938 GENERAL FARM PROGRAM 



in the Upper Peninsula of Michigan. I am a partner in the firm of 

 Richards Bros., growers of certified seed and table-stock potatoes. 



I am here in the general interest of the potato growers of the 

 Manistique area. Thirty-four growers of that area, including myself^ 

 met together because of concern as to the support-price program and 

 developed the statement which I am presenting to this committee. 

 The growers contributed to my expenses for this purpose. I am 

 attaching a list of the growers on whose behalf this statement is made. 

 The decision to have a representative at this committee meeting was 

 made at the second group meeting of the potato growers called at 

 Manistique courthouse to discuss the flaws in the present potato 

 program and to suggest ways of improvement. These producers 

 would grow about 30 acres per year average each. 



The conclusions drawn at these meetings were that the support 

 program definitely has served a useful purpose and been of tremendous 

 assistance during the war and since. It has enabled the grower to 

 produce at capacity levels without the extra hazards of complete 

 market chaos. It has permitted the financing of the growers to be 

 done through normal channels, and has assured the consumers of an 

 ample supply of potatoes at still reasonable prices. 



The support program was far from perfect. Destruction of potatoes 

 by freezing, unnecessary freight, and expense of delivering potatoes 

 long distances to institutions in other potato areas, diversions of 

 high-quality table stock into cow feed while consumers were forced 

 to accept low-quality stock were among the more widely publicized 

 criticisms. 



Under the old program supported at 90 percent of parity, costs of 

 production were on the average well protected, but the following 

 difficulties were experienced: Some States and areas were allowed 

 to ship over half their crop while other areas were unable to secure 

 any reasonable quota until late in the season. Potatoes for livestock 

 feed should be made available immediately after harvest and through 

 the winter. Farmers should have the choice of grading and loading 

 cars to earn nearer the full support price. Some dealers have insisted 

 on doing the grading, havding, and loading. In some cases, the grower 

 has loaded potatoes on cars, but the dealer still retained the loading 

 charge. Some of the effect of a support program was nullified by the 

 shipment of Canadian seed and table-stock potatoes into this country. 



We believe that any support program to be truly successful must 

 remove from the total crop an amount equal to the annual surplus 

 and to withhold it completely from the normal channels of consump- 

 tion. If that part of the crop that is purchased by the Government is 

 effectively barred from being diverted back into any consumer's 

 channel, the remainder will still provide for the normal needs of the 

 public, and the market should function as though a normal crop were 

 harvested. However, if the Government continues its present pro- 

 gram of purchasing surplus potatoes and supplying those potatoes to 

 institutions and consumers who would otherwise buy on the regular 

 market, many unnecessary millions of dollars will continue to be 

 charged to the support program that should rightfully be charged to 

 the expense accounts of these charitable, educational, or other insti- 

 tutions. 



