1156 GENERAL FARM PROGRAM 



Mr. HoEVEN. Once these prices on hogs are do^vn and prices on 

 corn are down, how are you ever going to get those prices back under 

 your plan? 



Secretary Brannan. If the supphes begin to shorten up they will 

 go back. 



Mr. HoEVEN. But as long as you are permitting hogs to be sold in 

 the market place at a low price level, corn will go down also. I can- 

 not understand how as long as your program is in force and effect the 

 prices will ever go up. 



Secretary Brannan. They will come up seasonally when hogs are 

 short in the market place. It is my firm belief that we would not be 

 in the market at all times throughout the year supporting the price of 

 hogs in any event. If the supplies in the market place are short, the 

 price is going back up, no matter what other factors are. They always 

 have before. 



Mr. HoEVEN. But under your proposed plan would not the price of 

 these basic commodities always be regulated at what they will bring in 

 the market place? 



Secretary Brannan. Certainly. 



Mr. HoEVEN. Wliy should there be any fluctuation, then? 



Secretary Brannan. Mr. Hoeven, that is what is happening now. 

 The support mechanisms are not affecting the price of any meat com- 

 modities in the market place today. The price of hogs is not at $22 

 because of a support price nor was it at $30 a short time ago because of 

 that. 



Mr. HoEVEN. The minute your ]jroduction payment plan goes into 

 force and effect the price of hogs will go down and they will no longer 

 be $22. 



Secretary Brannan. I do not agree. I think if you were to change 

 that as of this minute, the price in the market place for hogs would not 

 be affected 1 cent. It would still be $22. Why? Because the supply 

 of hogs coming into the market is small in relation to the demand. 



Mr. Hoeven. I hope you are correct in your assumption, but I feel 

 it is going to be otherwise. 



Secretary Brannan. Mr. Hoeven, I do not see how it can have any 

 impact on it at all. 



Mr. Pace. Mr. Sutton. 



Mr. Sutton. Mr. Secretary, if the test run on production payments 

 were limited to two commodities, which two would you prefer? 



Secretary Brannan. I would say to you very frankly that the 

 greatest trouble for us is in potatoes. Nevertheless, I say to you that 

 the most trouble for the price-support theory and philosophy also lies 

 in potatoes, so I think we have to make a forthright approach to the 

 potato problem. Much as I dislike all the trouble that I see is going 

 to come to us, I think that is one that we probably ought to take on. 



The second one, which will be most vexatious if we are called upon 

 to support them, is hogs. The support-price problem in connection 

 with hogs is just a plain practical matter. I do not think it is feasible 

 to support the price of hogs by withdrawing them from the market 

 and sticking them in storage. I do not think it will work and I think 

 the American people will be quite angry about it. 



Mr. Sutton. Had you rather have dairy products than hogs? 



Secretary Brannan. No. You see, we have been able to operate 

 reasonably successfully so far in the daiiy field because we have gone 



