1054 GENERAL FARM PROGRAM 



our industry. Only once in 1948, that is the only year, that was in 

 the year 1948, did the tung irdustry have to avail itself of the support 

 price ofl'ered by the Commodity Credit Corporation. In other years 

 the market price was well above the support level set up by the Com- 

 modity Credit Corporation. During the yenr 1948, when tung oil 

 was tendered, the cost to the CCC was only about $327, OOC, and I 

 thmk Mr. Fritchard will confirm that, that is the price that I think he 

 gave in the Senate hearing last Friday. 1 believe this is a very minor 

 expenditure for the protection of investments amoimting to millions 

 of dollars. Th'^se investments, in many cases, represent life savings 

 of many people, and also represent the means of employment to 

 approximately 20,000 people. This employment is diversified in 

 scope. Another topic of conversation that we hear, that the United 

 States wants to diversify its industry with farming, and this employ- 

 ment is diversified by extending from the farm tb.rough the mill where 

 the oil is produced, and then the same oil is used in a wide variety of 

 manufactured projects throughout the United States. 



VVe have no criticism of the Government's support program for 

 flax and linseed oil, tung oil's greatest competitors, but would like to 

 point out that in the last 2 vears the Government has purchased 

 20,500,000 bushels of flax at a' cost of $123,000,000, and 250,000,000 

 pounds of linseed oil at a cost of $55,350,000. \Ve submit the support 

 figure for tung of only $327,000 is negligible in comparison with this 

 other figure. V^'C feel that we are fairly entitled to equal considera- 

 tion, and I believe this same thought was expressed by Senator 

 Holland this morning. We would like to state that tung oil is the 

 only domestici.'Dy produced drying oil that does not enjoy support price, 

 and it is also oii the free list, while other dryiug oils have an import 

 tarifi" protection. We just seem to have been left out here. 



Since the middle of 1948, when the CCC support price expired, the 

 price of tung oil has spiralled downward, while production (iosts have 

 continued a steady climb upward. Unless support is given to the 

 industry, much of the acreage now planted will rapidly go out of 

 existence, and subsequently all groves will liave to be abandoned. We 

 submit herewith in our brief exhibits A and B showing actual produc- 

 tion costs as the}^ pertain to the industry today. 



To summarize l)riefly. it is noted that the present marlvet price 

 of tung oil is approximately 19 cents per pound f. o. b. southern 

 mills. This price reflects to the grower a $45.(:i4 per ton for nuts after 

 milling charges. This price shows a loss of $11.79 per ton to the 

 grower, as shovv^i in detail in exhibits A and B. T would liivo to state 

 that in these two (exhibits we have broken down what actually happens 

 in the field by the grower. 



If you willbear with me a few minutes longer, 1 ^^ili read thisrfrom 

 actual case studies made in the field. 



It is revealed that a figure of .$37.79 per acre is very clo.se to the actual cost 

 of maintaining a tung orchard. 



And— 



A figure of $19.64 per ton would represent very closely the cost of harvesting tung 

 nuts today. 



And to that must be added the milling cost of $12.50. You can 

 readily see by adding these tigures, and subtracting the cost that 

 the grower gets, that he sufl'ers a loss of $11.79 per ton. 



