the support price. 



Again, as recently as February 23, 1949, the National Potato 

 Council gave full approval to this lowered support price program by 

 by saying to Members of Congress, and to the Department of Agri- 

 cultm*e, that it believed the current program should be given a fair 

 trial before changes were made. 



For the last 2 days, the National Potato Council has again been in 

 session and again welcomes the opportunity to present to this group 

 our recommendations for what we think would be a sound and work- 

 able program that would be fair to the groAver, fair to the consumer, 

 and satisfactory from a standpoint of administration by the 

 Department. 



The council still believes that the current program has merit, but if 

 the Congress is planning changes in an over-all agricultural program, 

 the National Potato Council has certain recommendations to make. 



In brief, we present the following main points that we feel should be 

 incorporated in any long-time agricultural program developed by this 

 Congress: 



1. We recommend that the flexible price support system allowing the 

 Secretary to set support prices from 60 to 90 percent of parity be 

 retained. 



2. We recommend that any price support be contingent upon com- 

 pliance with acreage goals and also marketing agreements wherever 

 feasible. We believe marketing agreements will provide for the con- 

 sumer the better grades of potatoes. 



3. We recommend that, if practical, a program to make possible 

 the use of compensatory payments or production payments be de- 

 veloped and made available to the Department for use if necessary to 

 enforce compliance with production programs. 



