1152 GENERAL FARM PROGRAM 



Mr. Pace. I would like to dispose of Irish potatoes with the state- 

 ment that the Irish-potato producers of the United States, through 

 their representatives, met with me some days ago and they have since 

 sent copies to all members of the committee of their statement that if 

 the 60-percent support price this year does not reduce the production 

 within reasonable limits they will themselves come to this committee 

 next year and recommend controls. That is a matter of record, and 

 they have suggestions which the committee will consider in the next 

 few days. They say that, if the support of 60 percent does not make 

 the reduction, they will recommend controls. 



Now, gentlemen, we will take up hogs. Mr. Secretary, as briefly 

 as you can, give us the situation with regard to the supply of hogs 

 this year as compared to last year. 



Secretary Brannan. Mr. Chairman, I would like to have Mr. 

 Preston Richards answer that for us, if I may. 



Mr. Richards. I am Preston Richards, Assistant Director of the 

 Livestock Branch. 



Mr. Pace. All right, Mr. Richards, be as brief as you can, please. 



Mr. Richards. Wc had a hog and pig crop last year 8 percent larger 

 than the previous year. Those hogs are coming to market this 

 spring and summer. The estimate for the 1949 spring pig crop will 

 not be available for a couple of weeks, but there are many indications 

 that it may be 15 to 20 percent larger than that of the previous year. 

 Those ho^s will be coming to market beginning perhaps in August or 

 September, with the bulk of them coming in the period from October 

 through next April. 



Mr. Pace. So you really do not know yet what repercussion on 

 the market this increased production will have, and you will not know 

 until October? 



Mr. Richards. No, sir, except that we had a very sharp decline 

 in the market beginning last August. The price dropped from about 

 30 cents down to 18 cents within a period of less than 6 months. It 

 has since recovered some, but the price in Chicago last week was 

 around 22 cents. 



Mr. Pace. Mr. Secretary, you have already announced the support 

 price of hogs this year. 



Secretary Brannan. That is right, $16.50. 



Mr. Pace. On a graduated scale, changing in the season, I believe. 



Secretary Brannan. That is right. 



Mr. Pace. Would you care to make an estimate for the committee, 

 if you must proceed under your present authority to carry out that 

 mandate of Congress, as to what you estimate the cost will be? 



Secretary Brannan. Mr. Chairman, may I again refer to the esti- 

 mate we made in my supplemental statement to the committee? On 

 that occasion we assumed that we would have to take about a billion 

 pounds of pork out of the market place to maintain the price at the 

 support level. 



Mr. Pace. A billion pounds of pork at the support level is how 

 much monev? 



Secretary Brannan. It would be $165,000,000. 



Mi*. Pace. That would be through the purchase and storage of the 

 pork. 



Secretary Brannan. That would be purchase only. That was an 

 assumed purchase as though we had bought the hog on the hoof 

 from the farmer at his gate. 



