1096 



GENERAL FARM PROGRAM 



very largely, if not entirely, eliminate the possibility of surpluses 

 occurring in the production of these crops. 



In the sixth year, at an annual cost not to exceed $200,000,000 per 

 year, 10 percent of the present corn acreage, 25 percent of the present 

 wheat acreage, and 40 percent of the present cotton acreage could be 

 retired to grass or trees which would undoubtedly eliminate any 

 fm-ther possibility of temporary siu-pluses occurring in the production 

 of these crops. I should like to insert in the record a simple tabulation 

 indicating what an annual Federal payment of $200,000,000 could do 

 under the terms of H. R. 2368. 



Mr. Pace. It may be inserted in the record at this point in, your 

 statement. 



(The statement above referred to is as follows:) 



Acreage of grain and cropland that could he converted to grass or trees with a govern- 

 mental -payment of $200,000,000 per annum as provided in H. R. 2S68 



Total cost 



First year... 

 Second year. 



Do 



Third year.. 



Do 



Fourth year 



Do 



Fifth year.,. 



Do 



SLxth year. . 



Do 



$200, 000, 000 

 200, 000, 000 



200, 000, 000 



200, 000, 000 



200, 000, 000 



200, 000. 000 



Mr. Jensen. Thank you, Mr. Chairman. It shows that 47,670,- 

 000 acres of land now in soil-depleting crops could be converted to 

 soil-conserving crops; also, as I pointed out, it would eliminate 

 this trend in a surplus which is bringing about a condition and a 

 threat of acreage allotments. 



The retirement of grain and row crop acreage under this provision 

 of my bill is assumed to be at the rate if $20 per acre. That is, an 

 acre of cropland could be retired to trees for an average of considerably 

 less than $20 per acre. Similarlj^, an acre of cropland could be retired 

 to grass, where no lime and fertilizer were needed, at somewhat less 

 than $20, but if the farmer needed lime or fertilizer in order to en- 

 courage good grass pasture or range, it would take somewhat more 

 than $20 per acre to obtain it, so an average of $20 is assumed. 



Historically, reduction of crop acreage has not necessarily reduced 

 production of the crop except temporarily. That is, the record shows 

 that the attempts in the thirties to reduce the acreage of wheat, corn, 

 and tobacco did not reduce total production. There was some re- 

 duction in cotton production as a result of acreage allotments. The 

 reason for little or no reduction in production through crop acreage 

 allotments is that land is only one of the resources of production at the 

 farmers' command. In earlier attempts the farmer used more labor, 

 fertilizer, and other resources on the land he had in crops and thereby 

 produced greater yields per acre. My recommendations in H. R. 

 2368 would give the farmer the opportunity of using these extra re- 

 sources, including his labor, to produce grass or trees, enhance his 



