GENERAL FARM PROGRAM 1143 



Mr. A.NDKESEN. And you pay on the basis of 40 cents for the 

 low grade? 



Secretary Brannan. Yes. 



Mr. Andresen. So that is the rock-bottom price for all grades, is 

 that right? 



Secretary Brannan. No; you have a differential in your purchase 

 price for the differential in quality or the form in which the wool is 

 being offered to you. 



Air. Andresen. Is 40 cents the top for the top grade of wool? 



Secretary Brannan. No; that is the average ai*ea. 



Mr. Andresen. So some may be higher and some may be lower? 



Secretary Brannan. That is right. 



Mr. Andresen. Can you give us an average price of all American 

 wool as of this present time so that we can figure out how much the 

 market is at the present time? 



Secretary Brannan. Fifty and sLx-tenths I am told at average price. 



Mr. Andresen. When you handle wool that is entirely under the 

 purchase program and not under the loan program, is it not? 



Secretary Brannan. Yes. 



Mr. Andresen. Under the support program you will abandon the 

 pm-chase program and you will pay the producers, I understand it, 

 the difference between the market price they get for their wool in the 

 supply and demand market and the support standard, which would be 

 90 percent of parity under the present law, or 40 cents. That wiU go 

 directly to the producer, is that correct? 



Secretary Brannan. That is right. 



Air. Andresen. Then you would discontinue the purchase program. 

 That is also correct, is it not? 



Secretary Brannan. No; we would not entirely discontinue the 

 purchase program. I think we would like to retain the authority for 

 this and some other crops, but for the most part it would be discon- 

 tinued. I do not want the record to show that we would like to give 

 up the power to make some purchases in some commodities when 

 that is the more efficient and simple way of doing it. 



Mr. Andresen. I want to get at just how you would carry this out 

 because it is proposed that it be included now as a part of the experi- 

 mental program. If you are going to deal onlj^ with producers, who 

 do you classify as producers, the farmers who raise the sheep? 



Secretary Brannan. I do not get the distinction. 



Mr. Andresen. Who would be the producer of wool? 



Secretary Brannan. The man who owns and shears the sheep. 



Air. Andresen. He would get the support payment? 



Secretary Brannan. That is right. 



Air. Andresen. Would you pay that to him directly? 



Secretary Brannan. Yes, sir. 



Air. Andresen. Alost of the producers of wool sell theu' wool 

 through cooperatives or other business concerns. It might be the 

 packers. There would be no need for the cooperatives, then, if you 

 would deal directly with the farmer. 



Secretary Brannan. Certainly there would. We can deal with 

 farmers thi'ough their cooperatives. Production payments do not 

 mean the end of cooperatives in any sense of the word. 



91215 — 49 — ser. v, pt. 6- 



