988 GENERAL FARM PROGRAM 



Mr. Andresen. You would reduce the support price after March 1? 



Mr. Richards. We would reduce the support price on the No. 1 

 grade after March 1. It would include the No. 1 up until that time 

 but it would increase it slightly then on the balance of the crop. 



Mr. Andresen. Would you not have a complaint then from the 

 potato producers in Florida on new potatoes? 



Mr. Richards. I am spealdng of the late crop. 



Air. Andresen. They are coming in with their potatoes in January 

 and February. 



Mr. Richards. We were not considering that, we were considering 

 our late crop. The early support program, however, has usually been 

 different than that for the late crop. 



Mr. Granger. On that question, does the potato program work 

 equitably between the grower of nonstorable potatoes in comparison 

 with the fellow who stores potatoes, such as russets? 



Mr. Richards. There is a difference there. 



Mr. Granger. Do you have a difference now in the program? 



Mr. Richards. I do not laiow if there will be this year, whether the 

 early potatoes are supported at a different level than late potatoes 

 but they were last year. The early ones were supported nt different 

 prices, slightly decreasing. Then our potato program starting on the 

 1st of September was less than the earlier support price. 



Mr. Granger. Was it not the earlier potatoes that got us into all 

 the difficulty? 



Mr. Richards. They marketed a much larger portion than they did 

 of the later ones. 



Mr. Granger. They are not storable at all. 



Mr. Richards. I believe that is true. I am not so familiar with the 

 earlier producers. Throughout this whole meeting 1 think oar idea 

 has been that as the program would develop eventually the producers 

 by a complete national organization would be able to police the pro- 

 gram themselves, but until such time as that would be perfected we 

 have been pretty much satisfied, as 1 stated this morning, aside from 

 the imperfections of it. 



We believe that this Hope-Aiken Act that will be in effect comes the 

 closest to having the effect of simply withdrawing the surplus down 

 to the size of the normal crop and doing it with the least possible 

 expense because of the low support price. If that docs not prove 

 completely effective, we believe that increasing the support on the 

 No. 1 grade later in the season wdl com.pensate for any unfairness to 

 the produce}' of the better grades. 



Mr. CooLEY. You realize, of course, that payments cannot be made 

 to producers unless Congress provides the funds. 



Mr. Richards. T understand that. 



Mr. CooLEY. The Secretary has stated to us that there is some 

 question as to whether or not he has the authorily under the 1948 act 

 to make the compensatory payments that we have been talking about. 

 The Department is not very clear as to what the intention of the act 

 was. 



Mr. Richards. We believe that the funds necessary under this 

 type of plan will be far less than they were this year. 



Mr. CooLEY. You mean it would take less money to make the 

 compensatory payments? 



