1036 . GENERAL FARM PROGRAM 



Mr. Hope. 1 would like to ask you tho same question that 1 asked 

 Mr. Rowlands, whether it is your thought that we should embark 

 upon a program here of encoiu-aging an industry to expand. 



I asked that ouestion because apparently we arc going to be faced 

 with imports no matter what we do. 



I think you have made out a good case for maintaining the industry 

 in its present state of development, or practically so. but I am wonder- 

 ing just how far you would justify a policv Qf price support that might 

 result in exponding the inchistry, when it comes to curbing imports, 

 and we have no tariff policy that would take care of it, n.s in section 22 

 of the Agricalturnl Adjustment Act, where we can only operate m 

 the event it does interfere with reciprocal-trade agreements. 



So it see'tns to me that we are up against a pretty difficult problem, 

 imlpss it can be handled something like the Sugar Act, where we put on 

 quotas on imports and put quotas on domestic production. 



Senator Holland. Congressman, the situation is, as you pointed 

 out, a difhcult situation. It has the same aspects as we found m 

 trying to cope vv'ith the problem, and the problem we have been 

 struggling with in Florida with citrus. 1 know the citrus-producing 

 area is trying to fmd some reasonable basis for giving greater security 

 to the citrus producers. 



Of coui'se they do not have — and wy State doe-^ have a gieat c'eal 

 of interest in tung oil — but the producers do not have in their problem 

 the factors that hav? been mentioned here in relation to tung oil; 

 that is, the security of the country. Yet T know, by wny of restriction 

 or limiting of im^ports or some such method, it must be coupled with a 

 limitatiori on additional planting. 



So what the ans^ver mav be^ — I think it has to be completely reolistic. 

 It has to be based upon the knowledge of the fact that tung trees 

 planted this year will come in commercially, I understand, about 

 cS years latei% that it is a long-time crop, and ] would not want to do 

 anything that would contribute to overproduction in the domes- 

 tic field. 



It is not impossible of solution, in my judgment. I think we must 

 find some way for treating this crop, and particularly where it is of so 

 much importance in our strategic-materials program. That is not 

 the case with citrus as is true with tung oil. And we must find some 

 way that will result in greater security for the tree crops, some way 

 that will give greater security to an agricultural industry, domestic 

 industry, which is based upon tree-crop production. 



Mr. Hope. I am very sympathetic to your problem, and I am also 

 convinced that, from the standpoint of establishing methods, we have 

 the question of where it is going to lead us. It is a big question to 

 work out. 



Senator Holland. It is not an easy problem, as you say, Mr. Hope, 

 but we hope we can give it some intelligent treatment in our com- 

 mittee, as I am sure it is receiving here. 



Mr. PoAGE. Senator, has your committee given consideration to 

 the possible help that may come from the use of section 22? 



Senator Holland. We have made no decision as yet, Mr. Chairman. 

 We are in the process of hearings in which this has been presented, but 

 we are not ready to announce any conclusion. We are trying to get a 

 better grasp of it, so far as the different members are concerned ; that is, 



