GENERAL FARM PROGRAM 



Table 2. — Potatoes: Goal acres and planted acres, 1943-48 

 [1,000 acres] 



991 



As you will note from table No. 2, the potato-planted acreage in each of the last 

 5 years, 1944 through 1948, has not even equaled the national acreage recom- 

 mended by the Department of Agriculture. 



This means that potato growers, as a whole, have taken a double cut in their 

 potato acreage in each of the 5 years, 1944-48. They have taken one reduction 

 through compliance with the Department's acreage-goal program, and a second 

 voluntary reduction by underplanting, as a group, the total acreage that was 

 actually allotted them. 



For example, in 1947 the potato acreage goal was 2,517,000 acres, a reduction of 

 9 percent under the 1946 goal. Potato growers not only complied with the 

 Department's reduction of 9 percent, but, of their own accord, underplanted their 

 allotted acreage a further 15 percent. A similar example could be made for 1945 

 1946, and 1948. 



As has been pointed out, these decreases in acreage took place in spite of the 

 90 percent of parity price-support program which was designed specifically to 

 encouragq food productionduring the emergency years. 



However, increased per acre yields, plus the falling off in consumption, brought 

 about a situation where farmers were producing a surplus of potatoes on far 

 fewer acres. 



Growers themselves were prompt to recognize this situation and, in May 1948, 

 recommended that changes be made in the potato price-support program. 



Following these recommendations from the National Potato Council, the Secre- 

 tary of Agriculture reduced the rate of the support price for potatoes from 90 to 

 60 percent of parity, and potato producers have accepted and are supporting this 

 very sharp reduction in the support price. 



The 60-percent price-support program became effective on the 1949 crop, which 

 is now in various stages of production, depending upon seasonal activities in the 

 early, intermediate, and late potato-growing areas. 



The 60 percent price-support program is now on trial, and there is every indi- 

 cation that it will serve more as an "insurance" against price disaster than as an 

 inducement for overproduction of potatoes. 



So far as 1949 potato acreage is concerned, the 60 percent price-support program 

 will apply to the lowest potato acreage in 70 years. The Crop Reporting Board of 

 the Department of Agriculture has estimated the 1949 acreage at 1,980,000 acres, 

 a decrease of 7 percent from the 1948 planted acreage. 



Consequently, the National Potato Council believes that reduction of the price 

 support from 90 to 60 percent of parity has automatically removed the important 

 factor which has contributed most to a surplus of potatoes — an unusually favorable 

 price support. 



A support level at only 60 percent of parity, in most States, lowers the price of 

 potatoes under support approximately one-third. Noncomplying growers should 

 have little interest in taking the risk of growing a costly crop like potatoes with 

 such a low support. 



The Council would like to point out that in only three of the years since 1930, 

 have potatoes been below 60 percent of parity (see table No. 3), and these 3 years, 

 with other low-priced years, were disastrous to potato farmers. 



91215 — 49 — ser. u, pt. 5- 



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